Human Resource Management in Oil and Gas Companies

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of Student
Name of University
Author Note

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Executive Summary
For the purpose of the report, Inpex has been considered. Inpex is an Oil and Gas Company
established in Japan, and is currently one of the leading Oil and Gas companies in Australia.
The report is based on an employer of choice strategy and the effective and strategic talent
management framework that can help in the development of the company. The report
investigates Inpex’s diversity strategies and why they are not delivering the number of new
hires required. Additionally, the method of attracting, retaining and developing the skills of
employees is explored so that they can provide able support for the success of the
organisation. Analysis is done by the application of various theories such as integrated talent
management framework, Maslow’s hierarchy of needs, and balanced scorecard. The data
collection is done by using secondary research by analysing scholarly articles of different
authors, various textbooks, journals as well as websites so that effective literature on
employer of choice and talent management can be obtained along with details about the
application of theories in the organisation. The application of SWOT, PESTEL, and
Benchmarking analysis aids in identifying the capabilities and threats of Inpex. At the same
time, gaps are identified in relation to the analysis of the threats posed by their competitors
and how Inpex can effectively be the employer of choice.

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Table of Contents
1. Introduction............................................................................................................................3
1.1 Thesis statement...............................................................................................................3
1.2 Background.......................................................................................................................3
2. Literature Review...................................................................................................................4
2.1 Integrated talent management framework........................................................................4
2.2 Employer of choice strategy.............................................................................................6
2.3 Maslow's hierarchy of needs............................................................................................7
Balanced Scorecard................................................................................................................8
3. Research Methodology.........................................................................................................10
3.1 Research Method............................................................................................................10
3.2 Data Collection...............................................................................................................11
4. Data analysis and presentation of findings...........................................................................12
4.1 SWOT analysis...............................................................................................................12
4.2 PESTEL..........................................................................................................................14
4.3 Benchmarking.................................................................................................................16
5. Implications and Recommendations....................................................................................17
Reference..................................................................................................................................20

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1. Introduction
In the modern world, demand of global oil and natural energy provides for
requirement of talented candidates to be a part of the sector. The shortage of skilled personnel
concerning the increasing demand in the oil market has led companies like Inpex to develop
new strategies and human resource management methods to attract and recruit new talents to
the industry. The diversity and inclusion policy is one such innovative idea that has led the
company to attract people from diverse cultural and social backgrounds. Moreover, this has
led to the sharing of ideas and talents, which has not only satisfied the company’s demands of
talented individuals but also has led to the development of the company’s growth owing to
the rising demand of the oil and energy market.
1.1 Thesis statement
The increase in oil and gas companies in the modern world has provided opportunities
for young talented candidates to get employment opportunities. Therefore, it is necessary that
an analysis of the largest natural energy company in Australia be made to understand the
importance that this sector have played in providing employment to the people of the country.
The report takes into account the positive aspect of this particular rise of the sector.
1.2 Background
Inpex Corporation is currently one of the largest natural energy companies in
Australia. A strong human resource infrastructure is required for the maintenance of such a
large organisation. The company’s human resource policy gives importance to the diversity
of the workforce and inclusion of global employees (inpex.com.au, 2018). They believe that
that this type of human resource idea helps in the sharing of resources among talented
individuals with expertise in the oil and natural gas sector. This can enrich the system of the
organisation which can lead to employee satisfaction and ultimately the development of the

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company. The Inpex HR Vision is a structure that the organisation follows for its internal
employee growth and development (inpex.co.jp, 2018). Inpex Corporation was initially
established in Japan, in February 1966. The company was founded as the North Sumatra
Offshore Petroleum Exploration Company Limited before being renamed so that it can get a
more international stature. The company was listed in the Tokyo Stock Exchange on
November 17, 2004 (inpex.co.jp, 2018). The company provides natural gas and oil to the
people in need of it. The company owns 53.96% stake and has a share of 343, 725 shares.
The company was considered as the second subsidiary to receive public stature in Japan
(inpex.co.jp, 2018). As of 2011, the company has about 2146 number of employees with 784
of the workers on temporary payroll of the company. Ever since its inception in 1966, the
company has been among the top class companies operating in Japan and have extended its
shore beyond the country to international waters such as Australia. As of March of this year,
the company has been reported to have 1030 members with labour management council and
regular meetings being held within the premises (inpex.co.jp, 2018).
2. Literature Review
2.1 Integrated talent management framework
Integrated talent management is a new concept that is developed for recruiting,
training, selecting and developing talents in the organisations. According to Hollenbeck, Noe
and Gerhart (2018), the development of the framework have provided every organisation
with an opportunity to recruit the best talents in the market. The approach towards
recruitment, development and performance management of an employee along with the
learning can help an organisation to succeed in the competitive market and ensure that the
goal of the human resource management is attained (Brewster, Mayrhofer and Morley 2016).

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As stated by Armstrong and Taylor (2014) the goal of the managers in an organisation is to
ensure that human resource functions operate in a proper manner with efficiency.
For a company like Inpex, it is necessary to create an integrated system so that people
can be managed in an efficient manner. As supported by Bratton and Gold (2017)
organisations rapidly and effectively respond to the business needs. In this regard, an
example can be considered so that the talent management framework can work in an effective
manner. Bailey et al. (2018) stated that in order to apply the integrated framework it is
necessary that processes and systems be kept in place so that key leaders and functions of the
organisation can be analysed and undertaken. The main advantage of the framework and its
application in Inpex is the fact that it is helpful in recruiting people particularly during the
expansion of the company. Therefore, it can be said that integrated talent management
framework helps in not only create a local business organisation but also help it to expand in
the international market.
Inpex can explore the interconnectedness between the factors that affect talent
management and the manner in which it can be used to plan for the future of an organisation
makes the framework one of the best in business application. In the case of Inpex, the
organisation can implement the framework so that it can expand its market oversees and at
the same time ensure that proper precautions are taken while recruiting talent and managing it
so that it can help in the development of the future.