Organizational Behaviour: Petronas

Running head: ORGANIZATIONAL BEHAVIOUR
Organizational Behaviour: Petronas
Name of the Student
Name of the University
Author’s Note:

1
ORGANIZATIONAL BEHAVIOUR
Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................2
2.1 Brief Description of the Case Scenario of Petronas.........................................................2
2.2 Issue Faced by Petronas...................................................................................................3
2.3 Concepts, Models and Theories of Organizational Behaviour relevant for the Issue......4
3. Conclusion..............................................................................................................................7
4. Recommendations for Petronas..............................................................................................8
References................................................................................................................................10

2
ORGANIZATIONAL BEHAVIOUR
1. Introduction
OB or organizational behaviour refers to the proper understanding of human
behaviour in specific corporate settings, interface within the organization and human
behaviour. It is required to evaluate the activity and performance of individuals and helps in
the determination of its effect over job structure, communication, leadership, achievements
and motivation (Noe et al. 2017). OB is responsible for initiating a significant procedure to
recruit, select and induct employees in a company so that better effectiveness is gained. It is
essential and vital to provide benefits and motivate the employees by maintaining subsequent
relations with the staff (Mondy and Martocchio 2016). This following report outlines a brief
discussion on the issue of recruitment policies, faced by Petronas with proper concepts,
models and theories of OB and suitable recommendations for the problem.
2. Discussion
2.1 Brief Description of the Case Scenario of Petronas
Petronas or Petroliam Nasional Berhad is a significant ONG organization in Malaysia,
which was found in the year of 1974. The Malaysian government entirely owns it, and the
corporation is vested with different resources. It is also delegated with the significant duty of
development and adding of different values to the resource (Petronas Global. 2019). The
organization has grown to be an integrated international ONGC that has been doing business
in thirty-five countries throughout the world. The major products of Petronas include
petrochemicals, natural gases and petroleum and the services include shipping services and
filling station.
More than 48000 employees are working in this famous oil and gas company, and
they had been doing business successfully for several years. The entire group is eventually
engaged in a broad spectrum of different petroleum activity like oil production, gas

3
ORGANIZATIONAL BEHAVIOUR
processing, downstream oil refining and many more. Apart from the customers, the
employees are also satisfied with their jobs (Petronas Global. 2019). However, recently they
have faced an issue related to recruitment and selection policy, and as a result, few HRM
issues are being faced by them. These human resource management issues are needed to be
eradicated on time, so that employee satisfaction is prevailed eventually and without any type
of problem or complexity.
2.2 Issue Faced by Petronas
The organization of Petronas has been doing business for more than 45 years and have
tried to ensure that they can provide maximum productivity and satisfaction to both
customers and employees. Due to this poor recruitment and selection policy, they had to
terminate almost 1000 employees from their organization. As a result, significant issues
related to people management and employee dissatisfaction was observed in the company
(Petronas set to terminate 1000 jobs. 2016). Management of employees is referred to as one
of the most vital and significant requirements in an organization. It is needed to ensure that
the respective organizational employees are highly motivated and encouraged effectively, and
hence better productivity is gained without much complexity.
The organizational approach towards employee management was not appropriate, and
it created a significant issue for Petronas to achieve business efficiency, sustainability and
resilience in the challenging time for this oil and gas industry. It was needed to implement a
new strategic approach for understanding the operating model of the business and maintain
deliberate and sequential measures towards better navigation of the company via major
external environments (Petronas set to terminate 1000 jobs. 2016). The main reason for such
issue was that Petronas had recorded a revenue of RM248 billion in the year of 2016, which
was around 25% decline as compared to the similar period in the year of 2014. Several
employees were terminated as they were unable to provide products as per expectation, and