Human Resource Strategies for Inpex: Attracting and Retaining Talent

This report provides a comprehensive analysis of Inpex Corporation's Human Resource Management (HRM) strategies, focusing on its approach to becoming an employer of choice and effectively managing talent. The report begins with an executive summary outlining the scope and objectives, which include examining Inpex's diversity strategies, talent acquisition, retention, and development. It then delves into a literature review, exploring key concepts such as the integrated talent management framework, employer of choice strategies, Maslow's hierarchy of needs, and the balanced scorecard. The research methodology, including research philosophy, design, and approach, is detailed. The analysis utilizes SWOT, PESTEL, and benchmarking to identify Inpex's capabilities, threats, and competitive positioning. Finally, the report offers implications and recommendations for Inpex to enhance its HRM practices, attract top talent, and achieve its organizational goals. The report emphasizes the importance of strategic HRM in the context of the oil and gas industry, highlighting the need for innovative approaches to talent management and employee satisfaction.

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

1
HUMAN RESOURCE MANAGEMENT
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.

2
HUMAN RESOURCE MANAGEMENT
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

3
HUMAN RESOURCE MANAGEMENT
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

4
HUMAN RESOURCE MANAGEMENT
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).

5
HUMAN RESOURCE MANAGEMENT
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.

6
HUMAN RESOURCE MANAGEMENT
Figure 1: Integrated talent management
(Source: Reiche et al. 2016)
2.2 Employer of choice strategy
Banfield, Kay and Royles (2018) observed that the employer of choice strategy could
be used to attract the best candidates that are suitable for the particular job. In the case of
Inpex the strategy may be difficult as it needs to convince candidates by outcompeting its
rivals. Therefore, the strategy to attract the candidates needs to be based on the type of
motivation that is provided by the managers (Kramar 2014).
Brewster et al. (2016) is of the opinion that social responsibility along with the urge to
complete work can be accounted for a proper employee in an organisation. Therefore, it is
necessary that Inpex provide sufficient training and development to the employees so that it
can maintain its dominance in the business. As stated by Tyson (2014) this particular strategy
helps in the development of the full potential of an individual. The full potential of an
individual is realised and the potential is embraced in an efficient manner.

7
HUMAN RESOURCE MANAGEMENT
2.3 Maslow's hierarchy of needs
Maslow’s hierarchy of needs understands the psychological demands of a person so
that they can mitigate their curiosity and ensure that development of a person takes place in
an organisation. According to Albrecht et al. (2015), the implication of Maslow’s hierarchy
needs provides employees with an opportunity to remain motivated in the business and at the
same time ensure that the employees provide their best so that they can contribute towards
the organisation success. The stages of growth of human beings are described by Maslow and
based on the stages of the employees working in an organisation can develop (Sparrow and
Makram 2015).
As stated by Storey (2014) the first couple of steps satisfy the basic needs of the
employees. The psychological needs are the basic needs that imply the necessity of food,
clothing and shelter. In the case of Inpex without providing a proper and stable job, it can be
difficult for the company to retain an employee. Therefore, it can be said that the basic
amenities of life are provided by fulfilling the psychological needs of the people. As observed
by Jackson, Schuler and Jiang (2014) it can be difficult for the people to progress to other
stages in the hierarchy.

8
HUMAN RESOURCE MANAGEMENT
Figure 2: Maslow’s need hierarchy
(Source: Nel et al. 2014)
Balanced Scorecard
As stated by Shields et al. (2015) balanced scorecard is considered as a performance
management tool that is presented in the form of a semi-structured report. Managers use it
effectively so that they can maintain a track of the employees for conducting activities and
controlling them. It can be used said that the consequences arising from this particular
management technique can help in the development of an organisation as well as the
employees involved in the performance management (Bolman and Deal 2017). The
management team takes control of the performance management report and ensures that
employees reach their full potential while working.
As observed by Newell and Scarbrough (2017) the team on which management
focuses the implementation of the balanced scorecard includes efficient teams that help in the
management of critical operations in business. In the case of Inpex, the balanced scorecard is

9
HUMAN RESOURCE MANAGEMENT
considered as a strategic planning as well as management system that helps in maintaining
certain functions in an organisation. For example, communication on the aspects that needs to
be accomplished is presented by the application of balanced scorecard. As stated by Cooke,
Saini and Wang (2014) it is important to align the daily work of the employees with the
strategies that has been developed by the organisations.
The four aspects of the balanced scorecard such as customers, finances, internal
process as well as organisational capacity are analysed with this process (Deery and Jago
2015). For Inpex the cost of lowering the materials for supply as well as increasing the
profitability of the organisation can be determined by the application of the framework. At
the same time, organisational capacity needs to be developed so that skills and knowledge of
the employees can be developed. The organisational capacity is directly related to the
financial capacity of Inpex. In the process, steps such as internal process and satisfaction of
the customers are included.
.
Figure 3: Balanced scorecard

10
HUMAN RESOURCE MANAGEMENT
(Source: Collings, Scullion and Vaiman 2015)
3. Research Methodology
3.1 Research Method
The method used for the completion of the report can b broadly categorised in three
parts. These include research philosophy, research design and research approach. According
to Silverman (2016), research philosophy assists in the collection and evaluation of data
relevant to the topic. In this case, the theories and frameworks that are relevant for
conducting the research in a proper manner are required. The research philosophy includes
three more aspects such as interpretivism, positivism and realism philosophy. As stated by
Flick (2015) these three aspects help in conducting the research in a proper manner. The
application of positivism philosophy can help in collecting information that is authentic and
relevant for the topic.
On the other hand, research approach helps in gaining proper information about a
particular topic. The research approach can be of two types that include indicative and
deductive. According to Lewis (2015), the approach helps in assessing the variables that exist
in a research topic. In this case, the multiple opportunities that are used by Inpex to recruit
talented individuals can be used to understand the process. The inductive approach denotes
the development of new models and its application while the deductive approach analysis the
relevant theories required for research. In this case, the research approach used is the
deductive approach so that theories can be applied for the research.
According to Taylor, Bogdan and DeVault (2015), research design can help in
collecting the relevant information that is required for the success of a research.
Understanding the variables that exist in the research can help in maintaining effective

11
HUMAN RESOURCE MANAGEMENT
collection and analysis of data. The research conducted will be in the form of exploratory
case study. The case study used for conducting the research is Inpex and the manner in which
the employer of choice strategy can be implemented in the organisation. The exploratory case
study is used to analyse the PESTEL situation along with the bench marking strategy.
3.2 Data Collection
According to Mackey and Gass (2015), the application of the data collection method
can help in identifying the manner in which research can be conducted in a proper manner. In
this case, the application of secondary data is used so that the conditions regarding the talent
management can be analysed. The data collection tools to be used is in the form of secondary
data can help in understanding the manner in which Inpex Corporation can effectively use
talent management framework. The source of data that is collected for conducting the
research is for various books, journals as well as websites so that effective literature on talent
management can be obtained along with details about the application of theories in the
organisation.
The application of the secondary research can help in identifying the vision of the
company and the human resource framework. The analytical tools that are used to identify
the talent management include the use of SWOT and PESTEL analysis. The reason for the
application of PESTEL is that it can help in identifying the factors that can help Inpex to
recruit talented employees. At the same time, the application of the secondary data can help
in making a comparison between competitors of Inpex. Apart from this, benchmarking can
help in understanding the best method that can be applied by Inpex. The employer of choice
strategy helps in identifying the people that are keen to work for the company and provide the
company with an opportunity to excel in the market. This has been done as the main issue of
the company is the shortage of skilled worker.