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

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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.

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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.

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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.

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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

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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

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(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

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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.

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4. Data analysis and presentation of findings
4.1 SWOT analysis
The findings are presented by analysing the literature review that is related to the
application of talent management in an organisation. It has been seen that in order to
implement proper talent management technique it is necessary that a complete SWOT
analysis be conducted so that the internal capabilities of Inpex can be understood. The SWOT
analysis conducted can be used for identifying the opportunities that Inpex can gain in the
competing business environment of Australia.
Strength
 Geographically diversified
 Improved operational efficiency
 Strong research and development
team
 Employee base of over 2000
Weakness
 Decline in the production of natural
gas
 Excess use of renewable sources
 Shortage of staff
Opportunity
 Business reach can provide a wide
reach and options for diversification
 Growth in global energy demand
 Medium and long term business
strategies accrue profits
Threat
 Intense competition with similar
business
 Excessive legal and Government
restrictions
 Fluctuation in prices
 Occurrence of natural disasters
Table: SWOT analysis
(Created by author)

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Based on the analysis it can be said that the strength of Inpex lies in the fact that it is
geographically diversified. The fact that the projects undertaken by Inpex reaches about 25
countries overall can be attributed to the fact that the popularity of the company is huge.
Thereby, the company can reap high dividends and in the process gain a competitive
advantage over its competitors. The improvement of the operational efficiency of the
company provides for obtaining huge operational profits and makes it lucrative for the
investors. With the existence of a strong research and development facility, Inpex can ensure
that a technological edge over the rivals can be gained. At the same time, the fact that the
company owns more than 2000 employees provides an idea about the loyalty and the
management ability of the company (Inpex.com.au 2018).
At the same time, the weakness of Inpex is that decline in the production of natural
gas may cause concern for the managers. This is mainly because natural gas production may
decline due to the depleting resources in the environment (Inpex.com.au 2018). Inpex can
lose making profits and at the same time, the operational activities of the company can be
exposed. This can provide Inpex with a huge disadvantage in the market. Along with this, the
growing use of renewable resources has led to the introduction of new rules in various
countries (Inpex.com.au 2018). Inpex also has shortage of staffs, which provide a
considerable drawback for the organisation. Hence, employer of choice strategy can used to
mitigate the weakness that may arise due to lack of workers.
The opportunities that can be derived by Inpex are that the business expansion
initiatives can help the company to gain recognition in the international market. Options for
diversifying the business can be gained with the effective application of strategies and
recruitment of talents (Bailey et al. 2018). On the other hand, growth in the demand for
global energy can provide Inpex with an opportunity to expand in the market. Therefore, the
increase in the demand for oil and gas in various countries can provide the company with rich

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profits in business. Therefore, it can be said that the opportunities derived by Inpex can help
it to increase its revenue in the market (Inpex.com.au 2018). Apart from this, strategies to
gain profit can be based on the middle and long-term business deals so that a competitive
edge over the rivals can be gained. This can help Inpex to strengthen its position in the
market.
The threat of the company is that an intense competition can provide tough challenge
for Inpex. One of the competitors of Inpex, is Shell, a leading company in the supply of
natural gas. Shell is more established in the local and international market and has more
financial stability as compared to Inpex (Inpex.com.au 2018). Therefore, Shell provides
intensive competition for Inpex. At the same time, in Australia, the company is subjected to
restrictions from the Government as well as the law. Different law governs every state of the
country, and due to this, it can be difficult for Inpex to remain consistent with following a
particular law. Therefore, compliance cost of the company can increase and the impact can be
a high drop in profit. The fluctuations in the prices of the oil and gas in the country can
provide the company with an added disadvantage in the market. This can be accounted with
the natural disasters that may occur in the country and therefore, can cause a huge loss in the
operations of the company (Inpex.com.au 2018).
4.2 PESTEL
After completing a SWOT analysis, an external analysis of the company can be
conducted with the application of PESTEL. The factors that are included in the analysis
include the influential factors that can help Inpex to gain a competitive advantage in the
market. Each of the factors of the PESTEL analysis can be analysed separately.
Political: As stated by Banfield, Kay and Royles (2018) the political scenario in
Australia is stable and due to this, a company like Inpex can find itself in a proper situation in

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the market. This can provide an advantage for the company to remain competitive and ensure
that the aid of the Government becomes an important stakeholder for the company. However,
the rules of the Government need to be followed so that Inpex can continue conducting a
legal business in the market (Inpex.com.au 2018).
Economic: The economic condition can be a threat for the country as well as for the
companies in Australia (Bolman and Deal 2017). This is mainly because the fluctuations in
the economy can result in the loss of business. As seen from the SWOT analysis, fall in price
can reduce the purchase of the oil and gas. Therefore, it is necessary that Inpex understand
the rate of fluctuations that exist in the market and accordingly develop strategies
(Inpex.com.au 2018).
Social: The social responsibility of the company can be attributed to the Corporate
Social Responsibility undertaken by the company. At the same time, the social factor
includes the support of the local people so that the company can gain the support of the
customers. The development of the society and the support of the local people can be used for
gaining success in the company.
Technological: The technological progress of the society can bring about drastic
changes for a company like Inpex. In the modern world, the technological competence can
help in the development of a company (Bratton and Gold 2017). The technological
competence can provide the company with an opportunity to expand. It has been seen that the
research and development of the company is strong and this is mainly because the
technological competence of the company is high. Therefore, this can be considered as a
strength that Inpex have in business.
Environmental: It is a known fact that the Australian Government takes extra
precautions for protecting the environment. Therefore, it is important for Inpex to ensure that

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the environmental factors are taken into consideration (Inpex.com.au 2018). The fact that the
company deals with oil and gas can be problematic for the environment. Hence, it can be said
that the environmental condition of the country can act as a medium threat for the company.
Legal: The legal compliance that Inpex need to follow may deal with the
environmental laws and other legal compliance in the market. As the laws of Australia are
different in different states, it can provide problems for the organisation (Brewster, Chung
and Sparrow 2016). Therefore, it can be said that the legal compliance of the country can be a
threat for the development of Inpex in the local market.
4.3 Benchmarking
Benchmarking can be considered as a tool that can help Inpex compare its strategies
with that of Shell. This can help the company to learn from the best organisation in the
business circuit and at the same time ensure that formulae strategies that can help in
understanding the level of maturity in business. Inpex can undertake the approach to ensure
that competitive advantage is gained in the market.
Benchmarking can help Inpex to compete with the recent changes in the economy of
Australia. The market of Japan as well as Australia is different and it is important that a
strategy such as benchmarking be used to analyse the process that exists in the market of
other companies. Similar companies can be analysed so that Inpex can gain a competitive
advantage in the market. The benchmarking process helps in providing an analysis of the
market in which the company works. The operating system that exists in the market provides
for an added advantage in the market. Therefore, the benchmarking process can help Inpex to
develop its business and maintain a stable growth in the economy. Hence, it can be said that
benchmark is one of the most significant factors that can be used to understand the growth of
the company and at the same time formulate strategies.

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5. Implications and Recommendations
Therefore, it can be said that the implication of the results derived from SWOT and
PESTEL analysis can be considered as both advantage as well as disadvantage for a company
like Inpex. This is mainly because of the fact that the company deals with oil and gas that can
be lethal in spoiling the environment.
It can be seen that in the case of Inpex, the integrated talent management framework
can help the company to develop its market in the Australian market. This is mainly because
the company can recruit people from the local market and hope to strengthen its dominance
in the domestic market. Therefore, it can be said that mitigation related to ensuring that the
dominance in the domestic market takes place can be provided for Inpex.
The managers of the company need to ensure that it provides sufficient wages and
salary to the candidates in order to recruit them and retain them in the organisation. The
satisfaction of the employees needs to be taken into consideration so that they can be
encouraged to continue working in the organisation. Thereby, it can be said that Inpex can
increase the capacity of the employees and its productivity so that the company can remain
the best in the industry. This can be considered as a recommended factor so that Inpex can
help its employees to continue working in the company.
Other gaps that can be accessed by the research are the fact that motivation is one of
the factors that help in the retention of the employees. The manner in which the company can
retain employees can help Inpex to remain dominated in the business. The application of
Maslow’s need hierarchy theory does not provide the exact emotions of the people. The fact
that the nature of human development can be accessed by the application of Maslow’s
hierarchy needs is not defined properly. For example, the security of an employee that has

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work experience would want to accomplish the self-actualisation needs for progress in the
organisation.
At the same time, mitigation techniques can be provided so that Inpex can provide
motivation to the employees. Maslow’s Hierarchy of needs can define the manner in which
human psychological development can take place. Therefore, it needs to be taken into
consideration the factors that help in the development of the people. In the case of Inpex, the
application of Maslow’s Hierarchy of needs provides an advantage for the employees to
understand the motivating factor. Therefore, it can be said that Inpex can apply the theory and
ensure that every employee can be provided with proper motivation and promotion in the
company.
The balanced scorecard can provide the company with four benefits and it can provide
Inpex with an opportunity to analyse and connect every factor in the company. One of the
gaps that have been identified in the analysis of the balanced scorecard is the fact that it does
not provide a direct link with the organisational structure with the financial stability. In
companies like Shell, the financial strength of the company lies in the fact that the
organisational capability of the company provides stability. Therefore, it can be said that the
manner in which Inpex can implement the strategies related to the application of the financial
situation can rest in the application of an increase in profitability.
At the same time, external threats that the company faces such as hindrance from the
PESTEL factors can provide Inpex with a disadvantage in the business organisation. Factors
such as economic factor as well as the environmental factor may provide threat to the
company. Therefore, these threats can be mitigated by considering alternatives in the form of
strategic management in business. For example, Inpex can start developing sustainable
sources of energy so that the company can develop its position in the competing market in

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Australia. In this regard, a proper conclusion can be drawn that summarises the
implementation of theories and practises.
The application of the benchmarking procedure can help Inpex to understand the best
in the business and at the same time ensure that it can help in the improvement of the policies
undertaken by the company. It can also help Inpex to continuously develop its business
strategies and ensure that it maintains its dominance in the market.
Therefore, it can be concluded that in order to recruit talented individuals in the
market it is necessary that a company like Inpex analyse the business market. Talent
management is an important function that needs to be considered by every business
organisation for its development as well as for the implementation of the business strategies.
In the case of Inpex the company can apply various theories and framework that can help it to
retain employees. The employer of choice strategy can be used to manage the talents of Inpex
as it provides with an opportunity to assess the loyalty of the employees along with the
manner in which it can help in the motivation of employees.
The analysis of the SWOT and PESTEL provides an idea about the threats and
opportunities that Inpex have on the business. The fact that it is well established in the market
can provide it with an opportunity to continue its dominance. At the same time, the treat from
Shell can provide Inpex with strong and intense competition in the business market. At the
same time, Inpex can formulate strategies so that it can mitigate the threats and ensure that it
continues its development in the society. The support from the stakeholder and the
Government can provide Inpex with an added advantage for the company to maintain its
stability in the competing market of Australia.

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