strategic hrm challenges in the deregulated hydrocarbon sector
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APMDismantled
APMDismantled
“Strategic HRM Challenges in the deregulated Hydrocarbon Sector”
HRM Scenario Planning 2002-2007
Sh. Nandlal Narayanan & TeamReliance Industries Ltd.Petroleum Division
Presented at HR Round Table organized by ISPe & UPES, Dehradun
The views expressed in this presentation are the professional & personal views of the presentation team. These are derived from
personal experiences and thoughts. These do not reflect the organization's
philosophy or strategy
Administered Price MechanismThe evolution
No controls on Petroleum Products Upto 1938
1948 Valued Stock Account Procedure
1939 - 48Oil Companies maintained pool
accounts
1977 APM
2001 Beginning of MDPM
Impact - Circa 2002Shift of Focus
APM MDPM
Regulator Market
•Uniform Pricing- Price not a pull•Perception around Services, Quality & Quantity - Specific to respective retail outlet• No perceived need for tech up-gradation•Brand and positioning not required
•Differential Pricing - Price Pull•Perception around Services, Quality & Quantity - Specific Service Provider•Need to have strong tech. focus as an enabler•Need to have strong brand & sound positioning
Elements of BusinessStrategy
Response time
Speed
Emphasis on Service and
customer
Mkt. responsiveness
New value added services
Innovation
Dynamic
Systems
From regulated ambience to - market driven environmentThe Change. .. …...
Think GlobalAct Local
Philosophy
Augmented Services
Convenience Services
Threshold Services
Time - t
Service
Attitude
The Retail Value ChainHow does one attract the customer in post APM era ?
Y-02 Y-03 Y-04 Y-05 Y-06 Y-07 Y-08
Early bird advantage
Key differentiator
Degree of Replication
Degree ofImplementation
Low
HighLow
High
Infrastructure
Technology
Service Attitude
Loyalty Programs
Basic Services
The Challenge. . …..
Operational Excellence Mandate for
HR
The HRM scenario
•Sourcing•Performance Management•Compensation Practices•Training•Policies
Sourcing Quality ●More emphasis on selection of behavioral traits ●Use of innovative assessment and evaluation●Focus on potential
•Sourcing•Performance Management•Compensation Practices•Training•Policies
●Driving Performance through “Corporate Values”●Customer Driven Measurement
The HRM scenario
•Sourcing•Performance Management•Compensation Practices•Training•Policies
●Compensation as a performance driver
The HRM scenario
•Sourcing•Performance Management•Compensation Practices•Training•Policies
● Training for Standardization, Consistency and Reliability●Impact on business is relatively more tangible and quick - Training Evaluation to be done at ‘Result level’.
The HRM scenario
•Sourcing•Performance Management•Compensation Practices•Training•Policies
●Dynamic as per the business requirement●Facilitative than controlled
The HRM scenario
Beyond 2007. .. …????
“ What will the major oil company in 2010 look like ? . . . .
. . . . Most likely it will be a highly decentralised company with each of its segments operating as autonomous entities. It will have outsourced as much as 40% of its current activities. It will have fewer employees - perhaps as little as one third of its professional staff of today.”
P.J Carroll. President, Shell Oil Company.
1995
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