EFFECTIVENESS OF HUMAN RESOURCE UTILIZATION IN OIL AND GAS INDUSTRY IN MALAYSIA

Employees are the backbones to every organization. Managing the employees are the crucial practice to improve their good feeling towards the organization. This study attempts to examine the effectiveness of current HRM utilization and practices in oil and gas industry in Malaysia, as well as to study the importance of having effective HRM practices utilization. The HRM practices namely training and development, performance appraisal, compensation, employee empowerment and ownership as well as work environment are the main practices that has being focused. A questionnaire form has been distributed to the employees of PETRONAS Carigali SDN BHD (PCSB), a leading oil and gas operator in Malaysia including their contractor and also, pilot study of the questionnaire already has been done. A four point Likert Scale will be used in the questionnaire form which specify the respondent’s degree of agreeing answers with the statement given. The analysis of the data is done by Average Index and Relative Importance Index (RII) method and the results will be then converted to importance indices. The most effective current human resource practices and utilization have been identified based on the questionnaire survey perform in the study which are; 1) Training and Development, 2) Compensation, 3) Work Environment, 4) Performance Appraisal, and 5) Employee Empowerment and Ownership.