1.

0 INTRODUCTION

1.1 Company’s Background

Petroliam Nasional Berhad (PETRONAS) is Malaysia’s national oil company

and is on track towards becoming a leading oil and gas multinational of choice,
ranked amongst the largest corporations in the world. PETRONAS was established on
1974 and is wholly owned by the government.

There are four main board of directors, starting with Tan Sri Wan Zulkiflee
Wan Ariffin as a chief executive officer (CEO) and president of PETRONAS. Next,
followed by the three executive vice president which are Datuk Mohd Anuar Taib as a
CEO Upstream, Datuk Md Arif Mahmood as CEO Downstream and YM Tengku
Muhammad Taufik Tengku Aziz as a chief financial officer.

Since its incorporation, PETRONAS has grown to be an integrated

international oil and gas company with business interest in 35 countries. The
PETRONAS group is involved in various oil and gas based activities, which the group
is engaged in a wide spectrum of petroleum activities, including upstream exploration
and production of oil and gas to downstream oil refining, marketing and distribution
of petroleum products. PETRONAS’ Upstream Business which incorporate
Exploration, Development and Production, LNG Assets, LNG Marketing and
Trading, and Malaysia Petroleum Management is a fully integrated business covering
a broad portfolio of resources and play types in more than 20 countries. Meanwhile,
PETRONAS’ Downstream Business comprises multiple businesses and diverse
activities including refining, trading, and marketing crude oil and petroleum products

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as well as manufacturing and marketing petrochemical products for local and
international consumption.

Address:

 Tower 1, PETRONAS Twin Towers Kuala Lumpur City Centre 50088 Kuala
Lumpur, Malaysia.

Vision:

 “A Leading Oil and Gas Multinational of Choice.”

Mission:

 “We are a business entity. Oil and gas is our core business. We add value to
this resources. We contribute to the wellbeing of the society.”

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1.2 Manager’s Profile

Mohd Abdul Rahman Saleh

Head of Technical Operations Management Downstream Business Excellence

Responsibility:

Mr Rahman is the Head of Technical Operations Management Downstream Business

Excellence in PETRONAS. He is responsible to monitor and check on the
performance of assets in the company. He is also in the control of the activities of his
subordinate, to check on every accomplishment of the subordinates and motivate them
to perform better. Plus, he plays his role as a manager to make sure all the tasks are
done and will take any corrective actions if needed. In addition, he is also one of
PETRONAS’ interviewer for scholarship and job promotions.

Education and Working Experience:

Mr Rahman started his education in Bachelor of Mechanical Engineering in Universiti

Putra Malaysia (UPM). During the third year of his studies, he was offered by
PETRONAS and had an interview with them. After he finished his studies, he was
sent to Paka, Terengganu to start his duty there on April 2003 as a plant technologist
for 4 years. He was then committed to management section for another 4 years. In the
year of 2014, he was sent back to Kuala Lumpur as the head of technical and business
operations management, until now. He is now has been working with PETRONAS for
15 years.

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2.0 MANAGERIAL ROLES

Role refers to the behaviour that is expected in a particular situation. These

roles were developed by Henry Mintzberg in the late 1960s after a careful study of
executives work. Mintzberg defined managerial roles based on generalization of his
observation of many managers work during their normal working day. He determined
ten kinds of roles and initially divided the roles into three sub categories:

 Interpersonal roles
 Information roles
 Decisional roles

2.1 Interpersonal Roles

Interpersonal roles involve interactions and relationship with organizational

members and other constituents. There are three interpersonal roles played by the
manager, they are figurehead, leader and liaison. Managers must act as figureheads
because of their formal authority and as a symbolic position representing the
organisation. As a leader, managers have to consider the needs of an organisation and
their subordinate that they manage and work with. The third interpersonal role, which
is liaison, coordinate the activities between individuals and work groups and develop
favourable relationship with outside constituents.

From the analysis of Mr Rahman’s interview regarding his use of managerial

roles shows that he is a leader of his groups. Since Mr Rahman is responsible for the
activities of his subordinate, he leads and coordinates their activities in meeting task-
related goals and motivate them to perform better. Other than that, Mr Rahman also
organize the structure of the team members to highlight specific skills that each
possesses, and even offering rewards for job that well done perform by his
subordinate.

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2.2 Informational Roles

Next, in their informational roles, managers are responsible for ensuring that
the people with whom they work have sufficient information to do their job
effectively. Informational roles include monitor, disseminator, and spokesperson.
When monitoring activities within an organization, managers find information about
internal and external events, receive the information and exchange it with others. This
process of transmission is the dissemination role which is passing on the information
to others. A manager has to give information concerning the organisation to staff and
to outsiders, taking on the role of spokesperson to both the general public and those in
positions of authority.

According to our interview, Mr Rahman is quite active as a monitor in the

informational roles. Monitors are people who understand and recognized your
organization and work by discovering and receiving information. Mr Rahman was in
charge to monitor the performance of each assets of the company. He observe whether
the assets has any problem or if the assets does not meet with the standard designated.
Furthermore, Mr Rahman obtains reports and data about the assets every months to
check on the assets if it has any common issues. Thus, we can see that Mr Rahman
uses his managerial roles to obtain the various information resources.

2.3 Decisional Roles

Last but not least, according to Mintzberg, decisional roles is one of the most
important and crucial part of the managerial activity because making decisions is the
core of completing the objective of the organization. Decisional roles involves
managers to process information and reach conclusions. Managers’ interpersonal role
leads to the decisional roles. Information and resources that are collected and gathered
by the interpersonal makes a manager able to make decision and to responsible to
what he obligated to. There are four decisional roles include being an entrepreneur,
disturbance handler, resource allocator, and negotiator.

As entrepreneurs, the manger decides to change on what is happening in the

organization. They may have to initiate change and take an active part in deciding
exactly what is to be done. This is very different from their role as disturbance

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handlers. Managers cannot make decision based on circumstances beyond their
control. The role of resource allocation manager is very important in many
organizational analyses. A manager must make the decisions about the allocation of
money, equipment, people, time and other resources. Thus, managers actually plan
time and programs and take actions. The negotiation role is important because
managers need to negotiate with others make decisions about the contribution of
organisational resources.

In accordance with the interview, Mr Rahman plays the roles as a disturbance

handler which he makes the decision on the common issue that arise from the assets.
For example, safety issues on the workers who fall from high places when they are
working or any accident occurs when performing their works or any problems with
the systems of assets. Therefore, Mr Rahman will take preventive action if possible or
take corrective action once the problems have arisen. In addition, PETRONAS has
Health, Safety and Environment (HSE) management that will keep the workers safety.
Thus, we can see that Mr Rahman knows how to handle the problems very well.

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3.0 MANAGERIAL FUNCTION

3.1 Planning

Planning provides a foundation for all organizational activities. Through

planning, managers coordinate organizational activities so that goals of the organization
can be achieved. Organizational success depends on the ability of managers to develop
plan that bring together in logical way, the diverse set of tasks that occur within the
organization. Every organization need plan because it is a blueprint for action that
prescribes the activities necessary for the organization to realize its goals.

An interview conduct with Mr Rahman Bin Saleh, Head of Technical

Operations Management Downstream Business Excellence explained that downstream
plays a strategic role in enhancing the value of petroleum resources, transforming it into
high-quality, value-added products for the domestic and international market. Mr
Rahman clarified that the purpose of goal-setting (planning) is to clarify the vision for
the business. These stages consists of identifying three key facts:

 Firstly, define short-term and long-term objectives.

 Secondly, distinguish the process of how to accomplish objectives.
 Finally, customize process for the staff, each person is given a task with which is
doable.
 Thus, the final step of this stage is to write a mission statement that communicates
towards the goals to both shareholders and the staff.

Be mindful that, in this process goals must be detailed, realistic and match
values of vision. He also stated that planning process for the company will start on 1st
January for every year and come to the end at December. In December, the company
will start the evaluation of their performance.

In the interview, Mr Rahman also stated there is analysis process in planning.

Analysis is a vital stage as it is the information gained in this stage that shapes the next
two stages. In this stage, gather as much information and data relevant to accomplish
the vision. To emphasize on the analysis is to understand the needs of the business as a
sustainable entity, its strategic direction and identifying initiatives that will aid in the
business growth. Examine any external or internal issues that may potentially affect the

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 goals and objectives. Ensure to differentiate the strengths and weaknesses of
organization and any threats and opportunities that may arise along the path.

Their vision of becoming a 'merit-based high performing business', they are

committed to deliver the details that matter to their customers, while ensuring that their
operations are managed in a sustainable and safe manner.

3.2 Organizing

Organizing involves determining the tasks to be done, who will do them, and
how those tasks will be managed and coordinated. Managers must organize the
members of their work groups and organization so that information. To fulfil its goals
and missions, they need to recognize work that must be done to achieve the
organization’s strategic and operational goals.

Result from interviews with Mr Rahman shows that every sections in

PETRONAS has their own job design based on what are their main roles in the
company and each person tasks’ depend on their position in the organization. Basically,
in the downstream section, employees will be involved in the task in refining, trading
and marketing of crude oil and petroleum products, manufacturing and marketing of
petrochemical products, gas processing and transportation, regasification, utilities
marketing, power generation, as well as the provision of technical and engineering
solutions to the whole PETRONAS Group.

The employees were given the job according to the qualifications and criteria
required in a department and also take into account their previous work experience in
the field. Then, employees can focus on their job specialization and is responsible for
efficiently carrying out tasks in achieving organization goals.

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3.3 Leading

Leading is the capacity to lead the member of work groups toward the
accomplishment of the organizational goals. Leading consist of leadership and
motivation. Leadership is broadly defined as a social influence process that cause other
to achieve organizational goals. Typically, leadership involves creating a vision of the
future, devising a strategy for achieving that vision, and communicating the vision so
that everyone understands and believes in it.

According to interview with Mr Rahman, the leadership styles that downstream

acquires is autocratic style (directive style) and a democratic-consultative leader style.
Mr Rahman told that their department use autocratic styles when the problems or the
situation that happen is complex and only the managers can make the decision.
Consequently, autocratic style is use by managers that makes unilateral decision that
employees will not involve in decision making. Democratic style of leadership is a
leader who involves employees in decision making, delegate’s authority, encourages
participation in deciding work methods and goals, and uses feedback to coach
employees. For democratic-consultative style, Mr Rahman include his employees to
give initiative idea but the final decision will be made by himself using his factual and
commercial senses.

3.4 Controlling

Controlling is monitoring the performance of the organization as well as their

progress in implementing strategic and operational plans. Organizational control is the
systematic process through which managers regulate organizational activities to make
them consistent with the expectations established in plans, and to help them achieve all
predetermined standards of performance.

The analysis from Mr Rahman’s comments on the controlling process that

should be done in downstream department where he need to set the standards for their
performance which is downstream is a setting of refining of petroleum crude oil and
the processing and purifying of raw natural gas. The standard of the mass of gas to
produce products such as gasoline or petrol, kerosene, jet fuel, diesel oil, heating oil,
fuel oils, lubricants, waxes, asphalt, natural gas, and liquefied petroleum gas (LPG) as

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well as hundreds of petrochemicals. He said that this process is to make sure that they
can make comparison between their actual and standard performance. After the process
of refining and purifying had be done, their department will be going to measure actual
performance and next comparing the actual performance. As usually, he will take the
corrective action if there any unacceptable deviations in their tasks. The performance
comparison is useful to ensure continuous improvement in quality and value of the
products and services.

He also able to evaluate their staff with give out a ratings for their performance.
Rate 1(performing), Rate 2 (above performance), Rate 3(mid expectation) and Rate
4(far below the performance). If employees who achieve performance only Rate 4
which is far below the performance, they will be called by the company for counselling
and motivation so that they can improve their skill on doing tasks and also multitask
skills. This is how they can make sure that all the activities in the organization moving
toward their goals.

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4.0 AWARDS AND CERTIFICATION

4.1 PETRONAS Achievements

 Product Of The Year Award

PETRONAS Lubricant International (PLI)’s Arexon Svitol Easy received the Product
of the Year 2018 Award in Italy for product innovation

 Asia-Pacific Stevie® Award

PETRONAS Leadership Centre (PLC) received the Gold Stevie® Award for
Managerial Excellence (ME) Leadership Development Journey under the Innovation
in Human Resources Management, Planning & Practice Category.

 APAC NOC Of The Year Award

PETRONAS was named National Oil Company (NOC) of the Year for the second
time running at the Energy Council’s APAC Energy Assembly & Awards Dinner
2018.

 Most Attractive Employer In Malaysia

PETRONAS was crowned as Most Attractive Employer in Malaysia 2018 under the
Randstad Employer Brand Awards.

 Best General Public Award

Galeri PETRONAS

Alegori: Ekpresi Seni Kontemporari berasaskan Manuskrip Melayu, a collaborative

publication between GALERI PETRONAS and Institut Terjemahan dan Buku
Malaysia (ITBM), won the Best General Publication Award (Anugerah Buku Umum
Terbaik) under the Heritage Studies Category, at the National Book Award 2018

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4.2 Individual Achievements

 Scenario Planning for 20 years in 5months

Mr Rahman and 23 other people were selected to complete the Scenario Planning for
PETRONAS in 20 more years and for just 5months which is the shortest times to
finish the project. They managed to complete the plan from 2016 until 2036.

 Shortest Plan Turn Around Acquisition

For every three years, PETRONAS will close to clean the equipment. Usually people
took 37days-44days but Mr Rahman manage to do it in 33days only.

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5.0 FUTURE PLANS

5.1 PETRONAS To Join LNG Canada Project

In 2018, PETRONAS will join with the all big name in oil and gas industry
such as Shell Canada Energy, Petro China Kitimat LNG Partnership, Diamond LNG
Canada Ltd. and Kogas Canada LNG Ltd. in LNG Canada Project. PETRONAS will
take an equity position in LNG Canada, located in Kitimat, British Columbia on the
west coast of Canada, through its wholly owned entity the North Montney LNG
Limited Partnership (“NMLLP”), subject to regulatory approvals and closing
conditions. As a result of this transaction, if approved and upon closing, ownership
interest in LNG Canada PETRONAS will hold 25% of share through NMLPP.

The LNG Canada joint venture is proposing to build a liquefied natural gas
(LNG) export facility in Kitimat, British Columbia, Canada, that would initially
consist of two world-scale LNG processing units, referred to as “trains”. The project
would include an option to expand to four trains in the future.

PETRONAS is a fully integrated energy company with extensive experience

in LNG. Through its wholly owned upstream energy company Progress Energy and
its partners, PETRONAS is one of the largest natural gas reserves owner in Canada –
with the major of these reserves in the North Montney natural gas formation in
northeast British Columbia. The North Montney LNG Limited Partnership is a
wholly-owned entity of PETRONAS.

PETRONAS made this decision to invest in Canada market because it has

bigger resources and it’s a chance for PETRONAS to increase their revenue and
expand their business in global market.

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5.2 PETRONAS Plan For Hybrid And Electric Future

Not in just oil and gas industry, PETRONAS also participate with sport
league, Formula 1. PETRONAS and Mercedes F1 team are trying to find new ways to
be a part of the hybrid technology and spread their wings to other series.

The oil and gas multinational is involved with the German outfit since 2010 as
their fuel and lubricant partner and has played a prominent role since the beginning of
the turbo hybrid era in 2014.

Mercedes is entering Formula E, the electric single seater series from 2019 as
a part of its expansion into the electric motorsport. Even WEC is set to have hydrogen
fuel cell cars in the Le Mans in the near future.

Speaking about their entry into different alternate fuel projects, PETRONAS is
honoured and excited with the project. It is different competitions, different spaces
where PETRONAS can operate and looking at the technological solutions that they
can provide. It also can be the relevant as an energy in those spaces and equally going
that into everyday use.

PETRONAS talking to many OEMs and are already operating with them for
battery pack fluids and other functional fluids that actually help the hybrid technology
in particular to function, whether that is in commercial vehicles, passenger vehicles or
agricultural vehicles.

There will be a transition to hybrid, but to look far ahead, in the future we will
potentially have an EV solution that will provide a sustainable and non-impactful way

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of mobility. That will happen when PETRONAS have to challenge their selves to bid
the best transition solution to achieve that. PETRONAS had already made a pledge to
commit 35% of their budget to emission- reduction projects over the next few years.

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6.0 CONCLUSION

As a conclusion, we can see that PETRONAS use two of leadership

behaviours of styles, which are an autocratic style of leadership and democratic
consultative style of leadership.

Autocratic style of leadership is a leader who centralizes authority, dictates

work methods, make unilateral decisions and limits employee participation. For an
example, when it involves with a million Ringgit contract and a complicated problem,
the top manager will make the decision without their sub unit.

Next is democratic style of leadership means a leader who involves their

employees in decision making, delegates authority, encourages participation in
deciding work methods and goals and uses feedback to coach employees. This
leadership style is divided into two, a democratic style consultative leader and a
democratic participative leader. PETRONAS is more to democratic consultative
leader. Democratic consultative leader seeks input and hears his concerns and issue of
employees but makes the final decision by himself. In this case, when PETRONAS
want to improve their performances in every department, they will ask their
employees for an opinion and ideas. The best ideas will be chosen by manager and
will be used.

PETRONAS also want to be a pioneer in oil and gas industry in Malaysia.

PETRONAS is a number 1 Malaysia’s company shareholder in Canada project but as
a nation not. They want to be the first company in LNG liquid fide natural gas in
Malaysia. That’s why PETRONAS bought a share in Canada in LNG project. The
revenue in Malaysia is very small and PETRONAS want to gain more revenue by
investing in Canada market. For this time, PETRONAS is the first company who have
the most ship that carrying LNG in the world. That's a good achievement for
PETRONAS.

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7.0 REFERENCES

1. PETRONAS. Retrieved from https://www.petronas.com/

2. Nursalfarina Bt Muhamad. (3 June 2014). Strategic Information System Planning.
Retrieved from https://prezi.com/wybpi6_6nl-f/strategic-information-system-
planning/
3. Downstream. Retrieved from
https://www.investopedia.com/terms/d/downstream.asp
4. What is the downstream process? Retrieved from https://www.reed.co.uk/career-
advice/oil-gas-what-is-the-downstream-process/

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8.0 ATTACHMENTS

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