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UNIVERSITI TEKNOLOGI MARA CAWANGAN PERAKKAMPUS TAPAHMGT 162CASE STUDYNAME : MUHAMMAD HAFIZ BIN MD NAZRISTUDENT ID : 2019442042LECTURER : SIR MUHAMAD FHADLI SYAKIRIN BIN MOHDJAMALLUDINTABLE OF CONTENT 1 Introduction 2 Planning 3 Organizing 4 Leading 5 Controlling 6 Conclusion References The Company a...

Description

UNIVERSITI TEKNOLOGI MARA CAWANGAN PERAK KAMPUS TAPAH MGT 162 CASE STUDY

NAME

: MUHAMMAD HAFIZ BIN MD NAZRI

STUDENT ID

: 2019442042

LECTURER

: SIR MUHAMAD FHADLI SYAKIRIN BIN MOHD JAMALLUDIN

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TABLE OF CONTENT

1.0 Introduction

3

2.0 Planning

6

3.0 Organizing

9

4.0 Leading

13

5.0 Controlling

14

6.0 Conclusion

16

References

17

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1.0 INTRODUCTION

The refreshed edition is the third-generation logo of Petronas. In 1974, when Petronas was first integrated, the original Petronas logo was created. The basic framework contains an oil drop element and a "P" sign that conveys the company's core oil and gas industry and dynamism. A solid circle is at the middle of the oil drop, symbolising the whole duration or value chain of the company. The famous Petronas emerald green, meanwhile, reflects the seas and soils where oil and gas originate. The softer curves of the revamped logo have been applied to the oil drop, which represents a steady flow that symbolises the quest for change and demanding spirit of Petronas in fulfilling its stakeholders' energy demands and aspirations. Below the oil drop, the name of Petronas has been repositioned and the font has been sharpened to increase clarity and give importance to the oil drop in the logo.

Petronas Gas Berhad was formed as a wholly-owned subsidiary of PETRONAS in 1983 and was listed on the Bursa Malaysia core market on 4 September 1995. The corporation is 60.66 percent owned by PETRONAS, while other institutional investors and retail shareholders own the remaining shares.

It is Malaysia's leading company for gas infrastructure and utilities with main Gas Refining, Gas Transmission and Regasification companies. The Corporation processes natural gas piped from offshore fields and transports the refined gas to PETRONAS customers in Malaysia and Singapore through the Peninsular Gas Utilization (PGU) pipeline network.

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The Company also provides its customers with steam, electricity and industrial gases at the Kerteh Integrated Petrochemical Complex in Terengganu and at the Gebeng Industrial Area in Pahang.

PGB operates from its headquarters in Kuala Lumpur's PETRONAS Twin Towers and from nine regional offices in Peninsular Malaysia and two in East Malaysia.

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1.1 WHAT THEY DO Petronas Gas Berhad mainly operates on 4 business units which are gas processing, gas transportation, regasification and utilities.

Gas processing is basically the process PETRONAS’ upstream natural gas from offshore Peninsular Malaysia into sales gas, ethane, propane and butane.

Gas transportation is when Petronas transport sales gas to shippers’ end-customers through Peninsular Gas Utilization (PGU) pipeline network and Pengerang Gas Pipeline (PGP).

Regasification is when Petronas receive capacity users’ imported Liquefied Natural Gas (LNG), store it in LNG Regasification Terminal Sungai Udang’s (RGTSU) floating storage units and LNG Regasification Terminal Pengerang’s (RGTP) storage tanks and convert the LNG to sales gas.

Last but not least, Petronas utilities are to produce, market and supply electricity, steam, industrial gases and other utility products to various petrochemical businesses and third parties in Kertih and Gebeng.

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2.0 PLANNING

2.0.1 VISION Petronas Gas Berhad being Malaysia’s Leading Gas Infrastructure and Centralized Utilities Company and one of the largest companies on the local bourse in terms of market capitalization, with core businesses in Gas Processing, Gas Transportation, Regasification and Utilities strive toward being the leading gas infrastructure and utilities company.

2.0.2 MISSION Petronas Gas Berhad mission is to redeem itself as a business entity and gas infrastructure and utilities as their core business.

Other than that, PGB wants to operate safely, reliably and competitively. PGB wants their shareholders to know that they try their best in order to be one of the companies that operates safely and a reliable one.

PGB also strive to optimize the gas value chain to maximize returns for their stakeholders. PGB wants their stakeholders to know that it is a valuable investment for them and maximize the returns of their investments by focusing on optimizing the gas value chain.

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2.1 SINGLE-USE PLAN A single-use plan is a one-time plan specifically designed to meet the needs of a unique situation. A few examples of the common single-use plan are programmes, projects and budgets. PGB are one of the companies that are used to this type of plan as they have many projects and budgeting to do because they are very popular in the oil and gas field.

Projects and budgeting are related to one another especially in Petronas. PGB takes it budgeting very seriously and they have their own procedures in order to submit any proposal. In PGB, they have the Work Programme and Budget that they must obey when they are handed a new project. They need to follow the guidelines states in order to achieve the common goal. As an example, if they want to submit the documents in the form of a hardcopy they must have two sets of the submission requirement items.

2.2 STANDING PLANS Standing plans are ongoing plans that provide guidance that recur frequently. Like any other companies PGB also have their own standing plans. PGB came up with its own Code of Conduct and Business Ethics (CoBE). The CoBE, which is accessible to the public for reference on the Company’s official website, places significant importance in upholding the principle of discipline, good conduct, professionalism, loyalty, integrity and cohesiveness that are critical to the success and wellbeing of the Group.

The CoBE detailed out policy statements on the standards of behaviour and ethical conduct expected of each individual to whom the CoBE applies. The CoBE expressly prohibits improper solicitation, bribery, insider trading, money laundering and other corrupt activity not only by employees and directors but also by third parties performing work or services for or on behalf of companies in the PETRONAS Group. In compliance with the CoBE, the Company adopts the PETRONAS Anti-Bribery and Corruption Manual which governs the prevention of corruption and unethical 7|P a g e

practices within the Group. The Company has also adopted and implemented the ‘No Gift Policy’ as a means to avoid any conflict of interest situations for either party or potential business dealings between the Company and third parties.

PGB Group has also adopted its own PETRONAS Whistleblowing Policy (WBP) which provides an avenue for employees and members of the public to disclose any improper conduct committed or about to be committed in accordance with the procedures as provided under the policy. An employee who whistle blows internally will also be protected against any adverse and detrimental action for disclosing any improper conduct committed or about to be committed within the Group, to the extent reasonably practicable, provided that the disclosure is made in good faith.

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3.0 ORGANIZATION

3.1 ORGANIZATION CHART

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3.2 HOW THE BOARD OERATES

The PETRONAS Gas Board of Directors (the Board) Berhad (PGB or the Company) thinks excellence in corporate governance, is achieving the highest level of professionalism and business ethics across the range of operations of the organization is crucial. The Board recognizes that it is a form of self-regulation aimed at optimizing business ideas, maximizing the value of shareholders, and protecting the interests of stakeholders.

In discharging its obligations and duties the Board is efficiently directed by the board charter, a document which establishes the values and instructions that the board needs to apply. The delegation of authority as stated in the policy the board charter is transparent and guarantees that the line of authority is consistent with the regulatory and procedural requirements.

3.3 THE BOARD’S RESPONSIBILITIES AND DUTIES

Petronas Gas Berhad board of directors mainly have four main duties which are providing accountability, strategy formulation, risk management and internal control and they are also in charge of the policy making.

PGB board of directors need to be accountable to its shareholders, and to some extent, accountability towards a wider range of stakeholders affected by PGB’s decision such as employees, suppliers, customers, the local community and the state/country where PGB is operating.

PGB board of directors are also in charge of the strategy formulation which they need to review, approve and monitor the annual corporate plans which includes

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overall corporate strategy, marketing plan, human resources plan, financial plan and budget, risk management plan and information technology plan.

Risk management and internal control are also the duties of PGB board of directors. They need to review and approve financial statements, review and manage principal risks and adequacy of PGB’s internal control system including systems for compliance with applicable laws, regulations, rules and guidelines. They also need to ensure that there is an appropriate succession plan for members of the Board and the Senior Management.

Last but not least, PGB board of directors are in charge of policy making. They need to ensure that appropriate policies are in place, adopted effectively and regularly reviewed in light of changing circumstances.

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4.0 LEADING Leadership is a social influence process to influence people to achieve common goal. PGB are concern on the welfare of their employees and they have developed an organized workgroup to ensure employee satisfaction. In PGB, they believe that leaders can be developed as stated in the behavioural theory. According to this theory, people can learn to become leaders through teaching and observation.

For this purpose, PGB has its own Petronas Leadership Centre where they provide the training among the employees in the group. For this purpose, they have developed a learning and development framework which is the blueprint for the formal training from the point of entry to the organization like Junior Executives through General Manager and above. All PGB staffs are imbued with the corporate value and leadership competencies from day one. This enables the organization to streamline and align all employees with the organization’s goals and objectives.

As PGB staffs progress through their career in the group, they would have gone through the Petronas Leadership Learning Series, a suite of training programmes custom designed to address the nine leadership competencies that PGB executives are required to demonstrate in their respective jobs. As an example, they have programmes such as presentation skills, planning and implementing and the personal career planning.

Apart from the Petronas Leadership Learning Series, employees are expected to attend some ‘Skill Group’ programmes, which are functional training programmes designed to equip them with necessary technical competencies.

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5.0 CONTROLLING Controlling is the process of monitoring activities to ensure that they are being accomplished as planned and correcting any significant deviations. There are four types of controls that is being used in the PGB management which are the pre-action control, steering control, screening control and the post action control. The board is committed to promoting good business conduct and maintaining a healthy corporate culture that engenders integrity, transparency and fairness.

5.1 Pre-Action Control Pre-Action control is a control that is done at the input level of production. This type of control is done before an action is undertaken. It can also be the specification of input factors. For example, the primary input for PGB is the gas that they produce itself.

5.2 Steering Control Steering control is a control that focuses on the transformation process to ensure that it works properly. Petronas service operators should continuously monitor their process to ensure that they make no mistake when they are handling or even processing gas.

5.3 Screening Control Screening process is a specific check points that must be successfully passed before an activity proceeds further. It is mainly for managers or supervisors to check the quality of an item before it is handed out. For example, the quality checker for the branch must check the gas that have been processed before it can be assembled.

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5.4 Post-Action Control Post-Action control is a process that intended to discover undesirable output and implement corrective action. After it has been assembled, a final inspection is performed so that the customers will not have any complaints upon receiving them.

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6.0 CONCLUSION As a conclusion, Petronas Gas Berhad can be say as the monopoly player in the oil and gas company in Malaysia. PGB have their own management strategy in order to strive excellence and grow bigger. Petronas takes their mission and vison very seriously and every employee that is representing Petronas will need to act and behave in a certain way to achieve their common goal. Petronas’s good leadership has also produced many world class leaders that are very well known in the industry. The control process that PGB uses helps them in recognizing problems when they can still be handled thus improving their performance indirectly. In a nutshell, the four components which are planning, organizing, leading and controlling are very important in managing a successful company.

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REFERENCE Website 1. Petronasgas.com. 2020. Overview. [online] Available at: https://www.petronasgas.com/aboutus/Pages/cs.aspx 2. Bursamalaysia.com 2020. PETRONAS GAS BERHAD (PETGAS) : Company Profile. [online] Avaiable at: https://www.bursamalaysia.com/trade/trading_resources/listing_directory/companyprofile?stock_code=6033 Book 1. Riza Emifazura Jaafar. 2019. Fundamentals of Management. Perak: UiTM (Tapah)

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