Training is a method of provide knowledge, skills, and technical for employee through the activities or events. Besides, training can improve ones capability, capacity, and performance, help the company achieve the goal and profit efficiently.
Development is focused upon the activities that the company recruiting the employee into our company and help the company together in the future. This method must be discussed and planned by the organization.
The definition of training and development
Company’s activity aimed at through information and instructions to upgrade the employee’s performance and skills on the present job or to help employee arrived a required level of knowledge or skill. This method can increase the production of the company, move forward a single step to increase the company profit.
Company use of scientific and technical knowledge to meet specific objectives or requirements in their future. They also will invite more employees into their company and provide skills and technical to them. The process of economic and social transformation that is based on complex cultural and environmental factors and their interactions.
The importance of training and development
1) Overcoming weaknesses and improved employee performance
Most employees have some weaknesses in their workplace skills. Training can provide the skills and knowledge to them that each employee needs to improve. A development program can brings their employee to higher level to product the production. This method can reduce mistake of the employee, produce the outputs efficiently. When the employees are competent and on top of changing industry standards, they will help the company hold a position as a leader and strong competitor within the industry.
2) Consistency and employee satisfaction
Through a structured training and development program ensures that employees can work and help the company together, improve work efficiency. If the employees obtain the opportunity to practice, they will increase their skills and technical. Therefore, the employees have the advantage over employees in other companies that a company makes shows the employees they are valued. Through training opportunities, the employees may feel more satisfaction toward their jobs.

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Content
Training and development was one of the main functions in human resource management. With the advancement of the world, most of the company will try to invest money in employees through the training and development as the employees is one of the main weapon for company to compete with others in business. When the company is investing money in equipment, its value might be depreciated over the years. But investing in employees will be totally different as investing in equipment. When the company is investing in employees, it will bring a lot of benefits to company. The training and development could produce more productive and effective employees to the company in return of the investment. These employees could improve the performance of the company.
Training refer to the method used by employers to give their employees some skill needed to perform in their job. Nowadays, the most common training methods used by the company are induction training, on-the-job training and off-the-job training. Induction training will try to familiarizes the new employees with their responsibilities and role. Normally the human resource manager will explain the company rules, working hours, vacations, employees benefits, company organization and operations, as well as expectation of the job to the new employees on the first day. Then the facilities tour will be given to new employees within the workplace and all the colleagues are introduced to make them feel welcome.
On-the-job training means the employees receive training in the workplace. The most common type of on-the-job training is coaching. The experienced employees will provide instruction and demonstrations to the trainees in order for them to learn some new skills. Job rotation means the trainee will be given different task to gain experience in the full range of job and to broaden their understanding of the business. Special assignments are given to trainee which give them a chance to deal with the actual problem in working.
Off-the-job training means the employees receive training at a site away from the working environment. They could be ‘in-house’ training or ‘out-house’ training. In- house training means training will be given to trainee using employer’s facilities while out-house training are provided by outsider or college. The company will allowed their employees to go for higher education by sponsored them to the show their support. The employees could learn more knowledge from the outside specialists and this could help them in increasing their confidence towards the job given.
While development refer to the method used to improve employees’ performance by teaching them general knowledge and changing their attitudes. The goal of development is more focus on long-term, they are trying to help employees grow in getting higher position in the future. When any managerial position is available in the company, there could be a qualified person from current employees to take over the position. This could ensure a smooth transition and operational efficiency in the company.
Case Development
(I) Background of Petronas
The company that we choose is PETRONAS. PETRONAS was founded at 17 August 1974, which is 100% owned by Malaysia government. PETRONAS is a company that is the largest corporation in the world, which invest the total gas and oil resources and consign responsibility of adding value and developing to the resources.
There are some important achievements of PETRONAS. At 1975, PETRONAS is the first company which exports crude oil. At 1976, PETRONAS had made a conclusion that is sharing production contract with Shell and Esso. PETRONAS had incorporated with Carigali and Asean Bintulu Fertilizer at 1978 and 1980. At 1981, the first gas station of PETRONAS had business in Taman Tun Dr Ismail, Kuala Lumpur.
During 1984, HQ had moved to Komplets Dayabumi. Petronas had started the first export of fertilizer and liquefied at 1985. Next, PETRONAS had the first oversea operation in Myanmar at 1990. At 1994, the first subsidiary of PETRONAS, which is PETRONAS Dagangan Bhd, was listed on KLSE. HQ had moved to Twin Towers at 1997.
Due to PETRONAS’ incorporation, it has been grow to a unify international gas and oil company. Its business was interested in 35 foreign countries. PETRONAS group included 103 owned subsidiaries, 57 joint companies, and 19 outfits at the end of March 2005. Based on these companies, PETRONAS group has been make that involved in many activities of gas and oil. For example, upstream exploration, allocation products of petroleum, makes natural gas and etc.
PETRONAS is a headquarter at Kuala Lumpur, Malaysia, which was started on 42nd National Day of Malaysia, at 31 August 1998.
PETRONAS’s employees are the most important asset and key to achieve success in realising the aspiration to be a leading multinational oil and gas corporation. PETRONAS Company today’s achievements and in the future depends largely on the collective efforts and commitment of their employees.
With this in mind, PETRONAS Company place top priority on human capital training and development. These statements define PETRONAS as an organization, leading their corporate activities and policies, setting the course for the future.
(II) Human Resource Practices of Petronas
At PETRONAS, employees are never lack of development, advancement, or progressive movement. The potency of all the employees is giving support and encouragement as during the period of training and development. At the same time, competencies and skill technique are practised for each PETRONAS’s employee to achieve his/her full ability and prospective.
Stepping into the employment of PETRONAS, all the employees will directly commence on the journey of training development experience. PETRONAS insiders are confidential not only to training and development activities but also giving advantage from the daily casual counselling and instructing, close to the job training, job enrichment, job rotation and self nurturing amongst others during the official lecture with a setting of strategy inwardly as well as outwardly.
In order to give a hand for insiders in enhancing their knowledge and ability, there is an intended outstanding formal program in training and development. That is developing in-house trainers.
Here, the PETRONAS Company subordinates’ training requirements are time after time recognize by the superiors. In order to offer effective and important training, PETRONAS has urbanized in excess of 30 in-house trainers. In-house training is defined as any training that is held in company premises in order to educate, develop or expand employees’ technique and skills. This involves all technical and soft skills courses that serve for this purpose. These instructors are well capable of to afford training and development programs in the following areas.
1) Permit to Work Training
It is a more recognized by PETRONAS structure stating exactly what work is to be complete and when, and which parts of the work are secure. Assessing the work and test out safety at each of the stage in working environment is a responsible for a employee to carry out. Employees undertaking the job sign the permit are to show that they realize the risks involved and what safety measures are necessary.
Besides that, employers of PETRONAS must be awake of the policy concerning more risky work activities, and guarantee that they understand their responsibility, duties and obligations in law. The course of industrial safety training will enable managers to assess the requirements of a particular job or task, and ensure that permit to work documentation is completed correctly and that employees undertaking dangerous activities are capable to do in securely way.
2) Confined Space & Authorised Gas Tester
PETRONAS is essential in examination for and ensuring working surroundings are out of harm’s in some exacting way. An authorization of managing about a confined space during the muggy work for either outer spaces or indoor workplace should give precedence first. By this way, it will make possible for the employees or worker to discover and understand appropriately all the instruction that recognition from the gas disclosure.
The course of Confined Space & Authorised Gas Tester content work area classification and its risk and safety factors, Chemistry of fire, toxic, and flammable atmosphere, type of gas detectors for inert atmosphere, gas testing procedures, gas testing practical, type of gas detectors for inert atmosphere and the construction of gas detectors.
3) Processed Safety Workshop
This course provides an impression of course of action about the safety engineering essentials for dealing out with hydrocarbon facilities, which importance on the upstream oil & gas sector such as PETRONAS. Process Safety Management is focusing on this course for the engineering/design aspects. Frequent reference will be made to historical happening and recurring problem areas. Oil and gas processing will be reviewed with some techniques for analyzing and justifying process of safety hazards. A key aim of this course is to accomplish a deliberate advance to Process Safety Management with addition of the concepts enclosed. Exercises and group projects will be develop throughout the course to highlight the key of the learning points.
4) First Aid Training
PETRONAS place an emergency treatment administered to an injured or sick person before professional medical care is available during their working progress.
5) Advance First Responder Training
From this training, first responders are the first people on scene during an emergency. Police, fire fighters, s, and even school personnel are more likely to be the first responders during an emergency than others. PETRONAS offer training courses and independent study programs to prepare first responders for emergencies. This training can be found at both the consciousness level, which offers a more detailed and job-specific level of education on the given topic. This training can be found on several different topics, including use of hazardous materials and management.
Besides, technical training is one of the training that Petronas used. The purpose of technical training is to teach employee about the detailed of skills to fulfill the daily work task. Technical training can be referring in any setting, such as vocational, consideration, and information technology.
The part of Petronas’ success is qualified to skill and train personnel to corporation employs. Petronas has used a practical role in human resource development to ensure the company has enough professionals supply for the long-term requirements, since it started more than 30 years.
In 1983, Petronas has set up technical traning to train technicians and operators to expand manufacturing facilities. Besides, Petronas had set up Management Training Centre for training and development. At the same year, Petronas had created Institut Latihan Perindustrian Petroleum (ILPP), also known as Institut Teknologi Petroleum Petronas (INSTEP), to focus on the problems such as lack of trained machinist and technicians.
Institut Teknologi Petroleum Petronas, INSTEP, had provided technical training to employees. For example, job profiling, learning analysis, and so on. INSTEP had 3 amphitheatres and 42 learning rooms for different types of training activities. Besides, Petronas Technical Training Sdn. Bhd. (PTTSB), had set up a technical training with UMW Oil and Gas Corporation Sdn. Bhd. on 28 June 2012 at Kuala Lumpur. Based on this technical training, it will focus on Malaysian who lack in gas, drilling, and oil industry.
Another theory of training and development is education grant that has offered by PETRONAS Company as they always show their appreciation and encouraging on their employees who are willing to go the further mile in the mission of expanding their knowledge in fields relevant to their job or future projects/assignments. PETRONAS Company share the education costs for those who are pursuing the following qualifications such as diploma, degree, master degree or Ph. D as an evidence of commitment to support PETRONAS’s employees in pursuing higher education.
There are types of education grants for qualified employees who wish to continue their education at a higher institution of learning. Employees” education grants may be issued by PETRONAS towards some particular course of study that related to their interest or job position in the company. In majority, PETRONAS pay all the education grants directly to the institutes where the employees enrolled. Other forms of employees education grants, it can be used with a number of different consent of degree programs. PETRONAS has the intention in developing a skilled workforce and able to hire a talented employees.
(III) Advantages
There are advantages in training and development. The advantages of in-house training include training cost saving. The cost per representative will lesser when compared to the same number of employee sending to public training courses. Secondly is PETRONAS Company will get more convenience because this training fit around the working schedule of the staff and at a location they go frequently. Thirdly it is more specific due to its course run generally for a single client and allocates the training to focus on specific items that are causing issues. Fourthly it’s also make some saving in travel cost, those PETRONAS’s trainee no need to travel any further than their offices and incur extra costs like transport fees, driver and so on. Fifthly is team building, all the trainee will occupy in a room full of delegates from different departments which they be able to encourage greater team work, responsive and understanding of each other’s role.
There are some advantages of technical training too. Firstly, technical training may causes employee’s career advancement. It is because when the employers distinguish that the employees are conscientious in learning, the employers will give chances to employees in the technical areas, such as technical responsibility, project leadership, management and etc. In this case, the salary of the employees will be increase.
Furthermore, technical training will causes employees lead to personal growth. It is because employees will learn something that is new in the short range through technical training. Besides, technical training may help new employees, who are searching for jobs, in the positions of career- oriented, and refresh the skills and knowledge of older employees so that they can keep up in their working environment and build up a better relationships between employers and employees.
Education grants give a lot of advantages to the employee in PETRONAS’s company. However, this practice also exist its merit and demerit. Education grants help them to pay their tuition fees, sponsor and assistance from their company so that they can further their education without being anxious about the monetary matters. Besides that, there is also none competitive, everyone who have the attentive and ability or found to be a worthy candidate may deserve the grants from either an industry, government or others sponsor. This education grants may perhaps help individual of PETRONAS’s employees update their skill and training to a better grade and might help them towards a higher level.
(IV) Disadvantages
There are disadvantages in training and development too. The disadvantages of in-house training include extra administration burden that PETRONAS need to make sure there have suitable training room, equipment, trainer parking to get the delegates to the training centre. Besides that, some of the trainee may not taken it as seriously -as they might attend just to have a break from their job or don’t turn up when the course is running on another day. There are no networking opportunities also during this training, employees are not allow to have networking and learning from another company. In addition, this will place some pressure to PETRONAS’s employees, if they are offsite training then they cannot be contacted to class however if they are onsite they can be pulled out of a classroom if needed.
However, there are some disadvantages in technical training too. Cost is one of the disadvantages. Cost will increase the expenses of the company. It is because when the company sends the employees for training, the company has to pay for employees to invite the trainer. A good trainer may be expensive and causes over budget. Besides, the disadvantage of technical training is time requirements. The company has to spend a plenty of time for training employees but the company do not have much time. If the company offers the time that does not enough for training, it may causes employees do not know everything that they have to learn. The trainer will also have to rush due to the time is not enough and causes the trainer goes through some topic that is important and ignore some topic that employees have to learn too.
Nevertheless, education grant has disadvantages as well. Grants have a narrow down by restricting the number of employees to apply with the scale of job fitting. Employees who obtaining the education grants typically require work harder and plenty of examine and strategic to fulfil individual’s requirement. Moreover, it’s also increase an organization’s expenditure since particular activities must be included in some of the project. In addition, revolution of technology nowadays up growth. Legislator and other charge of education or training need more funds to re-establish the changes.
(V) Critique
PETRONAS as an organization, directing their corporate activities and strategic, setting their practices of training and development for the future. PETRONAS has make use of technical training, in-house training and education grants as their practices for the employees’ training and development. Comparing with the similar industry as thought SHELL Global or ESSO, they have applied some professional training such as public relations and media programme for their employees according to their working experience. It’s better attending a module with representative from other companies. This will allow networking interaction more and learning from one another.
Besides, training and development bring a lot of advantages to Petronas Company. Petronas had used training and development appropriately. For example, Petronas used technical training causes employee’s career advancement and causes employees lead to personal growth. In this case, Petronas will be more progress through training and development. Thus, training and development may causes the company become more effectiveness although it will bring some disadvantages to the company.
Recommendation
PETRONAS need to find alternative practices of training and development for their employees. To determining a long term profitability and well management of a company, the quality of employees are the major issues in a company throughout some training and education. It is a good guiding principle to devote an excellent employee, which can improve the company’s productivity consequently. A suggestion that is PETRONAS may possibly propose a sustainability organization & leadership techniques with the institutes which include Universiti Teknologi PETRONAS (UTP), Institut Teknologi Petroleum PETRONAS (INSTEP) and PETRONAS Management Training. It should also invite some profession institutor from other country to conduct company employees. By this way, hope that it could benefits PETRONAS to achieve some valuable employees and able to increase company’s employee effectiveness and efficiency.
In addition, Petronas must update the program in technical training. For example, Petronas may combine some course which is energizer to employees. Petronas may able to introduce some new computer software, technological systems, programs and etc to increase the current skill of employees. In this case, employees may get more new knowledge and skills so that it can use in their current jobs. Petronas can ensure that the employees are working in a safety environment by training well their employees. Petronas may also start to retraining new employees on new systems. It is because Petronas may avoid change conflict from employees. For example, Shell Global ensure that their engineers are trained well and able to work in safety environment by giving them training in drilling, operating, maintain, and designing.
Conclusion
PETRONAS is a company that categorized under the oligopoly type of market structures. PETRONAS is one of the government’s asset, it is also one of the company that provides petroleum and gas for the country. PETRONAS has been growing nationwide and worldwide since previous years. PETRONAS’s products also being exported and used in other countries such as Egypt in Africa. By exporting the products, it is making a lot of profits and as such the country benefits a lot from it. Production of petroleum and gas are not the only thing that it care for but also collaborate with other markets such as education and provide sponsorship loans to those students which need them. Various institutions had been established by PETRONAS as their main objective is to enrich the nation with quality education.