IDENTIFYING POTENTIAL ORGANIZATION STRENGTH AT PT LAUT BIRU USING ORGANIZATIONAL HEALTH INDEX SURVEY RESULTS

• Main Author: ADIB (NIM 29115180), AKHMAD
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/20894
• Institution: Institut Teknologi Bandung

For 15 years operating in Indonesia, PT LAUT BIRU has been an important partner <br /> <br /> for Government of Indonesia in achieving crude oil production target, as always being the <br /> <br /> top 6 of big oil companies in Indonesia. However it does not mean that PT LAUT BIRU <br /> <br /> will always able to perform well in the future. Even in the last three years, PT LAUT <br /> <br /> BIRU could only achieve all of the three major targets once, it was in 2016. The three <br /> <br /> major targets are accident rate, oil production, and financial performance. <br /> <br /> Mc Kinsey & Company figured out that an organization would be able to sustain for <br /> <br /> a long time if the organization not only focus on its performance, but also the health of <br /> <br /> the organization. Mc Kinsey & Company introduced a tool to assess organizational health <br /> <br /> called Organizational Health Index (OHI). Organizational Health Index (OHI) consists of <br /> <br /> nine elements; they are direction, leadership, culture and climate, accountability, <br /> <br /> coordination and control, capability, motivation, external orientation, innovation and <br /> <br /> learning. These nine elements are broken down into 37 management practices, a survey is <br /> <br /> developed with questionnaire based on theses 37 management practices. There are 153 <br /> <br /> employees participated in this Organizational Health Index (OHI) survey, covering <br /> <br /> executive to low level job position, various divisions, and various service years. Analysis <br /> <br /> is made based on this respondent profiles. <br /> <br /> The overall result of Organizational Health Index (OHI) survey at PT LAUT BIRU <br /> <br /> shows that the company does not fulfill requirements as a sustainable company since none <br /> <br /> of the 37 management practices on the top quartile, although none of the 37 management <br /> <br /> practices are in the bottom quartile. As a follow up, there are 6 management practices in <br /> <br /> Knowledge Core archetype to be improved. The management practices are talent <br /> <br /> acquisitions, role clarity, consequence management, performance contract, reward and <br /> <br /> recognition, and people performance review. This research is also focus on the lowest <br /> <br /> management practice, it is Shared Vision, although this management practice is not <br /> <br /> within the Knowledge Core archetype. Then continue with identifying existing programs vi <br /> <br /> related to these 7 management practices, evaluating the existing condition, identifying <br /> <br /> expected condition, and then come up with recommendations to ensure these programs <br /> <br /> will be able to improve PT LAUT BIRU Organizational Health. <br /> <br /> As one of significant finding from the Organizational Health Index (OHI) survey <br /> <br /> result, it figured out that as a consequence of shared vision as the lowest management <br /> <br /> practice score, there is no reliable alignment between business strategy and human <br /> <br /> resource strategy. Therefore by closing gap of shared vision, it could also resolve this <br /> <br /> misalignment strategy issue. Revision of existing Human Resource strategy by aligning it <br /> <br /> with Business Strategy will support company in achieving company targets.