Human Resource Employment Opportunities Within Lukoil Company Term Paper

Pages: 7 (2005 words)  ·  Style: MLA  ·  Bibliography Sources: ≈ 25  ·  File: .docx  ·  Topic: Business

Human Resource

Employment opportunities within Lukoil Company

The history of the Lukoil Company is quite a domain of actuality, when having in mind its short period of existence, in comparison with other companies of the same dimensions which exist on the worldly stage: therefore, on the 25th of November 1991 the state company LangepasUraiKogalymneft was brought into being, which included the "Langepasneftegas, Uraineftegas, Kogalymneftegas" production associations and a few capacities of oil processing. The acronym "Luk" is the combination of the first letters of the LangepasUraiKogalymneft Company. Thus, the Lukoil Company was brought into being on the 22nd of April 1993, when it was registered.

Even though it had not had the time to create a long-term history, Lukoil had a rapid development. In 1994 it became a stock company and in 1995 it incorporated several companies which activated in the oil sector as well. Therefore, the number of the Lukoil refineries has increased, just as the quantity of extracted and processed oil. During this period a major change occurred within the company, contributing to its success: Atlantic Richfield Company became one of the main stockholders of Lukoil.

Following its proper way of success, in 1996 Lukoil became a member of a partnership for moving the area of ail extraction in Azerbaijan and Kazakhstan. In the same year the means for oil transportation are increased as well, as Lukoil brought a few ships.Buy full Download Microsoft Word File paper
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Term Paper on Human Resource Employment Opportunities Within Lukoil Company Assignment

Due to its success, a few years later the leaders of the company decided to extend its activity outside the Russian borders: therefore, in 1998 stock packages at the "Petrotel" "Neftochim-Burgas" and Odessa Refineries in Romania, Bulgaria and Ukraine were brought. In 2000 the Russian company conquered new territories as well; it incorporated "Getty Petroleum marketing Inc.' An oil distribution company in the United States which had more than 1260 distribution points in the North-East of the country. This incorporation was followed by another one in 2001, consisting in the acquisition of 85.36% from the stock package of the NORSI Oil Company in Russia. The state is also involved in this prolific business named Lukoil and it owns 7.6% of the stocks of the company, the rest being in the possession of some foreign firms. "The main production region for LUKOIL Group is Western Siberia. The Company is developing a new production base in Timan-Pechora where its crude oil output has increased by more than 1.6 times in 5 years. LUKOIL is carrying out international exploration and production projects in Kazakhstan, Egypt, Azerbaijan, Uzbekistan, Saudi Arabia, Iran, Columbia, Venezuela and Iraq. In addition. Lukoil's distribution channels are developed in the United States, Poland, Bulgaria, Romania, Turkey, the Baltic States, the Czech Republic, Ukraine, Byelorussia, the Moldavian Republic, Azerbaijan, Kazakhstan, and Kirchistan. In addition, Lukoil presently owns about 4076 gas stations, from which 1691 of them are situated in Russia and 2385 in Europe and Asia.

Thus it might be said that Lukoil is the gas company with the greatest international diversification and economic power in the world. Having this in mind, the company proposes itself "to support long-term economic growth, social stability, prosperity and progress in the regions where we operate, as well as caring for the environment and ensuring sustainable use of natural resources."

In what the internal structure of the company is concerned, it must be said that the personnel policy is very well structured. Therefore, Lukoil employees may take advantage from a lot of benefits:



Exxon unified system of corporate pension coverage the best insurance protection provided in Russia

Tax-deferred Retirement Savings with Employer Contribution" they only offer optional additional life insurance had problems with the employees on the subject of retirement and medical insurance the company does not specify to provide benefits of this kind

As it can be inferred from above, "The Company's employees form the basis of Lukoil's potential." Therefore, Lukoil's Personnel management policy aims to "provide incentives for each employee to achieve objectives stipulated by the Company's strategy; to define criteria for the evaluation of the results and to reward and provide incentives for employees." In these perspectives, as it can be inferred from above, the social policy of the company is very well defined as well. Thus, many leisure activities are organized by the company, to which the employees are allowed to participate together with their families; in addition, the company provides vouchers and discounts to spa treatments for their employees. In addition, Lukoil "systematically promotes healthy lifestyles and preventative medicine among its employees in the corporate media." In addition, women-employees which are mothers as well are offered additional payments and all women who work within the Russian company are offered an additionally paid day off each month. Other benefits for the employers consist in "one-time grant on the birth of a child; monthly allowance to employees on childcare; payments to lower-income families with three or more minor children and to children whose parents have died or become handicapped in on-the-job accidents, to compensate for the costs of keeping children in pre-school institutions and recreation camps and partial refunds of the costs of taking care of the children with problems of Lukoil employees."

In what the corporate pensions are concerned, they have been introduced within the Lukoil social policy in 2004. At the present time almost 143.000 employees benefit from it. Practically, the aim of this measurement is to stimulate each employer's own contribution to its future. Thus, 2% of the daily amount of money the company owns to each of its employers after a day of work goes to a private account provided for each employer, which will become valid at the moment of the retirement of the person, when Lukoil company will double the amount of money its employer would succeed to save.

As it has been mentioned above as well, the insurance system provided by the company is very well organized too. Among other purposes of the company in regard to its employees, an important one consists in providing them with a range of high-quality health care and services. In addition, Lukoil has engaged itself to respect all the norms included in the Corporate Standard of Health Protection.

Name: current position and possible salary Anatoly Moskalenko

Head of the Main Division of Human Resources

50.000 -$100.000 per year

Previous position

Human Resources Recruiter

40.000-$50.000 per year

Possible future position

President of the Management Committee

100.000-$150.000 per year

In many of the countries where it is present, Lukoil usually recruits its personnel with the help of the recruitment companies. Usually, the company is seeking for persons with previous experience in the domain, but there have also been met cases in which Lukoil has hired young people, students, sometimes even offering part-time positions. Therefore, the policy of the company in this perspective seems to be opened and this is another clue that the company emphasizes the importance of the quality of the people. On the other hand, this might be put on the fact that working in the oil domain might prove to be difficult in certain perspectives and, therefore, it might be possible as well for the brand to choose to form its people.

Another strategy that might be used by Lukoil as well consists in "stealing" good employees from its competitors. There is obviously a certain degree of risk in this kind of action; first of all because the Russian brand should come with a better offer than the one the desired employer currently has and, secondly it must be taken into consideration that the person in question might come with some bad habits from the former workplace. For example, the rhythm of working in the company for which this person works might not be the same as the one Lukoil requests.

Just as in the case of the "stolen employees," all the persons integrated within the company's structures have to be motivated through pay-for-performance. In this way, the company will not risk loosing its people and will attract new workforce. In the case of Lukoil, these conditions are completely fulfilled; as a big company, it allows itself to offer well-paid salaries; on the other hand, another important consideration in this perspective that should be mentioned here is the respect and the fair chances the Lukoil employees are provided. Therefore, the promotion chances are very high for the young and well-trained personnel and this denotes a high degree of respect, because each of them has the possibility to prove its qualities. In addition, they have all the reasons to use their potential resources to help the company to achieve other important gains.

What should also be taken into consideration in the case of Lukoil, as mainly in the case of many internationally-developed countries, is the potential perspective of a top-leader employer to be promoted at the international level. And if this purpose is to be achieved, many other unexpected chances might occur for the person who has succeeded such a performance. In addition, it is for sure that a position of International Marketing Manager,… [END OF PREVIEW] . . . READ MORE

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APA Style

Human Resource Employment Opportunities Within Lukoil Company.  (2006, December 14).  Retrieved February 22, 2020, from

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"Human Resource Employment Opportunities Within Lukoil Company."  December 14, 2006.  Accessed February 22, 2020.