International Human Resource Management Issues in Schlumberger Ltd
Question
Task: Critically evaluate an International Human Resource Management issue in Schlumberger (Recruitment and selection). Identify the main strategic and international HRM challenges and possible solutions facing your Schlumberger. The following broad headings are offered as possible headings for structuring the final essay-style assignment:
• Introduction
• Review of the relevant literature
• Overview and History of the MNC
• Outline of the International HRM issue
• Analysis of the International HRM issue or problem
• Conclusions and Recommendations
Within your analysis, you must provide a number of relevant, organisation-based examples, to support theoretical arguments. The assignment must have a wide and visible application to industry, through the application of appropriate organisational examples. Failure to apply relevant organisational examples could result in a failure within the module assessment. Students should be aware that this assignment requires the integration of the major themes of the module. Student skills such as researching materials, analysing, synthesising and critically evaluating the application of theory in practice will be assessed. A superior assignment will demonstrate relevant research skills, analysis and critical evaluation rather than just description.
Answer
Introduction
This essay is based on International Human Resource Management issues in Schlumberger. Schlumberger Ltd (Schlumberger) is an oil and natural gas development company that specializes in permeability and porosity, development, extraction, and finishing. From development to producing, as well as coordinated subsea pipelines for petroleum recovering, the firm provides these services to that same profession. Different types of International Human Resource Management issues such as recruitment issues and different viewpoint issues of Schlumberger are analyzed in this essay. International human resource management and human resource management are practically and conceptually comparable. Acquisition, employment, improvement in process, pay, coaching, labour rights, succession planning, and different functions are nearly identical to those of HRM. International HRM is fundamentally connected to that same strategy formulation process. Furthermore, a proper review of relevant literature and an overview of Schlumberger HRM policies and procedures are also mentioned in this essay. Moreover, the outline of the international HRM issuers of Schlumberger and critical evaluation of the HRM issues of Schlumberger is also addressed in this essay. As little more than a result, international management may be defined as such a series of capabilities entangled in employment, career management, reimbursement, preparation, and entanglements with coworkers appointed to oversee a company's transactions regularly to secure this same business's international trade and approaches succeed.
Review of the relevant literature
MNCs aiming to standardize their original procedures in the host nation face several challenges, including political-legal, employment market, cultural differences, communication obstacles, and employment practices. Human Resource Management has been considered as one of the important aspects of the organization which helps in better functionality. Recruitment, selection, performance management, pay, development, employment law, career progression, and other functions are nearly identical to those of human resource management. As per the views of Zhu (2019), international Human resource management is significantly connected with the strategy of organizational business outcomes. Recruitment and selection, development and training, performance assessment, pay, and labour relations are the five operational areas of international human resource management. International HRM is the method of getting, allocating, and using human resources in a global organization to achieve certain goals. According to the Third Country nation (TCN), due to the global environment, international HRM involves the interplay of three main components: Human resource operations, workforce kinds, and countries of commerce. On the contrary, Farndaleet al. (2017), the cultural context in which expatriates work is a critical component in determining their success.
Apart from a few leadership and management skills, immigrants require intercultural skills to function in a new environment. Intercultural communication, adaptability, negotiation, language proficiency, a positive outlook, emotional stability, and strength of character are all desired attributes, according to the report. According to Likhitkar and Verma (2017), although intercultural communication is acknowledged as crucial in practice, it is difficult to define exactly what it entails, much alone judging a candidate's appropriateness in this area. Issues such as these must be considered. Before the contracting authority will grant the appropriate work permit and entrance visa for the requested PCN or TCN, multinational enterprises must typically establish that an HCN is not available (Jain et al. 2017). In some circumstances, a multinational may seek to employ an expatriate and may have chosen a candidate for the overseas assignment, only to have the transfer denied by the ruling government. Many industrialized nations are revising their laws to make it easier for people to migrate for work, which would make financial transactions simpler, for example, the European Union Social Charter permits inhabitants of member countries to freely relocate throughout the EU. As opined by Agarwal and Al Qouyatahi (2018), it's critical for HR employees to stay current on relevant legal changes in the countries where the MNE operates. The capacity to communicate in the native language is frequently connected to cross-cultural competence. However, in terms of its relevance as a determinant in the selection choice, we have opted to emphasize language as situation-dependent. On the other hand, Sareen (2018), stated that, although some would say that knowing the host country's language is a vital part of the performance of individuals, regardless of middle management level, language abilities may be seen as critical for some international roles but less so for others.
It has been evident to Schlumberger that they generally follow IHRM policy in a very specific manner that can allow having a smooth and efficient IHRM policy on a global basis. Moreover, the necessity of a better IHRM policy has been considered to be fruitful for allowing the fruitful business operation on a global platform that allows the proper better leadership and business outcomes. The lengthy dedication to national and cultural diversity generates a global in view but local in practise manner of working that pervades every tier of the organisation, including administration. As per the views of Alaraqi (2017), executives from Europe, North America, Asia, Australia, North Africa, and the Middle East make up our executive leadership team. For decades, they have recognised that our capacity to recruit, develop, inspire, and retain a highly skilled and diverse team has been fundamental to success. They keep their competitive advantage by fostering a range of viewpoints that encourage constructive creativity and innovation. Professionals must treat each other with professionalism, mutual respect, trust, and personal dignity. Employees must also treat customers, contractors, and anyone involved in our operations, including local community members, with respect. On the contrary, Singh (2019) stated that, harassment based on race, colour, gender, age, sexual preference, gender identification, ethnicity, handicap, religion, marital status, or union membership is not tolerated at Schlumberger. Their actions, choices, and employee progress are all guided by meritocracy. While their workforce's ability to communicate in a variety of languages is a strategic advantage, English is the preferred language for internal management communications. Business management issues are growing increasingly complicated at the same time as globalisation is accelerating. According to Mira et al. (2019), in both local and international markets, the exceptional amount of foreign competitiveness is requiring enterprises to establish and maintain a competitive advantage. Identifying and cultivating competent human resource management in the face of intense competition on both the international and regional levels is high on top management's priority list. It has been found that Schlumberger HR has been facing issues with the Field Engineers working in India and with different viewpoints and differences and lack of motivation. This has been considered as a major issue with the workers working in other countries.
Overview and History of the MNC
Schlumberger was founded on the premise that if an electrostatic repulsion could well be produced under the interface, applying this knowledge at the substratum could be projected to show subterranean substructure. In 1912, using extremely primitive technology, the very first depiction of coordinate plane slopes was obtained after two decades of clinical and preclinical research (Slb, 2021). The results validated the approach while showing subterranean characteristics including bed borders and genesis layer dip directions. This was critical since this approach gave additional data which may be valuable in detecting geological structures that produce catches for hydrocarbons like oil and gas. Schlumberger Company is the world's biggest offshore solutions provider, as the business operates in more than 80 countries. Because of its personnel attention and HR procedures, the firm is included among Fortune's Best 500 consulting firms (Slb, 2021). Gender diversity, equity and diversity employment, partnerships also with world's leading colleges, families and added and the solution counselling, and therefore no Glass Ceiling are just a couple of minor firm's greatest HR practises. According to Farndale et al. (2017), Parent country nation (PCN), many field engineers from Schlumberger China noted that it was a difficult job since they just seem to get low on their knees and muddy themselves to get things operating into a good installation. On countless occasions, internally Schlumberger workers have reported a problem with the company, namely that they have been summoned back to the field premises in the middle of their vacation to get back to work in a difficult circumstance.
Fields Technicians are well rewarded, with competitive salaries and benefits. Following each permanent assignment, every FEs are given a deadline for paid vacation with their families. Employees have the right to employ various times at work. There is indeed a rotations programme in place to provide Field Engineers (FEs) hands-on exposure with various units. Global exposure and development in all modules spanning technical information, locations, and sectors succeeded in turning each employee into something like a specialist and then a professional. Schlumberger employs management by objectives (MBO) and performance evaluation. Geotechnical Engineers might discuss setting personal goals with their Field Sales Manager. As illustrated by Cooke et al. (2020), field Service Management is a vital part of organising required training for both the FE. At the end of the assessment, the engineer meets with the management to discuss the goals both social and professional which have been met and therefore were not. The objectives are expressed in terms of how well the technician performs on the equipment, handling multiple, and collaborating as part of a group. The employees will receive feedback and continuous improvement from the management. Schlumberger's global HR procedures are geared around encouraging and safeguarding a few core values and morals, such as equality, impartiality, safety training, and the right approach among colleagues. This is demonstrated here by outlining most of the compensation and benefits procedures. According to Harney and Collings (2021), legal obligations, diversity, and employee motivation are just a few of the problems that human resources managers encounter. When they add the word "international" to the equation, as in the case of a worldwide corporation, the problems multiply. HR managers must manage strategic planning, systems, and procedures across national boundaries comprehensively and transparently.
Outline of the International HRM issue
Employment laws differ from one country to the next. This implies that your HR team has to be familiar with the laws of each nation in which you do business. As per the views of Cooke et al.(2019), while certain nations, such as member countries of the European Union, operate within a comparable legislative structure, almost all have their own international Human resources intricacies to cope with. On the contrary, Ererdi et al.(2020) stated that It has been evident that Schlumberger has been facing many issues with their international recruitment and employment that has been hampering their motivation and creating a wall of difference among the team members and the HR of the organisation.
In discussions with Field Engineers, it was discovered that the great majority of recruits join for the financial benefits and foreign travel opportunities; nevertheless, money can only motivate to a limited extent, and once that limit is reached, employee morale plummets and workers grow dissatisfied. HR finds it challenging to promote job satisfaction. Employees feel perplexed when there is no focus structure in place, according to Reiche et al.(2019). The emergence of career depression in this area of the business is the fastest, leading to impulsive onsite behaviour and unwarranted aggressiveness. Workers, on the other hand, have a negative attitude about work, their enthusiasm levels plunge, and they begin to regard work as if it were an obligatory chore to coexist, according to Renard et al. (2021). HR is an important part of every company's internal operations, as well as its development and growth. To drive a firm forward, it is vital to maintain strong motivation levels at work. Depending on the organization, the HR department faces a number of challenges during the process. A notable example is the oil extract and processing industry. As suggested by Vrontis et al. (2021), the many HR policies of an oil exploration and production firm are outlined, as well as their implementation. Schlumberger Limited is the largest exploration and production firm in the world, having operations in over 80 countries. The company is listed among Fortune's Best 500 firms to work for for its employee focus and Human resources practices (Jain et al. 2017). As supported by Kanagavalli et al.(2019), Gender equality, an equity and diversity employer, partnerships with the world's leading schools, family and added and the solution assistance, and no 'Gender Disparity' are just a few of the company's current best Human resource management practices. It is hard for any HR approach to win universal acceptance between all employees. However, Schlumberger's implementation of its processes is remarkable in and of itself (Littlewood and Khanmaintain, 2018). Schlumberger has recovered effectively from the oil sector crisis in the early 1990s. HR practises cannot be blamed solely for the company's success; yet, people are the most valuable assets in this sector, and Schlumberger has done a good job of keeping its employees happy. In the long term, its policies of the total workforce, fairness, diversification, democracy, and employee care have aided it.
Maintaining a healthy working atmosphere is an important aspect of international human resource management. As stated by Ranjan and Afroz, (2019), When they have a group of employees with varying cultural backgrounds and work patterns, they may run into some challenges at work. However, if users put in their best effort to establish positive team chemistry, then they should have no problems. As a result, prevention and the development of healthy workplace culture are critical. There is a hard task including both trainees and productive professionals, with as much as 6 to 8 months of retraining required to reach this very same level of ability as those in the market (Slb, 2021). Schlumberger Indian employee TCN is currently addressing this issue. One functional challenge confronting the associated corporation is the issue of differing viewpoints commonly held of Schlumberger's organisational personnel.
Analysis of the International HRM issue or problem
Schlumberger has done a brilliant job in response to differences. Its varied personnel is mainly responsible for the degree of satisfaction it receives in every country where it functions. When it comes to adapting to social mores, the firm is quite adaptable. Teaching "There is still a hard task with both newcomers and competent professionals," including an SLB-India HR manager, "with about as much as eight to 10 hours training just to get to the equal level of qualification as the professionals in the sector currently." "Schlumberger offers educational facilities across the universe that provide practical training, professional capacity-building, continuing marketing strategy, effective planning knowledge, independent workshops, and instructor projects with practical experience practices." As stated by Mohammed and Shaari (2020), An inspection is a review of an organization's strengths, generally involving a review of the participant's present and previous work engagement. In general, the evaluation plan is carried out for two purposes. It is the administrative reason, which entails deciding compensation, placement, and career moves. The second step entails determining an individual's developmental requirements. Participants believed the assessment method is excessively strict, with criticism appearing to be utilised as a pressuring strategy, thus according to Schlumberger.
Country, industry comparison with mentioning theory and model related to the correspondent industry
Schlumberger has an issue with the recruiting and selection section. In general, poor recruiting and selection can have a negative impact on a company's staff turnover. In further detail, having an open job costs firm money in various ways, notably reduced workdays, the annoyance of constant recertification, and the attempt to walk forward with corporate projects. Bad hiring may cause good employees to run the organisation, exacerbating the retention dilemma. There are some other issues including the lack of money and improper morale can be considered as major challenges for IHRM during the recruitment and selection process. Compared to Halliburton which is a USA based worlds’ second-largest company have also faded internal HRM issues mandatory furloughs at headquarters. Associates at Halliburton's worldwide head office in Houston have been notified they would be grounded to helping the firm deal with the changing dynamics of something like the oil and gas sector. Around 3,500 personnel are expected to be affected by the change (Jacobs, 2020). This is considered as one of the effective HRM issues of Halliburton and compared to Schlumberger, they have selection and recruiting issues but Halliburton have furloughs issue. In order to remove the issues of the recruitment and selection of the IHRM, it has been evident that the inclusion of the Five Ps Model can be considered to be significant in this scenario. Schlumberger uses The Warwick Model for the recruitment process to resolve their issues and also helps in the knowledge of the political and cultural issues during the recruitment and providing proper support to the employees.According to compare within industry it has been observed that Unilever is one of the leading FMCG and retail organisation in the UK. This organisation also faced large number of recruitment and selection issue. In details, Unilever has claimed that taking over human recruiters with or without an artificial intelligence system saves significant amounts of money each year, despite concerns of a popular backlash against with the development of pattern recognition. According to a poll issued on Friday by the Royal Society of Arts, 60 percent of the public opposes the use of automated decision-making in both recruiting and criminology (Booth, 2019). So the thing is that, main issue is maximum number of people were against this autimated selection process. So not only oil and gas industry but also, retail industries also faced hindrences about HRM selection and recruiting process.
HR, on the other hand, feels that the process of assessment may help workers avoid irreversible missteps that become unjustifiable in their important jobs. HR has the main responsibility of providing the best motivational practices to the employees of organizations and especially to oil and extraction workers. As there are higher chances of career fall and increased cases of anxiety among the workers which hampers the growth of the employees and HRM has a significant role to play. Moreover, in the IHRM it has been considered to be one of the biggest things that can be analyzed in accordance with the relevancy to host country and other factors. As mentioned by Harikaran and Thevanes (2018)The study's big problems include distinctions in local markets, legal, financial, and differences in culture, style of management, remuneration system management, and judgement process, while the authors of the study major challenges include the global staffing process, selection, training and development procedures, and different cultures. The most significant people in the business are human resource managers. They are essential in narrowing the gap between company expectations and employee goals in the workplace. Economic liberalization, privatization, and internationalization have had little impact on India's industry. The industries have been subjected to international competition because they have access to resources, labour, and innovation. Industries require competent human resource personnel in such a competitive internationally climate. They devise strategies to deal with issues posed by the new surroundings, taking into account factors like as goal, staffing, and management structure. HR managers, on the other hand, must exhibit their strategic abilities to demonstrate their sector proficiency in today's evolving global market. The concept of 'Global HRM' is founded on factors such as employee engagement, different cultures, organization culture, and purpose (Jain et al. 2017). The international human resource manager's functions as a strategic business partner who knows and actively promotes the many divisions of the company while taking a proactive approach to challenges and developments within the organisation for example, while offering greater customer service, human resource workers might enlist the assistance of the local marketing division to strengthen the host country's talented leadership team.
Conclusions and Recommendation
Conclusion
It is hard for any HR approach to win widespread application among all individuals. However, Schlumberger's implementation of its processes is remarkable in and of itself. Schlumberger had recovered effectively from the oil sector recession in the 1990s (Slb, 2021). HR practises can always be blamed solely for the company's success; yet, personnel are often the most valuable commodities in this sector, and Schlumberger has accomplished a better job of keeping its good employees. In the big scheme of things, its strategies of working population, egalitarianism, flexibility, meritocracy, and employee care have aided it. Once the positions and duties are established, finding the proper brains to fill them gets a little simpler. Enabling multinational recruiting is the finest global Operating practice.
Recommendation
Hiring on a global scale
Casting crossing frontiers removes population and linguistic constraints, allowing the greatest talent from all across the nation to shine. This is, obviously, better than the alternative. Global leadership and management have to include preparations to overcome the difficulties that come with acquiring people from all over the earth. According to Harney and Collings (2021), Limitations and adaptations are part of the next phases. When developing a proper human resources strategy, think about the advantages of hiring people from other countries. Other countries, especially developing countries, can frequently supply a highly trained and educated population at a fraction of the price of labour in the United States.,/
Recruitment without such involvement of a public organisation
Establishing local organisations in each nation to acquire people is a time- and cost-intensive procedure on a worldwide platform. Hiring must be part of your strategy (Slb, 2021). Employee wages and benefits, being a key cost of a company and a substantial influence on workforce well-being, must be carefully controlled in any multinational organization.
Attracting the right candidates
Attracting the right candidates would be fruitful for an oilfield company like Schlumberger. This is because, If Schlumberger has ever attempted to find the ideal applicant among a field of incompetent people, they appreciate how restricted their prospects are. They should to pick the best individual they could do at the circumstances, even if that person isn't the best candidate for this program.
Creating a powerful employer brand
Schlumberger may be able to recruit and connect better applicants if it has a good work environment. Marketing strategy makes it three times more valuable for a company to develop a successful hire. Nonetheless, it's a lengthy procedure that involves everything from assuring great applicant experiences to showcasing the employee experience on digital networking. It's a continual, collaborative endeavour that needs Schlumberger to go above and beyond its normal responsibilities in order to gain buy-in from other teammates.
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