Shell Oil Human Resources & Strategic Leadership
Question
Task
- Critically analyze the significance of Strategic Human Resources Management and its changing landscape in organizations.
- Critically discuss the impact of Human Resources Management activities on the Organisational Performance.
- Evaluate various leadership styles and practices in organizations.
- Plan how to implement change in an organization.
Answer
Introduction to the Shell Oil human resources management
Profile of the company
The selected organization is Shell Oil Company which is a subsidiary of the Royal Dutch Shell.
Headquarter:
The parent company is headquartered in the United Kingdom (Shell.com 2020). Shell Oil Company is headquartered at Houston, Texas, United States and was founded in the year 1912. Gretchen Watkins is the president of the company and the overall revenue is around US$37.376 billion.
Numbers of employees and geographical presence:
The company is known as a group of petrochemical and energy companies with approximately 92,000 employees working in more than 70 countries and territories (Shell.com, 2020). The purpose of the Shell Oil human resources is to altogether power progress with cleaner and more solutions for energy.
Strategic ambition:
Shell Oil Company is having a belief that by raising the living standards for the growing global population the demand for energy like gas and oil will be increasing in the coming years. The Shell Oil human resources is trying to manage the technological changes and the climatic ones too. Most of the people are shifting towards a multisource system of energy and low carbon usage. Some of the strategic ambitions of Shell Oil human resources are:
- Provision for investment case which world-class in nature. There is growth in the free cash flow and the returns from the shareholders are increasing. The company will be trying their level best for building a financial framework which is strong.
- To respond towards the desires of the society for convenient, cleaner and competitive energy
- To sustain a proper societal license for operations and positively contribute towards the society by the company activities
Shell Oil human resources are trying to achieve the strategic ambitions by responding to the competitive forces (Shell.com 2020). The entire external environment is being analyzed by the company. The company is trying to improve the operating performances along with maximization of the free cash flow. The Shell Oil human resources department is looking after the benefits for the health and safety of the employees. All the ethics are being adhered properly. The mission and vision of the company state that:
Vision: The Company is making a difference by their people and a team of dedicated professionals who are valuing the customers, fulfilling sustainable development and delivering all the promises (Shell.com, 2020).
Mission: The Company is trying to safely market and distribute all the petrochemical and energy products, by adding innovation to the services.
Key operational areas:
The main operations of the Shell Oil human resources divided into businesses like upstream, downstream, integrated gas and new energies. The projects and technology used by the organization are driving the research and technology and delivering major projects.
Key competitors:
Some of the top competitors of Shell Oil Company are Imperial Oil Limited, Conoco Philips Company and many more (Shell.com 2020).
Key purpose and functions of HR at Shell:
The key purpose of Shell Oil human resources is to manage employees (the human capital only) at workplace and maximize the organizational key activities by optimizing the effectiveness of the employees. Here, by collaborating with other departments like production, marketing and finance department, the Shell Oil human resources is responsible to hire right people suitable for the company and maintain employee-employer relationship at Shell.
Hence, the key functions of Shell Oil human resources to contribute strategically towards the success of the company by staffing right candidates for the company to meet the company's objective, development of the employees through proper arrangement of training sessions, safety and health priority of employees, compensation for motivation as well as employee relationship management.
Challenges faced by organization Shell
The future vision of human resource of the company is to contribute towards the transition. However, it can be found that the human resource of the company is facing challenges in hiring and managing the right people with the right skills to address energy challenges (Shell.com, 2020). As per the CEO of the company, the highly skilled jobs in the energy industry makes finding the right people a particular challenge. Hence, in the year of 2015, the company has hired around 9000 people worldwide where two-thirds of people only had technical backgrounds (Shell.com, 2020). In this regard, the functional challenging areas for Shell Oil human resources is to recruit talented people with necessary skills like innovative ideas to address environmental stress and advanced technical skill to meet the energy demand and thereby, providing them with the experience and training that allow the candidates to function at the top of their position in the company (Shell.com, 2020). Here, for addressing the challenges and making the most of this opportunity requires building workforce with special skills to get the job done and thus, providing more effective training is crucial for the organization to bring the change in the workplace to create value for the company.
Aim & Objectives
- To analyze the human resource activities and its contribution to the performance of Shell Oil Company
- To make an implementation plan for the changes that are required within the organization
- To analyze the change implementation plan and provide some recommendations
Significance and Contextual Relevance
Staffing is known as an organizational function which is the method of acquiring, deploying and retaining the workforce so that a positive impact can be created on the organization’s effectiveness. The recruitment process is done through the website of the company. There are job openings mentioned on the website and candidates can apply accordingly. There are four categories of role available for people in this company. The first one is an early career and student. The next one is experienced professionals and the third one is shell business operations. The last one is operations and maintenance. The company is attracting the people by calling themselves as the most innovative energy companies. The organization is trying to bring in curious minds and hence they develop and encourage diverse talents (Meyers et al. 2020). There is a Shell graduate program which helps in the development of the employees and the organizational performance. This is a three-year development program which is available in two job rotations. This program generally provides the employees to have the experiences of an actual job. The employees will be getting the opportunity of becoming a part of the real project and this shapes the strategies of the company along with the personal skillset development. The program is acting as a game-changer for Shell Oil Company.
There are more training and development opportunities within the company for the employees. However, the graduate training program of the company is having subjects like organizational effectiveness, business partnering and the overview of critical process along with Shell Oil human resources (Shell.com 2020). Shell Oil human resources department ensures that staffing and development of employees are getting proper support in terms of the working environment (Ahammad 2017). There are facilities for coaching, mentoring and formal training. The company is having an internship program for the students which are usually 10-12 weeks in a particular area. There are real projects discussed and this allows the intern to find their skills. In this way, the valuable network gets developed and there are contracts for the students for their career opportunities.
Shell Oil Company is providing competitive compensations and packages of benefits in the industry. The company is quite serious about work-life balance. There are strong reward packages and benefits. The employees are provided with subsidiary services. Shell Oil Company is the first one to provide minimum maternity leave to the employees. There is flexibility in the working policies (Shell.com 2020). Performance-based rewards are provided to the employees. However, this depends on the business performance of the company, merit, location and role.
All the process of staffing, development and compensation are strategic in nature for Shell Oil Company. For example, compensation is given on the basis of the performance and position of the company. The employees are working hard for achieving the objectives and goals.
Literature Review
Shell Oil human resources management activities
An organization performs various activities or functions under Shell Oil human resources (Bratton and Gold 2017). Some of the common ones are planning, staffing, developing, motivating, managing the changes, appraising and many more. The trends in Shell Oil human resources keep changing from time to time. Most of the organizations these days are busy promoting the productivity of the employees and is trying to maintain the overall success of the organization. Shell Oil human resources are having certain roles and responsibilities. They recruit students who are graduate from university. There is a proper Shell Oil human resources account manager and policy. The departments of the recruitment and remuneration and benefits are different because each one is having a specialist (Ahammad, 2017). The company is having advisors for talent, learning and Shell Oil human resources strategies. There is a consultant for the design and changes in the organization. Shell Oil human resources are strongly contributing to the betterment of the organization’s performance. Proper employee relation is built along with the performance culture. Shell Oil human resources policies are implemented in an effective way. There is a succession plan which helps the company to manage the talent (Akbar et al. 2019). Shell Oil Company is strong following the practices of diversity and inclusion. The Shell Oil human resources team is having training programs for both newcomers and old employees. The main focus of Shell Oil human resources is to develop the skillsets of the employees so that it can be used for the betterment of the organization.
Figure 1: SHRM Functions
(Source: Bratton and Gold 2017)
Shell Oil human resources is managing talent so that the challenges of the organization can be addressed properly. The population in the world is rising rapidly and hence the demand for energy resources is increasing. There is a lot of environmental stress and hence the Shell Oil human resources is trying to recruit the people with a brighter set of ideas and dedications (Armstrong, 2016). The company is searching for countries that are rich in resources so that some opportunities can be gained. Shell Oil human resources is having the function of recruiting a talented set of people who will be having the essential technical skills in the locations of requirements. One of the crucial duties of the company is to provide sufficient training and experiences so that everyone can perform according to their profession (DeCenzo, Robbins and Verhulst 2016). General Shell Oil human resources activities are not working out in today's world. Hence there will be a requirement for strategic activities for the future of the organization.
Shell Oil human resources is focusing on the right set of people for hiring; however, this is a major challenge for them. Each year the company is hiring around 9,000 people and will try to continue this same process (Shell.com 2020). Skill development is done for the employees so that the company can receive a competitive edge. The company is investing a large amount of money in this case. The Shell Oil human resources team is sending talented workers on foreign assignments so that critical experiences can be gained. Shell Oil Company is helping the joint ventures to raise the skill levels. There is a support given to the local development by the company (Shell.com 2020). Hence, it’s clear that Shell Oil human resources management functions are becoming strategic in nature. It is because Shell Oil Company is trying to position them for supplying competitive intelligence for strategic formulation. However, there is a challenge in developing the choices of Shell Oil human resources practices so that strategy of the organization can be implemented.
Strategic HRM activities and its relation to the performance of the organization
Philosophy of SHRM is to express in statements defining business values and culture. There is a connection between Shell Oil human resources strategies and the organization’s goals and objectives (Boon et al. 2018). The main aim of strategic HRM is to advance the flexibility, get some competitive advantage and innovation. The strategies are made according to the organizational culture. The strategic activities usually highlight the practices, policies and programs of Shell Oil human resources management (Bailey et al. 2018). In the strategy, people are selected for completing the tasks and gaining some competitive advantage. The strategic human resource management is having a guest model which is used by the organizations (Peccei and Van De Voorde 2019). It is reflecting the core set of practices which achieve better organizational performance. It shows that the model is different from personal management. Shell Oil Company is following this model which is completely based on commitment and it is contrasted with the compliance. The model is expanded and just not dependent on recruitment and training. Shell Oil Company ensures that proper strategies are formed by the Shell Oil human resources team so that success can be achieved. There are four main components of the Guest Model which are explained in details.
Figure 2: Guest Model of Strategic HRM
(Source: Peccei and Van De Voorde 2019)
- Flexibility: Shell Oil Company is providing enough flexibility to employees so that work and life can be balanced properly. There is a positive environment in the organization which is encouraging the employees to work hard (Bailey et al. 2018).
- Strategic Integration: Company is maintaining a balance in the strategies of Shell Oil human resources management and their business.
- High-level commitment: The employees in the organization are highly committed to the performance of the company. All the employees are working as a team (Shell.com 2020). They are having a commitment to the well-being of each other and is also gaining success. The culture is converted into collaboration, common values and respect.
- Quality: Qualitative measures are being taken by the employees which influence their productivity and leaves a positive impact on the customers.
The guest model shows that key stakeholders like managers, employees, customers, suppliers and many more are satisfied with the performance of the organization. The level of recruitment for fresh talent is high. Each year the company is trying to come up with some innovation (Shell.com 2020). High level of sustainability is being maintained by the organization. More investments are being done by Shell Oil Company for access to energy. The profitability in the 2018 soar by a third and the parent company reported a profit of $21.4 billion in the fourth quarter. The company had seen a cash flow from the operation of $49.6 billion. The ROI of the company was seen to be 9.80% in the year 2018 (Shell.com, 2020).
The strategic objective of strengthening the position of the company as the leading one in case of energy provision was being attained (Armstrong 2016). Shell Oil Company was moving towards bringing the change in the energy system of the world. Further, they are trying to reduce the Net Carbon Footprint of their energy products. The company is having a competitive advantage through strategic HRM especially in EV charging space. It is because they are having a wider retail presence. The Shell Oil human resources management ensured that the core values comprised of integrity, honesty and respect for the people. The responsibilities are set to the customers, employees, business partners, shareholders and society.
2.3 Organization’s strategic HR direction is affecting the basic contemporary Shell Oil human resources issues like staffing, compensation and development of the organization
HRD of Shell has been vigilant on affirming that the human capital of the company is linked with the strategic objectives and goals. With respect to the business strategies, the Shell Oil human resources actions are being redesigned to tackle the changes occurring in the industry. Shell Oil human resources has realized the importance of soft skills to adjust to the changes occurring in the company (Gardas et al. 2019). In staffing operations, the company focuses on adaptability, drive, creativity, supportiveness and assertiveness of the candidate. There is an emphasis on these particular skills to ensure that diverse businesses operations and any modifications in them occur smoothly (Shell.com 2020). There is minimal impact on the accrued costs of the company.
In terms of compensation, Shell provides a range of benefits to acquire and retain talented personnel. Many locations of Shell offer free car parking, medical care and sports facilities to the workforce (Masood 2019). Shares of the company can be purchased at lower rates in some nations. These methods undertook by the SHRM of Shell ensure that Shell remains the top alternative for prospective employees despite other options present in the market. Work-Life balance is provided as an ancillary part of the compensation program (Bento and Garotti 2019). It entails that employees are satisfied and remain committed to the various operations of the company. The workforce of Shell is inspired to deliver their finest performance to reach the goals set by an organization leading to higher productivity. Further rewards are handed out to high performing employees inciting employees to invest their best efforts in the current processes (Cumming et al. 2020).
Shell SHRM has played a crucial role in driving organizational development. Training and development programs among the new recruits ensure that there are no knowledge gaps in the current human capital deployed by the company in diverse oil and gas projects. Oil and gas projects of Shell are delivered within time owing to the training imparted to the employees at regular intervals helping them to take on dynamic responsibilities. There is compliance with legal standards and regulations of each location successfully avoiding potential pitfalls within the company. Leadership and succession planning in Shell certify that employees have full information as to how to proceed and execute their responsibilities (Darwish and Fattaah, 2020). Migration of inherent knowledge is mitigated leading to high performance within the units of Shell.
3.Application of knowledge and understanding
3.1 Critical Evaluation of the link between organizational performance and Management of Shell Oil human resources
Managing Change
The Human Resource Management of Shell is critical in optimizing the range of its business operations. Shell provides intense support for any changes occurring in the company (Chilson and Wehner 2020). Due to the dynamic changes in the global oil industry Shell adjust and adapt to deliver high performance. Recent developments and fluctuations in oil supply have forced Shell to redesign its methodologies and execution of plans (DeCenzo et al. 2016). This could have been stressful for employees diminishing their ability to contribute to business plans. However, the support provided by Shell has ensured that employees are able to adapt without disruptions, enhancing the organizational output.
Knowledge Sharing
One of the vital objectives of Shell Oil human resources management is providing adequate and meticulous training to employees in each department. There is relentless on-job training to upgrade the respective skills of employees. Additionally, the company ensures that there is access to a host of networking professionals and experts with rich experience (Wibisana and Indrajaya 2019). The knowledge sharing about complex business-related issues affirms that employees at Shell are able to tackle obstacles to daily operations independently. Exposure to real projects empowers employees with relevant knowledge enhancing their individual performances. A plethora of learning and development programs are tendered to employees including “Shell Graduate Program” and “Organizational effectiveness” (Diaz?Carrion et al. 2018). Formal training, coaching and mentoring are provided by the company inspiring employees to work harder for the organization.
Individual levels of productivity and capacity of employees are increased leading to heightened organization performance. Each department of Shell is able to meet targets since employees are ably trained.
Staff Planning
Shell recruits oftentimes within the company thus retaining a large part of the talent pool. Opportunities are advertised for employees in the specialist and generalist roles. Employees are able to explore a horde of opportunities (Friday and Sunday 2019). Chances are provided by the company in multiple areas of business and to try different types of roles. Through this method, Shell achieves the dual purpose of retaining talent and ascertaining that each employee is mapped to the job role corresponding to their abilities (Howes and Taylor 2020). This boosts the performance of the company while also saving extra costs required for attracting, recruiting and training talent assimilated from outside.
Detailed staff planning allows the company to manage competencies and facilitate succession planning. Since most of the employees are attuned beforehand with the culture of Shell time is saved leading to better business decision making.
Measuring Performances
The shell adopts Meta processes within the company to track and assess the performance of an individual. Navigator Boards and a set of KPIs are used to make sure that the performance level in each section of the company is competent (Darwish and Fattaah 2020). Any issues faced by operating staffs with respect to performance are easily identified by this process.
This close monitoring enables the company to discern the strengths and weaknesses of its staffs. The organization is able to allocate its Shell Oil human resources and delegate responsibilities accordingly leading to improved outcomes.
3.2 Contributions of Human Resource Management in impacting the outcomes of the organizational performance
The company deploys a number of strategic Shell Oil human resources measures to harness its talent resulting in accentuated organizational performance. It is important to observe that in terms of organizational performance Shell desires to strengthen its position as a leading energy unit providing gas, oil and low-carbon solutions (Shujahat et al. 2020). The company also aims to sustain the prevalent Upstream Businesses and enhance customer-facing concerns. Shell relentlessly strives to cut down costs, meet energy demands and generate a seamless flow of cash for each of its share. Thus, to increase its performance the company needs to restructure and reposition its portfolio. Shell Oil human resources management focusing on developing an inclusive culture and complying with safety has a positive impact on the psyche of employees. They are incited to perform better.
The impacts on business performance of Shell are as elaborated:
HRM practices |
Impacts on organizational performance |
Supporting employees during changes within the organization |
Reducing turnover High adaptability to changes in the supply of energy market Committed performance of employees in response to the support received |
Knowledge Sharing Training and development |
There is managed succession planning preventing core knowledge from migrating outside of the company (Cumming et al. 2020) Employees are able to tackle the business operations inherent to oil industry due to the enhanced knowledge and skills imparted to them |
Staff Planning |
Internal recruitment ensures that very little time is wasted on adapting to the culture of Shell More time can be invested in critical to business decision making, ameliorating the organizational performance of Shell Costs pertaining to fresh recruitment drives are saved enhancing the cash flow of the company |
Measuring Performances |
A quick analysis of strengths and weaknesses in the company (MS 2020) Informed Decisions regarding staffing and training are accomplished spurring high growth |
Developing an inclusive culture |
High perceived brand image of the company Highly skilled and talented workforce are inspired to work for the company due to the culture respecting and acknowledging diversities driving performance of each energy unit |
Complying to health and safety standards for the workforce |
Precautions and hazards information tendered to employees educates them preventing accidents on-site (Cumming et al. 2020) Time schedule and budget of energy projects are maintained Employees are satisfied due to the manifested concern performing better |
Competitive Compensation Design |
There is reduced turnover among the 94, 000 employees of the company The attrition rate is a mere 1% facilitating the organization to perform seamlessly |
Exploration of the Human Resource Activities upon the organizational development
Planned Human Resource Activities by the company has intensified the business goals accomplishing them with very limited Shell Oil human resources. There are around 15,000 line managers of Shell spread over the world (Cumming et al. 2020). Line manager support is tendered in each operational centre facilitating them to take enhanced business decisions in response to the high fluctuations in oil price. The Shell Oil human resources Advice Team of the company supports the processes by providing transaction and advisory support. Such support information by the Shell Oil human resources development is tendered to high touch sections including 400 local frameworks and 36 global frameworks.
Shell has been successfully able to implement a number of new information systems and operational procedures due to support received from the multiple Shell Oil human resources activities. After each Go-Live session, a dedicated team has been formed and assigned to identify and solve issues pertaining to a timeframe of 24 hours (Shujahat et al. 2020). Such 24X7 support has resulted in quick stabilization of the business processes spurring organizational development in the oil and gas industry.
Moreover, the Shell Oil human resources management is careful to craft an integrated organizational design. Accountabilities and interdependencies are clearly defined leading to rapid business decisions. The inclusive culture of the company has been similarly successful in attracting highly skilled people in individual fields in each nation. There is no dearth of expertise or knowledge leading to agile designs and equipment handling required in each project of the company. It can also be inferred that the company adopts a transparent and open change management process (Gardas et al. 2019). Shell Oil human resources is directly involved with the employee in dialogue about changing any process and managing the capabilities associated with it. To support changes a customized human performance based on neuroscience and positive psychology has been synthesized in co-ordination with Shell Health (Shujahat et al. 2020). This has aided Shell in taking up new projects and orienting teams as per the requirements. Shell has thus been able to retain its position in the market.
To improve the relationship between employees and Line Managers the Shell Oil human resources portal technology was developed by the HRD of Shell. There were facilities for navigating important content for managing various operations of the oil and gas industry. Virtual support tendered was critical in terms of performance management empowering employees across global units to perform their responsibilities independently (). Employees and managers received immediate access to the core knowledge necessary for managing daily operations. Shared resources across the network and access to technical know-how have saved costs for Shell in Manila, Kuala Lumpur and Krakow.
4. Change Implementation Plan
Change management planning is considered as a structure, which defined an approach through any organization, individual and groups are shifting from the existing state to the state of desired future (Cameron and Green 2019). The management of change can be developing within a similar organization. Here for Shell Oil Company, the change implementation plan will be for their new functional branch office (Cameron and Green 2019). Therefore, it is very much clear that implementation planning is to develop a bridge within the gap of existing operation of the organization and the operating process which should be ideal for the future.<./p>
Analysis of factors driving change in Shell
As per research on Shell Oil human resources management, it is stated that the organization Shell has to be focused both of the organizational change factors and they are external change factors and internal change factors (Gunjal 2019).
The external change factors will consider area like:
- Technical changes
- Condition of market changes
- Legal and political changes
- Social changes (Gunjal 2019)
The internal change factors will consider areas like:
- Personal management changes
- Identified deficiency in Shell
- Workforce nature (Gunjal 2019)
- Reduction o development of inertia
Shell wants to introduce the new functional branch office, Therefore, they have to interact with other organizations, consumers, suppliers, unions and individuals for the establishment of change management. Therefore, they have to consider particular responsibilities’ and goals for the change environment processing (Bousquet et al. 2019). Therefore, as per the above-mentioned factors for Shell Oil human resources management, it can able stated that organizational change can be the major functional area of shell which gives impact over the process of production, the relation between labour and management processing, constraints of economic factors, nature of competition, methods of organizations an s n. in case of internal changes the impact will be on the personnel managerial area and the existing deficiency of the practice of Shell.
Kotter’s 8 Step model of change: The Shell Oil human resources must consider the model of Kotter’s 8 step model for the implementation of the change processing in the organization (Bousquet et al. 2019). The model mainly helps to determine the process and focused are during the implementation of change management. The three main activities of this model are discussed below:
Development of condition for change of Shell new functional branch:
- Step 1: Increasing of urgency in new office strategy
- Step 2: Development of a team which can able to guide the organization properly
- Step 3: The change for new branch it is required to focus over vision.
- Step 4: the changing implementation process required transparent communication system.
New practice introduction for Shell new office
- Step 5: The action will empower in this step.
- Step 6: to maintain an increased and developed process Shell have to create some short-term goals (Bousquet et al. 2019).
- Step 7: This step considers the application of the changes
- Step 8: In the last step it must ensure abut to make the change stick.
ADKAR model:
This model will also help the organization Shell for an individual journey of success through the process of change. Therefore, the elements which can help to achieve success for Shell are discussed below:
- Awareness: During the change management process all their employees need to be more aware of the outcomes and goals of the initial process of business (Weiner 2020).
- Desire: Shell expects from the stakeholder's that they will support the change management process to achieve the desired goal.
- Knowledge: about the change of the process in Shell all existing employees need to acquire the knowledge of requirements of change (Zheng et al. 2019). Therefore, they can understand the value.
- Ability: employees need to develop themselves in such a way that they have the capacity to implement the process to fulfil the required performance level. They also try to manage behaviour for adaptation of new skills.
- Reinforcement: the sustainable change must be clear towards the employees that there is no scope to turning back from the change strategies (Zheng et al. 2019).
Therefore, it can be seen that both the organization and people dimension can able demonstrated through this model. The outcomes of the model deliver awareness over the required system of the new functional branch office of Shell.
4.1 Forecasting Demand and Supply of Human Capital
Markov analysis is a process through which Shell Oil human resources can extend the process of staffing to get help from this model to predict the internal movement of the employees about their duties. The company can able to take a decision very their jobs, promotion schemes, demotion schemes, transfer process and the execution process. Therefore, by predicting and tracking the movements of employees through Markov Analysis Shell can able to understand the development process of the human resource over the matrix of transition to give forecast over the internal supply of labour (Zheng et al. 2019). Here for Shell, the Markov analysis will focus over the demand and supply of human capital of the organization. Therefore, the man three parameters considered here are the current supply of human capital, projected demand for human capital and the causing gap strategies.
Figure no 3: Markov Analysis
(Source: Zheng et al. 2019)
The above structure describes the current level of employees, projected outflows and the projected inflows. Therefore, it will demonstrate that:
Current staffing – (Projected outflows + Projected inflows) = Internal human resource supply in the current year. (Zheng et al. 2019)
Therefore, from the above graphical representation, it can be stated that supply and demand o the human resource can able easily forecast from the table. It helps to understand the prediction of the employee management's process from the present year to another year by detecting the percentages of the employees (Akbar et al. 2019). The remaining employees in the organization Shell are demoted, promoted, transfer or exist activities can be processed through the presence of the transition matrix.
Shell Oil human resources management will use this transition matrix to identify the internal flow of Shell Oil human resources. Moreover, the matrix generally describes the probability and the average are of the movement (Akbar et al. 2019). Therefore, after the development of that Forecasting demand and supply of human capital the relevant details of the Shell change management implementation planning are discussed below:
- At first, Shell has to be outlining the process and implement the outline through transition planning.
- After that, that development process of the implemented plan will be processed.
- The higher authority of the organization needs to evaluate both the organization and the employees to know about the issues or flexibilities (Akbar et al. 2019).
- The requirement of leadership is also required to be identified after this process
- The business strategies and objectives must be developed through the demand of the new branch office.
- At last before starting the project process for new branch the organization needs to clear the vision of the employees (Maali et al. 2020).
Rationale of planning through Gap closing strategies
The implementation plan considers the appropriate process of the Markov Analysis because as per the demand of organization they need to identify a proper forecast the planning of the new function branch office. Therefore, this model helps to detect the present employee processing, and required human restore for the organization (Maali et al. 2020). Shell Oil human resources described that they require a compelling report over stakeholders and team for the change proposal report. This analysis is able to synthesize the issues to align them with strategic HRM practice.
However, the gap closing strategies consider the strategies like a reward system, performance management process, retention strategies, different employee benefit schemes and so on. However, the strategies manly consider the factors which are efficient to fill up the gap of employee turnover process of the new branch office of Shell.
2020 2019 |
Departmental supervisor |
Foreman |
Plant Manager |
Machine operator |
General labour |
Exits |
Departmental supervisor n= 3 |
7% 1 |
75% 11 |
12% 2 |
6% 0 |
||
Foreman n=60 |
87% 3 |
7% 0 |
5% 1 |
|||
Plant Manager n=15 |
3% 2 |
77% 47 |
10% 6 |
12% 8 |
||
Machine operator n= 106 |
16% 16 |
50% 49 |
13% 12 |
24% 25 |
||
General labour n= 440 |
11% 32 |
68% 213 |
33% 70 |
|||
Projected supply n=2020 |
4 |
13 |
65 |
87 |
225 |
104 |
Stakeholder Analysis
Stakeholder analysis of Shell considers the responsibilities and change of communication in the implementation of planning through the stakeholders of the organization. This part tries to demonstrate that challenges and issues related to the contingency planning, and risk factors of the organization (Maali et al. 2020). As the functional branch office is new Therefore, arise issues will be:
- Stakeholders are not able to consider the system as it is new and also it considers the changed process of the organization.
- Existing employees take time to cope-up with the new process.
- During implementation, skill and knowledge both have to be updated by the employees of the organization (Howes and Taylor 2020).
Therefore, Stakeholder analysis engages the process of the analysis of the problem by identification of the problem overriding. The constraints affect and the cause must be considered by the stakeholder analysis model. The problems which will consider here are focused on the most effective interest and responsibilities of Shell stakeholders (Howes and Taylor 2020). The main purpose of the stakeholder’s analysis will be addressing the better process and distributional impact over programs, projects and policies. The identification process of existing and potential factors and conflicts are also considered as the mitigation strategies of the organization (Howes and Taylor 2020). The benefits or the solution from the side f stakeholders are discussed below:
Figure no 4: Stakeholder analysis
(Source: Howes and Taylor 2020)
- The organization needs to identify the major stakeholders so that they can consider them and divided them into levels.
- After that, they can investigate the roles and responsibilities as per the interest, and desire of the stakeholders (Tam 2020).
- The conflict and extent of cooperation in the relationship must be considered by higher authorities.
Leadership and Communication
Trait theories:
This theory considers social, physical; personality and intellectual traits of leaders are considered here. Therefore, as per the theory, leaders must be focused over theory personal qualities and characteristics (Tam 2020).
Figure no 5: Trait Theories
(Source: Wyatt and Silvester, 2018)
The behavioral theory of leadership:
This theory considers the process through which leaders can able to focus over their responsibilities and team members (Harrison 2018). The theory is based on the principle that behaviours depend on conditions that one can have a specific response against specific stimuli. Thus, this theory helps an employee to apply his or her specific behaviors to the organization and differentiates from other employees.
Shared leadership style:
Share leadership process of Shell Oil human resources must consider the orientation of leadership tasks, leadership relation approaches, change leadership process, micro-political leadership orientation and process of empowerment (Tam 2020).
Situational theories:
This theory considers four main parameters and they are delegating, supportive, coaching and directing.
Figure no 6: Situational theory
(Source: Sopow 2020)
As per the above discussion on Shell Oil human resources, it can able stated that trait theories of leadership must consider the strong qualities of a leader. Therefore, in that case, leaders can able to focus on their duties as their comfortable traits are considered by the organization (Sopow 2020). In the other hand, it is also noted that the theory is very complex and management need to considers a complex process to find out flexible traits of leaders. Therefore, some research stat that trait theory is not able to consider good circumstances for organization.
In contrast with the trait theories, it can able stated that behavioral theories capable to attempt the process of leadership through the explanation of the approach of the effective role of the behavior. Therefore, the leadership process in behavioral style of approach totally considers the personal development process (Sopow 2020). Shared leadership process helps to detect the input of staffs, sense of worth and empowerment of the employees. In the other hand, this leadership process is very hard to execute. Moreover, the relationship statures and relationship can be changed through the process of every level.
Recommendations and Conclusions
Recommendation
Shell despite its well-researched methods needs certain improvements to surge ahead of other oil and gas companies
- A “hard” version of Shell Oil human resources management whereby high emphasis is placed on the trade performance of the company. There is very little importance given to the quality of life and well-being of employees. The company needs to provide more vouchers and incentives to employees. Also, the quality of life being experienced by employees need deeper analysis.
- The employee handbook of Shell is somewhat outdated compared to the current changes in international Shell Oil human resources operations. Shell needs to study modern methods to define acceptable behavior in the business premises of Shell
- Inaccurate job descriptions and hasty hires are sometimes done which needs to be eliminated completely from the Shell Oil human resources operations.
Conclusion
Contemporary markets in oil and gas are extremely erratic. The manner in which the workforces perform the tasks is salient to the smooth running of the business. Businesses like Shell are heavily reliant on the SHRM practices to manage competencies and align them to the business objectives. The report scrutinizes the strengths and weaknesses of the Shell Oil human resources operations and suggests measures which can aid it to perform better. The pressure on Shell Oil human resources development is more to hire talented people and retain them in the workforce of Shell.
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