Human Resource Management Assignment Management Essay
Shell Oil Company are a global group of energy and petrochemicals companies, They are the subsidiary of Royal Dutch shell that is based in united state of America; they are multinational oil and Gas Company. They have their origins from Anglo Dutch, and there company head office is in Houston Texas in united state of America. Shell oil is one among the largest oil and gas companies in the world. Shell Oil Company has around 101,000 employees in more than 90 countries and territory, http://www.shell.com/home/content/aboutshell/,
Shell Oil Company has its own refining and marketing which operates its three refineries’. The product of shell Oil Company includes oils, fuel and card service as well as explorations production and refining of petroleum product. http://www.shell.com/home/content/products_services/
1:2THE MAJOR PLAYER IN OIL SECTORS.
Royal Dutch Shell is the world’s number 2 petroleum companies with ability to produce and distribute oil faster than other player in oil industry. Exxon Mobil is the leading oil and gas industry followed by shell and other players like Agip, Alon, BG Group, Total, Nigerian National Petroleum Corporation (N.N.P.C) etc.
Shell oil got advantage over all other oil players because of their better quality of their oil product to the consumer, also they gain more customers because of their flexibility in their operations and the cost of their product are relatively better than their other counterpart in the oil and gas sector.
Finally shell oil have a better operation stagey that is flexible in nature and they have speed in dealing with their customer, for example shell oil doesn’t want to delay customer buying their product in their filling station and they makes their product available for customer consumption at all time which give them a better advantage over the other player in oil industry.
2:1 SHELL OIL COMPANY MISSION.
Shell oil company mission is to manufacture and supply of oil product and services that satisfy the needs of their customers. And to also contribute to sustainable development helps create business value and reduce operational financial risk. http://www.shell.com/home/content2/mu-en/about_shell/ourmission_15110904.html
2:2 SHELL OIL VISION STATEMENTS:
Shell oil company vision is to make the difference through their employee, people they do business with, a team of dedicated professionals, who value their customers, deliver on shell oil business promises and contribute to sustainable development. http://www.shell.com/home/content2/mu-en/about_shell/ourmission_15110904.html.
This case study aim to critically examine the basic notions of job design and analysis that can support the strategic objectives of shell Oil Company.
It will also asses all the importance of competence modelling used in shell oil company and will also evaluate the approaches of human resource development to the development of shell oil business strategy.
This work of research will also look into the processes that will required by shell oil company to assess the effectiveness of the kind of human resource strategy which was embark by shell oil company.
This work of research will identify planning process and its position in the man power planning framework in shell oil organisation. And we will also talk about the principle related to the demand and supply of labour in the organisation. We are also going to evaluate the role of legal and organisational requirement in creating a human resource plan in shell Oil Company.
This work of research will also make us see the planning process and its position in the man power planning framework of shell Oil Company. We will also analysis the principle of demand and supply labour in shell Oil Company.
This work of research will also cover and evaluate the role of legal and organisational requirement in creating a very good human resource plan. We will also examine the employee personal and managerial effectiveness through shell oil process of personal reflections.
This work of research is gather from primary data which are done by other scholars and the shell oil company web site and secondary data which i discover from on my personal findings about shell oil company. We will also disuse some key definitions in other to put more light on what will are getting at about shell Oil Company.
3:2 DEFINITION OF JOB DESIGN:
This can be defining as the work arrangement which will aim to reduce overcoming job dissatisfactions which can arise from repletion’s and mechanistic task conducting in an organisation. http://www.businessdictionary.com/definition/job-design.html.
3:3 DEFINITIONS OF JOB ANALYSIS:
This is the detailed of the task performance of employee role under which they are performed in an organisation. This involves the development of performance measurement system matching of job specification with the person specification in employee selection of an organisation. http://www.businessdictionary.com/definition/job-analysis.html.
3:4 COMPETENCY MODELLING:
This can be defining as the process of analysing and describing types and range of abilities, knowledge and skills present in an organisation. http://www.businessdictionary.com/definition/competency-modeling.html.
4:1 SWOT ANALYSIS CONDUCTED ON SHELL OIL COMPANY.
This analysis is conducted on shell Oil Company in order to identify the company strengths, weakness and their threats. And this is seen in as a process of isolation and its important decisions are taken based on my finding about shell Oil Company. Michel Robert (1993).
Shell Oil Company falls into the situation of Analysis in strategic and marketing planning.
The swot analysis of shell Oil Company is as follow.
4:2 SHELL OIL STRENGTH.
1: STRONG BRAND NAME:
Shell Oil Company has very strong brand names which are well known all over the world. The brand name is been derived from the good will and the name recognition of the company which are earn over the years, which was translates into higher sales volume and higher profits margins against other competing brand in the oil industry. Kotler, P.,(1997)
2: GOOD PRODUCT:
The product of shell oil like shell fuel, gasoline are a very good product which attract more customer in buying the product all over the world which most of their competitor do not have. Chris zook and james Alen (2001)
3: HUGE CAPITAL:
This is another major strength of shell oil over their competitors that give strength to shell oil because of their huge capital the company have in building refineries all over the world. Wong, K (1997)
4: HIGH QUALITY WORK FORCE:
Shell Oil Company is one of the best companies in oil and petrol chemical industries that have highest number of work force, this has always associated to the success, and they also implement flexible working strategy to their staff. Philip Selznick (1957)
5: They have the ability to sustain robust management system over the other major players in oil industries. Miller,k. and Layton, R.(2000)
6: SHELL OIL MAXIMISE THEIR REFINERY MARGINS:
This is another area that makes shell oil have huge over the other player in oil industries because of their limited refinery and ability to manage their refinery to keep it in a standard way.
7: THEY DELIVER STRUCTURE COST REDUCTION:
Most of the customer of shell oil company believes that shell oil product is relatively cheap that other company in oil business. Kotler, P.,(1997)
8: INTRODUCTION OF SHELL CARD:
This is another factor that give shell oil strength because of their introduction of shell card that allow their customer to pay directly to company via the shell card, and this also allow the shell company to monitor how much of shell product been used by various customer.
9: WIDE RANGE OF PRODUCT AND SERVICE. Shell oil products are wildly spread all over the world, and their product is a house hold name in oil and gas industries.
10: Shell oil has the right sell and they have a good distribution outlet all over the world
4.3 SHELL OIL WEAKENESS.
1. OPERATING IN UNSTABLE ENVIRONMENT.
Conditions of operation in most of shell oil refinery are not suitable due to crises of shell oil with community people where shell refineries are build.
2. CORRUPTION IN OIL BUSINESS:
this is another factor of weakness in shell oil company, this corruption are majorly cause by the government of countries where been build and the employee of shell company.
3. Establishment of partnership with stake holders.
4. EXPLORE NEW FIELDS.
Shell oil are exploring in other sector which are affecting their level of productivity.
5. Creating parties which will be held accountable for unethical practices in shell Oil Company.
6: SHELL MARKET RESEARCH IS NOT UP TO DATE:
the market research of shell oil are not up to date which serve as major weakness and which gives the other oil players advantage over them.
7: LACK OF FREEDOM:
Government still have direct access control over shell Oil Company to increase the petrol and diesel price. Al and Laura Ries (2004)
8: CRUDE OIL PRICE:
The crude oil price doesn’t stays in one point.
4:4 SHELL OIL COMPANY OPPORTUNITY.
1: EXTENSIVE RESEARCH DEVELOPMENT:
Shell Oil Company has a quality research development that help in development of their staff, as a result of it give them more advantage over the other company in oil business. Mittal, B. and Lassar, W.(1996)”
2: EXPLORE NEW FIELD: shell oil have a joint venture with Texaco and other multinational companies which increase their span of growth and development.
3: Shell oil are been affect by many controversy in the past that want to make them loss their value. But they also have the ability to quickly amend those things.
4:5 SHELL OIL COMPANY THREAT.
1: NEW OIL PLAYER:
this is the major factor that bring treat to shell oil, when there new oil company that are production similar product and are ready to sell it at a lower rate. Wong, K.(1997)
2: ECOLOGICAL FACTOR:
These are pollution course by shell oil to the community. R.H. Mac Arthur (1958)
3: LOBBY GROUP:
lobby group is one of the treat of shell oil wherein local and international legislature are been influenced in order to make law. Al and Laura Ries(2004)
4: INTRODUCTION OF NEW REGULATIONS BY OPEC.
These happen when new rules and regulations are been introduce that affect the price of crude oil.
5: CONTINUED NEGATIVE IMAGE AND PUBLICITY.
These are the bad publicity by the media over the affair of shell oil, which reduce their reputations to the public.
6: continued discrediting of portion:
7: people using shell product are more price conscious as a result on inflation all over the world.
8: Continues government interference in shell Oil Company where they have their refinery.
5:1PESTLE ANAYLISIS OF SHELL OIL.
- The policies of government on shell oil are factor affecting shell Oil Company for example of this policies affect the rate of production in oil business.
- Tax on petroleum product by the government of the country where refinery are built, are factor to affecting shell oil business.
- Political instability of government of the country where shell oil have its refinery.
5:3 THE ENVIRONMENTAL FACTOR:
this is matter that arises from environmental pollution cause by shell oil which makes government lay embargo on production of oil product in some country.
1: UNEMPLOYMENT :
This are the number of able man and woman unable to attach them self to any work force in the society.
2: GROSS NATIONAL PRODUCT TREND:
this are the factor that affect shell oil economically because of the pattern of gradual change in a condition, output or process.
this is another factor that affects shell oil when the price affects the growth of production in oil business.
1: LEVEL OF EDUCATIONS:
The standards of education of most of the employee of shell oil are not up to date because of government involvement in the human resource department of shell oil.
2: Population demographic of the countries where the refinery are built play a major factor.
Most of the employees of shell oil think that their jobs are not flexible enough which doesn’t increase their lifestyles.
- Introduction of shell oil card for payment for fuel at shell station worldwide are not generally accepted my some country that are lacking behind technologically.
- speed in technology worldwide is another factor affecting shell oil.
- T he cultural back grounds of the country where shell oil have its refinery plays a major factor as a strategy.
- Impact of shell product on the environment: this course a major problem in Nigerian where the community that shell is building the refinery claim that shell oil are causing their land to be hazardous.
- The health and safety law: they are enforcing by government on employer over their employees in other to have a better and safer work.
- Some law which are enforcing by government that require the employer to employer certain percentage of people to shell oil which affect shell oil either in a positive and a genitive way.
6:1 THE NOTION OF JOB DESIGN AND JOB ANALYSIS IN SHELL OIL COMPANY
Job design in shell oil comprises how the company deal with job enlargement, job enrichment, job rotations and job simplifications.
6:1 job enlargement in shell oil: this is the technique use in shell Oil Company to determine the task that will be associated with the job the employee does in the organisation.
Shell oil provides relevant training to their staff in other to make them relevant and also to add knowledge to their growth and development.
Job enlargement in shell Oil Company is based on horizontal restructuring method, which has been help them in adding shell oil relevant task to their employee.
Job enlargement has help shell oil in greater workforce and has made their work more flexible.
6:2 JOB ENRICHMENT:
this is the second technique use by shell Oil Company of other to increase the level of their employee responsibility.
They also use this technique in shell oil to gain control over their job and it’s also give their employee autonomy on the job they are doing.
Job enrichment in shell Oil Company is base on vertical which is from the top management to the lower employee.
6:3 JOB ROTATIONS:
job rotation in shell Oil Company is based on cross training, which allows their employee to move between two or more jobs in the company.
This has help shell oil company in exposing their staff in a different experience, which has give their employee additional skills required by share company, which has help shell oil company and their employee to have a better job satisfaction.
6:4 JOB SIMPLIFICATION:
this is kind of job design technique use by shell oil company in other to break down their employee job render for the company.
Job simplification in shell oil is very important factor that they consider because it has help shell Oil Company to in determining their employee performance which has lead the company to achieve a greater productivity.
7:1 NOTION OF JOB ANALYSIS IN SHELL OIL.
This is the technique use by shell oil to collect process and analysing the information about job done in shell Oil Company which involves the following:
1: JOB DESCRIPTION:
this is the general written document of shell oil declaring the specific job which are require of each employee, it also include the duties and the responsibility, purpose, scope and working conditions of job that will be required of employee of shell oil. mindy chapman,(2003)
this has to do with how shell oil maintain their employee characteristic and it’s also require their employee qualification, tanning to develop their employee knowledge.
8:1 USES OF JOB ANALYSIS IN SHELL OIL.
A: it helps shell oil in redesigning their job so as to achieve organisational goal which is to produce and distribute to their various customer in other to get profit.
B: its help shell oil in selection process: job analysis allows shell oil to select best candidate that are suitable to job in other to achieve organisation goal.
C: help shell oil in determine if the employee require training and development.
D: performance appraisal: its make shell oil to evaluate an employee work and behaviour by providing feedback to the employee on area of improvement in shell Oil Company.
9:1 METHOD OF JOB ANALYISIS IN SHELL OIL.
Shell oil combines some of the method of job analysis so as to achieve the organisation goal and also to monitor the progress of the company and their employee;
1: THE O NET:
this is form of job analysis used in shell oil which involve physical requirement of their employee, their employee educational background, and to consider whether the employee are mental sand. mindy chapman,(2003)
this is another technique used by shell oil, its informed of research or survey to asked to respondents to extract specific information to make data comparable and to enable shell oil to analysis and minimise bias formulating about asking question.
3: THE FLEISHMAN JOB ANALYSIS SYSTEM:
shell oil make use of this system of analysis to determine their employee perceptual ability to job, their employee reaction to time and speed, ability to endure with work.
4:functional job analysis:
this is done when shell oil score their employee on bases of their relatedness to data, by considering how they perform with incumbents, it is usually done in a panel in shell oil company.
1O:1 COMPETENCY MODELLING IN SHELL OIL.
Competency modelling in shell Oil Company is based on the strategy of bottom – up modelling. The decisions about the company usually start from the lower cadre of staff in shell oil to the higher staff in shell oil.
Competency modelling in shell oil has helped the shell oil company and their employee in beneficiaries in the following ways that will be listed below:
11:1 IMPORTANT OF COMPETENCY MODELLING IN SHELL OIL.
1: HELP THEM IN THEIR PERFORMANCE APPRAISAL:
this has help shell oil to evaluate their employee altitude and their behaviour towards work. And also made them see the need to train their staffs, to also determine if an employee deserves promotions, demotion or fired.
2: SELECTION AND ASSESSMENT:
this competency modelling in shell oil has help them to determine need to recruits a new staff, and ability to select the best candidate for the job and has also help them to in their employee assessment.
this has made shell oil to identify their employee that need to be compensated.
4: SUCCESSION PLANNING:
this has help shell oil to identify the potential successors for the post require in job. c.m Solomon (1994)
5: ORGANISATIONAL PLANNING:
it has help the company to have a good organisation plan that suit the image of shell organisation
6: it has also assist the shell company in their transitional organisation change effort.
7 :its help shell oil employee to become familiar with what is expected of job
8: competency modelling has also help shell oil to crate teams with right mix of skills and ability.
9: it has also help them to screen applicants during hiring, resulting in a higher quality applicant pool.
10: it has also provided a mean to discuses strengths, areas for improvement, training and developmental opportunities with the supervisor in the organisation.
12:1 ETHNOCENTRIC APPROACH:
This form of approach occurs when shell Oil Company believes that the hot country where the refinery are built lack qualified individuals to fill senior management positions in the organisations. c.m Solomon (1994)
This approach also allows shell oil to maintain a unified corporate culture between the organisations.
This approach allows shell oil to create value by transferring core competencies to a foreign operation.
13: EFFECT OF ETHNOCENTRIC APPROACH ON COUNTRY WHERE THE SHELL OIL COMPANY HAS THEIR REFINARY.
- adaptation of expatriate manager of country where shell oil refinery was built is difficult and it’s also taking a long time.
- it limits advancement opportunity for the host country national
- this approach lead to resentment in shell Oil Company.
- it leads to lower productivity.
- its turn to increase in turn over among the group in shell oil.
- it leads to cultural myopia: this happen when shell oil failed to understand the host community where the build their refinery.
- the shell oil manager makes decisions that are ethically suspecting simply because they do not understand the culture in which they are managing.
14: THE GEOCENTRIC APPROACH IN SHELL OIL COMPANY
This approach seeks the best people for the key jobs in shell Oil Company in regards of their nationality.
This approach has made shell oil to make the best use of their human resource, and has also allowed shell oil in building cadre in the organisation.
This approach has also allowed shell oil to create value from the purist of experience curve location economic and has reduced myopia and has enhanced local responsiveness.
This approach involves shell Oil Company to increase their training of their employee and relocation cost involve in transferring managers from country to country.
15: THE POLYCENTRIC APPROACH IN SHELL OIL COMPANY.
This approach help allow hot country or community where shell oil have their refinery were too recruited for shell oil organisation.
The parent country where shell oil has their head quarter will occupy the major key positions at the corporate headquarters.
This approach has made shell Oil Company not to experience cultural myopia problem. And mistakes are not made as a result of cultural misunderstanding to which expatriate managers are vulnerable.
This approach is less expensive to embark upon and easy to maintain and the approach also allow the hot country where shell oil refinery are to gain experience outside their own country.
16:PROCESS OF ASSESSING EFFECTIVENESS OF HUMAN RESOURCE IN SHELL OIL.
1: SHELL OIL HAVE A STANDARD JOB ANALYSIS:
this first process which shell oil use in other to access to bring out effective human resource in the company by making sure that each employee identify the task require by them and the duty which to perform the task. G. de jonquiers and s. kuper 1988
2: proper observation about the work their employees are embarking upon in shell Oil Company. G. de jonquiers and s. kuper 1988
3: Shell Oil Company gives regular interview to their employee so as to identify any area of development in the company.
4: they make use of questionnaire to their staff in other to identify the area where their employees are lacking behind.
5: Shell Oil Company has a better and understandable job description for their employee.
6: shell oil company do a periodically recheck of job data in the organisation so as to have effective human resource in the company.
17:1 PLANNING PROCESS AND ITS POSITION IN MANPOWER PLANNING IN SHELL OIL COMPANY.
Man power planning process in shell oil is not only the matter of hiring and firing, it is all about keeping control of the headcount in the organisation.
Man power planning is in shell oil is to inform the business decision making process concerning the most effective use of the people within its scope of influence.
Manpower planning in shell oil comprise of having the right people, the right skills, the right place at the right time to meet shell oil company business plan. G. de jonquiers and s. kuper 1988
it’s also provide an understanding of the organization human resource which enable people to make decision to be taken as an integral part of decision making in shell oil company.
18: PROCESS OF MAN POWER PLANNING FRAME WORK IN SHELL OIL COMPANY.
1: LONG TIME PLANNING:
this is kind of planning endorse by shell oil company in other to determine external trends in the organisation, it’s also use to determine the management implications in shell organisation. It also use to issue analysis and also to determine business needs. C. Rapoport (1992)
2: MEDIUM PLAN:
this is use to forecasting requirement and staffing levels. Shell oil also uses medium plan to job design and to determine net requirement in shell Oil Company. P. krugman. (1990)
3: ANNUAL BUDGET:
this is the last stage of man power framework in shell oil when they are recruiting and promotion and transfer of staff. It also helps them to determine the training process to be embarked upon by shell Oil Company. It helps in determinening staffing authorisations and industrial relations in shell Oil Company.
19: THE PRINCIPLE OF DEMAND AND SUPPLY OF LABOUR IN SHELL OIL COMPANY.
This aspect covers the aspect where shell Oil Company recruits a suitable and qualifies personnel needed to deliver organisational goal. These aspects of shell oil principle involve supply of people of people and establish where they can be found inside and outside of shall oil company G. de jonquiers and s. kuper 1988.
This principle can be categories into the following aspect.
1: EXTERNAL DEMAND IN SHELL OIL:
this show the effect of need to increase or decrease of staff in shell organisation, by doing this shell oil company to do security check for the volunteers and paid staff which will increase the supply of the people. C. Rapoport (1992)
2: INTERNAL DEMAND OIL COMPANY: this is when shell oil have control over what activities products and service are decided upon.
3: EXTERNAL SUPPLY IN SHELL OIL COMPANY: this apply when shell oil company put the right skills in the company are been found. This has been analysis when shell oil explores the local demographic. G. de jonquiers and s. kuper 1988
4: INTERNAL SUPPLY IN SHELL OIL COMPANY: this occurs when shell oil company analysis the current skill within the organisation which has lead to development aspirations of shell oil organisation.
4: INTERNAL SUPPLY IN SHELL OIL COMPANY: this occurs when shell oil company analysis the current skill within the organisation which has lead to development aspirations of shell oil organisation.
This principle in shell oil has contributed more time or changes the role of seeking new challenges in shell Oil Company. P. krugman. (1990)
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