HRM Practices

This report provides an overview of HRM practices and management at Royal Dutch Shell. It covers the evolution of HRM, strategies of HRM, and the role of human resources in the strategic thinking and operation of the organization. The report also discusses contemporary issues and the HRM-performance link.

HRM Practices 0
Title: HRM Practices
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Executive Summary
This report summarizes an introduction to Human resource practices and management adopted at
Royal Dutch Shell. The evolution of HRM has been given and theories of HRM have been
explained. A brief overview of Hard and Soft HRM theory, Pfeffer's revised practices, Harvard
Model, and Michigan Model has been given. The Rhetoric and Reality and Contemporary issues
have been explained with relevance to Lewin: 3-Step Change Model, Workforce Planning and
HRM-Performance link. An assessment of the role of human resources in the strategic thinking,
direction setting, planning and operation of the organization has been given. A critical review of
organization in terms of Political, Environmental and other variables has been given and this is
followed by a conclusion.
Contents

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Introduction......................................................................................................................................3
Evolution of HRM...........................................................................................................................3
Strategies of HRM...........................................................................................................................5
Rhetoric and Reality and Contemporary Issues...............................................................................7
Lewin: 3-Step Change Model and Work Force Planning..........................................................................7
HRM-Performance Link...........................................................................................................................9
An Assessment of the Role of Human Resources in the Strategic Thinking, Direction setting,
Planning and Operation of the Organization...................................................................................9
A Critical Review of Royal Dutch Shell in Terms of Political, Environmental and Other
Variables........................................................................................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

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Introduction
Human Resources is a term used for describing the people that work for an organization.
The Human resource department is responsible for managing the resources which are related to
employees. The term Human Resource was first established in1960s. Human Resource Strategy
is designed to attain the desired organizational goals by utilizing the available human capital in
an efficient manner. The plans are long term and seek to develop the organization. It is the result
of Strategic Human Resource Management. The UK based company Royal Dutch Shell was
established in the year 2002 in the month of February. Human Resource Management in Royal
Dutch Shell is crucial and supports change management. The company organizes team
development programs, staff planning, and promotes diversity all throughout the company.
Royal Dutch Shell is a known name in the energy industry. It has gained a fair share of
international exposure. Further, the company also provides on-the-job training. The business-
related issues are complex and the thinking there needs to be innovative. The professional
excellence of the company is credited to the efficient HR department. The company uses the
strategy of benchmarking to achieve its Human resource objectives. The strategy of
benchmarking includes comparison of business processes and products with that of the other
organizations.
Evolution of HRM
Human Resource management has got the simplest definition which implies management of
enterprise manpower and human resources. The evolution of HRM starts with a period before
that was present industrial revolution. The society has been primarily the agricultural economy

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and had limited production (Lengnick-Hall et al., 2009). There has been a number of crafts he
which has been limited and worked within the community or village and the apprentices assisting
craftsmen. Communication channels had been limited. Industrial revolution marked the
transformation of the economy from an agricultural economy to an industrial economy.
Modernization and communication have given ways to industrial reforms. This has led to the
emergence of the personnel management with few tasks which involved (Richman, 2015).
1. Workers’ salaries and wages.
2. The housing facilities and health care facilities to be provided to the worker.
3. The record maintenance of worker.
The industrial revolution presents an extensive view of growth in the labor union. This works
best with working with factories and industries. These were subjected to long working hours and
salary was less? With growing unrest, workers started to protest and this led to the creation of
labor unions. To effectively deal with labor issues, management needs to be diplomatic and
capable of conducting politics. Therefore, the industrial relations emerged. The term Human
Resource Management has seen the major evolution after 1850.
Human Resource Management simply means the implementation of policies in the correct
way to yield the maximum possible benefit. It can be recruiting an employee, training and
developing him, retaining them and terminating poor employees. The main aim of Human
Resource Management is to plan efficiently and strategically. It should be ahead of time, keeping
in view the company's resources and abilities. Moreover, it should be able to provide direction to
human resource personnel. The Royal Dutch Company is known by the name ‘Petroleum Giant'
(Wang and Singh, 2014).

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Strategies of HRM
Hard and Soft Theory and Guest Excellence Syndrome
The hard theory lays emphasis on the calculative and quantitative business aspects and
manages the headcount resource. In a rational approach, it is another means of production. Hard
HRM lays emphasis on the significance of strategic fit. This implies human resource practices
and policies are linked with the strategic fit of the organization. The ultimate aim is of enhancing
the competitive advantage. There are two perspectives of HRM which are viewed as opposing.
What strikes is the term, must be capable of providing signals to opposite assumptions set
(Bertomeu and Marinovic, 2016). Guest excellence syndrome draws attention over the both hard
and soft aspect in constructing the theory for HRM. This contains a reference for 4 different
HRM policy goals. This includes strategic integration. This has been closely associated with the
view of soft theory. Shell Company has opened up number of job positions and will select the
candidates who have passed bachelor degrees and master degree. Shell will provide quality of
techniques and services and on the job trainings.
The Guest has acknowledged the difference which exists in the assumptions of hard and
soft HRM theories. HRM approach has a different feature that incorporates soft elements like
commitment and hard elements like strategic direction. The incorporation of hard and soft
theories within one model can be considered as problematic. There are two phases of managerial
control and human nature strategies (Beer, 2017).
Pfeffer’s Revised Practices
The current trend that is prevailing in the area of Human resource management is
‘datafication’. It means utilizing big data to change Human Resource processes. These processes

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range from recruitment to training to mentoring and more. The technological advancement has
made it easier for the Human Resource department to access and analyze huge data in a short
amount of time. In 2010, Royal Dutch Shell reviewed its competency management
infrastructure. The company focused greatly on competence development and competence
assurance (Rao, 2013).
The human resource department at Royal Dutch Shell is high-profile. It has a key role to play
in the implementation of the ongoing international human resource management practice. For
most companies, foreign assignments fail, but Royal Dutch Shell was different. It excelled in its
overseas projects because of the well managed Human Resources and they are updated with the
employees in each of their setups, in 2010, approximately 7500 expats were employed by the
company in a newly implemented model. This model was very expensive and risky but it
achieved success (Laker and Powell, 2011).
Harvard Model
The methodical framework for Harvard Model which is offered to industrialists comprises of
six components (Jenkins and Delbridge, 2013).
1. Stakeholder Interests
2. Human Resource outcomes
3. Situation Factors
4. HRM policy choices
5. Feedback loop
6. Long term results.

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The rationale for employee selection through Shell company is to select the suitable employees
those are providing good performance and services used in public. Shell company will provide
opportunity on the working environments and provide equal opportunity. The final assessment
will be based on the achievements of the candidates.
Michigan Model
The Michigan Model is considered as voter choice theory. This is based primarily on
party identification and sociological factors. This has been proposed through political scientists
during 1950s. It explains the voting behavior with respect to terms of psychological attachment
voter and attachment to the political party. This will be created for many years. According to the
model, the party attachment will be stable and formulated through external social influences.
This includes parents, family members and people present in the sociological spectrum. In the
present era, the model is being challenged through valence and spatial models (Kapoutsis,
Papalexandris and Thanos, 2016). Shell Company operates in more than one hundred and ten
countries and have vast experiences as well as expertise. Shell has established training centers
and provides a vast range of development activities for the employees.
Rhetoric and Reality and Contemporary Issues
A company called Knack recognized six attributes whose ideas would more likely to
succeed at Royal Dutch Shell. These were the ability to switch tasks, social intelligence, mind
wandering, and fluency in goal orientation, implicit learning, and conscientiousness. At present,
Royal Dutch Shell has a staff of over 90,000 people in over 90 countries. This only happened
because of their efforts to keep up with emerging trends (Stone and Deadrick, 2008). They train
their employees to work in a global aspect. Furthermore, the organizational culture is open,

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strong, and cohesive. The people work together irrespective of their ethnicity, sex, religion,
color, etc. Royal Dutch Shell is different and far more successful than its competing brands. The
reason is the ever increasing efforts of the Human resource department and keeping a global
mindset which is open to the latest trends (Gill et al., 2018).
Lewin: 3-Step Change Model and Work Force Planning
The term of change management has been familiar with all the businesses today. The
question is how businesses need to manage the change. This varies enormously with the nature
of business and people involved. The key part is how people understand change procedures.
1. Unfreeze-This is known as the first stage in the change process. This involves how
preparing the enterprises to accept the change is necessary. This involves breaking the
existing status quo before the organization builds new methods of operating. Key to these
methods is the development of compelling message as to why the existing methods
cannot continue. This is considered as easy to frame and pointing towards the worst
financial consequences, declining sales figures (Eastman, 2012). This shows that things
will need to go for a change which everyone will be able to understand. In order to
prepare the enterprise successfully, it is essential to start with the core. The individual can
challenge the values, beliefs, behaviours, and attitudes. The foremost past is changing
process and this is more difficult as well as stressful.
2. Change –when uncertainty has been developed in the unfreeze stage, the change stage
comes. This is the stage where individuals will be involved with resolving the uncertainty
and look for the better ways of performing things. People start believing and start acting
in the methods which will be supporting the new direction. The transition that takes place

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from the unfreeze stage to change stage will not happen overnight. People will take some
time for embracing the new direction and participating actively in change.
Workforce Planning-This refers to a procedure of ensuring whether an organization has present
and future access to human resource and can perform efficiently. This workforce planning
involves the identification of current and future needs of personnel and exploring the cost-
effective procedures for recruitment. There is an element of a continued analysis of effectiveness
and implementation of necessary measures like development and learning initiatives which can
ensure the workforce will remain effective (Vairaktarakis, Szmerekovsky and Xu, 2016).
HRM-Performance Link
The different studies in human resource management have been examining the
associations which exist between performance and human resource management. Researchers
are focused on how enterprises can implement HRM strategies. This will be using conventional
content perspectives (Davies, 2010). There greater attention must be on the strategic human
resource management and understanding of internal dynamics through which HRM systems can
be defined. It is essential to consider the significance of formulation procedures which are
recognized with the strategic research procedures. There must be an intensive model of Human
resource management strategy and its formulation process.
An Assessment of the Role of Human Resources in the Strategic Thinking,
Direction setting, Planning and Operation of the Organization
Human resource management has emerged as a discipline which focuses on the human
resource contribution. In order to understand human resource as a vital element, the following
key points are given-

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1. Recruitment-The procedure of searching and hiring the qualified candidates from
internal and external sources of an organization. This is to be done in a cost-effective
and timely manner (Marie Ryan and Derous, 2016).
2. Selection-This selection is the process of choosing the right individual and the person
selected must be suitable for the vacant job position in the organization. Selection can be
also referred to as the procedure of interviewing the manpower.
3. Training and Development- This is considered as one of the primary functions of
human resource management. Training refers to the systematic setup where people will
be given instructions. Development refers to educational growth and holistic process of
generating maturity in managerial levels (Gavrel, 2015).
4. Learning-This is considered as the process of acquiring and modifying the existing
knowledge. The ability of learning is possessed through human and leaning can be
immediate or it can be induced through a single event.
5. Performance Appraisal-This is considered a regular review of the performance of the
employee. It also takes into account the overall contribution to the organization. This
evaluates the employee's achievements and skills.
6. Employee Engagement-This is considered a workplace which results in appropriate
conditions for all the participants of the organization (Pichler, 2012).
7. Psychological contract and flexible working-The evidence through results of flexible
contracts on employee behaviour and attitude are reviewed with psychological contracts.
8. Employee Relations-Trade Unions-Employee relationships are considered as critical
for the success of an enterprise. This involves better communication skills and flow of

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information between employees and employers. Employee representation can be in the
form of work councils and trade unions.
9. HR Function-Change Management and Leadership Practices- The working
organizations need to implement the changes in the correct form. The consequences can
be inconvenient like duplicated efforts and losing business opportunities. Companies
which are able to effectively manage the change can get distinct leadership in the global
market. The effective management takes place through alleviating the uncertainty which
exists among employees through leadership practices (Brijesh Goswami, 2013).
10. Ageing Workforce-The aging workforce involves the people who have achieved a
certain age and can be considered as people who are above 50 and older.
A Critical Review of Royal Dutch Shell in Terms of Political, Environmental
and Other Variables
When there is government dealing political complexities is bound to take place. With an
organizational design like Royal Dutch Shell’s, it is hard to avoid these complexities. Corporate
change results from internal and external pressure and to several threats and opportunities. The
sophisticated planning techniques are the need of the organizational structure. The main focus of
strategic planning was the organization’s adaptation to future goals and environment. Every
organization has its own structure and process of adaptation but there are a few components that
are common to all. In 1973, oil prices increased to an unexpected height. It was a shock to the
economic system. It leads to a price change in most commodities. The adjustment took a lot of
time and then again in 1979, the Iraq-Iran war had its own severe impacts. The consequences
extended to the Western as well as Eastern economies. In order to understand Royal Dutch

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Shell’s strategic planning, it is vital to understand the variables like political and economic
factors. These attributes affect the largest and richest of organizations. The factors are
uncontrollable and thus they result in fluctuations in revenue. Royal Dutch Royal Dutch Shell,
instead of predicting, believes in being prepared for the future uncertainties (Farndale and
Kelliher, 2013).
Preparing for the future is crucial when the reaction speed of an organization is slow as
compared to environmental change. Being prepared in advance comes in handy when there are
environmental changes beyond control. Also, the situation can be perceived faster and the
decisions will be quick. The system at Royal DutchShell is designed in a way that it copes with
the external threats in different ways (Soltani and Wilkinson, 2018). The company’s internal
complexity and diversity helps in managing the external complexity to a significant extent. The
scientists, researchers, and innovators at the organization keep working to battle the
technological challenges and manage the changes effectively and efficiently.
Conclusion
The Royal Dutch Shell group is one of the most ambitious and driven organizations. It
believes in organizational restructuring from time to time. Royal Dutch Shell is a multinational
oil and gas company. It is the second largest in the world and its ownership is centralized, the
decision making, however, is in the hands of the top management only. It generates profitable
growth and also invests in the development of technology. They closely work with their
customers and partners. After the analysis of the Royal Dutch Shell, it is quite clear that
employees enjoy various motivational factors. They have job satisfaction, growth opportunities,
and many more. The working environment is skillful, high-quality, and superior. The employees

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in Royal Dutch Shell believe that their performance is appreciated and rewarded. The company
views strategic planning as a form of entrepreneurship. It helps in getting a better understanding
of the unpredictable environmental factors. The planning system at Royal Dutch Shell is very
unique. The company also believes in the vitality of proper Human Resource Management. The
planning needs to be focused on growth rather than control. The company has witnessed
humungous changes in political and environmental scenarios. The company owns a multi-
cultural hiring practice and three-dimensional matrix structure. Over the years, it has managed to
fight the adversities with strategic human resource management.
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Employee Experience. Human Resource Management, 52(6), pp.879-897.
Eastman, C. (2012). Working with Toshiba, Lewin and Dewey: a journey into the heart of
change. Higher Education, Skills and Work-Based Learning, 2(2), pp.132-140.

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Gavrel, F. (2015). Participation, Recruitment Selection, and the Minimum Wage. The
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