Human Resource Management in Shell Trading International Limited

HUMAN RESOURCE MANAGEMENT 1
HUMAN RESOURCE MANAGEMENT
Student’s Name
Course
Professor’s Name
University
City
Date

HUMAN RESOURCE MANAGEMENT 2
Human Resource Management
Executive summary
Across all organizations, human resource management is a critical asset. The victory
of any organization depends on the efforts of the human resource management, especially at the
current world where the economy is becoming fluxing (Noe at el., 2017). However, there has
been much complexity in the management of employees and staffs, mainly due limited talented
resources. However, people are learning in order to gain appropriate skills, to perform a
particular task. Therefore, the management of various human resources in any business
organization is the principal function of human resource managers.
The scope of this research aims at assessing an overview of Shell Trading
International Limited. Moreover, the reports give a detailed discussion concerning purpose of the
human resource roles, functions and responsibility of the human resource management.
Furthermore, this paper aims at assessing approaches to workforce planning. Also, the
approaches to employees’ relation and engagement will be part of the discussion. Moreover, the
paper will discuss the external and internal factors that might affect human resources decision
making in Shell industry. Finally, the paper will examine the application of human resource
practices in Shell industry.
Introduction
An overview of Shell Trading International Limited Organization
Shell is an organization based in London, United Kingdom. The organization was
incorporated in 1998, and it is a subsidiary of Petroleum Company Limited. The company deals
with a wide range of trading activities, such as Oil products, Power and chemical, Gas, freight,
and other environmental products (Sharman, 2010, p.129). It mainly conducts its trading
business in Europe, Eastern, and Western Hemispheres. However, recent reports show that it is
one of the biggest oil tankers and fleet carriers around the globe (Jefferson, 2012, p.187).
Moreover, it has a significant role, since it provides maritime expertise to various external
customers and also other Shell companies.
Recent studies report that the extensive worlds Shell trading network allows the
organization to trade in 24-hour market presence. Another report from the same reviews says that
Shell company main active product is oil; however, they get oil from various suppliers and sell it
to many customers inside and outside the shell industry. Also, the same statistics apply to other
shell products such as natural gas, refined products, feedstock’s, and power. The wide range of
products has allowed Shell to dominate the largest worlds market share as reported from the
global statistics (Rack, 2017).
Shell industry aims at creating value to customers, shareholders, and other counterparties
around the world. However, Shell International Limited is opting for some changes in the
departments which aims at the restructuring of the departments. It is evident that Shell deals with
a wide range of products whereby various task are assigned to different departments. Therefore,

HUMAN RESOURCE MANAGEMENT 3
to enhance the effectiveness of the organization, some changes have to be incorporated; thus, one
of the critical differences in the Shell industry is departments.
Purpose and functions of HRM in Shell Trading International Limited
Human Resource planning
Scholars report that this function pertains to demand and supply forecast of human
resources in any organization, thus determining whether the organization has shortages or
surpluses (Cascio,2015). Therefore, human resource planning is a significant component within
any organization to make sure that the rights human resource is available on time to attain the
organizational goals and objectives. Studies show that human resource planning follows
organization deliberate plans.
Shell is among the industries that implements the concept of human resource planning.
According to the latest reports, the company has a well-organized human resource department
that, make sure there is effectiveness in human resource planning. However, since Shell industry
has a variety of products, it is essential that the industry should have a well-organized human
resource planning.
Job Analysis
Landau & Rohmert argues that the role of human resource management is to analysis
various jobs according to the responsibilities and the requirements of the specific task, and thus
determine the best human resources suitable for a particular position (2017). Therefore, job
analysis is a critical component to any organization wishing to have productive human resources.
In the case of Shell industry, where there are varieties of products, job analysis is a significant
approach since it helps the human resource department to categorize various employees
according to their skills, thus placing to their right job.
Recruitment and Selection
Research shows that recruitment pertains to the process of attracting potential employees
through advertisement to apply vacant position in any business organization (Lievens &
Chapman, 2010, p.137). On the other hand, a similar study says that selection pertains to
identification of the right person from a variety of candidates where the candidates pass various
stages of selection. Therefore, recruitment and selection are significant components of any
organization. According to recent reports, Shell industry has a capable human resource
department that conduct selection and recruitment every year.
Orientation & Induction
Orientation & induction are crucial functions of human resource management. Scholars
argue that this process follows recruitment and selection. According to Lunenburg (2011, p.4),
orientation pertains to familiarizing new comers with the organization culture, values, ethics, and
working conditions. For a company like Shell industry, which is very big, the process of
orientation is a crucial function which familiarizes the new employees with various departments
and the organization background.

HUMAN RESOURCE MANAGEMENT 4
Training and Development
Latest findings show that recruitment and development are vital functions of improving
the knowledge of the current employees to increase their productivity. Furthermore, it is the
process of imparting knowledge and skills to the employees to increase their efficiency and thus
improve performance in the organization. Recent reports show that Shell trains its employee
every year. Therefore, similar reports show that Shell industry improves in its productivity every
year by 30% (Cohen, 2017, p.154).
Performance Appraisal
Studies say that performance appraisal is done after an employee has several years of
services in the respective organization (Brown, Hyatt & Benson, 2010, p.386). Performance
appraisal is an essential function of HRM. Thus, the assessment of workers helps to determine
future promotions, increments in salary, and incentives. Authors reports that Shell industry
highly employees this function in its operations.
Compensation planning and Remuneration
According to studies, it is the role of HRM to establish various rules and regulations
regarding compensation planning and Remuneration (Patnaik & Padhi, 2012, p.42). According
to similar studies, employees should be compensated depending on their work done. Reports
from Shell industry show that it has a well laid down established rules and regulation regarding
compensation. Better compensation policy prevents conflicts between the employees and the
management.
Weaknesses and strength of recruitment and selection
Recruitment & selection are significant functions of HRM in any organization. Studies
say that recruitment pertains to attracting candidates to apply the employment opportunities
(Trautman, 2012, p.75). On the hand recruitment is the process of choosing a suitable candidate
out of many applicants. Therefore, the quality of competent human resources depends on these
two functions. However, the process of recruitment & selection has some strength and
weaknesses.
` According to SWOT analysis, recruitment and selection are accompanied by various
strength and weaknesses (Helms & Nixon, 2010, p.220).
Strengths
• Organizations management highly supports the recruitment process.
• Correction of complete and accurate job information which enhance the efficiency of
the recruitment process
• Use of various applicant tracking system increases the effectiveness of the recruitment
process and selections