Organizational Restructuring of Royal Dutch Shell: Evaluation and Analysis

The report provides an insight into the organizational restructuring of Royal Dutch Shell, including an evaluation of the organizational structure, approaches to leadership, and the dominant organizational behavior theory. It also critically analyzes and evaluates the change within the organization, along with an explanation of the HR strategies that supported such transition.

Running head: MBA ASSIGNMENT
MBA Assignment
Name of the Student:
Name of the University:
Author Note:

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Executive Summary:
The report aims at providing an insight into the organizational restructuring of Royal Dutch Shell
also known as the Shell. The report commences by providing an evaluation of the organizational
structure at shell, the approaches to the leadership and the dominant organizational behavior
theory at Shell. The report then goes on to critically analyze and evaluate the change within the
organization along with an explanation of the HR strategies that supported such transition. There
is also a discussion about 12 month personal development plan along with an explanation of how
the personal development objective influences employability within the workplace and the wider
society. The report also puts forward a critical awareness of the preferred method of learning
and the contribution it has in interacting with the others.

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Table of Contents
Introduction:....................................................................................................................................3
1.a. Evaluation of Organizational Structure, Approaches to Leadership and the Dominant
Organizational Behavior Theory in Shell........................................................................................4
Organizational Structure at Shell.................................................................................................4
Approaches to Leadership at Shell...............................................................................................8
Organizational Behavior Theory at Shell...................................................................................10
1. b. Critical Analysis and Evaluation of Change within Organization and Explanation of How
HR Strategies Support such Transition..........................................................................................11
Change within Organization......................................................................................................11
HR Strategies that Support the Transition Process ........................................................14
2. a. Personal Development Plan Based on 12-month’s Development.......................................16
2. b. Explanation of how the Personal Development Objectives Influences Employability Within
Workplace and Wider Society.......................................................................................................23
3. Demonstration of Critical Awareness of Preferred Method of Learning and its Contribution in
Interacting with Others..................................................................................................................24
Conclusion:....................................................................................................................................26
References:....................................................................................................................................27

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Introduction:
The aim of the report is to provide an insight into the organizational restructuring of
Royal Dutch Shell commonly known as Shell (shell.com 2018). It is a British Dutch gas and Oil
Company incorporated in United Kingdom and headquartered in Netherlands. The Shell Group
is one of the unique oil major across the world found in the year 1907 through merging the
operations and assets of Royal Dutch Petroleum Company based in Netherlands and the Shell
Transport and Trading Company based in Britain (shell.com 2018). In fact, it one of the oldest
and the biggest joint ventures across the world. The company however underwent a restructuring
that involved shifting from the geographically based structure to a structure based on business
sector that included elimination of close to 1000 corporate positions, sale of London
headquarters and redesigning of the system of control and coordination. The restructuring of the
company is precipitated through realization that it required to bring about a change in the way it
contributed to business while retaining the position of the largest energy and the chemical
company across the world thereby ensuring a substantial return to the shareholders within the
turbulent environment of the industry. The restructuring not only increased the control and
coordination but it helped the organization in controlling cost, focusing on the capital
expenditure and pruning the portfolio of the business. The restructuring also marked the highest
Return on Equity (ROE) and the Return on Capital Employed (ROCE) in a span of ten years
(Bahree 1998). It also resulted in recovery of the prices of oil during a year thereby resulting in
recovery of the prices of oil across the year. The company also has a complex organizational
structure that the Shell refers as governance responsibilities. Besides, the daily management
activities of the Shell Group referred as the executive responsibilities of the group is complicated
and the structure of management of the group does not correspond to formal structure. The report

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commences with the evaluation and analysis of organizational structure, approaches to the
leadership and the dominant organizational behavior theory within organization. There report
also puts forward a critical analysis and evaluation of Shell in terms of the changes within
organization along with a mention of how the HR strategies support such transition. The report
also helps in creating a personal development plan based on a 12-month development period
through explaining how the personal development objectives influence the employability in the
workplace and the wider society. The report even demonstrates a critical awareness based on the
preferred way of learning and the interaction with the others.
1. a. Evaluation of Organizational Structure, Approaches to Leadership and the Dominant
Organizational Behavior Theory in Shell
Organizational Structure at Shell
The uniqueness of Shell depends not only on the structure of the joint venture but also the
internationality (shell.com 2016). In fact, it is described as one of the most renowned
international organization after United Nations and Roman Catholic Church. Shell group of
Petrochemicals and Energy companies works with close to ninety thousand employees in close
to over 90 territories and countries. Shell represents one of the largest companies of the world
thereby holding the sixth ranking in the listings of top 2000 public corporations put forward by
Forbes Global. The strategy followed by Shell reinforces its position as leader in oil and gas
industry thereby providing competitive shareholder return that helps in meeting the demand of
global energy in responsible manner. The company primarily conducts its business from United
States and explores crude oil and the gas products either through joint ventures or independently
or through the subsidiaries of the parent organization (shell.com 2018). The internal

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organizational structure of Shell is naturally tall that remains further divided based on the
geographical reasons, goods, services and functions. It is also a very centralized or formalized
organization that follows the hierarchical structure of plans with the most important being
mission to the other factors in sequence. In other words, Shell has a complex structure and wide
network outlet that allows it in functioning best under matrix structure (shell.com 2018). This
implied that the employees remained grouped based on the product and function simultaneously.
The Formal Structure:
From the legal perspective and the ownership, the Royal Dutch Shell or the Shell Group of
Companies includes four categories of companies. This includes(Mullins 2010):
1. Parent Companies: The Royal Dutch Petroleum Company of Netherlands and Shell
Transport and Trading Company Plc of United Kingdom had an ownership over the shares of
group holding companies that enabled them in receiving dividends in proportions of sixty
percent and forty percent (shell.com 2018). Here each of the company had the shares listed
separately in stock exchange of US and Europe, each with different Board of Directors.
2. Group Holding Companies: Shell Petroleum of Netherlands and The Shell Petroleum
Company Ltd of United Kingdom had shares in service companies as well as operating
companies of group (Whiteside 1994). Besides, Shell Petroleum Netherlands owned shares of the
Shell Petroleum US that represents the parent of the operating firm in US, Shell Oil Company.
3. Service Companies: During the beginning of 1990s, there have been nine service
companies located either in Hague or in London (shell.us 2018). These included Shell
International Petroleum Company Limited, Shell Internationale Chemie Maatschappij B.V, Shell
Internationale Petroleum Maatschappij B.V., Shell International Chemical Company Limited,

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Shell International Marine Limited, Billiton International Metals B.V., Shell International Gas
Limited, Shell Coal International Limited and Shell Internationale Research Maatschappij B.V.
4. Operating Companies: This comprises of over 200 companies in close to 100 countries
who varied in sizes. This ranged from one of the largest petroleum company in US to the smaller
marketing firms like the Shell Cambodia and the Shell Bahamas. All the operating companies
had operations within single country. There were some that performed activities like production
and exploration, marketing, refining, gas and coal within single sectors while others like Shell
Canada, Norske Shell and Shell UK operated across the multiple sectors.
4
Figure 1: Diagrammatic Representation of the Formal Structure of Royal Dutch Group
Source: (shell.com 2018)

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During early 1960s, Royal Dutch Shell had a matrix structure within the service
companies for managing the operating companies (Jones 2013). This structure was observed as
one of the critical ingredient in Shell’s ability for reconciling the independence of operating
companies within the efficient coordination of regional, business and functional commonalities.
This organizational structure continued until the 1990s (Channon and Jalland 2016). Principle
executive of the service companies who have been the chosen coordinators represented the three
dimensions of the matrix structure of Shell. In the beginning of 1995, the team of the senior
management included a committee of managing directors represented by the chairperson, vice
chairperson and the three managing directors. It also included the principal executives of service
companies that included sector coordinators, regional coordinator and the functional coordinator.

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Figure 2: Diagrammatic Representation of Matrix Structure of Shell
Source: (Jones 2013)
Approaches to Leadership at Shell
The Committee of Managing Directors (CMD) had a managerial control over the Shell
Group(15). The committee had five managing directors of which three members belonged to the

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management board of the Royal Dutch Petroleum and two members belonged to the Shell
Transport and Trading. The Royal Dutch Shell simplifies the strategy of leadership progression
for making the process easier and in understanding and helping the development of the key skills
(Schein 2004). Shell has chosen four key principles of leadership development for building the
leaders. The four step approaches focuses not only on individual leader but also on growing the
employees and building a team. This included authenticity, collaboration, growth, performance
and growth.
Authenticity: The aspect of inclusion and diversity is relatively easy when the company
possess a strong brand in hiring diverse people. However, diversity do not have a positive impact
if it is not accepted and different capability and skill are not used for getting better outcomes of
business(Gardiner 2016). This is when the concept of inclusion comes into effect and what the
management does around inclusive leadership is to teach, support, help and coach leaders in
listening intently to the people and literally include diverse ideas and thoughts in the decision
making process for getting better outcomes.
Collaboration: Typical collaboration within corporate world is viewed as the teamwork
and working together for reaching the same goal and the similar set of task. The leader however
contributes to having a greater involvement (Carmeli, Gelbard and Reiter‐Palmon 2013). It
meant bringing the people together who might come from different environments whether
personal or work. The difficult part of collaboration remains in building the bridges with
different people. In today’s world with expansion of the companies into the other countries there
should be bridges not only built within other cultures but also within the business where a
digitized strategy is required for building bridges with the people good at it. Therefore,

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collaboration refers to being curious about the proven capability of being successful with the
people who have different drives.
Growth: Shell deals with the growth in the numerical way thereby focusing on the
financial performance and the figures. This neither energizes nor excites the employees until
growth is described in language beneficial to the employees. It is therefore necessary to talk
about the career opportunities created by growth (Tannenbaum, Weschler and Massarik 2013).
Provided there is an expansion strategy for growth, it would help in opening up opportunities for
people for working outside the home country. When it is about size growth, it allows the
opportunities of the people in dealing with the bigger challenges.
Performance: One of the most important leadership duties lies in the measurement and
the management of performance (Goetsch and Davis 2014). This is done with the green and the
red lights on dashboards of the key performance indicator.
Organizational Behavior Theory at Shell
This matrix organizational structure of Shell followed a bureaucratic theory. In other
words, the matrix form represented a superimposition on the hierarchical structure thereby
resulting in responsibilities and dual authority (Christensen et al. 2014). In such cases, the
permanent functionality of the departments allocates the resources to be shared amongst the
departments and the managers. The bureaucratic theory put forward by Weber put an emphasis
on the need for hierarchical structure for power (Thompson 2017). It put forward the importance
of labor division and specialization. In this theory, formal rules were bound with the hierarchical
structure fir insuring uniformity and stability. Beetham (2018) also stated that the notion of the

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organizational behavior represented the network of the human interactions where all behavior
were understood simply by looking at the cause and the effect (Huczynski and Buchanan 2013).
1. b. Critical Analysis and Evaluation of Change within Organization and Explanation of
How HR Strategies Support such Transition
Change within Organization
According to Grant (2015), between early 1970s and 1990s, the petroleum industry
across the world underwent a transformation through incorporation of fundamental changes.
Thus, within 1985 and 1993, all the oil majors of the world went through extensive restructuring.
This restructuring implied simultaneous radical change in the strategy and organizational
structure within fixed period (Johnson, Scholes and Whittington 2005). The vital features in
restructuring the oil major include:
 Reorientation of the goals around the value maximization of the shareholders
 Greater selection of strategies involving divestment of the unprofitable business,
refocusing around the core gas and petroleum business, withdrawal from the countries
where the investments does not seem justified in terms of the returns earned and
outsourcing of the activities that could be efficient performed by the outside suppliers.
 Cutting back on the staffs especially at corporate level
 Reduction of excess capacity through closure and sale of refinery along with scrapping
oceangoing tankers
 Decentralization of decision-making from the corporate to the divisional levels and from
divisional to the units of the business levels

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 Shifting the base of the organizational structure from the geographical organization
around the regions and the countries to the product divisions worldwide
 Ensure de-layering through the elimination of the administrative layers inside the
structures of hierarchy. For instance, Amoco broke three of the major divisions including
downstream, upstream, and the chemicals. The 17 business groups reported directly to
the corporate center.
The key issue lay in preparing Shell for an increasingly tough business environment
(shell.com 2018). The managers put forward an anticipation of an increasingly forceful
competition for Shell. The business conditions of today define a flat margin with lower oil prices
continued in the future (Trompenaars, and Hampden-Turner 2012). However, the vision of
Royal Dutch Shell lay in increasing the competitive discontinuity and surprise, of increasing the
change and the differentiation of the skills required for attaining success. This would also help in
increasing the demands of the people at front line for attainment of accountability within the
framework for clear business objectives along with an access to the global source of the
specialist expertise.
However, within the Shell, proponents of the organizational change that included heads of
several operating companies, finance function and group planning had little success in
persuading committee of the Managing Directors in the need for the large-scale change. Cor
Herkstroter became the Chairman of CMD in the year 1993 (royaldutchshellplc.com 2012). He
was a Dutch accountant who contributed most of the career at Shell and became a pioneer of the
change process. The fellow executives described him as one who did not exuberated charisma
and preferred the written communication. However, he was respected widely for courage and
intelligence

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Beurden (2017) stated that the key force behind redesigning lay in the desire of having
simpler structure where the reporting relationships would be clear thereby allowing the corporate
centre in exerting effective control and influence over the operating companies. Besides, a
simple organizational structure would enable in the elimination of certain cost and inertia of
bureaucracies belonging to the central office that helped in building the elaborate committee at
Shell. It was also necessary for improving the coordination between operating companies.
However, the coordination should depend on business sectors instead of geographical regions.
Globalization in world economy and the breakdown within vertical integration of the major oil
providers implied that most majors recognized the business divisions across the world (Kotter
1995). Most majors represented upstream, downstream and the chemical division within the
worldwide responsibility. For Royal Dutch Shell, achievement of integration across varied
business within country or within the region was of lesser importance that the achievement of
integration in the business across the different regions and countries. For instance, in the process
of production and explorations there are critical issues that remain attached to application and
development of newer technologies thereby leading to the sharing an ideal practice (Bond and
Seneque 2013). However, in the downstream, critical issues related to the pursuit of operational
efficiency, rationalization of capacity and the promotion of company.
In the year 1995, Cor Herkstroter, chairperson of the committee of the Managing Directors
presented a speech to the employees of Shell across the world and outlined the core aspects of
reorganization of Shell Group of Companies that were supposed to be implemented by 1996.
During the time, occurrence of unexpected events enhanced the internal momentum of the
change. Shell faulted itself on the ability of producing return on capital for meeting the level of
the effective competitors, in managing environment and health safety while providing a

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response to the broader expectations of the society. Then there was the Brent Spar incident that
represented carefully evaluated plan for disposing off the giant oil platform of North Sea within
depths of Atlantic (Hansen 2013). This led to an outcry from environmental groups that included
the Greenpeace. The boycotting of the products of Shell by the consumers resulted in massive
loss of sales.
HR Strategies that Support the Transition Process
Dulebohn and Johnson (2013) stated that implementation of change or transformation
helps an organization in evolving its processes for gaining competitive advantage. The task
becomes more challenging in case of a larger organization. It is when the strategies of HR come
into play. The proximity of HR to the people of the organization makes it easier for organization
in influencing the leadership and providing the appropriate framework for supporting the change
within the workplace.
1. The HR strategy confirmed that organizational change is possible: Even when the
leader knows the experience of employee requires improvement they act skeptical about efforts
of change management (Bratton and Gold 2017). The skepticism remains justified, as there have
been examples of non-transpiring culture change despite the change not turning well. The HR
leaders have contributed to the skepticism by addressing it head on. They shared how the Shell
achieved success while brining about a positive change in the culture in past. Besides, the HR
leaders also contributed in communicating the action plan. This ensured how the people at all
levels were accountable. They also contributed in capturing the feedback from the employees,
thanking and acknowledging the feedback while taking the necessary action.

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2. The HR strategy equipped Business Leaders with Appropriate Tools: Here the HR
made sure in equipping the business leaders with skills for driving change within Royal Dutch
Shell. For most of the senior leaders, can be new and uncertain path. It is not enough in engaging
the leaders of the business unit in getting to the input necessary input for and what needed to
change. The HR should focus on technology for driving the tools that would drive in a more
accessible organizational change (Maheshwari and Vohra 2015).
3. The HR strategy is equipped to produce necessary support: Business leaders remain
responsible for putting in action any of the changes within the organization. In Shell, the leaders
have received support from the HR in each of the steps along the way. Part of the support lies in
successful management of the hands off throughout journey. During the hand offs, HR
reinforced a message of shared ownership and collaboration which is clear to the business
leaders.
4. The HR strategy also contributed in using actionable tools and solutions in driving
organizational change: The HR also contributes in using the employee feedback for measuring,
facilitating and supporting the desired change in organization that helps in effectively
implementing the learning and the ongoing action steps.
5. The HR Strategy Played the Role of Watchdog: The HR department played a vital role
in re-thinking the organizational design in Shell for bringing about a change and facilitating
implementation of the new process (Sharma 2016). This implied that HR played a crucial
monitoring role. However, during the phases of the change, HR will guarantee the cultural
integrity of the company thereby making sure the processes are harmonious and coherent.

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6. The HR Strategy in Sharing Strategic Vision: The business intelligence and expertise
of HR contributed in sharing strategic vision with the finance and marketing and other
department of organization. The HR also made sure that they are can easily influence the change
adoption through the strategic policies of HR in the fields of the remuneration, hiring and
succession (Bailey et al. 2018).
7. The HR Strategy Contributed in the Establishment of Change Agenda: The HR not
only recommended a calendar but also defined milestones that required to be reached by both the
organization and the employees through time. The HR also made sure that the systematic
procedure is followed in ensuring complete adheres to the employees to the change (Sparrow and
Cooper 2014).
8. The HR Strategy also helped in anticipating the emotional roadblocks: The HR also
helps in anticipating the negative reactions put across by the employees and the managers during
the change process (Azuara 2015).
9. The HR Strategy also ensured training managers: Before the transformation
happened the HR manager accompanied the trained managers in becoming good agents of
change. Besides, the HR manager also provided them with a purpose and meaning for
engaging in business transformation. The HR also made sure that they actively listened to
the managers for accompanying them throughout different challenges (Monks et al. 2013).
2. a. Personal Development Plan Based on 12-month’s Development
An employee needs support in non-controlling manner that helps in empowering the self-
development and therefore aid the behavioral choices of the learning (Pedler, Borgoyne and

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Boydell 2006). This result in enhanced motivation and the employee experiences sense of self-
competence thereby resulting in a control over his behavior. Before devising the personal
development plan, I have identified some weakness of own that needs to be developed for
influencing the employability within the workplace and the wider society. Some of these
weaknesses include:
 I did not take additional initiative in learning academically
 For producing good documents I will have to improve my business and
academic writing
 I do not have a good business or academic writing skill for producing good
documents
 I do not have a good presentation and communication skill with no frequency of
exposure to the different audience
 I neither accept or argue the dictatorship of the manager even when it does not
convince me
 I need to be more assertive
 I am an introvert that allowed me to enjoy better relations with the people
 I am not good at multitasking even when I will have to meet deadlines and
priorities. Besides, I cause delays and stress in getting distracted and doing bits
and pieces of work requested. Further, I also procrastinate and panic with the
approaching deadline
 I face difficulty in dealing with the interruptions.
 I unable to maintain a proper work life balance.

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Development Objectives Activities
Undertaken for
Achieving Objectives
Support /
Resources
required for
achieving the
Objectives
Target Date
for achieving
the objectives
Actual
Date for
Achieving
the
Objectives
1. Gaining substantial
experience in managing the
budget
Planning, Submitting
and controlling the
budget for Shell by
end of the first quarter
Access to the
sources for
relevant
information and
compliance to
the budget
process
January- April,
2019
By April
2019
2. Managing the challenging
project and thereby
delivering it as per the
schedule and budget
Planning and gaining
substantial experience
in the project
management
Access to the
shareholder
feedback, budget
and schedule
variance
May – August,
2019
By August,
2019
3. Improving the training
skills
1. By surveying the
employees
2. By aligning training
Enough support
for successful
completion of
August-
September,
By
September,

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with the operational
goals of the
management
3. Through innovation
and measuring results
the training 2019 2019

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4. Obtain professional
certification
By enrolling in various
courses in material
management and
technical
communication
Availability of
the required
course so that I
am able to attain
professional
certification is
attained by Q4.
September-
December,
2019
By
December,
2019
5. Developing and pitching
the business case for new
product
Development of the
strategic planning
abilities
Successfully
completing the
business case,
budget approval
and feedback
July –
September,
2019
By
September
2019
6. Leading the development
of Shell team for
representing the team with
the shareholders, delivery of
commitments and clearing
out various issues
Improving the ability
of influencing and
motivating the teams
and the stakeholders
.
Required
feedback from
the team
members and the
stakeholders on
the timely
delivery of the
commitments
November –
December,
2019
By
December
2019

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7. Experimenting with a new
format to reduce the meeting
timings from 90 minutes to
30 minutes without loss of
value
Improvement in time
management skills
Keeping a track
of the participant
feedback and the
weekly meeting
January –
March, 2019
By the end
of March,
2019
8. Working from home once
week where the environment
will be free from the
distraction thereby leading to
enhanced productivity.
Improving the work
habits
Having proper
access for
ensuring the
same delivery
while working
from home
.
January –
March, 2019
By the
end of
March,
2019
9. Taking the lead in
resolving incidents related
Undertaking
measures for
Considering a
mean time for
October –
December,
By
December

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to the production that
includes coordinating
efforts across the business
units and the technology
teams.
improving the
communication
skills.
repair 2019 , 2019
10. Get adapted to public
speaking
Gain experience in
public speaking by
completion of two
presentations by end
of Q2.
Successfully
completing two
presentations as
well as
participant
feedback
May- August,
2019
By
August,
2019
11. Development of the risk
scores for the projects of
Shell for incorporating risk
of failure in the funding
approvals.
Improvement of the
skills of decision-
making through
development of
innovative ways in
measuring
alternatives
Attaining
success in the
development of
the risk scores
for seventy
percent of the
proposals in the
in the planning
cycle of the
August –
November,
2019
By
November
, 2019

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fourth quarter.
12. Improving the skills
related to customer service.
The activities involves
carefully tailoring the
service to each of the
customers through
listening to the
problems and reading
the needs and the
emotions
By keeping a
track of
customer
satisfaction and
customer
feedback
April – June,
2019
By June,
2019
2. b. Explanation of how the Personal Development Objectives Influences Employability
within Workplace and Wider Society
The personal development objectives influence the employability and wider society in
empowering self-development and putting forward behavioral choices of learning. This results in
an enhanced employee motivation, experience, behavioral control and self-competence. It is
found that personal developmental objectives related to training encouraged the employees in
engaging in the developmental activities. Besides, the supervisor should remain available in
providing the feedback to the employees thereby influencing the employability within the
workplace and the wider society. It has also been found personal development objectives also
puts forward clearer goals, specific guidelines, formal framework and standards to the
employees. The impacts of the personal development plan are considered larger as the peers
sometimes provide support since they have better view of the job performance and thereby

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contribute in the development of the colleagues. The personal development objectives also help
the employees in valuing exchange of ideas by hearing to different viewpoints along with the
exchange of the feedback from the other colleagues. The personal development objectives
contribute in determining the success or the failure. When the personal development objectives
gives rise to a more supportive environment increasing number of employees remain open to
receiving the necessary guidance for professional development. A supportive environment also
takes care of the time and the resources.
3. Demonstration of Critical Awareness of Preferred Method of Learning and its
Contribution in Interacting with Others
Here, the preferred method of learning is verbal learning. Linguistic intelligence also
known as the verbal intelligence refers to the situation where individual responds through the
auditory methods of teaching. It is the verbal method of learning that will enable the student in
learning efficiently by taking information and listening to the people. This method of learning
helps in solving complex problems and by ensuring overall learning. Besides, the verbal learners
will not only help in expressing themselves, their problems and the solutions to the problems
through the words (Martinez-Maldonado et al. 2013). Verbal learning also involves gathering lot
of information within shorter periods thereby retaining it.
Effective spoken or verbal communication depends on various factors that cannot be
completely isolated from the other interpersonal skills that include listening skills, non verbal
communication and clarification (Burris, Detert and Romney 2013). The key rules of etiquette
that aids the process of the verbal communication includes the clarity of the speech, being polite
and remaining focused and calm. The verbal method of learning helps in open communication.

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In various interpersonal communications the initial minutes holds extreme importance as the first
impression have significant influence on success of the further communication. The verbal
method of learning encourages reinforcement. This refers to the use of the encouraging words
along the non verbal gestures that included the head nods, the warm facial expression and the
maintenance of the eye. In other words, the use of the positive reinforcement and encouragement
through the verbal methods of learning helps in:
 Encouraging others in participating in the discussion
 Signifies the interest of the other people
 Paves the way for the development and the maintenance of the relationship
 Allays fear and ensures reassurance
 Shows openness and warmth
 Helps in reducing nervousness or shyness of the others
The verbal method of learning ensures effective listening that is considered as important
skill as the people seek to spend more energy in what they plan to speak up instead of listening to
what the others have to speak(Reece and Walker 2016). Some of the essential facts about active
listening include:
 Arranging a comfortable ambience suitable for purpose of communication,
 Being prepared to listen.
 Keeping an open mind and concentrating on the key direction of the message of the
speaker
 Avoiding distractions as far as possible.
 Delaying the judgment until everything is heard.

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 Being objective.
 By not dwelling one or two points at expense of the others.
 The speaker should not remain stereotyped.
The verbal method of learning also helps in effective questioning which also acts as ane
essential skill in interacting with the others. Questioning can thus be used for:
 Obtaining information
 Starting a conversation.
 Testing of understanding.
 Drawing someone into conversation.
 Showing interest in a particular person.
 Seeking agreement or support
Verbal methods of learning also give rise to closed and open ended questions while
interacting with the others. The closed ended questions tend in seeking one or two word answers
thereby limiting the scope of response (Zohrabi 2013). On the other hand, open ended questions
broaden the scope of the response since they involve further elaboration and discussion. Open
questions will thus take a longer time in answering thereby giving the other individual better
scopes for involvement and self expression (Bell, Bryman and Harley 2018).
Conclusion:
On a concluding note it can said that the Royal Dutch Shell has approached second
century of the corporate life as the organizational changes implemented during the period 1995-
1999 led to the creation of a structure that helped the company in better responding to the
discontinuous changes and the uncertainties that impacted the industry. The ex vice chairperson

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of CMD put forward that the changes within the organization had impacted the strategic
management and the business portfolio of Shell in a positive manner. The changes have made
Shell a global business headed by CEOs who remained personally accountable. Besides, the lines
for reporting became uncomplicated a direct. Stock options and the incentive pay became norm
and each of the project competed globally for the capital. This resulted in an improved profile for
Shell where earnings represented stable net revenues. There has also been an increase in the oil
production due to the increase in sales of chemical, gas and oil products. Besides, the number of
the employees has also declined and the capital moved from the declining areas and the poor
performers to newer opportunities.

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