Strategic Global HRM & Decision Making

This paper analyses the Strategic Human Resource Management of Addax Petroliam Nigeria Limited along with their political, cultural and tactical interventions in decision making and workforce handling. It discusses the importance of aligning HR strategies with corporate strategies, the effectiveness of current HR policies, and recommendations for improvement. It also delves into organizational culture, power, politics, and conflict within the company.

Running head: STRATEGIC GLOBAL HRM & DECISION MAKING
Strategic Global HRM & Decision Making
Name of the Student
Name of the university
Author note

1STRATEGIC GLOBAL HRM & DECISION MAKING
Table of Content
Introduction......................................................................................................................................2
Analysis and evaluation of HR policies...........................................................................................4
Organisational culture, power, politics and conflict:.....................................................................10
Legal frameworks for Grievance and disciplinary process...........................................................16
Financial factors and HR infinitives..............................................................................................20
Personal and professional development.........................................................................................24
Conclusion.....................................................................................................................................27
Reference:......................................................................................................................................29
Appendices:...................................................................................................................................34

2STRATEGIC GLOBAL HRM & DECISION MAKING
Introduction
Background of the study
The Human resource management implies the developing and maintaining the effective
workforce in a systematic way that can increase the integrity and efficiency of the business
operation as well as the quality and profitability of the business. Therefore, it is obvious that the
human resource management of any company should have a strong connection with the business
strategy, management and practice of the organisation (Armstrong, 2012). The Strategic Human
Resource Management allows the organisation to build and maintain the Human Resource
Management aligned with the strategic business operations. Strategic human resource also
implies the inter relationship between the people, organisation, culture and environment. The
business compliance and the operational disciplines are also the subject to be implemented in
internationalize operation of an organisation. With regards to the business compliance the ethical
issues in workforce is also a significant factor that regulate the Corporate Social Responsibility
as well as the operational integrity.
Background of the company (Addax Petroleum Nigeria Limited)
Addax Petroleum Development Nigeria Limited is an Oil and Gas Exploration and
Production Company is a subsidiary of Addax Petroleum international. The company was
founded in 1994 in china. Currently, the Company has 25 licensed blocks where 15 are under
exploration and 10 are under development (Ide.go.jp, 2018). The mission of this company is to
develop sustainable economic and social value through effective exploration and production of
energy resources like petrochemicals and gas. Addax Petroliam international has a global
business distribution having the major bases in Nigeria, Gabon, West Africa and Kurdistan

3STRATEGIC GLOBAL HRM & DECISION MAKING
Region of Iraq. For its cultural and ethical values the management of the company believes that
prioritising their business ethics through which the company can evolve to the further level and
defines the integrity of the employee relationship along ensuring the interaction and
understanding of all stakeholders. Addax Petroleum is one of the largest independent oil
producers with average production of 136.5Mbbl/d for 2008 (Ide.go.jp, 2018)). The Addax
Petroliam Nigeria has five operational drilling rigs in Nigeria amongst which two are jack-up
rigs, one is semi-submersible and other two are land rigs. The company has 1525 employees
globally. The headquarter of Addax Petroleum Nigeria is situated at 10, Bishop Aboyade Cole,
Lagos, Lagos, Nigeria (Ide.go.jp, 2018).
Structure of the paper and purpose
In this paper the Strategic Human Resource Management of a petrochemical company
named Addax Petroliam Nigeria Limited has been analysed along with their political, cultural
and tactical interventions in decision making and work force handling. At the very beginning the
background of this company has been discussed along with their current and potential HRM
policies and strategies. Then the organisational culture, power, conflicts and other aspects have
been discussed while aligning them with their business strategies and practical consequences.
After that, this paper critically evaluated the range of theories to legal framework of the
organisation including grievance and disciplinary process while exploring the global and national
level strategies. After that the financial models that are used in this organisation to strategically
handle their workforce while making optimum profit, has been discussed while comparing the
global economy and financial value changing consequences within it. At the end, one of the
event has been identified and analysed criticising how that event helps me to my elevated my
personal and professional development procedure in a role of leader and manager. The purpose

4STRATEGIC GLOBAL HRM & DECISION MAKING
of this essay is to analyse the strategic HRM of Addax Petroliam international to male
appropriate recommendation for them while making personal and professional development
module for me.
Analysis and evaluation of HR policies
The importance of aligning HR strategies with corporate strategies
The HRM is one of the most important operations in any business organisation that deals
with the workforce of the organisation. On the other hand, the Human Resource Management
does not directly indicate the strategic business operation of the organisation in a particular
industry (Stahl, 2012). However, the HRM policies and techniques help any organisation to build
their competency level strong enough to develop and sustain in the industry while making
increasing profit. Therefore, the major regulators of the strategic business operation namely
mission, vision, operational ethics and integrity rely on the employees of the organisation
(Armstrong & Taylor, 2014). In another words for developing, implementing and sustaining an
effective business strategic model, a company must align their workforce and the workforce
management with the business strategy. This alignment of HRM policies and strategies are called
strategic human resource management. Many benefits this alignment or strategic HRM can be
highlighted.
For any organisation, the Human resource management policies are the subset of overall
organisational business policies that are not limited within the recruitment, training and
development. At the same time, globalisation is the part of this strategic human resource that
allows the parent organisation to handle the diversity management of the dissimilar environment
simultaneously (Bratton & Gold, 2012). The five P’s Model allows any company to develop their

5STRATEGIC GLOBAL HRM & DECISION MAKING
strategic HRM model. The components of 5 P’s are Philosophy, Politics, Programs, Practices,
Process. Philosophy refers the statements of the company that hold the value and ethics of the
company and how they treat their employees and their cultures. Policies refer the initiation and
implementation of shared values and guidelines for various related business issues. Programs
refer the group of activities that are used to initiate and perform an organisational change or
effort to achieve certain objectives (Brewster et al., 2012). Practices refer the regular behavioural
operations that allow the workforce to execute their regular activities in a certain way. Processes
are a group of synchronised activities that defines the way of executing the operation for the
workforce.
The HR strategies and policies of the organization globally
The Globalisation phenomenon is a essential aspect that must be highlighted during the
strategic business planning of a internationalised company like Addax Petroleum. Generally, the
global phenomenon emphasizes the Global Communities, Global Markets, Global Production,
Global Economy, Global organisation and Global Socio-ecology. Therefore, an internationalise
organisation has to considers this factors. Along with this global phenomenon, the most crucial
aspect within the organisational operation is Global Strategic Human Resource Management that
allows the company to handle the diversity of labour market and employees of the dissimilar
environment simultaneously (Liu & Lee, 2008). In another words, Global HRM refers to
managing the organisational operation outside the domestic boundaries; comparative HRM
practice, functions, system in different countries; managing international workforce in domestic
environment, managing people under the influences of globalised environment.

6STRATEGIC GLOBAL HRM & DECISION MAKING
Corporate Strategy
Globalisation
Business Strategy
HR Strategy
Strategic Options for IHRM
Competitive Advantage
Figure 1: Human Resource Strategy and Globalisation
Source: (Iles & Zhang, 2013)
A globalised organisation has to face some challenges to perform their HR activities such
as adopting the HRM policies of operational nation, preparing the flawless unitary HRM policies
that fit in every corner of the world, managing strong Corporate Social Responsibilities (CSR),
preparing global leadership, identifying skill for local level and adopting the business
compliances. The essentiality of these factors differs as per the complexity and environment of

7STRATEGIC GLOBAL HRM & DECISION MAKING
the national regulations and code of conducts enforced by the nation in which the particular
branch or subsidiary of parent company is performing. Within all of these factors cross cultural
environment is the major constrain for diverse operational environment. When a company spread
the branches into different cultural part of the globe, they must consider and prepare the strategic
tools to handle a workforce of racial and cultural diversity (Tahvanainen, 2010). This diverse
work environment occurs both overseas and domestic brunches of the business depending on the
integrity of strategic intervention of the globalised human resource management. Apart from
that, the company should also aware of the local laws for the hiring and other HR policies while
managing the remote workforce. In order to fulfil the business objectives with strategic HRM the
company should develop the global competence, cross-cultural awareness, sensitivity, agility and
humanity.
The effectiveness of current HR policies
Addax Petroleum Limited is an international company that manages and control global
workforce while considering the cultural diversity within the work environment for both
domestic and overseas platform. The major tactics that the Strategic HRM of Addax
International utilises is attracting the workforce towards the global business objectives that
makes the strong bound within the organisational culture and collective performance. For this
company the workforce competence is the major regulator that influences the risk management,
CSR operations, inclusion and employee relations of the company (Dix, Forth & Sisson, 2009).
For this same reason, the company also promotes its talent acquisition, employee retention,
recognising and rewarding within their workforce. Another individuality of Addax Petroleum is
its utilisation of competitive risks and potentials in HRM. Although the origin of the company is
china this company has made many effective strategic decision within their workforce policies

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that made them strong enough to penetrate the west Asian and African market of petrochemical
exploration and production. Addax Petroleum changes their strategic HRM policies in every 4
years to sustain the quality and efficiency of the strategic choice and implementation. The
reviewing and revising strategic HRM plan allows the company to establish optimal fit between
the organisation and environment.
When it comes to the organisational structure development in a wider business platform
the strategic human resource management helps Addax Petroleum to increase their productivity
by performance measurement while keeping the balance within the organisational culture, power
and politics. One of the most essential practices in this SHRM is performance measurement
while analysing the cultural and political competence level of the Workforce that are involved in
the development and sustention of the operational integrity within the organisation (Harris,
Tuckman & Snook, 2012). This strategic implementation of standard HR management is also
appropriate for the organisational change management. Addax Petroleum Limited is a company
where an employee has to work with his or her colleagues from different cultural and social
background that also promotes the ‘unity among diversity’ concept. On the other hand the
internationalise operation sometimes makes unwanted conflicts between different financial plans
and value change models where the budget of each individual operating centres are different.
Negotiating with local supplier and other business partners is the key activity that the
organisation performs when needed (Rich, Lepine, & Crawford, 2010). This type of negotiation
have been proven very effective when the deal with the cross-cultural environment of middle-
east countries.
Recommendations for improvement

9STRATEGIC GLOBAL HRM & DECISION MAKING
Addax Petroleum Nigeria as well as Addax Petroleum International Limited has many
strategic procedure to manage their Human Resource system in a globalised environment while
considering the cross cultural conflicts and negotiations. However, there are some other factors
that can improve the overall strategic implementation and performance level of their existing
Human Resource Management.
As a multinational farm Addax Petroleum can implement simulated knowledge sharing
that can allow the organisation to train and develop a large range of employees. The simulating
knowledge sharing can also reduce the operational cost of the overall strategic HRM
implementation. The company has enough wider platforms and verity of environments that will
allows the management to implement this simulating knowledge sharing concept (Lipsky, Seeber
& Fincher, 2003). Selecting appropriate experts within the workforce who can show the other
workers how to process and implement the skills while sharing the knowledge. While managing
this knowledge sharing will be implemented through simulated environment, Addax Petroleum
should focus on their talent recognition procedure.
Informational integrity is one of the major issues in recent years when it comes to the
globalised human resource management of a multinational farm. Addax Petroleum can improve
their leadership model by implementing best fit model within it while making appropriate
performance and concept within their work process and business activities. In this regards,
enforcing strong and effective organisational structure is also important (Purcell, 2014). The
transparent human resource allocation is the key tool to achieve this goal of strengthening the
organisational structure. Every employee should know the roles and responsibilities under the
terms and conditions of the organisation.

10STRATEGIC GLOBAL HRM & DECISION MAKING
Building a conductive social and cultural architecture within the employee relationship is
one of the most essential part of developing the optimum SHRM for any multinational company.
Addax Petroleum has workforce from diverse cultural and social diversity, where cross-cultural
workforce management and communication can solve any operational conflict (Saundry et al.,
2014). To improve the performance and integrity of different operational centres across the globe
Addax Petroleum should building a conductive social and cultural architecture within their core
organisational operation of human resource management.
Organisational culture, power, politics and conflict:
The term organizational culture is referred to the values as well as behaviors of the employees in
the workplace that contribute to the unique psychological as well as social environment of an
organization. The organizational culture of a company represents the collective values, principles
and beliefs of the employees and is a product of factors that includes history, product, market,
types of employees, technology , vision, mission and values of a specific company and the
management style followed by the management of that company (Robertson & Marwick, 2009).
Relationship between culture, power, politics and conflict
In spite of the fact that Power, politics and conflict are three more unwanted part of the
organizational culture, in majority of organizations these three factors are found to be the most
prevalent as well as real valued. Power, politics and conflict has the potential to influence the
behaviour of the employees and impose an adverse impact on the decision making process of an
organization. According to Schein, (1985) there prevails three levels of culture that includes
corporate culture, social enterprise culture and organizational and sub culture. Corporate culture
can be defined as a set of tacitly understood, broad rules that helps the employees to handle

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adverse as well as unimaginable circumstances. In contrary, organizational culture holds the
organization together by focusing on values, beliefs as well as expectations that members of that
organization are entitled to share. Power politics and conflicts are three parts of both corporate
as well as organizational culture that needs to be managed and eradicated by the management.
Figure 2: Managing organisational Culture, Power and Politics
Source: (Saundry & Wibberley, 2014)
When it comes to power and conflict three different approaches, namely, unitary, pluralistic and
radical approaches are followed by organizations to deal with the two mentioned factors. Three
approaches can be segregated with respect to zero sum and non zero sum power. Zero sum
power theory can be defined as the theory where the gain and loss of an participant is exactly
balanced by the losses and gain of other participants (Armstrong, 2014). On contrary, non-zero
sum power theory includes a situation where the gain or loss of one decision maker does not
impose any impact on the gain or loss of any other decision makers. The Unitary approach of

12STRATEGIC GLOBAL HRM & DECISION MAKING
power falls under the zero sum power while the pluralistic and radical approach falls under non
zero sum power theory.
Figure 3: Relationship within Unitary, Pluralist and Radical concept
Source: (Teague & Roche, 2012)
According to the Pluralistic theory, there should be more than on one source of power in
the organization. For instance, Unions are often a central component to the pluralistic approach
that seeks a balance of power between leadership and employees. According to this theory,
conflict in an organization is inevitable and plays a major role for innovation as well as growth
of the company. On contrary, the unitary theory suggests that all that the purpose of an
organization should not remain confined within the leaders only but should be shared with
stakeholders and employees as well. Therefore in unitary approach, the power is concentrated in
the top level of management (Brewster, 2008). The basic difference between pluralistic
approaches an unitary approach is that while in unitary approach the power belongs only to the

13STRATEGIC GLOBAL HRM & DECISION MAKING
leaders, in pluralistic approach the power is defused between the employer as well as the
employees. The radical approach of power and politics is somewhat similar to that of the
pluralistic approach. Like the pluralistic theory, this theory also suggests that conflict is
inevitable. However according to this theory, conflicts between the workers results from the
capitalist nature of the society and hence to avoid conflict, appropriate regulations should be
developed buy the management that will ensure the safety as well as fair salary of the employees
(Budhwar & Debrah, 2001). The term politics is closely related to power and is defined as the
activities taken within organizations to develop, acquire and use power in order to obtain
preferred outcome in situations where there is decencies or uncertainty about the choices.
Relationship between culture and morale, motivation, empowerment and behaviour of
employees
The culture of an organization highly regulates the morale, empowerment, behaviour as
well motivation of the employees. Lesser is the conflict and politics in an organization better is
culture of the organization. An organization with less number of conflicts and politics
demonstrate an employee friendly environment. Work friendly environment, in turn, enhances
the commitment of the employees towards the organization. Not only that, positive environment
in the workplace encourages positive relationship between the employees and thus enhance their
commitment towards the organization. The leadership style, which is a major part of
organizational structure of a company, is another factor that regulates employee motivation,
empowerment and behaviour. According to researchers, organizations that follow radical and
unitary approach of power are less likely to suffer from employee attrition compared to
organizations that follows unitary approach of leadership (Crawley, Swailes & Walsh, 2013).
This is because, radical and pluralistic approach provides higher empowerment to the workers,

14STRATEGIC GLOBAL HRM & DECISION MAKING
which are considered to be a highly crucial motivational factor. Organizations that allows
employees to take active part in the decision making process, enjoys high employee commitment
and responsibility. Nor only that, transparent and politics free decision making process makes the
employees feel empower and act as an intrinsic motivational factor. High morale of the leaders in
an organization is another crucial factor that enriches the culture of organizations. Organizations
that are famous for making ethical decisions are less likely to suffer from employee attrition
(Alfes et al., 2013). Another crucial aspect of organizational culture includes acknowledgement
of the effort given by the employees. This factor imposes immense impact on employee
motivation. There exist two types of employee motivation namely extrinsic motivation and
intrinsic motivation. Motivation that is associated with external factors like monetary
enhancement is known as extrinsic motivation. In contrary, motivation associated with self
satisfaction is known as intrinsic motivation (French, 2010). While extrinsic motivations include
enhancement in incentive scale of the employees or provision of a commendable performance
appraisal, intrinsic motivation is comprised of provision of justified amount of leaves,
implementation of work of home or celebration of festivals together.
Evaluation of organizational welfare of Addax petroleum
The Addax petroleum company follows unitary approach when it comes to organizational
development. This approach imposes both positive as well as negative impact on organizational
welfare of the company. The chief advantages of unitary organization approach include unity
between the employees as well as the employers of the organization. The work environment of
the Addax petroleum is highly employee friendly. A mutual respect prevails between the
employees and the employers of the mentioned organization. However, considering the fact that
managers are the key leaders of the organization, Addax petroleum often suffers from conflicts

15STRATEGIC GLOBAL HRM & DECISION MAKING
between the employees and the employers due to managers who lacks appropriate leadership
skills. Power difference between the employers and employees is another major issue associated
with organizational welfare (Holden, 2002). Conflict due to power imposes negative impact on
the productivity and performance of the employees. Lack of productivity not only results in
deterioration of the overall revenue of Addax petroleum but also is a major reason behind
employee attrition of the company. Besides that, another issue associated with the organizational
welfare of Addax Petroleum is the high workload faced by the employees. Considering the fact
that the unitary approach of organizational management involves unquestioned decision making
by the leaders, the managers of the mentioned organization are imposing excessive pressure on
the employees in order to deal with high employee attrition (Bingham, 2016). This excessive
workload is not only destroying the work life balance of the employees but also giving birth to
several health issues. Thus, excessive workload is hampering the organizational welfare of the
organization.
Recommendation for improvement
In spite of the fact that there prevails a good relation between the employees of the organization,
several improvements are needed in the organizational culture of Addax Petroleum in order to
enhance their overall revenue by implementing an effective organisational culture. In the
following paragraph, some effective recommendations for the mentioned company have been
discussed:
 In order to improve the relationship between the employer and the employees, the
mentioned organization should change its approach of organizational culture. According
to researchers, multinational organizations should implement the pluralistic approach to
minimize the issues leading to conflicts. According to the pluralistic theory, given

16STRATEGIC GLOBAL HRM & DECISION MAKING
working environments consist of different workers of different beliefs, culture, skills,
attitudes and knowledge (Lane et al., 2009). Unlike the unitary approach, pluralistic
approach will help the management to distribute the power between the employees and
the employers. This distributor of power will empower the employees of the organization
and as a result of this occurrence of conflict between the employers and the staff will
reduce significantly.
 In order to prevent excessive employee attrition, the HR department of Addax petroleum
needs to implement several employee motivational techniques. For instance, an effective
incentive plan needs to be drafted in order to motivate the employees who are working
overtime. At leart two work from home per months should be provided in order to further
reduce the stress of the employee (Stahl, 2012).
 In order to gain competitive advantage, the management of Addax Petroleum should keep
their salary scale slightly higher than its competitors. This will not only prevent employee
attrition but will also attract skilled employees who have the capability to enhance the
revenue of the organization.
Legal frameworks for Grievance and disciplinary process
Legal and organisational framework
The workforce of any organisation has the responsibility to maintain the positive and
respectful relationship with each other while keeping the legal and regulatory framework in
mind. The ethical environment of any organisation determines the competency of the
organisation where the regulations and procedures are enforced within the workforce practice.

17STRATEGIC GLOBAL HRM & DECISION MAKING
The strategic human resource management needs to consider the legal framework of the
company while recruiting, training and developing an employee. The employee relationship,
occupational health and safety measures are chiefly dependent on the role of formal procedures
in regulating employee relation under the legal framework to avoid occasional conflicts and
operational disputes (Tayeb, 2005). Grievance and Discipline are the two major aspects of the
enforcement of legal framework of any organisation. In Addax Petroleum Limited the
organisation has to aware of the compliance procedure of every nation they are operating in.
From the countries of Middle-East to African continent each nation has their own set of rules and
regulations for human resource, labour rights, human rights, workforce health and safety
(Friedman, Dyke & Murphy, 2009). Therefore as a multinational company, Addax Petroleum has
to align their strategic human resource practices with the individual regulatory frameworks
across the globe where taking care of their core organisation ethics and values about employees.
Grievance processes in the organisation
The grievance in organisation environment refers the concerns, problems and complaints
that employees raise against each other or against the employer. Every institution has their own
code of conduct to deal with any grievance situations. Fairness and transparency are the most
essential factors that determine the work ethics within the workforce of an organisation. Some
components of legal frameworks provide the outline for the grievance dealing procedure of an
organisation namely Grievance resolution options, responsibilities of employees, principles,
professional leading and support from the managerial level. Two types of grievances resolution
process should be considered to develop the legal framework namely Formal and Informal
Grievance (Shen & Chanda, 2009). The informal grievance resolution process aims to reach a
resolution acceptable to complainants and respondents while formulating the solution by

18STRATEGIC GLOBAL HRM & DECISION MAKING
discussion between both parties. The formal grievance resolution process requires more
systematic and detailed procedures prioritising the evidences and findings. Addax Petroleum
Limited follows both formal and informal way of processing the grievance depending on the
situation and importance of the breaches or operational discrepancies. However, Addax
Petroleum Limited developed their standard grievance process in a way that can deal with the
tension of command and control verses employee engagement.
Disciplinary process in the organisation
Disciplinary procedures define the standards of conducting specific legal activities under
the ethical consideration of the organisation to provide fair method for dealing with failure and
breaches. Encouraging the employees to improve their legal and ethical perspective about work
process and environment is another aim of the disciplinary process. Addax Petroleum Limited
follows some basic disciplinary processes such as prohibiting informal complaint from employee
side about management, prohibiting unauthorised discussion and meeting without informing the
authority, prohibiting managerial domination against any appeal (Camerer & Vespsalainer,
2007). The key principles of the disciplinary process are providing confidentiality, indicating
unethical or unauthorised action, informing employees of all level about the existing code of
conduct, responding immediately after getting informed with evidence against illegal activities.
The aim of the disciplinary process is to provide healthy environment to all employees where the
workers would have their rights to stand against any unethical issue while ensuring the
disciplined actions or procures (Lewis & Sargeant, 2013). In any organisation all the employees
should aware of the legal significance of the disciplinary procedures considering the capability,
conducts, redundancy and violations. Addax Petroleum Limited strictly prohibited any unfair

19STRATEGIC GLOBAL HRM & DECISION MAKING
dismissal of employee while prioritising the accusations from the employees against the
supervisors or management.
Difference between Grievance and Disciplinary process:
Grievance Disciplinary
 It considers the unethical activities such as
harassment, bullying, grading,
discrimination, non-pay terms and other
health and safety issues.
 It is an employee mechanism that are
initiated by the employees for resolving
conflicts or violations allowing both formal
and informal procedure
 It is a sets of standards of conduct expected
from employees while informing about any
illegal or unethical issue.
 It is a bounded code of actions made by the
employer for the employees providing
them the rights to speak and stand against
the system.
Recommendations for improvement
Addax Petroleum Limited has developed their induction training and development
procedure in a way that can successfully make the new employees aware of the roles and
regulations. However, being a global organisation Addax Petroleum Limited should also
consider some additional factors that can enhance their workforce efficiency.
Addax Petroleum Limited can implement Mediation as a structured discussion between
the complainant/s and respondent/s designed to troubleshooting the issues in a predetermined
process to reach the resolution. Considering the fact that Mediation may not be appropriate in all
cases Addax Petroleum Limited should also plan their other voluntary resolution options (Hatch
& Cuncliffe, 2013).

20STRATEGIC GLOBAL HRM & DECISION MAKING
During developing the disciplinary procedure, Addax Petroleum Limited should also
consider the effectiveness of alternate consequences or failure that causes the unexpected
regulation when the formal conduction is under process. Choosing the right way to manage
rather than avoiding the conflicts is the key strategy to handle this kind of the situation (Steward
& Rigg, 2011).
Addax Petroleum Limited should appreciate the employees who follow the codes of
conduct and the disciplinary process to stand against any misconduct under the organisation. It
will encourage the other employees to follow the disciplinary procedure in similar situation.
At the very beginning stage of the training and development process Addax Petroleum
Limited should train their novice employee about the code of conduct for grievance and
disciplinary procedures that have to be maintained (Huczynski & Buchanan, 2010). At the same
time, the employees should also be informed about their rights.
Financial factors and HR infinitives
Financial models for global HR policies
Along with the productivity, legal and cultural aspect the strategic HRM should also take
care of the financial aspect of the Human Resource operation that deals with the profitability,
liquidity and risk in the performance of the workforce from both collective and individual
perspective. Better employee performance leads to better profitability while changing the
revenue, cost, share price, cash flow and payroll expanse simultaneously. For a global
organisation like Addax Petroleum Limited, the national and international level monetary vale
exchange policy and economical cardinality play a major role in total performance indicator or
TPI (Acas, 2009). Within the total performance indicator the major variable is financial

21STRATEGIC GLOBAL HRM & DECISION MAKING
performance indicator or FPI that includes the resultant profit, revenue, cost, ROI, cashflow and
share price regulated by the performance of the existing workforce. When it comes to the
financial outcomes of workforce one of the major part is payroll or the remuneration structure of
the employees (Harvey & Moeller, 2009). For a multinational company collective bargaining of
local level has essential impact on international level profit generation. During analysing the net
profit the taxation is another important factor that is enforced for both international trading,
business operation and even for human resource operation. Fitzgerald and Moon's Building Block
Model is widely used performance measurement model considering the Intangibility,
perishability, inseparability, variability of the company as well as the transfer of ownership.
Financial models for HRM in the organisation
Addax Petroleum Limited uses many performance measurement and improvement
models to enhance their overall financial performance. One of the major models utilised by this
company is performance recognition and appraisal model that allow the management of Addax
Petroleum Limited to find out the most productive employees and to apprise the employee as
motivational and encouraging activity (Thite, Wilkinson & Shah, 2012). The company has their
own set of performance indicator that helps them to determine the most productive and cost
effective employees within the local and international workforce. Addax Petroleum Limited
provides both Extrinsic and Intrinsic rewards to their employees for their motivation and
encouragement. Addax Petroleum Limited also utilises the internal recruitment process as their
tool of rewarding and appraisals (McKenna et al., 2010). Measuring the financial benefit of the
current HRM policies prioritises the 3 Es model consists of Economy efficiency and
effectiveness. The effectiveness is divided into three variable components namely input, output
and impact. An optimal input output balance is also called Value For Money of VFM that

22STRATEGIC GLOBAL HRM & DECISION MAKING
depends on the investment on the workforce operation, payroll, performance appraisal,
rewarding, training and development procedure. For financial performance measurement,
Balance Scorecard approach is also used. In this approach, a scorecard consisting individual
attributes or performance indicators represent the performance of an individual employee or a
department by summarising the individual scores gathered by the competitors (Hollinshead,
2010). Through this tool, Addax Petroleum Limited can easily determine the strength and
weakness of an employee or department while visualising the collective performance level.
Impact of internal financial factors
There are multiple factors that regulate the internal financial performance of an
organisation. For a multinational company the attributes, which regulate the financial
performance of the company and their operational subsidiaries, are National wages regulation,
regulation for employee compensation, value of different currencies, economical functionality of
different countries and ROI or return on investment. Return on Investment is also considered as a
unit of financial performance measurement. Mathematically the ROI emphasise the percentage
of profit divided by the total capital employed (Sullivan, 2012). The efficiency and productivity
of the workforce directly regulates the profit through their productivity and capital employed by
minimising the needs of training and development cost. Therefore, the performance of the
workforce can change the value of return on investment or ROI. Another two major variable for
multinational companies that regulate the financial performance is taxation and interest rate.
Each country has individual taxation system and rate in their trading, human resource,
wages land, monetary or assets transaction and other business operations. Country with low
taxation regulation and rate provide better financial performance of the business while higher
taxation rate and regulations can decrease the overall financial performance in spite of having

23STRATEGIC GLOBAL HRM & DECISION MAKING
effective manpower and profitable business operation. On the other hand, the economical
development and status also determines the interest rate of a country (Lawrence-Wiles, L. &
Ashmore, 2014). To formulate and execute the overseas business operation Addax Petroleum
Limited has to take loans from the national and privatised banks. However, a country with higher
interest rate for loan decreases the net income while having a high gross profit. Addax Petroleum
Limited chooses African countries for their business operation in order to avoid the high taxation
and interest rate.
Recommendations for improvement
The financial performance measurement model of Addax Petroleum Limited is already
strong to control and manage the global business. However, some changes or alteration can
increase their profitability in terms of domestic and national business operations.
Addax Petroleum Limited should ensure that the employees are taking ownership of the
standards where they need to participate in the budget and standard setting process. It will allow
them to accept the standardisation constrains more easily while boosting the workforce morale
and achievability (Armstrong & Taylor, 2014). On the other hand, Addax Petroleum Limited
should also set the limit to avoid resultant consequences such as budget slack for unlimited
participation.
Addax Petroleum Limited should clearly describe their mission, vision and business
ethics to their existing employees and new employees for both domestic and international
operating centres. While initiating the work process in change management Addax Petroleum
Limited management board should also remind the workforce about their objectives with respect
to their job roles. This process will keep them motivated while performing any specific and
measurable operation.

24STRATEGIC GLOBAL HRM & DECISION MAKING
Addax Petroleum Limited should also focus on their 6 regulatory factors namely
Competitive performance, Financial performance, Quality of service, Flexibility, Resources and
innovation. However, as a petrochemical company Addax Petroleum Limited has limited
opportunity to initiate innovativeness within their performance. However, they can formulate
their organisation structure and management in innovative way that can lead to optimum
profitability.
Addax Petroleum Limited should also strengthen their existing workforce performance
through implementing the Total Quality Management. Total Quality Management or TQM is an
advanced way of enhance the equipment, workforce, management and innovation strategy by
utilising various advanced facilities like Information Technology (Iles & Zhang, 2013). Addax
Petroleum Limited should perform virtual training and leadership tools through social media in
order to reduce the operational cost and increase financial performance.
Personal and professional development
Description of the incident
While I was posted as the HR manager of the Addax Petroleum, I evidenced an incident
of racial discrimination. The incident took place in the branch of Annax petroleum located at
Iran, Kurdistan. Considering the fact that a good number of Nigerian employees were transferred
to Kurdisthan, the ratio of Nigerian employees to the Iranian employees were 1:2. During a
project, an Iranian employee showed disrespect to an Nigerian employee of his team by abusing
him with respect to his color. This conversation took the form of a conflict and as a result the
entire team got divided into two sides, one supporting the Iranian employee and another group

25STRATEGIC GLOBAL HRM & DECISION MAKING
supporting the Nigerian employee. As a result of this conflict, the project got suspended and the
company suffered from a huge amount of financial loss. Not only that, the all the Nigerian
employees demanded termination of the mentioned Iranian employee.
Feelings
The chief emotion that dominated me at that point of time was anxiety. I had been HR
manager of Annax Petroleum Iraq for 2 prolonged years and these are the kind of situations that
made me feel highly uncomfortable. In my mind, I was constantly searching for a way out to
solve the situation. However, in order to pacify the crowd, I ensure them that stern step will be
taken in order to deal with the mentioned issue. Despite of that, I felt guilty about the occurrence
of the incident, since as a HR manager it was my duty to prevent the mentioned issue. I felt that
the company had undergone the huge loss due to my reluctance.
Evolution
Being the HR manager of the branch, my role was to prevent as well as minimize any
kind of conflict occurring in the institution. I was unhappy of the fact that employees of the
organization lacks respect towards each other orientation and culture. I also evaluated that lack
of education about cultural diversity and training that encourages employees to develop respect
for each other can be considered as a major reason behind the conflict. Moreover, the stigma that
a good number of Iranian employees poses about the complexion and standard of their fellow
Nigerian peers can be considered as another major reason behind the mentioned conflict. Hence I
evaluated that improvement in the cross cultural environment of the company is highly required.
Analysis

26STRATEGIC GLOBAL HRM & DECISION MAKING
According to Hofstede’s cultural dimension theory, the culture of the society in which
an organization is located imposes immense impact on the culture and behavior of employees in
the organization. Thus, it can be understood that cultural rigidity in Iran is one of the major
reasons behind the issue. Lack of cultural competence between the Iranian as well as Nigerian
employees of the branch is another crucial reason that enhanced the conflict. According to the
researchers, in order to prevent cross cultural and racial conflicts between the employees in an
organization, employees should be educated in order to develop respect for each other’s culture.
However, n significant training or education was provided to the employees are provided to the
HR department of Annex Petroleum, Iran. Moreover, in order to develop an effective bond
between the employees, both formal as well as informal communication should be encouraged
between the employees. However, no such initiatives were taken the company. In spite of the
fact that the situation was specified by me by assuring the termination of the employee, I
understood that this is not a permanent solution to the mentioned issue. I furthermore understand
that, the company will not be able to last longer in this field if immediate step to eradicate the
issue is not taken by me as a HR manager.
Conclusion
From the incident, I learned that development of respect for each other’ culture between
the employees is a highly crucial factor that imposes direct impact on the revenue and reputation
of an organization. Hence, I took the decision of taking stern steps in order to ensure that each
and every employee respect their peers so that such incidents do not take place in future.
Action plan

27STRATEGIC GLOBAL HRM & DECISION MAKING
In order to ensure that such incident do not take place in future I will definitely
implement an effective education and training plan to educate the employees about the
importance of respecting their peers from another cultural orientation. Secondly, I will ensure to
include strict penalty and legal steps against the employees who will disrespect or insult their
peers based on racial discrimination. Finally, I will introduce several ice-breaking sessions so
that the employees can develop the ability to know each other.
Conclusion
From the above discussion it can be said, that the Strategic Human Resource
Management allows Addax Petroleum Limited to build and maintain the Human Resource
Management aligned with the strategic business operations. Strategic human resource also
implies the inter relationship between the people, organisation, culture, environment, financial
benefit and brand equity. For its cultural and ethical values, the management of Addax Petroleum
Limited believes that prioritising their business ethics through which the company can evolve to
the further level and defines the integrity of the employee relationship along ensuring the
interaction and understanding of all stakeholders. The five P’s Model allows Addax Petroleum
Limited to develop their strategic HRM model. The components of 5 P’s are Philosophy,
Politics, Programs, Practices, Process. The global phenomenon for a company like Addax
Petroleum Limited emphasizes the Global Communities, Global Markets, Global Production,
Global Economy, Global organisation and Global Socio-ecology.
From the above discussion, it can be said that the essentiality of Strategic Human Resource
Management differs as per the complexity and environment of the national regulations and code
of conducts enforced by the nation in which the particular branch or subsidiary of parent

28STRATEGIC GLOBAL HRM & DECISION MAKING
company is performing. Addax Petroleum Limited is an international company that manages and
control global workforce while considering the cultural diversity within the work environment
for both domestic and overseas platform. When it comes to the organisational structure
development in a wider business platform the strategic human resource management helps
Addax Petroleum to increase their productivity by performance measurement while keeping the
balance within the organisational culture, power and politics. The culture of a global
organization like Addax Petroleum highly regulates the morale, empowerment, behaviour as well
motivation of the employees. The ethical environment and legal framework of any organisation
determines the competency of the organisation where the regulations and procedures are
enforced within the workforce practice. Along with the productivity, legal and cultural aspect the
strategic HRM should also take care of the financial aspect of the Human Resource operation
that deals with the profitability, liquidity and risk in the performance of the workforce.
According to Hofstede’s cultural dimension theory, the culture of the society in which Addax
Petroleum Limited is located imposes immense impact on the culture and behavior of employees
in the organization. From my occupational experience I have learned that development of respect
for each other’ culture between the employees is a highly crucial factor that imposes direct
impact on the revenue and reputation of an organization. As per the personal and professional
development plan, I will definitely implement an effective education and training plan to educate
the employees about the importance of respecting their peers from another cultural orientation.

29STRATEGIC GLOBAL HRM & DECISION MAKING
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34STRATEGIC GLOBAL HRM & DECISION MAKING
Appendices:
Appendix1: SHRM discussion model
Appendix 2: Conflict Resolution Approach
GSHRM -
integrated
strategy
Discipline
&
Grievance -
managing
staff
welfare
Culture,
Power &
Conflict -
employee
Engageme
nt
Financial
Viability
uncooperative co-operative
Assertive
(attempting to satisfy
one’s own concerns)
forcing/
competin
g
collabora
ting
avoidin
g accommoda
ting
compromising
Co-operativeness
(attempting to satisfy the other
party’s concerns)
assertive
unasserti
ve

35STRATEGIC GLOBAL HRM & DECISION MAKING
Appendix 3: Conceptual Framework of Diversity Management in HRM
Appendix 4: Model of organisational culture
Diversity
Managem
ent Issue
- EEO/AA
-
Appreciatin
g and
making use
of diversity
Strategic Level HR Practice
Organisational diversity culture
(commitment of resources and
leadership), vision, mission,
business strategy and HR
strategy that value diversity,
formalised HR policies,
measuring and auditing diversity
Tactical Level HR Practice
Staffing, training and
development, appraisal,
remuneration
Operational Level HR
Practice
Educating employees,
networking communication,
flexible employment and support
for generating work-life balance
Diversity
Management
Objectives
- Compliance
with EEO and AA
requirements
-
Innovation/Crea
tivity
- Responsiveness
- Employee
Attraction and
retention
Turnover and
absenteeism
reduction
- Greater
marketing
capability
High
organisational
performance
Line Management Involvement