Human Resource Management Challenges and Solutions at BHP Billiton

This report provides an executive summary of the human resource management challenges faced by BHP Billiton, a major company in the mining, petroleum, and metals industries. The report identifies key issues in recruiting and retaining the workforce, including recruitment planning, cultural differences, labor supply and demand, high employee turnover, organizational image, demographic issues, and relationships with hiring managers. It then proposes effective strategies to mitigate these challenges, such as cross-cultural training, improved working environments, equal remuneration, employee training and development, and ethical conduct. The report highlights the importance of HRM in achieving BHP Billiton's organizational goals and objectives, emphasizing the need for proactive measures to address workforce challenges and ensure long-term sustainability. The report concludes by emphasizing the need for BHP Billiton to address the challenges to achieve its objectives.

Running head: Human resource management
Human resource management

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Executive summary
The report talks about the role of human resource management in today’s challenging
world. BHP Billiton is one of the biggest companies in mining, petroleum, and metals. It
explains that how the company is facing the key challenges for recruiting the workforce. It
explains the effective strategies to reduce and prevent these key challenges. It explains that how
the human resource management is playing important role in this company. Recruitment and
selection are the big issues in the organization. So it should be managed by the BHP Billiton.
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Table of Contents
Introduction.................................................................................................................................................4
Key challenges for recruiting the workforce................................................................................................4
Strategies to reduce the key challenges for recruiting the workforce in BHP Billiton.................................6
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9
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Introduction
The report talks about the various key challenges for recruiting the workforce. BHP
Billiton Company has been selected for the report. BHP Billiton is an Anglo Australian
multinational company which deals in mining, petroleum, and metals. The company was
founded in 1885, as a broken hill proprietary company limited and It’s headquarter is located in
Melbourne, Victoria Australia. It was the biggest mining company in the world by market value
and it was a fourth largest company by revenue in Australia. The company was formed in 2001,
through the merger and amalgamation of the Australian broken hill proprietary limited company
and the Anglo Dutch Billiton plc. It is a dual listed Australian company. The revenue of the
company is approx $30.9 billion (2016) and the operating income of the company is US$6.2
billion (2016). Approx 65,000 employees are working in the company. The company appoints
the employees through recruitment and selection process so various challenges are faced by the
company (Al Farooque, Kotey & Ahulu, 2014).
Recruitment and selection: Recruitment and selection are the important function human
resource management. Recruitment is the process of searching and appointing the potential and
talented candidate with the desired skills, knowledge, and experience. Through effective
recruitment and selection process, the company selects the most suitable candidate for the
employment (Dickie & Dwyer, 2011).
Key challenges for recruiting the workforce
There are many key challenges for recruiting the workforce in this company, they are
discussed below.
Recruitment, planning and training staff: The BHP Billiton operates its business in
developing countries in Africa and Asia. Although these countries provide a large number of
cheap and economical labors, still the company faces many key challenges. The governments of
the nations usually prefer the local labors. Therefore, the workers are not skilled which require
the international market and BHP Billiton. Training and recruitment are the major key challenge
for the company (Arthur, 2012).
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Cultural differences between local staff and expatriates: Many expatriates suffer from the
culture issues when they enter in a new country. Sometimes, people get a failure to adopt the
culture of the company and they do not be able to give the best performance in order to achieve
the organizational goals and objectives. It affects the business activities of the company. Thus, it
is the major key challenge which is faced by the company.
Cross cultural training for international managers: Approx 40% managers fail to adapt to the
new environment of the company. Thus, it affects the financial and legal system of the company.
It is the important key challenge for recruitment the employees.
Training and evaluation across a broad variety of cultures: Training and evaluation of
performance affect the business activities of BHP Billiton. The company needs to provide a
training and evaluation for the variety of culture. It is very costly and time-consuming process.
Labor supply and demand: Labor supply and demand is a major key challenge for recruiting
the workforce in the organization. The company could not find the skilled labor in the market.
There is a shortage of skilled and potential labor in the organization. The company demands the
skilled and potential employees for doing work. Mainly, the company needs sales person and
administrative executive to increase and expand the business of the company. But most of the
people do not prefer the sales job thus, it affects the image of the company. The company is not
able to appoint the potential employees because they demand a high salary and wages and the
company does not provide the good wages to them (Rothwell, Jackson, Ressler, Jones & Brower,
2015).
Highly Employee turnover: This is the major key challenge for recruiting the workforce in the
company. It does not provide the appropriate wages to potential employees as a result employee
turnover is increasing in the company day by day. Therefore, the employees are joining other
companies like Acronic Inc and Rio Tinto Limited. These are the competitors of BHP Billiton.
Thus the competitors are taking more benefits through employee turnover in such company.
Employee turnover affects the business operation, productivity, and efficiency of the company.
Organizational image: It is the biggest challenge for recruiting the workforce in such company.
The organizational image affects the various factors such as working environment of the
company and wages and high turnover of the employees. If the image of the company is not
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good in the market then it will influence the performance and productivity of the employee.
Thus, it will increase and boost the obstacles and issue in the organization (Kaplan, Dominis,
Palen & Quain, 2013).
Demographic issues: Demographic changes affect the business operation of the company.
Demographic issues like age, culture, religion, custom, and diversity. These are the big
challenges for recruiting the workforce in BHP Billiton. Mainly, the organization appoints the
male workers rather than female staff. Therefore, it does not maintain equality in the working
environment and the company does not provide the good opportunities to female staff. In this
way, the company cannot use and utilize the skills and potential of female staff. On the other
side, the company appoints only young workers and it does not hire the older people (Awofeso,
2010). Thus, it is the major challenge for recruiting the workforce in the organization. Although
it provides good opportunities to young employees for doing the job it affects the revenue and
profit of the company. The young generations are new at the workplace and they are not being
able to share their experience and knowledge with other employees. They do not use the business
resources and technology in an effective way due to the little knowledge and experience. On the
other hand, older people have experienced person and they have already good knowledge and
skills to perform the work effective way. But the HR department of BHP Billiton does not
appoint the older people. It is the biggest challenge for recruiting the workforce in the
organization. Climate Challenge is another key issue for the company and it affects the image of
the company. The other major issue is diversity and it is a major challenge for recruiting the
workforce in such company. The company does not diversify its business in all over the world.
Thus, many people do not join the company because they feel that without diversification the
company cannot expand its business operations and they cannot gain knowledge and experience.
Through diversity, the company generates good and innovative ideas and thoughts but due to
challenges in the workforce, the company is not able to take the benefits of diversity (Curtis,
Wikaire, Stokes & Reid, 2012).
Relationship with hiring managers: It is the major challenge for the company. After the
recruitment, a number key issues and obstacles arise between employees and hiring managers. It
will influence the performance and efficiency of employees. The company is not being able to
resolve this issue.
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Strategies to reduce the key challenges for recruiting the workforce in BHP Billiton
The strategies to address these challenges are discussed below.
 The company should make effective recruitment strategies to improve the key obstacles
which are faced by the company. In this way, the company can appoint talented and
potential employees (Sparrow & Cooper, 2012).
 BHP Billiton should carefully observe the culture of the other countries. Thus, the
company should provide the cross cultural training to employees.
 The company should provide the favorable working environment to employees. In this
way, the employees will perform the task effectively and they will improve the
productivity and efficiency.
 The managers should delegate the power and responsibilities towards middle and lower
management because it will motivate them to perform the duties effectively.
 The company should follow the equal remuneration system for the employees. The
company should appoint the female staff in the organization. In this way, women’s will
also participate in the business operation and activities of the company.
 It should provide the high wages to potential and talented employees. It will help to
reduce the high employee turnover within the organization.
 The company should make effective strategies for the training of employees. It should
conduct the training and development programs to improve and enhance the skills and
knowledge of the workers.
 The organization should introduce the global culture within its organization. Therefore
the employees will be able to understand the culture of the company. It should maintain a
balance between labor supply and demand to attract the people within the organization
(Campbell, McAllister & Eley, 2012).
 It should follow the ethics and code of conduct in the organization. Further, the company
should provide the health benefits to employees.
 The senior managers and supervisors must maintain the favorable relationship with
employees. They should maintain coordination and cooperation with workers.
 The top management should resolve the employee's grievances and complaints in order to
improve the recruiting the workforce in the company. In addition, the company should
use good channels for advertising to recruit the employees at the workplace. The channels
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of advertisement include the local newspaper, social media, company website, and online
source (Stone & Deadrick, 2015).
 BHP Billiton should diversify the business activities and operations across the world.
Conclusion
BHP Billiton is one of the biggest companies in mining, metals and petroleum industry.
But the various recruitment key challenges are faced by the company. Thus, the organization
should reduce these challenges in order to maintain sustainability and achieve organizational
goals and objectives.
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References
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SelectedAustralian Multinationals under the GRI Guidelines. Issues In Social And
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Arthur, D. (2012). Recruiting, interviewing, selecting & orienting new employees. AMACOM
Div American Mgmt Assn.
Awofeso, N. (2010). Improving health workforce recruitment and retention in rural and remote
regions of Nigeria. Rural Remote Health, 10(1), 1319.
Campbell, N., McAllister, L., & Eley, D. S. (2012). The influence of motivation in recruitment
and retention of rural and remote allied health professionals: a literature review. Rural
and remote health, 12(3), 1-15.
Curtis, E., Wikaire, E., Stokes, K., & Reid, P. (2012). Addressing indigenous health workforce
inequities: A literature review exploring'best'practice for recruitment into tertiary health
programmes. International journal for equity in health, 11(1), 13.
Dickie, C., & Dwyer, J. (2011). A 2009 perspective of HR practices in Australian
mining. Journal of Management Development, 30(4), 329-343.
Kaplan, A. D., Dominis, S., Palen, J. G., & Quain, E. E. (2013). Human resource governance:
what does governance mean for the health workforce in low-and middle-income
countries?. Human resources for health, 11(1), 6.
Rothwell, W. J., Jackson, R. D., Ressler, C. L., Jones, M. C., & Brower, M. (2015). Career
Planning and Succession Management: Developing Your Organization's Talent—for
Today and Tomorrow: Developing Your Organization’s Talent—for Today and
Tomorrow. ABC-CLIO.
Sparrow, P., & Cooper, C. L. (2012). The employment relationship: Key challenges for HR.
Routledge.
Stone, D. L., & Deadrick, D. L. (2015). Challenges and opportunities affecting the future of
human resource management. Human Resource Management Review, 25(2), 139-145.
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