Human Resource Management Report: British Petroleum Case Study

This report provides an in-depth analysis of human resource management (HRM) practices within British Petroleum (BP). It begins with an introduction to HRM, outlining its core functions such as recruitment, selection, training, and employee relations. The report then delves into the purpose and functions of HRM, highlighting the importance of effective resource utilization and the role of managers in hiring and developing employees. It examines the strengths and weaknesses of different recruitment approaches, including internal and external methods. Furthermore, the report explores the benefits of various HRM practices for both employers and employees, emphasizing the creation of a positive working culture and improved employee performance. The effectiveness of HRM practices in enhancing organizational profitability is also discussed, alongside the significance of employee relations in HRM decision-making, with a focus on how BP fosters good employee relations through various measures such as employee involvement and fair treatment. The report underscores the importance of valuing human capital for long-term organizational success, citing BP's commitment to HRM policies that boost employee morale and reduce costs, ultimately contributing to higher profitability. The report concludes with a call to action for further research and analysis of these crucial aspects of HRM.

HUMAN RESOURCE
MANAGEMENT

INTRODUCTION
Human resource management refers to management of the Human capital of an
organization. It includes various factors such as recruitment, selection, training as well as
development of individuals within the organisation. It also refers to managing workers and their
actions at the workplace. It is also necessary that their performance are evaluated from time to
time so that improvements can be made in the same by proper implementation of various
programmes. British Petroleum is a Public sector company of United kingdom, dealing in Oil
refining business and is growing its rapidly (Cavusgil and et.al., 2014). The company is having a
large number of people working in the company, and are offering their quality services to
customer. The company also sells Oil through its outlets across the country. It has its operation in
more than 72 countries around the world, and is selling around 3.6 million barrels of oil on a per
day basis. The Human Resource of the company is quite huge, and is employing around 75
thousand employees around the world. It make sure that the selection, recruitment, training and
development of employee is done in an effective manner so that they can contribute to the
organization in the most effective as well as efficient manner.
TASK1
P1 Purpose as well as Function of Human Resource Management
Human resource Management is a very crucial part of any business organization as it
relates to the individuals who work within the company and continuously contribute for
company and businesses. The main benefit of proper human resource management is that it helps
company in utilization of its resources to its maximum level possible. The role of Managers is to
make sure that right kind of people are hired, who will contribute in the growth as well as
development of business (Cogin, 2012). British Petroleum has a robust Human resource
management system in place, which is responsible for various functions within the company,
these Functions include : Recruitment : It can be regarded as one of the main function of human resource
management. Manager is the one who make sure that the vacancy within company is
advertised so that people will be able to know about the vacancy and will apply for the
same. The concept of HRM make sure that it guides managers during the whole process
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of recruitment. The manager first evaluate the people who have applied for the vacancy,
their skills are tested and then decision is taken regarding Selection of the candidate. Conduction of Training and Development : The next job of manager after the process of
recruitment as well as selection of employees is to make sure that Employees are properly
Trained as well as developed so that they can contribution to business in an effective and
efficient manner. Also proper training and development will ensure that employees in
British Petroleum stay motivated and groomed so that they can face any business
challenges and can contribute to growth and development of the business. Relation with employees : One of the major duties of manager is to maintain a healthy
kind of relation with employees so that they will not feel unease within company and a
good environment can be made. There are various ways through which managers can
maintain good relation with employees (Disch, 2016). These are, understanding of their
needs as well as demands and making sure that they find a sense of belonging for
company.
 Compliance : Proper compliance with rules as well as regulations which prevails will
make sure that the human resource are effectively managed. These rules includes various
legal acts which are there, like Equal distribution act, payment of bonus act etc.
P2 Strengths as well as weaknesses of different approaches of selection and recruitment
Recruitment is a process of attracting right kind of talent for the purpose of filling
vacancies within the company. It is one of the important function of every Human resource
department within the company (Ellison and Boyd, 2013). There are various approaches of
recruitment which are being followed by the company for the purpose of recruiting the best
talent for itself. These approaches are as follows :
 Internal Approach of Recruitment : Under this approach the manager will make sure
that opportunity is given to existing employees within the company to fill vacancies of
organization, they can give reference of any other person who might be capable to handle
the job. For this, manager will evaluate skills and capabilities of workers who are
working within the company and they should be given preference for any promotion
within the company.
Strengths
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The benefit that a company can get while following this kind of approach is that it save
cost for company in terms of its advertisements and because employees are given chance to get a
promotion they feel motivate to work even better for the company, that will lead to an
enhancement in the productivity
Weakness
It may block new and innovative talent that may come from outside to within the
company. Sometimes it may be possible that a manger will choose a person who is close to him
for promotion, but the same might not be a deserving candidate for the post.
 External approach of Recruitment: This is one of the most effective way of recruitment
used by managers to fill the vacancies of company (Ellison and Boyd, 2013). Under this
the company hires fresh talent from outside the organization by adverting about the
vacancies and then selecting the right kind of individual based on their talents as well as
skills. The strength as well as weakness of this approach can be laid down as follows :
Strengths
The company can get fresh talent from outside and there are less chances of dispute
within workers of company. This leads to an enhancement in profits and productivity of
organization.
Weakness
It is a very time consuming as well as costly process which may lead to heavy investment
in the process and the outcome is not necessarily favourable for the company as the new hired
employee may leave the firm early going forward.
TASK 2
P3 Benefits of different human resource practices for Employers and Employees
There are various benefits of following right kind of Human resource practices. British
petroleum follows various Human resource practices, which benefits not only employer but
employees as well (Hewitt, 2014). These are discussed as below :
Benefits to employers Creation of a positive working culture : The main benefit of HRM is that it involves
managing the employees by taking care of their needs as well as demands and this help
them in creating a healthy working culture within the organization. They are motivated to
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do the best possible for company and help company in achieving organizational goals and
objectives. Helpful in taking Future Decision : The future activities and important decisions can be
taken by managers effectively if there is proper Human resource concepts which are
being followed by the company. Helps in Building a better Team : One of the primary benefit of HRM practices is that it
provides opportunities for the manager to evaluate the processes so that targets of the
organization can be achieved.
Benefits to employees Improve performance of employees : If proper HRM practices are followed by the
managers of organization like making sure that employees are getting better working
conditions, proper pay and bonuses along with time to time appraisal and Promotion this
will ensure that employees morale are on high and it will increase their motivation level
to work for the company (Jennings and Stadler, 2015). British Petroleum make sure that
performance of employees are on par with expectation of the top management and for
this purpose it implements various policies and procedures.
 Creation of healthy Working Environment : HRM practices helps a manager in creating
a healthy working environment within the organization. If employees will get what they
want, they will be working effectively for the organization and this will enhance overall
productivity of company.
P4 Effectiveness of Different HRM practices in higher profitability of organisation
Human Resource division is known as one of the standout amongst the most essential
capacity of each venture as this embrace different exercises with a specific end goal to expand
worker's commitment in organization's prosperity. One of the fundamental advantages of
different human asset rehearses is that it provide guidance to these two peoples supervisors and
workers (Keep, 2014). Further, it brings collaboration and coordination among different
exercises of organization. HRM practices ensures that organization is taking care of its
employees and profit is not the only motive for which it is operating and it values society and its
members by fulfilling its responsibilities towards them like giving them proper working
condition, Promotions etc.
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Effective Human resource practices will compel individuals to perform well and thus a better
working environment can be made in the business organisation. With help of these practices
association can better utilize its resources in an effective manner which will be an added
advantage for the company. Further, extraordinary activities related with HRM encourage
administrator to give better working conditions to agents and this development labourers yield.
In an undertaking need to achieve its set goals and centres than it is to a great degree
fundamental for association to have support and obligation of authorities and this can be achieve
primarily by satisfying their necessities and requirements. Idea of human resource Management
helps administrator to do this in a powerful way (Kerzner and Kerzner, 2017). This empower
confidence of labourers and spur them to give their best which increment the two benefits and
profitability as well as productivity of organization. Idea of human resource Management
empower execution assessment of specialists on auspicious and on premise of gathered data
director lead preparing and improvement programs for them so they can perform well. This
assistance endeavour in entire every single complex assignment in least measure of time and give
upper hand to organization. If there is proper implementation of effective HRM Policies then it
leads to a better culture as well as environment within company, which ultimately leads to higher
profitability for organization. If a company will not consider its Human capital as a important
contributory for itself, then a company will not be able to go beyond a point, because the limits
of machines are fixed but there is no limits of innovation, capabilities etc. for Humans. Hence it
is quite crucial that a company value its Human capital equally well for a prosperous future
ahead for the company. The profitability of British Petroleum has been on a rise, as it is
following various policies which ensures that employees morale remains boosted to work for
company as a result there will be a reduction in an overall cost structure of company, and this
will contribute in higher profitability for it.
TASK 3
P5 Significance of Employee Relations in HRM Decision Making
Every organization would want that it carries with itself various talents that will help
organization in achieving its target growth and goals etc. A employee will not consider the
company as its own, there will be a lack of sense of belonging by employees until and unless, the
management of the company will have good relations with employees of the organization. These
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good relations can be build by providing employees with good working conditions, ensuring
right kind of appraisal and promotion policy for them etc. For the purpose of creating good
relations with employees, British Petroleum is taking various measures, this involves :
 Administrators ought to empower interest of workers in basic leadership process. With
help of these the two supervisors and workers can set shared objectives and targets.
 Employers Shall treat all the employees in a friendly manner that will give them a
homely kind of environment.
 Input of lower level representatives ought to be empowered by chiefs with a specific end
goal to thought about the issues look by them.
 Evaluation of representatives who perform well ought to be finished by chiefs on
opportune premise so they can be persuaded to put forth a valiant effort.
This should be possible by chiefs of British for make and keep up great relations with workers.
One of the principle advantage of good relations with workers is that it give representative's help
to organization (Manvi and Shyam, 2014). Great relations with representatives empower
administrator in various important choices for business. At the point when venture do number of
exercises for representatives than they play out their parts and duties with full devotion. On the
inverse of this when administration neglects to make and keep up a decent connection with
workers than it influence the exercises of business. It is thus can be said that employees relation
is very crucial aspect for any organization to develop growth and over all development of the
organization. Alongside this, legitimate promotion and employee advancement programs must
be directed by management of British Petroleum to upgrade aptitudes of workers so they can
accomplish true objectives in a powerful way.
There are various types of measures that have been taken by the Government for the
purpose of effectively dealing with people working within the company, such as employees
workers etc. In this regard the government has Enacted various legislation and one of the
legislation include Employment Relations Act. The various provisions of the act are laid down as
follows:
Complain: The act facilitates a person to lodge complain against the employer in a more hassle
free way, which makes it easy for employees to get their rights in an effective as well as efficient
manner.
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Negotiations: It also lays down various aspects of Negotiations that can take place between an
employer and employee. The negotiation can be regarding working hours, pay, etc.
Termination of Contract: This act allows an employer to terminate a contract, if it founds that
the employee has indulge into any activities which has harmed company and its policies in or has
broken the laws of organisation frequently.
Trade Unions: The Employer of an organisation can make sure that a proper relation is
maintained between employer and employees and if the same can not happen, then there is a
chance that trade unions will enforce their rights. Thus, this act gives power to trade Unions in an
effective way.
P6 Various employment legislation and its impact on HRM decision making
Employment legislation plays a very crucial role in framing various policies related to
Human resource management. Employment legislation lays down the principles which has to be
followed by every organization so that employee's rights and duties are protected, and they are
given high quality of working conditions within the premises of the organization (Pierce and
Aguinis, 2013). It is also make sure by these legislations that Fundamental Rights of a human
beings is not violated by the company in the hunt of generating higher profits and growth. Some
of the Legislations includes : Employment Right Act: This act basically lays down the rules and regulations for the
minimum pay that needs to be paid to individuals working within the company and it
also laid down the minimum standards of working condition that shall be maintained by
the employer. Equal pay act : The employer of an organization can not discriminate in terms of
gender while offering pay to them. It lays down clear principles that a employer should
not treat men and women differently while finalising pay for them, but rather should
motivate women for employment (Reynolds, 2017). It will help in positive and effective
Environment creation at the workplace. Minimum Wage Act :This act ensures that there is a minimum wage which will be
offered to individuals who will be recruited within the company. It ensures that the
rights of individuals are protected. A specific rate is laid down in the act, and payment
has to be made to workers on the basis of Rate mentioned in it (Ten Brummelhuis and
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Bakker, 2012). This is to be kept in mind that, it is the minimum possible wage, and not
the maximum one.
 Employee Relation act : This act lays down that it is the duty of employer to maintain
and create fruitful relations with its employees and to do that it shall continuously look
for improvement within its processes and operations.
TASK 4
P7 Application of human resource practices in a work related context
British petroleum is very large oil and gas company based in united kingdom. The
company is constantly looking to increase its operations worldwide. But the for the purpose of
achieving this, the company is facing many issues like constant drop in quality of products, lack
of skilled manpower etc (Ng, and Feldman, 2012). The solution of such problems can be
obtained by the company, by following HRM practices in various areas : Manpower planning : The manpower required for performing a particular task is
estimated by the management well before. With the help of these, Management of British
petroleum can hire right kind of talent for the company. Training and development : It is essential part of Human resource management for
proper grooming of employees at the workplace. If there is a right training and
development programme within company, it will benefit both employees and employers
in the long term.
 Proper Maintenance of Product Quality: Increment number of clients is one of the
fundamental issue which British Petroleum is confronting and this can be handle by big
business by assessing execution of workers (Esteves, Franks and Vanclay, 2012).
Facilitate director can lead preparing programs for improve aptitudes of workers and to
make them ready to deliver quality items for huge number of clients.
All these are the fundamental factors on which chiefs of British Petroleum can apply HRM
Practices to kill issues from work environment and to expand number of satisfied clients.
Job description is the document that gives information regarding the job designation and what is
the demand of job as such.
Job Description
Organisation: British Petroleum
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Division: Human Resource Department
Job Title: Assistant of HR manager
Job Location: England
Working conditions : 8 Hours
Job Summary
British Petroleum is a reputed company in UK and is having a brand name in the oil and gas
industry. The company is looking to hire assistant for HR Manager.
Role
They have to ensure that the staff is following all the rules applied in them .
 Selection as well as staffing
 Training as well as development programme
 Motivation of employees
 Record of Salary as well as compensation.
Job specification is the document which is important for company to make changes in
their role and responsibilities of post.
JOB SPECIFICATION
Organisation: British Petroleum
Job Title : HR manager Assistant
Qualification – MBA or PGDM (Human Resources, Finance)
Essential Criteria:
 Great knowledge about structural relation with employees.
 Conduct games activity on a monthly basis in an innovative way.
 Capable to keep records of workers in efficient way.
Desirable criteria:
 2 years experience
 Essential communication as well as presentation skills
 Calmness in personality.
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