Analyzing HRM in Global Business: Recruitment, Culture, and Shell Plc

This report provides an overview of HRM within a global business environment, using Shell Plc as a case study. It covers key recruitment strategies, factors impacting these practices across different countries, and a PESTLE analysis of Shell Plc. The report also examines how cultural factors influence organizational policies and procedures, with specific examples from countries where Shell operates, such as Nigeria and South Africa. Recommendations are provided to enhance Shell Plc's HRM functions, including improving team role allocation, strategic HR planning, and recruitment processes. The analysis concludes that understanding and adapting to the global business environment is critical for effective HRM and organizational success. Desklib provides more solved assignments for students.

HRM global business
environment

Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Introduction of organisation........................................................................................................3
Key approaches to recruitment strategy of human resource management and factors that
impact on these practices in different countries..........................................................................4
Pestle analysis..............................................................................................................................5
How cultural factors of country impact on Organisational policies and procedure....................7
Recommendations to improve business HRM functions.............................................................7
CONCLUSION................................................................................................................................8

INTRODUCTION
Global business environment is defined as the environment of different sovereign counties
with having factors of exogenous to the home environment of the organisation that influence
organisational decision-making process. Global environment encompasses various worldwide
environmental factors which are beyond of control. International HRM is defined as the
management of business human resources in global market place and enhance their contribution
to attain business goals and objectives. HR manager of organisation is responsible for various
activities such as hiring, on boarding, training and implementing legal compliances for
employees. In this report Global Shell Plc is taken into consideration. This report covers
introduction of organisation and countries in which organisation operating its operations.
Different HRM recruitment strategies and factors that impact on these practices is mentioned.
Pestle analysis of organisation and how cultural factors of country that impact on business
policies and procedure. Along with that recommendations to improve organisational HR
functional are discussed in this report.
TASK
Introduction of organisation
Shell Plc is the British publicly traded multinational gas and oil organisation headquarter situated
in Shell Centre, London, United Kingdom. Respective organisation founded in 1907 by Marcus
& Samuel Samuel and Henri Deterding. Organisation deals in lubricants, natural gas, petroleum
and other products as well as provides its across national boundaries. Shell Plc is the public
limited organisation that is listed in London stock exchange and it is the ninth largest corporate
producer of greenhouse gas emission (Aswathappa, and Dash, 2020). Organisation majorly deals
in oil and gas, along with that includes exploration, transport, production, refining, marketing,
power generation as well as trading of its products.
Countries in which organisation operates its operations: Shell Plc operated it operation or
provide its products and services in various international countries such as Algeria, Egypt,
Cameroon, Morocco, Nigeria, South Africa and various other countries (Aust, Muller-Camen,
and Poutsma, 2018). It provides an opportunity to business to expand its market share and
number of customers that enhances organisational profitability and performance level.

Key approaches to recruitment strategy of human resource management and factors that impact
on these practices in different countries
Recruitment strategies are defined as the plan of actions that help organisation to identify attract
as well as hire suitable and appropriate candidate’s for defined job role in organisation. Shell Plc
organisation’s HRM department uses various recruitment strategies that help business to hire
efficient and required employees that can perform in desirable manner in international market
place. Some HRM recruitment approaches are mentioned below:
Direct advertising: Direct advertising is most effective recruitment approach of HRM
that is used by the organisation to attract suitable candidates towards organisation. Organisation
uses various modes such as career sites, social media, job boards and industry publications to get
more applicants also maintain organisational reputation in market place.
Employee referrals: It is the suitable recruitment strategy that is implemented by the
organisation to get appropriate employees for defined job role (Bibi, Ahmad, and Majid, 2018).
Shell Plc conducts various employee’s referral programmes to hire candidates from internal and
external sources. In this approach existing staff encourage other to apply for that job role.
Recruitment events: When organisation tries to expand their business in other countries
than they conduct recruitment events with the objective if attracting suitable employees and
inspire them to apply for the job. Shell Plc conducts its operations in various countries so, it
prefers to hire employees of that country only to perform operations with efficiency and
effectiveness. So, organisation operate recruitment events to get appropriate candidates for job
role.
There are various factors that impacts efficiency and effectiveness of recruitment practices and
approaches in different countries that are mentioned below:
Unemployment rate of countries: Availability of applicants in different countries also impact on
the recruitment policies and approaches that are used by the organisation (Bissola, and
Imperatori, eds., 2019). If some country has higher rate of unemployment than Shell Plc has
changes to get appropriate candidates.
Labour market: Employment condition in country also influence the recruitment efforts of
organisation. If country has surplus of manpower at the time of recruitment than it helps Shell
Plc to get suitable employee who can perform operations in efficient manner.

Cultural and political environment: Every country has different culture and different
countries that also impact on business recruitment policies and strategies. As South Africa has
different language and other aspects that must be considered by the Shell Plc to recruit skilled
and suitable employees in organisation.
Pestle analysis
Shell Plc is the multinational corporation that deal in energy as well as petrochemical
product and deal in more than 90 countries. All countries have different conditions and culture
that need to consider by the organisation before conducting operations in them. There are various
external factors that impact on business policies and procedure so business should analyse these
factors that take efficient decision to handle all these situations in appropriate manner.
Pestle analysis: Pestle analysis is defined as the framework that is undertake by the organisation
to analyse external environment factors that impact on business operations and decision-making
process (Carbery, and Cross, eds., 2018). Shell Plc analyse all these factors properly than
consider them in business decisions and policies to gain sustainable competitive advantages.
Factors of pestle analysis are mentioned below:
Political factors: Political factors are related to government measures and interventions that
directly impact on organisational performance and decisions. It includes various government
influences and legislations such as tax policies, labour laws, environmental laws, political
stability and trade restrictions. There are various international and regional bodies that declared
to impose charges as well as penalties, tax on carbon emission. Shell Plc work in different
countries so it is important for organisation to analyse different political factors and restrictions
efficiently than develop strategies to run operation smoothly at international level.
Economic factor: Economic factor includes various factors and aspects such as exchange rates,
economic growth, inflation rate, products prices and demand that impact organisational practices
and strategies in positive as well as negative manner. As prices of oil and gas products are
increased ay global level that enhances organisational overall cost. Increases in tax rates,
implementation of technology are some reasons of enhancing organisational cost. Shell Plc
organisation faces the challenge because of few natural reserves of crude oil left to fulfil the
demand (Furusawa, and Brewster, 2018). Respective organisation responds to this excessive
demand through investing in new projects that are related to exploring and extracting oil and gas
from natural reserves that help business to gain competitive advantages.

Social factors: Social factor also the factor the impact on organisational policies and
strategies. It includes age distribution, health consciousness, career attitudes and population
growth that need to consider by organisation in decision-making process. In current environment,
consumers are becoming aware regarding the importance of responsible consumption. Shell Plc
responded to it through advertising itself as a responsible producer of oil and other products.
Activities and process of organisation raises the health and security issues that impact on
organisation reputation in international market. In Nigeria, organisation is regularly causing for
gas flares.
Technological factors: There are various environmental and ecological aspects are
included in technological factors such as technological innovation advancement, automation and
research and development. As Shell Plc deals with oil and other products production that
requires higher technology. Implementing technological advancement and innovation help
organisation to extracting gas in cost effective manner (Hamid, Muzamil, and Shah, 2022). On
the other hand, new and latest technologies are expensive. Shell Plc highly invent in advances
technology equipment’s that help business to perform their operations with efficiency and
effectiveness.
Legal factors: There are various laws and regulations are implemented by the government
that impact business performance and efficiency. Health and safety laws, consumer laws,
discrimination laws, employment laws are included in legal considerations. Laws and regulations
of carbon emission as well as environment safety are most important aspects that must be
considered by organisation to operate their operation efficiently. Shell Plc implement all these
regulations and sure that organisation do not harm any aspect of environment.
Environmental factors: Environment includes weather and climate factors that impact on
decision-making and operations of organisation. It is shown that manufacturing process of crude
fuel impact on environment too badly. Natural reserves of crude oil are declining at very fast
rate. Shell Plc take waste management and other aspects that help organisation to protect from
harmful impacts (Stewart, and Brown, 2019). Respective organisation revises its policies and
procedure to make them effective as well as reduce their impact on environment.
How cultural factors of country impact on Organisational policies and procedure
Every country has different culture from each other and these differences in these culture
impact business policies and procedures in positive as well as negative manner. Shell Plc

conducts its operations in various countries such as Morocco, South Africa, Nigeria that are
different from each other on the bases of culture. Exporter of consumer product will be affected
by the county’s culture so it is important for business to design products and services that meet
customers need, value and belief. Some cultural factors that directly or indirectly impact on
business operation are mentioned below:
Language: Language is the medium through which common ideas, thoughts are delivered
to others and it creates mutual understanding. Language spoken in used in country that have
impact on brand name, marketing as well as collection through various mediums such as
advertising, interviews and maintaining business relationship (Yusoff, and Nejati, 2019). Shell
Plc HRM managers need to analyse different language of countries as the language might vary
between religion of country and some countries have more than one official language. So,
organisation need to understand it and develop policies and strategies accordingly.
Religion: It is considered as major cultural influencer that impact on different aspects of
life such as role of women in society, holiday activities and consumption level. In a country
various religions are existing that contains different aspects that directly and indirectly impact on
business policies and procedure.
Ethics and values: Every country have specific ethics and values that are hold by them. It
is important for the organisation to adopt ethics as well as values in business operations that
matches customers and country expectations.
Education: Education is also other cultural factor that indicated quality of potential work
forces as well as status of consumers. It is important for the Shell Plc to understand the countries
educational level and develop policies and procedures accordingly.
Recommendations to improve business HRM functions
As Shell Plc operates its functions and activities in various international countries so, business
need to hire skilled and capable human resources who perform business operations with
efficiency and lead organisation towards growth and development (Zehir, Karaboğa, and Başar,
2020). Some recommendations to improve organisational HR functions are mentioned below:
 It is recommended Shell Plc to share all roles and responsibilities among team members
properly that help them to perform their operations with great efficiency and
effectiveness. Allocation of roles and responsibility enhances employees understanding

regarding what organisation is expecting from them and how they should perform to
attain determined objectives.
 It is suggested to the HR manager of Shell Plc to pay attention and time of preparing HR
strategies. Organisation should create clear picture of motivational strategies,
compensation policies, training programmes and practices to measure performance. It
will enable organisation to lead all HR operation in right direction.
 It advised Shell Plc to use appropriate recruitment and selection process to hire skilled,
capable and appropriate candidates who can contribute in performing business operation
and activities in efficient manner and help to attain business goals and objectives in
international market.
CONCLUSION
As per above report, it can be concluded that global business environment help business
to conduct its operations and activities in different countries that enable organisation to enhance
market share and customer base, Human resource management is very important in business to
manage employees and motivate them to perform in efficient manner and enhance their
contribution to attain determined goals and objectives. There are various external environment
factors that impact on business policies and strategies so business need to consider these factors
and their impact on organisation business activities. Organisation uses different recruitment
approaches to acquire skilled and talented employees. Now these days business operate its
functions in different countries so it is important to understand culture so it can run business
activities in proper manner.

REFERENCES
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