Strategic Human Resource Management in Evolving Work Environments

In an increasingly competitive global market, organizations face significant challenges in human resource management, particularly in talent attraction, development, and retention. The ability to manage a diverse workforce effectively is crucial for fostering innovation and improving organizational performance. This assignment explores these dynamics by examining existing literature on talent pipeline management, cultural diversity's impact on local labor markets, and the role of dynamic capabilities in addressing future challenges. Key studies include Alkhalaf et al.'s exploration of talent pipeline management to meet drilling challenges, Suedekum et al.'s insights into cultural diversity in local labor markets, and Shuen et al.'s discussion on dynamic capabilities within the oil sector. The analysis identifies gaps such as understanding why employees are reluctant to work for low wages despite lacking skills and strategies for enhancing employee motivation through cultural background improvements. This assignment aims to synthesize these findings, proposing actionable recommendations for organizations seeking to navigate the complexities of modern human resource management and leverage cultural diversity as a strategic asset.

Running head: BUSINESS INFORMATION ANALYSIS
Business Information Analysis
Name of the Student:
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1BUSINESS INFORMATION ANALYSIS
Contents
Background of ADNOC..................................................................................................................2
Business Problem of ADNOC.........................................................................................................2
Research Question...........................................................................................................................3
Research Objective..........................................................................................................................3
Literature Review............................................................................................................................3
Quality of the Gathered Information...............................................................................................6
Gaps in Knowledge..........................................................................................................................8
References......................................................................................................................................10

2BUSINESS INFORMATION ANALYSIS
Background of ADNOC
Abu Dhabi National Oil Company (ADNOC) is one of the leading producer in energy
producer and is regarded as the primary catalyst for the diversification and growth of Abu Dhabi.
It is the 12th largest producer in the world and it produces 3 million barrels per day. ADNOC
owns 68% equity share in GASCO. The company has more than 100 service stations across
entire UAE. It also sells aviation fuels and other lubricant of its own brand to the Gulf regions.
The operations of ADNOC fulfill every aspect of the processes in the petroleum industry. The
company has offered fraud job opportunities of the people and the HR of ADNOC tried to
misguide the people and made false promises to them. It has also been found that the people
were unwilling to join the company despite being offered competitive prices than other
companies. There were various problems related to the code of conduct of the company (Deming
2017).
This paper will highlight the business problem faced by ADNOC and how the problem
was identified in the company. A literature review will also be discussed in the paper. The paper
will also discuss about the research objectives and the solutions to the problem which was faced
by the company.
Business Problem of ADNOC
The HR department of ADNOC had to face challenges in recruiting the skilled people.
Despite offering competitive prices, it was difficult to find skilled local employees who had
qualifications in chemical, petroleum or mechanical (El-Gharbawy et al. 2017). The employees
who are hired are mostly contractual and they quit the job in a short span of time. There are also

3BUSINESS INFORMATION ANALYSIS
problems related to safety issues. The employees who are hired on contractual basis were
unwilling to get engaged in risky jobs such as drilling and many more (arabianbusiness.com
2017).
Research Question
What are the challenges faced by ADNOC in recruitment of its employees?
Research Objective
In order to find out the solution of the above research question, the objectives mentioned
below has to be met:
a. To investigate the problems which are faced by the employees who join ADNOC.
b. To find out why local workers were not willing to work in the company despite being
offered competitive prices .
c. To find out the factors which were responsible for the recruitment of the employees.
Literature Review
According to Alkhalaf et al (2015), there were challenges which are faced by the
employees in oil and gas industry. There was deficiency in the supply of people in the oil and gas
industry and the aging demographics including a large number of retirees. To overcome these
challenges, the oil and the gas industry had to implement a talent management strategy by
utilizing a competency based approach. There are talent crunches in the oil industry. Moreover,
there is shortage of skills due to small population. There are also very few employees who
pursue their education in science stream. There were also higher percentages of women who are

4BUSINESS INFORMATION ANALYSIS
engaged in the oil and gas industry in UAE. This will help in checking the talent of the
employees who are recruited in higher positions. The competency based approach will help in
managing the people effectively. Yeoh and Lam (2016) stated that it is necessary to understand
the politics of the highly skilled employees. The international talent and the changes in the labor
and immigration policies were the major reasons which were responsible for the talent
management. According to Stone and Deadrick (2015), along with shortage of skilled laborers
who are about to retire, the company must try to retain the young and the skilled workers. This is
because they have unique skills which are considered important for the organization. In order to
retain the young employees, the organization must arrange flexible working time, supportive
environment and part time work. The traditional HR practices are designed for a set of
homogenous set of employees with cultural values whereas the new workforce must have certain
values which are based on familism and collectivism. The organizations will have will have to
modify the HR practices for the new set of organization. The organizations will have to alter the
current benefits and give the rewards so as to satisfy the needs of the employees. It is also
important for the organizations to use the compensation plans so as to retain the employees.
Moreover, the management must also treat the employees with respect. They must be honest
with each other and be effective in their communication. It is also the management to keep the
promises which they make to the employees before recruitment. It is also the duty of the HR to
protect the health and safety of the people and protect the environment. The HR must also
recognize the privacy of the personal information of the employees. It is also the duty of the HR
to access the records of the employees who are appropriately authorized to do so.
Shuen et al (2014) has stated that the dynamic capabilities helps in joining the strategies
for empowering the organization and building, integrating and reconfiguring the external and the

5BUSINESS INFORMATION ANALYSIS
internal competencies. This is responsible for the strategic management of the three main sectors
of the oil and gas industry. There are various economic potential which are created by new
exploration opportunities and the various complexities which are associated with the challenges
facing the upstream strategists and the managers who are involved in providing the effective
approach to the management. This is possible by comparing the dynamic capabilities with the
ordinary capabilities and thus helps in increasing the sufficiency. It is also related to the ordinary
skills of the employees such as skilled personnels in various circumstances, the various facilities
and the equipments in different circumstances. The ordinary capability of the firm includes the
practices and thus allows access to advanced equipments and skilled technologies. The best
operational practices will also be collected continuously and it will also help in analyzing the
performance of the employees. This will help in setting the interlinked and the challenging short
and long run targets. It will also help in providing reward to the employees and thus provide the
details of the processes and the routines.
According to Sharma (2014), the low technical knowledge of the people is one of the
main reason responsible for lower skills of the people. There were also lack of competitive
advantage among the workers and thus this was the major reason as to why the employees are
not willing to get engaged in the various industries. This changing scenario is not only
responsible to some selected industries but it is responsible to all other sectors in the economy.
Suedekum et al (2014) has stated that the workers from different cultural backgrounds may have
complementary skills and the ability to solve various problems. This will help them to interact
and thus the productivity may improve due to knowledge spillovers and the other form of
externalities which needs further localization. There are also certain amount of transaction cost
which is involved in communication processes and lower productivity of the workers. The effect

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of diversity may also help in the operation processes for different channels and thus it will affect
the quality of life at the local level. The fractionalization of the local people in different groups at
the primary level is associated with the wages of the people, employment density and land rents
across different regions. It is also necessary to observe the skills of the employees closely and
thus hire them accordingly for the job role. The native people who are associated with the
diversification and size of the groups will help in strengthening the skills of the employees. The
intercultural knowledge and the language spillovers will help in making the employees more
productive and this may require certain level of education of the people. The group size of the
highly skilled employees and the diversities will help in improving the local production. This
diversity seems to be unconditionally beneficial for the high skilled employees. The labor market
effect for the local people will rise in certain regions and thus it will host the culturally and the
large group of local people. The diversities may have positive or negative impact and thus it may
either help in raising the productivity or lower them. The individuals who are more skilled have
overlapping stock of knowledge because they no basis for communication. The effect of positive
productivity of this workforce may become lower because communication becomes costlier for
them. These gains in productivity may have an enhancing effect and thus it will include the
economic transaction cost. The diversities may also be due to conflict between the management
and the employees.
Quality of the Gathered Information
Author Quality
Alkhalaf et al (2015) The talent management strategy which is
mentioned in the paper has enriched the quality
of the paper. As there are talent crunches in the

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company, it is necessary to hire the skilled
workers accordingly.
Yeoh and Lam (2016) The politics of the skilled labor and the
international talent will be managed
accordingly. This has increased the quality of
the paper.
Stone and Deadrick (2015) The various steps for enhancing the skills of
the employees are discussed in the paper. The
information gathered from this paper was also
relevant.
Shuen et al (2014) The dynamic capabilities of the people for
enhancing the skills are described in this paper.
The economic potentials which are necessary
for improving the challenges are described in
the paper
Sharma(2014) Lack of skilled labour and the low technical
knowledge are the main reason for the
outsourcing of business. The companies hire
new workers on the basis of their skills. The
information described in this paper is of
moderate quality.
Suedekum et al (2014) This paper has mentioned how workers from
different cultural background work collectively

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in the group. It has enriched and widened the
scope of knowledge.
Gaps in Knowledge
Author Gap in Knowledge
Alkhalaf et al (2015) The challenges are described in the paper. But
it does not give a valid reason as to why the
employees are not willing to work in low
wages although they are not skilled.
Yeoh and Lam (2016) The politics and the talent which are involved
in hiring the employees are described in the
paper and it has widened our knowledge.
Stone and Deadrick (2015) The reason for the shortage of skilled labours
are analysed in the paper .
Shuen et al (2014) This paper has given an idea of the importance
of communication processes which are
necessary for getting employed in different
organization. But it has not highlighted as to
what may happen if there is communication lag
between the employees.
Sharma(2014) The threats and challenges of the IT industry is
discussed in details and the importance of

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outsourcing is also described briefly.
Suedekum et al (2014) The importances of cultural background of the
employees for getting employed in different
industries are described in the paper. It has not
highlighted as to why the cultural backgrounds
of the people can be enhanced and the
employees can be motivated for improvement.

10BUSINESS INFORMATION ANALYSIS
References
adnoc.ae 2017. ADNOC. [online] Available at: https://www.adnoc.ae/ [Accessed 27 Oct. 2017].
Alkhalaf, A.H., Zaballero, A. and Alzahmi, R.A., 2015, November. Talent Pipeline
Management: Attracting, Developing, and Retaining Talents to Meet Future Drilling Challenges.
In Abu Dhabi International Petroleum Exhibition and Conference. Society of Petroleum
Engineers.
arabianbusiness.com 2017. Arabian industry. [online] Available at:
http://www.arabianbusiness.com/adnoc-official-laments-challenge-of-recruiting-emiratis-
620626.html [Accessed 27 Oct. 2017].
Deming, D.J., 2017. The growing importance of social skills in the labor market. The Quarterly
Journal of Economics, 132(4), pp.1593-1640.
El-Gharbawy, S., Beydoun, W., Abdul-Halim, A. and Khan, I., 2017, May. Piloting the ADNOC
Group Process for New Technology Development and Qualification. In Offshore Technology
Conference. Offshore Technology Conference.
Sharma, D.C., 2014. Indian IT outsourcing industry: Future threats and challenges. Futures, 56,
pp.73-80.
Shuen, A., Feiler, P.F. and Teece, D.J., 2014. Dynamic capabilities in the upstream oil and gas
sector: Managing next generation competition. Energy Strategy Reviews, 3, pp.5-13.
Stone, D.L. and Deadrick, D.L., 2015. Challenges and opportunities affecting the future of
human resource management. Human Resource Management Review, 25(2), pp.139-145.