Globalization and HRM: Challenges and Solutions for Shell in Oman

This report provides an overview of globalization's impact on Human Resource Management (HRM), focusing on the challenges and issues faced by organizations. It examines contemporary issues like multi-generational challenges, market competition, lack of skilled workforce, changing technology, legislation, leadership development, healthcare law compliance, recruitment, reward and compensation, health and safety, and discrimination and diversity. The report uses Oman Shell as a case study, detailing its mission, vision, and operations. It evaluates how the organization addresses these challenges, emphasizing the importance of resolving generational issues, promoting effective leadership, fostering communication, and ensuring employee development to maintain sustainability and achieve long-term goals. The report highlights the need for Shell to adapt and implement strategies to overcome challenges and maintain its position in the global market.

Running head: Globalization
Globalization

Globalization
Table of Contents
Introduction.................................................................................................................................................3
Literature review.........................................................................................................................................4
Contemporary issues in HR..........................................................................................................................4
Evaluation that how the organization has addressed the challenges issues...............................................7
Conclusion.................................................................................................................................................10
Recommendations.....................................................................................................................................10
References.................................................................................................................................................11
2

Globalization
Introduction
The main aim of the task is to provide a brief overview about the globalization and its
impact on the HRM. Globalization is the biggest key issue in human resource management
which influences the position of the firm. Furthermore, it talks about the business activities and
operations of the Oman shell. It is one of the biggest integrated companies that aim to fulfill the
demand and requirements of the energy. Shell development Oman LLC provides a central point
for the coordination and cooperation of the employees. It explains that how the company is
facing key HRM issues and challenges within the organization due to globalization. It tells that
how the firm is overcoming and addressing these challenges and key issues in the organization. It
describes that how the company is maintaining sustainability in the environment. Further, the
report explains the mission and vision of the Shell in Oman.
The Oman shell is one of the biggest energy leaders in the world. The company plays a
significant role in order to meet the goals and objectives of the firm. It maintains an effective and
unique relationship with stakeholders around the world (Minnee et al, 2013). The learning and
development programs are conducted by the Shell in Oman. The company is active in Oman
around the gas and oil industry and it is involved in independent activities and joint venture.
Further, the company implements broad social investment programs which contribute to the
sustainable development and expansion of the country (Devi, Al-Hashmi, and Sekhar, 2012).
Honesty, respect, and integrity are the core values of the company. The company provides
support to the government and people of the Oman through, learning, development, research and
sustainable social investment programs. In today’s era, the company is expanding and flourishing
its business day by day. Shell involves in the construction and design of the plant in Sur and it
also involves in the development and expansion of the gas and oil business. The company
representative office was established in 2002. The firm is delivering energy is an effective and
responsible way in order to accomplish the needs, requirements, and desires of the people
(Abejide and Raji, 2013). The Shell is a group of petrochemical and Energy Company around the
world.
3

Globalization
Literature review
Globalization: It is the major issue in human resource management which influences the success
and growth of the firm. It also affects the quality of life and standard of life. It also influences the
organization’s balance sheet and product life of the organization. It also has a direct impact on
monetary regulations and trade policies of the government. It also affects the culture and
working conditions of the firm (Pieterse, 2015). Due to globalization, several contemporary
issues are faced by the human resource management that has been discussed below.
Contemporary issues in HR
There are various key challenges faced by the human resource management due to
globalization. After the various researchers, it has been analyzed by the Appelbaum et al (2011),
where he said that contemporary issues affect the mission and vision of the company. These
issues also affect the success and growth of the company while conducting business activities
and operations globally. The contemporary issues that are associated with globalization have
been discussed below (Taylor, 2017).
Multi-generational challenges in the workplace: It is the biggest challenges in human resource
management which affect the long term targets of the firm due to globalization. It affects the
working capacity and productivity of the employees. The company has not been able to appoint
experienced and potential employees. Therefore, it also creates conflicts and disputes in the
workplace among the employees. The company is not able to take benefits of the experience and
knowledge of the older employees. It is one of the biggest challenges for the human resource
department (Haynes, 2011).
Market competition: Globalization also increases competition in the global market. The
immense and high competition will also increase and enhance the pressure on organizations to
maximize the quality and eliminate the prices. It affects the financial position of the firm in the
competitive market (Fujita and Thisse, 2013).
The lack of skilled workforce: Globalization encourages competition in the global market. As a
result, the firm needs to make effective and unique strategies and policies to stand out against the
competitors across the world. Due to immense competition, the firm requires to appoint high
skills and potential workforce. It is difficult process to appoint capable and skilled labor force at
4

Globalization
low prices. Human workforce is the biggest contemporary issue in HRM which has an adverse
impact on the vision of the firm (Milanovic, 2016).
Challenges of changing technology: Globalization also has an adverse impact on technology
and innovation. Due to globalization, the firm needs to change the technology and process on
regular basis that can affect the operations and activities of human resource management. Due to
change management, high employee turnover and absenteeism will also increase in the
organization. Sometimes, employees do not accept the organizational changes due to lack of
knowledge and experience. They avoid and ignore these organizational challenges. In addition,
lack of proper research and development team, the company cannot overcome on the competitors
around the world. It also affects the energy and sustainability of the firm (Stromquist and
Monkman, 2014).
Legislation influencing workplace: The rules and regulations which are imposed by the
government also influence the trading activities and operations of the company adversely. It also
affects the sustainability and development of the firm. After the various researchers, it has been
evaluated by Paik, Chow and Vance (2011), where they said that legislation also affects the
efficiency and effectiveness of the workers.
Leadership development: It is another contemporary issue in HRM which affects the
productivity and performance of the employees in the workplace. The company has not been
able to maintain sustainable human resource management due to inadequate resources and
development (Kunze, Boehm, and Bruch, 2011). The supervisors and top management are not
effective and competent to control and motivate the subordinates within the organization. The
company does not provide training and development coaching to the managers and supervisors
(Benería, Berik and Floro, 2015). Thus, they are not able to provide motivation and
encouragement to the employees to reduce and prevent the adverse impact of globalization
(Benn, Todd and Pendleton, 2010).
Healthcare law compliance: The human resource management faces a number of logistics and
healthcare challenges in the organization due to globalization. The firm could not set the proper
and effective rules, and regulations related to the healthcare. It affects the health and
performance of the subordinates at the workplace (Rugman, 2012).
5

Globalization
Recruitment: It is one of the major concerns in the HRM. It is difficult for the company to
appoint potential and competent employees for doing work in the energy sector. Recruitment and
selection are important to increase and maximize the revenue and profit of the company. HRM is
not able to evaluate and analyze the skills and potential of the employees due to globalization.
Hence, various recruitment and selection challenges are faced by the company at the workplace
(De Wit, 2011).
Reward and compensation: These contemporary issues exist in the organization. The firm does
not provide reward and incentive to the potential and competent employees within the
organization. It affects the actions and efficiency of the workers. Pepper and Gore (2015),
said that reward and compensation are considered the motivational tool for the employees. If the
company does not provide compensation and reward to the competent employees then they get
disappointed (Larkin, Pierce and Gino, 2012).
Health and safety: These are another major concern in HRM. Health and safety are the primary
function of the human resource management to build and develop sustainability in the workplace
and environment. Whenever safety and health issues arise in the organization then employees are
not able to do work with more efficiently and effectively. Health and safety issues affect the
health of the workers in the world. Lundgren and McMakin (2013) said that good and healthy
working environment is essential for each and every employee to increase and maximize the
revenue and profit of the company. The firm has not been able to maintain healthy and safety
working environment due to globalization.
Discrimination and diversity: These issues are faced by HR department of every firm. It also
affects the skills and performance of the employees within the organization. The top
management and manager discriminate among the employees. Sometimes, top management and
managers do false commitment and promise with employees in order to increase the salary and
basic pay of the employees but they do not fulfill the basic needs and requirements of the
employees (Kunze, Boehm, and Bruch, 2011). Thus, it affects the efficiency and performance of
the workers adversely. Apart from this, the employees do not maintain discipline and rules
within the organization. It also affects the image and position of the company around the world.
Further, HRM does not maintain proper records and books of accounts of the workers. It also
influences the performance and quality of the workers. In addition, HRD is not able to resolve
6

Globalization
the queries and grievances of the workers related to the workplace. Thus, employees feel
unhappy within the organization. All these contemporary issues are faced by the HR department
of the firm (Kunze, Boehm, and Bruch, 2011). Due to globalization, the company is not able to
build and develop communication within the organization (Hitt, Ireland and Hoskisson, 2012).
On the above mentioned contemporary issues, leadership development is a biggest
contemporary issue in HRM. The success and growth of the organization depend on the effective
and dynamic leadership. The employees of the company are not capable to become a team leader
in the organization due to globalization (Crane and Matten, 2016). Thus, it affects the success
and growth of the company. Leadership is important to create a reciprocal relationship with
partners around the world. It also helps to know and evaluate the technology and energy of the
firm. Leadership is the major part of the success and growth of the firm. The company does not
use effective and unique leadership styles to guide and assist the workers in the organization. It is
the biggest challenge for the company to determine its long-term mission and vision of the firm
with maintaining sustainability at the workplace. Lack of leadership, the company is not able to
improve the performance and quality of the subordinates in the global market. Lack of leadership
styles, the firm is not able to motivate and encourage the workers within the organization. It also
affects the energy and innovation of the firm. Stone and Deadrick (2015) said that a company
cannot expand its trading activities globally without effective and unique leadership. Leadership
styles are primary and foremost part of the organization in order to measure the sustainability of
the organization (Gregory et al, 2011).
Evaluation that how the organization has addressed the challenges
issues
The human resource management issues influence the business activities and operations
adversely in various ways. Therefore, the company needs to focus and monitor these key
challenges and issues to attain long-term mission, goals, and objectives of the firm. Shell must
measure and identify these key challenges to maintain sustainability within the organization.
There are various ways to address and resolve these key issues which have been discussed below
(Schaltegger, Lüdeke-Freund, and Hansen, 2012).
7

Globalization
 Shell is the largest company in the world. Therefore, the company must resolve the
generation issues to overcome the key challenges of human resource management within
the organization. The company should provide opportunities to the young and potential
people to do work in Shell with more efficiently and effectively. In this way, it helps to
improve the performance and efficiency of the potential workers in the organization
(Shuen, Feiler and Teece, 2014).
 The effective rules, legislation, policies must be made by the Shell in Oman to attract
more consumers around the world. Rules and regulations determine the long-term growth
and success of the firm. It also helps to reduce the key HRM issues within the
organization. These rules and legislation provide guidance to the employees. It helps to
run the business activities smoothly and easily (Li, Sanders, and Frenkel, 2012).
 The company must provide training and development coaching to the workers to evaluate
and analyze the benefits of the organizational changes within the organization. Further,
some unique and dynamic programs must be conducted by the company to resolve the
resistance to change issues in the Shell. The top management and managers should
evaluate the reasons for the refusing the organizational changes. In this way, the company
can control the resistance to change issues around the world. The organizational changes
are important for the company to introduce new and innovative technology in the market.
The top management and managers must maintain proper collaboration and
communication with employees to reduce and resolve these issues in the global market
(Mandip, 2012).
 Further, Oman Shell monitors and evaluates the benefits of the technology advancement
to gain the competitors advantages across the world. The company should invest money
to introduce new technology in Shell. It helps to reduce the key obstacles to the human
resource management within the organization. It also helps to sustain sustainability in the
organization (Schalk, Timmerman and Van den Heuvel, 2013).
 Apart from technological advancement, the firm needs to monitor and focus on the
leadership development to minimize the key challenges of the HRM. Leadership
development plays a crucial role to build and develop sustainability in the global market.
In addition, various leadership styles are developed and built by the Shell in Oman. In
today’s era, leadership development is becoming the key success indicator for the firm.
8

Globalization
Along with this, leadership theories and models must be used by the company to beat the
competitors in the market by maintaining sustainability (Singh et al, 2012).
 Shell should follow the health safety act and other policies to reduce the key issues of the
HRM in order fulfill the needs, requirements, and expectations of the customers. Along
with this, minimum wages act and factories act must be implemented by the government
to maintain sustainability and to reduce the key problems and issues of the HRM within
the organization. It helps to increase and maximize the revenue and profit of the firm.
The company must use some innovative and unique strategies and policies to meet and
attain the business vision and mission of the Shell. These strategies and policies must b
made by the government (Marescaux, De Winne, and Sels, 2012).
 Further, Shell in Oman influences and affects the reward and compensation system of the
company across the world. The reward and compensation system should be evaluated by
the Shell in order to develop and build a reciprocal and cordial relationship with the
target audience in the environment (Dipboye and Colella, 2013).
 In addition, the company must implement health and safety act and laws within the
organization to provide a favorable environment to the workers. Further, Shell also
develops and builds some strategies, policies and plans to minimize the challenges and
key issues of the company. Further, adequate and proper working environment should be
provided to the workers to beat the competitors across the world (Anderson, 2013 ).
 The company should not discriminate on the basis of caste, religious, and culture of the
employees. It affects the business activities and operations of the country. The company
should provide equal rights to the employees. Top management should protect the rights
of the workers. In this way, they are able to motivate the employees for doing work and
task with more effectively within the organization (Long, Ajagbe, and Kowang, 2014).
Shell should maintain diversity to expand and explore the trading activities globally. The
employees learn a lot of things, experience, and knowledge through diversity. It also
helps to maintain corporate social responsibility and sustainability within the
organization. Along with this, the company must resolve the queries and grievances of
the employees to provide satisfaction to them. The managers should sit with employees to
listen to their problems and issues and resolve them (Chuang, Jackson and Jiang, 2016).
9

Globalization
Along with this, performance reward system must be used by the company to enhance and
increase the productivity of the company. Further, performance appraisal should be provided by
the company to provide job satisfaction and job security to the employees. Shell should reduce
the employee turnover within the organization because it affects the image of the company. The
company should provide a favorable working environment for the workers to make them happy
and pleasant. Along with this, the firm must focus on the negative impact of the globalization to
carry the business activities globally. It will also help to enhance and increase the capacity and
effectiveness of the workers (Srivastava and Agarwal, 2012). Further, the company must develop
and enhance new technologies to detect and reduce the reservoirs which are invisible. Effective
utilization of resources must be done by the company to secure and protect the natural resources
of the firm. The employers must maintain collaboration and cooperation with subordinates to
increase and enhance the employee engagement at the workplace. Along with this, Shell must
use various approaches to maintain sustainability in the environment. Sustainability plays a vital
and integral role to protect the environment of the country. It helps to increase the goodwill of
the company. The company can reduce the risks and key issues of the marketing by maintaining
sustainability within the organization (Den Hartog et al, 2013).
Conclusion
On the above discussion, it has been concluded that Shell is one of the biggest energy and
petrochemical companies across the world. Thousands of workers are working in the company to
provide energy and technology for a growing population. The company is working on many
projects in Oman. Along with this, Shell uses various types’ sustainable approaches to provide a
safe and secure environment to the workers. Further, the company uses core values and
competencies to build a good image in the global market. The company is developing innovative
technologies to manage the carbon dioxide (CO2) emissions and water consumption. In addition,
the company enhances and increases the oil recovery techniques within the organization. The
company is also focusing on the key HRM issues to accomplish its long-term goals and
objectives within the organization. It is making effective and unique strategies, policies and plans
to reduce and address the HRM issues in the organization. The firm is helping to develop and
build local economies by creating jobs, paying taxes and royalties. Shell is supporting the
community projects which are based on the needs and requirements of the local communities.
10

Globalization
The firm sets high standards of ethical behavior and performance in the organization. Further, the
company needs to focus on the technology to attain the long-term objectives and goals of the
firm.
Recommendations
Although, Oman shell is making effective position in the global market by maintaining
sustainability within the organization but still it needs to implement some policies and plans for
the future growth and success. It is recommended that Oman Shell must focus on the technology
and energy to minimize and reduce adverse social and environmental impacts. The company
should do planning for future development and growth by maintaining sustainability in the
organization. Further, the company should maintain an effective code of conducts and business
ethics to address the HRM issues within the organization. Safety standards must be implemented
by the Shell in Oman to minimize the key issues of human resources. In addition, the company
should focus on the marketing campaigns and programs to increase and maximize the profit of
the company. It is suggested that firm should focus on the human resource management to
implement rules and policies smoothly and effectively. The HRM must focus on the business
activities, rules, and policies of the company while recruiting the candidates within the
organization to address the key challenges in the more effective way. They should improve the
productivity and quality of the employees by providing and enhancing the motivation to them. In
this way, Shell is able to overcome the key issues of HRM. Apart from this, the organization
should collect feedback from the managers to evaluate the performance of the workers. They
should also appoint a person who can handle and resolve the grievances and complaints of the
employees. A committee should be appointed by the company to determine the appraisal and
incentives of the workers. Further, the company should focus on the advertisement and
promotion strategies to expand and flourish the trading activities and operations of the firm
globally. In this way, the company can improve its functions and performance within the
organization. It also helps to accomplish the mission, goals and targets of the company. In
addition, an effective and sustainable human resource management should be implemented by
the company to tackle the issues related to the atmosphere of the company.
11

Globalization
References
Abejide, T.S. and Raji, A.O.Y., 2013. An assessment of environmental problems associated with
oil pollution and gas flaring in the Niger Delta Region Nigeria, c. 1960s-2000. Oman Chapter of
Arabian Journal of Business and Management Review, 3(3), pp.48-62.
Anderson, V., 2013. Research methods in human resource management: investigating a business
issue. Kogan Page Publishers.
Appelbaum, S.H., Roy, M. and Gilliland, T., 2011. Globalization of performance appraisals:
theory and applications. Management Decision, 49(4), pp.570-585.
Benería, L., Berik, G. and Floro, M., 2015. Gender, development and globalization: economics
as if all people mattered. Routledge.
Benn, S., Todd, L.R. and Pendleton, J., 2010. Public relations leadership in corporate social
responsibility. Journal of Business Ethics, 96(3), pp.403-423.
Chuang, C.H., Jackson, S.E. and Jiang, Y., 2016. Can knowledge-intensive teamwork be
managed? Examining the roles of HRM systems, leadership, and tacit knowledge. Journal of
management, 42(2), pp.524-554.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
De Wit, H., 2011. Globalisation and internationalisation of higher education. rusc, 8(2), pp.241-
247.
Den Hartog, D.N., Boon, C., Verburg, R.M. and Croon, M.A., 2013. HRM, communication,
satisfaction, and perceived performance: A cross-level test. Journal of management, 39(6),
pp.1637-1665.
Devi, M.G., Al-Hashmi, Z.S. and Sekhar, G.C., 2012. Treatment of vegetable oil mill effluent
using crab shell chitosan as adsorbent. International Journal of Environmental Science and
Technology, 9(4), pp.713-718.
12