Strategic Global HRM & Decision Making: Analysis & Recommendations

This paper provides an analysis of Strategic Human Resource Management (SHRM) within Addax Petroleum Nigeria Limited, examining its alignment with business strategies, organizational culture, and decision-making processes. It evaluates the company's HR policies, including talent acquisition, employee retention, and risk management, while also considering the impact of globalization and cross-cultural environments. The paper further explores legal frameworks, grievance procedures, and financial factors influencing HR initiatives. The report identifies areas for improvement, such as implementing simulated knowledge sharing, and reflects on personal and professional development through leadership experiences. The analysis offers recommendations to enhance Addax Petroleum's SHRM practices and optimize workforce management in a globalized context. Desklib provides access to similar documents and study resources for students.

Running head: STRATEGIC GLOBAL HRM & DECISION MAKING
Strategic Global HRM & Decision Making
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1STRATEGIC GLOBAL HRM & DECISION MAKING
Table of Content
Introduction......................................................................................................................................2
Analysis and evaluation of HR policies...........................................................................................4
Organisational culture, power, politics and conflict:.....................................................................10
Legal frameworks for Grievance and disciplinary process...........................................................16
Financial factors and HR infinitives..............................................................................................20
Personal and professional development.........................................................................................24
Conclusion.....................................................................................................................................27
Reference:......................................................................................................................................29
Appendices:...................................................................................................................................34

2STRATEGIC GLOBAL HRM & DECISION MAKING
Introduction
Background of the study
The Human resource management implies the developing and maintaining the effective
workforce in a systematic way that can increase the integrity and efficiency of the business
operation as well as the quality and profitability of the business. Therefore, it is obvious that the
human resource management of any company should have a strong connection with the business
strategy, management and practice of the organisation (Armstrong, 2012). The Strategic Human
Resource Management allows the organisation to build and maintain the Human Resource
Management aligned with the strategic business operations. Strategic human resource also
implies the inter relationship between the people, organisation, culture and environment. The
business compliance and the operational disciplines are also the subject to be implemented in
internationalize operation of an organisation. With regards to the business compliance the ethical
issues in workforce is also a significant factor that regulate the Corporate Social Responsibility
as well as the operational integrity.
Background of the company (Addax Petroleum Nigeria Limited)
Addax Petroleum Development Nigeria Limited is an Oil and Gas Exploration and
Production Company is a subsidiary of Addax Petroleum international. The company was
founded in 1994 in china. Currently, the Company has 25 licensed blocks where 15 are under
exploration and 10 are under development (Ide.go.jp, 2018). The mission of this company is to
develop sustainable economic and social value through effective exploration and production of
energy resources like petrochemicals and gas. Addax Petroliam international has a global
business distribution having the major bases in Nigeria, Gabon, West Africa and Kurdistan

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Region of Iraq. For its cultural and ethical values the management of the company believes that
prioritising their business ethics through which the company can evolve to the further level and
defines the integrity of the employee relationship along ensuring the interaction and
understanding of all stakeholders. Addax Petroleum is one of the largest independent oil
producers with average production of 136.5Mbbl/d for 2008 (Ide.go.jp, 2018)). The Addax
Petroliam Nigeria has five operational drilling rigs in Nigeria amongst which two are jack-up
rigs, one is semi-submersible and other two are land rigs. The company has 1525 employees
globally. The headquarter of Addax Petroleum Nigeria is situated at 10, Bishop Aboyade Cole,
Lagos, Lagos, Nigeria (Ide.go.jp, 2018).
Structure of the paper and purpose
In this paper the Strategic Human Resource Management of a petrochemical company
named Addax Petroliam Nigeria Limited has been analysed along with their political, cultural
and tactical interventions in decision making and work force handling. At the very beginning the
background of this company has been discussed along with their current and potential HRM
policies and strategies. Then the organisational culture, power, conflicts and other aspects have
been discussed while aligning them with their business strategies and practical consequences.
After that, this paper critically evaluated the range of theories to legal framework of the
organisation including grievance and disciplinary process while exploring the global and national
level strategies. After that the financial models that are used in this organisation to strategically
handle their workforce while making optimum profit, has been discussed while comparing the
global economy and financial value changing consequences within it. At the end, one of the
event has been identified and analysed criticising how that event helps me to my elevated my
personal and professional development procedure in a role of leader and manager. The purpose

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of this essay is to analyse the strategic HRM of Addax Petroliam international to male
appropriate recommendation for them while making personal and professional development
module for me.
Analysis and evaluation of HR policies
The importance of aligning HR strategies with corporate strategies
The HRM is one of the most important operations in any business organisation that deals
with the workforce of the organisation. On the other hand, the Human Resource Management
does not directly indicate the strategic business operation of the organisation in a particular
industry (Stahl, 2012). However, the HRM policies and techniques help any organisation to build
their competency level strong enough to develop and sustain in the industry while making
increasing profit. Therefore, the major regulators of the strategic business operation namely
mission, vision, operational ethics and integrity rely on the employees of the organisation
(Armstrong & Taylor, 2014). In another words for developing, implementing and sustaining an
effective business strategic model, a company must align their workforce and the workforce
management with the business strategy. This alignment of HRM policies and strategies are called
strategic human resource management. Many benefits this alignment or strategic HRM can be
highlighted.
For any organisation, the Human resource management policies are the subset of overall
organisational business policies that are not limited within the recruitment, training and
development. At the same time, globalisation is the part of this strategic human resource that
allows the parent organisation to handle the diversity management of the dissimilar environment
simultaneously (Bratton & Gold, 2012). The five P’s Model allows any company to develop their

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strategic HRM model. The components of 5 P’s are Philosophy, Politics, Programs, Practices,
Process. Philosophy refers the statements of the company that hold the value and ethics of the
company and how they treat their employees and their cultures. Policies refer the initiation and
implementation of shared values and guidelines for various related business issues. Programs
refer the group of activities that are used to initiate and perform an organisational change or
effort to achieve certain objectives (Brewster et al., 2012). Practices refer the regular behavioural
operations that allow the workforce to execute their regular activities in a certain way. Processes
are a group of synchronised activities that defines the way of executing the operation for the
workforce.
The HR strategies and policies of the organization globally
The Globalisation phenomenon is a essential aspect that must be highlighted during the
strategic business planning of a internationalised company like Addax Petroleum. Generally, the
global phenomenon emphasizes the Global Communities, Global Markets, Global Production,
Global Economy, Global organisation and Global Socio-ecology. Therefore, an internationalise
organisation has to considers this factors. Along with this global phenomenon, the most crucial
aspect within the organisational operation is Global Strategic Human Resource Management that
allows the company to handle the diversity of labour market and employees of the dissimilar
environment simultaneously (Liu & Lee, 2008). In another words, Global HRM refers to
managing the organisational operation outside the domestic boundaries; comparative HRM
practice, functions, system in different countries; managing international workforce in domestic
environment, managing people under the influences of globalised environment.

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Corporate Strategy
Globalisation
Business Strategy
HR Strategy
Strategic Options for IHRM
Competitive Advantage
Figure 1: Human Resource Strategy and Globalisation
Source: (Iles & Zhang, 2013)
A globalised organisation has to face some challenges to perform their HR activities such
as adopting the HRM policies of operational nation, preparing the flawless unitary HRM policies
that fit in every corner of the world, managing strong Corporate Social Responsibilities (CSR),
preparing global leadership, identifying skill for local level and adopting the business
compliances. The essentiality of these factors differs as per the complexity and environment of

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the national regulations and code of conducts enforced by the nation in which the particular
branch or subsidiary of parent company is performing. Within all of these factors cross cultural
environment is the major constrain for diverse operational environment. When a company spread
the branches into different cultural part of the globe, they must consider and prepare the strategic
tools to handle a workforce of racial and cultural diversity (Tahvanainen, 2010). This diverse
work environment occurs both overseas and domestic brunches of the business depending on the
integrity of strategic intervention of the globalised human resource management. Apart from
that, the company should also aware of the local laws for the hiring and other HR policies while
managing the remote workforce. In order to fulfil the business objectives with strategic HRM the
company should develop the global competence, cross-cultural awareness, sensitivity, agility and
humanity.
The effectiveness of current HR policies
Addax Petroleum Limited is an international company that manages and control global
workforce while considering the cultural diversity within the work environment for both
domestic and overseas platform. The major tactics that the Strategic HRM of Addax
International utilises is attracting the workforce towards the global business objectives that
makes the strong bound within the organisational culture and collective performance. For this
company the workforce competence is the major regulator that influences the risk management,
CSR operations, inclusion and employee relations of the company (Dix, Forth & Sisson, 2009).
For this same reason, the company also promotes its talent acquisition, employee retention,
recognising and rewarding within their workforce. Another individuality of Addax Petroleum is
its utilisation of competitive risks and potentials in HRM. Although the origin of the company is
china this company has made many effective strategic decision within their workforce policies

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that made them strong enough to penetrate the west Asian and African market of petrochemical
exploration and production. Addax Petroleum changes their strategic HRM policies in every 4
years to sustain the quality and efficiency of the strategic choice and implementation. The
reviewing and revising strategic HRM plan allows the company to establish optimal fit between
the organisation and environment.
When it comes to the organisational structure development in a wider business platform
the strategic human resource management helps Addax Petroleum to increase their productivity
by performance measurement while keeping the balance within the organisational culture, power
and politics. One of the most essential practices in this SHRM is performance measurement
while analysing the cultural and political competence level of the Workforce that are involved in
the development and sustention of the operational integrity within the organisation (Harris,
Tuckman & Snook, 2012). This strategic implementation of standard HR management is also
appropriate for the organisational change management. Addax Petroleum Limited is a company
where an employee has to work with his or her colleagues from different cultural and social
background that also promotes the ‘unity among diversity’ concept. On the other hand the
internationalise operation sometimes makes unwanted conflicts between different financial plans
and value change models where the budget of each individual operating centres are different.
Negotiating with local supplier and other business partners is the key activity that the
organisation performs when needed (Rich, Lepine, & Crawford, 2010). This type of negotiation
have been proven very effective when the deal with the cross-cultural environment of middle-
east countries.
Recommendations for improvement

9STRATEGIC GLOBAL HRM & DECISION MAKING
Addax Petroleum Nigeria as well as Addax Petroleum International Limited has many
strategic procedure to manage their Human Resource system in a globalised environment while
considering the cross cultural conflicts and negotiations. However, there are some other factors
that can improve the overall strategic implementation and performance level of their existing
Human Resource Management.
As a multinational farm Addax Petroleum can implement simulated knowledge sharing
that can allow the organisation to train and develop a large range of employees. The simulating
knowledge sharing can also reduce the operational cost of the overall strategic HRM
implementation. The company has enough wider platforms and verity of environments that will
allows the management to implement this simulating knowledge sharing concept (Lipsky, Seeber
& Fincher, 2003). Selecting appropriate experts within the workforce who can show the other
workers how to process and implement the skills while sharing the knowledge. While managing
this knowledge sharing will be implemented through simulated environment, Addax Petroleum
should focus on their talent recognition procedure.
Informational integrity is one of the major issues in recent years when it comes to the
globalised human resource management of a multinational farm. Addax Petroleum can improve
their leadership model by implementing best fit model within it while making appropriate
performance and concept within their work process and business activities. In this regards,
enforcing strong and effective organisational structure is also important (Purcell, 2014). The
transparent human resource allocation is the key tool to achieve this goal of strengthening the
organisational structure. Every employee should know the roles and responsibilities under the
terms and conditions of the organisation.

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Building a conductive social and cultural architecture within the employee relationship is
one of the most essential part of developing the optimum SHRM for any multinational company.
Addax Petroleum has workforce from diverse cultural and social diversity, where cross-cultural
workforce management and communication can solve any operational conflict (Saundry et al.,
2014). To improve the performance and integrity of different operational centres across the globe
Addax Petroleum should building a conductive social and cultural architecture within their core
organisational operation of human resource management.
Organisational culture, power, politics and conflict:
The term organizational culture is referred to the values as well as behaviors of the employees in
the workplace that contribute to the unique psychological as well as social environment of an
organization. The organizational culture of a company represents the collective values, principles
and beliefs of the employees and is a product of factors that includes history, product, market,
types of employees, technology , vision, mission and values of a specific company and the
management style followed by the management of that company (Robertson & Marwick, 2009).
Relationship between culture, power, politics and conflict
In spite of the fact that Power, politics and conflict are three more unwanted part of the
organizational culture, in majority of organizations these three factors are found to be the most
prevalent as well as real valued. Power, politics and conflict has the potential to influence the
behaviour of the employees and impose an adverse impact on the decision making process of an
organization. According to Schein, (1985) there prevails three levels of culture that includes
corporate culture, social enterprise culture and organizational and sub culture. Corporate culture
can be defined as a set of tacitly understood, broad rules that helps the employees to handle

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adverse as well as unimaginable circumstances. In contrary, organizational culture holds the
organization together by focusing on values, beliefs as well as expectations that members of that
organization are entitled to share. Power politics and conflicts are three parts of both corporate
as well as organizational culture that needs to be managed and eradicated by the management.
Figure 2: Managing organisational Culture, Power and Politics
Source: (Saundry & Wibberley, 2014)
When it comes to power and conflict three different approaches, namely, unitary, pluralistic and
radical approaches are followed by organizations to deal with the two mentioned factors. Three
approaches can be segregated with respect to zero sum and non zero sum power. Zero sum
power theory can be defined as the theory where the gain and loss of an participant is exactly
balanced by the losses and gain of other participants (Armstrong, 2014). On contrary, non-zero
sum power theory includes a situation where the gain or loss of one decision maker does not
impose any impact on the gain or loss of any other decision makers. The Unitary approach of