Icon College HRM Report: Shell Trading International Limited Analysis

This report provides a comprehensive analysis of Human Resource Management (HRM) practices within Shell Trading International Limited. It begins with an executive summary outlining the critical role of HRM in organizational success, particularly in today's dynamic economic environment. The report then provides an overview of Shell Trading International Limited, discussing its operations and significance within the oil and gas industry. The core of the report delves into the purpose, functions, and responsibilities of HRM, including workforce planning, job analysis, recruitment, selection, orientation, training, development, and performance appraisal. It examines the strengths and weaknesses of recruitment and selection processes, and highlights key HRM elements and their effectiveness within Shell. The report also explores the importance of training and development, detailing different types of training employed by Shell. Finally, the report examines job and workplace design, and their impact on employee satisfaction and productivity. The report concludes by emphasizing the importance of effective HRM for Shell's continued success.

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Human Resource Management
Executive summary
Across all organizations, human resource management is a critical asset. The victory
of any organization depends on the efforts of the human resource management, especially at the
current world where the economy is becoming fluxing (Noe at el., 2017). However, there has
been much complexity in the management of employees and staffs, mainly due limited talented
resources. However, people are learning in order to gain appropriate skills, to perform a
particular task. Therefore, the management of various human resources in any business
organization is the principal function of human resource managers.
The scope of this research aims at assessing an overview of Shell Trading
International Limited. Moreover, the reports give a detailed discussion concerning purpose of the
human resource roles, functions and responsibility of the human resource management.
Furthermore, this paper aims at assessing approaches to workforce planning. Also, the
approaches to employees’ relation and engagement will be part of the discussion. Moreover, the
paper will discuss the external and internal factors that might affect human resources decision
making in Shell industry. Finally, the paper will examine the application of human resource
practices in Shell industry.
Introduction
An overview of Shell Trading International Limited Organization
Shell is an organization based in London, United Kingdom. The organization was
incorporated in 1998, and it is a subsidiary of Petroleum Company Limited. The company deals
with a wide range of trading activities, such as Oil products, Power and chemical, Gas, freight,
and other environmental products (Sharman, 2010, p.129). It mainly conducts its trading
business in Europe, Eastern, and Western Hemispheres. However, recent reports show that it is
one of the biggest oil tankers and fleet carriers around the globe (Jefferson, 2012, p.187).
Moreover, it has a significant role, since it provides maritime expertise to various external
customers and also other Shell companies.
Recent studies report that the extensive worlds Shell trading network allows the
organization to trade in 24-hour market presence. Another report from the same reviews says that
Shell company main active product is oil; however, they get oil from various suppliers and sell it
to many customers inside and outside the shell industry. Also, the same statistics apply to other
shell products such as natural gas, refined products, feedstock’s, and power. The wide range of
products has allowed Shell to dominate the largest worlds market share as reported from the
global statistics (Rack, 2017).
Shell industry aims at creating value to customers, shareholders, and other counterparties
around the world. However, Shell International Limited is opting for some changes in the
departments which aims at the restructuring of the departments. It is evident that Shell deals with
a wide range of products whereby various task are assigned to different departments. Therefore,

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to enhance the effectiveness of the organization, some changes have to be incorporated; thus, one
of the critical differences in the Shell industry is departments.
Purpose and functions of HRM in Shell Trading International Limited
Human Resource planning
Scholars report that this function pertains to demand and supply forecast of human
resources in any organization, thus determining whether the organization has shortages or
surpluses (Cascio,2015). Therefore, human resource planning is a significant component within
any organization to make sure that the rights human resource is available on time to attain the
organizational goals and objectives. Studies show that human resource planning follows
organization deliberate plans.
Shell is among the industries that implements the concept of human resource planning.
According to the latest reports, the company has a well-organized human resource department
that, make sure there is effectiveness in human resource planning. However, since Shell industry
has a variety of products, it is essential that the industry should have a well-organized human
resource planning.
Job Analysis
Landau & Rohmert argues that the role of human resource management is to analysis
various jobs according to the responsibilities and the requirements of the specific task, and thus
determine the best human resources suitable for a particular position (2017). Therefore, job
analysis is a critical component to any organization wishing to have productive human resources.
In the case of Shell industry, where there are varieties of products, job analysis is a significant
approach since it helps the human resource department to categorize various employees
according to their skills, thus placing to their right job.
Recruitment and Selection
Research shows that recruitment pertains to the process of attracting potential employees
through advertisement to apply vacant position in any business organization (Lievens &
Chapman, 2010, p.137). On the other hand, a similar study says that selection pertains to
identification of the right person from a variety of candidates where the candidates pass various
stages of selection. Therefore, recruitment and selection are significant components of any
organization. According to recent reports, Shell industry has a capable human resource
department that conduct selection and recruitment every year.
Orientation & Induction
Orientation & induction are crucial functions of human resource management. Scholars
argue that this process follows recruitment and selection. According to Lunenburg (2011, p.4),
orientation pertains to familiarizing new comers with the organization culture, values, ethics, and
working conditions. For a company like Shell industry, which is very big, the process of
orientation is a crucial function which familiarizes the new employees with various departments
and the organization background.

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Training and Development
Latest findings show that recruitment and development are vital functions of improving
the knowledge of the current employees to increase their productivity. Furthermore, it is the
process of imparting knowledge and skills to the employees to increase their efficiency and thus
improve performance in the organization. Recent reports show that Shell trains its employee
every year. Therefore, similar reports show that Shell industry improves in its productivity every
year by 30% (Cohen, 2017, p.154).
Performance Appraisal
Studies say that performance appraisal is done after an employee has several years of
services in the respective organization (Brown, Hyatt & Benson, 2010, p.386). Performance
appraisal is an essential function of HRM. Thus, the assessment of workers helps to determine
future promotions, increments in salary, and incentives. Authors reports that Shell industry
highly employees this function in its operations.
Compensation planning and Remuneration
According to studies, it is the role of HRM to establish various rules and regulations
regarding compensation planning and Remuneration (Patnaik & Padhi, 2012, p.42). According
to similar studies, employees should be compensated depending on their work done. Reports
from Shell industry show that it has a well laid down established rules and regulation regarding
compensation. Better compensation policy prevents conflicts between the employees and the
management.
Weaknesses and strength of recruitment and selection
Recruitment & selection are significant functions of HRM in any organization. Studies
say that recruitment pertains to attracting candidates to apply the employment opportunities
(Trautman, 2012, p.75). On the hand recruitment is the process of choosing a suitable candidate
out of many applicants. Therefore, the quality of competent human resources depends on these
two functions. However, the process of recruitment & selection has some strength and
weaknesses.
` According to SWOT analysis, recruitment and selection are accompanied by various
strength and weaknesses (Helms & Nixon, 2010, p.220).
Strengths
• Organizations management highly supports the recruitment process.
• Correction of complete and accurate job information which enhance the efficiency of
the recruitment process
• Use of various applicant tracking system increases the effectiveness of the recruitment
process and selections

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• Also, the right candidate with the required skills can be obtained since the process of
recruitment and selection involves a lot of detailed screening.
• The process involves few administrative steps which save on time.
Weaknesses
• Recruitment and selection may lower morale of existing candidates in case new
candidates are recruited to take a higher position in the company.
• The process is expensive since the thorough screening of the candidate is done to
assess their viability and make sure the selected candidate meets the required skills.
• More time is wasted, on the process of recruitment and selection since various steps
are involved.
• The selected candidate may fail to adopt the work culture of the organization, their
low performance.
Key Elements of HRM and their effectiveness in Shell Industry
Training and development
Studies reveal that training & development are critical functions of HRM in any
Business organization. According to Cohen (2017, p.154), training is the process whereby
employees are educated and instructed on matters about their area of specialization. Majorly,
training aims at instructing employees how to use the various machines in the workplace to
increase the organization's productivity. On the other hand, development pertains to overall
education growth and qualification of people to handle managerial positions in an organization.
Studies reveal that the process of development relates to adaptability, leadership, attitudes,
insight, and human relation.
According to recent Shell industry reports, it is evident that the organization makes use
of training and development as one of its critical strategic programs (Grant, 2013, p.94). Similar
studies reveal that Shell industry provide various coaching and training programs to their
employees from different business leaders. This approach applies to every employee working in
the industry, regardless of their gender, location, physical abilities, and ethnicity.
The need for training and development
Training enhances organization productivity through the increase of quality and quantity
of employee’s workforce (Grossman & Sales, 2011, p.105).
Training reduces the cost and time required by organizations to achieve their goals since
the employees attain the necessary experience to accomplish the organizational goals.
Training makes it possible to identify the skilled and talented employees; thus the
organization can give them more technical jobs.

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Training makes the employees have job satisfaction, thus boosting their morale.
Practical training reduces the cases of supervision since they are knowledgeable on the
assigned task.
Training enhances efficiency in an organization.
The need for development
Create an active and sustainable manager to handle company issues and operations
Development ensures the long-term growth of the company
Development ensures that the company has enough managers to manage various
departments
Development program enhances the use of the latest techniques in various professional
fields
Types of Training employed by Shell industry
Refresher training. According to scholars, refresher training is the training imparted to
employees to incorporate the latest developments and upgrade employee’s skills (Nishiyama at
el., 2015, p.60). Reports from Shell indicates that the company has been implementing this kind
of training in many years; thus, they have remained productive in the industry.
Induction training. Studies point out that induction training is training imparted to new
employees to make them familiarize with the internal environment in an organization
(Chidambaram, 2013). Also, the new employees can understand the policies, code of conduct,
and procedures. In the cases of Shell industry, induction training has been highly effective to
their new employees.
Vestibule training. According to findings, this kind of training is actual training of the
employees in an organization, but it is conducted away from the organization (Chatzmouratidis
at el., 2012, p.663). Shell industry has been training most of their employees away from the
organization, thus making enhancing their efficiency.
Apprenticeship training. This is a kind of training where a worker spends sometime in the
workplace with s supervisor to handle different instructions (Muehlemann at el., 2010, p.808).
According to Shell reports, most of these tasks in the industry are technical; therefore, they
required detailed instructions by the supervisor in case of new employees
Job and workplace design
Researchers point out that job and workplace design plays a significant role in
organizations productivity (Eaves at el., 2016, p.13). Good workplace design employee’s
satisfaction and boosts their morale to work in the organization. According to studies,
productivity is profoundly affected by various design factors such as flexibility, comfort,
privacy, and access. Therefore, an organization should emphasize on workplace design to
eliminate barriers to productivity. Shell industry provides a good workplace design, which boosts

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the morale of their employees into work in the organization (Kassim & Ali, 2010). Also, suitable
workplace design leads to balanced and healthy cultural variations and promotes teamwork
among their employees.
Reward management
Reward management is another critical element of human resource management.
Armstrong (2010) argue that benefits and achievement by employees concerning their job
performance is referred to as reward. Therefore, HRM should plan a suitable reward system and
communicate with their employee in advance. Thus, an organization should attract a
transparency reward methodology to boost, motivate, and empower the human resources. Thus,
in the cases of Shell industry, the reward is a critical factor which is appropriately defined to
every employee. Recent reports reveal that Shell intends to simplify its staff bonuses taking into
account individual accomplishments and performance (Stadler, 2011, p.45). It was ascertained
that success at the division lever would not be a factor anymore.
According to studies rewards are of two types; extrinsic reward and intrinsic reward
(Twenge at el., 2010, p.1120). Scholars argue that extrinsic reward mainly involves financial
rewards such as bonuses awarded to employees by their employers. On the other hand, the
extrinsic reward is mainly psychological rewards that are given to employees by performing well
and doing a meaningful job. In the case of Shell industry, the extrinsic reward system is highly
valued to their employees mainly through bonuses which are given to hardworking employees to
motivate them.
The relationship between motivation theory and reward
According to studies, motivation influence human resources to work better in an
organization improving productivity (Lepper & Greene, 2015). Therefore, motivation can either
be financial and nonfinancial. Financial motivation involves rewarding employees through
salaries, bonuses, and commissions (Manzoor, 2012, p.10). On the other hand, non-financial
motivation consists of praising the employee because of performance.
The Internal and external factors that influence HRM in the decision-making process
Employees relations
Studies reveal that employees are significant assets in an organization. Therefore,
maintaining a good employee’s relation is critical in any organization (Gill at el., 2010, p.9).
Similar studies state that employees’ relation is the relationship between various employees in an
organization. Therefore, employees must maintain a good relationship with one other to enhance
a productive working environment and deliver the best performance. Shell recent reports clarify
that employee and industrial relations are usually maintained by the Shell human resource
account manager who ensures that employees are motivated and have good morale to work in
shell industry (Skedinger, 2010). Also, the HR accounts manager maintains and builds a stronger
relationship with the employees' representatives in the Shell industry.
Critical aspects of employees’ relation management and employees’ legislation

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• There should be open communication.
• Good relation should show recognition.
• There should be constant feedback.
• Investment on employees.
Strategies for building effective employees relations and engagement in Shell industry
• The organization should always select the right managers.
• Coaching all the managers.
• Use of survey to assess the extent of employees’ engagement.
• The organization should define suitable engagement goals.
• They should always focus on employees’ engagement at the local and organization
level.
Employment Legislation
According to Scholars, employment legislation affects the HRM decision making the
process in various ways (Skedinger, 2010). For instance, HRM decisions such as labor relations,
employee’s retention, employee’s criminal records, and other worker’s requirements. Trade units
play a significant role in employment legislation. They negotiate on behalf of employees to
ensure better pay and good working condition for employees. Shell ensures that there is suitable
employment legislation through the establishment of group-wide ethics and compliance
programs. They also, provide guidance and training to their employees, to make them understand
their responsibilities on ethics and accordance with the organization law (Golden, 2012, p.33).
Trade unions and workplace representations
Trade unions play a significant role in fighting for employees’ grievances. They act as a
link between the employees and the organization. They facilitate collective bargaining for better
pay to workers and suitable working conditions (Gumberell & Hyman, 2013). Also, they
enhance the improvement of public services, political campaigning, and taking any industrial
actions. Majorly, they help to resolve issues between organizations and employees. Studies show
that Shell industry permits their workers to engage in trade unions (Tooksoon, 2011, p.42. Also,
the industry maintains a good relationship with trade unions, through better pay to workers and
suitable working conditions.
The role of trade unions
 They improve working conditions.

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 They implement the minimum wage that an organization should award their
employees
 They enhance equal legislation
 They eradicate cases of child labor
 They strengthen the improvement of parental leaves
 They encourage and improve healthy working conditions.
Application of Human Resource Management in Shell industry
Over decades now, Shell industry has experienced high growth throughout the country.
Subsequently, there have been some issues of employees’ turnover reported. Thus, they are a
vacancy in the department of oil refinement (Teoh & Mashitah, 2010). That need to be filled,
therefore the industry has hired me to be the new human resource manager in the organization.
Survey shows that the organization has been highly relying on single recruitment methods,
whereby they usually advertise their current vacancies on their website. It is evident that Shell
industry is growing at a higher rate, but it lacks an effective human resource strategy to manage
current and future work.
However, the existing recruitment and selection, I am supposed to conduct involves the
following criteria (Grellier at el., 2012, p.899);
 The candidates are supposed to present their CV and a cover letter.
 The human resource manager determines who should be given an interview.
 The potential candidates are invited to interview, which is composed of three
members panel.
Interview profile
Job description
 To monitor gauges, indicators, instruments, and meters to and report any
problems.
 Inspect and adjust, heaters, damper controls, and furnaces
 Regular cleaning of processing units by passing solvent and chemicals
 Detecting any malfunctioning units using meters and gauges
 Controlling all processing units’ activities
 Testing various liquids for color and chemicals.
 Visiting various units to ensure they operate efficiently
 Reading and recording temperature in pressure gauges and flow meters.
Job specification
 Must have a bachelor’s degree in Petroleum Engineering from a recognized
institution
 Must have proven experience oil refinement

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 Must have a minimum of three years if oil refinement work experience
 Should demonstrate both verbal and written communication skills
 Has a high level of professionalism?
 Should have licenses, credentials, and certification
 Must attach a CV with relevant documents
Preparatory notes for an interview (Fong at el., 2011, p.710).
 Why did you apply for this job?
 What do you know about Shell industry?
 What contribution will make to shell industry?
 What would you do in cases of failure of some processes?
 What is your plan for the next three years?
Job offer letter
Dear Nick Pablo,
With great pressure, I am happy to extend the following employment offer to you.
Position: Oil refinement
Start date: 5/06/2019
Salary: $10000 per month
The employment offer follows the successful completion of a background check up,
selection interview, drug screening, and reference check. However, this offer is not a contract of
employment; thus, it is subjected to termination by either party with or without cause.
Sincerely,
K.N
Conclusion
From the discussion, HRM is a significant approach in resource management. It is
evident that human resource management focuses on various functions such as recruitment &
selection, employees’ compensation & remuneration, performance appraisal, job analysis, and
employees training & development, and employees’ motivation. Also, human resource
management has a variety of importance, as reported by various scholars. HRM contributes to
the enhancement for employees’ relation, the motivation of workers, employment of skilled
employees, HRM aims at reducing the overall cost and in return, increase the organization
productivity.

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Shell International Trading organization is the trading industry with a variety of products.
Moreover, it has various branches across the world. Shell industry has a well-established human
resource department in each company that operates under the Shell industry. The active HRM
make sure that various organization departments have the required amount of resources.
However, in case of shortages, HRM takes the role of recruiting and selecting new employees.
Thus, over many decades now, the Shell industry has recorded a high amount of profit margin
across the globe. The high productivity is contributed by the increase in performance of workers
in this industry.

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