Human Resource Management Report: British Petroleum HRM

This report provides an in-depth analysis of human resource management (HRM) practices within British Petroleum (BP). It explores the core functions of HRM, including workforce planning, recruitment, selection, employee management, performance management, and employee relations. The r...Read More

HUMAN RESOURCE
MANAGEMENT

INTRODUCTION
Human Resource Management is a very crucial part of any organization. It plays an
essential role in in performing various functions of organization. Its primary task is to manage
the workforce within organization and to make sure they are performing their work as per the
desire of management and which are helping in achieving objectives of the Organization. HR
manager of an organization hires best possible candidates for the organization so that the
company will have a competitive edge over the others (Bhamra, Dani and Burnard, 2011).
British Petroleum follows various strategies for selection, recruitment and promotion of
employees within organization. The role of HR department is quite wide they are responsible for
not only hiring people for organization but also to manage and maintain them so that they
enhance the overall productivity of the organization. HR manager is the representative of the
organization; they represent the company in various dealings of organization. Therefore HR
manager plays a very crucial role in the workings of Organization.
P1. Purpose and functions of human resource management applicable to workforce planning and
Resourcing
Human resource is the asset of any organization. A company can not think to achieve
heights of success until it carries a motivated workforce with itself therefore management of
human resources is a very important aspect of any business organization. The various functions
of HR department of British Petroleum can be summarised as follows:
 Employee Management – HR department of BP is responsible for providing different
types of training to work force of the organization so that they are fully trained and
motivated and contribute effectively for organization. The company should implement
new and innovative methods of training for their employees (Cavusgil and et. al., 2014).
HR Manager of an organization is also responsible for management of various conflicts
within the organization, if at all they arise. This will ensure that employee remains
motivated and they will feel a sense of belonging for the organization.
 Performance Management: HR Manager is responsible for maintaining a healthier
environment within an organization. If there is a situation of any conflict it has to be
managed by the HR manager. It helps in increasing productivity and performance of the
organization.
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 Employee Relation: HR Manager of the organization is responsible for maintaining an
effective relation within organization, It will help in maintaining effective relationship
with other employees as well as with senior management of the company. Conflict
Management is also a part of this process of maintaining employee relation.
Functions of Human Resource Management
Recruitment and Selection: HR manager is responsible for recruiting the right kind of
talents and people for the company (Cleaver, 2017). This is done by performing various
recruitment and selection procedures like Interviews, Group discussions etc.
 Planning: HR Department of the organization is responsible for preparing various types
of plans and policies that will help in effective recruitment and selection of various
applicants.
 To Maintain a Positive Vibe: HR Manager of British Petroleum is also responsible for
maintaining a good and positive vibe within the company, so that employees will feel
enthusiast and Motivated.
 Training and development: The main role of HR department would include effective
training and development of employees and workforce within the organization so that
skills and knowledge of employees can be enhanced.
There are various purposes of Human Resource Management as well which are being discussed
as follows: Internal Customer Management: HR management defines and implements the processes
and policies necessary to attract, recruit and retain a quality workforce. It is one of the
Fundamental Process of Customer relationship Management. Human resources do have a
direct impact on the workings of company and thus it is necessary that they are managed
in an efficient manner. The importance of Customers and their management starts with
the proper management of Human resource in the longer run. Thus, Management of
customers through Human Resource is a major aspect of any business and thus growth
can be achieved in the longer run. Cultural Management: It is also a major purpose of Human resource Management. A
organisation consist of people who belongs to different countries as well as cultures and
thus it is essential to make sure that there is proper harmony between all the cultures in an
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effective way and thus business can be done in longer run by maintaining the level of
efficiency as well as productivity among employees of the Firm.
 Laws: The maintenance of employees along with their hiring through recruitment as well
as their termination has to be done as per the laws and legal procedure of federal and
states. Thus Human resource management involves a better understanding of these
statutes as well as laws in an effective manner. Writing, updating and distributing the
company's employee handbook, with the input of the firm's lawyers, is an HR
management duty. Human resource management helps to structure employment
contracts.
P2 Strengths and weaknesses of different approaches to recruitment and selection
Recruitment: It is known as the process of finding or hiring the best qualified candidates
for a specific job. This process consists of analysing the requirements of a jo, attracting
employees to that particular job and screening of them accordingly.
Selection: it is an effective process of selecting the most suitable candidates for the vacant
position in an organisation. In other words, selection means weeding out unsuitable applicants
and choosing those individual with prerequisite qualification and skills of the candidates.
In order to hire employees, organization implement various procedure of recruitment and
selection. Organization put their best possible efforts in implementing different methods of
recruiting and selecting who are fit for that particular post. It considers internal external as well
as third party sources to recruit various applicants for different types of posts (Decker, Riley and
Siemer, 2012). Organization provides various salary package, employee agencies, labour
contractor and various other things.
External Source: It refers to recruitment of employees from an outside source other than
organization. HR manager recruit’s peoples from various external sources like Colleges,
Newspapers, Magazines etc.
Strengths: British Petroleum is a well renowned branded company in UK and therefore
working in that company is a dream for many individuals, therefore company verify employee’s
education and experience before offering them an offer letter for the job. External source is a
cheaper source of recruitment than internal source.
Weakness: Lot of capital is needs to be invested in order to hire new applicants from
external source and this sometimes turn out to be expensive for the organization. External
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Recruitment reduces the morale of existing employees and may lead to a reduction in
productivity of organization.
Internal Source of Recruitment: It refers to recruitment of Employees within the
organization. It includes transfer of employees and promoting them, giving various
recommendation and other ways etc.
 Strengths: It helps in building a good reputation and image of company within the
organization and its employees. It is a very less time consuming process also the money
needed is less. The company do not have to waste time in recruiting from external source
and its time is saved which can be used in focusing on business operation of the company
(Disch, 2016).
 Weaknesses: Organization do not put extra effort in recruiting people. Company lacks
new and innovative talent through this procedure because only existing people from the
organization is selected. It may put company
All the above mentioned approaches of recruitment and selection is essential for the HR
manager to taken into account while selecting any candidate for the job. This will assist the
company to known all the information about the candidate skills and their knowledge.
P3. Benefits of HRM practices for employer as well as employees
HRM practices: It would represent all specific rules and regulation to HR managers on
different matters that are associated with employment and state the intent of an organisation on
various aspects of HRM. Like recruitment, promotion, compensation and selection. HR can
handle employee relation, benefits and allowance which are vital for the employees. This will
assist in attaining overall aims of an organisation.
It is essential that human resource department of British Petroleum implement various
policies and procedures so that effective Management of human resource can be done. Proper
Human resource management will lead to benefits for not only Employer but also employees.
The various benefits to employer and employees can be discussed as follows:
EMPLOYEES
 Good Working Environment: HR manager of organization make sure that the
environment within the organization is decent enough and it crates positive vibe within
the organization. If the environment within the organization is good they will be
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motivated to work well for the company and it would lead to achievement of goals and
objectives of the company.
 Career Growth: As a part of various Promotion and compensation programmes the
human resource department of the company make sure that employees of the organization
are getting their compensations on time and Timely increment in incentives is done by
the management of the company (Ellison and Boyd, 2013). It helps in improving
performance of the company. It also helps in building up career of employees by giving
them new responsibilities and hence it will result in an effective growth and expansion of
the business of company.
 Motivation: HR manager is responsible for motivating people within the organization by
applying various policies and procedures that will increase the motivation aspect within
employees and it will result in an efficient performance of the company. It increases the
energy level in employees and it compels them to perform different types of tasks
confidently.
EMPLOYER
 Reduction in Conflicts: An effective HR practices will help in identifying the causes of
conflicts and those can be managed properly and solution of the same can be achieved
easily.
 Quality of work force: Quality of work force can be enhanced by applying effective
HRM practices at marketplace. If they are given high quality things for performing their
tasks it will enhance their efficiency even more (Flamholtz, 2012).
 Achievement of Objectives: If proper training methods are applied by HR manager for
training of individuals it will help them in achieving goals and objectives of the firm.
From the above mentioned benefits of HRM practices in accordance to analyse the actual
need of the employees and employer from the company. By doing this, all the specific goals of
an organisation can be attained effectively in near future time.
P4 Effectiveness of HRM practices to raise profits and productivity
Human Resource Management proves out to be effective for British Petroleum in context
of raising organisational productivity and profit. By implementing HRM practices in business
operation, firm can accomplish immense profit and productivity by the following manner:
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 Innovative and high performing employee's: British Petroleum's HRM practices
promote innovative working environment and motivate their personnel by providing them
better and flexible facilities. For example: Including personnel in company's decision-
making process makes them important and motivated. All these initiative taken up by
company encourage increased profit as well as productivity (Fulton and et. al., 2011). It is
seemed that innovative employees always try to do things in creative way which enables
the organisation to finish their work in less period of time. This will result in in
enhancement of overall profit margin and productivity of an organisation.
 Effective direction setting and execution: Managers and leaders plays crucial role in
setting purpose, goals, direction, prioritise, objectives, roles and responsibilities of
worker. HRM help British Petroleum to hire suitable manager for the right place at right
time. Manager with effective skills and competency lead the organisation to superior
place with productivity and profit. Direction giving by manager is directly proportionate
to the working of employee which means if manager gives right guidance to personnel,
chances of attaining the specific task increased immensely. Adoption of such kind of
practices within the organisation help to build effective relation between manager and
employee through positive working environment. This will have direct impact upon the
performance of employees and improves profitability of organisation.
 Effective rewards drive performance: When monetary rewards are linked directly with
worker's performance and with each specific goals, workers reinforce them along with
the task more dedicatedly and seriously (Greenberg and Colquitt, 2013). This is what
happened after British Petroleum implements different HRM practices to companies
controlling process which ultimately lead to enhance their overall profits and
productivity. Proper rewarding system motivates the employee of organisation to perform
their function with high integrity as this will create the opportunity to earn large amount
of income according to their performance.
 Sharing and Collaboration: Profitability and Productivity of British Petroleum's
enhances magically when they allow others either individual or company from outside
the organisation to freely collaborate and willingly share best and creative ideas that
distinguish them from their competitor’s firms. In addition to that, company gets number
of options or solution for one particular problem which makes them best at dealing with
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such issue by choosing best possible solution. As application of this scenario allows the
organisation to take the advice of external parties regarding their issues. It helps to
respond effectively to attain objectives properly.
 Non-monetary factors that improve employee performance: Along with monetary
rewards, non-monetary factors also contribute towards improving the performance of
employees. For example: British Petroleum's leaders, managers and team workers gives
non-monetary reward to employee for their performance which will ultimately leads to
increase the energy, motivation, excitement, loyalty and commitment of workers.
Moreover, it not only improves the performance of exiting employee, but also leads to
encourage new workers as well. By seeing such vast opportunities, retention rate of staff
members also gets enhanced. Non-monetary factors normally include recognition, praise,
exposure, feedback, challenge, achievement and learning opportunities (Hobfoll, 2011). It
is the HR of the company that ensure leaders and managers regarding how to use these
non-monetary factors effectively and efficiently keeping in mind the performance of each
employee.
 Updating worker's skill to maintain productivity: In order to gain high competitive
advantage over rivalry firms, British Petroleum's has generated a massive pace of change
i.e. they will keep on updating the current skills and ability of their workers. It is the
responsibility of firm's manger to identify personnel with minimal optimal skills. In this
regard, the best practice which aid in development of skill among employees includes
training and development. This will help in improve them improve their personal skill
and build their professional career.
From the above stated different HRM practice it can be clearly states that HRM plays key role in
raising the productivity and profit of British Petroleum over their rivals in the market.
P5. Importance of employee relations and their impact on HRM decision-making
In order to increase the overall strength of the business, HR manager of British Petroleum
should make effort to build strong relationship among employee and management of
organisation. It will be helpful for the company to enhance productivity of organisation. It is very
important for HR manager to manage different work activities in effective manner.
Employee relation: It means the relationship which is shared by the employees of
organisation. It is the duty of manager of organisation is to take efforts which helps in building
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effective relation with their employee's. Good relation between employee and employer ensures
fair treatment with them (Kerlinger and et.al., 2013). It provides the opportunity to the employer
of organisation to gain the trust and loyalty of employees. It helps to build good relationship with
their employees and retain them for longer period of time. It also needed to maintain good
relation between the employees also. It contributes in development of good teams in organisation
and creation of positive environment at workplace.
Importance of employee relation
Large number of benefits are gathered by the management of British Petroleum through
maintenance of effective relation with their customers. Employees are the main asset of
organisation and satisfaction of their demands helps to attain their support in organisational
activities. Through good working relationship among employees helps to attain coordination
among different activities. It also builds effective communication channels in organisation. The
overall impact of such relation is ascertained on the productivity and profitability of organisation.
Different kind of benefits to British Petroleum is mentioned below:
 Improved decision-making: Guidance of employees helps in determination of the issues
which are actually present at workplace. It improves the decision-making power of the
management of British Petroleum (Moutinho, 2011). Decision making by single person
sometimes miss the important points which are necessary to see while making decisions.
Consideration of their views helps in attainment of their trust and loyalty.
 Easy to perform work: If the employees have good relation then it is easy to share work
among them. It provides the opportunity to accomplish their targets within stipulated
period of time with the support of their co-workers.
 Positive working environment: There is huge contribution of employee relation
regarding creation of team spirit among all of them. It helps in removal of the wrong
tactics from the workplace like office politics etc. It not only improves the performance
of individual employees but provides opportunity to the team to achieve their targets.
Supportive nature of all employees helps in building positive working environment where
employees easily work for 8 to 9 hours.
 Feel motivated: Good relation helps in motivation of the employees and improves their
trust and loyalty on each other (Renz and Herman, 2016). It improves the passion of
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workers towards their activities. It provides the opportunity to the management of
organisation to improve their productivity and profitability.
There are various ways to establish relationship among employees some of them are
mentioned below:
Better communication: It is vital for the HR manager to make strong bond between
employees so that effective outcomes in the form of profit can be come in near future time. it
will be directly impact on the overall environment of an organisation.
Share vision: It is very important for HR Manager to share different plan which are
implemented for proper execution of different projects. It gives proper path to work in systematic
manner.
P6 Impact of employee legislations on HRM decision making
HR legislation: It is known as the law that is been govern employment within the
workplace with everyone who work for the benefit for an organisation. It is directly impacts on
the employer, employees and unions directly. It consists of various types of employment
protection measures such as primarily in legislation, court ruling and collectively bargained
situation of employment.
There are various rules and regulations which are being framed by the government so that
business can run smoothly. There are various acts which are there in operation and it has a huge
impact on the decision making of company and HR Managers, there are some acts which makes
it compulsory for the managers to give minimum salary and bonuses to their employees and
hence these should be abided by the company otherwise it will pose problems for business in
longer tern going forward. Some of the Acts and legislations which have a direct impact on the
working of company are described as follows:
 Equal Pay act, 1970 – This act is states that there should be no discrimination between
males as well as female’s employees. Thus it aims at removing gender inequality. They
should be treated equally by the management of company. And the responsibility to
implement such thing rest with HR manager of the company. It helps in equal
diversification among employees in the organization (Schermerhorn and et. al., 2014).
 Health and safety Act – This act was created to ensure that safety and hygiene is
maintained at the workplace of the organization to ensure. It also ensures that various
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types of facilities are being provided to employees and it should be ensured also that
proper hygiene and cleanliness is maintained.
 UK employment equality act - According to this act equal opportunities should be
given to different participants. It barre’s discrimination and ensures proper and equal
treatment of both male and female employees of the organization.
 Employment contracts- This act is based on the roles and tasks which is employed
between the administration and employee in written form.
Trade union is basically called as labour union, they are the legal re-presenter of
employee working within an organisation.
There are various kinds of union role and responsibilities which are discussed below:
 It donates for wellbeing of people.
 It aids to uphold actual relationship among employees and organisation.
 Protect the right of workers
P.7 Application of Human Resource Practices
British petroleum is having a robust HR department which focuses on all round
development of Human resource of the company. The main job of HR department is to select the
best possible applicants for company. The basis of selection differs from company to company.
Usually the company specifies the job profile and then only those candidates are chosen who
match that job profile. Though now a day the role and scope of Human resource have become
much wider and it is not merely restricted in hiring people for positions which are vacant in the
company. The other role includes conflict management, improvement in working environment,
training and development programmes etc. The procedure followed by British Petroleum for the
purpose of hiring is as follows:
 Observing Vacancy: It can be regarded as the very first step of Selection and
Recruitment procedure under this, the vacancy which is them in the company is analysed
and that has to be fulfilled by the HR department of the company as soon as possible.
 Job analysis: The Next Step is to analyse the skill set that is required to perform that
particular job, for this specific purpose job specification and job description is are
prepared.
 Advertisement: The next step that is followed by the company is to advertise about the
vacancy through advertisements in newspapers and other media channels. It is a very
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crucial step of Selection process as if people would not be able to know about the
vacancy of the company they won’t get be able to apply and hence the efforts of the
organization will go into vain (Watson, 2011).
 Application Review: People who are interested and are eligible for the job should have
to apply on the official website of British Petroleum. These applications then reviewed
and screened by HR departments of the organization and if they found any candidate
suitable for the job they will reach the applicant by making a phone call or mailing them
in this regard.
 Interview: Once the call and mail is made to concerned employees in this regard, the
next step involve is to take interviews of the selected employees to judge their skills and
talents. Various qualities of an individual are judged by the interviewer during the
interview.
 Offer Letter: Once the Personal interview round is cleared by the individual the next
step of the recruitment process is to generate an offer letter for the employee. The offer
letter contains full information regarding the company and its policies with regards to
human resource. It contains every information about the salary that will be offered to the
individual along with the incentive schemes that the company is having.
 Job specification:
Job specification
1. Job Details
Job Title: Project manager
Department: Production department
2. Purpose of Job
 To control production related activities
 To enhance the productivity of British petroleum.
 To fulfil vacant post in case of absentee at the workplace premise.
3. Duties and Responsibilities
 Encourage workers to attain gaols and objectives of an organisation
 Evaluate performance of worker and co-workers.
 Determine and evaluate different operational functions
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Job advertisement
VACANCY
There is a vacancy for PROJECT MANAGER in “British Petroleum” which is a petroleum
company. This company provides petroleum goods across Britain and few parts of Europe. The
job profile is revolved around the new project of this company. “Bharat Petroleum” is now
rendering opportunities to candidates who are interested to join. There requirements are
mentioned below:
 Candidates must possess a management degree.
 Candidates must have experience of minimum 3 years.
 Candidates must have an attractive and strong personality.
 Minimum age of 25 years is required.
 Salary of 10000-15000 is offered.
Candidate who are interested to apply for this job with appropriate qualifications are requested
to upload their resume on company's E-mail id: [e-mail]
Last date of applying: Till 30th Sept, 2018.
CONCLUSION
It has been concluded from the above report that, large number of functions are provided
by HR department of organisation. The main objective of this department in British petroleum is
about workforce planning. It helps in appointment of skilful candidates in organisation which
helps in accomplishment of targets. There many other functions are provided by HR like
Appraisal of performance, determination of salary etc. Through creation of positive employee
relation large number of benefits are gathered like improved decision making, positive working
environment, employee's engagement etc.
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REFERENCES
Books and Journals
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