Shell Company: HR Department's Role in Change Management Analysis

This report delves into the organizational changes within the Shell Company, highlighting the critical role of the Human Resources (HR) department in facilitating these transformations. It examines change management systems, including the models of change (Unfreeze, Transition, Refreeze) and Kotter's 8-Step Change Model, which are essential for navigating organizational shifts. The report explores the functions of HR professionals as change agents, encompassing roles such as change champions, adapters, consultants, and synergists. It also discusses the significance of organizational changes driven by factors like new technology, mergers, internal and external pressures, government regulations, customer needs, and relationship skills. Through analysis and discussion, the report identifies best practices and offers a comprehensive understanding of how HR contributes to Shell's success in a competitive market.

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the Student
Name of the University
Author Note

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Executive Summary
This report deals with the organizational changes of the Shell Company. The HR department
plays an important role in facilitating the necessary changes within the organization. The report
is based on the change management systems that are present in an organization along with the
models of change that the organization needs to consider. The changes in the organizational
system are also accompanied with the roles that the HR professionals play. They are looking
after the organizational structure apart from the training and the developmental activities of the
employees. This will help the company in understanding the changes that it would be requiring
to increase its profits in the competitive market.

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Table of Contents
1. Introduction..................................................................................................................................4
2. Overview of the Organization.....................................................................................................4
3. Literature Review........................................................................................................................5
3.1 Organizational change management......................................................................................5
3.2 Change models.......................................................................................................................6
3.2.1 Unfreeze..........................................................................................................................6
3.2.2 Transition........................................................................................................................7
3.2.3 Refreeze..........................................................................................................................8
3.3 Kotter’s 8 Step Change Model..............................................................................................8
3.3.1 Creation of a sense of urgency........................................................................................9
3.3.2 Creation of the guiding coalition..................................................................................10
3.3.3 Developing a strategy and vision..................................................................................10
3.3.4 Communication the changed vision..............................................................................10
3.3.5 Broad-based action empowerment...............................................................................11
3.3.6 Short-term wins need to be generated..........................................................................11
3.3.7 The gains need to be consolidated................................................................................11
3.3.8 New approaches in culture............................................................................................12
3.4 Role of HR department as change agents............................................................................12
3.5 Specialists as Change Agents..............................................................................................13

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3.5.1 Change champions........................................................................................................13
3.5.2 Change adapters............................................................................................................14
3.5.3 Change consultants.......................................................................................................14
3.5.4 Change synergists.........................................................................................................14
3.6 Importance of organizational changes.................................................................................15
3.6.1 New technology............................................................................................................15
3.6.2 Acquisitions and mergers.............................................................................................15
3.6.3 Internal and external pressure.......................................................................................16
3.6.4 Laws and regulation of the government.......................................................................16
3.6.5 Needs of the customer..................................................................................................16
3.6.6 Relationship skills.........................................................................................................16
4. Identification of the best practices in Shell................................................................................17
5. Discussion and analysis.............................................................................................................18
6. Conclusion.................................................................................................................................19
7. Reference List............................................................................................................................21
Appendix........................................................................................................................................25

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1. Introduction
The organizations in the current world scenario want to remain competitive and try to
seek advantages in the fast paced world that is changing on a regular manner. The performance
of the employees needs to improve, as it will help in boosting the production and the sales of the
organization. The organizations are trying to adopt the new methods that are present in Human
Resources Development so that it can help in providing support to the organizations. The aim of
the paper will be to identify the processes and the activities that are undertaken by the Human
Resources Department so that it helps the organization in managing the changes in a better way
(Benn, Dunphy and Griffiths 2014).
2. Overview of the Organization
The Royal Dutch Shell Group of Companies or precisely Shell is the second largest
company in the world with respect to petroleum. It is also one of the most recognized
organizations in business, as it operates in more than 200 countries over the world. The company
is in a joint venture that has been undertaken between the Royal Dutch Petroleum Company and
the Shell Transport and Trading Company (Maheshwari and Vohra 2015). Both of these
companies are based in Europe but operate all around the world. The company has developed in
to a complex organization and maintains its operations from the headquarters that are situated in
The Hague and London. The management of the company was done following a matrix structure
that is three-way in process from the mid 1960s. During the 1990s, the company realized that
changes need to be made in the organization so that it would help in competing better with the
rival companies. The competition was intense as the prices of oil at that point decreased heavily,
which led to the other companies joining the industry.

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The main issues that will be highlighted in this assignment will be the local autonomy
and the adaptability on the integration based globally along with the structure and role of the
management, which will help in managing the services of the organization (D’Cruz, Noronha
and Beale 2014).
3. Literature Review
3.1 Organizational change management
The management of organizational changes is the modification and the transformation of
the entire organization so that it will help in increasing the level of productivity in an effective
manner along with the competition that is present in the market. It will also help in increasing the
revenues of the organization. The change management is an approach that will help in
transforming the employees along with the teams in a way that will help the company in the
future. Change management acts as a basic tool that helps the organization in taking control over
the changes that are taking place within the system. This process will help in identifying and
accepting the changes within the current environment of the business so that the company can
operate in an appropriate manner (Schumacher et al. 2016).
The current business environment is uncertain and the organizations need to effectively
handle the changes in the management by adapting the strategies, products and cultures on a
constant manner. The advancements in the technological level have made it mandatory for the
organizations to accept the changes so that it can ensure its survival in the competitive market.
The Human Resources (HR) department plays an important role in changing the strategies that
will help the company in the future, as they have the capability of thinking and learning to
manage things in a different manner (Giauque 2015).

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The practitioners of HR are known as administrators of the company, as they manage the
entire function of the company apart from the delivery cost and leveraging the human capital.
They get attention as within the company because of the changes that they introduce in the
system, which will help the company in operating in a smooth manner (Alvesson and
Sveningsson 2015).
3.2 Change models
The agents of change can be studied through the three steps model of change by Kurt
Lawin and the eight steps model of Kotter. Kurt Lawin was of the view that the employees
always want to work within their comfort zone and the change in the organization has been
divided in to unfreezing, moving and re-freezing (Armstrong and Taylor 2014).
3.2.1 Unfreeze
The resistance to the changes is one of the first stages that involve the preparation of the
changes wherever it is necessary within the organization. This will help in accepting the changes
and the breakdown of the status that is existing within the organization. The employees of the
organization receive constant motivation when the crisis can be understood in a better manner by
the employees so that the vision of the company can be associated with themselves. The process
of unfreezing can be further broken down in to two phases. The first phase is that the indicators
of the conditions may not be ideal. Secondly, the indicators have to be communicated in a proper
manner so that the members of the organization can find a solution to the problem, which will
help in reducing the level of anxiety. The changes in the first level are mostly difficult and
include lot of stress (Fay et al. 2015).

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3.2.2 Transition
This stage includes the people to resolve their uncertainty and find new ways in which
the things can be done by adopting new directions. Most of the changes are dynamic in nature
and the need for a period of transition is necessary, as it will help in making the changes
effective in nature. The process of change will start when the employees or the members are
ready to open up their minds so that they can think on a broader perspective. The second stage in
the transitional phase will help the members to move out from the situation that is for the future
so that it can be an interactive process. This process will be successful if the leaders of the
organization reassure the members or the employees. The process of communication is necessary
for the change to be successful in nature, as it will help the employees by providing them some
time to understand the changes and feel connected within the organization (Tummers et al.
2015).
Figure 1: Kurt Lewin's Change model
(Source: Fay et al. 2015)

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3.2.3 Refreeze
This stage happens when the employees are in the process of accepting the changes and
find better approaches in the work process. The main reason in this stage is the strength, which
will help in acknowledging the changes within the organization. The process of refreeze can be
outlined by the association when the set of responsibilities can be understood by the employees.
This stage also helps the employees or the association in organizing the level of progress so that
they can keep a track of it. This will help in checking that the level of progress can be used in a
constant manner within the organization, which will help in fusing the business on a regular
basis. The employees on the other hand also feel motivated and accept the changes that will help
them in the process of work (Bringselius 2014).
3.3 Kotter’s 8 Step Change Model
Kotter has pointed out that there are eight steps that the organization needs to adopt so
that it can be successful in the process of change management.

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Figure 2: 8-step change model of Kotter
(Source: Chen and Wang 2014)
3.3.1 Creation of a sense of urgency
The reaction of the employees will be immediate if most of them are convinced that a
change is required within the organization. The first stage for the process of change will be to see
the rate of the urgency that the employees will have in needing for a change within the
organization. The agents of change have to be credible so that it can initiate the program of
change, which will help in understanding the process of change. The organization needs to hire
consultants so that the sense of urgency can be felt among the employees. This theory is also

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applicable in evaluating the realities and identifying the major opportunities within the
organization (Wan Hooi and Sing Ngui 2014).
3.3.2 Creation of the guiding coalition
A single person or an employee is not capable of managing or handling the process of
change within the organization. It has to be led by forming a coalition among the employees so
that the process of change can be successful within the organization. Thus, it can be said that the
operators for the change needs to have a gathering, which can help in leading the employees
towards the change in the right way. The right individuals will be those who have the ability and
the authority of handling the changes in a proper manner (Chen and Wang 2014).
3.3.3 Developing a strategy and vision
The employees will be able to understand the changes if they are aware of the vision of
the organization. The employees will then be able to associate the changes with the visions of the
company and understand what is necessary within the work place. The managers need to be able
to understand the process of change so that they can help the employees in accepting the changes
and work accordingly, which will help in increasing the level of productivity within the work
place. The effort of the managers in accepting the changes will help in creating a sense of
urgency among the employees to accept the changes as well (Chmiel, Fraccaroli and Sverke
2017).
3.3.4 Communication the changed vision
The process of communication is necessary for the organization to function in a smooth
manner. The process of change within the organization can be possible if there is an appropriate
network of communication between the employees, which will help in decreasing uncertainty

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and ambiguity. It will also help in recording the negative or positive responses from the members
once the change is implemented. The vision of the company needs to be accepted by the
employees so that the messages can be communicated in a simpler manner (Xerri, Nelson and
Brunetto 2014).
3.3.5 Broad-based action empowerment
The barriers in the process of change need to be eliminated so that the employees can
understand the change and act accordingly within the company. The obstacles and the structural
changes that poses as a threat to the vision needs to be removed so that the process of change can
be managed in a proper manner, which needs to be adopted by the employees as well (Hayes
2014).
3.3.6 Short-term wins need to be generated
To make the changes on a large-scale so that it helps in the long run, it is important for
the organization to create wins on a short-term basis. The achievements that can be viewed easily
needs to be planned in an organized manner so that the short term wins can be recognized in an
easy manner and the employees can be rewarded for their involvement (Cameron and Green
2015).
3.3.7 The gains need to be consolidated
The persistence and the determination needs to be encouraged and nurtured so that it can
help in increasing the credibility of the changes in the structure, policies and systems. The
primary goal of success is the verification of the strategy and vision that is credible enough by
evaluating the results. The results from these changes will help the organization in initiating
changes for the future as well (Goetsch and Davis 2014).

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3.3.8 New approaches in culture
The agents of change will help in supporting the structures for the change to be
sustainable in nature. The changes in the structure need to be inclusive of the mentoring and
training of the employees so that they can adapt to the changes in an easier way. the initiatives
for the changes needs to be recognized and communicated through newsletters, websites,
seminars or other methods of formal communication, which will help in articulating the success
of the organization by ensuring the development of the leaders (Van der Voet 2014).
3.4 Role of HR department as change agents
The agents of change are those persons who will help in initiating the changes and
manage it within the organization. These people have to be specialists in practicing the changes
within the organization so that it can help the employees in understanding the changes for the
success of the organization. The Hr department needs to support the changes such as the
adoption of the new technologies, which can enhance the training of the employees within the
organization. The department has to be responsible for coordinating and organizing the changes
so that it will help in managing the operations of the organization in an efficient manner. The
human resources department may fail in identifying the changes if it is not defined strongly,
which will help in driving the changes within different levels within the organization
(Hechanova and Cementina-Olpoc 2013).
The recruitment of new employees by the HR department needs to be done in a smooth
manner, as they are able to identify the tasks that may get affected with the process of change.
The needs and expectations of the customers also need to be analyzed and evaluated so that the
organization can provide maximum satisfaction to them by developing the products and services
(Gollenia 2016).

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The role of HR department has helped in changing the environment of the organization. It
can be seen that in the past their role was identification and evaluating the programs that helped
in training the employees so that they can increase their level of production within the
organization. Thus, the intervention of the training methods was the primary role that was carried
out by the human resources department. In the present scenario, the role of the professionals in
these departments have changed and act as advisors to the makers of the decisions on the issues
that are concerned with the organization both internal and external respectively. The
professionals of this department act as designers of the system and helps in developing and
designing the strategies, which will help in increasing the performance of the employees. The
role of acting as change agents helps in implementing the changes for the organization to
increase its performance. These professionals have taken up the responsibility of changing the
cultures that are present within the organization (Prochaska 2013).
3.5 Specialists as Change Agents
The changes that are transformational in nature create an effect on the policies and
practices that are being used within the organization. The incremental changes are the steady
adjustments that are done on the policies and the practices, which affects the multiple or single
functions of the organization. The vision of the HR consists of a set of values that helps in
affirming the legitimacy of their functions as a strategic partner in business. The knowledge and
skills of this department helps in managing the employees in an effective manner. They can be
further classified as:
3.5.1 Change champions
The alignment of the strategy in business with that of human resources helps in creating a
persuasive and proactive change within the organization. They possess the credibility, which can

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be linked directly to the experiences in business and posses the analytical and political skills so
that it can be capable of managing the risks and inspire the employees by making them aware of
the changes (Kuipers et al. 2014).
3.5.2 Change adapters
The professionals in the human resources department will help in implementing the
changes within the functional areas as well, which will help in transforming the vision of the
organization in to practical actions, which will be involved in the process of implementation as
well (Rosemann and vom Brocke 2015).
3.5.3 Change consultants
The human resources department also acts as consultants for the agents of change, as they
assist the workers in generating the data internally or externally of the organization. The work
that is ongoing on a particular project or a task can be assisted by the department by providing
better technical skills along with administrative and consulting skills. This will help the
employees of the project to complete the entire work within the time limit given to them by the
organization (Cummings and Worley 2014).
3.5.4 Change synergists
The activities that help in mutually supporting the success can be achieved with the
involvement of different energies in resource among the people, which is referred as synergy.
The Human Resources Development acts as changing agents are capable of coordinating and
integrating the strategies that help in changing the face of the projects within the organization. It
needs to be based on the competencies of the leader along with the management of the project

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through coordination and integration, which acts as catalysts in the process of change (Laudon
and Laudon 2016).
3.6 Importance of organizational changes
It is important for the organization to adapt to changes because it helps them to get a
competitive advantage over the other rival firms, which fails to accomplish the needs of the
customers. It can also take place due to the situation of crisis that may exist in a given market
place. The change in the executive power of the organization can also result in changes in the
structure of the organization. The changes in the organization may depend on the following
factors:
3.6.1 New technology
Since technology is getting advanced on a daily basis, it is necessary for the organizations
to identify the right technologies that may help them in speeding up the operations within their
work place. The need for the advances in technologies has helped the organizations in adopting
different methods of changes. The organizations need to adopt various technologies that will help
them to be cost effective and gain a competitive advantage in the market. The changes in the
technology will help the firm in increasing their productivity and services to the customers
(Hammer 2015).
3.6.2 Acquisitions and mergers
The acquisitions and merging up of two or more companies may create a negative impact
on the employees. The employees are made to perform dual functions in the organization, which
may help in cutting down the expenses and allocating the new products or the services in the line
of production.

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3.6.3 Internal and external pressure
The pressure that is internal in nature comes from the employees and the management
that asks for a change within the organization. The external pressure is the result of various
factors such as the changing regulations from the government, financial markets, shareholders
and various factors that may exert pressure on the external environment of the organization.
Another factor that may result in the change within the organization is the factor of globalization
(Galliers and Leidner 2014).
3.6.4 Laws and regulation of the government
The change in the rules and regulations of the government may result in the changes
within the organization. An example of this would be the equal opportunity of employment that
was passed by the government of various countries led to the changes in many organizations.
3.6.5 Needs of the customer
The needs and preference of the customers keep on changing, as they may get saturated
with the purchase of the same product or services that are being offered by the organization.
With the everyday evolution of the world, the needs of the customers keep changing on a
constant manner, which may lead the organizations in changing their products and services. This
opportunity of changing the products requires the organization to undergo a process of change
within them so that the demands of the customers can be met in the right manner (Bridges and
Bridges 2017).
3.6.6 Relationship skills
The business needs to have the ability of adding values to its products and services that
helps them in gaining a competitive advantage over other firms. For making this change

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successful in nature, the agents of change need to focus on the conditions of business that may
help the organization in using competencies (Wirtz et al. 2016).
4. Identification of the best practices in Shell
The company also has an efficient human resources department that looks after the
overall welfare of the organization. They help in running the company in a smooth manner by
providing proper guidance and training to the employees. When one of the managers was
interviewed about the role that the HR department plays within the organization, he said that the
department was in-charge of the overall activities of the company. He further mentioned that the
department helped in identifying the changes that would be required within the company so that
it can function smoothly in the market. The use of the technological advances within the
company, which are giving them a competitive advantage, was provided to the management by
the employees of human resources department, as they have a thorough idea of the market. This
helped the company in adopting those technologies, which has helped them to carry on their
daily activities with ease (Michie, Atkins and West 2014). The department is also responsible for
providing the best training to the employees so that they can increase their productivity level
within the organization. The experienced employees of the firm are made to undergo training at
an interval of every three months so that they can be more efficient in the company. The new
employees on the other hand are made to undergo training on a monthly basis so that they can
adopt the new skills that will help them in increasing their level of productivity within the
organization (Hammer 2015).
The department also has the responsibility to study the market so that it can understand
the needs and preference of the customers, which helps the company in adjusting to the changes.

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The information that is provided by the HRs to the company helps them in making changes to
their products so that the customers do not substitute it with products of another company.
Another manager of the company was of the opinion that the department helped the company in
merging with the other company, as they noticed that the profit and sales of the company would
increase for the firm, which would lead in to providing better salary and benefits to the
employees (Cummings and Worley 2014).
5. Discussion and analysis
It can be therefore said that the human resources department of the company is efficient
in its outcome and shows best interests for the company. The company had undergone a major
structural reform, which has helped them in carrying out the activities in a proper manner. The
changes in the organization led to the change in its mission and strategy so that the work and the
responsibilities of the employees can be managed in a smooth manner. This helped the company
in earning better revenues, as the employees were made to carry out certain responsibilities in the
job process. The company has changed its strategy in to motivating the employees to work hard,
as they received the best training, which will help them in increasing their productivity level
within the organization (Prochaska 2013). The employees provided valuable feedbacks to the
professionals of human resources department, which helped them in bringing changes within the
organization. This helped the company in adapting the best methods, which helped the company
in being the number one company in the petroleum industry. The oil company was able to
strengthen its organization with the changes that it made in its structure. The business
committees that were the head of the organization were changed and replaced with chief
executives. This helped in increasing the effectiveness of the employees and the control over the
finances improved to a great extent. The company shifted from petroleum products to chemicals

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as well, which helped them in diversifying the product and attract large bases of customers. The
collective responsibility of the employees was replaced with individual responsibility, which
helped in the development of proper strategies and responsibilities over financial matters. The
company broke down its activities from the global business perspective to a narrowly defined
business in the global context, which helped the employees in reporting directly to corporate of
the company (Van der voet 2014).
The human resources department saw that the company became competitive in the
market, which made the other companies to decrease their prices due to the huge demand of the
customers from the company. The efficiencies in cost led to the increased profitability of the
firm, which helped the company in keeping the overhead cost low and increased the use of the
latest technologies. The use of the latest technologies helped the company in accessing the
products in an easy manner, which was sold to the customers at a cheaper price, which helped
the company in maintaining a better advantage with respect to the competition that is present in
the market (Gollenia 2016).
6. Conclusion
Thus, it can be concluded that the company is delivering better returns on the capital that has
been invested by them in the market, which indicates that the company is in a stable position.
The decentralization of the top-heavy structure of the organization was changed, which helped
the company in earning a better ratio with respect to the profit. The products of the company
were being recognized on a global scale, as there were lot of trading activities that was taking
place on an international level. The network of communication between the employees increased
highly due to the implementation of the advances in technology. This led to the free-flow of

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information, which helped in solving the problems, which were raised within the organization.
The organizational structure of the headquarter of the company was changed in to a three-way
matrix that helped in controlling the finances of the company in an efficient manner. There was a
proper distinction between the management and the legal structure of the company. The
management structure helped in controlling the business that was based in the regional and on
the international level. It helped in controlling the operations of the heads of the company. The
legal structure helped in controlling the activities of the parent company along with the services
and the operations that were being carried out by the company. On an overall manner, the
company needs to continue the activities that they rae doing in the present state, as the changes in
the organization has turned out to be positive for the company. It has helped the company in
earning better revenues and keeps the operational costs low, which means that the employees in
the company are being rewarded with better remuneration.

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Appendix
Figure 3: Company logo of Shell Petroleum