Human Resource Management Report: Shell's HRM Strategies and Analysis

This report analyzes Human Resource Management (HRM) practices within the context of Royal Dutch Shell. It begins by defining HRM's purpose and functions in workforce planning and resourcing, followed by an examination of recruitment and selection approaches, including internal and external methods, along with their respective strengths and weaknesses. The report then explores the benefits of HRM practices such as training and development and reward management for both employers and employees, and evaluates their effectiveness in raising organizational profit and productivity. It further investigates the significance of employee relations and employment legislation in HRM decision-making, and concludes with examples of HRM practices in a work-related context.

Human
Resource
Management
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Table of Contents
INTRODUCTION...........................................................................................................................1
Task 1...............................................................................................................................................1
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organization...........................................................................................................1
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection.
.....................................................................................................................................................3
Task 2...............................................................................................................................................5
P3 Explain the benefits of different HRM practices within an organisation for both the
employer and employee...............................................................................................................5
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational
profit and productivity.................................................................................................................6
Task 3...............................................................................................................................................7
P5 Analyse the importance of employee relations in respect to influencing HRM decision
making.........................................................................................................................................7
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making...........................................................................................................................8
Task 4...............................................................................................................................................9
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples......................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCE................................................................................................................................12
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INTRODUCTION
Human resource management is defined as important department of any organization
which is formulated for the purpose managing all activities and functions. This can be defined as
strategic approach which mainly uses to managing and arranging the people in relation to
workplace that can help to increase organizational productivity and profitability (Roberts, 2015).
This reports is based on Royal Dutch Shell company that is British Dutch multinational oil and
gas company operating their business in changing environment which can help to increase sales
and performance. The headquarter of organization are in Hague, Netherlands and incorpoarted in
UK. This is the largest organization which is operating their business by managing their
activities and functions in business environment. The intent and function of human resource
management in the organization consists of a further report. Thereafter, conversation of the
strength and weakness of recruitment and selection approaches. The advantages and
effectiveness of various HRM practices were then explained. This report discussed the
significance of employee relationships and elements of legislation in decision-making, as well as
applications of HRM practice in the work culture.
Task 1
P1 Explain the purpose and the functions of HRM, applicable to workforce planning and
resourcing an organization.
Management of human resources is concerned with overseeing, tracking, regulating,
directing and ensuring a balance between workers and the flow of company activities with an
organization (Milfelner, Potočnik and Žižek, 2015). The Department of Human Resources deals
with problems such as benefits, performance management, business productivity and many other
ways of providing an organization's employees with a safe working atmosphere. Nowadays,
HRM's focus is moved towards employee development efficiency and full benefit in the
competitive market. In context to Royal Dutch Shell that is oil and gas company that is large size
organization running their business by operating their all functions effectively.
The Purpose of HRM are as defined:
To run the business and increase profitability: The main purpose of HRM department is
to operate their business by understanding demand and making efforts to complete it. The
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management of Royal Dutch Shell is running their business by managing their activities and
functions effectively (Glendon and Clarke, 2015).
Arranging and management of employees: the main purpose of HRM is arranging and
managing the people at workplace hat can help to increase the organizational performance. In
relation to Royal Dutch Shell management is responsible for arranging all staff and managing
them at right place.
To solve employees problems: The focus on employee’s problems and get them solved
which can be solved and increase the performance. In context to Royal Dutch Shell, HR
management is performing specify their employee’s problem and get solved them effectively.
Functions of HRM
Managerial Functions:
Planning- This is the primary stage of managerial efficiency, where Royal Dutch Shell
HR managers have to objectively assess and define current and potential employee needs in the
work culture to meet an organization's objectives. After the HR department, recruiting processes
within a company may be efficiently carried out.
Organising- In this process, the leader of Royal Dutch Shell efficiently distributes each
assignment to eligible employees and collaborates accordingly with each operation to achieve an
organization's common goal (Shuck and et. al., 2016).
Directing - It has been established that adequate direction is required for the performance
of work in a workplace environment. Active employee engagement is productive in optimising
employee potential in the banking sector.
Controlling- It has been established that adequate direction is required for the
performance of work in a workplace environment. In context to Royal Dutch Shell Active
employee engagement is productive in optimising employee potential in the banking sector.
Operative functions:
Recruitment/Hiring- The recruitment and selection procedures are a very important
feature of growth or business failure, totally dependent on job performance in the internal and
external environment. If Royal Dutch Shell is addressed, managers concentrate on efficiently
recruiting behaviour and recruiting processes for hiring the right candidate in a particular work
profile at the right time (Geissen and et. al., 2015).
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Salary Administrative- This functions of human resource department is to divide salary
within specific structure so that minimum wages is been given to each workforce in Royal Dutch
Shell. The financial pays of include compensations, incentives, bonus and benefits.
P2 Explain the strengths and weaknesses of different approaches to recruitment and selection.
Recruitment is the process of getting number of people in organization who have
apperaed for the purpose of taking job opportunities. In other words, recruitment is the
continuous proces of identifying vacancy and hiring the candidates to fill the vacant position
which can help to operate the business and attain the higher productivity. Different methods of
Recruitment are uses by management of Royal Dutch Shell company that are as explained:
Methods of Recruitment
Internal recruitment – This is effective method, wherein management of business
organization identify vacancy and recruit the employees within the workplace which can help to
operate and continue the all activities. Different approach of internal recruitment are:
Promotion: This means to fill the higher position in case of it is vacant wherein,
management is responsible to analyse performance of internal employees and place them at right
place which can help to manage the all activities (Donate and de Pablo, 2015).
Transfer: This is the process of shifting of an employee from one job to another that can
help to manage all functions. In this, management assured that their staff is being to be
transferred to new job.
Strengths Weaknesses
 Internal recruitment can help Royal
Dutch Shell to understand the working
environment and fill the vacancy by
recruiting employees internally.
 This helps to increase the
organizational performance and
profitability by analysing skills of
employees and placing them right
place.
 This can be create the feeling of
conflicts between employees who are
working (Cleaver, 2017).
 Internal recruitment also limits the
possibility of innovative ideas and
thoughts that might be affect
organizational performance.
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External recruitment- When employees are recruited out of the organization by
analysing their skills and importance in organization. This involves campus recruitment, online
hiring, and social media.
Strengths Weaknesses
 By using external recruitment Royal
Dutch Shell is introducing from new
skills, and talent which can help to
increase business performance.
 This fill the requirement and supports
to attain competitive advantages.
 This is time taken activity that take too
much time in analysing skills and talent
of employees.
 Cost of organization can be increase in
this activity.
Selection is the another process which uses by organization to select the right person at
right place for the purpose of filling the vacancy and increase the organizational performance and
productivcity (Binder, 2016). This is the process of determining the skills, competencies, and
qualification of employeess so that organizational productivity and profitability can be maintain
effectively. In context to Royal Dutch Shell, HR management uses different method of selection
that are as explained:
Interview- This refers as effective method in which face to face interaction between HR
management and employees is required to be done. The management of Royal Dutch Shell uses
this method by using face to face communication.
Strengths Weaknesses
This is useful for selecting the right employees
at right workplace by using face to face
communication.
By using this, employees get to know
environment and responsibilities of
themselves.
Due to poor network, various time telephonic
interview and video conferencing affect
unfavourably to the interviewer and might not
hire the right applicant (Gahlawat and Kundu,
2019).
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Testing- This activity is uses by HR management by monitoring and analysing the
competencies of applicants that can help to run a business. Different test are psychometric test,
ability, and aptitude test.
Strengths Weaknesses
These test are same for every individual so
easy to find out effective candidate. It is cost
saving and highly job oriented.
Sometime it is not able to provide appropriate
results and outcomes cause of
photosynthetically of the applicants.
Task 2
P3 Explain the benefits of different HRM practices within an organisation for both the employer
and employee.
For every organization it is important to understand the needs and wants of their
customers and formulate the planning which can help to regulate the business and attain higher
profitability. In context to Royal Dutch Shell different HRM practices are uses by HR
management that are as explained:
Training and development: This is important HRM practices which should be use by
management for the purpose of getting ready their staff in regards of taking any challenges and
changes which can help to increase organizational performance. In context to Royal Dutch Shell,
this practice is uses by HR department when ever change and process in oil and gas activities has
introduced which can help to develop a business (Gemar and et.al., 2019).
Benefits to employer and employee
Employer Employee
 This practices assured employers that
their employees can work effectively
and increase the organizational
performance.
 This can help to solve employer
problems and manage the
organizational working effectively.
 By using training and development
employees become more skilled and
talented which completes all typical
situation.
 This develop the professional and
personal abilities of staff who are
working.
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Reward Management – This is another practice which uses by organization for the
purpose of motivating the employees and getting the work done in certain period of time. This is
important for business industry to analyse the performance of employees as they are performing
various functions then rewarded them by using different activities which can help to develop a
business and attain the profitability. In context to Royal Dutch Shell, reward management
practice uses by management by analysing their skills and talent that supports to run a business
and attain higher profitability (Branicki, Steyer and Sullivan-Taylor, 2019).
Benefits to employer and employee
Employer Employee
 This helps employer of Royal Dutch
Shell to achieve complex targets as
employees get ready to accept changes.
 Managing all functions and increasing
responsibilities in business
environment.
 It is beneficial for employees as it
increases morale, job satisfaction, and
retention activities by maintaining good
behaviour.
 Employees can retain in organization
for long period.
P4 Evaluate the effectiveness of different HRM practices in terms of raising organisational profit
and productivity.
Training and Development: It is necessary that at each stage training should be given to
employee, so that can adapt new skills required for performing task, assigned by team leader in
an organisation. According to Royal Dutch Shell, subordinates have given major emphasis on
providing effective training to their workforce, that could be helpful in development if workforce
both at personal and professional level in working culture of firm (Madani and Wajeetongratana,
2019). Some times, overall development of employee is beneficial for producing quality work. It
is also helpful in building strong relationship with target customer.
Rewards management: On basis of critical performance analysis, leaders should motivate
each employee that they can effectively work within an organisation. The rewards should be give
to employee's who have effectively utilised their capabilities and skill to perform each task in
systematic manner. In context with Royal Dutch Shell, managers can implement award
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ceremonies every month, in order to boost motivation level of employee. Henceforth, retaining
quality workforce for longer terms in culture of firms.
Recruitment and Retention: The recruitment and selection is important function in hiring
right applicant, for specific job profile, at right time within an organisation. There are two
source through which recruiting take place such as internal and external recruitment. Then comes
selection phase, where scrutiny of skilled applicant takes place while conducting recruitment
programs. If it is talked about retention, it is necessary that management should retain quality
workforce in organisation (Santana and Lopez‐Cabrales, 2019). In context with Royal Dutch
Shell, leader should provide several monetary and non-monetary benefits apart from basic salary,
so that employee could work in effective manners. It has been analysed that financial stability is
top most priority of individual given their time and efforts in completing specific job.
Task 3
P5 Analyse the importance of employee relations in respect to influencing HRM decision
making.
Employee relationships are recognised as essential elements in the global marketplace for
increasing business. There are different relationships in a corporation, such as employee-
employee, employer-employee and employer-employer (Braga and et.al., 2019). The execution
of powers and delegations between workers relies entirely on the legal framework of an entity.
Upper executives, when it comes to Royal Dutch Shell, has followed an important approach in
their decision-making process by stressing the provision of a safe working atmosphere and
ensuring company competitiveness in the industry. Below, some of the important factors are
mentioned:
Conflict management plays an important role in establishing constructive and cooperative
relationships between employees employed in an organisation with respect to employee
relationships. Although taking Royal Dutch Shell into account, team leaders have designed
different interactive programmes for their workers so that they can regularly engage in these
sessions. There's many chances that when dealing with many other members of a team,
employees' personal issues may be solved by themselves. It is also important for managers to
persuade every person to make any decisions that are good for both workers and organisations.
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The leader can then reduce the dispute to some degree, so that business operations are carried out
efficiently (Morley and Heraty, 2019).
The positive growth of employee relations, helps in increasing productivity of workforce, as
they are comfortable in performing activities in working environment of company. In context to
Royal Dutch Shell, it has been identified that HR manager are engaging each employees in
contributing in taking right decision, with the help of which supervisor could plan strategies to
analyse performance of employee (Barrena‐Martinez, López‐Fernández and Romero‐Fernández,
2019). The performance appraisal are considered to be effective approach, to know that in which
field employees perform better in completing assigned task. Henceforth, employee relations
helps in maximising productivity of organisations at regular interval. There are strong inter-
relations between employee relationship and successful growth of business in competitive
market.
P6 Identify the key elements of employment legislation and the impact it has upon HRM
decision making.
Each management decision is solely focused on legal frameworks and law adjustments for
increasing companies in competitive markets. To increase the economic conditions of the UK,
the government has strictly enforced jobs laws on each market.
Data Protection Act 1998: This act was planned by the government of the United Kingdom
to secure official and personal information stored in corporations on desktop computers or
laptops (Chapman, Sisk, Schatten and Miles, 2018). Management must build high-security
software in connection with Royal Dutch Shell so that online hackers do not leak personal
information from consumers and prospective buyers. In addition to having high-security
managers, the focus should be on the regular backup of data.
Equality Act 2010: The primary purpose of this act is to protect people against harassment
and discrimination between employee in workplace in any organisation. There are several
characteristics such as age, disability, gender reassignment and many more introduced in equality
act by UK government (Fenech, Baguant and Ivanov, 2019). If it is talked about Royal Dutch
Shell, top managers have to keep in mind age, gender, culture, religion and other characteristic
while making decision for engaging each employee in work culture. For instance, the leaders
should treat each employee equally at same standards in an organisation. Thereafter, authority
and responsibilities should be delegated to staff members on basis of their unique skills.
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Task 4
P7 Illustrate the application of HRM practices in a work-related context, using specific
examples.
Job Specification for a HR Business Manager
Job Specification
Job details
Post: HR Business manager
Company name : Royal Dutch Shell
Job Purpose: The organization is looking an HR Business Manager who have good
communication and management skills to arrange employees at right place. The person should
be able to manage all activities and function by deciding goals and bring the changes in
performance.
Qualification:
 Master degree in Human resource management from recognised university.
 Completing under graduation from recognised university in commerce field.
Experience:
 2 years experiences as a business manager in a reputed firm.
 2 years experience as HR business advisor.
Skills, knowledge and characteristics:
 Strong knowledge about MS word, Excel, PowerPoint, MS Outlook and ADP applicant
screening system.
 Good analytical skill and have knowledge about verbal, non verbal and written
communicational skills.
 Lead on going HR audit readiness efforts.
 Ability to maintain effective relation with different business organisations.
Job requirement:
 Development of an overall HR business plan with measurable objectives and a budget.
 To have information about effective business strategies, plans and policies.
 Oversees workers safety, welfare, wellness and health.
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Advert for the specified role (HR Business Manager)
Organization name: Royal Dutch Shell
Position: HR Business Manager
Our organization is search a energetic and skilled person who is able to work in rotate shift as a
position of HR manager. The person is required to skilled and knowledgeable for managing
employees in workplace and supports to develop a business. We are finding a person who can
maintain good relation with employees by understand and solving their problem which are
pertaining in organization. If any people are interested to work at this profile then share their
resume with us.
Mail id: www.dutchshellcareer.com
Interview Questions
 How do you stay upbeat with changes in labour legislation?
 How do you handle conflicts in the business of the company?
 How do you solve the problem which are facing by employees by reducing cost of
company?
 What are the HR business manager roles and responsibilities systems? How do you define your leadership style?
Offer Letter
Organization name: Royal Dutch Shell
Date: 25th October 2020.
Dear Suzan Marc
Congratulation dear candidate as you have got this wonderful opportunity to join with our
organization at a responsible position as HR manager. This opportunity have given you after
analysing you skills and talent as you are enough capable to handle all situation and also have
work experience to manage this position. Your joining date is 1st November, 2020 and your
annual package will be 700000p.a. Kindly request to you that give your confirmation of
accepting this offer and day of joining if comfortable.
Thanks and Regard
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