Strategic Change Management and Leadership at Royal Dutch Shell

This report provides an in-depth analysis of change management and strategic leadership within Royal Dutch Shell. It begins by defining key concepts and then explores the impact of classical and contemporary management and leadership styles on change initiatives. The report examines various leadership styles, including autocratic, democratic, laissez-faire, charismatic, and bureaucratic, as well as contemporary theories such as transformational, transactional, trait, and contingency theories, and how they apply to Shell's operations. The report also addresses internal and external triggers for change, stakeholder analysis, and the impact of current management and leadership styles on planned change management functions. Finally, it discusses the contribution of HRM practices to the success of Shell's performance management process. The report aims to provide a comprehensive understanding of the challenges and opportunities related to change management within a multinational oil and gas company like Royal Dutch Shell.

Change management
and strategic leadership

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
Task 1 ..............................................................................................................................................4
Task 2...............................................................................................................................................4
1. ..................................................................................................................................................4
2....................................................................................................................................................8
3..................................................................................................................................................13
4..................................................................................................................................................15
5..................................................................................................................................................18
Conclusion ....................................................................................................................................20
REFERENCES..............................................................................................................................21
2

INTRODUCTION
Strategic change management is a process of managing change in a structured and
profound manner to accomplish the business aim and objectives. Change management is a broad
aspect that refers to managing the impact of new technology, business processes, modification in
business structure, culture, etc. (Goleman, Boyatzis and McKee, 2013). It is the method of
providing guidance and inspiration required to develop and employ vision, mission and strategies
of company to attain business objectives (Avolio and Yammarino, 2013). It is an effective
method that renders direction to the entity which also assists in driving success for corporation.
Change management will help in development of business by identifying and implementing of
strategies which are required within organization. With the help of strong strategic leadership,
managers can stimulate the employees to accept changes enthusiastically. In addition to this
aspect, it uses leadership as a tool to have constant change by making modification in processes
and quality of human resources (Aaker and Joachimsthaler, 2012). Strategic leadership plays a
viable role in identifying the upcoming opportunities, ascertain business threats and build a
vision for future that is followed by each member of the organization (Safi and et.al., 2016).
In the present report, various aspects of strategic change management and leadership will
be studied in context of Royal Dutch Shell. Per the latest report of 2016, it is listed as the seventh
largest corporation in globe in terms of profits. Royal Dutch Shell is also ranked in 2013 among
the Fortune Global 500 list of the world’s largest entities (Strom, Sears and Kelly, 2014). The
organization owns human inventory of more than 90,000 employees. The entity has operations in
over 90 nations. Company further produces 3.1 million barrels of oil equal per day and possess
44000 service stations around the globe.In this report, learning will be shown about the impact of
classical and contemporary management and leadership styles on change management and
strategies. Further, evaluation of internal and external triggers of change that can affect the
operations of company will be provided. Also, stakeholder’s analysis to ascertain the risk of plan
will be provided. Thereafter, analysis of the impact of present management and leadership styles
on planned change management function will be provided. Description about the contribution of
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HRM practice on the success on Royal Dutch Shell performance management process will be
provided.
TASK 1
Covered in PPT
TASK 2
1.
Impact of classical and contemporary management and leadership styles on change
management
Change is refers to that situation where some differentiated policies and procedure are
introduce within organization. However, Royal Dutch Shell consider of some significant changes
that are climate, natural gas, carbon capture and storage and energy transitions because their
impact in huge on economy. The present section will focus on the impact of classical and
contemporary management and leadership styles on change management within Royal Dutch
Shell. It is a multinational oil and gas company that was found in 1907 and incorporated in
Netherlands. The vision statement of company reflects its earnest desire to make difference in
the society through its human resources, team of dedicated professionals, who value the
customers of company and support in sustainable development.
The term leadership can be simply defined as a method through which top executives
provide direction and develop an inspiring vision to facilitate human resources to attain the
organizational aim and objectives. Leadership is also defined as a method of influencing
individuals to cooperate in the attainment of common goal of company. Overall, leadership is
nothing but an act of articulating vision, embodying core values and developing the surroundings
within which organizational goals can be attained (Preston, 2012). Over the period, leadership
and management styles have changed significantly. The classical management approach is also
known as scientific management theory which focuses on improving the productivity of
employees. As per this theory, leaders should develop a standardized process for performing
each job by proper consideration on scientific management. Also, the leader can use wage
incentives as a tool to increase the productivity of employees (Hannah and et.al., 2014). Classical
management theory emphasizes on the selection of workers for a job as per its skills, knowledge
4

and abilities. On the other hand, contemporary management theory focuses on improving the
overall performance of employees. It further ensures proper direction, coaching, guidance and
support by leader to employees to enhance the quality and quantity of work performed by it. In
addition to this, at present the leaders concentrate more on delegating the responsibility of
decision making to employees to boost their morale. Leadership style plays an important role in
assuring attainment of overall goals of Royal Dutch Shell (Tymon and Mackay, 2013). To
sustain in increasing complex and dynamic environment, it is crucial for company to adapt itself
with environmental changes. To facilitate such changes, top executives are required to make use
of strategic leadership.
Management theory during the period of change:
The classical management approach is based on the notion that employees have only
physical and economic needs and that the social needs and requirement of job satisfaction does
not exist or are not vital. Therefore, to facilitate the change process, management can provide
various monetary benefits to the individual. This will encourage employees to accept change
easily and meet the individual goals aligned with the objectives of firm. On the contrast, the
contemporary management theory assures proper motivation by manager to employees so that
they give their best performance. Further, it involves proper communication between
management and employees. On the other hand, strategic leadership can be defined as individual
efficiency to predict, envision, maintain flexibility, think strategically and work with others to
initiate changes that will develop a viable future for company. With this aspect, manager assure
proper involvement of employees during the change process. This helps in reducing resistance to
large extent. In addition to this aspect, contemporary management includes intensive training and
development session which also help in preparing employees for the new change. Efforts made
by a company to align its mission, objectives and strategies with outside environment is the core
aspect of strategic management which is the orbit of strategic leadership. The effective direction
under contemporary management approach enable manager to assure that employees take change
as a challenge and help in bringing new revolution in the company. In addition to this aspect,
effective goals and objectives can be set and modes for attaining them can be determined.
Different contemporary and classical leadership styles that can be used by management of entity
are described as follows:
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Different Leadership styles:
 Autocratic style: It is classical leadership style where leader dictates business policies
and procedure and determine what objectives must be attained. In this leadership style,
leader exercises its direction and control over various resources. Further, autocratic
leadership is recognized by the situation when all the major strategic decision of business
is taken by leader itself without the involvement of others. Therefore, subordinates are
required to follow the decisions without any questions (Eberly and et.al., 2013). This
leadership style is appropriate in situation when there is little time for discussion and
quick decision making is needed. The leader use both rewards and punishment to get the
work done. However, this leadership style has disadvantages as it may result into
dissatisfaction among employees as they are not part of decision making process. The
employee may resist on accept the change as it is directly imposed on them without
obtaining their suggestions.
 Democratic leadership style: It is important leadership style where all the major
decisions are taken by leader after ensuring effective participation of members. In this
style, leader delegates the authority to take decision which results into generation of
creative ideas from the side of employees (Hayes, 2014). The leader also provides
valuable feedback to employee which help in providing them guidance and coaching.
Since, employees are part of decision making process they have high productivity due to
improved job satisfaction. Also, they accept change as a challenge are easily consented
for new changes as they are part of decision making process. Moreover, Royal Dutch
Shell is following democratic style because here, everyone is getting opportunities during
time of decision making process. In addition to this, in organization every employees are
participated with their ideas and some innovation by exchanging freely and in described
way so that they may reach out goals easily and effortlessly. Therefore, through this, they
get motivated and rise in performance level took place. However, in this change can take
place easily because organization has incur lot of idea for that problem and everyone
opinion is measured by organization.
 Laissez faire leadership: In this style, entire authority to make decision is delegated by
the leader to employees. This style is appropriate when the group members are highly
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skilled, motivated and efficient for performing on their own (Avolio and Yammarino,
2013). Therefore, team members have high sense of responsibility which also results in
empowerment of employees. However, in this, style is ineffective as employees must
perform without direction and supervision.
 Charismatic leadership: It is the process of stimulating behavior in others through
personality, persuasion and communication. In this style, leader inspires their followers to
perform things in a better manner (Rosenbaum, More and Steane, 2016). In this style,
leader states vision that renders the sense of community by connecting present with a
better future.
 Bureaucratic leadership: It is the leadership style which is based on assuring that
employees follow rules and perform accurately and consistently. The leader in this style
imposes strict and systematic discipline on the followers. Therefore, leader can maintain
proper control over employees (Kuntz and Gomes, 2012).
There are various contemporary theories and styles that can be considered by the
management of company:
 Transformational leadership: In this style where leader works with subordinates to
ascertain required changes in company, they develop a vision to guide that change by
using inspiration (Rossberger and Krause, 2015). They are the leaders that influence
feelings in their employees which stimulate them to perform beyond their potential. It is
the proactive leadership style that facilitates in changing the corporate culture by
employing new ideas within Shell. However, Royal Dutch Shell may cause many
changes whether they are related to individual and system of firm. In addition to this
thought it creates valuable and optimistic change which will help in meeting out end
goals which are developed by leaders of organization.
 Transactional leadership: This is an effective leadership style that enables the leader to
guide and motivate employees by providing them direction to ensure that they attain
overall goals of company in exchange of various rewards and benefits or avoid
punishment. Main concern of this leadership style is to improve the productivity of team
members (Crossman and et.al., 2013). In Royal Dutch Shell, transactional leadership is
also known as managerial leadership because they focuses through supervision on
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performance of individual and organization. Moreover, through this, Royal Dutch Shell
leaders may promote cooperation by providing rewards and punishment within
organization.
 Trait theory: It is important theory that states that efficiency of leader depends upon the
attributes of leader. As per this theory, the success of leadership depends upon the
personal characteristics such as, self-confidence, charisma, honesty and integrity,
decision making skills, creativity and intelligence etc. Furthermore, Royal Dutch Shell is
benefited by trait theory because it help in identifying in traits which leads to differentiate
personality from leaders to non leaders. In organization every employee thinks that
leaders are born not made because they consist of some specific quality in their
personality.
 Contingency theory: As per this theory, the efficiency of leader depends upon the
decisions taken by leader in contrasting situations. The success of leadership relies on
various factors such as nature of task, personality and skills of leader. In Royal Dutch
Shell contingency theory consist of general state that effectiveness of leadership are
depend upon situation by containing numerous factor in it. Some of factors are related to
nature of task which leader has been provided and leader's personality because it is
affected by group in which leaders are residing.
 Emotional Intelligence: It is important theory that enable leader to understand the
emotions of its employees and use same in improving the performance of company.
With the help of this leadership style, leader can gain the trust, commitment of the team
members. It further assists in attaining the mutually beneficial objectives (Kerzner,
2013). To facilitate emotional intelligence, leader must have self and social awareness,
self and relationship management etc. Therefore, with the help of effective leadership
style, the management of Royal Dutch Shell can avoid the problem of change resistance
among employees. The leadership style will help the leader in influencing the members
towards new business practices. As per the changes needed in business, management can
decide the leadership that must be used by it.
2.
Evaluating the external and internal triggers of change
8

To sustain in present dynamic environment, it is important for company to assure
constant change. With this aspect, management can stay ahead of its rivals. The changes within
Royal Dutch Shell Company are driven by various internal and external factors. These triggers
further stimulate the entity to update its systems and processes (Sriram and et.al., 2013). They
are further described as follows:
External Triggers
PESTEL of Royal Dutch Shell is as described under:
Political factor: This factor main role is played by government because they form policies
and procedure related to industry and employees sake.
Government legislation: There are various policies and frameworks generated by
government that compel company to make modification in business practices. Such as, new
environmental laws regarding exploration of oil and restriction on limit the Shell Company from
performing various activities. The other government policies such as taxation can also impact
working style of company. Such as increase in taxation will compel company to change from
present costly methods to cheaper one.
Economic factor: This factor consist of Change in economy because modification in
economy constituents have direct impact on the performance of company. In this respect, change
in GDP, disposable income, bank rate, inflation rate, interest rate etc. At present bank rate in UK
is 0.5% which facilitate Shell Company to obtain loans at low rate (Lam, Huang and Chan,
2015). However, increase in this rate will make borrowings costly leading to loss of business or
stimulate entity to increase the prices of biofuels and petroleum. The organization may be force
to adopt cost effective technology to minimize operational cost.
Social factor: This factor includes of change in trend, custom, values, norms and belief.
Therefore, customer feedback can modifications in customer needs organization need to consider
all feedback from customer by considering preference may stimulate company to make necessary
changes in its products and services. In Royal Dutch Shell, enterprise need to evaluate all
feedback from their consumers because they are receiver of organization product such as, with
growing environment concern, Shell company is forced to take actions to reduce the negative
impact of oil extraction on environment.
9

Technology factor: Change in technological factor will impact on business success
because this also impact on socio cultural attitude. In addition to this Royal Dutch Shell, need to
advancement in technology by involving of internet, nanotechnology, mobile phones and rising
in computer technology because through this, they can produce more and cost of their product
will incur less. Moreover, change in techniques and processes have direct impact on the
operations of company. To stay ahead of its rivals, it is important for organization to adopt new
techniques and processes. Royal Dutch Shell is required to use effective technology to produce
environment friendly fuel, reduce hydrocarbon, oil spills etc.
Environmental factor: In Royal Dutch Shell, New competitor are increasing that are
EXXON MOBIL CORPORATION, TOTAL SA and BP P.L.C. they need to identify proper
wastage because through this, they provide tough competition to other organization by using of
new technology and new policies.
Legal factor: This factor consist of various policies such as industrial act, employment
act, equal opportunities act, health and safety act and discrimination act in Royal Dutch Shell,
organization because through this, no biasness among individual will occur.
For contributing achievement of the strategic goal of company it is important to have
management and leadership skill. In leadership skill it must have capability to accept the change
and faces challenges without give up. Further, leader need to motivate its employee in order to
achieve goal and objective. On the other management skill is needed so that all work can be
manage on time in systematic manner in order to strategic goal of the organization on time.
SWOT for Internal Triggers as described under:
Strengths
 Leading globally by containing oil and
gas.
 Recognized global by including image.
 Consist of strong capital in competitive
market.
 Royal Dutch Shell, has strong
exploration and technological
capability.
Weaknesses
 Difficult to control on quality and
standards globally.
 Effect negatively on management
efficiency and effectiveness.
 Exposure are different of different
countries.
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Opportunities
 Increasing awareness in environment.
 Reducing carbon emission by
considering oil related products.
 Rising demand in liquefied natural gas
because it is source of clean energy.
 Royal Dutch Shell, can expand to
emerging economy such as China,
India.
Threats
 EU and UK economies debt crises.
 Terrorism activities.
 Increasing strict environmental
regulation.
 Exploration and manufacturing
technology.
 Fluctuation in interest rate.
The factors encourage company to adopt changes. However, there are some elements that resist
the entity to make changes. The culture of company is bureaucratic than more emphasis will be
follow up of laid down rules and regulations and thereby restrict the business to adapt changes.
The rigid business policies may also prevent company from modifying its working practices.
Other than this, the union may dominate the organization and compel the management to
withdraw the changes that are not in favor of workers (Bortoluzzi, Caporale and Palese, 2014).
For example, the setup of self-service filling stations can lead to the reduction of manpower. In
this case, the union and individual can influence Shell Company to avoid such change. Since,
employees apprehend technological unemployment, they may resist from adopting new changes.
To facilitate change, it is significant for the Shell Company to assure maximum involvement of
stakeholder in business decisions. Stakeholders are those groups and individuals that can impact
or be impacted by the business functions. By seeking their participation, resistance can be
avoided to large extent.
There are various skills that can be applied by the manager to the present situation to
foster the change. Such as, decision making skills will enable the manager to understand both
the negative as well as positive aspect of the change and thus take the decision that is best for the
business. In addition to this, participation of employees can be ensured in such decision-making
process. As employee, will be part of the decision-making process there will be less possibility
of their resistance (Sriram and et.al., 2013). Thereafter, communication skills can be exercised to
provide learning to individual regarding how change is beneficial for the individuals and
company. Thereafter, engagement skills of leader will help in bringing proper involvement of
employees in fostering the change process.
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Personal development plan
Skill Activity Time period
Time management skill By making do list of work 2 weeks
Problems solving skill By reading books and theories 3 week
Decision making skill By watching senior how they
make decision
3 to 4week
Own progress after developing plan:
I can manage my work on time by making to do list in which priority is given to important task.
On the other hand now I can make decision without getting confused and make right decision.
Further, I can solve problem in after understanding it of employees easily.
Change management strategy
It is important aspect that details out the specific methods in which a company will
address activities related to modification in functional areas. However, stakeholder can be
affected or affect the different decision of entity. Therefore, it is important for Royal Dutch
Shell, to seek proper involvement of stakeholder with the help of effective strategy.
Functional Area Impacted stakeholder Strategy for involvement
Operational area
 Introduction of
new machine
 Employees
They should operate the machine
 Shareholders
Investment in new machine can
reduce their prospective profit (.
Stakeholder power analysis. 2005).
To assure participation of
employees, group decision can
be used where they will have
communicated how new
techniques can ease their work
etc.
Shareholder can be involved at
Royal Dutch Shell, through
meetings where they can be
provided understanding how
new machine will increase the
profit of business in future and
help in generating higher
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returns for them.
Marketing area
 Change in mode
of marketing from
traditional to
modern
 Customers
The buying decision is influenced
by marketing (Crossman and et.al.,
2013).
With the help of direct mailing
and telecommunication,
feedback regarding product,
marketing preference can be
obtained to obtain their
consent.
Expanding business in
developing nations
 Government The formal meetings at Royal
Dutch Shell, can be used to
obtain the permission of
company expansion into new
market. The rules and
regulations that are applicable
in such case can be understood
with such meetings
(Rossberger and Krause,
2015).
In this respect, varied tools and technologies can be used by management to employ and manage
the required changes. The tool that can be utilized by Shell are as follows:
Tools to manage change Force Field Analysis: It important strategic method that details out what is required for
change in both personal and corporate surroundings. It is important decision making
technique that enable management to take decision by assessing the factors for and
against the changes (Goleman, Boyatzis and McKee, 2013). With the help of force field
analysis, Royal Dutch Shell, can communicate the reason behind the decisions.
Thereafter, force field analysis is important aspect that help the management in deciding
whether they should go ahead with changes and enhance their potential of success. This
13

tool also strengthens the factors supporting change and weaken those against it.
Therefore, it is important for management to identify the factors that resist the change
and those support it.
Forces for change: Forces against change
 Customer require new
product
Adopt new technology within
company
Loss of staff overtime
 Increased production
efficiency
Fear among employees for new
technology
 Decreased training time Impact on environment
 Reduced operational
cost
Increased cost
 To increase the
profitability and
performance measures
Lack of expert staff
14

From the five-force analysis, Royal Dutch Shell, company can know the factors that
restrain the employees to adopt new policies and those due to which organization should adopt
change. Therefore, strategies that will support the company to support changes can be developed.
Such as training and development programs can be organized where employees can provide
knowledge of new technologies. Likewise, to reduce the fear of change among employees, the
management can conduct meetings and explain the benefits of such changes. In addition to this
aspect, rewards can be used by Royal Dutch Shell, to accept changes enthusiastically. The leader
can develop a vision and guide employees towards changes needed in business (Aaker and
Joachimsthaler, 2012)
Adakar Performance measures: Adkar is important model that will help in measuring
the performance of the company after the change process. ADKAR stands for awareness, desire,
knowledge, ability and reinforcement. With the awareness aspect, the management identify the
cognizance among employee regarding change. This aspect also help in identifying the reason
for change. Thereafter, desire aspect will enable in knowing the desire of employees to engage
15

and participate in the change process. By improving the desire of employees, the management of
Shell will be able to motivate employees. Thereafter, knowledge aspect will help in
understanding Royal Dutch Shell, the method to change. With the help of varied training and
development session and coaching, management can provide knowledge about change. The
ability aspect, relates to efficiency of employees to employ the change at the needed performance
level. With the help of continuous practice over time the ability of employees can be improved
(Avolio and Yammarino, 2013). In addition to this aspect, employees can be provided with extra
coaching that will help in improving their efficiency. Therefore, skills and knowledge of
employees play important role supporting the changes. At last the reinforcement aspect assures
that change is stagnant in the company. In this respect, management is required to take corrective
actions so that there is no deviation in actual and planned results. Shell Company can use various
rewards to assure employees retain the new changes.
From the analysis of Adaakar performance measure, it has been identified that change is
fruitful for business. The plan is successful as it helps in seeking the proper participation of
employees. The awareness aspect help stakeholder in knowing how change is important for them
and Royal Dutch Shell. Through desire aspect, company identifies whether their employees want
change. In case they are not willing, manager can motivate them and remove barriers that are
responsible for such resistance. To make the change, company assure employees have
knowledge to make it happen (Adakar change management model. 2016). Thus, training session
not only prepare employees for change but also support in their career development by
improving their skills. Thereafter, to boost the ability of employees to implement the change,
manager provide them coaching. It also helps in identifying loopholes and taking corrective
actions. At last reinforcement phase helped in preventing employees from reverting to old
practices. Therefore, change will be effectively implemented in business. The negative aspect
related to change can be reduced to large extent such as, high absenteeism, employee turnover
and poor employee productivity etc.
3.
Stakeholder Analysis to ascertain the risk of the new changes and strategies to manage such
changes.
16

Stakeholder are those individuals and groups that have direct interest in the operations of
company. They can have affected and be affected by the decisions taken by the organization. To
maintain their interest, it is important for company to adopt various strategies and assure their
satisfaction. The stakeholders can be obstacles that forbid the company to change. Therefore,
strategies can be developed to manage them (Safi and et.al., 2016). The management of Royal
Dutch Shell can identify the key stakeholders and prioritize them. The stakeholder matrix is as
follows:
Keep satisfied
 Customers
 Community
Manage closely
 Employees
 Managers
Monitor
 Government
 Competitors
 Distributors
Keep informed
 Suppliers
Factors responsible for change resistance and strategy that can be used
 Lack of clarity: The poor understanding among employees regarding the need for
change can lead to resistance. Therefore, management should clarify the reasons behind
change and how it can help employees in different manner. In this case, communication
strategy can be used where proper knowledge regarding purpose for change can be
provided (Armstrong and Taylor, 2014).
 Fear for the unknown: The threat of what is going to happen can be valid reason for
resistance. The employees perceive change as a risk that can impact their professional
lives. In this case strategy that can be used is effective employee engagement so that their
fear can be removed and they can have provided proper knowledge of change.
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 Lack of competence: Many a times, change in organization requires modification in
abilities, knowledge etc. The employees may fear that they are not competent to make
change possible.
 Poor communication: The change management can be adversely affected due to poor
communication. Therefore, only strategy that can be used in this respect, is use of modern
and traditional means of communication such as email, letters, telecommunication,
meetings etc.
Hence, HR manager of Royal Dutch can manage such change by undertaking
participative style of leadership. For instance: Employees usually resist accepting change
once they become familiar with specific working aspect or practices. In this, changes can be
managed by business entity by involving personnel in the decision making aspect. The
rationale behind this, individuals do not resist towards the change when they have idea about
the associated pros and cons. In this way, by making selection of suitable leadership style
according to the situation manager of Royal Dutch can manage change more effectively and
efficiently. In addition to this, by employing Kurt lewin and Mc Kinsey 7’s framework
manager can get benefits by managing change.
The stakeholder matrix is important method that help in meeting the expectations of
stakeholder as per their value in company. In this method, the stakeholders are classified as per
the needs of business and their relative significance in the organization. It also helps in
ascertaining the risk that prospective stakeholder can cause if they are not satisfied by the
company. Therefore, significant strategy can be adopted by company to manage the
stakeholders. Such as customers are important stakeholders that purchase the products of
company and help in generating revenues. Therefore, they must be kept satisfied by entity by
identifying their needs and preference and developing product accordingly (Strom, Sears and
Kelly, 2014). Likewise, there are certain stakeholders that can be threat to business and impact
the success of business. Such as policies generated by government should be monitored
18

carefully. The noncompliance to government policy can impact the reputation of firm in adverse
manner. It can also result into penalty and legal consequences. Thereafter, to stay aligned with
rivals, their strategies must be followed. The actions taken by competitors have direct impact on
the sales of Shell company. Hence, it should monitor the strategies of its competitors. Thereafter,
employees are the key resources of the organization as they provide valuable services on which
success of company is dependent. Therefore, it is important for Shell organization to manage its
employees closely. Further, suppliers provide valuable input to the company that help in
rendering output to firm. Therefore, management of organization must assure suppliers are paid
on time and kept informed about business decisions.
Mendelow's matrix is helpful in formulating corporate strategy by understanding stakeholders for
identifying objective of Royal Dutch Shell, in order to govern by their stakeholders. It consist of
Mendelow's matrix because it is helpful in mapping.
19

4.
The link between HRM policies and organizational performances. A policy is a statement
of a principle or rule that members of an organization should follow. Each policy made in
company are important to the organization missions or operations. HR department create the
organization structure of the business (Guest, 2011). In policy, it shows that there should be clear
communication between organization and their employees regarding the condition of employee.
In organization employee, should be treated equally. It is linked with the organizational
performance because if employee in organization are treated equally there will be perform more
efficiently. Employee in organization are important if they feel that they are not treated fairly
then they can leave the organization. It is policy of Shell company that there should be no
discrimination done at the time of recruiting the candidates. When there is no discrimination at
the time of recruitment HR manager can hire skilled candidates, who help them in achieving the
20

objectives of shell company. Change management is foremost about people and their capacity
which will help in adopting changes which are taking place in organization for development.
Wages provided to employee in organization should be per their work performances as it is
written equal pays legislation act (Jiang, Lepak, Hu and Baer, 2012). In the policy of shell
company, it is included that training and development facility should be provided to new
candidates. Through this employee get aware of work which they will perform in the
organization. When employees are trained in their skill then they will give higher productivity
organization it leads to the profitability of Shell company. The company also provide training
facility to the employees to their existing employees who are not performing well in the
organizations. Compensation should be provided to employee so that they work more hard and
get more productive in the organization. Their different type of benefits which are provide
which are provided to employee in company such as paid leaves and incentives on their
additional work which makes employee satisfy then they will give more effort to the
organization. Health, safety and security, of employee is important for the employee in
organization (Armstrong and Taylor, 2014). Employee should give a job security and they feel
secure related to their job. When employee feel secure related to their job then employee will
become more attentive toward their work.
There is direct link between HRM policies and performance of business. This is evident
from the analysis of the Shell company. The proper staffing process help company in keeping
best human inventory. Therefore, talented employees provide best quality services to clients
which lead to high customer satisfaction and facilitate the sales. Thereafter, the employees also
support the business growth by providing creative ideas etc. (Yean and Yahya, 2013).
Furthermore, another HRM practice namely motivation help in boosting the morale of
employees. Due to this aspect, their productivity is improved resulting into more fruitful
outcomes for business. On the other hand, m by rendering fair and just compensation to
employees, company will be able to avoid many legal consequences. Also, it will help in
avoiding the bad image in market.
The human resource management practices of Shell company play an important role in
assuring the success of prospective change management process of firm. The HRM practices
involve wide range of activities such as, recruitment, selection, training and development, reward
21

management, compensation etc. With the help of fair and unbiased recruitment process,
company will be able to appoint staff with appropriate skills and knowledge (Hayes, 2014).
Thereafter, training and development session will prove to be advantageous in terms of preparing
employees for the needed change. Another aspect of HRM, compensation and benefits also play
a viable role in introducing change within organization. Such as, if certain no of employees is
replaced with new machine than in that case company can provide compensation to the affected
parties. This will help in avoiding the resistance from other members also who perceive change
as threat of losing job.
Knowledgeable management strategy is very important for the success of the Royal Dutch Shell
that are as below:
 Codification: It means the use of knowledge is the goal of codification. In this
knowledge from people is taken and store it anyway. This approach is used by the Royal
Dutch Shell, which is mostly focus on the documentation link between HRM policies and
organizational performances for meeting out goals easily.
 Royal Dutch Shell, work to gained knowledge for building the knowledge base with
consistency for using it in specific task or problem. This knowledge base is used in future
when any problem occurred in the project (Kehoe and Wright, 2013). Through this
approach of knowledge strategy for targeting past and future problem in similar ways. Its
impact on performance is that employee get more knowledge to solve the problem arises
in projects. Employee collect huge knowledge which is benefits for the organization at
Royal Dutch Shell so that they can work in efficient way. Personalization: The focus of the personalization in Royal Dutch Shell, aspect is on
people who are directly communicating with each other. In company follow matrix
structure so internal communication is important for gaining the knowledge (Yean and
Yahya, 2013). It forces employee to exchange ideas and views with each other is the
main principal of the company therefore, through this, they may generate more profits
and revenue for business.
Impact of knowledge management strategy
Through this employee continuously build up their knowledge base and Create a social network
within the organization. This personalization strategy is tried to support the creative and
22

individual approaches in critical project (Cameron. and Green, 2015). This knowledge
management is more focused on the connecting the employees. The purpose of this
 Strategy is to organize direct communication in the shell company. The knowledge is not
only share face to face but also through email or by video conferencing or by the over
telephone. It is clear from this that there are two parties in knowledge sharing that is who
give the knowledge owner and who gain its. It has a great impact on the organization
because employee is sharing their ideas and views with each other (Klingner, Nalbandian
and Llorens, 2015). Through this all employee are gaining some knowledge regarding the
critical task or project of company. By gaining knowledge employee are become highly
productive in their field. They can also handle any critical task without taking help of any
employee in the organization. It increases the productivity of company and an increases
the profitability of organization.
To facilitate the knowledge management strategy, the entity can make use of new and
innovative techniques that facilitate information sharing. Such as, social networking sites can be
used. The video communication can be used to show how machinery will operate and to train
employees. Thereafter, presentation can be prepared where audio, visual elements can be used to
provide detailed explanation of change related aspects.
Combination of strategies; both the strategy has equal importance in the organization. It can be
said that choosing a primary strategy which is supported by the other is equal in increasing the
productivity of company (Naff, Riccucci and Freyss, 2013).
Impact of outsourcing
The outsourcing can be defined as use of outside resources to perform functions that were
previously handled by internal staff and resources. The overseeing supply chain management can
be a challenging task and involve lot of time and attention. Therefore, company can outsource
this function to third party. The outsourcing is beneficial as, it will enable the company to focus
on other business aspects. Therefore, skills and capabilities of present employees can be used in
building business, generating innovative ideas etc. (Fingleton, Garretsen and Martin, 2012).
Thereafter, outsourcing is important aspect that help in reducing the overall cost of business. As
company, will appoint professional personnel who will develop cost effective methods for
supply chain management. The professional entity will also help in obtaining less costly raw
23

material, effective management of inventory and transportation optimization etc. Overall, it can
be stated that with the help of outsourcing the knowledge of professional entity can be used
while present employees can concentrate on other business areas.
In Royal Dutch Shell, supply chain management involves of some competitive advantage in four
sectors that are value addition, imitation cost barrier, rareness and organization structure because
if organizational structure is not correct then whole communication process will be ineffective
and thus, it will increase in rising of disadvantages for organization.
Value addition: At Royal Dutch Shell, value addition involves of inbound logistics and outbound
logistics because through this, they bring flexibility in working within organization. If HR of
organization need to add values according to their demand and supply of product (Lozano,
Ceulemans. and Seatter, 2015).
Rareness: organization does not provide some rareness related to organizational product because
if they are available then HR of organization will not be able to add value related to their
product.
Imitation of cost: HR of Royal Dutch Shell, need not provide some imitation of cost for their
employees because they will rise in expense for organization. Moreover, due to this value of
employee will be rises in organization and thus, it will create efforts in reducing of expenses
within organization by HR.
Organizational structure: Supply chain management will help in developing of organizational
structure well because through this, they will be able to work more effectively and
communication process will be effective. In addition to this, HR of Royal Dutch Shell, will rise
in reputation within firm so that they may be reach out goals easily (Hornstein, 2015).
5.
The impact of organization management and leadership styles on the planned change
management. At present company is using democratic leadership style to manage its human
inventory. This leadership style also play important role in change management process.
Democratic leadership style
This style is also known as participative leadership style. It has a great impact on the Shell
company. In this style responsibility is delegated to the team workers. Also, decision is
made after discussing the team members. The techniques used in this style is for play a
24

significant role in the organization (Dent and Whitehead, 2013). All employee ideas are
taken into a consideration this helps employee achieving their task on time. There is no
communication gap so employee can easily share their views and ideas with each other.
It has a positive impact on the organization that is employee are working with more efforts
because importance is given to employees. It creates positive work environment tin the
organization so employee can easily manage their work with the help of each other
(Fingleton, Garretsen and Martin, 2012). Leader is so much supportive in their style so
employee can also share their problem with leader. It reduces the employee turnover; it
makes feel employee empowered at work. It also has a negative impact on the organization
that is some time decision are taken is no much effective. The making process may take a
long time. It is quite effective for the organization. It increases the productivity of company
and helps in development of the organization (Culebras and et.al, 2014).
Overall, it can be stated that present leadership style play a crucial role in change process. It
involves proper participation of employees in business decision making process. This further
help in avoiding resistance to change to large extent. The present management style assures
proper communication between management and employees. This further help in rendering
information to employees that how change is helpful for both company and employees.
However, it can be critically stated that, involvement of employees take lot of time and is
ineffective when change is required to be implemented in short duration only. Due to delay
in employing change, it is possible that modification will be done by rivals first and thus
they will get the first mover advantage (Goleman, Boyatzis and McKee, 2013). Also, it is
not possible to obtain the consent of each party, in that case it becomes important for entity
to impose change on employees. Also, in such case, company can change its leadership style
can opt for autocratic style in place of democratic one.
Furthermore, the different business function will play important role in facilitating
organizational change. Such as human resource department will help in motivating
employees for accepting change as new opportunity for growth and development. In
addition to this, they will also motivate employees by proper communication, use of rewards
etc (Hannah and et.al., 2014). Thereafter, production department will assure it have proper
resource, tools and techniques for new change. Since, the change process is also
25

accompanied with significant cost, accounts division will assure proper availability of funds
and identify cost effective sources of finance. Business functions include production,
marketing, HRM, accounting and finance. In this, Royal Dutch can manage human
resources effectively by placing emphasis on several aspects such as recruitment and
selection, training & development, employee motivation program etc. Along with this,
performance of production function can be improved by focusing on the aspect of total
quality management. Hence, by keeping such aspects in mind pefortmance of business
functions can be improved.
CONCLUSION
The entire study being carried out has supported in knowing about the significance of
leadership within workplace. Further, Royal Dutch shell carries out all the operations on wider
basis due to which it is necessary for business to employ effective leaders who are effective
enough in managing workforce of the enterprise. Moreover, business performance of enterprise
is directly influenced due to changes taking place in the business environment. Apart from this,
many forces are being present which encourages change and are against the process of alteration
also. At the time of dealing with change it is necessary for organization to employ democratic
style of leadership so that motivation level can be enhanced up to extent. Apart from this, impact
of every leadership style on employee varies from each other and due to this reason, it is
necessary for Royal Dutch Shell to employ proper style for growth of its organization in every
possible manner. On the other hand, different triggers of change have been identified which are
both internal and external. Internal one involves technological change, merger and acquisition
etc. Apart from this, external one includes government regulation which forces organization to
bring change in its operations and in turn effective leadership style is used for management of
workforce. Without dealing with change it is not possible for Royal Dutch shell to operate
efficiently in the market and it leads to decline in level of overall performance. Moreover,
different tools are being present with the help of which it becomes easy to manage change within
the workplace. Force field analysis is one of the most effective tool through which business can
easily gain competitive advantage. Apart from this, it can allow business to deal with the factors
26

which are preventing business from accomplishing desired goals and objectives. Therefore, the
tool for managing change is effective in every possible manner.
27

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