Strategic Human Resource Management in SABIC: A Case Study Report

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Strategic Human Resource Management
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Executive summary
The report contains short analysis and development of strategic human resource management for
following human resource management. The report has focused on developing the strategic
human resource planning as executing in the context of SABIC as GCC Company. The study is
focused on SHRM and establishing resource management as developing the organisational
context. The strategic management and execution of effectiveness include developing the
concept towards the employees. HR professionals have the requirements to focus on diversified
work culture and policies as effective enforcement of organisational systems.
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Table of Contents
Introduction.................................................................................................................................................4
Assessment Task 1:......................................................................................................................................5
1. The importance of SHRM in any organisation by justifying with an example..........................................5
2. Based on the Article.................................................................................................................................6
a) HR Management in SABIC........................................................................................................................6
b) SHRM activities pertaining to recruitment, retention, and management of crucial human capital
resources.....................................................................................................................................................7
c) The contribution of SHRM of the organisation, towards achieving and meeting the organisational
objectives and goals....................................................................................................................................7
Assessment Task 2.......................................................................................................................................9
1. Business factors that underpin human resource planning in the organisation........................................9
2. Human resource plan for recruitment, retention, training, and development in an organisation........10
3. The purpose of human resource management policies in the organisation..........................................13
4. Three major regulatory requirements to influence an organisation's HR policies, and the impact on an
organisation's human resource policies....................................................................................................14
5. Organisational culture has a major impact on the management of human resources in an organisation
.................................................................................................................................................................. 15
6. Improving the effectiveness of human resources management in the organisation.............................16
Assessment Task 3.....................................................................................................................................17
1. Analysis of organisational structure and impact on the management of human resources in Syngenta
.................................................................................................................................................................. 17
2. The effectiveness of human resources management to monitor in a company like Syngenta..............18
Conclusion.................................................................................................................................................19
Reference list.............................................................................................................................................20
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Introduction
Strategic human resource management is beyond the traditional competitive concept to set the
direction. The strategies are developed to account the involvement of specific desired timeframe.
Vital empowerment of HRM practice includes the actions, policies, and decisions to develop the
vision and goal of the organisation (Noe et al., 2017). SHRM in any organisation helps to retain
the desired timeframe and incentives for promoting the organisation. Strategic human resource
management focuses on hiring policies and training programs for assessing the technical
advancements for traditional HRM practice. The HRM literature is treated in the organisational
context to develop the training and development practice for HRM practice. The report will
focus on the SHRM of the organisation and case scenarios of organisations. The report will focus
on human resource planning and objectives of the organisation to develop the human resource
management practice.
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Assessment Task 1:
1. The importance of SHRM in any organisation by justifying with an example
Strategic Human Resources Management (SHRM)
SHRM practices take into consideration the management of individuals in a very active manner.
According to thenational.ae, (2015) SHRM involves the different practices, which has the
requirement and the need for the organisations to think ahead of the times and helps in planning
different processes for the organisations to manage its employees. Various activities involved
with the employment activities and the introduction of modern and advanced training programs
within the organisations help in developing Strategic Human Resources Management (Bratton
and Gold, 2017).
Importance of Strategic Human resources management within SABIC (Saudi Arabia Basic
Industries Corporation) is discussed by referring to the different strategies of HR adopted by the
organisation in employing talented and skilful employees within the organisation and enhancing
the business performance of the organisation. SABIC is an organisation associated with the
manufacture of petrochemicals in the GCC region. According to DeCenzo et al., (2016), the
organisation attempts to build a strong workforce under them, which would help them to conduct
their business operations efficiently and smoothly. Strategic Human Resources management
takes into account that employees are assets of organisations and involves following the different
HR practices, which enables the organisation to create a proper brand image and enhance its
growth.
HR Practices followed in SABIC
SABIC is one of the leading manufacturers of petrochemical products throughout the world
(SABIC.com, 2019). To continue its business operations smoothly, the organisation focuses
upon building a stable and concrete strategic human resources framework in the organisation.
According to Kavanagh and Johnson (2017), the HR department tends to follow different HR
practices, which are valuable for strengthening the workforce of the organisation with talented
and responsible employees who would work for the betterment of the organisation. According to
Sanghi (2016), HR Practices followed in the organization such as employee selection,
introduction of modern and advanced training methods, producing a performance appraisal
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system, compensation system and system associated with career-planning help in strengthening
the workforce with responsible and talented employees who would work in a dedicated manner
in executing the operational activities of the organization (thenational.ae, 2015).
The maintenance of a specific HR Strategy in the organisation will help the organisation to
enhance their growth and development as well as improve upon their business performance in
the organisation (Taylor et al., 2015). Strategic HRM followed by the organisation helps them
to provide the comprehensive training programs and methods to the employees thereby helping
them to develop professionally and personally. To evaluate and assess the performance of the
employees in the organisation, the management of the organisation has a performance appraisal
system at their exposure, which would also increase the motivation and confidence of the
employees.
2. Based on the Article
a) HR Management in SABIC
The organisation SABIC was formed with an aim to strengthen the organisation with the
workforce from the Saudi region (SABIC.com, 2019). At the beginning of its operational
activities, the management of the organisation faced problems and difficulties in managing the
human resources of the organisation. However, with passing time, the organisation could evolve
their training methods and introduced advanced training programs as they targeted in developing
experienced workforce who would serve and execute the operational activities with dedication
and commitment. Thus, the management of HR within the organisation got very smooth and
efficient with the implementation of specific HR strategies and following the concept of strategic
human resources management. The organisation sets certain particular targets and goals within
the organisation and then takes the necessary steps to support them (Cascio, 2015). The principal
objective of the organization is to adopt the various goals of sustainability in manufacturing
several of their products and serving people properly.
According to Baker (2017), the organisation conveniently manages its HR practices so that they
can recruit talented and skilful employees within the organisation who would prosper, flourish,
and enhance the growth of the organisation by adhering to the organisational culture and
behaviour. According to Schiavone (2016), other objectives and goals of the organization
involves building initiatives to set up business relationships with several agencies,
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governmental institutions, authorities in order to execute their varied range of operational
activities smoothly. The organisation also wants to develop a good relationship with its
customers and satisfy them through their quality services. The organisation also wants to
develop the economy of Saudi Arabia overall within the GCC region and worldwide
(SABIC.com, 2019). To achieve the desired objectives and goals, the organisation needs to put in
place a systematic human resource management strategy, which will help the organisation to
execute cohesive action and implement the operational activities smoothly and efficiently.
b) SHRM activities pertaining to recruitment, retention, and management of crucial
human capital resources
SHRM focuses on human capital resources in the chosen sector as developing the critical aspect
and importance to recruitment and retention to assess the capital resource. It is measured to focus
and develop the contribution towards organisational development through achieving the
organisational objectives. The organisational objectives focus on SHRM activity to develop and
enhance the achievements of the organisation's goals. It is concentrated and performed to assess
the purpose of the SHRM activities as contributing to recruitment, retention, and management
as capital resources. With the help of developing a healthy workforce, SABIC could complete
different tasks related to building modern and technologically advanced supply chains
associated with producing and supplying a varied range of products and services. Thus, a
strong and committed workforce would result in efficient work within the organisation. A
packaging innovation was introduced by the organisation with the aim of providing instant
solutions to the problems of customers (DeCenzo et al., 2016). The Organization was able to
implement this alongside various other innovations with the support and aid of a skilful and
talented workforce who were selected by following a systematic selection process. This helped
the organisation to reach out to numerous customers and promote their products and services in
different markets. The organisation tends to invest more capital in developing the training
procedures and activities provided to their employees. The organisation also ensures the
maintenance of safety standards and measures of the organisation (SABIC.com, 2019).
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c) The contribution of SHRM of the organisation, towards achieving and meeting the
organisational objectives and goals
It is evaluated to ensure the SHRM activities to develop the regulatory aspects and execution to
build and analyse the professional HRM execution. Towards achieving and meeting the SABIC's
objectives, the organisation needs to develop high competence within the organisation. The
contribution is ensured to achieve SHRM activities to provide professional development and
assurances. SHRM includes achievements and meeting strategic development and greater
business assets. The contribution of SHRM to the organisation focuses on developing the
recruitment and selection process (Collings et al., 2018). It is useful to concentrate and execute
the meeting the organisational goals and objectives. SHRM focuses on developing and
implementing the HR management to ensure the recruitment and selection process within
SABIC (SABIC.com, 2019). As per the GCC procedures, the right frameworks and recruitment
focus on developing the capitals and contribution within the organisation. The article focuses on
preferred goals and objective to assess the SHRM activities.
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Assessment Task 2
1. Business factors that underpin human resource planning in the organisation
Business factors influence human resource planning to develop business development in SABIC.
The business factors include the situation of the diversification within the organisational context.
The business factors have focused on strategic human resourced management in SABIC. Human
resource planning in SABIC develops to enhance the training and development in organisational
context and diversified sectors in Arab.
Recruitment:
In the context with recruitment, human resource management focuses and contributes to meet the
organisational development (Knies et al., 2015). The situation of diversification within SABIC is
influenced by the recruitment factor for taking efficient employees and staffs for the
organisation. The recruitment factor includes the development and retention for enhancing the
human resource plan to contribute to recruitment. The recruitment process includes the
identification of an HR plan in a diversified situation of SABIC.
Retention:
Retention in the organisation focuses on human resource planning for the organisation. Retention
of employees is considered as part of receiving the HR planning and priority. Sometimes, the HR
area is assigned to receive a high priority to ensure employee retention in SABIC (SABIC.com,
2019). The organisation follows the procedures to develop the area of human resource
management in the diversified situation.
Training:
Training is a program for supporting the HR functions and design on departmental operation
(Brewster et al., 2016). The training includes the impacts and evaluation of employees in the
context of a diversified work environment in SABIC. It has an impact to operate the training
program and departmental operation for developing the organisational programs. According to
Knies et al. (2015), training and development in an organisation focuses on the impact of human
resource planning and development to influence staff motivation and job satisfaction.
Development:
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Development is focused on establishing a positive workplace culture for the organisation. The
organisation is focused on establishing and ensuring the training program for the employees.
SABIC focuses the development plan to develop the business factors as enhancing the work
productivity in diversification area. The job development includes the human resource
management evaluation and the policies to benefit the work culture (Sánchez et al., 2015).
The human resource requirements in the organisation:
Effective human resource planning develops the right employees at the right time and the right
place. It is developed to cope up with knowledge extension and strategies. The purpose and
description of the right level includes the human resource requirements within the organisation.
Organisational development and system dynamics focus on the right level of competence and
skills in the diversified workplace. Diverse organisational effectiveness is focused and included
the capabilities to promote diversity (Jabbour and Sousa Jabbour, 2016).
Specific employee retention is included to specify the races and genders within the workplace.
For instance, anonymous hiplines guide the employees for report case in retaining the
employees. Workplace behaviour includes specific requirements to focus on workplace
behaviour as promoting diversification. SABIC focuses on minority and races to allow
discrimination and employee retention as developing the policies of colour blind and gender.
2. Human resource plan for recruitment, retention, training, and development in an
organisation
Human resource management plan in SABIC has focuses on the conduction of process and
essential task management for recruitment, retention, training, and development. Human
resource planning processes are determined through selecting the right candidate and conducting
the process in the organisation. The organisation includes senior leadership recognition and
talent development as per its objectives (Morschett et al., 2015). SABIC has objectives to focus
on change management and relevant actions for employee development.
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HR plan:
Recruitment Retention Training Development
Analysing
organisational
objective
SABIC has to
achieve the
various fields
including
marketing, sales
and
manufacturing of
recruitment.
Employee
retention needs
several
organisational
objectives to
expand various
job requirements.
In the context
with training,
organisational
objectives focus
on human
resource
information for
developing
training of
employees.
After, recruiting,
development in
SABIC is taken
by analysing the
organisational
objectives.
Inventory of
Human
Resources
From human
resource
information, the
current storage of
employees and
their capacity
influences the
recruitment
process
(SABIC.com,
2019).
Retention in
SABIC focuses
on the current
inventory of
human resources
as executing the
external sources
for human
resource
management.
Training of the
employees is
focused on
informing the
potential internal
and external
sources.
Development in
SABIC focuses
on inventory to
fulfil the various
job requirements
and external
resources to
estimate
(SABIC.com,
2019).
Forecasting
Demand and
Supply
Forecasting the
estimated
demands of
supply in SABIC
focuses on the
deficit of human
resource
planning and
It is included to
develop the
training and
development for
upgrading the
skills for
employee
The demands and
supply focus on
particular
suitability of
human resource
of skills of
employees
Demands and
supply focus on
job specification
and
representations
are employed to
fix the
development
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upgrades skills of
employees.
retention. through training. program within
the organisation.
Monitoring,
Control and
Feedback
Monitoring,
control and
feedback system
are important to
focus on the
recruitment
process.
Recruitment
process needs
monitoring to
ensure success.
The retention
includes job
satisfaction and
measurements to
ensure success
within the
organisation
(Meyer and Xin,
2018).
Training focuses
on monitoring
and feedbacks to
measure the
success of the
training within
the organisation.
The demands and
specification
include human
resource
demands and
programme for
the skills of
employees.
Development
includes human
resource
management to
use specific
development
strategies to
represent the
skills of
employees.
Figure 1: HR planning steps
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