The main aim of the task is to provide a brief overview about the globalization and its impact on the HRM. Globalization is the biggest key issue in human resource management which influences the position of the firm. Furthermore, it talks about the business activities and operations of the Oman shell. It is one of the biggest integrated companies that aim to fulfill the demand and requirements of the energy. Shell development Oman LLC provides a central point for the coordination and cooperation of the employees. It explains that how the company is facing key HRM issues and challenges within the organization due to globalization. It tells that how the firm is overcoming and addressing these challenges and key issues in the organization. It describes that how the company is maintaining sustainability in the environment. Further, the report explains the mission and vision of the Shell in Oman.
The Oman shell is one of the biggest energy leaders in the world. The company plays a significant role in order to meet the goals and objectives of the firm. It maintains an effective and unique relationship with stakeholders around the world (Minnee et al, 2013). The learning and development programs are conducted by the Shell in Oman. The company is active in Oman around the gas and oil industry and it is involved in independent activities and joint venture. Further, the company implements broad social investment programs which contribute to the sustainable development and expansion of the country (Devi, Al-Hashmi, and Sekhar, 2012). Honesty, respect, and integrity are the core values of the company. The company provides support to the government and people of the Oman through, learning, development, research and sustainable social investment programs. In today’s era, the company is expanding and flourishing its business day by day. Shell involves in the construction and design of the plant in Sur and it also involves in the development and expansion of the gas and oil business. The company representative office was established in 2002. The firm is delivering energy is an effective and responsible way in order to accomplish the needs, requirements, and desires of the people (Abejide and Raji, 2013). The Shell is a group of petrochemical and Energy Company around the world.
Globalization: It is the major issue in human resource management which influences the success and growth of the firm. It also affects the quality of life and standard of life. It also influences the organization’s balance sheet and product life of the organization. It also has a direct impact on monetary regulations and trade policies of the government. It also affects the culture and working conditions of the firm (Pieterse, 2015). Due to globalization, several contemporary issues are faced by the human resource management that has been discussed below.
Contemporary issues in HR
There are various key challenges faced by the human resource management due to globalization. After the various researchers, it has been analyzed by the Appelbaum et al (2011), where he said that contemporary issues affect the mission and vision of the company. These issues also affect the success and growth of the company while conducting business activities and operations globally. The contemporary issues that are associated with globalization have been discussed below (Taylor, 2017).
Multi-generational challenges in the workplace: It is the biggest challenges in human resource management which affect the long term targets of the firm due to globalization. It affects the working capacity and productivity of the employees. The company has not been able to appoint experienced and potential employees. Therefore, it also creates conflicts and disputes in the workplace among the employees. The company is not able to take benefits of the experience and knowledge of the older employees. It is one of the biggest challenges for the human resource department (Haynes, 2011).
Market competition: Globalization also increases competition in the global market. The immense and high competition will also increase and enhance the pressure on organizations to maximize the quality and eliminate the prices. It affects the financial position of the firm in the competitive market (Fujita and Thisse, 2013).
The lack of skilled workforce: Globalization encourages competition in the global market. As a result, the firm needs to make effective and unique strategies and policies to stand out against the competitors across the world. Due to immense competition, the firm requires to appoint high skills and potential workforce. It is difficult process to appoint capable and skilled labor force at low prices. Human workforce is the biggest contemporary issue in HRM which has an adverse impact on the vision of the firm (Milanovic, 2016).
Challenges of changing technology: Globalization also has an adverse impact on technology and innovation. Due to globalization, the firm needs to change the technology and process on regular basis that can affect the operations and activities of human resource management. Due to change management, high employee turnover and absenteeism will also increase in the organization. Sometimes, employees do not accept the organizational changes due to lack of knowledge and experience. They avoid and ignore these organizational challenges. In addition, lack of proper research and development team, the company cannot overcome on the competitors around the world. It also affects the energy and sustainability of the firm (Stromquist and Monkman, 2014).
Legislation influencing workplace: The rules and regulations which are imposed by the government also influence the trading activities and operations of the company adversely. It also affects the sustainability and development of the firm. After the various researchers, it has been evaluated by Paik, Chow and Vance (2011), where they said that legislation also affects the efficiency and effectiveness of the workers.
Leadership development: It is another contemporary issue in HRM which affects the productivity and performance of the employees in the workplace. The company has not been able to maintain sustainable human resource management due to inadequate resources and development (Kunze, Boehm, and Bruch, 2011). The supervisors and top management are not effective and competent to control and motivate the subordinates within the organization. The company does not provide training and development coaching to the managers and supervisors (Benería, Berik and Floro, 2015). Thus, they are not able to provide motivation and encouragement to the employees to reduce and prevent the adverse impact of globalization (Benn, Todd and Pendleton, 2010).
Healthcare law compliance: The human resource management faces a number of logistics and healthcare challenges in the organization due to globalization. The firm could not set the proper and effective rules, and regulations related to the healthcare. It affects the health and performance of the subordinates at the workplace (Rugman, 2012).
Recruitment: It is one of the major concerns in the HRM. It is difficult for the company to appoint potential and competent employees for doing work in the energy sector. Recruitment and selection are important to increase and maximize the revenue and profit of the company. HRM is not able to evaluate and analyze the skills and potential of the employees due to globalization. Hence, various recruitment and selection challenges are faced by the company at the workplace (De Wit, 2011).
Reward and compensation: These contemporary issues exist in the organization. The firm does not provide reward and incentive to the potential and competent employees within the organization. It affects the actions and efficiency of the workers. Pepper and Gore (2015), said that reward and compensation are considered the motivational tool for the employees. If the company does not provide compensation and reward to the competent employees then they get disappointed (Larkin, Pierce and Gino, 2012).
Health and safety: These are another major concern in HRM. Health and safety are the primary function of the human resource management to build and develop sustainability in the workplace and environment. Whenever safety and health issues arise in the organization then employees are not able to do work with more efficiently and effectively. Health and safety issues affect the health of the workers in the world. Lundgren and McMakin (2013) said that good and healthy working environment is essential for each and every employee to increase and maximize the revenue and profit of the company. The firm has not been able to maintain healthy and safety working environment due to globalization.
Discrimination and diversity: These issues are faced by HR department of every firm. It also affects the skills and performance of the employees within the organization. The top management and manager discriminate among the employees. Sometimes, top management and managers do false commitment and promise with employees in order to increase the salary and basic pay of the employees but they do not fulfill the basic needs and requirements of the employees (Kunze, Boehm, and Bruch, 2011). Thus, it affects the efficiency and performance of the workers adversely. Apart from this, the employees do not maintain discipline and rules within the organization. It also affects the image and position of the company around the world. Further, HRM does not maintain proper records and books of accounts of the workers. It also influences the performance and quality of the workers. In addition, HRD is not able to resolve the queries and grievances of the workers related to the workplace. Thus, employees feel unhappy within the organization. All these contemporary issues are faced by the HR department of the firm (Kunze, Boehm, and Bruch, 2011). Due to globalization, the company is not able to build and develop communication within the organization (Hitt, Ireland and Hoskisson, 2012).
On the above mentioned contemporary issues, leadership development is a biggest contemporary issue in HRM. The success and growth of the organization depend on the effective and dynamic leadership. The employees of the company are not capable to become a team leader in the organization due to globalization (Crane and Matten, 2016). Thus, it affects the success and growth of the company. Leadership is important to create a reciprocal relationship with partners around the world. It also helps to know and evaluate the technology and energy of the firm. Leadership is the major part of the success and growth of the firm. The company does not use effective and unique leadership styles to guide and assist the workers in the organization. It is the biggest challenge for the company to determine its long-term mission and vision of the firm with maintaining sustainability at the workplace. Lack of leadership, the company is not able to improve the performance and quality of the subordinates in the global market. Lack of leadership styles, the firm is not able to motivate and encourage the workers within the organization. It also affects the energy and innovation of the firm. Stone and Deadrick (2015) said that a company cannot expand its trading activities globally without effective and unique leadership. Leadership styles are primary and foremost part of the organization in order to measure the sustainability of the organization (Gregory et al, 2011).
Evaluation that how the organization has addressed the challenges issues
The human resource management issues influence the business activities and operations adversely in various ways. Therefore, the company needs to focus and monitor these key challenges and issues to attain long-term mission, goals, and objectives of the firm. Shell must measure and identify these key challenges to maintain sustainability within the organization. There are various ways to address and resolve these key issues which have been discussed below (Schaltegger, Lüdeke-Freund, and Hansen, 2012).
- Shell is the largest company in the world. Therefore, the company must resolve the generation issues to overcome the key challenges of human resource management within the organization. The company should provide opportunities to the young and potential people to do work in Shell with more efficiently and effectively. In this way, it helps to improve the performance and efficiency of the potential workers in the organization (Shuen, Feiler and Teece, 2014).
- The effective rules, legislation, policies must be made by the Shell in Oman to attract more consumers around the world. Rules and regulations determine the long-term growth and success of the firm. It also helps to reduce the key HRM issues within the organization. These rules and legislation provide guidance to the employees. It helps to run the business activities smoothly and easily (Li, Sanders, and Frenkel, 2012).
- The company must provide training and development coaching to the workers to evaluate and analyze the benefits of the organizational changes within the organization. Further, some unique and dynamic programs must be conducted by the company to resolve the resistance to change issues in the Shell. The top management and managers should evaluate the reasons for the refusing the organizational changes. In this way, the company can control the resistance to change issues around the world. The organizational changes are important for the company to introduce new and innovative technology in the market. The top management and managers must maintain proper collaboration and communication with employees to reduce and resolve these issues in the global market (Mandip, 2012).
- Further, Oman Shell monitors and evaluates the benefits of the technology advancement to gain the competitors advantages across the world. The company should invest money to introduce new technology in Shell. It helps to reduce the key obstacles to the human resource management within the organization. It also helps to sustain sustainability in the organization (Schalk, Timmerman and Van den Heuvel, 2013).
- Apart from technological advancement, the firm needs to monitor and focus on the leadership development to minimize the key challenges of the HRM. Leadership development plays a crucial role to build and develop sustainability in the global market. In addition, various leadership styles are developed and built by the Shell in Oman. In today’s era, leadership development is becoming the key success indicator for the firm. Along with this, leadership theories and models must be used by the company to beat the competitors in the market by maintaining sustainability (Singh et al, 2012).
- Shell should follow the health safety act and other policies to reduce the key issues of the HRM in order fulfill the needs, requirements, and expectations of the customers. Along with this, minimum wages act and factories act must be implemented by the government to maintain sustainability and to reduce the key problems and issues of the HRM within the organization. It helps to increase and maximize the revenue and profit of the firm. The company must use some innovative and unique strategies and policies to meet and attain the business vision and mission of the Shell. These strategies and policies must b made by the government (Marescaux, De Winne, and Sels, 2012).
- Further, Shell in Oman influences and affects the reward and compensation system of the company across the world. The reward and compensation system should be evaluated by the Shell in order to develop and build a reciprocal and cordial relationship with the target audience in the environment (Dipboye and Colella, 2013).
- In addition, the company must implement health and safety act and laws within the organization to provide a favorable environment to the workers. Further, Shell also develops and builds some strategies, policies and plans to minimize the challenges and key issues of the company. Further, adequate and proper working environment should be provided to the workers to beat the competitors across the world (Anderson, 2013 ).
- The company should not discriminate on the basis of caste, religious, and culture of the employees. It affects the business activities and operations of the country. The company should provide equal rights to the employees. Top management should protect the rights of the workers. In this way, they are able to motivate the employees for doing work and task with more effectively within the organization (Long, Ajagbe, and Kowang, 2014). Shell should maintain diversity to expand and explore the trading activities globally. The employees learn a lot of things, experience, and knowledge through diversity. It also helps to maintain corporate social responsibility and sustainability within the organization. Along with this, the company must resolve the queries and grievances of the employees to provide satisfaction to them. The managers should sit with employees to listen to their problems and issues and resolve them (Chuang,
Jackson and Jiang, 2016).
Along with this, performance reward system must be used by the company to enhance and increase the productivity of the company. Further, performance appraisal should be provided by the company to provide job satisfaction and job security to the employees. Shell should reduce the employee turnover within the organization because it affects the image of the company. The company should provide a favorable working environment for the workers to make them happy and pleasant. Along with this, the firm must focus on the negative impact of the globalization to carry the business activities globally. It will also help to enhance and increase the capacity and effectiveness of the workers (Srivastava and Agarwal, 2012). Further, the company must develop and enhance new technologies to detect and reduce the reservoirs which are invisible. Effective utilization of resources must be done by the company to secure and protect the natural resources of the firm. The employers must maintain collaboration and cooperation with subordinates to increase and enhance the employee engagement at the workplace. Along with this, Shell must use various approaches to maintain sustainability in the environment. Sustainability plays a vital and integral role to protect the environment of the country. It helps to increase the goodwill of the company. The company can reduce the risks and key issues of the marketing by maintaining sustainability within the organization (Den Hartog et al, 2013).
On the above discussion, it has been concluded that Shell is one of the biggest energy and petrochemical companies across the world. Thousands of workers are working in the company to provide energy and technology for a growing population. The company is working on many projects in Oman. Along with this, Shell uses various types’ sustainable approaches to provide a safe and secure environment to the workers. Further, the company uses core values and competencies to build a good image in the global market. The company is developing innovative technologies to manage the carbon dioxide (CO2) emissions and water consumption. In addition, the company enhances and increases the oil recovery techniques within the organization. The company is also focusing on the key HRM issues to accomplish its long-term goals and objectives within the organization. It is making effective and unique strategies, policies and plans to reduce and address the HRM issues in the organization. The firm is helping to develop and build local economies by creating jobs, paying taxes and royalties. Shell is supporting the community projects which are based on the needs and requirements of the local communities. The firm sets high standards of ethical behavior and performance in the organization. Further, the company needs to focus on the technology to attain the long-term objectives and goals of the firm.
Although, Oman shell is making effective position in the global market by maintaining sustainability within the organization but still it needs to implement some policies and plans for the future growth and success. It is recommended that Oman Shell must focus on the technology and energy to minimize and reduce adverse social and environmental impacts. The company should do planning for future development and growth by maintaining sustainability in the organization. Further, the company should maintain an effective code of conducts and business ethics to address the HRM issues within the organization. Safety standards must be implemented by the Shell in Oman to minimize the key issues of human resources. In addition, the company should focus on the marketing campaigns and programs to increase and maximize the profit of the company. It is suggested that firm should focus on the human resource management to implement rules and policies smoothly and effectively. The HRM must focus on the business activities, rules, and policies of the company while recruiting the candidates within the organization to address the key challenges in the more effective way. They should improve the productivity and quality of the employees by providing and enhancing the motivation to them. In this way, Shell is able to overcome the key issues of HRM. Apart from this, the organization should collect feedback from the managers to evaluate the performance of the workers. They should also appoint a person who can handle and resolve the grievances and complaints of the employees. A committee should be appointed by the company to determine the appraisal and incentives of the workers. Further, the company should focus on the advertisement and promotion strategies to expand and flourish the trading activities and operations of the firm globally. In this way, the company can improve its functions and performance within the organization. It also helps to accomplish the mission, goals and targets of the company. In addition, an effective and sustainable human resource management should be implemented by the company to tackle the issues related to the atmosphere of the company
Abejide, T.S. and Raji, A.O.Y., 2013. An assessment of environmental problems associated with oil pollution and gas flaring in the Niger Delta Region Nigeria, c. 1960s-2000. Oman Chapter of Arabian Journal of Business and Management Review, 3(3), pp.48-62.
Anderson, V., 2013. Research methods in human resource management: investigating a business issue. Kogan Page Publishers.
Appelbaum, S.H., Roy, M. and Gilliland, T., 2011. Globalization of performance appraisals: theory and applications. Management Decision, 49(4), pp.570-585.
Benería, L., Berik, G. and Floro, M., 2015. Gender, development and globalization: economics as if all people mattered. Routledge.
Benn, S., Todd, L.R. and Pendleton, J., 2010. Public relations leadership in corporate social responsibility. Journal of Business Ethics, 96(3), pp.403-423.
Chuang, C.H., Jackson, S.E. and Jiang, Y., 2016. Can knowledge-intensive teamwork be managed? Examining the roles of HRM systems, leadership, and tacit knowledge. Journal of management, 42(2), pp.524-554.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
De Wit, H., 2011. Globalisation and internationalisation of higher education. rusc, 8(2), pp.241-247.
Den Hartog, D.N., Boon, C., Verburg, R.M. and Croon, M.A., 2013. HRM, communication, satisfaction, and perceived performance: A cross-level test. Journal of management, 39(6), pp.1637-1665.
Devi, M.G., Al-Hashmi, Z.S. and Sekhar, G.C., 2012. Treatment of vegetable oil mill effluent using crab shell chitosan as adsorbent. International Journal of Environmental Science and Technology, 9(4), pp.713-718.
Dipboye, R.L. and Colella, A. eds., 2013. Discrimination at work: The psychological and organizational bases. Psychology Press.
Fujita, M. and Thisse, J.F., 2013. Economics of agglomeration: cities, industrial location, and globalization. Cambridge university press.
Gregory, K.B., Vidic, R.D. and Dzombak, D.A., 2011. Water management challenges associated with the production of shale gas by hydraulic fracturing. Elements, 7(3), pp.181-186.
Haynes, B.P., 2011. The impact of generational differences on the workplace. Journal of Corporate Real Estate, 13(2), pp.98-108.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2012. Strategic management cases: competitiveness and globalization. Cengage Learning.
Kunze, F., Boehm, S.A. and Bruch, H., 2011. Age diversity, age discrimination climate and performance consequences—a cross organizational study. Journal of organizational behavior, 32(2), pp.264-290.
Li, X., Sanders, K. and Frenkel, S., 2012. How leader–member exchange, work engagement and HRM consistency explain Chinese luxury hotel employees’ job performance. International Journal of Hospitality Management, 31(4), pp.1059-1066.
Long, C.S., Ajagbe, M.A. and Kowang, T.O., 2014. Addressing the issues on employees’ turnover intention in the perspective of HRM practices in SME. Procedia-Social and Behavioral Sciences, 129, pp.99-104.
Lundgren, R.E. and McMakin, A.H., 2013. Risk communication: A handbook for communicating environmental, safety, and health risks. John Wiley & Sons.
Mandip, G., 2012. Green HRM: People management commitment to environmental sustainability. Research Journal of Recent Sciences, ISSN, 2277, p.2502.
Marescaux, E., De Winne, S. and Sels, L., 2012. HR practices and HRM outcomes: The role of basic need satisfaction. Personnel Review, 42(1), pp.4-27.
Milanovic, B., 2016. Global inequality: A new approach for the age of globalization. Panoecomicus, 63(4), pp.493-501.
Minnee, F., Shanka, T., Taylor, R. and Handley, B., 2013. Exploring corporate responsibility in Oman–social expectations and practice. Social Responsibility Journal, 9(2), pp.326-339.
Paik, Y., Chow, I.H.S. and Vance, C.M., 2011. Interaction effects of globalization and institutional forces on international HRM practice: Illuminating the convergence?divergence debate. Thunderbird International Business Review, 53(5), pp.647-659.
Pepper, A. and Gore, J., 2015. Behavioral agency theory: New foundations for theorizing about executive compensation. Journal of management, 41(4), pp.1045-1068.
Pieterse, J.N., 2015. Globalization and culture: Global mélange. Rowman & Littlefield.
Rugman, A., 2012. The end of globalization. Random House.
Schalk, R., Timmerman, V. and Van den Heuvel, S., 2013. How strategic considerations influence decision making on e-HRM applications. Human Resource Management Review, 23(1), pp.84-92.
Schaltegger, S., Lüdeke-Freund, F. and Hansen, E.G., 2012. Business cases for sustainability: the role of business model innovation for corporate sustainability. International Journal of Innovation and Sustainable Development, 6(2), pp.95-119.
Shuen, A., Feiler, P.F. and Teece, D.J., 2014. Dynamic capabilities in the upstream oil and gas sector: Managing next generation competition. Energy Strategy Reviews, 3, pp.5-13.
Singh, S., Darwish, T.K., Costa, A.C. and Anderson, N., 2012. Measuring HRM and organisational performance: concepts, issues, and framework. Management Decision, 50(4), pp.651-667.
Srivastava, E. and Agarwal, N., 2012. The emerging challenges in HRM. International journal of scientific & technology research, 1(6), pp.46-48.
Stone, D.L. and Deadrick, D.L., 2015. Challenges and opportunities affecting the future of human resource management. Human Resource Management Review, 25(2), pp.139-145.
Stromquist, N.P. and Monkman, K. eds., 2014. Globalization and education: Integration and contestation across cultures. R&L Education.
Taylor, S., 2017. Contemporary issues in human resource management. Kogan Page Publishers.