Human Resources Management at Work: ExxonMobil - Essay Example

?Human Resources Management at Work: ExxonMobil Contemporary organizations have acknowledged the crucial importance of people as a vital resource needed for the accomplishment of goals. As the drivers of organizational success, human resources need to be managed: planned, organized, directed, maintained and controlled to ensure that they perform according to or exceeding expectations. In examining the role that human resources management (HRM) plays in different organizations, one needs to take a closer look at diverse factors that affect its functioning. In this regard, the report aims to explain and illustrate how aspects of the external and organisational context impact upon human resource management policies and practices in one or more organisations. To achieve the defined objective, one would look into HRM policies and practices of one of the most successful and visible multinational organizations with global span is Exxon Mobile Corporation. Its global reach extends to areas such as North and South America, Europe, Africa and Middle East, and the Asia Pacific Region (ExxonMobil n.d.). The paper would hereby provide a brief organizational profile prior to delving into highlights of its HRM policies and practices. Finally, the discourse would determine factors from both the internal and external environment impact on HRM policies and practices, as required. Brief Organizational Profile Exxon Mobil is one of the world’s largest renowned publicly traded oil and gas corporation whose roots could be traced more than 125 years ago (ExxonMobil: History, n.d.). With extensive scope of global operations, Exxon Mobil has been guided by the clearly defined principles expected of their stakeholders: shareholders (to enhance the investment entrusted to the organization); customers (to ensure satisfaction of changing preferences and needs); customers (to support, sustain and maintain highly qualified and competent pool of human resources); and community (to be socially responsible and adhere to ethical and moral standards) (ExxonMobil: Guiding Principles, n.d.). As entrusted to management by various stakeholders the successful steering of the organization, they are “committed to being the world's premier petroleum and petrochemical company. To that end, we must continuously achieve superior financial and operating results while simultaneously adhering to high ethical standards” (ExxonMobil: Guiding Principles, n.d, par. 1). HRM Policies and Practices Like any other global organizations, ExxonMobil acknowledges their human resources as their greatest asset. In all global sites, ExxonMobil encourages diversity and inclusion as the key competitive strengths that provide the framework for implementing various functions of HRM. Through the message relayed by ExxonMobil’s Chairman and CEO, Rex W. Tillerson, the backbone of HRM policies and practices is sourced from this statement, to wit: “To ensure that we continually leverage the strengths of this diverse workforce, we foster a work environment that treats all employees with respect, values unique perspectives, encourages individual growth and achievement, and rewards people based on their performance. Wherever we do business, our objective is to seek out and hire talented, dedicated employees from all walks of life and give them the opportunity to learn, grow and succeed” ( (ExxonMobil, n.d., p. 1). More explicitly stated, the disclosed message has been incorporated in the organization’s HRM policies particularly focusing on: Equal Employment Opportunity Policy, Harassment in the Workplace Policy, Procedures and Open Door Communication Policy, and an Ethics Policy that govern all actions and behavior of all personnel. These policies are contained in their Standards of Business Conduct (SBC) (2006) that could be easily viewed and accessed in the organization’s official website (ExxonMobil: SBC 2006). 1. Recruiting The primary source of ExxonMobil in hiring and recruiting new personnel is through their affiliated educational partners and universities (ExxonMobil: Global Diversity, n.d., p. 3). Through the provision of scholarships, grants and internships, the organization has managed to recruit newly graduate students who manifest exemplary knowledge, skills, and abilities that could be tapped and effectively used. As indicated in their global diversity advocacy, “ExxonMobil typically sponsors about 750 summer internships and co-op jobs throughout the world each year. We see this initiative as central to our company’s health and future” (ExxonMobil: Global Diversity, n.d., p. 3). This is an effective method of recruitment as the organization taps students who manifested exemplary academic performance (those who were able to avail of scholarships could only do so by qualifying with examinations and adhering and maintaining stipulated grade averages). Further, since these students are newly graduates, the organization could offer compensations for entry levels which are cost efficient. Further, newly graduates are expected to exude above average energy, drive and enthusiasm, in conjunction with innovative ideas that would assist in the professional growth and development of the organization. 2. Career Development Once hired, diverse personnel with an array of qualifications, skills, talents and competencies undergo career development through a series of progressive training depending on the promotions and performances of employees. The organization announced a mentoring and peer support program that aims to “to achieve that objective (of becoming quick and effective contributors to the organization) and to increase job satisfaction, self-esteem and self-reliance for the new employee” (ExxonMobil: Global Diversty, n.d., p. 5). As can be clearly viewed from ExxonMobil’s leadership development training, from the employees’ entry point, scheduled leadership trainings have been earmarked as follows: supervisor program (covers moving from an individual contributor to supervisory level), enterprise leadership program (focus on orienting one’s thrust from local to international perspectives), general leadership program (provides training on the development of leadership skills for functions and business units); advanced leadership program (acknowledges the need to expand leadership expertise on a global scale); and finally, the global leader forum (enhances the capability of leaders in terms of focusing on global strategies) (ExxonMobil: Global Diversity, n.d., p. 5). These progressive training programs would ensure that at every phase of the employees’ development, appropriate development of knowledge, skills, and abilities are honed to cater to increasing responsibilities and accountabities expected from higher positions. 3. Benefits and Incentives To ensure that ExxonMobil’s workforce continue to exhibit continued drive and Commitment to work towards the achievement of organizational goals, various benefits and employee incentive programs has been designed to motivate and enhance performance. From among the benefits given by ExxonMobil, the following are highlighted: (1) workplace flexibility which integrates flexible work arrangements (“Adaptable Work Place, Modified Work Week, Part-Time Regular, Extended Part-Time, and Adjustable Work Hours” (ExxonMobil: Global Diversity, n.d., p. 9); (2) time off with pay depending on situations and emergencies; (3) leave of absences for “health/dependent care issues, military service or other personal” (ExxonMobil: Global Diversity, n.d., p. 9); and (4) other enumerated programs such as “Vacation, Vacation Carryover, Vacation Advance and Holidays, Product Discount, Life Assistance Resources, Employee Health Advisory Program, Financial Fitness Program, Adoption Assistance, Educational Refund Program, Spousal Relocation Assistance, Matching Gifts Programs, and Volunteer Involvement Program” (ExxonMobil: Global Diversity, n.d., p. 9). All of these employee benefits indicate the acknowledgement of management to consider human resources as their most important asset and therefore, all policies and practices applied by the HRM are designed to ensure that this workforce is ultimately satisfied at working with the organization. Factors from Affecting HRM Practices and Policies After due recognition for the need to expound on the policies and practices that are enforced at ExxonMobil, one could therefore delve into the factors that affect and influence these policies. 1. Internal Factors: a. Leadership and Management The most crucial factor that influences HRM policies and practices in its internal environment is leadership or the composition, competence and philosophies of the management team. As indicated in the organization’s official website: “the discipline and commitment we apply in the execution of our business strategies have led to sustainable competitive advantages” (ExxonMobil: Our Management, n.d., par. 1). The composition of the management team defines the continued thrust to the mission, vision, values and goals that have been explicitly stipulated and have been the basis for the design of strategies and policies governing the operations of the organization. If there are changes in the composition of the management team, particularly of the Chairman and CEO, definitely, there would be marked and significant changes in the policies and procedures of the organization, depending on the interests, plans and goals of the new officer. Further, management’s effectiveness was seen as instrumental in affecting future performance of ExxonMobil in general. As revealed, management effectiveness impacts on areas such as: ability of management to address external factors and pursue current programs and projects; delve into research and development that pertains to current trends and practices affecting HRM; focus on workplace safety and identification, assessment and management of environmental risks; and the appropriate design and implementation for emergency preparedness and business continuity plans that involve and affect human resources. b. Financial Performance Another factor that influences and affects HRM policies and procedures is the status of financial performance. A quick view of the organization’s financial highlights and summary for the year ended 2010 revealed that they earned $30,460 million representing a hefty gain of 58% increase from $19,280 million earned in 2009 (ExxonMobil: Financial and Operating Review, 2010, p. 16). Further, a ranking of Fortune 500 top American companies ranked Exxon in the number 2 position (CNN Money, 2011) making them most profitable among US organizations. This factor has a significant impact in continuing with the HRM policies and practices, particularly in providing benefits and employee programs that aimed to develop, train, support and sustain both personal and professional growth of their personnel. 2. External Factors a. Economic Condition Aside from internal factors, the factors from the external environment definitely Impacts on the overall performance of ExxonMobil, including HRM policies and practices. For one, the economic condition of the country would influence HRM policies as they directly affect the financial performance and status of the organization. As revealed by ExxonMobil, “the demand for energy and petrochemicals correlates closely with general economic growth rates. The occurrence of recessions or other periods of low or negative economic growth will typically have a direct adverse impact on our results. Other factors that affect general economic conditions in the world or in a major region, such as changes in population growth rates or periods of civil unrest, also impact the demand for energy and petrochemicals” (ExxonMobil: Future Resuts, 2011, p. 1). These factors also affect the purchasing power of their employees and thereby would affect the level of productivity and performance if employees are significantly affected by economic conditions. As seen in other contemporary organizations, the worsening condition of the economy have led to cut employment by retrenching employees, freeze hiring, not providing for regular benefits and compensation, among others. b. Government and Political Factors Government and political factors influence HRM policies in terms of stipulating laws pertaining to employment and labor. For instance, the adherence to Equal Employment Opportunities Policy of ExxonMobil is consistent with the U.S. Department of Labor’s Equal Employment Opportunity laws that “prohibit specific types of job discrimination in certain workplaces” (U.S. Department of Labor, n.d., par. 1). Further, other governing labor laws pertaining to minimum wages and other provisions for benefits, occupational safety and other work-related employee and employer rights would affect HRM policies and practices. Any new enactments would necessitate the organization to abide and follow. c. Student Competencies in Universities As ExxonMobil source their new recruits primarily from universities and educational partners and alliances, the organization must monitor and review the consistency in the quality of new recruits provided by universities globally. In a paper written by Minot (2000), the exorbitant costs of higher education in the United States, for example, divide the students’ focus to incorporate the need to look for part-time employment to support themselves. This, coupled with proliferation of academic dishonesty produce graduates who lack the theoretical background to apply the knowledge, abilties and skills supposedly gained in the academic setting. In this regard, contemporary global organizations, like ExxonMobil, should look for alternative sources of potential candidates for employment to support their diverse global requirements. d. Current and future trends in HRM Finally, current and future trends inHRM would significantly affect and impact the organization’s HRM policies and practices; including those practiced and applied by competitors in the industry. The website on Business and Finance has published an article on “Current Trends in Human Resource Management” published in April 5, 2011 as focusing on the following major trends: leveraging technology, global marketplace, rising costs of benefits, flexible workplace, and demographics (Business and Finance, 2011). From among these trends, it is apparent that ExxonMobil has already proactively focused on flexible workplace and operating in a global marketplace. As to leveraging technology, obviously, with the need for immediate access and link to global markets, ExxonMobil has acknowledged that technology plays a critical and crucial role in their continued growth and development. The rising costs of benefits could easily be addressed due to the financial success that has been continuously reported. Finally, the issue on demographics, like the aging workforce, gender equality and diversity have already been accommodated in their HRM policies as stipulated within their diversity and inclusion advocacy. The success of ExxonMobil as proven from being ranked number 2 in Fortune 500’s top organizations have attested the effectiveness of HRM policies and procedure in driving their most important assets to perform, produce and conform to the needs, interests and aspirations of its various stakeholders and according to its defined mission, vision and guiding principles. Conclusion The report has thereby addressed and achieved its objective of explaining and illustrating how aspects of the external and organisational context impact upon human resource management policies and practices in ExxonMobil. By providing a brief organizational profile of ExxonMobil that highlights it as one of the largest and publicly traded global oil and gas corporation for more than 125 years now, the report has presented its HRM policies and practices in terms of identifying recruiting preferences, career development programs, as well as benefits and employee incentive programs. Further, the factors deemed crucial in influencing and impacting on their HRM policies and practices have been expounded and classified under internal factors (leadership and management, as well as financial performance) and external factors (economic condition, government and political factors, student competencies in universities, and current and future trends in HRM); and have been proven to significantly effect current and future policies and practices that would continually be enforced by the organization. With an ever changing global marketplace, the success of organizations would highly depend on their ability to adapt and adjust to the demands of the environment. As proven by ExxonMobil, an organization that has successfully survived for more than 125 years, by focusing on their greatest asset – the human resources, the organization has assumed a proactive stance in ensuring that this crucial resource would continue to perform to the best of their efforts with proper motivation, encouragemet and support from management. In return, this important human resource have manifested exemplary performance as they have been appropriately honed for the tasks they are supposed to undertake. Reference List Business and Finance. April 5, 2011. current Trends in Human Resource Management, [Online]. Available at: http://www.birsa.org/current-trends-in-human-resource management.html (accessed October 22, 2011). CNN Money. May 23, 2011. Fortune 500: Exxon Mobi, [Online]. Available at:. http://money.cnn.com/magazines/fortune/fortune500/2011/snapshots/387.htm (accessed October 21, 2011). ExxonMobil. 2010. 2010 Financial and Operating Review, [Online]. Available at: http://thomson.mobular.net/thomson/7/3184/4449/ (accessed October 21, 2011). —. n.d. ExxonMobil Global Websites, [Online]. Available at: http://www.exxonmobil.com/Corporate/Imports/globalwebsites/about_where_countries.a spx (accessed October 20, 2011). —. February 200. Factors Affecting Future Results, [Online]. Available at: http://phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9NTIxMjR8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1 (accessed October 22, 2011). —. n.d. Global Diversity, [Online]. Available at: http://www.exxonmobil.com/Corporate/Files/news_pub_diversity.pdf (accessed October 20, 2011). —. n.d Our Guiding Principles, [Online]. Available at: http://www.exxonmobil.com/Corporate/about_who_sbc.aspx (accessed October 20, 2011). —. n.d. Our History, [Online]. Available at: http://www.exxonmobil.com/Corporate/history/about_who_history.aspx (accessed October 20, 2011). —. n.d Our Management, [Online] Available at: http://www.exxonmobil.com/Corporate/about_who_mgmt.aspx (accessed October 21, 2011). —. 2006. Standards of Business Conduct, [Online] Available at: http://www.exxonmobil.com/Corporate/files/corporate/sbc.pdf (accessed October 21, 2011). Minot, Walter S. 2000. "Students Who Push Burgers." Lundsford, Andrea and John Ruszkies. The Presence of Others: Voices and Images that Call for Response. Boston: Bedford. U.S. Department of Labor. n.d. Equal Employment, [Online]. Available at: Opportunity.http://www.dol.gov/dol/topic/discrimination/index.htm (accessed October 21, 2011). Reflective Diary How the Report was Carried Out The initial challenge in starting with the report was choosing the appropriate organization that could reveal and contain enough comprehensive information on HRM policies and practices. By searching for the top organizations from Forture 500, one decided to write on ExxonMobil due to the availability of resources and the extent of information provided on HRM policies. After having decided on the organization, one thought of determining the appropriate sub-headings for the report. Of course prior to explaining how various factors could impact and affect HRM policies, one decided to write a brief overview or corporate profile on ExxonMobil. Then, the highlights of the HRM policies and practices needed to be outlined and explained. Finally, the factors were identified as internal and external factors that significantly affect the identified policies. As one wrote the report, one thought that the most relevant source is the organization’s official website. However, as references and citations were required to cite the ranking for the organization in terms of being included among the Top 500 Fortune organizations, and other external factors to affect HRM policies, one realized the need to cite the official labor website and other sources to validate current HRM trends. Personal Lessons The experience provided by writing the report has indeed realized that learning was enhanced and developed in the areas of understanding HRM theories, policies and practices as these are applied to actual organizational setting. One also realized that an extensive and comprehensive report necessitates searching for appropriate references from a wide range of sources. One was finally please, after every issue and concern has been addressed, that the report was completed in due time and adheres to the requirements stipulated. Read More