Industrial Arts Index: British Petroleum - Case Study Example

Industrial Arts Index: British Petroleum Executive Summary British Petroleum in London has been constantly changing its mode of business operations. The implications of labor turnover on the company’s profitability have attracted a great deal of attention from all other economies around the world. The level of professionalism and expertise demonstrated by the company’s employees has benefited the company a lot. The top management team has been attentive to the comprehensive approaches used to ensure qualified staff is available in the company (Schwartz 2006, p. 139). The company’s decision to adopt emerging superior methods of operations and recent consensus on climate change has enabled it to compete with other multinational corporations. The company has formed an action agenda which is aimed at reducing internal pollution of environment which has negative impacts on human health. The company acknowledges the impacts of green house gas emissions on the efficiency of its employees. This research paper focuses on the reasons behind adoption of the action strategies that are aimed at reducing emissions internally hence safeguarding the health of the employees. In addition, the paper attempts to explain how the British Petroleum company arrives at such decisions and the overall impacts on competitiveness in the global markets. The research was conducted using questionnaires, direct observations and interviews. The results obtained indicated that the company has successfully reduced labor turnover which has led to higher productivity (Great Britain Department of Education and Science 2001). Problem statement Increasing competition has posed a great deal of challenges to many companies in the global economy. Competition for human labor characterizes both domestic and international markets. British Petroleum has managed to attract and retain its employees over a long period of time. Recruitment, selection and maintenance of qualified employees have been reflected in the company. British Petroleum Company in London has approaches to staffing that have created a great deal of value. “How has the company devised its employee and other management strategies in order to reduce labor turnover?” (Hendrie 2004, p. 430). Research question What is the current level of labor turnover in British Petroleum? a. What are the impacts of high labor turnover on the production level of the company? b. What are the strategies used by the company in reducing labor turnover? c. What are the effects of greenhouse gas emissions on labor turnover? The changes in global competition necessitate companies to monitor the rate at which employees are coming into and going out of the company. The question on the level of labor turnover acts as the driver for the all research project. The company has been striving to reduce out flux of workers in order to maintain higher and quality production. In counterattacking the situation, the company has designed strategies to reduce the number of workers leaving the company. Research objectives The research study focuses on the labor turnover in British Petroleum industry. After this research project students should be able to identify some of the major approaches that companies can use in reducing labor turnover. Students should be able to identify the recommendable technologies that companies have adopted and implement them successfully. The study should enable students to explore more ways in which companies can attract and maintain employees. They should define essential training programs that employees should undergo in order to improve and widen their skills. Literature Review Early researches indicate that the company’s turnover had risen to high levels. It has adopted effective reward framework which has boosted morale of the employees. Employees do not wish to live due to proper rewards given to them. Reward framework comprises of four elements namely; aligning rewards to company’s performance, recognition of employees who have perform outstandingly, keeping things simple and being very competitive. The reward packages given to the employees are based on skills, knowledge and experience. On the other hand, variable rewards are linked to both short term and long term goals of the company. It should conform to the principle of equity in order to avoid discrimination (British Library RBUPC Office, 2009). According to Moir (2005), this London Company recruits the right people for the right jobs according to the job description. The recruited personnel are then provided with favorable working environment so as to enable them develop their talents and skills, and explore more opportunities in their career development. Research conducted indicated that labor turnover reduced from 11% in 2006 to 9% in 2007. This remarkable improvement is associated with the ability of the company to create favorable working environment. This is a considerably sustainable rate but the company is putting extra efforts to ensure that staff turnover decreases to the lowest rate possible. The competitive labor market calls for recruitment of people with qualified skills. Selection of qualified personnel is the most challenging aspect to many companies and this has led to high turnover. The company’s top management monitors the profile of the workforce so as to ensure that they meet the needs of the business in short and in the long run. It introduced Talent Acquisition System (TAS) which facilitated job posting and application by those whose qualifications are closely annexed to the stated needs of the company. This online recruitment has enabled the company to create employee value proposition. The company’s recruitment team aimed at capturing outstanding characteristics that make the company different from others. This covers both remuneration packages and intangible elements of the company. In addition, British Petroleum launched ‘myReward’ system in London where employees and those interested in joining the company access the details of the package. Significant improvement has been made since 2006 when the company’s expert developed strategic approach that targeted employees with enough experience. Skilled labor is very important for better production (Schwartz 2006, p. 140). Hom and Griffeth (1995, p. 60) pointed out that the company is fundamentally changing the way of doing business as evident by the groundbreaking speech of the CEO, John Browne, in 1997. The acceptance that the company had contributed to climatic change and successful implementation of the strategies aimed at reducing further pollution earned the company a great deal of respect. It explicitly took some responsibility to ensure that it does not affect the environment within the surrounding society at the expense of production. It established close-loop connection between production and earth’s natural resources. Through the efforts of the CEO, the company has continually followed relevant actions that resulted into meeting the promises of the speeches. The company used inevitable environmental pressures as a doorway to new business ventures in the 21st century. In conducting research, I interviewed the present personnel manager and what came out clearly is that the company has been attracting more employees. The willingness of the company to establish strategies aimed at preventing environmental degradation created a positive image (Wilson, 2005). Cummings and Worley (2001, p. 70) noted that the establishment of Association and Collective Bargaining by top management led to significant changes in the performance and productivity of the workers. Workers ire permitted to join groups and associations without any restrictions. They ire allowed to bargain collectively for their wage pay. Employees are encouraged to work in good faith and responsibly with minimal supervision. Employees are required to choose bodies that truly represent their needs within the legal framework. The company strives to ensure that respect for human dignity and human rights are preserved at all times. Oppression of employees lowers their morale and some may get scared. Furthermore, the company’s operations are carried out in conjunction with ethical considerations and a proper code of conduct. The company has been praised for fighting against child labor. The CEO of the company argued that child labor has negative long term consequences on business operations as it will loose respect and dignities upon realization by the public that such practices are done. Under the code of conduct stipulated in the company’s rule, the company prohibits child labor. It does not entertain any blanket operation where child labor is used. The company management cares for the welfare of the employees as evidenced by the fact employees do not work when they are not feeling ill. This will otherwise be going against human rights and dignity. The company’s proactive measures to reduce green houses gases emission that affected global climate and other companies’ operations have earned good reputation. The company’s Group Chief Executive, John Browne emphasized that the company should take proactive position in reducing such emissions across its worldwide operations. He acknowledged that the company had contributed to pollution of the environment through green house gases. In this speech at Stanford University, Browne announced a strategy for reducing future occurrence of such pollution. During his second address in Berlin, the company CEO built upon this strategy. He hypothesized more detailed policy options which would lead to world cooperation to reduce pollution of the environment through emission of greenhouse gases. The options that he proposed included energy taxes, carbon emissions, trading and join implementation of laid down plans of reducing pollution of the environment. In addition, the Company’s CEO stressed on the benefits that companies would get upon development of greenhouse gas reduction strategies. Browne advocated for the joint cooperation of different companies as part of the proactive measures towards eradicating pollution of the environment. One of the slogans used by the company is ‘No margin for Error’ which implies that the company strives at all times to ensure that it avoids situations that might create harm to the employees. The company has emphasized safety of employees during business operations. The management emphasizes the importance of safety of employees as seen in posters on the walls which carry information such as ‘Take 5. Remember, safety is no accident”. In Sunbury, branch of the company, the topmost agenda is safety as commented by the branch manger, Jeremy Bamber that the company had policies aimed at reducing occurrence of accidents within the employees’ working environment Bamber announced that the company’s construction processes would be undertaken with much more rigorous safety standards as adopted by the whole company as part of the overall strategies. The strategy has been working in the last five years of redevelopment. Notably, in both the parent company and its branches, workers have not experienced any injuries or major accidents during their course of work due to safety measures adopted. Furthermore, the top management stress on the importance of good housekeeping as the major component in achieving high safety standards in the company. It designed accident diagrams in the shape of a triangle, and this explained the importance of reducing minor accidents as a way of eliminating major hazards that might hinder success of the company. Workers are required to be cautious and be responsible so as to reduce chances of occurrence of major accidents (Todor & Dalton 2006, p. 220). Daft (2003, p. 230) argued that transparency and accountability are very essential for growth and development of a company. It promotes trust among employees. The company is accredited for its corporate accountability which is reflected in its operations. This aspect was noted when the company’s top management publicized budgetary policies for all financial years. In May 2008, the company informed all the stakeholders about the $423 million that was to be used to settle water lawsuits brought by several public water suppliers. The company discourages manipulation of financial resources by the top management for their own financial gains. Rudimentary politics with intentions of interfering with company finances is highly discouraged. British Petroleum has been honorable because of the aspect of transparency and it strives to maintain it for future prosperity. In analyzing the principles behind these practices, British Petroleum Company has synthesized recurring observations into core principles of operation which have promoted transparency and accountability. The company is working harmoniously with the surrounding communities. This principle is very fundamental for the success of the company since it will be able to built trust and earn a good reputation hence attracting more labor force. Employees who have worked in the company do not wish leave but remain as part of the prospective team. This move instills trust and confidence amongst company’s employees hence the company managed to attract more workers (Gordon & DiTomaso 1999, p. 790) The company has worked very ill with the government and the political class. This enabled it mitigate negative impacts through political and economic leverage. It consistently complies with government regulations which boost the credibility for the company to access financial loans from government agencies. The company has managed to improve the skills and promote knowledge development among the employees through research and development and educational programs. Management team focuses so much on management systems which uphold effectiveness and efficiency hence eradication of dishonesty deeds by some of the top executives (De Bono 1999, p.57). Methodological Approach This is a qualitative research hence I used employee data from British Petroleum Company in London, covering the period of 2006-2008. Information concerning management strategies used by the company and literature regarding variables that affect employee commitment to achieving objectives and goals were also used to accomplish the purpose of the research. This was done by using econometric methods such as random effects, fixed effects and company’s variables. Additionally, consultation with qualified research experts provided an in-depth understanding of labor turnover in the company. From these sources, effective strategies and other effective protocols for reduction of high labor turnover in the company was developed (CIPD 2004). Interviews, direct observations and questionnaires are the most appropriate data collection methods used when studying situations in a company. The researcher is able to get diverse information about a company’s management and how it works to achieve its objectives. These research methods are very valuable to any research work since one is able to collect first hand information which is not tainted in any way. I found that questionnaires were much appreciated by many respondents and participants during my research project. This is because junior employees have no fear of victimization since the management cannot tell who wrote what. Reflections Resources are the basis for any research study as I experienced in the field. Field study calls for substantial resources which might not be available. This posed a lot of challenges but I managed to collect up-to-date data. I used substantial amount of resources during the initial stages of the study. I had relevant but not enough materials for the project which I utilized and managed to collect concrete information. Research study requires that the researcher should be well conversant with the environment within which the study will be carried out. The process calls for patience and persistence because one has to encounter numerous challenges. Hostile environment and poor respondents are some of the other major difficulties I faced in the field. Time Scale and Resources As I alluded above, I consumed so much time and substantial resources during the research study. I did the study over a span of one week. The table below outlines the days I spent, the duties I did on particular day and the resources I used throughout the research process (Hom & Griffeth 1995, p.47). DAY Daily Duties Resources used MONDAY 5th Oct, 2009 I assembled all the required materials. I finalized on the questionnaires. Some of members revisited the company prior to the actual day. They ensured that the respondents ire ready for the process. I spent $200 on questionnaires, transport to and from the company TUESDAY 6th Oct, 2009 I visited the company. It was late but it managed to interact with senior officials of the company. I introduced myself to the company staff. I explained the reason for paying a visit to the company. I was privileged to talk to the CEO of the company. $400 on food and sleepover IDNESDAY 7th Oct, 2009 I began my work very early in the morning. I ire allowed to visit production departments. I observed employees while working and I noted good aspects of employee commitment. I interacted with employees of different levels who showed a lot of concern in my research. I used $400 on food and sleepover THURSDAY 8th Oct, 2009 The Company’s president shared a light moment with me. I interviewed him to find out the strategies that have been put forward by the company towards reducing larbor turnover. I also managed to talk to Bamber, the branch manger. $ 500 on food and sleepover FRIDAY 9th Oct, 2009 I talked with several employees. I gave questionnaires to seven employees who answered the questions with ease. $ 600 on food and sleepover SATURDAY 10th Oct, 2009 I visited all other departments and collected relevant data pertaining to overall strategies used by the company to attract and retain their customers. $ 450 on food and sleepover Monday 12th Oct, 2009 It was the last day of the research project. I cleared with all the departments and came back. $ 600 on lunch and transport The research process was very successful only that I did not have enough resources. I utilized the little I had and I managed to accomplish my field research. Results, analysis and discussion Recommendations There were numerous findings after the field research. The questionnaires, interviews and direct observations I conducted reflected the true information about the company’s operations. The company plans to adopt financial incentives as motivating factor to the employees. Financial incentives are used to promote safety at the working place. From the interviews with the company’s CEO, employees are encouraged to wear protective devices or protective clothing during business operations. The company appreciates the efforts of all the employees and regards them as precious to the company. The CEO confirms this and he further argued that the rewards framework for the employees is exemplary. Responsible management, which acts as the role model to the workers, is the basis of ever building corporate accountability and transparency (Luggiero 2003, p. 20) It is important that the company adopts better promotional strategies and policies. Employees should be rewarded according to their abilities, skills, knowledge and productivity. Hardworking employees should not go unnoticed as this will create negative perceptions about the company to the outside world. The company should establish intensive educational training programs. Employees should be educated concerning various matters after at least three months. These programs improve skills which lead to higher productivity. The skills acquired by employees through training programs can be used in other disciplines. In addition, the company should adopt advanced technologies which enable workers to increase their productivity without using much energy. Employees should be given time to relax and to visit their friends and relatives. They should not be forced to work at all times (Denison 1990, p. 280). References British Library RBUPC Office, 2009, Research in British universities, polytechnics and colleges, USA, Michigan University Press, 2(1), pp. 20-60. Moir, C 2005, Distribution, Reviews of United Kingdom statistical sources, 29(3), pp. 23-76. Wilson, H 2005, Industrial arts index, Michigan University Press, USA, p. 132-145. Great Britain department of education and science, (2001), Michigan University Press, USA, pp. 142-176. Schwartz, N 2006, Can BP bounce back? Michigan University Press, USA, p. 120-149. CIPD 2004, "Employee turnover and retention", available at: www.cipd.co.uk/subjects/hrpract/turnover/empturnretent.htm?IsSrchRes = 1 Cummings, T & Worley, G 2001, Organisation development and change, South-Istern College Publishers, USA, pp. 45-89. Daft, L 2003, Management, 6th ed., Thompson South-Istern, Mason, pp.12-19. Todor, W & Dalton, D 2006, Turnover turned over: An expanded and positive perspective. Academy of management review, 6(2), pp. 220-35. De Bono, E 1999, Simplicity, Penguin Publishers, London, pp. 12-78. Denison, D 1990, Corporate culture and organisational effectiveness. Academy of management journal, 47(2), pp. 277-86. Glebbeek, A & Bax, H 2004, "Is high employee turnover really harmful? An empirical test using company records", Journal of management, 75(5), pp. 23-45. Gordon, G & DiTomaso, N 1999, "Predicting corporate performance from organisational culture", Journal of Management Studies, 29(.6) pp. 783-98. Greenberg, J (2001), Employee theft as a reaction to underpayment inequity: The hidden of pay cuts. Journal of Applied Psychology, 23(4), pp. 560-68. Hendrie, J 2004, "A review of a multiple retailer's labor turnover", IJRDM, 32(9), pp. 434-41. Hom, P & Griffeth, W 1995, Employee turnover, South Istern College Publishers, USA, pp. 43-76. Luggiero, G 2003. "Happy employees equal happy patients", AHA News, 39(17), pp. 6-23. Read More