Training and Development Decision at Qatar Petroleum and ExxonMobil Petroleum Companies - Case Study Example

Training and Development Decision at Qatar Petroleum (Qatar) and ExxonMobil (US) Petroleum Companies Name: Course: Instructor: Institution: Date of Submission Training and Development Decision at Qatar Petroleum (Qatar) and ExxonMobil (US) Petroleum Companies Introduction Training and development or career progression and development are a human resource function that is concerned with bettering the performance of both individual and groups of employees in any organizational setting. Training and development encompasses three processes: education, training and development. Although these terms have always been considered synonymous, there are clear distinctions among them. Practitioners define training as an activity that is focused on and evaluated against the current job that an individual is currently holding. Education in general, will tend to focus on several jobs that an individual will do in future and potentiality that he will be evaluated against them. Development on the other hand, is a course of activities, which an individual in employment takes so that he undertakes future tasks. It is almost impossible to evaluate the quality of development before he starts undertaking them. In this regard, the study will explore comprehensively, the decision regarding the function of training and development in the two organizations that deal in Petroleum Industry, Qatar Petroleum (QP) (Qatar) and ExxonMobil (US). To be able to attain the above objective; it will preliminarily look at their brief backgrounds, which will be followed by literature review. The next section will form the major part of discussion whereby the conceptual explanation of the two companies will be undertaken. There will be a conclusion and recommendation part at the end to summarize the discussion and propose improvements for the Qatari Company, Qatar Petroleum. Backgrounds of the Two Companies Qatar Petroleum Abbreviated as QP, Qatar Petroleum is a Qatari company, which traces its history from the World War I and the fall of Ottoman Empire. At this period, the Qatar country had fallen in the British hands and consequently its onshore oil concession was awarded to the Anglo-Iranian Oil Co., in 1935. The obligations in the Red Line Agreement forced the company to transfer its rights to another associate company of the Iraq Petroleum Company by the name Petroleum Development (Qatar) Ltd. The petroleum Development Qatar Ltd later became the Qatar Petroleum co. (QPC). In 1940s, the company embarked on drilling the Dukhan No. 1, which yielded 5,000 barrels a day. However, the World War II delayed the production and therefore it had to make its first crude exportations in 1949. Currently, the company owns pipeline networks and is part of the grand Dolphin gas Projects, which is essential in connecting the Oman, Qatar and the United Arab Emirates gas networks in the Persian Gulf region. Moreover, it owns several subsidiaries such as the Qatar Fertilizer Co., Qatar Petrochemical Co. and the Qatar Chemical Co. (Qatar Petroleum, 2013a). Exxon Mobil Corporation This corporation was formed in 1999 by the merger of Exxon and Mobil companies. It is important to note that both the two companies were direct descendants of Standard Corporation Oil that existed as from 1870. Their reunion resulted in the biggest market merger in corporate history of the United States. In 2005, the company’s stock prices with grace from the skyrocketing oil prices increased to surpass those of the General Electric becoming the largest company in the world in terms of market capitalization. In 2008, it announced to phase out the direct retail market in distributing its gas across the United States. In 2010, the company began focusing on developing and producing unconventional energy resources. In 2012, it confirmed a deal that will see it producing and exploring energy reserves in Kurdistan part of Iraq. In 2013, there are news from CEO that Exxon Mobil, in collaboration with OAO Rosneft of Russia, will start assessing the quality and quantity of massive shale of oil in the West Siberia (ExxonMobil, 2013a). Literature Review Definitions The QAA (2009) defines training and development as an activity the company designs so that individuals become more effective by improving, refining or updating their skills and knowledge. Training and development is supposed to be a continuous process (Nathan & Shankar, 2011). This implies that all employees will keep abreast within their own areas of expertise by undertaking various development activities throughout their professional life (Deloitte, 2013). Their performance will therefore be reviewed to oversee their development direction and quality (Heathfield, 2013; Bartel, 2000; Boudarbat & Chernoff, 2009; Bradford, 2011).The QAA (2009) notes that there are specific programs that are designed to enhance specific skills or information through training courses, seminars, reading among others. The term development is associated with management and is used to imply long-term and durable change to an individual. In development, an individual is supposed to deal with circumstances that are not obvious. Therefore, development programs are undertaken to enhance managers in the issues of decision-making (Sharma, 2013). Aims of Training and development The main aims of training and development in any organization is to improve the standards of works performed according to clients’ need. There is also need of sharing ideas to ensure better work practice (IBM Training White Paper, 2008). Most training and development programs are destined for effective management and change implementation. Furthermore, training and development are destined to encourage team and group spirit. The employees will also understand better business practices of the organization in which they are working. Nevertheless, training and development increases job satisfaction and motivation for the company individuals (Jehanzeb & Bashir, 2013). Methods of Job Training and Development Training, as advanced by various sources may include using simulators. The simulators will help employees imitates the actual work situations. Hand on job training or apprenticeship, could involve employees working with more experienced peers. Many reports indicate that people learn more well while practicing the skills, rather than just listening to demonstrations. The other technique can be coaching or mentoring whereby employees receive a chance to be trained by an experienced professional. This takes place when an employee has some skills so that he can build on them. In this method, the trainee will get a chance to question the mentor and receive instant answers. Lectures that take classroom formats can also be improvised so that a huge amount of information can be disseminated to people. However, they have been said to be the poorest methods of teaching, as people get bored and there is no interaction between the trainer and the trainees. Lectures may take the form of people receiving the organization’s policy. There is also role-play, which obliges employees to act out issues that can occur at the workplace. The management games whereby people can simulate on the real life problems are very much useful in the workplace. Other methods are films and videos, outdoor training, case studies and planned reading. However, planned reading is only used as preparatory techniques before the main training event (Danziger & Dunkle, 2005; Vemic, 2007; Gibb, 2011). Development centre method focuses on viewing individuals perform various tasks so that they can be perfected. Internship occurs when students from colleges are placed in working environment to practice what they learnt. There is also computer based training in which learning can be enhanced through computer applications. Job rotation has been involving trainees being shifted from one job/task to another to enable the persons to understand the working totality of the organization. When an organization wants to prepare a new leader to take over from the one who is likely to retire, the method is called job shadowing. The last one is the vestibule training where individuals will practice tasks in outside environment that resembles the real job place. (Gibb, 2011; EPA, 2010). Strategy for Effective Training and Development For effective training strategy, the planners are supposed to meet the company management to determine the mission strategy and therefore the business strategies that need to be adopted. The business strategies, obviously, will include human resource functions in which training is incorporated. In this case, the employee training and development needs will be discussed. The training and development needs are supposed to be identified by comparing them with human resource needs. At this point, the human resource manager is supposed to discover the gap that is there so that strategies of training are tailored towards filling the gap. The human resource manager is then supposed to develop a training plan that can fill the gap. He will have to determine the training objectives of program, identifying employees that need to attend. The next stage will be reviewing the plan with management in order to obtain support from them so that he can implement it. At this instance, the planners are supposed to develop a clear schedule for implementation, identifying resources, facilities and training personnel. When the students start being in progress, one should monitor the progress at a reasonable time interval (Burley, 2013; Civil Service Training and Development Centre, 2011). Evaluating Success of Training and Development Program First, the human resource manager should ensure that effective evaluation strategies have been put in place. Feedback forms therefore should be prepared for individuals to complete after their training and development activities. The feedbacks should be followed at reasonable intervals to monitor the progress of the training program. From them, one can be offering suggestions based on evaluations about the areas that need to be improved. At the end, he should review all activities in training and developments to oversee benefits achieved and ponder at any training requirement for effective performance of the employees (Good Practice, 2013; Kirkpatrick, D.L. & Kirkpatrick, J.D., 2013; Ahmad, & ud Din, 2009). Benefits/ Results of Training and Development Program According to Dionisius (2008), Jehanzeb and Bashir (2013) and Aguinis and Kraiger (2009), although training can be costly to an organization, analysts note that it will be an investment to it as well. It helps people acquire technical skills and managers to have business managerial competencies that will see the organization succeeding. In this case, in general, employees will be in a position to provide customers with good services. It is also an important role to develop goods that are valuable in money terms. The skills created, will have an impact on adding value to the products (Holzer, 2013). The training and development will eliminate many costs that are associated with inferior technical skills. There will be better technical skills that will ensure better stock management and therefore higher sales and productivity. Nevertheless, by engaging employees in training, it ensures that they plan their career very well. Employees will be motivated to work more and achieve their life ambitions and it will help to create the organization’s future leaders (The Times 100, 2013). Comparative Analysis of the Two Companies in the Decision of Recruitment Training Reasons for the Decision ExxonMobil normally customizes on hiring locals so that to build a legacy of economic progress in areas that the company operates. In this case, to develop a globally competitive workforce and maximize employment opportunities on locals, the company must train and mentor nationals in their local areas of operations. This is to prepare them to take up both operational and leadership roles (ExxonMobil, 2013b). For QP, the company which normally operates in Qatar, it is the responsibility of the Qatar Petroleum Corporate Training Department to provide training and development requirements to all the employees of the company to meet their career progression and support the energy and industry sector in the country. In bid to obtain quality services, contribute to sustainable development, and enhance the process of qatarization, the company has offered various learning pathways that range from professional training, vocational education, technical, university placement and language competency especially in English (Qatar Petroleum, 2013b). Kinds of Training and Development Programs The ExxonMobil Corporation has prepared a globally acceptable curriculum that is customized to the local environments of their operations. This helps it to meet their long-term goals of competent employees who are needed both locally and worldwide. Employees in the construction section normally undergo maintenance and operations training. The course, which is offered for advanced skills in Nova Scotia in Canada, has had the first group completing it in 2011.Since the locals may not be very much well versed with Engineering and Technical job, the company has embarked on training them. The company nevertheless uses international assignments that enhance valuable expertise to employees (ExxonMobil, 2013b). For QP, the company has a Vocational Training and Learning Support program that caters for those who want to improve on their technical and vocational skills. The company also has a separate course for training employee in English to enhance their capability in career progression. There is a program put in place for sponsoring Qatari secondary school leavers wishing to take a career job. The most important has been training the learners in technical and clerical jobs. For development, professional programs have been offered mostly to enhance skills in Business, First Aid, and Technical aspects. Nevertheless, the company has a very elaborate Research and Development program in its own department, which was set in 2009 to execute the current businesses and search for new opportunities (Qatar Petroleum, 2013b). Methods of Training and Development At ExxonMobil, the newly hired employees are normally sent for medium period schooling program to train in Nova Scotia. After returning, there is an elaborate program for on-the-job training. Among them, include apprenticeship where those with no orientation in technical and engineering skills will be trained. There is also mentoring, on the job, where the trainees are required to learn with experienced personnel. Although there are regular appraisals and reviews where supervisors keep the track with every individual’s development, the management encourages each individuals to take ownership of his career by identifying his own needs and capabilities. Moreover, the company institutes job rotation for workers to get a good totality of the business. Nevertheless, there are International assignments designed to enhance valuable expertise to top executives (ExxonMobil, 2013b). At QP, the company has organized language classes for those wishing to learn English as second language. Other vocation training involve courses of clerical and technical skills, diploma/ degree courses in Engineering and technical jobs. The Qatari company seem well off as it offers direct scholarships for locals wishing pursue degree programs. Moreover, the organization is dedicated at ensuring that those in need of Business and Technical skills undergo a development course for them to be competent. It has an elaborate e- Learning whereby learners are provided with learning materials at their own pace. The company has also set a research and development program for searching and developing new knowledge. Nevertheless, it collaborates with other larger oil corporations like Shell to strengthen its professional learning and development. In this regard, its employees are destined to be learning at the Shell Open University (Shell Qatar, 2013; Qatar Petroleum, 2013b). Strategy for Effective Training and Development and its Evaluation For ExxonMobil, it is eminent that since the company hires mostly the locals, in developing countries, the needed skilled labor may lack. To achieve this objective the company has come up with a curriculum that really fits the local contents. It has ensured that the trainees continue to develop through various training and development arrangements. With the support from the management, there is mentor who will work with the novice, aiding him in his career progression. There is also a well laid out schedule of monitoring and evaluation of the novice’s progress, which is majorly done by supervisors or other line managers. The International assignments have also been improvised for the managers to gain more expertise. Nevertheless, the company allows one to choose his career progression path according to his interests and capabilities (ExxonMobil, 2013b). For QP, most of strategies are geared towards qatarization of jobs in Energy and Industry sector as a long-term objective under H.H. Sheikh Hamad Bin Khalifa Al-Thani. This is to achieve at least a 50% Qatari workforce. Therefore, the company is supposed to undertake the training and development programs as they suite their business objectives by establishing Training Centers that will see majorly natives being absorbed into and retained in the workforce. For those employees joining the company at a later stage of development will need to undergo a tailored development program. For resources, the company has set up its own classes and research centers where training and development can take place. There are also collaborations with both local and international institutions and other resourceful oil companies to enrich its human capital. Nevertheless, elaborate paths and sponsorships avenues are there to boost individual development right from High School (Qatar Petroleum, 2013c). Although there is an evaluation plan of the training and development program, its details are not yet openly elaborated (Qatar Petroleum, 2013b). Benefits/ Results of Training and Development Program At ExxonMobil, apart from one gaining the required skills, to take responsibilities confidently, learners normally have rotational assignments, which is interesting and motivating as one travels around the world. Many employees have realized that it helps one to climb his career ladder as his salary improves. Through learning too, one will be able to realize the overall nature of the business. In overall, the training and development program has enabled the company to overcome the obstacles of indentifying and attracting professionals in any country, since the locals will just be recruited to suite the positions. Nevertheless, training the locals aims at providing business links between the company and the locals (ExxonMobil, 2013b). For QP, the training is geared towards attaining the qatarization strategy. According to the study contacted by Al-Emadi and Marquardt (2007) reveals that there is positive relationship between employees’ commitment to the organization and training and development. Training has also enabled the company to execute the needs of the current business and discover new opportunities. Being state run, it has learning centers to boost support to the industry and energy sector in the country Conclusion and Recommendations for QP As already noted, training and development is a human resource function whose decision is concerned with bettering employees’ performance and commitment to the organization. Taking in mind that ExxonMobil is a big multinational company, it has devised a curriculum that seeks to incorporate the local environment of its operations. Major parts of its training are carried out in construction and technical fields where engineering skills are very much in need. On the other hand, for QP, the company, although may depend on other institutions’ curricula, has wider scope of training that ranges from business management and leadership, language and technical and Engineering jobs. Having its own Research and Development department, it should draft its own curriculum that is unformed to specifically suite its own strategic objectives rather than relying on drafts of curricula from other institutions. In means of training, QP seems more elaborate as it has its own premises and those from other learning partners such oil companies and universities. This is inspiring; although it needs to do, some job rotations and inter-subsidiary, assignments so that more expertise that is valuable and better commitment to the organization can be obtained. The QP Company needs to have a well elaborate plan for evaluating its own programs so that improvements on them can be established. Although both companies have considered training the locals (qatarization for QP), it is important that the training strategy is excellent to fill the gaps of experts from abroad and should not rise to the point of rampart discrimination. In this regard, if in the long-term they can begin producing highly qualified local expertise their training and development would be more beneficial. Therefore, apart from QP fulfilling its long-term strategy of qatarization, it would have improved performance due to superior and marketable skills and commitment to the organization due to higher level of job motivation. Reference Aguinis, H. & Kraiger, K. (2009).Benefits of Training and Development for Individuals and Teams, Organizations, and Society. Annual Review of Psychology, 60, pp.451-74. Ahmad, I. & ud Din,S. (2009).Evaluating Training and Development. Gomal Journal of Medical Sciences (7)2. 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