Managing Human Resource Services and Organizational Change - Upstream Oil and Gas Industry - Case Study Example

Name : xxxxxxxxxxx Institution : xxxxxxxxxxx Tutor : xxxxxxxxxxx Title : Manage Human Resource Services and Organizational Change Course : xxxxxxxxxxx @2009 Manage Human Resource Services and Organizational Change Assessment Introduction The organization is Upstream Oil and Gas Industry. The company is situated at United Kingdom and was established in 1920’s. During the first five initial years, the organization was weak in terms of incentives to innovate. There has been increasing wholesale oil and gas costs because this fuel bill has been rising continuously. This has led to upstream gas and oil industry into making a lot of profits. The reason as to why this organization needs a change is because it has gone through two diverse technological regimes from the time it became international in 1920’s. Otherwise, from 1970’s onwards the organization faced a lot of challenges because of the newly invented technical challenges. This made the organization to undergo some technological revolution. The enormous pressure on hydrocarbon prices because of collapse of the costs of the oil is a further reason as to why the organization needs a change (Roger 2001). Recently, the organization has been facing severe completion from the upcoming oil and gas industries. This necessitates the company to undergo some major changes which will keep it at par with the newly formed companies. Moreover, there are a lot emerging technologies that the company has not yet instilled and this is what is making the new companies in the market to outdo it. Therefore, it is necessary to instill these innovated technologies. For example advertising of its products online is a major thing that the company ought to look into. Also the employees ought to have attained a degree level before being considered for the employment within the company. This will make that the company will not have to waste a lot of its resources and funds in training the less skilled workers (Spanyi 2003). To carry out these technological acceleration makes the organization to necessitate a lot structural changes in the affiliation between international oil and gas companies when comes to raising the tendency of cooperation, more objective partnership and a more careful choice of partners. The pragmatic effects are supported by two corresponding theories of inter organizational cooperation. This means that a static theory in terms of resources allocation for the hi-tech stillness period and a forceful one that is concerned with the development of the resources for the technological uprising period (Martyn 2005). Global completion, the continuous changing technology and the raised consumer’s wants are some of the factors that drive the need for change within the organization. Incase the se changes would be instilled, they would help the raise the loyalty of its customers and retain them as well as improving the agility of the organization, decreasing the expenses while at the same time gaining competence and drive of innovation. Change management requires lining up with the organization’s planned direction. Therefore, the change management ought to incorporate tools which will assist in driving the labor force and culture in the wanted direction of the organization. In order to instill and implement the changes, they will come forward from a number of sources; this includes the revolution efforts, amalgamations and acquisitions. Obviously, incase the organization instills these changes; it is likely to benefit in several ways. The first benefits would be that the change serves as motivators and assessment of organizations progress since these benefits are noted before implementation and thus helps in alignment of existing resources within the organization. At the same note it ensures organizational effectiveness and efficiency is maintained or even improved by acknowledging the concerns of staff and thereby increasing staff performance when they are incorporated into the change process. There is also reduced resistance to change since the staff understands the whole lot. It also creates an opportunity for the development of "best practices", leadership development, and team development when staff is integrated into the change as they own it since they feel part and parcel of the whole process. As a result there is increased customer service and effective service to clients from confident and knowledgeable employees hence customer satisfaction. Due to the fact that it is planned before implementation, the possibility of unsuccessful change is reduced, reduces time for change implementation and allows the organization to assess the overall impact of a change. Still, change can be implemented without negatively affecting the daily running of business ensuring smooth and normal business operation (Paul 2007). The risks associated with change and implementations include; Fear of venturing into the unknown. Developing the change calls for a lot of faith:  one needs to risk with the anticipation that things will look up. Be sure to elaborate the need for the process It is also humane to feel inadequate, incompetent for change. The staff should be made to understand that they will be armed well even if it calls learning of new skills. There is also the idea that people feel emotionally connected to other people who are identified with the old way (Smith 2003). Good negotiation when change starts can hinder a lot of resistance. There is also stigma associated with reformers whereby they are seen as people with hidden agenda like craving for power and other personal interests. Be open enough to communicate need and motive for change Also be sober incase of accusation When it comes to change ,people feel as though they do not have role models. Changing people’s objections from the “It can’t be done!” variety to the “How can we get it done?” category can solve this issue. Change brings a scenario whereby people feel overloaded and overwhelmed by the change demands at hand. This can be overcome through motivation, praise and being patience enough. Address it, admitting that change has its negative sides, but the benefits are larger. Sometimes people may resist change due to genuine reasons. Listen to them and develop a way of going around the shortcomings. Some staff may end up losing their job. The colleagues should be psychologically prepared in advance to make easier for them to handle that. It also calls for more resources. Therefore there is need to budget wisely. For change to take motion it needs to be properly implemented. This calls for a commitment to change. Step 1 Understand how people react to change. Change requires new ways of approach or a new course to follow, loss of predictability and habits. People are usually happy with familiarity even when it is negative. These factors contribute to resistance against change. Foremost, allow the people to understand the change, choose to take part in the change, find out new behaviors and expertise and get reactions and support. Most importantly, give the employees enough time to contemplate about the change and decide if the change is important. Step 2 Influence the participation of the chief stakeholders and opinion leaders. One needs at least to have some people who are for the change, for others to emulate them. Recruit natural leaders whose opinions greatly valued to take charge of implementing the change. Invite key employees to meetings to discuss ideas for change and get ready managers with what to enquire and picture to portray. Step 3 Communicate the plan repeatedly. It helps the recipients time to take in, digest ponder and assimilate the change thus communication is a crucial piece in managing change successfully. This helps them ask any probing question staff could be having and to be answered in time (Keith 2005). Step 4 Monitor the change and seek feedback. Follow the proceeding of the change for the employees to feel they are progressing and get encouraged. Seek feedback from the participants and address them accordingly. Step 5 Create a culture of change. The employees should be helped to understand that change is the norm of life and sometimes inevitable; what worked yesterday may not work today (Jean 2008). Ways to help institutionalize change Communicating strong, documented evidence linking performance improvement to the change. This will give weight to what one is putting across. Then create a conducive environment whereby staff can air out their views without feeling threatened. Incase of any positive gesture noted ensure it is rewarded. Commend the culture developing the change; demonstrate that the culture and the change do match. Moreover, the leaders ought to mentor and direct the future leaders regarding the importance of the change, more so the change that is about to be implemented. Again another way to encourage the change is to promise the employees supporting the change of promotion since the change will benefit the whole organization at large. The employees who are not for the change should not be promoted once that change is implemented (Jay 2005). Developing the change In order to develop the change, it will call for employees to develop strategies and action approaches. It entails engaged employees to be focused and aligned on executing the changes against the achievement plans. The administrators and heads in the organization ought to understand their roles and equip their employees with the required principles and tools and the necessary results in order to achieve the required results (Steven 2003). For the change to be achieved, the employees obviously are required to work extra hard. Therefore, an increased pay to the employees for performance culture is likely to raise employee’s performance potential. This is likely to raise their morale, instigate their loyalty and in due course achieve the desired change results. Again the organizational leaders ought to ensure that the employees have internalized the business’ foundation competencies and principles. The company should also develop a change that is not likely to have a negative impact on the customers since they are the main catalyst of implementing the change; through research ought to be done to ensure that the customers like the anticipated change (James 2006). Again, any change within a company requires proper planning and sufficient funds. The company should set apart the adequate money in order to instill the change. For the newly innovated technologies, the companies should be willing to set apart enough money to support the new technology. The managers within the company should ensure that the staff hired to install the new technology have the required skills in order ensure a successful implementation of the change. Before implementing the change it is also necessary to ensure that all the employees are conversant with the anticipated change. Incase some of them are not it is necessary to have them trained on how to handle the upcoming technology (Jay 2005). The change will be evaluated by a certified firm that carries out such evaluations. This is to make sure that the change is necessary and it is likely to be a success and not go as planned. Such companies include Price Water House Coopers. Still, the change could be evaluated through the employees to see whether they are likely to support the change. This is because in the long run the success of the changes depends on the companies’ employees. If they are not for the change, it is necessary to foremost convince them on the significance of the change. Once they support the change the company can go ahead and execute the change. Finally, it is necessary to confirm whether the change is likely to be of importance to the customers and the company itself. If the change is to drain the company of its finances, then the change is not a necessity. The negatives of the change and the positives should be evaluated. If the positives outdo the negatives, then the change is overly important to the organization (Terry 2001). Strategies on human resources services delivery The strategies for delivery of human resources include the human resource administration service presenting all its findings to the chief who is in control of human resource department. The chief in turn is involved in supervising the activities of the sections dealing with the recruitment of each and every employee within the company, administration and supporting of the HR system. The chief also is involved with the training and progress of the organization’s employees (Smart 2008). The strategic plan consists of doing through analysis of the new launched technology, ideas and the current company’s products which are gas and oil. The level of the market of the gas and oil from Upstream Oil and Gas Industry is a bit high and these products are really wanted allover the world. Otherwise there are other competitors which include Shell Company. The HR department needs to build up a system for regulating their rates in terms of the cost of gas and oil since these are market overriding and competitive products. Moreover, the HR ought to come up with a method which will look at the work share. The work share ought not to surpass the UK company requirements and apart from in definite circumstances as specified in the UK business Act. Finally, the Hr department needs to set up policies and methods by December 2009 for the market testing of company’s experimental products; launch a process for discovering customers’ business concerns; and set up measures for the suitable management of market testing. Human resource necessities are training of the staff members of the newly launched technology within the company. This will cost the company around $ 2 million since the trainers will be hired from overseas. The HR should review and evaluate their production system to move their products between market- leading and competitive products. It also needs to ensure that the products are categorized to enable the customers to purchase the products at the desired quantity according to the much the customer needs and the much the client has. Human resources services delivery management The delivery of human resource services is managed through planning, organization, supervision of all activities by a team of six professional and twenty general staff within the human resource department. The six professions are involved with the developing and supervising the staff members under them. They also supervise the staff wellbeing make out the necessary programs for employees in order to improve their skills. This ensures that there is successful and efficient delivery of the services in order to make sure that there is productivity of the employees. This is also to ensure that the services delivered are of high quality. The company’s employees are all qualified since they are employed on merit. The products pass through all the required procedures hence they meet the required specifications. However, a team from government’s environment department should visit the company to ensure the company does not pollute the environment in any way. Again, the UK Bureau of Standards should visit the company’s plant to ensure the methodologies are followed to the letter and the products are not risky to human. Specifically, the packaging should be analyzed to ensure it is safe. The company’s employees need to undergo training concerning fire and first aid handling. The training should be carried out by qualified personnel. This is because the employees need to know how to handle the emergency cases. All the company’s’ products ought to meet all the specifications. The products that finally reach consumers should not be faulty in any way. The HR department had not assigned anyone the duty of inducting the new employees. This made the newly employed workers to be a bit confused and non effective in their operations since no one was available to guide them. The HR team ought to select a team of five people who would be involved with induction of the new employees. Moreover, HR should avail train everyone who is going to be involved with induction and ensure that induction procedures are observed across the organization. Evaluation of human resources service delivery New human resources policies should be developed. This is because with the current changes within the company the company will obviously need a new management system. This will be aggravated by the fact that most employees are not comfortable with the current human resource department. To them, most of the workers within the human resource department are biased and some times they offer promotions to undeserving employees. Thus to encourage the employees and motivate them into embracing the upcoming changes, it is thus necessary to carry out some reshuffling within the department. Again, the department has very few employees and that could be one reason the department is not very efficient in delivering their services. There should be professionalism within all the employees and this is to ensure that the human resource department is efficient with its services. With this, the department will be in a position to identify client’s requirements and have the suitable solutions in addition establishing and sustaining relationships with outside associates and other contacts (Spanyi 2003). According to the clients, they were fully satisfied with the products apart from that they would prefer if the gas were packaged with more 6kg packages to enable the low income customers to afford. The satisfaction of the clients with Upstream Oil and Gas Industry is one factor that has determined the continuous success of the company. Clients consider efficient transportation, safe packaging and their product providers as being most vital in deciding their satisfaction levels. Managing integration of business ethics in human resources practices Within the human resource department, there ought to have a delegated flexible authority pertaining the staff regulations. This could be done through making decisions on elucidation of staff rules and regulations. Again, all applications should always be granted within the delegated authority. The behavior within the human resource department is a bit unethical since the employees complain that the department is a bit biased. Otherwise the code of conduct is well observed within the department (James 2006). Policies, methods, regulations, approaches and strategies guide all aspects of the Upstream Oil and Gas Industry operation under the main areas of production, employee recruitment, administration, advertisements, environment and governance. The company has met all the government requirements; this is because all the rules laid by the Company Acts are fully observed. The code of conduct is fully observed since the employees are supposed to adhere to the company’s code. The employees are always punctual and always wear protective clothes while working. Also the managers are not entitled to dismissing the employees without any suitable reason. On the other hand, the employees have to give a notice of three months prior to their resigning Bibliography Steven, M., 2003, Economics: Principles in action. Upper Saddle River, New Jersey. Roger, B., 2001, Business Process Management: Profiting From Process, Prentice Hall, Chicago. James, F., 2006, Business Process Management Systems, Harper Macmillan, New York. Jay, R., 2005, Designing the Customer-Centric Organization: A Guide to Strategy, Structure and Process, Belknap Press of Harvard University, London. Jean, G., 2008, The complete guide to Business Process Management, Felix Alcan, Paris. Paul, H., 2007, Business Process Change: A Guide for Business Managers and BPM and Six Sigma Professionals, Sage, London. Keith, H., 2005, Human Interactions: The Heart and Soul of Business Process Management, , Free Press, New York. John, J., 2008, Business Process Management: Practical Guidelines to Successful Implementations, Free Press, New York. Martyn, O., 2005, Business Process Management: A Rigorous Approach, T. Fisher Unwin, London. Terry, S., 2001, Customer Expectation Management: Success without Exception, Macmillan, London. Smith, P., 2003, Business Process Management: The Third Wave, Louisiana State University Press, Baton Rouge. Spanyi, A., 2003, Business Process Management Is a Team Sport: Play It to Win, Stanford University Press, New Jersey. Smart, P., 2008, Understanding Business Process Management: implications for theory and practice, Sage, California. Read More