Abu Dhabi Oil Company Human Resource Issues - Case Study Example

HR Report Name: Tutor: Course: Date: Executive Summary Abu Dhabi Oil Company (Japan) has invested in effective planning supervision and favorable remuneration for its employees. They emphasize on strong safety culture and a commitment to drive Health, Safety and Environmental performance of the company. The firm knows that poor work practices and unfavorable work environment is the reason behind high staff turnover. The employees may have postponed the program with the hope of meeting overtime targets. The company could also delay programs owing to finances and limited human resource personnel. Depending on the department, sales and marketing agents, quality checkers, customer service staff among others is recruited based on qualifications on their work roles. Abu Dhabi Oil Company have utilized various means of communication like e-mails, websites and telephone to ensure it communicates to all employees in a clear and understandable manner. Having multi-cultural workforce ensures inculcation of proper work ethics and a culture oriented towards results. The idea of HR forecasting is important in strategic planning through recruiting and retention of talent for greater productivity, innovativeness and great performance. Table of Contents Table of Contents 2 1.0 About the Company 3 2.0 Turnover and Absenteeism 3 2.1 Human Resource Issues 4 2.1.1 Recruiting and training for employees 4 3.0 Forecasting HR needs 8 4. 0 Recommendations 8 Recruitment and Training 8 Timely attendance of training courses 9 Hiring the right personnel 9 Communication among employees 9 Workplace Diversity 10 References 11 International Personnel Management Association, (2002). Workforce Planning Resource Guide for Private Sector. Journal of Human Resource. New York. 11 Nestor-Harper M. (2010). How to Forecast Future HR Needs. Demand Media. 11 1.0 About the Company Name: Abu Dhabi Oil Company Ltd. Japan - ADOC Address: Abu Dhabi Oil Company Limited (Japan) Building, Zayed Street 1, Khalidiya Area 630 UAE Fax: +971 2 6661327 Telephone: +971 2 6661100 Key Persons: P. Yashim, The General Manager Web: www.adocauh.cts-co.net  Sector: Oil and Gas Services and Product: Chemicals, Drilling Tools, Mud Services, Oilfield, Drill Fluids Ownership Type: Foreign Country: UAE 2.0 Turnover and Absenteeism The employee turnover in Abu Dhabi Oil Company remains high and is currently at 10%. The absenteeism rate is low compared to Caltex and Shell BP. The rationale for determining the high turnover rate is through calculation of the total number of at the beginning of a quarter and at the end. The result is divided by two giving the average number of staff within a similar period expressed as a percentage (Walker, 2000). Absenteeism rates are determined through work registers taken at the point the employee starts work and ends after the end of working hours. The company has been able to address these issues through implementation of training programs that offers high and effective training opportunities. Better procedures, policies and management systems should meet staff expectations at all categories in the organization. 2.1 Human Resource Issues 2.1.1 Recruiting and training for employees The firm understands that employees need to be recruited, selected and trained depending on their level of experiences, skills and qualifications. A great number of contractor personnel appear in the manufacturing sites during turnarounds and construction activities. The common training is on Health, Safety and Environmental (HSE) performance which involves a lot of contracting, pre-assessment and selection. Recruitment to various departments is done based on qualification (Schlumberger, 2013). Various skills are also required to bring about a strong performance team. The Human Resource department is responsible to attracting this expertise especially those who have great ambition in the Oil and Gas sector. A strong safety culture has been implemented to ensure employees recruitment achieve their goals in the company. The trainings may not meet all the needs of all employees but it brings the goals of the firm closer to that of employees (Walker, 2000). The company has enrolled some of its employees in the Petroleum Training Program at the Petroleum Institute in Abu Dhabi to obtain more information and knowledge on Oil and Gas extraction, refinery and sales. 2.1.2 Late attendance of training courses This is not a serious challenge but it somehow affects the enrollment and timely absorption of training courses. The company considers the level of human resource personnel at any one time available for work in progress (International Personnel Management Association, 2002). The chance of employees to attend the training program that is staggered for not more than three days but spread at various times within the year is based on resource gaps. Some employees could be chosen to attend the training program on various work related issues depending on the level of work left and the capacity of those left to carry on the work. Lateness to attending training programs or failing to attend at all is an indication that employees do not want to keep time or are not committed to continuous learning. There could be a number of reasons why employees at Abu Dhabi Oil Company at times attend programs when they are late. The Petroleum Engineering works are very consuming and rigorous requiring a lot of manpower (Walker, 2000). The company may not have steady and competent workforce to replace those going on training. Late attendance to training courses delays work batching and transformation into newer forms of technology and techniques. Late attendance could be pegged on employee laxity or company’s priorities that have changed. 2.1.3 Selecting the right personnel Selection, recruitment, hiring and training are human resource issues that are very critical. A company can acquire the right personnel that can complement a strong performance team through open vacancies and selecting depending on the required skills, experience and qualifications. The contractor in petroleum products are often faced with hiring challenges since many employees come from different backgrounds with varying levels of experience (Walker, 2000). Abu Dhabi recognizes the importance of hiring needs based on equality, skills and experience. The hiring process is very open and fair hence attracting talent across the globe. The HR manager is based in Abu Dhabi and considers a sizeable proportion of employees from within the region. Employees who have engineering background in petroleum are best suited for this job. There are situations where prejudices abound and this requires moderation. Employees who are not fit to work in a given portfolio should not be hired. The company considers that output of its work force with concern hence their credentials are essential. Besides, achieving the required teamwork is based on recruiting a highly capable people (Walker, 2000). 2.1.4 Poor communication among employees Employees receive instructions and information through a communication system that has a capability of response and feedback. The common channels of communication are through memos, e-mails, posters, letters mobile phone calls. Depending on the sensitivity of the matter at hand, each communication channels suits its conditions. For instance, inter-departmental communication can be done easily using e-mails while letters can be used to communicate major developments, employee training, pay increments and performance plans (Walker, 2000). Department and employees in general may fail to decipher information due to breakdown or distortion. Communicating company goals and objectives should be seen in everyday actions and culture that is desired to attain success. Abu Dhabi Oil Company have utilized various means of communication like e-mails, websites and telephone to ensure it communicates to all employees in a clear and understandable manner. Poor communication is a recipe for chaos as employees work on methods and systems that do not conform to the practices of the company (Standing, 2007). For instance, the company can communicate a plan to change the drilling system but fails to offer guidelines to employees on how to conduct the new procedures. The company will have failed to effectively communicate to its workers. The organizational structure should allow for proper flow of information across job hierarchies. 2.1.5 Upholding Workplace Diversity In every organization, success should depend on having a proper mix of employees by considering a proper balance of gender, race, religion, age and other human affiliations. Companies that discriminate in employment based on the above attributes may fail to meet the requirements of total quality management and world class employees (Standing, 2007). Abu Dhabi Oil Company hires foreign workers from various parts of the globe into their oil fields in UAE hence meeting the diversity benchmarks. Many buyers and international agencies are demanding better representation of women, minorities, and people of all ages into a suitable mix of diverse workforce. Having multi-cultural workforce ensures inculcation of proper work ethics and a culture oriented towards results. The company has more than 1500 hundred workers in UAE alone coming from various continents and including a reasonable proportion of women (Bloom, 2001). The company is determined to ensure workplace diversity as a way of upholding performance and meeting Health, Safety and Environmental fulfillment. 3.0 Forecasting HR needs The idea of HR forecasting constitutes strategic planning through recruiting and retention of talent for greater productivity, innovativeness and great performance. They can also develop budgets and recruitment timelines. The second step is to establish present level of expertise and staffing through HR information, payroll data as well as education, performance, training needs (Nestor-Harper, 2010). Thirdly conducting gap analysis shows differences between future strategic staff plans and current state. Review and analyze new systems, job analysis, job descriptions and staffing needs. Lastly is to have strategic planning that entail forecasting, budget analysis and new employee mix. Develop plan for severance packages, terminated employee career transition and current positions. 4. 0 Recommendations Recruitment and Training The company must develop an all inclusive recruitment and training programs. A strong safety culture has been implemented to ensure employees recruitment achieve their goals in the company. The trainings may not meet all the needs of all employees but it brings the goals of the firm closer to that of employees. Timely attendance of training courses Every employee should attend the training program that is staggered for not more than three days but spread at various times within the year is based on resource gaps. Employees should be chosen to attend the training program on various work related issues depending on the level of work left and the capacity of those left to carry on the work. Hiring the right personnel The hiring process should be very open and fair hence attracting talent across the globe. The HR manager is based in Abu Dhabi and considers a sizeable proportion of employees from within the region. Employees who have engineering background in petroleum should be best suited for this job. Communication among employees The company should communicate goals and objectives in daily actions and culture that is desired to attain success. Abu Dhabi Oil Company have utilized various means of communication like e-mails, websites and telephone to ensure it communicates to all employees in a clear and understandable manner. Workplace Diversity The company should not discriminate but employ based on the above attributes meeting the requirements of total quality management and world class employees. Abu Dhabi Oil Company hires foreign workers from various parts of the globe into their oil fields in UAE hence meeting the diversity benchmarks. References Bloom, G. (2001). Gender and the Production of Health Care Services. Presentation to the Gender and Health Workshop. Sussex: Institute of Development Studies. International Personnel Management Association, (2002). Workforce Planning Resource Guide for Private Sector. Journal of Human Resource. New York. Nestor-Harper M. (2010). How to Forecast Future HR Needs. Demand Media. Schlumberger, (2013). Health, Safety and Environment (HSE) in Petroleum companies. Schlumberger Limited. Standing H. (2007). Gender and equity in health sector reform programs: A review. Health Policy and Planning 12: 1-18. Walker, D. M. (2000). Strategic Human Capital Management: The Critical Link. The Public Manager, Spring. www.adocauh.cts-co.net  www.hays.com.au/prd_consump/groups/hays.../hays_089071. www.ic.ucsc.edu/~rlipsch/Pol177/Tetreault.pdf‎. Read More