Recommendations on BP on Training, Learning and Development, Reward, and Employee Relations - Case Study Example

Name: Class: Unit: Executive summary This report is based on a response to the scenario in BP (UK). The organisation employs over 15,000 employees in various locations globally in different roles. Despite this, BP has been facing a 70% decrease in oil prices prompting cutting of 4,000 jobs globally. 600 of these jobs are in the North Sea operations in drilling and exploration of oil. As a graduate trainee in HR working in BP (UK) reporting to HR Manager to UK, this is a response his email. The response is based on ideas regarding HR practices and policies. This is specifically on the recommendations on training, learning and development, reward and employee relations. The recommendations are in line with the current scenario. Table of Contents Executive summary 2 Introduction 4 Recommendations on BP on Training, learning and development 4 Recommendations on BP (UK) reward 7 Recommendations on BP (UK) Employee Relations 10 Conclusion 11 References 12 Introduction People management is one of the vital duties of the human resources department. This is due to the importance of human capital in enhancing the organization success. Human resource management is based on all aspects of people who are employed in an organization and how they are managed (Armstrong & Taylor, 2014). As an employer with more than 15,000 employees, British Petroleum (BP) has a role to ensure that employees are well managed. This can be achieved through having sound HR practices and policies. Training, learning and development, reward system and employee relations are the three areas which I feel that BP should focus on. This report is based on HR practices and policies based on training leaning and development, reward system and employees relations. The report gives recommendations on the three areas for BP (UK). This includes potential limitations and how they can be addressed. Recommendations on BP on Training, learning and development With dropping oil prices and looming job cuts, the remaining employees at BP (UK) have to be trained and developed. This will make them resilient to handle the changes and enhance their production. According to Aguinis & Kraiger (2009), training and development is very critical for an organization success especially during challenging market conditions. A study done in 2016 showed that 68% of the employees saw training and development as the most vital policy in the workplace. It is the main way in which an organization is able to attain effective human resource development (Armstrong & Taylor, 2014). There are two main methods that an organisation can use to train and develop the skills of their employees. The training methods can be off-the job or on-the job training. According to a study by CIPD, on job training is supported by 48% while off job training is supported by 46% (CIPD, 2015). This is based on the available resources, goals and needs. Firstly, BP (UK) has to make initiative to ignite their managers in coaching the employees. According to human resource theory, managers have a role in coaching and mentoring employees with an aim of passing knowledge, skills and insights (Schuler, 1992). Coaching is supported by 40% in a study by CIPD (CIPD, 2015). The limitation is fact that this is a management role that is being eroded. This is due to fact that the management have become overburdened with other responsibilities. Thus, management lacks time to coach and mentor the employees (Noe, 2010). BP (UK) has a role to support their employees through vouching and mentoring. BP requires giving support and incentivising the management so that they can perform their work more effectively. Secondly, BP should consider developing flexible learning options. This would ensure that all employees have adequate time for training and development (Noe, 2010). The limitation of the current learning options is huge workload on training and development which makes employees overwhelmed. Thus, there is need for an on demand training and development opportunities to be made accessible to employees. Armstrong & Taylor (2014) asserts that knowledge is the main source of competitive advantage for the organisation hence the need to make it more accessible. The only way that a modern organization can survive is through innovation to gain a competitive advantage. Thirdly, BP (UK) should consider use of job rotations and transfers for employees training. This is a proved method in which employees gain skills within the organisation (Armstrong & Taylor, 2014). Job rotations involve moving the employees from one responsibility to another in the organization or from a branch to another. This will make it possible to acquire knowledge on different areas of operations within the organisation (Drost, Frayne, Lowe & Geringer, 2002). Thus, it will make it possible for BP (UK) to have remaining employees well versed in different operations. Fourthly, use of orientation has been one of the most successful methods for training and development. This method involves getting the newly employed workers being trained and familiarized with the organisation (Aguinis & Kraiger, 2009). The current orientation and induction program at BP (UK) should be enhanced. This is through exposing to different undertakings in the organising. There is a need to ensure that employees are well acquainted with the oil and gas working environment. The main limitation of this method is the fact that it may omit some vital areas especially on emerging technologies. There is need for inclusion on induction new and emerging technologies in the industry (Armstrong & Taylor, 2014). Fifthly, there is need for BP (UK) to enhance the use of conferences as a training and development method. This is through presentation to a wide audience which is more cost effective (Armstrong & Taylor, 2014). The main focus during the use of conferences should be on all trainees and ensuring that none of them is left without adequate training. The main limitation of this method is fact that it can lead to some of the trainees being left behind (Noe, 2010). BP UK must understand that not all employees understand at the same rate. This requires the conference to be tailored based on employees’ capabilities. Lastly, BP (UK) should consider the use of formal training courses and development programs. These techniques can help a lot in developing the skills that are required in the organization (Armstrong & Taylor, 2014). The organisation personnel requires well developed curriculum to enhance their skills. These courses can be undertaken while the employees are at their workplace or while off work. Use of on job training has a limitation due to the amount of time available and low concentration. Despite this, research shows that off-the job training to be highly effective (Noe, 2010). This is due to the high level of concentration during the off job training. Based on the type of knowledge that is required, organization structures and policies, it is possible for the trainers to be trained both inside and off their workplace. Recommendations on BP (UK) reward Reward system in an organization is very vital (Armstrong & Taylor, 2014). For an organisation such as BP (UK) which is facing dropping oil prices and reduction in workforce, reward system can help in motivating the remaining employees. This is the only way in which the employees at BP (UK) can fulfil their employers’ dreams and share it. Reward management is required to influence the remaining employees towards excellence in performance (Armstrong, 2010). During downsizing, enhancing employees’ morale is vital. According to study by Deloitte, organisation with enhanced reward system had high employee engagement and 31% lower voluntary turnover (Jacobsen, 2017). Also, in 2013, 67% of the best performing organisations had an employee recognition programs. Use of employees’ recognition has been highly appreciated especially from the management. 24% of the employees according to Gallup study claim that they value management recognition (Aberdeen Group, 2013). There are several ways in which BP (UK) can enhance their employees’ morale. When the employees joined BP (UK), they expected that good performance would be rewarded through progression and job security. This becomes challenged when the organization is forced to cut on the number of employees. The employees’ psychological contract is broken once the organization is forced to cut back on its workers (Guest & Conway, 2004). BP (UK) should come up with a reward system which employees who remain are motivated. This is due to fact that employees join an organization with an expectation of a reward. The employees must always be communicated in advance on the existing rewards (Armstrong & Murlis, 2007). There is need for BP (UK) to consider the use of team based reward system. This is due to fact that in the modern business environment, teams are becoming very vital. With the loss of several employees due to job cuts, team motivation can help a lot. Group based awards are very vital in enhancing team based work quality. In fact, it is ensure for the management to evaluate team based performance as opposed to individual work. Managing group based rewards is easier than managing individual rewards (Armstrong, 2010). The idea of having high performing team is very appealing especially during the current economic conditions with job cuts and reduction in oil prices. The rewards are highly likely to lead to a collaborative approach to employees’ performance. This is highly effective in attaining the organization goals. The team members will help and support each other as the organization undergoes the changes. Despite this, there is a limitation when the group based rewards undermines individual contributions. The organisation can address this through looking at individual group member performance while rewarding the groups (Armstrong & Murlis, 2007). They will be rewarded based on the ways in which they have contributed to the organisation performance. Another initiative that BP (UK) should embrace in the current business environment is total rewards system. This is based on designing a rich mix of rewards which are complementary aimed at enhancing the chances of employees finding their work more rewarding. The rewards must be based on the current business needs due to restructuring and falling oil prices. This is a broad based reward system and is not a one size fits all solution. This will foster high performance and improve on the organisation teamwork. The main aim is to improve employees’ morale as the job cuts are carried out. The remaining employees must be made to feel appreciated and valued for their contributions. The main limitation is the fact that pay increase may not be possible with the current market conditions and even if it is applied it may not lead to job satisfaction (Armstrong, 2010). To address this, a combination of several reward systems such as profit sharing, job security and flexible working time should be used instead. BP UK must use a critical approach to ensure that reward management is able to help employee motivation and enhance their behaviours even after the job cuts (Armstrong & Murlis, 2007). The total rewards strategy should be incorporated in to the organisation design and based on the elements which are most important to the employees. At the moment, there is several rewards system that exists at BP (UK). Despite this, there is need for realignment of the reward system due to the current downsizing changes. The existing rewards must be adjustment to enhance job security, increase commitment and motivate employees who are left (Armstrong, 2010). First, the organisation must make a move to link the pay to performance. There is need for new pay approaches which are based on skills and competence. The existing reward policy has to be amended to accommodate changes (Wilson, 2005). This will make it possible to maintain morale as the organization downsizes and face dropping oil prices. Lastly, there is need for the reward system to be cost effective. The rewards that are given should have a balancing effect on the cost benefit ratio. This is due to fact that over costing the rewards leads to loss and may further affect the organization negatively (Armstrong, 2010). This is a major limitation of these recommendations on enhanced reward system. The concept should be based on making the employees satisfied with cost effective rewards. Another limitation is the failure of rewards to meet the employees’ needs. When the rewards fail to meet the employees’ needs, they will not motivate them (Wilson, 2005). This will only increase cost burden to the organization which is facing falling oil prices. The rewards must also be unbiased and be based on their job performance. All employees must be treated equally. This will create a reward system which will enable BP (UK) to succeed during the turbulence period associated with job cuts and falling prices. Recommendations on BP (UK) Employee Relations Happy employers are very productive (Turnbull, Blyton & Turnbull, 1992). This is the main reason that the existing employees’ relations must be enhanced despite the prevailing market conditions and need to downsize workers. To ensure lasting employees relations, successful business ensures that there is a good relationship with leads to satisfaction (Blyton & Turnbull, 2004). When carrying out employees’ reduction, the employees must be informed as soon as possible. This should be about a month in advance of the action to layoff. Workers are a vital resource in an organization and no business can run without them. The organisation has to manage communication with the workers to ensure a smooth relationship. This involves avoiding issues that may lead to poor employer employee relationship (Drucker, 2002). BP must be able to come up with an enhanced employees’ relations plan. An effective employees’ relations plan starts with clear policies (Armstrong & Taylor, 2014). This is a policy that describes the rules, philosophies, and procedures which can be used in addressing employees’ related matters and issues that may arise in the workplace (Blyton & Turnbull, 2004). The main limitation of a new employees’ relations policy is the current bureaucracy. There is need to employ an employee relations representative who will work in close relationship with BP (UK) human resource. This will ensure that the policy is followed in a fair and consistent manner. Thus, it will help the employees to air their concerns through the representatives and HR department and resolve the issues. Communication between the employees and management is vital to a successful employee relation management (Turnbull, Blyton & Turnbull, 1992). The employee requires being informed on the daily happenings in the business and how their jobs are being affected. For example, with the current market conditions in the oil industry, employees require being informed on the impacts it has on them. Withholding information leads to mistrust and may destroy the employees’ morale (Guest & Conway, 2004). This includes the use of emails, portals and meetings. This is through an open line two way communication. Lastly, employees’ relations are related to reward system. This includes employees’ recognition and the performance reviews. Employees when recognized for their contribution leads to better relations (Drucker, 2002). Moreover, employees’ performance reviews act as an opportunity to have a dialogue with the workers. The feedback given helps a lot in enhancing the existing relationship. BP (UK) should enhance their reward system to boost employees’ relations especially with the current market conditions. This is due to fact that having positive employees’ relations during difficulties enhances business performance (Blyton & Turnbull, 2004). Conclusion To sum up, BP (UK) success is based on the way in which HR practices and policies are implemented. This is especially on the three areas which are; training, learning and development, reward and employee relations. Human resource management is based on how the employees are managed to ensure the business success. With the current market conditions in the oil and gas industry, it is vital for BP (UK) to implement these recommendations for their success. Their decision making should be based on the recommendations on the three areas. References Aberdeen Group. 2013, The Power of Employee Recognition. Aberdeen Group. Retrieved 7 May 2017, from http://go.globoforce.com/rs/globoforce/images/AberdeenReportNovember2013.pdf Aguinis, H., & Kraiger, K. 2009, Benefits of training and development for individuals and teams, organizations, and society, Annual review of psychology, Vol.60, pp.451-474. Armstrong, M. 2010, Armstrong's handbook of reward management practice: Improving performance through reward, London: Kogan Page Publishers. Armstrong, M., & Murlis, H. 2007, Reward management: A handbook of remuneration strategy and practice, London: Kogan Page Publishers. Armstrong, M., & Taylor, S. 2014, Armstrong's handbook of human resource management practice, London: Kogan Page Publishers. Blyton, P., & Turnbull, P. 2004, The dynamics of employee relations, Basingstoke: Palgrave Macmillan. CIPD, 2015, CIPD Annual Survey Report, Learning and Development 2015. Retrieved 7 May 2017, from https://www.cipd.co.uk/Images/learning-development_2015_tcm18- 11298.pdf Drost, E. A., Frayne, C. A., Lowe, K. B., & Geringer, J. M. 2002, Benchmarking training and development practices: a multi‐country comparative analysis, Human Resource Management, Vol.41, no.1, pp.67-86. Drucker, P. F. 2002, ‘They're not employees, they're people’, Harvard Business Review, Vol. 80, no.2, pp.70-7. Guest, D., & Conway, N. 2004, Employee well-being and the psychological contract: A report for the CIPD, CIPD Publishing. Jacobsen, D. 2017, 25 Statistics on Employee Recognition | Globoforce. Retrieved 7 May 2017, from http://www.globoforce.com/gfblog/2014/25-great-statistics-on-employee- recognition/ Noe, R. A. 2010, Employee training and development, McGraw-Hill/Irwin. Schuler, R. S. 1992, ‘Strategic human resources management: Linking the people with the strategic needs of the businesses, Organizational dynamics, Vol.21, no.1, pp.18-32. Turnbull, P. B. P., Blyton, P., & Turnbull, P. J. 1992, Reassessing human resource management, London: Sage. Wilson, J. P. 2005, Human resource development: learning & training for individuals & organizations, London: Kogan Page Publishers. Read More