Strategic Human Resource Management at Oman Oil Company

Abstract

For any company to achieve success, it needs proper policies and cultural background that would define its operations. In this way, the company or business organization will have a structured way of doing things that ensure the maximum output which will, in turn, translate to business growth and development. One of the key aspects of any business organization is the human resource management culture and policies. The way a company treats its workforce will have a significant bearing on the direction the company will take. The employees are key stakeholders that should be considered at every step of the management process. They are the ones that perform the daily activities, meet with customers, and produce goods and services that are sold by a company. Therefore, neglecting their needs can make the company fall. Since the employees are such a crucial piece in the success of a company or business entity, a company will be better placed ensuring that they get the right type of employee during the recruitment process. This will ensure that the company gets people that are motivated to work to ensure that the organization gets to meet its vision and goals. This paper will be an analysis of the Oman Oil Company. The Strategic Human Resource Management will be analyzed to get a clear insight on how the company seeks to get the best from its workforce for the company to achieve unparalleled success.

Understanding Strategic Human Resource Management (SHRM)

Strategic Human Resource Management can be described as the aligning of a company’s business objectives with human resources which will in turn spur innovation at the organization, improve productivity, satisfaction, motivation, and eventually promote an increase in the overall performance in the company (Çalişkan, 2010, p. 111). It is relatively new in the business world, and it is functionally different from the traditional Human Resource Management (HRM) which was simply an organizational function at a particular firm. When the company understands the importance of strategic human resource management, it can take the vital steps that are necessary to improve every aspect of the work environment in the organization. The main objective of Strategic Human Resource Management is to offer solutions to business obstacles that conventional HRM practices cannot solve (Cunningham, 2016, p. 25).

The pillars of Strategic HRM which make a must for every modern company include the people at the company as an asset to the company and not merely resources. This can increase the competitive advantage for the company. For instance, when a company holds its employees in high regard, and they are made to feel appreciated they can give their best to ensure the success of the company. This will make highly qualified candidates want to work in the company. The company, therefore, attracts the top experts in each field and this can only translate to increased performance for the company. The next pillar of strategic human management is the application of the planning process (Krishnan and Singh, 2011, p. 67). This means that for each change that is required to take place, there is careful consideration for each activity. When this happens, the company will understand the critical role that the HR department has to play. Therefore, the change process will incorporate the HR practices depending on the organizational objectives and needs.

Another important pillar for SRHM is understanding that the company can concentrate on finding effective ways through which it can gain a competitive edge over its rivals (Krishnan and Singh, 2011, p. 64). When the management understands this, they can take appropriate measures to ensure that they get the right people who can help them have an edge over the closest competitors. Therefore, SRHM has a central role to play in ensuring that the company makes use of planning and coordinates the human resource activities and other organizational policies into creating a sound business strategy for the business that will ensure that the company can enjoy long-term success (Krishnan and Singh, 2011, p.7). In the end, a company can realize the benefits that come with a sound recruitment policy, managing people in a coherent approach, and having an efficient workforce strategy.

The Purpose of human resource management policies in organizations

Human Resource Management policies are crucial for every business that wants to get the best from the workforce. These policies are aimed at offering frameworks for a company through which consistent actions and decisions can be undertaken. The HR policies also ensure that there is a promotion of equity in how people are treated in an organization. When a company implements strong Human Resource policies, it can help the business to show both externally and internally that it achieves the diversity requirements, ethical considerations and provides the training required in modern workplaces. HR policies are also important because they will demonstrate that the organization is able to meet its commitment touching on regulation and corporate governance of its workforce (Järlström et al. 2018, p. 703-708). These frameworks or policies are crucial because they lay down the standards of behavior, obligations and set out disciplinary procedures. Therefore, each employee at the company understands what is required of them at the company. This gives a clear direction of the activities to be undertaken by each employee, and in the way ensures they understand what happens when they cannot meet the set-out targets or activities.

The Oman Oil Company is owned by the Sultanate of Oman. It is a national petroleum company which was established in the year 1996, the company specializes in oil refining, power generation, infrastructure, energy transportation as well as petrochemical, manufacturing. Apart from the statistical data of the company it states that they have 49 percent in Oman Oil Marketing Company. It has a network of 179 retail filling stations all over Oman where it has great performance ineffective human resource management. The company is playing a huge role in Sultanate’s effort to order diversity in the Omani economic sector (Al-Hamadi et al, 2007 p. 110). The company also promotes the investment of foreigners in the private sector.

Every organization makes an effective performance following policies and practices of the human resource sector, this is becoming vital in bringing about the success of a business, human resource that is used by Oman oil company has so much relationship with management and performance of the workers of the company. When analyzing performance, it is the managing through designed policies and procedures. A company’s HR strategy ensures that employees get a suitable working structure so that they are safe when working and also to ensure that they feel healthy when performing their organizational roles. The main business strategy of Omani Oil company leans more on global integration and interaction, business values, and innovation. With support from leaders, the company is run by the employees who technically make everything work. The Human Resource strategy of the company work towards getting the company workers motivated and feeling energized as they carry out their work and perform their roles. The Omani oil company motivates the employees by offering significant leadership, performance-based opportunities, flexibility, and even hiring qualified, skilled, and diverse employees with job satisfaction (Analoui 2017, p. 15). Human resource management ensures that there is the identification of business needs, and this is the main priority of the company so that they can work effectively in the Omani area. The company ensures that they know the whereabouts and deal with the requirements of each employee of each department in the company. Be it logistics, refining, or even the financial sector.

HR practice of Omani company influences the performances of the organization by training and staffing of their workers. According to Beach and Lipshitz (2017, p. 90) training of employees gets them ready for roles that they are set to perform in the Omani Oil Company. This is among the leading oil companies and so they are strict when recruiting their employees and they ensure that all employees are selected in consideration to their job specifications and the person description. The HR strategy and practice are done by the company, and it has a relationship with the HR policy department and shows the recruitment, selection, rewarding, and training of the employees. The training of employees needs to be done to ensure that work is done effectively, workers need to be rewarded to increase the motivation they have towards the company. The Omani Oil Company rewards its employees where there is salary increment and promotion and this is efficient and effective in keeping the employees of the company motivated and at the same time reducing the employee turnover rate. The employees receive equal employment opportunities and equal payments in relation to their job responsibilities without any discrimination.

According to Bakker and Demerouti, (2017. P.273) the policy of human resource development states that there should be equal employment opportunities with connection to performance evaluation, performance improvement, and salary increment in the workplace and ensure that employees stick to their working stations and carry out their responsibilities with new and innovative strategies. It is also essential to motivate the employees with human resource strategies and practices since the industry has high competition and this is to maintain the talented and skilled employees not to shift to other companies. The companies that can use the HR strategies and policies consistently benefit in several ways such as in the formal policy which is effective for the supervisors and the managers when hiring, making of decisions as well as during making promotions

Relationship between HR strategies and Omani Oil Company Performance

To make an organization successful there is a need to ensure that human resource management is present. To gain a competitive advantage human resources in an organization have been on the rise in the organization of modern times. Employees are the main valuable asset in the company and help in the achievement of competitive advantage in the marketplace. It is not easy for an organization to maintain the valuable asset since the employees have different needs and requirements. HR strategy of Oman Oil company has emphasized the training and development of its employees. They have incorporated informal training and the development process offers the company a potential advantage hence the reason it is effective.

According to Al-Hamadi et al, (2017 p. 103) The HR strategy of Oman Oil Company focuses on the strategic training and development of the employees. Incorporating formal training and development process is effective as it provides the company with a potential advantage. There is also improvement of work performance of employees for they become acquainted with the responsibilities they are supposed to perform in the company. The Oman Oil Company is aimed at the creation of significant employment within the area of Oman. The company, therefore, ensures that it prioritizes its objectives by recruiting skilled and talented workers and giving them training and effective policies to ensure that they polish the skills that they already have.

The report of the Oman Oil Company states that the training they offer their employees is technologically advanced so that they get adapted to the environment that keeps changing. The training has played a huge role in ensuring that there is organizational productivity so that the workers are motivated with their work. For instance, those who are trained in the oil refining department are trained with technologies that involve refining and petrochemical of oil. This will make the company could enhance finance the financial position since the aim of the training is fulfilled when there is enhancement and effectiveness of the company. According to. Rothenberg et al. (2017 p. 400) the training of employees improves the performance of the company, and this leads to having more profits, more production and to earn a better revenue for the company so that to make it stronger. The human resource department knows the need for the company and understands that training the employees to ensure that gaps go hand in hand with the mission, vision, goals, and aims of the company.

Besides that, the strategic hiring and selection method of Oman Oil Company crucially impacts the success of the organization. The company values generating outstanding work of building up quality and productivity in carrying out respective duties and responsibilities, which they are doing through an effective recruiting process. It is observed that the organization gets the value not only by hiring talented workers but also by the value in hiring newer as according to the firm acquiring new applicants may aid them in gaining new ideas. Furthermore, the corporation focuses on performing proper cooperation by doing collaborative work, which focuses on fulfilling the organizational goals.

The HR strategy of the Oman Oil Company of hiring and selecting shapes the effectiveness of the company a great deal as well as improves its performance. The Omani Oil Company is dedicated to staffing employees in accordance to skills that they have and the ability to perform the work of the organization and this helps the organization in increasing retention of the employee. When the employee turnover is reduced there is the benefit of improving the relationship between employment and performance and this is purely effective. It is, therefore, possible to conclude and come up with a factor that strategic recruitment and selection practices impact positively the employees giving best in improving the performance of the company.

There is high competition in the Sultanate of Oman in the Oil and Gas companies, and this means that the Omani Oil Company is facing significant competition. To stand firm in the market the Omani Oil Company needs to implement more new strategies in the recruitment of employees as well as work with promotional activities to make them effective. According to Hatch (2018) When the workers are developed with good skills and better experience, and this assists the company to keep going when there are challenges and also at the same time have increased performance which makes it possible to sustain in the market that is full of competition. The strategy of managing performance and management in working place gives a clearer picture of the enhancement of the company performance (Cornelissen, 2020)

The main goal of Omani Oil company is to grow talent with respect to the professionals and business leaders. The company also has a mission that states that it aims to develop business and workers to their full potential. To achieve this the company ensures that it focuses on the performance of the company. The employees’ performance is handled by teaching the staff and awarding them for their excellent job performance. Furthermore, the analysis of Oman Oil Company also emphasizes their performance through the satisfaction of customers, getting more profits, making sure there is more production, boosting staff morale as well as the effectiveness of the available market. Therefore, according to this viewpoint, the performance of the workers is associated with effective employees’ performance, which helps enhance in increasing organizational performance. Owing to this, the HR department efficiently concentrates on the methods for motivating, assessing, recognizing, and the effectiveness of the personnel. Consequently, it inevitably assists Oman Oil Company to increase their organizational performance by retaining emphasis on the company goals, goals, values, and purpose.

[...]