Human Resource Management And Business Strategy Business Essay


To start with, I need to mention that in an earlier week task, I chose Statoil (Norwegian State Oil Company) for its international activities abroad. Consequently, there should be no need to repeat old information; suffice it to cover Statoil's Human Resource Management (HRM) policies. In economy and administration Human Resource Management means all activities related to planning, acquisition, development and the "liquidation" of human resources in organizations. In this case study I will try to focus on how the group works to recruit, how recruitment practices in Statoil is understood as strategic and organizational activities in our case study and how recruitment systems can be characterized as strategic positions. Administrators and economist regard some seven parameters as necessary measures in any HRM strategic planning of an organization or company. These are: recruitment and selection measures, educational training, Team Organization and delegation, Appraisals, Balanced Scorecard, performance assessment measures and Rewards and benefits.

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Recruitment and selection in HR task has received much attention in the media and in the workplace in recent years. Parallel to this increasing interest in recruitment has been a growing interest in research on the management of human resources, which can help create good results for businesses. The prominent economist Nordhaug 2004 says that: "Due to demographic changes, the influx of newly qualified workers is not able to fill up the large cohorts of the post-war period approaching retirement age". (Nordhaug 2004). This development helps in establishing an employee's market - and businesses. This heated debate is going on according to Polyhart: "Discussion on the challenges of future skills needs battle skills (the war of talent) is now relevant to businesses around the world" (Ployhart 2006). Another point of view is Ryne's who understands recruitment as "organizational practices and Decisions that Affect either the number, or types, of Individuals that are willing apply for two, two or accept, a given vacancy" (Rynes 1991: 429).

Other parameters in recruiting strategies are training program, which can increase workers' productivity and their eligibility for higher wages. An effective management team needs strong managerial competences that can achieve better social works and communal success. A performance appraisal is a tool that can provide a good working environment and effective achievement. Balanced scorecards, in comparison concern a management tool focusing on results such as qualitative, quantitative and economic and non economic. A reward system for the employees is apt to keep them productive and highly motivated to be engaged in their work. Based on the recognition that employees are a company's most important resource is stressed by Taylor and Collins: "In today` s increasingly market-based (HRM), effective recruitment is Likely to be the "most critical human resource function for organizational success and survival" (Taylor & Collins 2000: 304). Responsibilities of the HR are managing the recruitment process of labor between Corporate HR and Global Business Services (GBS) delivers recruitment services for the new employees.

Statoil, my example for a case study is divided into six business segments: Exploration and Production Norway, International Exploration and Production, Natural Gas, Manufacturing and Marketing, Projects and Procurement, and Technology and New Energy. In addition, the company staff and support functions of Finance, Corporate Staff and Services and Corporate Communications. Each division is headed by an executive director who reports to the CEO. Statoil has always a need for recruitment. Despite a turnover of less than 1%, some 1,500 new employees are recruited annually. To analyze recruitment practices in this case study is performed; I must clarify what a strategy is and how strategies are formulated. The concept of strategy has its origins in the Greek "strategy", meaning "general art" or "army guidance". "Strategy is the direction and scope of an organization over the long term, wooden achievers advantage in a changing environment through its configuration of resources and Competences with the aim of fulfilling stakeholders expectations" (Johnson et al 2008: 3).

For Statoil responsibilities include the external talent market, all internal recruitment and induction program. It has been noted that a total of 38 people working specifically with the recruitment of this support function, and five of these work only with attraction. Total working about 600 employees in HR throughout the Group and all local entities in the group have a local HR manager. Global Business Services (GBS) within recruitment is Statoil's internal supplier of recruitment services to all business areas. This perspective focuses on management often possible to use different tools and methods to characterize the direction the organization is moving in. The division of labor between Corporate HR, GBS and the line is that Corporate HR has overall responsibility; GBS delivers recruitment services, while recruiting manager is responsible for the new employees to be appointed, and the recruitment decision and employment responsibilities. The recruitment process begins with notified needs from a leader. The HR Group is the premise for recruitment conducting and group management. These two work closely together and they are both active in strategy formulation in recruiting. Based on the overall business strategy usually helps the community with the design of the HR strategy of the company.

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Finally, I do admit that this case study, despite its limitations, it has concerned itself with HRM at Statoil. We have also seen that this recruitment process in Statoil is based on an HR strategy, linked to the overall business strategy of the company. The close cooperation between operational and strategic efforts must be said to provide good conditions for a focused and long-term orientation in the recruitment process. A clear distinction between the operational and strategic processes at Statoil, as we have shown, has identified a recruitment extending far into the future. Statoil plans cover both 5 and 10 year perspective. The company has engaged in activities and projects with interests in science and a long-term approach.