BRITISH PETROLEUM

Nature of HRM at British Petroleum

Nature of HRM at British Petroleum

Introduction

This paper aims to focus upon critically evaluating the Harvard HRM model by Beer et al (1984) in connection with the chosen organization British Petroleum (BP). In addition, this paper also aims to identify the relationship between the actual applicability of this model in the organization to gage how it may have shaped the HRM function of the organization. The following section addresses these stated purposes in detail.

Discussion

British Petroleum

First found in 1908 in a remote and rugged region of Persia after extensive research by the certain oil diggers. BP is now one of the world's most foremost international oil and gas companies that endeavour to provide its consumers with fuel, energy, retail services and petrochemical products for everyday use. BP fuel helps in transportation movement, while the energy division of the company offers heat and light facilities. The company owns a total number of sixteen, wholly and partly owned, refineries cumulatively in 2011, alone pumped over two thousand and three hundred and fifty two oil barrels per day. The total workforce strength of the organization stands at over eighty-three thousand workers. Some of the core brands of the company include Castrol, ARCO, Aral and more. Today, British Petroleum operations span across all the seven continents of the world and its presence in the key regions has helped the company to expand its operations as well as indulge in several social projects in the various communities it operates in.

Harvard Model of HRM

Beer et al (1984) formulated this model based on the notion that Human Resource managers of various organizations are responsible for formulating and introducing various HR policies and procedures in their organization. However, while doing so, they lack proper guidance or assessment criteria to analyze if their formulated policies are appropriate for the organization or not. Hence, this model was advised which is also popularly referred as the Harvard Map (www.citehr.com).

In addition, this model is based on the analytical approach that provides a cause and effect of the determinants and consequences of HRM policies. Here the devised HR policies of an organization are greatly influenced by situational factors such as the organization's external business environment. While the internal organization factors such as the business strategies, its management philosophy and stakeholder's interest. In brief, it outlines four key Human Resource policy areas such as the:

Human Resource Flow in the Organization: this encompasses the recruitment and selection, along with employee performance appraisal and compensation spheres.

Reward System: this encompasses the monetary aspect used by an organization to reward and motivate its employees for their performance.

Employee Influence: this professes the level of autonomy an employee is entrusted by his reporting authorities to perform their work independently on their own. This helps identify potential leaders amongst various functions of the organization.

Work Systems: this encompasses the job analysis, description and determination of roles to be performed by employees on their job.

The above four divisions of this model leads to the understanding of ...