Implications for Managers HRM and Performance

Question: Discuss about the Implications for Managers for HRM and Performance. Answer: Thesis Statement: Understanding the affect of the change in business environment of UAE on the management work place environment of Partex Oil and Gas Group. The Partex Oil and Gas Limited is a UAE based company located in Middle East which is pioneer in exploration and development of oil fields. The companys main goal is to develop upstream oil production in the country. Recently, there have been several changes in the crude oil price in international market. The prices have reduced drastically from $115 barrel in July 2015 to less than $30 barrel in 2016. The sharp fall in price has put the company in a difficult situation as it has lowered their earnings and affected their annual turnover (Partex-oilgas.com 2016). In the state of such economic change in the business environment, the company has to make certain changes in its working environment and organizational culture to cope up with the situation. The company basically has an autocratic system of management where the decisions are taken by the top management groups. In this case the employees are regarded as subordinates who need to be controlled and are suppose to follow the rules and regulation of the company (Truss, Mankin and Kelliher 2012).. The company needs to change the system to democratic and participative management system to deal the situation effectively (Veld 2012).Moreover, the cultural diversity need to be managed as it affects the managerial attitude, ideology, and technology transfer and business relationship. The HR department plays an important role in developing the communication system with the employees and creating the work culture in the organization. Therefore, to bring participative management system, the top managers of the company has to take steps to change the HR policies towards the employees and create a friendly working environment in the organization. The employees can share their views with the management and help the management in finding solution under the crisis. In this regard human resource department should consider cross cultural management practices and upgrade their general standardised HRM practices to international HRM practices. The HR department has to develop some new skills of interaction with the employees, make the rules slightly flexible so that the employees are free to share their ideas and feel the ownership for the company. The person who takes initiative to help the management to come out of the crisis should be given recognition and incentives so that it encourages other employees of the company. To attain good cooperation from the employees, HR department has to develop a better understanding of the firm, markets and business model. The price of oil has reduced and this has made the business unprofitable as upstream production of oil need huge cost of production (Guest, Paauwe and Wright 2012). The situation then demands a change of business model. The employee can cooperate in reducing the upstream production and agreeing to start downstream oil production that will help in diversifying the products and produce oil refineries which are used for various purposes. All this demands the implementation of SHRM policies to manage required production and the employees cooperation so that cost of production can be reduced and product diversification can be achieved. SHRM gets applicable only if there is some change in the business model and the management character of the firm has to change its autocratic style to participative style to run the business successfully. Further, the organization can consider Comparative Human Resource Management practices to understand the differences between HRM policies of different countries and try to adopt the most suitable Strategic Human Resource policies. References Guest, D., Paauwe, J. and Wright, P. 2012.HRM and Performance. Hoboken: Wiley. Partex-oilgas.com. 2016.PARTEX OIL AND GAS. [online] Available at: https://www.partex-oilgas.com/ [Accessed 7 Jul. 2016]. Truss, C., Mankin, D. and Kelliher, C. 2012.Strategic human resource management. Oxford: Oxford University Press. Veld, M. 2012.HRM, strategic climate and employee outcomes in hospitals. Rotterdam: Erasmus Universiteit Rotterdam.