Analysis of ESNAADs Human resource management - Free Essay Example

Introduction Human being has been endowed with a faculty to think, judge and prioritize his actions. He offers creativity and innovation. Though nature has given these faculties to every human being, his acquisition of knowledge, skills, his attitude of looking at work, his perception about everything he sees, varies so much that one can not expect a standard response from all human beings. Thus man as an asset is difficult to control as a uniform resource. Besides, he has a definition of his own satisfaction and may or may not be inclined to work with same enthusiasm. Moreover, he changes this attitude from time to time and his own moods to work. Thus, a human being is an unpredictable resource. When we want to take a human being in the fold of our business or organization, we have to consider him from aspects; as an individual with a given knowledge skills and values, what we can expect now and, say, after three years. Moreover, one has also to look to his personal role in his own family and how it will influence his organizational life. On the one side, he expects greater responsibility and job satisfaction but he is reluctant to work without getting paid for such extra work. Thus, his expectations are to be seen and controlled so that he can be useful to the organization for a long time. His preferences and values also must be gauged before he is employed. The worst is that we have to evaluate all his work life because he can prove to be a liability if neglected for sometime. Thus a human being is an expensive resource to be evaluated all the time. To make him more useful, they have to give them further training. The chances are that the person may leave the organization any time and create knowledge void. Thus, human resource is the challenge to management throughout its life. ESNAAD is a front running service provider in the field of oil and natural gas in the region of mid of east. The origin of this corporation makes an incomparable reputation in Middle East with an eye on global expansion. They have already succeeded in making a palpable presence in UAE. With Middle East Company we perform international standard regarding health environment, safety and quality control. In the port city of Musshaf we provide a second to none work atmosphere regarding cleanliness and Safety. ESNAAD is dedicated to the welfare of employee with excellent track record in the field of safety, professional satisfaction and work environment. As a result they are proud of having best professionals of this field in our team. They have a continuous training program to ensure to give a series of products o the oil Industry. They always remain committed for development of new services and products to fulfill even long term needs our clients. ABOUT ESNAAD ESNAAD is a subsidiary of ADNOC that primarily deals in waste and chemical management, blending of chemicals, mud chemicals, and handling materials to support ADNOC services. ESNAAD has a vision to excel in offshore management of oil production and establish itself as a premier service provider in UAE oil industry. For this, it is extremely important that the company has a strong Human resource system to avoid any mistakes while dealing with labor force which does high risk job. The HR policies must support a clean and safe environment to work and provide continuous trainings to the workforce so that they avoid accidents and provide services that are at-par. The primary services of ESNAAD include: Oil field services These involves processing of crude oil to refine it based on the international standards. Offshore services These involves operations, maintenance and services providing logistics support. Onshore services This is the most important section of servi ces that include at the port services, waste management, chemical handling, material processing, engineering got oil processing. HR NEEDS OF THE COMPANY Let us first discuss the HR needs of the company which can be described in terms of the following heads: Planning Selection Motivation Interpersonal Relationship Wages Compensation and Benefits PLANNING Although all of these five factors are important for a quality HR departments, it must be borne in mind that the person implementing them are more important than former ones i.e. a person with credibly and who is a business person first and then a HR profession. The person having demonstrable commercial sense, knowledge of the concern business and potential competitors and with a capability of Strategic understanding of development needs of the business. At this stage this must be emphasized that there is a greater need for upper management to look HR of ESNAAD not an administrative unit rather as a business partner. In planning of human resources five factors are considered important as per their order i.e. Talent Management Organizational Development Knowledge and Strategy of Business Talent Acquisition Perks and Benefits. I.TALENT MANAGEMENT It should be very clear for a senior functionary of ESNAAD that if they cant do talent management in a professional manner, it will result in losing our skilled workers and professionals to our rivals. A competency based management is supported to be the best for ESNAAD as this means developing strategy and goals to direct behavior and actions of the employees for the success of the organization. II. ORGANIZATIONAL DEVELOPMENT Human sector is the backbone of the growth of ESNAAD. It comprises of all from the top management to the employees and aims at the effective development of the organization. The core of the organizational development is the behavioral research. It has got four basic components: Economics,Technical,personal, and Politico legal. This will include: Work Recognition and Space changes. Group Problem Solving Talent Management (as discussed) Planning of Agenda Team Development Improvement of Business Process Training III. KNOWLEDGE AND STRATEGY OF BUSINESS This will helps ESNAAD in the following way: It enables HR Strategy to be aligned with the overall vision of the organization as it develops knowledge and Confidence to communicate with CEO. It helps for developing a framework for developing business strategy. It acts as a tool for HR to afflict the development of Strategy Process. IV. TALENT ACQUISITION It has evolved from basic staffing to an integrated approach for acquisition of top talent required for dynamic business needs. It utilizes a software tool to substitute all sub process of Finding, attracting and eventually hiring highly talented Individuals to fulfill the organization requirements which is important for the overall growth of ESNAAD. The aim of talent acquisition software is to streamline the entire process of recruitment in following way to Online Creation and editing of job requisition. Facilitate on line interview and their result reduce recruitment costs Scan references pertaining to a particular candidate. V. WAGES, PERKS AND BENEFITS While wages comprise the salary, the perks and benefits are Non-Wage compensations which are provided to an employee in ESNAAD. Some of these non-wage benefits may be health insurance, group insurance, housing, disability coverage, retirement benefits, sick leave, Educational Fund, Social Security and other such benefits. SELECTION This is the process of choosing the most suitable candidate. With elimination of the unfit or less suitable one for particular job, ESNAAD can avoid the danger of accidents and ensure quality services. It is the process based on job related qualification and hence eliminates automatically the job seekers not meeting the essential requirement of a particular job. In this regard this must be borne in mind that the right person must be at right place at right time. Timing factor too is a very important one, as one individual who can do well at starting phase of ESNAAD recruitment cycle may not do well after a certain level of functional maturity of organization is achieved i.e. maintenance phase. A vice versa of this may also be true. Motivation Motivation of human wealth is the most important factor of success of any organization. These are two main groups of factor: Satisfiers: motivation factors creating a highly motivating situation but there absence in the job does not cause serious dissatisfaction. Example Responsibilities Advancement, Recognition. Dissatisfies: Other group of factors if absent may cause serious dissatisfaction, regardless the impact on the motivation. Reduction in the availability of these factors is likely to affect motivation and bring down the performance level .An offer of more of these factors does not in any way improve motivation significantly. For example, a raise of 10 in the salary of a person may not improve his performance, but a withdrawal of this amount will upset a person and is likely to cause dissatisfaction. These factors have been designated as maintenance or hygiene factors or dissatisfaction. They are preventive, environmental and have job context. Thus these two sets o f factors are mostly unipolar i.e. Satisfiers contribute very little job to job satisfaction and dissatisfies contribute very little to job satisfaction. These two sets of factors are listed in the below table: Motivators or Satisfiers MAINTENANCE FACTORS Job Itself Status Possibility of Growth Interpersonal relations with Superiors Peers Subordinates Achievement Technical Supervision Responsibility Company Policy Administration Advancement Job Security Recognition Working Condition Salary Personal Life The impact of an increase or decrease in these factors can be explained as follows: INCREASES DECREASES JOB SATISFACTION When motivations are When motivators are strengthen or present weakened or absent JOB DISSATISFACTION When maintenance factors When maintenance are weakened or absent factors are present The satisfiers describe mans relationship to what he does, but the dissatisfies describes his relationship to the c ontext or environment or situation in which he does his job. The hygiene factors, so called in poor analogy with the way the term is used in preventive medicine, meet mans need to avoid unpleasantness. The motivator factors on the other hand make people happy with their jobs because they serve mans basic and human need fir psychological growth, and his need to become more competent. For proper motivation it is suggested to follow the master model of hierarchy of needs that an individual is supposed to attempt in following order: 1) The physiological needs 2) The safety security and stability needs. 3) The social needs i.e. love affiliation, membership and belonging. 4) The esteem needs-Self Esteem and public Esteem. 5) The need for self realization. THE PSYSIOLOGICAL NEEDS: The physiological needs concern the needs of the human body. They are basic to preserve human life. For example, food, clothing, shelter, etc, are all essential of life, without the reasonabl e satisfaction of which no human being can function normally. Any other need will become proponent only if these physiological needs are at least partly satisfied. As the very survival of human life depends upon the satisfaction of these needs, they are also known as primary needs. They are primarily satisfied through economic behavior and have finite limits. An individual demands only a particular amount of these things. After reasonable gratification, they are no longer demanded. That is why they are motivational only if they unsatisfied. The Safety Needs: The next order need is safety and security need. This implies provision against the deprivation of the basic physiological need. If there is a danger of attack from our neighbor, we must provide for our safety. If there is a fear falling ill, being retrenched, we must provide for a rainy day, i.e. Security. We would have at least liked to maintain that we already have if not better our circumstances. This need also has the same characteristics of being primarily satisfied through money and being motivational only in absence of a reasonable satisfaction. Once these needs are satisfied, they are no longer motivational. The Love Needs: It is natural desire of every human being to be a part of the group which loves him. This group consists of a few individuals who have some commonness and the member of a group is able to unhesitatingly share his problems with other members of the group who are close to him. This may in the family or work organization or else where. He wants to give and receive love. This provides meaning to work life and the individual is recognized as an important member of the group. These needs are regarded as secondary because they are, though important, not essential to preserve human life and emerge only if both the physiological and safety needs are fairly well gratified. The Esteem Needs: Esteem needs are divided into two categories: Self Estee Public Esteem Self esteem means esteem in the eyes of the self, i.e., an inner feeling that one is doing something worthwhile. It is the desire for strength, for achievement, for adequacy, for confidence in the face of the world, and for independence and freedom. When an individual is himself satisfied about the task relevance, he looks for esteem in the eyes of public, i.e. public appreciation, praise, admiration, or public applause it is desire for reputation or prestige, recognition, attention, importance or appreciation. Satisfaction of the self esteem needs to feelings of self confidence, worth, strength, capability, and adequacy of being useful and necessary in the world. But the thwarting of these needs produces feelings of inferiority, is unable to satisfy his need through positive constructive behavior, he may resort to immature disruptive behavior as often a child does in the class to draw the attenti on of a teacher when he fails to do so on the basis of academic performance. The Need of Self- Actualization: The highest order need is the Need of Self- Actualization. This means becoming what one is capable of. It implies an opportunity for the fullest expression of ones personality characterstics. A painter must paint, a singer must sing, and a teacher must teach if he wants to be actually happy. What a man can be, he must be. This need is continuously motivational, and therefore, it is called a growth need .As a personality of a person is constantly growing, the need for its expression is never satisfied. When one reaches a particular stage, one moves slightly higher and accordingly, ones aspiration level goes up. This need is purely physiological in nature and is infinite. One looks for endless challenge and integrates ones interests, talents, and abilities to the point that one work towards become what one must become. This implies that a person who has reached the point of continuous self actualization has necessarily satisfied all his deficit needs. INTERPERSONAL RELATIONSHIP To assist supervisors and managers to tackle difficult issue in ESNAAD with the workforce a three step strategy is to be developed i.e. Active Listening Adaptability Decision Making Active Listening : is the core of any human resource management and comprises of two components- Interpersonal Communication Conflict management Interpersonal Communication is the basic need of any management personal. It should be well understood and practiced as it is the core of all decision making and actions at a workplace. When we work with diverse groups of workforce it requires a lot of interaction. The main objective of interpersonal relationship is to create the respect of the employees for their management in order to have the right working atmosphere and attitude in the workplace. This can be achieved with a four dimensional approach: Influence Interpersonal Facilitation Relation reality Team leadership. A manager can have interest in one or the other or all dimensions and can practice them accordingly. ESNAAD will have to actively look into management of managers. Conflict management is the second skill of the managers to get leverage. It helps to resolve issue of employee management issues and effectively and at a faster pace. It also helps to create greater satisfaction amongst the human assets. There may be many type of open or hidden at various stages. These conflicts if not interviewed or ironed out Properly may result in various problems right from a bad working atmosphere at one end to a medico legal problem on the others. Adaptability: will be most stressed component of HR management within ESNAAD as it is the critical skill of achieving respect of the workforce for their management. A proper policy of adaptability will be having two components: Adaptability of management for Workforce. Adaptability of workforce for the management. Decision making: in terms of interpersonal relationship is different than t hat of a corporate decision making. ESNAAD management must remember that a decision may at the level of interpersonal level is to facilitative the achievement of the organization and not to affect in a negative way. SALARY AND COMPENSATION A sound compensation package is to encompass following factors: Adequacy for wages, Social balance, supply and demand, fair comparison, equal pay for equal work and work measurement. The concept of adequacy has two components, the internal and external. The internal component has a link with the fair wages concept, i.e., for a given job, is the money compensation adequate for an employee to maintain a descent standard of living; is the money wage adequate to cover basic needs such as housing, food, transport, medical care, childrens education and the possibility of saving for a contingency. The external adequacy would be in relation to comparable jobs in other industries with similar background requirements. The wage compensation for a particular job should not be less than what it can command else where. In a labor surplus economy it wills always b e possible to find employees willing to accept jobs at lower rate. Given the supply and demand situation, employees have an ethi cal obligation to pay for their wages. This concept of fairness should operate both for the employer and the employee i.e., standard of work should be comparable with that of similar industries. Comparing jobs across similar industries is one aspect in terms of fairness, but there is yet another factor that needs consideration and that is designing and implementing a compensation system which establishes parity of jobs, internally as well as externally. Internally persons doing similar jobs in an organization should be similarly compensated. In order to establish parity, factors like complexity of the task, skills requirements and job differentials, and an objective system of job measurement needs to be considered. The one that has been evolved is the job analysis and evaluation method. BASIC TYPES OF BENEFITS: 1) FRINGE BENEFITS: Fringe benefits too are the part of cooperation of the organization and may include status (like Car, Entertainment facilities, holidays, foreign travel, telephone); security (insurance, medical facilities, holidays foreign travel, telephone) and work benefits (office accommodation, secretarial services, management training, company scholarships, etc 2) KEY BENEFITS Key benefits such as share schemes, profit sharing, retirement counseling and house purchase. Introduction of Fringe benefits and key benefits depends on how much the company can afford to spend. Certain schemes may not benefit all the employees, so those with maximum coverage are important, if both employee and employer are to be benefited. Employees preferences could be ascertained through regular survey and interviews. The employer could use this information to intrude benefits in accordance with the perforce given by employees, keeping relative costs in mind. A program of benefit also has to include certain items dictated by government laws. Unions also represent some of the workers preferences are generally insist on a satisfactory wage rate and satisfactory fringes and not merely on a satisfactory combination of the two. Fringe benefits in terms of the cost are the real total cost to the company of employing the employee. This benefits since they are regarded as a bonus create a favorable attitude towards the particular job and company. Cost of fringe benefits is not static. Employers may also find it worthwhile and more economical to pay overtime. HRIS AND SECURITY Security consists of a series of burden or doors one must one must pass through before an access to a data or to execute a function on a computer system. These hurdles or doors consists of: Physical protection and Security within the HR system I). PHYSICAL PROTECTION: Locking of hard drive Locking of password Use of password not accessible to all The Password must be changed regularly Use of a separate computer by controlling authority. II). SECURITY WITHIN THE HR SYSYTEM This may be of two types according to the data to be used: Simple for less sensitive data Complex for the data requiring high degree of confidentiality like succession planning. LEVELS OF SECURITY FOR HR SYSTEM There are total five levels of security for any HR system as presented below: Physical Approach: The first level being the physical obstacle to the master computer. Only the authorized person should be allowed approach to the executive office. Access Level: There should be a strict control to access to the data only authorized person should be allowed to see the data. A pass word is to be incorporated at this level. Manipulation Level: At this level a check is to be put on data manipulation by an unauthorized person i.e. entering or changing data. It is to be done by a fully trained person in the field. Reporting Level: At this level standard reports are printed accessed for the quality. It is proposed to introduce a separate password for each level separately i.e. Access level, manipulating level, and reporting level. Decision Making Level: At this level, decisions are made only after total authorization and permission. USER FRIENDLY: Our system is must a user friendly as it covers almost all the issues viz: Reduction in paperwork with accuracy. Cost Effective Provides instant yet accurate knowledge. There is streamlining of the process Makes practice decision making easy Adheres to the preview of legislation. SUSTAINABILITY OF AN EMPLOYEE: Regarding Sustainability of an employee our HRIS software readily provides the answer for all the following answers: Past work experience of an employee. How far his education and skills are practically relevant? How long he will be useful to us? What reciprocation he expects from us? Will he be able to work in a group? Are his family circumstances complimentary to the work carrier we are offering? How will we decide his carrier progression? How much a partner should he be made in decision making? How can he groom to take further responsibilities? His comparison with other workers How will he influence the work group balance? How does he fit in the job description? Can we change the job description to suit his talent? Accommodation for him? KNOWLEDGE MANAGEMENT A Knowledge Management system may be of five types namely: 1. Based on Documentation -Documents like web, databases, notes etc. It permits the creation, management or sharing of these documents 2. Taxonomy Bases It is similar to Document based one, but uses a system of terminology like Author, subject organizations etc. 3. Technologies Based like Artificial intelligence (AI) which represents problem an organization faces. 4. Network Based This method uses network and other means to transfer the information. 5. Increasing Social Computing- Based on personal interaction. Ours being a web based HRIS takes care of all the three aspect of knowledge Management System: Communication: This system can be used on Internet for data exchange with other organization. Information: This system can be used to obtain the knowledge of expertise. Proliferation: Our system can help to get new applications online to perform a variable task. Human Resource Information Sys tem Design for ESNAAD: Employees Profile Employee profile screen will capture the following attributes for Human Resource Information System of ESNAAD: Personal Identification Information of the Employee Previous organizations worked Service expertise details Key contract number in emergency situations Dependants and Emergency contacts Number of days Attended Date of joining the organization Qualifications Key skills Payroll Details This screen will capture the total compensation, perks and earning details of the employee: Pay Grade History of previous pays Bonus details and criteria Tax brackets and deductions Perks and Benefits Yearly/monthly Leave allowance Loan details of the person Food coupons Medical bills reimbursements Total Cost to company Training and Development This screen will capture the training details of the person: Performance Ratings Performance bonus Education and qualification Primary Skill Secondary Skills Certifications Training Needs Training Justification Awards Health and Safety This screen will capture details of any incidents and accidents of the employee: Any accident/Incidents Details of Incident Date of occurrence Place of occurrence Previous ailment Records of Medicine and Treatments Any Disability Library of Document This screen will capture any important documents issued to the person: Letters issued on company letter-heads Purpose of letter Date of letter Any other documents sealed from the employee Any confidential documents associated with the employee HR Dashboard All the employees data will be displayed here: Graphical view of men and women in the firm. Graphical view of certifications held by employee Pie chart of people speaking different languages. View of Pay history of employee. View of various levels at which employees are working. Module to export the data in various formats (such as csv file, excel form. Modules to connect data to other authoritative sources, application such as SAP. Module to manage the security of employees. Password protection. All work related policies and procedures for employees. All insurance benefits listed on this module. All safety and security related training material for ESNAAD employees. Conclusion: Because of the prevailing global atmosphere of competitive business practices there is a closed mouth approach worldwide. Automation in industry has a basic role to have an improved management information without disturbing the safeguard of companys policies and private information. Thus HRIS system is a basic surmounting need for big and even small organizations to a larger extent.