Strategic human resource_management

Strategic human resource management
SCHOOL OF ENGINEERING
MASTER OF ENGINEERING PROJECT MANAGEMENT
PROJECT REPORT
IN
STRATEGIC HUMAN RESOURCE MANAGEMENT
(Construction of oil and gas processing industry)
BY
ALAGARSAMY NAVANEETHAKRISHNAN B.E, M.TECH
15882005
23-10-2015
SUPERVISOR
Dr. NICOLA NAISMITH BSC HONS, MRICS

FACULTY OF DESIGN AND CREATIVE TECHNOLOGIES
AUCKLAND UNIVERSITY OF TECHNOLOGY
TE WANANGA ARONUI O TAMAKI MAKAU RAU
SCHOOL OF ENGINEERING
MASTER OF ENGINEERING PROJECT MANAGEMENT
Name ALAGARSAMY NAVANEETHAKRISHNAN
ID Number 15882005
Paper Name PROJECT IN ENGINEERING PROJECT MANAGEMENT
Assignment Project report : STRATEGIC HUMAN RESOURCE MANAGEMENT
Number of words (excluding appendices) 14025
• Please read and tick the boxes below before handing in your assignment
• If you are uncertain about any of these matters then please discuss them with your lecturer. Assignments will not be
accepted if this section not completed.
Where I have used someone else’s words or images, we have clearly indicated this by putting them inside speech marks
(if appropriate) and adding an in-text reference
Where I have used other people’s ideas or writing, we have clearly indicated this by putting them into our own words
and adding and adding the reference at the end of the sentence/paragraph.

Other than the above, this assignment
IS NOT copied from another student or previous assignment 
IS NOT directly copied from books, journals or other materials 
IS NOT cut and pasted from the internet 
HAS NOT been handed in by one of us or anyone else in any other course 
HAS NOT been done by someone else (e.g. friends, relative, professional) 
I agree to this assignment being used (or copied) for academic purposes which shall include amongst other things,
external moderation, promotional work, sharing with fellow colleagues and others works of good quality (and if I have
any concerns, I will keep the lecturer informed)
Signature Date…23/10/2015…

DECLARATION
This research project report has been written by me and represents my own work. This work
has not previously been submitted by myself or anyone else. All sourced information has
been properly acknowledged and referenced. I have maintained and will continue to maintain
the confidentiality of any persons/organisations referred to in this research project report. I
permit this assessment to be copied for academic processes (such as moderation). I have
retained a copy of this research project report electronically.
Signature
Date - 23.10.2015

ABSTRACT
All organizations in this world irrespective of their size need to adopt some strategies to
achieve its organization goals. More often questions arise from reader’s point of view, why
strategic human resource management (SHRM) is essential for an organization. In such cases,
many researchers investigated and revealed their studies about SHRM in marketing industry,
civil construction industry and production industries but no author has revealed their research
studies about strategic human resource management practices in construction of oil and gas
processing industry.
Strategic human resource management (SHRM) suggests a strategic framework to manage
the people in the organisations and that helps the organisations to improve the performance,
increase the productivity, innovations and competitiveness. This study attempts to analyse
the key concepts of SHRM’s planning and implementation in oil and gas processing plants in
areas of recruitment and selection process, performance management process, reward
management process and training and development processes in the organization. The overall
aim of the research project was to explore the types of HRM strategies used by oil & gas
construction industry and suggest best practices to improve their organisation’s performance.
The objectives of the research project were:
• The research project aims to critically review the literature concerning strategic
human resource management in construction industry, which involves the matrix of
strategic planning process, strategic recruitment and selection methods, strategic
performance management process, strategic reward management process, strategic
training and development process.
• Secondly, it identifies the current practices of strategic human resource management
process in construction of oil and gas processing plants and analysis the gaps in the
current SHRM.
• Finally the research reviews and analyses the current practices and recommend the
best SHRM practices for construction of oil and gas processing industry to align with
their business objectives and to enhance their business performance.
The study explored the current SHRM practices in construction of oil & gas processing
industry using qualitative methods. The semi-structured interviews were conducted to the HR

Manager, Project Manager, Construction Manager, Construction Engineer, Supervisors and
to the Manual employees (foreman, technician, labour). The results of the interviews were
analysed to find the commonalities and differences of each interviewee. Identified the gaps in
the current SHRM practices and suggested best practices to enhance their SHRM practices to
achieve their business goals strategically.

ACKNOWLEDGEMENTS
First I would like to thank God for giving me strength and knowledge. I would like to thank
my supervisor Dr. Nicola Naismith (Senior Lecturer) for invaluable support, encouragement
and guidance throughout the research project process. Then I would like to thank Professor
John Tookey, Dr. Dave Moore and Dr. Jeff Seadon for their invaluable support and
encouragement during my earlier studies in Auckland University of Technology.
I would like to acknowledge the support of the organisation and all the individuals in the
organisation spent their invaluable time and provided resources to do this research project,
without this input this research project would not have been possible.
Finally I would like to thank my dad, mom, wife, my son and my friends for their emotional
support and practical advice.

Table of Contents
Chapter 1....................................................................................................................................1
1.0 Introduction..........................................................................................................................1
2.0 Methodology........................................................................................................................2
3.0 Research Question ...............................................................................................................4
3.1 Research Objectives .........................................................................................................4
Chapter 2....................................................................................................................................5
4.0 Literature review..................................................................................................................5
4.1 SHRM Planning ...............................................................................................................5
4.2 Strategic Recruitment.......................................................................................................7
4.2.1 Recruitment Activities...............................................................................................8
4.2.2 Internal Recruitment..................................................................................................9
4.2.3 External Recruitment...............................................................................................10
4.2.4 Recruitment Policy ..................................................................................................11
4.3 Strategic Selection..........................................................................................................11
4.3.1 Steps to be followed in Selection Process ...............................................................12
4.3.2 The Selection Decision............................................................................................13
4.4 Strategic Performance Management & Measurement ...................................................14
4.4.1 Rater of Employee Performance..............................................................................15
4.5 Strategic Training and Development..............................................................................16
4.5.1 Orientation...............................................................................................................17
4.6 Rewarding Human Resources ........................................................................................18
4.6.1 Employee Motivation ..............................................................................................18
4.6.2 Money and Motivation ............................................................................................19
4.6.3 Pay -for-Performance ..............................................................................................19
4.6.3 Compensation schemes............................................................................................19
4.7 Conclusion......................................................................................................................20
Chapter 3..................................................................................................................................21
5.0 Results & Discussion.........................................................................................................21
5.1 HRM Planning Strategies...............................................................................................21
5.2 Recruitment & Selection Strategies ...............................................................................22
5.3 Strategic performance Management & Measurement....................................................24
5.4 Strategic training & development ..................................................................................26

5.5 Rewarding human resources ..........................................................................................27
Chapter 4..................................................................................................................................29
6.0 Recommendation & Conclusion........................................................................................29
7.0 Limitations of the research.................................................................................................32
8.0 References..........................................................................................................................33
9.0 Appendix............................................................................................................................37
Appendix A1: Staff requisition form (SRF).........................................................................37
Appendix A2: Application form ..........................................................................................39
Appendix A3: selection method...........................................................................................40
Appendix A4: Employee performance evaluation form ......................................................41
Appendix B1: Strategic human resource planning...............................................................44
Appendix B2: Strategic recruitment & selection process ....................................................45
Appendix B3: Strategic performance management & measurement...................................46
Appendix B4: Strategic training & development.................................................................47
Appendix B5: Rewarding human resources.........................................................................48
Appendix B6: Research questions and interview questions.................................................49
List of figures
Figure 1: Research Framework..................................................................................................2
Figure 2: Model of Strategic human resource planning.............................................................6
Figure 3: model of Strategic human resource planning.............................................................7
Figure 4: Successive Hurdles Method .....................................................................................14
Figure 5: model of Strategic performance management & measurement ...............................15
Figure 6: Herzberg two factor model.......................................................................................19
Figure 7: performance appraisal and training needs................................................................30

P a g e | 1
Chapter 1
1.0 Introduction
The concept of Human Resource Management and strategic
management provide the basis for Strategic Human Resource Management. Wright and
McMahan (1992) explained that the field of human resource management has integrated with
strategic management process to form a new discipline referred to as strategic human
resource management (Wright & McMahan, 1992). Michael Armstrong (2011) explained that
strategic human resource management is an approach for managing human resource that
helps organizations to achieve long- term goals and objectives with a strategic framework
(Armstrong, 2011b, p. 48). Terhalle (2009) argued, many researchers assume that the HRM
strategy of an organization corresponds with the implementation of those strategies.
However, those strategies are implemented without clear direction. This leads to big
difference between the developed strategy and actual implementation. A well-developed
HRM practices is equally good to contribute in this current technology world that needs to be
implemented due to competitive business growth. The responsibility for the SHRM
implementation lies with the line managers of an organization since they have to execute the
HRM practices on the work floor. The line manager and HR manager participation is
important while setting the human resource objectives like strategy development followed by
resource planning, HRM outcomes and evaluating the performance strategies. In short,
human resource professional are responsible for the design and development of HRM
practices in an organization, while the line managers are responsible for implementation of
these practices (Terhalle, 2009, p. 125).

P a g e | 2
2.0 Methodology
The academic research project follows qualitative research methods. The
qualitative content analysis is one of the best method used to analyse the transcripts. Research
using qualitative content analysis mainly concentrates on the attributes of language as
communication with attention about the content (Tesch, 1990) (McTavish & Pirro, 1990). In
this research method, the data’s are collected in verbal, text or in the electronic form from
interviews, open-ended survey questions or from books and manuals (Kondracki & Wellman,
2002). The aim of the research project is to do in-depth analysis of strategic human resource
management practices followed in construction of oil and gas processing industry. A
framework has been designed to outline the sequence of the research events explained in
figure 1.0. Because it is important to understand the relationship between the aim and
objectives, expected outcomes, and the data collection and analysis methods employed.
Figure 1- Research Framework
The research project report starts with collecting literatures data about strategic human
resource and its core components. The literature review covers the keys elements of strategic
human resource management such as strategic human resource planning (SHRP), strategic
recruitment and selection, strategic performance evaluation, strategic human resource training
and development process and employee motivation. After critically reviewing the literature
ideas, a set of questions were formed from the literature review to conduct the semi-

P a g e | 3
structured interviews to the employees in organisation. The semi-structured interviews were
highly structured with questions and will go on open conversation with manual and non-
manual employees of the organisation (Kvale, 1996). The semi-structured interviews are
conducted in two phases. First phase interviews has been conducted to the HR manager and
project manager of the organisation to collect the relevant data for the research questions
shown in Appendix B6. The second phase interviews are conducted to the construction
managers, manual and non-manual employees of the organisation to collect the relevant data
for the research questions shown in Appendix B6. The data has been collected in regular
intervals and the contents of the transcripts were analysed to allow the commonalities and
differences that existed between each interviewee. A simple table shown below to collect the
data from employees and to check for commonalities and differences
SHRM
planning
Recruitment
and selection
Performance
evaluation
Training and
development
Employee
motivation
HR manager
Project
manager
Line manager
Engineering
supervisor
Manual
employees
Through this approach, the results of the interviews are tabulated and analysed for the
commonalities and differences between one and another interviewee (Naismith, 2007). Then
discussed elaborately about the related information’s got from the employees in the
organisation. Clearly sorted out the gaps and then compared with the literature ideas. At last
the research project suggested some best practices to enhance the SHRM in construction of
oil and gas processing industry in chapter 4.

P a g e | 4
3.0 Research Question
What are the strategic human resource management practices to be followed in the
construction of oil and gas processing plants?
3.1 Research Objectives
• The research project aims to critically review the literature concerning strategic
human resource management in construction industries which includes planning,
recruitment and selection, performance management, reward management, training
and development and employee welfare.
• Secondly, to identify the current practices of strategic human resource management
process in construction of oil and gas processing plants.
• Finally review and analyse the current practices, find the gaps and recommend the
best SHRM practices for construction of oil and gas processing plants to align with
their business objectives.

P a g e | 5
Chapter 2
4.0 Literature review
4.1 SHRM Planning
Raymond J Stone stated that, setting an organisation mission
statements and key objectives is an important task. According to the developed organization
strategy, the human resource department focuses on planning the human capitals. The
strategic human resource planning involves in acquisition of potential workforce, employee
skill development and the role extends until exit of an employee from organization. It is not
only the HR activity, the project manager and department managers are also involved in it.
HR managers and project managers focus on linking all HR activities with organizations
strategic objectivities (Stone, 2005, p. 47). Parker and Caine (1996) suggested that strategic
human resource planning (SHRP) is about identifying and ensuring that the correct amount
and mix of employees obtained and their availability at the right place at the right time (B.
Parker & Caine, 1996, p. 30) . Beardwell (2004) defined the SHRP as, “ it is the process of
identifying organization’s present and future human resource needs, developing and
implementing the strategic plans to meet these requirements and monitoring the overall
performances” (Beardwell, 2004, p. 159). Braton and Gold (2003) writes that SHRP is the
process of systematically forecasting the future requirements and supply of employees and
use of their skills within the strategic objectives of the organization (Bratton & Gold, 2003, p.
191). Raymond J Stone commented that project manager will review the organization
objectives and strategies to determine what job needs to be done and by whom. According to
that, an organisational structure will be produced and employee will be allocated for the
designations. The project manager and department managers decide the manpower
requirements to finish the project. They follow quantitative and qualitative approaches to
match people with jobs in terms of numbers, abilities, knowledge, skills and qualification and
they produce a clear job design and job specifications. In turn to that, the human resource
department produces its strategic plans towards staffing, selection, performance evaluation,
training and development, reward and benefits, motivation and employee departure (Stone,
2005, p. 46) . Torrington, Hall & Taylor (2005) stated that the demand for man power is
influenced by company strategies and objectives by examining the environment and its
requirements. According to that, the current employees will be mobilized from the old project

P a g e | 6
to the new projects. If the man power demands are high for the proposed new project then
with the help of HR professionals the organization will search for the required skills in the
labour market (Torrington, Hall, & Taylor, 2005, p. 51). Marchington and Wilkinson (2002)
addressed that SHRP provides a method for predicting labour requirements against internal
and external supply in terms of numbers, knowledge, skills and attitudes (Marchington,
Wilkinson, & Sargeant, 2002, p. 280). Raymond J stone suggested, the human resource
manager should have clear idea about the future organization requirements and determine
from where they will be obtained. The HR manager should follow three sets of forecast
methods
• Estimate the demand for manpower within the organisation.
• Forecast of the supply of external human resources.
• Forecast of the supply of human resources available within the organization.
A strategic human resource planning model is shown below in Figure 1 describes, the
HR professionals are in need to evaluate and determine number and types of jobs that to be
filled and they produce a demand for the required man power number with expected skills,
qualification, past work experience and employee performance in the past (Stone, 2005, pp.
46-52).
Figure 2: Model of Strategic human resource planning (Stone, 2005, p.51)

P a g e | 7
Torrington et al., suggested a model (figure 2) for SHRP which describes, analyse the
organization’s environment (strengths, weakness, opportunity and threats) and determine the
organizational objectives and strategies. Fulfilling the project manpower supplies by
analysing the internal manpower status, if the demands are high then assess the external
manpower supply market (Torrington et al., pp. 51-54) .
Figure 3: model of Strategic human resource planning (Torrington et al., p. 51)
Gardner & Palmer commented, the outcome of the planning will be(Smith, 1956)
• The company will get the right people in the right place
• They will placed in right designations at right time
This will give positive outcomes to the organization in terms of productivity, profitability,
employee motivation, employee job satisfaction, employee performance, employee
competence and employee well- being (Gardner & Palmer, 1997, pp. 269-272). Beardwell
commented that the integration of SHRP practices with the organization business strategy
will produce better organizational performance (Beardwell, 2004, pp. 180-181).
4.2 Strategic Recruitment
Recruitment and selection strategies flow eventually from the organization’s mission and
strategic objectives (Nankervis, Compton, & Baird, 2002). Salaman, Storey & Billsbery
(2005) stated that recruiting and selecting new talented staff is a core HRM activity in an
organization. Recruitment is the process of seeking and attracting a pool of qualified
candidates for the job vacancies while selection is the process of choosing the best candidate

P a g e | 8
who meets the organization requirement (Salaman, Storey, & Billsberry, 2005). For Miller
(1984) the purpose of strategic ‘staffing’ is to identify and choose the talented employees
who will best run the organization and business objectives in the long run (Miller, 1984, p.
68). The role of the HR department is to analyse and select an individual who is well
qualified, highly motivated and able to work alongside colleagues and likely to remain in post
for reasonable time. Recruiting and selecting the best applicants makes an anticipate changes
in the organization environment. Strategic recruitment does this by linking the recruiting
activities to the organizations business objectives. The human resource planning team
sketches the number and type of jobs to be filled. The line manager will clearly give the
details about the requirements including job description and job specification to the HR
department personals(Stone, 2005, p. 188). Bresnan (1985) found that in construction
industries the line managers are directly involved in the selection of employees and
employment issues. The recruitment and selection decision of manual and non-manual
employees for the construction industry was done by line manager aligned with HR
professionals (Bresnen et al., 1985). Drucker & White (1994), mostly in private sector
construction industries the line management covers six areas namely pay and benefits,
recruitment and selection, training and development, industrial relations, work expansion and
reduction are the Primary responsibilities of line management and HR department. Thus the
HR manager will make different steps for selection process(J Druker & White, 1994) .
4.2.1 Recruitment Activities
Mathis & Jackson (2011), HR manager should undertake some necessary methods to perform
as follows
Find out and sort out the organisations long-term and short-term HR needs.
• Keep aware to changing conditions in the labour market.
• Develop suitable recruitment advertisements.
• Maintain a proper record about the number and quality of applicants from each
recruiting resource.
• Follow up on applicants to evaluate the efficiency of the recruiting effort (Mathis &
Jackson, 2011, p. 189).
Franco and Diaz gave an action plan for the strategically integrated recruitment and selection
systems they are:

P a g e | 9
• Analyse, identify and formulate the core values and capability of the organization.
• Establish the job profiles based on core values and competence.
• Evaluate the validity of job profiles and prepare a policy for the recruitment and
selection process which should meet organization’s requirements.
• Communicate those policies to the line manager and get the feedback from them.
• Finalise the policy and prepare the procedures for recruitment and selection process.
• Execute the action plan (Luisa Arenas Franco & Iniguez Diaz, 1995).
4.2.2 Internal Recruitment
Mathis & Jackson stated, whenever the job vacancy exits, the first replacement source to
consider is within the organization. Most of the organizations have a policy of filling the
vacancy through internal transfers or by promoting the employees to the higher positions
(Mathis & Jackson, 1997, p. 220). Newell & Shackleton (2000), many organizations favours
to invite applications from internal employees before they look to their external labour
market for new candidates. Internal recruitment will help organizations to save the hiring cost
and efficiency gains can be made because internally recruited employees clearly know the
organization goals and its culture. So they will get adopted easily into the new positions than
people being brought from outside. The main disadvantage is that only few applicants will be
able to apply for the position that it permits an organization to consider (Shackleton &
Newell, 2000, pp. 116-117) .Raymond J Stone (2005), clearly plotted the advantages and
disadvantages of internal recruitment
Advantages:
• Candidates clearly know about the organization and its strength and weakness.
• Employee morale and motivation enhanced.
• Training cost will be reduced.
• Can generate succession of promotions.
• Return on investment will get increased.
Disadvantages:
• Excellent training and development program is necessary.
• System can become intrusive.
• Employee infighting for promotions can affect morale.
• Employee promoted beyond the level of capability (Stone, 2005, p. 192) .

P a g e | 10
Organization use different techniques to locate skilled internal candidates and to inform
existing employees about the job openings and opportunities (Stone, 2005, p. 191).
Computerised Record System:
The HR manager will have the data bank in the computer which contains personal details,
qualification details and work history of each employees. This permits the HR manager to
quickly locate potential candidates within the organization after consulting the project
manager and getting approval from him (Stone, 2005, p. 191).
Job Posting:
Sheila Connelly (1975) & stone (2005), the principle of job posting is to inform the internal
employees about the job vacancies via computerised positing programs, bulletin boards,
newsletters and personal letters which make the internal employees to match the job vacancy
with their skills, qualification and experience. Successful job posting programs have the
following characteristics
• The job vacancy information is posted in information boards or advertised so that the
interested employees are likely to see them.
• All internal promotions and transfer opportunities are posted
• Before external recruitment, all job openings are posted.
• The job vacancy is described with the job specification and the necessary knowledge,
skills, qualification and personal recruitment will be posted. The interested internal
employee who meets the requirements as briefed can apply for the positions (Stone,
2005, p. 191) (Connelly, 1975).
4.2.3 External Recruitment
The HR department will use various approaches to locate and attract external candidates. The
HR manager should know which recruitment channel is likely to be most successful in
targeting particular labour group. The approach can be made through government
employment agencies, educational institutions, private employment agencies, recruiting
consultants and even use popular sources like advertisements and employee referrals (Stone,
2005, p. 192). Torrington et al., briefed that, if the employer has decided that external
recruitment is necessary, the employer must prepare the cost- effective and appropriate
method for recruitment activities. Different organizations use different recruitment methods

P a g e | 11
at different times (Torrington et al., 2005, pp. 125-126).Raymond J Stone (2005) plotted
some advantages and disadvantages of external recruitment
Advantages:
• The pool of talent is bigger.
• Fresh skills, talents, new insights and know-how can be introduced in to the
organization.
• It is often cheaper and easier to hire employee from outside the organization.
Disadvantages:
• Attracting and selecting new employee is more difficult.
• New employee training and orientation takes longer.
• Morale may suffer from existing employees.
• Cannot guarantee the employee performance (Stone, 2005, p. 192).
4.2.4 Recruitment Policy
An organizations recruitment policy provides the framework for recruiting action and it
reflects the organizations recruitment objectives and culture. In general the HR manager and
the line management follow those policies for the recruitment process. The recruitment
differs from one organization to other organizations(Stone, 2005, p. 189). In construction
industry sector there is a sharp difference in policies employed for manual and non-manual
employees. According to the labour market requirements the policy was employed for the
various categories of employees. In many organizations the employees are recruited in
contract basis initially with the collective agreements (Janet Druker, White, Hegewisch, &
Mayne, 1996, pp. 412-413).
4.3 Strategic Selection
Selecting the skilled and talented employees for the company is a part of organization’s HRM
objectives. Strategic selection aligns employment activities with the organization’s business
objectives. According to the project requirements the selection will be made (Williams &
Dobson, 1997, p. 242). Pfeffer found that high-performance organization’s employ accurate
selection procedures that have been refined and developed over time to identify the people
with attitudes and skills they required(Pfeffer, 2005, pp. 74-79) . He further states that the
poor selection decisions results in

P a g e | 12
• Increased training time
• Labour throughput
• Absenteeism
• Accidents
• Industrial unrest
• Job dissatisfaction and poor performance(Pfeffer, 2005, pp. 73-74)
4.3.1 Steps to be followed in Selection Process
Selection process and procedures differs from organization to organization. Selection process
will be conducted according to the company objectives, culture and size, type of industry,
state of labour market and the type. The selection steps shown below represent the full scale
of selection process (Stone, 2005, p. 229). Derek Torrington, Laura Hall & Stephen Taylor
(2005) stated that selection is a two- way process in which the potential employer and
potential employee will make selection decisions. The selection decision can be made by
integrating all the selection information available. Most of the organizations use different
selections methods like application forms, interviews, tests, assessment centres and
references (Torrington et al., 2005, p. 141).
Step 1: Reception of Applicants
The importance of giving the applicants a positive feeling at this stage cannot be
overemphasised. Disrespect, lack of interest at the reception may cost the organization a good
applicant and encourage negative attitudes about the company (Stone, 2005, p. 229).
Step 2: Telephone Screening
When there is large number of applicants are expected, primary screening may be done over
the telephone to abstain from filtering through many applications. Applicants can be asked
few simple questions about the job requirements (Stone, 2005, p. 230). According to the
Chartered Institute of Personnel and Development survey, nearly 28% of the organizations
used this method for selection (CIPD (2003)).
Step 3: Preliminary Interview
The initial screening interview is conducted by organizations is to check the employee skills,
language, qualification and willingness (Stone, 2005, p. 230).

P a g e | 13
Step 4: Application Form
The application form is the primary source for all employment information for the use in later
steps of the selection process. It is also a valuable tool used for filtering out the unqualified
employees (Heneman, Heneman, & Judge, 1997). According to the CIPD survey, it is found
that, nearly 80% of the organization used this method in selection process (CIPD, 2003).
Step 5: Tests
Procedures in conducting test for applicants differ from organizations and its nature of
selection process. Each organization will follow the own company policy when conducting
tests (Posthuma, Morgeson, & Campion, 2002, p. 80). HR managers need to demonstrate to
job applicants about the selection techniques employed. Some organizations conduct test in
different aspects like Employment tests, interest tests, aptitude tests, intelligence tests and
personality tests (Bauer, Maertz Jr, Dolen, & Campion, 1998).
4.3.2 The Selection Decision
Torrington et al., (2005), suggested a useful tool to do the selection process. They introduced
the matrix format of selection in which each employee will be assessed and selected against
each selection criteria (Torrington et al., 2005, p. 158). The selection decision matrix is
shown below
Selection
criteria
Candidate 1 Candidate 2 Candidate 3 Candidate 4
Criterion A
Criterion B
Criterion C
Criterion D
General
Comments
(Torrington et al., 2005, p. 158)
Raymond J stone (2005) writes that some organizations use successive hurdles approach. In
successive hurdles approach, the selected applicants are ranked according to their
effectiveness and intelligence. Hurdles approach is very economical. A successive hurdles
approach is shown below

P a g e | 14
Successive Hurdles Approach
Figure 4: Successive Hurdles Method
(Stone, 2005, p. 255)
4.4 Strategic Performance Management & Measurement
Storey and Sisson define performance management as “an interlocking set of policies and
practices which have as their focus the enhanced achievement of organizational strategic
objectives through a concentration on individual performance” (Storey & Sisson, 1993).
Performance management and performance appraisal are typically designed on a central basis
by HR function and require each line manager to appraise performance of their staff. These
measurements are done in annual basis (Torrington et al., 2005, p. 259).The evaluation of
organizational and employee performance permits the manager to check that the strategic
objectives are valid, are being successfully communicated throughout the organisation and
are being achieved. In short, performance management ensures that the jobs are designed
accurately and that eligible persons are hired, trained, rewarded and motivated to achieve the
organizations business objectives. By managing the better employee performance, the
organization gains better cash flow, productivity increases and overall better financial
performance (Mcdonald & Smith, 1995). Baron & Armstrong state that the nature of
measuring employee performance in organization will increase the effectiveness of the
organization, by improving the people performance who work in them and by developing the
capabilities of teams and individual contributors(Baron & Armstrong, 1998, pp. 38-39).
Lebas (1995) writes that the difference between performance measurement and performance

P a g e | 15
management, performance measurement includes measures based on the key performance
indicator (KPI) set and key success factors which includes: measures to track the past
achievements; measures of output and input, Whereas performance management involves in
issues as training, teamwork, management method, employee involvement and rewards
(Lebas, 1995, pp. 23-35). Appraising and managing performance are the critical management
responsibilities and it’s a vital part of the organizations strategic management process.
Performance appraisal system are impermanent and divorced from organisations business
strategy when comes to practices. Many companies do not link their strategic objectives with
individual employee performance criteria (haygroup, 2001; Nankervis & Leece, 1998).
Figure 5: model of Strategic performance management & measurement (Stone, 2005, p. 295)
4.4.1 Rater of Employee Performance
In most of the organizations, evaluation of employee performance is done by immediate
supervisor. In fact, performance appraisal can be done by anyone who is familiar with the job
responsibilities and performance objectives and he has to know –how to distinguish
behaviours that produce effective or ineffective performance. Consequently, immediate

P a g e | 16
supervisors, peers and employee themselves can all provide information on employee
performance. The major types of performance appraisal system used in the organisations are
ranking and grading (Scarpello, Ledvinka, & Bergmann, 1995, p. 608). In 1992, Kaplan &
Norton introduced a ‘balance scorecard’ approach to measure the employee performance in
the organization (Kaplan & Norton, 1992, pp. 71-79). Ranking is one of the methods used for
rating the employee’s performance in the organisations. Line Managers and supervisors are
the responsible persons to rate the employee performance and by following such criteria’s
such as job knowledge, quality of work, quantity of work and attendance of the employee
(Stone, 2005, p. 295). Employee performance levels can be graded such as superior, good,
acceptable, marginal and unsatisfactory. Employee’s performance is compared with the
grade definitions, and then the employees are placed in the grades to describe their
performance (Grote, 1998, p. 4).
4.5 Strategic Training and Development
Garger (1999) writes that, implementing training and development programs for employees
has become one of the important aspects of human resource department in an organization.
Implementing training and development programs will boost the organization’s productivity
and international competitiveness. Now a days, most of the employees working in an
organization looking for their growth and learning opportunities to improve their
employability (Garger, 1999, pp. 10-17). Pfeffer (1998) state that, to maintain and improve
the employee performance and productivity then the organization must implement and
emphasis training and development programs (Pfeffer, 1998, p. 85). Armstrong writes that,
learning and development is part of strategic human resource development (SHRD) practices
which has policy and procedures and by implementing learning and development programs
will help the organization to achieve its business goals. The main thrust of SHRD is to
provide an environment in which the employees are encouraged to learn and develop their
skills (Armstrong, 2011a, p. 248). Keep (1989) says that, one of the primary objectives of the
human resource management is to retain the talented employees and their commitments to the
organization should be secured (keep, 1989, pp. 109-125). The HR manager of an
organization should rise the question about,
1. What are the strategic business objectives of the organization?
2. What steps to be taken or what needs to be done to develop the employee skills and
knowledge?

P a g e | 17
A well-designed human resource development programs will help the organization to
increase their employee performance and productivity (Stone, 2005, p. 331). Training
typically emphasises immediate improvements in job performance and development, aims to
prepare the employee for the future job responsibilities (Werther & Davis, 1996, p. 282). The
new employees will be given entry level training with the skills necessary to meet the
performance standards of the job. If employee performance and productivity is high, then he
will be trained and developed with additional skills to promote him for the higher positions.
This encourages the employee personal growth. Measuring the performance of employees
and highlighting their weakness in job skills and giving skill oriented training to improve the
employee performance. Few organizations linked performance appraisal information with
training (Taylor & Driscoll, 1992, pp. 593-603).
4.5.1 Orientation
Employee orientation is a key part of training and development. Newly recruited employee
should be given training on organisational activities, its culture and how to do their jobs. By
giving training about the job skills will make the new employees to perform well (Wanous &
Reichers, 2001). Researchers have found that, providing orientation to the new employees
will make positive attitudes, job satisfaction and sense of commitment at the start of
employment relationship (Halton, 1996).
Formal Orientation Programs:
If the numbers of employees are more for the orientation program then it is worthwhile
having a formal orientation program. In formal orientation programs the company can
include the presentations from CEO, Project managers, public relation materials such as
corporate videos and presentation from recent entrants about their experiences working in the
organisation. The major benefits of conducting such orientation will reduce the individual
anxiety, employee can share their experience and opportunity to rise matters of concern
(Stone, 2005, p. 352) .
Informal Orientation:
Some organisation prefers informal orientation approach to employee orientation, believing it
makes for a more relaxed and personalised introduction to colleagues. Mentors or sponsors
will act as adviser for the new employee in this approach (Stone, 2005, p. 352) .

P a g e | 18
4.6 Rewarding Human Resources
Armstrong (2002) defines reward as ‘how employees are rewarded in accordance with their
value to the organization. It is concerned with both financial and non-financial rewards and
embraces the plans, strategies, policies and processes used by the organization to develop the
and maintain the reward system’ (Armstrong, 2011b). Reward strategies differ from one
organization to the other. Of course, similar methods and aspects of reward will be covered in
the strategies of different organization but they will be treated differently in accordance with
variations between organizations in their context, strategies and cultures (Armstrong &
Murlis, 2004, p. 33). In construction industries, a successful reward strategy is one that gives
clear guidance on development planning and implementation and achieves its objectives
when implemented. It’s the duty of HR to develop and initiate new reward policies and
practices but the line manager has the main responsibility for implementing them
(Armstrong, 2011b, p. 270).
4.6.1 Employee Motivation
Cowling (1996) commented strategic business objectives seeking competitive advantage
through higher performance and higher productivity can be achieved only if employees are
strongly motivated to perform. Job design, the system of rewards, management style,
corporate culture, organization structure and change management all interrupt on employee
motivation. If management downgrades employee motivation, then the organization will face
risks in executing their business objectives. Employee motivation is one of most challenging
aspects of HRM. It shows itself through employee morale, output, absenteeism, effort, labour
turnover, loyalty and achievement (Cowling, 1996, pp. 296-302). Emery & Philips (1976)
found that Herzberg’s two factor theory has gained wide acceptance in management circles
and it has a major impact on job design.
Motivators are higher order achievements like recognition, intrinsic interest in the work,
responsibility and advancement. These determine job satisfaction and performance.
Hygiene factors are the lower order needs which are come across by pay, working
conditions, interpersonal relations, supervision, company policy and administration. Herzberg
argued that these factors are not the real employee motivators. Job satisfaction is the true
employee motivators. If the employee satisfied with the job then the performance gets
increases and productivity also increases (Emery & Phillips, 1976).

P a g e | 19
Figure 6: Herzberg two factor model
4.6.2 Money and Motivation
Money plays an important role in employee motivation. Many researchers argue that money
is not only the motivator in the organizations. But theories like equity, expectancy and
reinforcement theories all show money as the motivator in organizations (Ivancevich, 2001,
pp. 298-299). Employees compare money earned to determine how they rank. Thus the result
of such ranking can affect the employee motivation(Milbourn, 1980, p. 33) .
4.6.3 Pay -for-Performance
Raymond J Stone (2005), the relationship between pay and performance is especially
effective, when an individual employee performs well in the project and achieves the target
within the given time period then that employee will be rewarded for his good performance.
The line manager and supervisor is the responsible to evaluate and select the best performer
in the project (Stone, 2005, p. 493). In addition to the pay for performance at the individual
level, there is a considerable interest in pay-for-performance on small groups. Those types of
rewards are planned by the top management in the organization (G. Parker, McAdams, &
Zielinski, 2000, pp. 37-38).
4.6.3 Compensation schemes
Medical insurance: Raymond J Stone (2005) says that some organisations provides basic
medical insurance for the employees and their families. It covers all the health allied bills of
the employee and families (Stone, 2005, p. 519). Organisations are started focusing more on
managing healthcare by creating awareness to the employees about the wellness health
programs to educate and motivate employees to adopt healthier lifestyles (Wachsman &
Swanson, 1992, p. 11).

P a g e | 20
Payment for time not worked: This category includes annual leave, sick leave, public
holidays and educational leaves. On those categories the employees are paid even if they are
not working in the organisation(Stone, 2005, p. 520). .
Retirement benefit plan: Some organisations have retirement benefit plans for the
employees. The organisation will take 1.5% of the monthly salary amount from employees
and return it lump sum at end of the employee service period. These type of plans would
benefit the employees (Gibbs, 2003, p. 91).
4.7 Conclusion
Many literature ideas has been critically reviewed to understand the concepts of strategic
human resource management and its core components in the different construction industry
sectors. Different types of organisations in this world follows its own SHRM policies and
procedures for staffing and managing people and those strategies are aligned with their
organisation business goals and objectives. The study gave the clear concepts and ideas about
the strategic human resource management practices in human resource planning involves in
quantitative and qualitative analysis for manpower requirements, recruitment and selection
methods involves in analysing the external and internal manpower resources, performance
management and measurement methods, training and development process and reward
management process. It is clearly understood that the HR management and the line
management team should work jointly to enhance the SHRM and its practices. Therefore,
based on this discussion of literature, few research questions were designed, and selected an
oil and gas construction organisation to analyse the status of SHRM practices.

P a g e | 21
Chapter 3
5.0 Results & Discussion
This section outlines the results and discussion part of the research study in relation to the
core components of SHRM, human resource planning, recruitment & selection strategies,
performance management & measurement strategies, training & development strategies and
employee motivation methods. The interviews were semi-structured in nature and undertaken
to the human resource manager, project manager, construction manager, construction
engineers, supervisors and manual employees in the organisation.
5.1 HRM Planning Strategies
Results
Appendix B1 shows the results of the strategic human resource planning in the organisation.
Whereas the interviews has been conducted to the top management personals like HR
manager, project manager and the department construction managers. In that, the results are
similar in attending group meetings, reviewing the scope of the project and client
requirements, discussion about the cost, starting time and deadlines to finish the project,
analysing the manpower demands, sharing information, analysing the internal manpower
supply and requirement of external resources. While developing and setting the policy and
procedures for the organisation the project manager and department construction manager
had not participated with the HR management.
Discussion
The initial plan involves taking part in the project execution team meeting involving project
Director, Project Manager and Department Managers; in which a detailed mobilization plan
is drawn for HR’s implementation. The organisation follows the quantitative and qualitative
approach at the initial stage of the project. In these approaches, the HR manager and HR
professionals uses statistical and mathematical techniques to predict the manpower
requirements. To calculate the total manpower requirements the HR professionals designed
and developed a manpower requisition application form showed in Appendix A1. The
project manager and the department construction managers manipulate the manpower
requirements with the help of planning engineer and fill the manpower request form by
stating the requirements in numbers, position, category, qualification, experience and salary

P a g e | 22
scale. Once receiving the manpower requisition forms, the HR professionals forecast the
demand for manpower to complete the project successfully. This supports the work of
Raymond J Stone (2005) regarding quantitative and qualitative approach in planning for
human resources. Then they analysed the internal sources available within the organisation to
fulfil the project requirements. If the project manpower requirements are high then they
search for the talented professionals in the external labour market. This statement supports
Torrington et al., (2005) and Marchington and Wilkinson (2002) regarding analysis of
internal and external manpower supply.
Conclusion: The research questions (Q1 & Q2) are clearly supported in this part because the
level of participation of project manager and department construction managers during
planning with human resource department is high. But they are not involved in design and
developments of policies and procedures in the organisation.
5.2 Recruitment & Selection Strategies
Results
Appendix B2 shows the results of the strategies adopted by human resource department in
recruitment and selection process. The organisation has structured procedures for recruitment
& selection process. The interview has been conducted to the strategic managers and to the
senior construction engineer. The results obtained from the discussion is similar in all aspects
like mobilisation plans, internal & external recruitment methods, recruitment policy &
procedures, selection methods and selection decision making process within the organisation.
This supports the research question two (Q2) indicating that, according to the project
requirements recruitment and selection process will take place.
Discussion
A particular gas processing booster station construction project is taken for this discussion.
In that
Total man power of the project = 4191 employees
Internal transfers = 2558
Externally recruited = 1633

P a g e | 23
The HR manager stated that the organisation has the policy to accommodate internal
employees first. About 61% of the total manpower in a particular project are internally
transferred and remaining 39% of manpower is externally recruited. This shows that the
organisation mostly concentrated in internal transfer rather than external recruitment. This
clearly indicates that, to reduce the external recruitment cost the organisation preferred
internal transfers. This supports the work of Mathis & Jackson (1997), Newell & Shackleton
(2000) and Raymond J Stone (2005) regarding internal transfers and benefits. When
organisation plans for an external recruitment they follow certain policy and procedures.
Initially the organisation advertise about job vacancies in their company website. If they
require more manpower for the project then the organisation will select a private recruitment
agency and make a mutual agreement between them to hire the employees. Those employees
are hired on contract basis initially. This supports the work of Torrington et al., (2005) and
Raymond J Stone (2005) regarding job vacancy advertisements and recruitment through
private agencies. Initially the organisational develops a selection panel consisting of HR
professionals, Project manager, department construction managers and department senior
engineers to select the talented employees from the labour market. The interviews are
conducted by senior engineers with his team. Here the organisation follows two stages of
selection methods (appendix A3)
Stage 1: 1.application forms, 2. Personality test, 3. Communication, 4. Relevance of
education, 5. Job knowledge, 6. Practical skill test, 7. Knowledge of tools & equipment’s and
8. Safety awareness.
Stage 2: Background career history investigation & medical examination. This supports the
work of Henemen & Judge (1997), Raymond J Stone (2005) and Bauer et al., (1998)
regarding selection methods.
internal tranfer
61%
externally recruited
39%
100%
Recruitment
internal tranfer externally recruited

P a g e | 24
The organisation follows a band structure A to H where non-manual and manual employees
are separated. Band A to E categories are non-manual employees (managers, engineers,
office professionals and supervisors) and will have different pay scale. Band F to H
categories are manual employees (foreman, technicians, labour, helpers and drivers) and will
have different pay scales. The initial selection decision in this organisation is taken by the
group of members like project manager, construction manager, senior engineer and
superintend and final decision is taken by project manager by taking the advice from
department construction managers. This discussion clearly supports the successive hurdles
approach.
Conclusion: The research questions (Q3, Q4 and Q5) is clearly supported in this part because
the policies and steps followed in recruitment and selection process are highly effective in the
organisation but there is a minor change in the selection decision process found compared to
successive hurdles approach. The initial selection decision is taken by the line management
team and the final selection decision is in the hands of project manager in the organisation.
5.3 Strategic performance Management & Measurement
Results
Appendix B3 shows the result of performance management and performance measurement
strategies in an organisation. The interview has been conducted with the strategic managers,
department engineers and the department supervisors in the organisation. The results obtained
regarding the policy and procedures which the company follows, method used for measuring,
on what aspects the performance is measured, responsible person to measure the employee
performance, and performance measurement will be rated for team or individual and
measures taken by HR professional and line management on the poor performers. The result
obtained from each interviewee is almost similar apart from handling the poor performers.
The HR manager says that the poor performers have been picked up from each project and
they will be sent for on-site training to gain the knowledge about the work. In contrast, the
line management stated that the poor performers will be terminated.
Discussion
The organisation follows policies and procedures to rate the employee performance and to
manage the performance. The organisation measures the employee performance on annual
basis to rate the performance upon given targets achieved by employees and to check the

P a g e | 25
work efficiency, employee attitude & behaviour in the construction site. The HR
professionals in the organisation have designed and developed an employee performance
evaluation form shown in Appendix A4. The organisation uses ranking methods to rate the
employee performance in some categories such as job knowledge, productivity, quality of
work, commitment, initiative, dependability, planning, flexibility and co-operation. These
statements support the work of Storey and Sisson (1993), Torrington et al., (2005), Baron &
Armstrong (1998), Raymond J Stone (2005) and Lebas (1995) regarding performance
management and measurement methods and uses of measuring performance. Each
supervisor has a team of various hierarchical level working under him. While evaluating the
performance, the organisation is evaluating individual performance of each employee in the
construction site. The organisation follows a protocol to measure the performance. In that the
line manager of each employee will fill this evaluation form. Project manager rates the
performance for construction manager, construction manager rates the performance for
engineers and supervisors and at last the supervisor rate the performance of each employee in
his team. This is the method followed in this organisation. These statements support the work
of Scarpello (1995) and Raymond J Stone (2005) regarding ranking methods and
responsibilities for supervisors in rating the employee performance. In contrast, within the
organisation the HR management and the strategic line managers gave different answers
about the poor performers in the organisation. The HR management says, they analyse the
results and pick the poor performers and those poor performers will be sent for practical
onsite training to clear their doubts regarding the job and to increase their performance
parameters in future. But the line management says, having the poor performers in the
construction site will reduce the productivity and increases labour overheads so that they
recommend termination for the poor performers.
Conclusion: This research question (Q6) is partially supported. The organisation follows a
better policy and procedures to rate the employee’s performance in different categories. The
comments given by HR manager and line management team regarding poor performers is
totally different. This shows that the line management team is not aware of policy and
procedures of the organisation.

P a g e | 26
5.4 Strategic training & development
Results
Appendix B4 shows the results for training and development strategies in the organisation.
The answers given by the top management team regarding Technical Training for the fresh
graduates are similar. In contrast, the results obtained from top management and line
management employees are different in training for poor performers and staff development
programs. It shows that policies and procedures are created but not implemented in effective
way.
Discussion
A number of issues were discussed in this section including types of training & development
process undertaken, the plans and the policies that exists, formal orientation process for the
new employees and policies and procedures followed by the organisation for employee
orientation programs. The HR manager of the organisation clearly stated that the organisation
has the training and development methods to motivate the employees. The organisation
believes that by giving such learning opportunities to the employees based on their profile
which increases the productivity and overall performance of the organisation. This supports
the work of Garger (1999), Pfeffer (1998) and Armstrong (2011) regarding training and
development strategies. Based on the continuous performance in the projects, the employee
will be given job based technical training before promoting him to the higher positions. The
project manager and construction manager should recommend employee for additional
training and promotions. This discussion supports the work of Taylor & Driescol (1992
linking performance appraisal with training. However the project managers and construction
manager has not supported some activities like additional training for the poor performers.
This makes a big difference between the implementation and the actual policy and procedures
formed by the organisation. The low level employees are not aware of such process and this
shows the policy & procedures are formed but not implemented. The organisation is
conducting orientation programs for newly recruited employees on first day of their
employment. The formal orientation programs on Introduction about the company and its
operations, company’s quality management system, introduction about the cost centre
manager & project manager and at last safety orientation for the new employees. The HR
manager and his team are conducting the orientation programs. These statements partially
support the work of Wanous & Reichers (2001 and Raymond J Stone (2005) about formal

P a g e | 27
orientation programs. The HR professionals in the organisation are giving the orientation for
the new employees. An impressive thing about the organisation is, recruiting fresh graduates
and giving technical training to them. Those fresh graduate are employed temporarily for
three months (probation period). Upon their individual performance the graduates will be
appointed permanently in the organisation.
Conclusion: The research question (Q7 & Q8) is partially supported. The organisation have
better policy & procedures in training and development process but they are lagged in
implementation and follow-ups. The comments given by top management and the site
employees are not similar with one another in some aspects of training & development
process.
5.5 Rewarding human resources
Results
The results of the interviews are attached in Appendix B5. The comments given by HR
management, line management and manual employees are similar regarding pension plans,
medical insurance for employee and his family, accommodation assistance, free
transportation, car allowances, paid annual leave, paid sick leave, retirement savings plan and
promoting employees to higher position. In contrast, the comments given strategic managers
and manual employees differs regarding bonus at the end of successful project completion
and job satisfaction of employees in the organisation.
Discussion
The organisation has policy and procedures to motivate the employees. The company is
paying bonus to all the employees at the end of successful project completion. The bonus
payment differs according to the employee grades in the organisation. The company has the
compensation schemes for the employees. They are pension plans, medical insurance for
employee and his family, accommodation assistance, free transportation, car allowances, paid
annual leave and paid sick leave. Once employees reach a higher position, they are eligible
for the company’s Children’s Education Allowance program. This allowance is paid while
your children are still in school up to the age of 21. The organisation promotes retirement
savings plan where the company matches employee’s contributions up to 1.5% of monthly
salary. Employees have a wide range of investment options to choose from. The organisation
strives to provide long term career opportunities for its employees. The Retirement Savings

P a g e | 28
Plan is provided as a vehicle for employees to augment their retirement income. The
organisation provides free medical insurance to all its employees. Family coverage under the
plan is available to all employees and at some levels in the company, this family coverage is
provided free. Life insurance for the employee is provided free by the company. This
supports the work of Raymond J Stone (2005), waschman & Swanson (1992) and Gibbs
(2003). Apart from project bonus plan to the employees, the organisation does not follow
any rewards and recognition schemes in the company. That show the company has poor
reward management system. Secondly, strategic managers says that, all the employees are
satisfied with their jobs and as the result of that the performance and productivity is
increasing. These statements differs from strategic managers and manual employees. Manual
employee says that, no job satisfaction is there because in the absence of higher officials, the
employees are overloaded with more responsibilities and the work time changes every six
months because of the climate conditions. When it comes to the promotion part, all the
employees are promoted to higher positions based on their performance in the construction
site.
Conclusion: This research question (Q9) is partially supported because the organisation have
good compensation schemes for the employees but it has weak reward system and manual
employees are not satisfied with their job timings and work culture.

P a g e | 29
Chapter 4
6.0 Recommendation & Conclusion
HRM Planning Strategies: (“poor line management contribution with HR management
while developing strategies”)
The line management participation is important while HR management is setting the policies
and procedures for the organisation due to the fact that the operations team clearly knows the
extent to which they can follow the policy and procedures in projects. So initially, setting a
team to prepare policies and procedures is an important task. The team members should have
project director, HR manager, Project manager and department construction managers. The
line management team and HR management team should clearly understand the policies and
procedures prepared by analysing the organisation strengths and weakness to reduce the
miscommunication between them. Then it is easy for the line managers to implement policies
and procedures in their teams. This helps the line management team and HR management
team to achieve the organisational goals strategically. The HR management expects the line
managers to address the employee concerns whenever there are queries from the employees
of the team.
Strategic performance management & measurement: (“line management recommends
termination for the poor performers”)
Recommendation 1:
This recommendation section gives positive and negative feedbacks. Recommending
termination for the poor performers will de-motivate the employees in the organisation. Even
such hard decisions affects the lives of employees. The line manager should follow HR
procedures when evaluating the performance of each employee. In a positive way, the line
manager should identify the employees’ deficiencies and how they can be overcome, to know
what type of specialised training or job oriented trainings can be given to improve the
employee performance. Such positive attitudes will motivate the employees in the
organisations.

P a g e | 30
Recommendation 2: If an employee’s performance is found not up to expected level in an
organisation then the line managers are forced to take some hard decisions. Line managers’
states that, poor performance will reduce the productivity and it will increase the labour turn-
over. So it can be recommended to conduct performance review on all the poor performers
over a particular time period and then take possible decisions to keep the employee in the
organisation or not. In such cases, the HR management should co-operate with line managers
by overcoming the policies and procedures of the organisation.
Strategic training & development: (“lags in implementation and follow-ups for training and
development strategies”)
The organisation should create awareness about training and development methods to the
employees. The HR management and the line management should jointly form a team which
includes technical engineers, senior technicians and senior engineers of the department to
give training for the site employees for the future job requirements. The systemic approach
shown above for performance appraisal and training needs. After rating the employee
performance, the line management and HR management should separate the week performers
and select training and development activities to overcome the weakness.
Figure 7 - performance appraisal and training needs (Stone, 2005, p. 336)

P a g e | 31
After rating the employee performance, the line management and HR management should
separate the weak performers and select training and development activities to overcome the
weakness. The highly performed employees are selected for the training session to upgrade
their knowledge (technical skills or job oriented training) and then they should be promoted
to the higher positions. Following these types of practices will reduce the labour turn over,
increase the performance and the productivity.
Rewarding human resources: (“reward system is weak and manual employees are not
satisfied with their jobs”)
To motivate and enhance the performance of the employee, the organisation should enhance
the reward and recognition systems like appreciation awards, Employee of the year awards
and Annual rating bonus.
Pay-for-performance: when an individual employee performs well in the project and
achieves the target within the given time period then that employee should be rewarded for
his good performance. The line manager and supervisor are responsible to evaluate and select
the best performer in the project and should recommend the employee. In addition to the pay
for performance at the individual level, there is a considerable interest in pay-for-
performance on small groups. Those types of rewards should be planned by the top
management in the organization. Implementing such type of reward system will motivate the
employees to perform well in the organisation and the productivity also increases.
Job satisfaction:
According to Herzberg two factor theory (hygiene factors)
“Job satisfaction is the true employee motivators”
The organisation should make better job design for the employees. The job design refers to
the responsibilities and tasks assigned to individuals. Reduce the workloads and assign them
according to the job design. Those aspects will motivate the employees to perform well in
the organisation.

P a g e | 32
7.0 Limitations of the research
The research is based on the literature reviewed on strategy HRM and this is linked with the
answers received against the questionnaire from the oil and gas organisation. The limitation is
that the organisations are often not willing to share information regarding the company
policies and its effectiveness. Although the research is meant to be anonymous, but the
information received from the different managers is not in-depth and is difficult to correctly
pinpoint the gaps in the policies and its implementation. Secondly, the target for the
information was from one single oil and gas organization, the results would have been varied
had more oil and gas organizations covered to see their SHRM practices.
The focus of this study has been more concentrated on the relationship between HR manager,
project manager and line manager and revolved around employee policies. The study can
further be expanded to see other areas where SHRM policies have its alignment with the
business objectives.
On the other hand, the information gathered from secondary sources cover a large portion of
areas in the field of SHRM, the topic itself being enormous to cover. There are many
frameworks from different authors and it becomes difficult to adhere to all of them for study
and research purposes. This study has tried to focus on the main and popular frameworks that
are more readily adopted by different organisations.

P a g e | 33
8.0 References
1. Armstrong, M. (2011a). Armstrong's handbook of strategic human resource
management (fifth ed.). london: Kogan Page Publishers.
2. Armstrong, M. (2011b). strategic human resource management (fourth ed.). london:
Kogan page.
3. Armstrong, M., & Murlis, H. (2004). Reward management: a handbook of
remuneration strategy and practice. london: Kogan Page Publishers.
4. Baron, A., & Armstrong, M. (1998). Out of the box. People Management, 23, 38-39.
5. Bauer, T. N., Maertz Jr, C. P., Dolen, M. R., & Campion, M. A. (1998). Longitudinal
assessment of applicant reactions to employment testing and test outcome feedback.
Journal of Applied Psychology, 83(6), 892-903.
6. Beardwell, J. (2004). Human resource planning. J. Beardwell and T. Claydon, Human
Resource Management: A Contemporary Approach, 159.
7. Bratton, J., & Gold, J. (2003). Human resource management: theory and practice:
Basingstoke: palgrave Macmillan.
8. Bresnen, M., Wray, K., Bryman, A., Beardsworth, A., Ford, J., & Keil, E. (1985). The
flexibility of recruitment in the construction industry: formalisation or re-
casualisation? Sociology, 19(1), 108-124.
9. CIPD. (2003). Recruitment & Retention. (London:CIPD).
10. Connelly, S. (1975). Job Posting. Personnel Journal, 54(5), 295-296.
11. Cowling, A. (1996). Strategic human resources management. london: Routledge.
12. Druker, J., & White, C. (1994). Trade unions on the brink: the case of construction
Symposium conducted at the meeting of the Cardiff Business School Employment
Research Unit Conference Paper, Cardiff
13. Druker, J., White, G., Hegewisch, A., & Mayne, L. (1996). Between hard and soft
HRM: human resource management in the construction industry. Construction
Management & Economics, 14(5), 412-413.
14. Emery, F. E., & Phillips, C. (1976). Living at work: a study carried out for the
Minister of Labor and Immigration of the Australian urban work-force, its attitudes to
work and matters influencing those attitudes: Australian Government Publishing
Service.
15. Gardner, M., & Palmer, G. (1997). Employment relations. Industrial relations and
human resource management in Australia.

P a g e | 34
16. Garger, E. M. (1999). Holding on to high performers: A strategic approach to
retention. Compensation and benefits Management, 15, 10-17.
17. Gibbs, L. (2003). THE CHANGING FACE OF PENSIONS. Money, 32(4), 91.
18. Grote, D. (1998). performance management as culture change. HR focus, 4.
19. Halton, E. (1996). new employee development. human resource development, seven,
234-236.
20. haygroup. (2001). business leaders urged to support staff. australia: Hay group
survey.
21. Heneman, H. G., Heneman, R. L., & Judge, T. (1997). Staffing organizations (Vol.
3rd edition). boston: Mcgraw-hill.
22. Ivancevich, J. M. (2001). Human resource management: Mc-graw hill, boston.
23. Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard - measures that drive
performance (pp. 71-79): Harvard business review, january/february.
24. keep, E. (1989). employee development: New Perspectives on Human Resource
Management (Routledge Revivals). london: Routledge.
25. Kvale, S. (1996). InterViews. An introduction to qualitative research writing: Sage
Publications, Thousand Oaks, CA.
26. Lebas, M. J. (1995). Performance measurement and performance management.
International journal of production economics, 41(1), 23-35.
27. Luisa Arenas Franco, M., & Iniguez Diaz, R. (1995). Strategic planning of human
resources in the library system of the Pontifical Catholic University of Chile. Library
management, 16(3), 15-23.
28. Marchington, M., Wilkinson, A., & Sargeant, M. (2002). People management and
development: Human resource management at work: CIPD Publishing.
29. Mathis, R. L., & Jackson, J. (1997). Human resource management: Essential
perspectives: Cengage Learning.
30. Mathis, R. L., & Jackson, J. (2011). Human resource management: Essential
perspectives: Cengage Learning.
31. Mcdonald, D., & Smith, A. (1995). A proven connection performance management
and business results. Compensation & Benefits Review, 27(1), 59-64.
32. McTavish, D. G., & Pirro, E. B. (1990). Contextual content analysis. Quality and
Quantity, 24(3), 245-265.
33. Milbourn, G. (1980). The relationship of money and motivation. Compensation &
Benefits Review, 12(2), 33-44.

P a g e | 35
34. Miller, E. (1984). Strategic staffing. Strategic human resources management, 68.
35. Naismith, N. (2007). An emprical evaluation of strategic human resource
management within construction sites. Loughborough University, Loughborough, uk.
36. Nankervis, A. R., Compton, R. L., & Baird, M. (2002). Strategic human resource
management: Nelson Thomson Learning.
37. Nankervis, A. R., & Leece, P. (1998). Performance appraisal: two steps forward, one
step back? (Vol. 35). london: thompson.
38. Parker, B., & Caine, D. (1996). Holonic modelling: human resource planning and the
two faces of Janus. International Journal of Manpower, 17(8), 30.
39. Parker, G., McAdams, J., & Zielinski, D. (2000). Rewarding Teams: Lessons from the
Trenches. Team Performance Management: An International Journal, 6(1/2), 37-38.
40. Pfeffer, J. (1998). The human equation: Building profits by putting people first:
Harvard Business Press.
41. Pfeffer, J. (2005). 19 Seven Practices of Successful Organizations. A Strategic
Approach, 74-79.
42. Posthuma, R. A., Morgeson, F. P., & Campion, M. A. (2002). Beyond employment
interview validity: A comprehensive narrative review of recent research and trends
over time. Personnel Psychology, 55(1), 80.
43. Salaman, G., Storey, J., & Billsberry, J. (2005). Strategic human resource
management: theory and practice: Sage.
44. Scarpello, V. G., Ledvinka, J., & Bergmann, T. J. (1995). Human resource
management: Environments and functions: South-Western College Publications.
45. Shackleton, V., & Newell, S. (2000). Recruitment and selection methods: A
comparison of five countries. International Journal of Selection and Assessment, 2,
116-117.
46. Smith, W. R. (1956). Product differentiation and market segmentation as alternative
marketing strategies. The Journal of Marketing, 4.
47. Stone, R. J. (2005). Human resources management (fifth ed.). australia: John Wiley &
Sons Chichester.
48. Storey, J., & Sisson, K. (1993). Managing human resources and industrial relations:
Open University Press.
49. Taylor, P. J., & Driscoll, M. P. (1992). Congurence between theory and practice in
management. International Human Resource Management Journal, 3(3), 593-603.

P a g e | 36
50. Terhalle, A. (2009). Line managers as implementers of HRM: the effect of line
managers’ limitations on their HRM implementation effectiveness.
51. Tesch, R. (1990). Qualitative analysis: Analysis types and software tools: Falmer
Press, London.
52. Torrington, D., Hall, L., & Taylor, S. (2005). Human Resourse Management. (sixth
ed.). uk: pearson education limited.
53. Wachsman, B. E., & Swanson, K. J. (1992). Managed health versus managed care:
one part of cost management. HR Focus., 11.
54. Wanous, J. P., & Reichers, A. E. (2001). New employee orientation programs. Human
resource management review, 10(4), 437-445.
55. Werther, W. B., & Davis, K. (1996). Human Resource and Personal Management
56. (fifth ed.). Newyork: McGraw-Hill.
57. Williams, A. P., & Dobson, P. (1997). Personnel selection and corporate strategy.
International Handbook of Selection and Assessment, Wiley: Chichester, 242.
58. Wright, P. M., & McMahan, G. C. (1992). Theoretical perspectives for strategic
human resource management. Journal of management, 18(2), 295.

P a g e | 37
9.0 Appendix
Appendix A1: Staff requisition form (SRF)
STAFF REQUISITION FORM (SRF)
Cost Center No. Cost Center Manager Signature
Date Contact No. Required by (Date)
REQUEST DETAILS
Job Title Classification No.
Number Required
Years of
Experience
Age Limit
Tender / Budgeted
Salary
Recommended Salary Range
New Replacement From To
Remarks:
REQUIRED ONLY IF CV ATTACHED
Applicant Name (s): Recommended By:
Reason for Recommending to consider for interview:
Functional Department Manager’s Consent
(for matrix reporting personnel e.g. Planning Engineers,
QC Engineers, Storekeepers, Timekeepers, etc.)
Authorized Manager’s Approval :
(if different from Cost Center Manager)
Name : Name :
Signature : Signature :

P a g e | 38
Date : Date :
Original: PCSD for budget confirmation; Copy: HRD for advance information
FOR PCS DEPARTMENT USE ONLY
Budget available : Yes No
Remarks :
Name: Signature : Date :
Original: HRD if budget is available; Cost Center if budget is not available with copy to HRD
FOR HR DEPARTMENT USE ONLY
HR Job Ref. ERP Ref# : SRF CANCELLED
Name of the candidate : Reason :
Date of Joining :
ID# : CV#: FILLED BY INTERNAL TRANSFER
ISR Reference# : Date : Name of the employee :
Offer Reference# : Date : ID# : From (Cost Center) :
Remarks Remarks
HR Manager ___________________ Date: HR Manager _____________________ Date:

P a g e | 39
Appendix A2: Application form

P a g e | 40
Appendix A3: selection method

P a g e | 41
Appendix A4: Employee performance evaluation form
EMPLOYEE
PERFORMANCE EVALUATION FORM
ID No. Name Cost Center 1664
Class. No. Classification
Review Period From 01-Jan-2014 To 31-Dec-2014
Reason of Evaluation √ Annual Other
s
Work Duties & Responsibilities as per Employee Duties Worksheet
PERFORMANCE CATEGORIES PERFORMANCE RATING ( one)
ALL EMPLOYEES 10 9 8 7 6 5 4 3 2 1
Job Knowledge:
Knowledge of specialized methods and techniques in current job area,
comprehension of information and ideas.
Productivity - Quantity of Work:
Volume of work produced.
Quality of Work:
Thoroughness, neatness and accuracy of work regardless of volume.
Commitment:
Punctuality, response and readiness of employee to work in any
situation to meet deadlines and targets, and in particular hard times.
Initiative:
Ingenuity, resourcefulness, initiating actions and following through
when appropriate, working towards self-improvement.

P a g e | 42
Dependability:
Ability of employee to work productively on given tasks without
continuous direct supervision and follow-up.
Planning:
Planning and organizing work and modifying as required,
responsibility to duties, and awareness of budget and cost.
Flexibility:
Consider how quickly employee learns and adapts to new procedures
and tasks, willingness to take on new assignments.
Cooperation:
Communicating information and ideas, ability and willingness to work
with others.
MANAGERS / SUPERVISORS ONLY 10 9 8 7 6 5 4 3 2 1
Planning / Controlling
Decision Making & Execution
Leadership
Delegating Work
Employee Development
Employee Relations
Performance Category Rating
The performance requirement for the employee in relation to his duties and responsibilities in his specific
assignment is:
10 - Always exceeded 9 - Consistently exceeded 8 - Often exceeded 7 - Sometimes exceeded 6-
Fully met
5 - Usually met 4 - Sometimes not met 3 - Often not met 2 - Consistently not met 1 - Never met
OVERALL RATING
As each position carries different responsibilities, equal weight should not be assigned to each of the
performance categories.
The final rating should be the overall assessment based on guidelines given in Attachment 3.
Comments: 10 9 8 7 6 5 4 3 2 1
Note: The Supervisor shall first do a preliminary rating of the employee and then meet with the Senior
Manager to agree and finalize the rating.

P a g e | 43
Supervisor
Name:
Senior Manager
Name:
ID No. :
Classification
: ID No. :
Classification
:
Signature : Date:
Signature
: Date:
EVALUATION DISCUSSION WITH EMPLOYEE
EFFECTIVENESS OF TRAINING ATTENDED DURING THE EVALUATION PERIOD (By Supervisor) :
S. No. Description of Training Remarks
KEY ITEMS AND FUTURE TRAINING NEEDS (By Supervisor) : Comp. Systems & Procedures Management English
Computer Technical Others (Pls. Specify):____________________________________ No need for training
EMPLOYEE COMMENTS (Please tick one box and specify your comments): Satisfied with Evaluation Unsatisfied with Evaluation
EMPLOYEE SIGNATURE: DATE :
PLACEMENT / ACTION (By Supervisor)
Ready for a Supervising / Management responsibility (The employee should be considered with others who are ready, for suitable vacant positions)
Has the capacity to move to a position of greater responsibility (The employee should be given additional responsibility in his current position)
Well placed now (The employee should continue to receive on-the-job or other training and gain experience for future career development)
Not suited to present position (The employee should be given specific time-based objectives to meet, and given close supervision and training)
SUPERVISOR SIGNATURE: DATE :
COMMENTS BY SENIOR MANAGER

P a g e | 44
Appendix B1: Strategic human resource planning
HR Manager Project Manager Construction Manager
Team meeting: project Director,
Project Manager and Department
Managers.
Group meeting: project director,
department managers & HR
professionals.
Team meeting with top
management personnel’s.
Understanding the scope of the
project and client requirements.
Understanding the scope of the
project and client requirements.
Reviewing scope of the project and
client requirements.
Analysing the strengths and
weakness of the company. Project
cost and its deadlines.
Discussions about: the cost of the
project, client requirements, project
starting time and its deadlines and
total manpower requirements.
Analysing strength and weakness.
Analysing the cost and deadlines of
the project. Analysing strength and
weakness.
Preparing Policy and procedures. Policy and procedures by HRM. Not involved while developing
Policy and procedures
Receiving manpower requirement
list from project manager.
Preparing manpower requests with
the help of department manager and
planning engineer.
Analysing the total manpower
requirements and mapping it with
the help of department engineers
and planning engineer.
Analysing and finding the qualified
and experienced employee inside
the company who meets the client
requirements. If manpower
requirement is high, then
employees are recruited externally.
Clearly stating about the category of
employee required with qualification
and experience requirements for the
project to do recruitment.
Clearly stating about the category
of employee required with
qualification and experience
requirements for the project to do
recruitment.
Set of policies and procedures are
created for the internal & external
recruitment.
Not involved Not involved
No specific models or approaches
followed
followed
followed

P a g e | 45
Appendix B2: Strategic recruitment & selection process
HR manager Project Manager Construction manager Construction
Engineer
Company has the policy to
accommodate internal
employees first. Mostly
internal transfer. To cut the
cost of external recruitment.
Mobilization from old
project to new project.
To reduce the cost.
Internal transfer from old
project to new project.
Internal transfers.
External recruitment:
initially advertising in
company website. For large
numbers: private agencies.
Company website &
Private Agencies.
Company website &
Private Agencies.
Company website &
Private Agencies.
Company recruitment policy
& procedures
Follows company policy. Follows company policy. Follows company
policy and superiors
decision.
Recruiting employees in
contract basis.
In contract basis. Recruited in contract basis. Recruited in contract
basis.
Selection panel: HR
professional, Project
manager, department
construction managers and
department senior
engineers.
HR professional, project
manager, department
construction managers
and department senior
engineers.
HR professional, Project
manager, department
construction managers and
department senior
engineers.
HR professional,
Project manager,
department
construction managers
and department senior
engineers or
superintendents.
Selection methods in two
stages: application forms,
personality test,
communication, relevance
of education, job
knowledge, practical skill
test, knowledge of tools &
equipment and safety
awareness.
Background investigation &
medical examination.
Follows HR procedures
and as per skill test form.
As per skill test form and
procedures.
Follows HR procedure
& skill test form.
The company follows a
band structure (A to H). So
Employees are separated
Follows a band structure
to separate manual and
non-manual employees.
Follows a band structure to
separate manual and non-
manual employees.
Follows a band
structure to separate
manual and non-

P a g e | 46
according to their respective
bands
manual employees.
Selection decision: project
manager, construction
manager & senior engineer.
Project manager,
construction manager &
senior engineer.
Project manager,
construction manager &
senior engineer.
Project manager,
construction manager
& senior engineer.
Appendix B3: Strategic performance management & measurement
HR manager Project Manager Construction
manager
Construction
Engineer
supervisors
The company
follows a policy and
practices to check
and rate the
employee
performance
(employee
performance
evaluation form).
The company has
employee
performance
evaluation form.
The hr department
asks to fill the
employee
performance form
each year
Employee
performance
evaluation form.
Through
employee
evaluation form.
Once in a year Yearly once One time in a year Yearly once Yearly once
To rate the employee
performance upon
the targets given to
each employee and
to improve the work
efficiency and to
increase the
productivity.
To check how the
employees are
performing in the
project towards
targets.
To check employee
performance towards
targets and identify
weak performers
To rate the
performance of
each employee and
to identify weak
performers.
Usually to give
marks for the
employee
performance on
each categories.
Individual
performance
Individual
performance
Individual
performance
Individual
performance
Individual
performance
Construction
managers, engineers
and supervisors of
each team.
construction
manager, engineer
and supervisor
construction
manager, engineer
and supervisor
construction
manager, engineer
and supervisor
construction
manager,
engineer and
supervisor

P a g e | 47
Weekly targets Weekly targets for
each department
managers.
Weekly targets for
department
engineers.
Weekly targets for
supervisors & team
Weekly targets to
the manual
employees.
Poor performers will
be sent for training
sessions.
be terminated.
be dismissed from
the company with
project manager
approval.
Immediate
termination.
Dismiss
Appendix B4: Strategic training & development
HR manager Project Manager Construction
manager
supervisors Manual
employees
Yes the company has
formal training and
development process
Formal training and
development
process.
Yes No awareness of
such process
Don’t know
The company has the
policy and
procedures.
Policy and
procedures are there.
The company
follows policy and
procedures
May be they have. N/A
Technical Training
for the fresh
graduates.
Fresh graduates
training sessions are
conducted by the
organisation.
The company use to
select fresh graduates
and gives training in
related field.
N/A N/A
Job oriented training
for poor performers.
It depends on HR
and top management.
Depends on HR. No No
Formal staff
development plans
are there.
Formal staff
development plans
are there.
Formal staff
development plans
are there.
Only promoted to
higher levels.
No programs
were conducted
to develop the
skills and no
promotion
Up on employee high
performance
continuously
Recommended upon
employee
performance in the
site.
Based on employee
performance
Based on employee
performance
N/A
The company
follows policy and
Yes. Orientation has
been given to all
Orientation for new
employee is
Orientation sessions
are there on the first
Orientation
sessions are

P a g e | 48
procedures to give
orientation for new
employees.
employees. conducted in the
organisation.
day of employment. there.
Conducted by HR
professionals
Conducted by HR
professionals
Conducted by HR
professionals
Conducted by HR
professionals
Conducted by
HR
professionals
Introduction about
the company and its
operations,
company’s quality
management system,
introduction about
the cost centre
manager and project
manager and at last
safety orientation for
the new employees.
HR professionals
will give the formal
orientation.
Orientation on health
and safety will be
given by site safety
manager.
HR professionals
orientation.
and safety will be
manager.
HR professionals
orientation about
company’s
operations.
and safety will be
manager.
HR
professionals
will give the
formal
orientation
about
company’s
operations.
Orientation on
health and
safety will be
given by site
safety manager.
Appendix B5: Rewarding human resources
HR manager Project
Manager
Construction
manager
Construction
supervisor
Manual
employees
The organisation
motivates the
employees by
paying bonus at the
end of successful
project completion.
The organisation
motivates the
employees by
paying bonus at the
end of successful
project completion.
The organisation
motivates the
employees by
paying bonus at the
end of successful
project completion.
The organisation
motivates the
employees by
paying bonus at the
end of successful
project completion.
Non-manual are not
getting bonus at the
end of the project
Compensation
schemes: pension
plans, medical
insurance for
employee and his
family,
accommodation
assistance, free
pension plans,
medical insurance
for employee and
his family,
accommodation
assistance, free
transportation, car
allowances, paid
pension plans,
medical insurance
for employee and
his family,
accommodation
assistance, free
transportation, car
allowances, paid
pension plans,
medical insurance
for employee and
his family,
accommodation
assistance, free
transportation, car
allowances, paid
pension plans,
medical insurance
for employee and his
family,
accommodation
assistance, free
transportation, car
allowances, paid

Strategic human resource_management

Strategic human resource_management

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Semelhante a Strategic human resource_management

Semelhante a Strategic human resource_management (20)

Último

Último (20)

Strategic human resource_management