1.1 Introduction

The alterations in concern and the impact of globalization on increased fight have pushed administrations to integrate a strategic attack to human resource direction ( HRM ) to accomplish competitory advantage. Strategy is defined by the Chartered Institute of Personnel and Development ( CIPD ) , ( hypertext transfer protocol: //books.google.co.uk/books? hl=en & A ; lr= & A ; id=zXG_lJ8BrMwC & A ; oi=fnd & A ; pg=PR9 & A ; dq=the+key+to+improved+business+performance & A ; ots=GLUULx2eFZ & A ; sig=I9jHj5YhE5QIBmWYn-o-U0NvDlc # v=onepage & A ; q & A ; f=false ) . [ Online ] . ( Accessed 05 Mar. 2011 ) as a program that integrates the ends, policies and action of an administration into a cohesive whole. Fundamentally scheme is concerned with accomplishing a competitory advantage. By following a strategic attack to HRM, administrations seek to pull off its human resources in a coherent attack that replicate the concern scheme.

CIPD positions strategic HRM from two chief positions, CIPD, [ Online ] . ( hypertext transfer protocol: //www.cipd.co.uk/subjects/corpstrtgy/general/strathrm.htm? IsSrchRes=1 ) . ( Accessed 05 Mar. 11 ) ;

The ways in which an administration achieves its concern ends by seting in topographic point activities that support and steer employee ‘s behavior.

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And the mode in which the human resources and activities are planned to accomplish the concern ends.

Therefore, strategic HRM is an incorporate attack that aligns the internal and external context of an administration for organizational public presentation, that is, a strategic tantrum between strategic purpose and administration resources. In order to propose an appropriate human resource scheme for BP ‘s human resource issues ( appendix ) , this paper shall follow an incorporate attack to the assorted positions of strategic HRM ; Best Fit, Resource Based and Best Practices attack.

1.2 Best Fit

The best fit position is all about the perpendicular integrating. It is a eventuality position in which an administration links its concern scheme ( external market ) and single public presentation ( internal environment ) to make an effectual HR policies and patterns and achieve competitory advantage. Beardwell J and Claydon T. , Human Resource Management: A modern-day Approach ( Prentice Hall, 2010 ) used the life rhythm and competitory advantage theoretical account to explicate the best fit attack.

The life rhythm theoretical account links the appropriate HR patterns to the different phases in the life rhythm of a concern. This theoretical account suggests that the HR policies at start up will differ with those during an administration ‘s growing, mature and diminution stage. Pulling grounds from BP ‘s web site, a statistical reappraisal in June 2010 by so BP ‘s CEO, Tony Howard, BP, ( hypertext transfer protocol: //www.bp.com/sectiongenericarticle.do? categoryId=9023752 & A ; contentId=7044473 ) . [ Online ] . ( Accessed 05 Mar.2011 ) , shows a crisp diminution on record in planetary energy ingestion and falling energy monetary values caused by planetary recession which is likely to go on in the long term. This diminution in planetary energy ingestion will impact energy companies particularly BP which is a major participant in the energy market with its immense planetary presence. Assuming this tendency continues as predicted, this would put BP ‘s concern life rhythm at its mature or diminution stage. This means the HR scheme for BP will be one of retrenchment and redundancy of employees but which needs to retain viability and contribute to sustainable competitory advantage. This double scheme will enable BP to get the hang the present while fixing for the hereafter eventualities. A proposed scheme will be to retain high public presentation staff, recruit less and develop staffs to multi undertaking.

On the other manus, the competitory advantage theoretical account argues that HR patterns work best when adapted to the competitory scheme ; Redman T and Wilkinson A. , Contemporary Human Resource Management ( Prentice Hall, 2009 ) . The theoretical account identifies three types of strategic behavior which can be linked to BP ‘s HR patterns: guardians, prospectors and analyzers.

Defenders operate in little niche market bring forthing high quality merchandises and services backed by high monetary values.

Prospectors are more flexible and use advanced scheme to alter merchandise line rather frequently.

Analyzers are less advanced but stable and efficient and will merely come in the market when it is risk free.

Evidence from BP ‘s web site, ( hypertext transfer protocol: //www.bp.com/productlanding.do? categoryId=9025115 & A ; contentId=7047794 ) . [ Online ] . ( Accessed 05 Mar. 2011 ) shows that inventions and engineering and an efficient energy are a precedence to undertake the challenges to run into energy demand and environmental concern. Therefore, to derive competitory advantage BP could follow a double scheme of brand guardian and purchase prospector to stay both advanced and efficient at a lower operating cost. That is a brand scheme that invests in employees to seek efficiency and a bargain scheme for new engineering to stay advanced in the market. This is a similar double scheme attack that has been successfully used by the Singapore Airlines ( SIA ) , ( hypertext transfer protocol: //www2.warwick.ac.uk/fac/sci/wmg/ftmsc/modules/modulelist/pop/articles/singapore_airlines.pdf ) . [ Online ] . ( Accessed 05 Mar. 2011 ) that adopts a cost decrease scheme while supplying premium services.

The best tantrum position has been strongly criticised for its deficiency of flexibleness in a dynamic changing environment. To accomplish dynamic tantrum and given that BP is ; an advanced, a high hazard taker, consequences oriented, flexible to alter, quality and procedure focal point company, it should develop a human capital pool with these wide scope of accomplishments that will advance behavioral flexibleness among its employees. This should assist work out the job of flexibleness in altering environment.

1.3 Resource Based View ( RBV )

The resource based position is a paradigm displacement from the ‘best tantrum ‘ attack that draws on the internal resources of an administration. It is peculiarly applicable in unpredictable external environment and focal points on accomplishing uniqueness and sustainable competitory advantage through the use of an administration ‘s resources. The VRIO ( Value, Rarity, Inimitable, Organisation ) model, Beardwell J. and Claydon T. , Human Resource Management: A modern-day Approach ( Prentice Hall, 2010 ) , is a utile tool to explicate RBV relationship and preparation of a scheme.

Value is all about the impact of HR part through improved client service and client added value.

Rarity is merely to work rare features of the house ‘s human resources to derive competitory advantage.

Inimitability means recognizing an administration ‘s alone history and civilization to develop alone patterns and behaviors that make it hard for rivals to copy.

Administration is incorporating internal resources into a coherent system so that they can capitalize on adding value, rareness and inimitability.

The VRIO model has been successfully used by the Singapore Airlines, ( hypertext transfer protocol: //www2.warwick.ac.uk/fac/sci/wmg/ftmsc/modules/modulelist/pop/articles/singapore_airlines.pdf ) . [ Online ] . ( Accessed 05 Mar. 2011 ) to develop a set of alone features such as replacing its fleets more often than make its rivals. As a consequence, its fleet is immature and energy efficient and operates at a lower cost. BP ‘s web site ( hypertext transfer protocol: //www.bp.com/sectiongenericarticle.do? categoryId=9025116 & A ; contentId=7046892 ) . [ Online ] . ( Accessed 05 Mar. 2011 ) shows that BP is really acute on deep sea geographic expedition, an activity other energy companies are afraid to venture into. Using this attack, BP can do deep sea geographic expedition its alone civilization and develop alone patterns such as preparation and developing deep sea specializers to do it hard for its rivals to copy.

Implementing HR policies has been a cardinal issue highlighted with the RBV and BP can get the better of this by making chances that will better the discretional behavior of both line directors and employees such as ; squad working, preparation and development strategies, long term employment security and better wage construction.

1.4 Best Practice

Best pattern or ‘high committedness ‘ human resource patterns are a typical set of successful HR patterns which houses can follow irrespective of their scene and which will take to betterment in public presentation. Due to the planetary economic crisis, most administrations are now following a policy of negociating reduced rewards to keep occupation security and employment committedness. In same manner, BP can follow this best pattern and incorporate it with others that are specific to its demands. The BP ‘s calling web page ; What BP is Looking For, ( hypertext transfer protocol: //www.bp.com/sectiongenericarticle.do? categoryId=9031574 & A ; contentId=7057908 ) . [ Online ] . ( Accessed 11 Mar. 2011 ) , shows that BP is committed to developing leaders and back uping its employees through uninterrupted betterment. Therefore, the appropriate best patterns for BP should concentrate on heightening the skill base of employees and this could be achieved through HR activities such as ; presenting sequence be aftering strategy to develop future leaders, comprehensive preparation and development chances, selective staffing, consequences based public presentation and working in squads.

1.5 Recommended Strategy and Main Features

The recommended human resource scheme for BP to follow will be one that integrates all the cardinal characteristics of best tantrum, RBV and best pattern positions proposed supra and every bit explained in the tabular array below.

Key Strategic Features


Leadership Qualities A Priority

Management should present comprehensive leading preparation and development programmes.

A sequence be aftering strategy should be encouraged and practiced.

Recruitment procedure should be selective and do leading qualities a precedence

A Deep Sea Organisational Culture

Employees should be encouraged to be advanced, take hazard, consequences oriented, flexible to alter, quality and procedure focal point.

There should be uninterrupted developing for specializers and high investing in deep sea geographic expedition.

Management should put in employees to seek efficiency.

Combined Organisational and Industrial Best Policy and Practice

Retain high public presentation staff, recruit less and develop staff to multi undertaking.

Negotiate cut down rewards to keep occupation security and employment committedness

Continuous preparation programme for all employees to develop a wide scope of accomplishments.

Team working should be encouraged to better on discretional behavior.

1.6 Decision

Strategic HRM is a complex procedure which is invariably germinating. The HRM scheme identified above is alone to BP in footings of the grounds found from its web site and its major human resource issues discussed during the faculty session. The scheme adopts an incorporate attack of best tantrum and resource based incorporating best pattern as seen tantrum. Given that the economic system is invariably altering, flexiblenesss have been imbued in the proposed scheme to do it dynamically executable.


2.1 Introduction

The biggest plus in any administration is its people. In order to stay a high public presentation company and remain competitory, BP needs to pull and foster the right people with the right endowment and right leading qualities. Therefore, BP ‘s HR patterns and policies will play an of import function for pull offing its people and accomplishing its concern aims.

The challenges faced by BP to pull off its people can be categorised as, BP, ( hypertext transfer protocol: //www.bp.com/sectiongenericarticle.do? categoryId=9031553 & A ; contentId=7057895 ) . [ Online ] . ( Accessed 02 Mar. 2011 ) ;

Attracting, developing and retaining endowment.

Deficit of skilled forces.

Developing a true leading.

Developing corporate societal duty

Transfering cardinal cognition and relationships.

Reacting to these challenges, BP has introduced a figure of enterprises ; BP, ( hypertext transfer protocol: //www.bp.com/subsection.do? categoryId=2319 & A ; contentId=7060032 ) [ Online ] . ( Accessed 02 Mar. 2011 ) . Though these steps are good, a strategic enlisting and choice procedure can be adopted to undertake these challenges.

2.2 Strategic Recruitment and Selection Process.

Harmonizing to a study by CIPD, Annual Survey Report 2007: Recruitment, Retention and Turnover ( CIPD, 2007 ) merely 51 % of the administrations surveyed in the UK had a resourcing scheme. Given that eight in 10 of the employers ranked recruiting as a top precedence in resourcing, it becomes imperative for BP to develop a recruiting scheme.

To beginning the right type of employees, BP can choose its endowments internally, externally, utilize a combination of both or follow alternate methods. The internal attack is a traditional method where employees are given precedences for unfilled vacancies before an external beginning is considered. The advantage with this method is that it motivates employees, improves their morale and provides them with chances for calling patterned advance. However, internal sourcing is expensive and by and large leads to inbreeding and deficiency of creativeness while external enlisting brings in fresh thoughts and accomplishments by engaging employees with different backgrounds.

Whatever method BP decides to utilize, it is important that BP adopts a strategic attack that will place the accomplishments required before choosing the most suited people to run into the human resource demands of an administration ; Boxall P. and Purcell J. , Strategy and Human Resource Management, ( Palgrave Macmillan, 2003 ) . Furthermore, Beardwell J. and Claydon T. , Human Resource Management: A Contemporary Approach ( Prentice Hall, 2010 ) accent this demand of a strategic attack as a premier beginning of competitory advantage to guarantee the administration has ‘the right people in the right topographic point at the right clip ‘ . The strategic enlisting and choice procedure include techniques that stretch from pulling, choice and initiation.

2.2.1 Attracting Endowments: BP ‘s Brand Strategy

CIPD, ( hypertext transfer protocol: //www.cipd.co.uk/hr-resources/factsheets/employer-brand.aspx ) . [ Accessed 03 Mar. 2011 ) defined employer ‘s trade name ;

‘as a set of properties and qualities – frequently intangible – that makes an administration distinctive, promises a peculiar sort of employment experience, and entreaties to those people who will boom and execute best in its civilization ‘

BP ‘s trade name scheme will depend on its trade name strength and how it differs from its rivals. A utile strategic attack is that by CIPD: A no-nonsense attack, ( hypertext transfer protocol: //www.cipd.co.uk/hr-resources/factsheets/employer-brand.aspx ) . [ Online ] . ( Accessed 03 Mar. 2011 ) . In this bit-by-bit attack, BP will foremost necessitate to look into by pass oning with top direction, the employees, and external endowment beginnings to understand the true perceptual experience of its employees ‘ experience. Second, BP should utilize the feedbacks from this probe to make a typical Value Propositions ( VP ) ; a unique and compelling offer by BP to pull, retain and prosecute the employees in return for their public presentation. A suggested unique and compelling VP for BP is shown in fig 1 below ;

Following BP is to do certain it can present on its trade name promise. By making this and believing about the employee ‘s experience non merely from the enlisting phase but through initiation to existent work life experience, BP will be utilizing its employees to sell itself in a procedure known as employee stigmatization. Therefore a good employee stigmatization should be brooding of the employee experience as shown in fig 2 below ;

Finally BP will necessitate to continuously step, evaluate and reexamine its trade name scheme to do certain it is presenting existent value.A This will be reflected through addition in application and questions, employees traveling the ‘extra stat mi ‘ , and recommending for BP.

2.2.2 Strategic Recruiting Methods

Globalization and the planetary economic recession have pushed many employers to seek originative employment channels and aim a diverse application group. A CIPD study, Annual Survey Report 2007: Recruitment, Retention and Turnover ( CIPD, 2007 ) indicated that local newspaper and corporate web site were still favorite paths used by most employers. But due to technological alterations and employees penchant for a more flexible attack, administrations are now fall backing to online enlisting techniques such as societal networking sites like Facebook because they are cost effectual and faster. BP a strong booster of diverseness, ( hypertext transfer protocol: //www.bp.com/sectiongenericarticle.do? categoryId=9023446 & A ; contentId=7058326 ) . [ Online ] . ( Accessed 05 Mar. 2011 ) , can win the war on diverseness by making a diverse enlisting policy that is inclusive of both the traditional ( newspapers and corporate web site ) channels plus mainstream recruiting channels. Fig 3 portrays the diverseness enlisting procedure ;

To utilize both traditional and mainstream enrolling methods such as ; Newspapers, Universities, E-recruitment, societal networking sites, calling carnivals, and iPhone, to develop a heterogenous group of appliers.

Top direction to go involved and support line directors in execution.

To supply direction with diverseness preparation.

To maintain changing recruitment pattern so as to avoid enrolling every clip from same societal background and age groups in instance it discriminates against certain occupation searchers.

2.2.3 Strategic Selection Techniques

Strategic enlisting is a uninterrupted procedure and includes following the right choice techniques. There are different techniques administrations have used to choose possible employees: interviews, unity trial, course of study vitae, assessment Centres and psychometric trials. CIPD, Annual Survey Report 2007: Recruitment, Retention and Turnover ( CIPD, 2007 ) reported that local newspapers and corporate web sites were still favorite paths used by most employers though the psychometric and appraisal Centres have been popular. Whatever method BP chooses, it is of import that the method is dependable and valid. Dependability measures the truth and consistence of the choice trial while cogency measures its predictability.

The ‘psychometric ‘ trial has typically been associated with the ‘best pattern ‘ for employee choice ; Redman T and Wilkinson A, Contemporary Human Resource Management ( Prentice Hall, 2009 ) . The psychometric trials are designed to accurately mensurate a campaigner ‘s cognition, abilities and personality traits. These trials have become popular with recruiters because they are designed to be dependable and predictable and are effectual for managing big volumes of appliers.

Assessment centres on the other manus focal point on behaviors required for the occupation and involves campaigners finishing a figure of different undertakings as portion of the choice procedure ; CIPD, ( hypertext transfer protocol: //www.cipd.co.uk/hr-resources/factsheets/selection-methods.aspx ) . [ Online ] . ( Accessed 05 Mar. 11 ) . BP web site shows its corporate web site is the preferable choice path ; ( hypertext transfer protocol: //www.bp.com/sectiongenericarticle.do? categoryId=9031578 & A ; contentId=7057906 ) . [ Online ] . ( Accessed 05 Mar. 2011 ) . But choice is more than merely utilizing a peculiar technique, BP needs to implement a strategic psychometric attack which takes into history a societal model that includes choice as ‘best tantrum ‘ and as an synergistic treatment procedure ; Redman T and Wilkinson A. , Contemporary Human Resource Management, ( Prentice Hall, 2009 ) .

To follow a ‘best tantrum ‘ attack, BP will necessitate to identity its alone qualities such as values and civilization, employment forms, market section and utilize these qualities to distinguish it selection patterns from a ‘best pattern ‘ attack.

Furthermore, BP should do its choice procedure interactive. The HR section should interchange information with other directors that are straight affected. Furthermore, dialogue with participants should be a bipartisan procedure and designed to be perceived as carnival. That is ; handling participants with regard and self-respect, supplying them with information and doing them portion of the whole procedure.

In add-on, it is of import that BP should supply equal preparation classs for all those involved in measuring campaigners at all phases of the choice procedure and that they are adequately briefed about the occupations.

2.2.4 Initiation

It is the procedure whereby employees adjust to their occupations and working environment ; CIPD, ( hypertext transfer protocol: //www.cipd.co.uk/hr-resources/factsheets/induction.aspx ) . [ Online ] . ( Accessed 05 Mar. 11 ) . The intent, which is to guarantee a smooth integrating of staff into the administration. BP can do its initiation procedure more effectual by ;

Making initiation a critical portion of its enlisting procedure.

Planing a good structured initiation programme to guarantee that all new recruits receive information consistent with BP ‘s values and civilization.

Transporting out physical orientation to depict where the installations are and an organizational orientation to demo new employees the of import function they play in the overall concern scheme.

Guaranting a quality ‘welcome ‘ because employees develop permanent feelings within their first few hebdomads of working.

In a nutshell, if BP decides to follow a strategic enlisting and choice attack to undertake challenges in its people direction it will be critical that BP differentiates its trade name scheme from that of its rivals. Furthermore, BP should be able to find its nucleus competences to find the right recruiting channel ( s ) . Finally, how it assimilates its new employees speak loud about its civilization and values.


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