Premium Oil And Gas Management Essay

Published: November 30, 2015 Words: 1612

Firstly, this analysis begins with identification and recommendation on the issues concerning the Learning and Development section. The local HR department faces several critical L&D issues while pursuing the crucial strategy of becoming a 'modern global learning organisation'. One of these issues is low health and safety standards in Azerbaijan in contrast with international standards. This poor local perception of health and safety procedures has negative influence on the successful decentralisation of POG Azerbaijan to the headquarters. Demand for energy in the world is increasing the pressure on oil and gas industry to produce. Furthermore, the target to double the workforce and particularly hiring local people is contributing to threat of raising accidents. Injuries to workers reflect negatively to the entire industry. Also, unsafe conditions increase costs through workers compensation. To avoid all these circumstances POG Azerbaijan need to change its health and safety strategy and train Azeri workers to comply with the international safety standards. Firstly, there should be introduction and enforcement of international health and safety standards, which are observed in the Dutch headquarters. Next, workers should be involved in a number of health and safety issues including organising roles and responsibilities and reviewing performance. By training local workers will gain the skills and knowledge to be aware in the health and safety aspects of their work. This training can take place internally using internal consultants and health and safety specialist with experience in the Dutch headquarter. Furthermore, for a company which is trying to achieve high standards, training should be systematic - every six months. Also, managers should organise consultation meetings once a month which target local group of workers for safety critical tasks. These meetings provide opportunity for worker to make their own suggestions about improving health and safety arrangements. In this way, the benefits from involving staff in managing health and safety are reachable.

Another L&D problem concerning POG Azerbaijan's development is the inefficient capacity of the Learning and Development Centre as the business unit plans expansion and requires future investment for the training of 600 people over the next five years. However, the aim of the development function is to assure that well trained personnel in a company are capable to reach their goals, as well as to contribute to better performance and growth with their work (Armstrong, 1996). The L&D team of POG Azerbaidjan should double as even now the staf is fully sheduled. This can be done with a centralized approach by hiring local people and training them in the headquarters and corporate trainers wiil travel to the subsidiary to adapt to the local environment and habits (Treven, 2001). The training and development of human resources have increasingly been recognised as important due to the rise of competition, and the success of economies that invest in employee development. This has made employers realise that success partially relies on investment in training and development (Holden 1991). Also, as an additional method of training and development POG Azerbaijan' specialists can us the talent management. Making the talented staff aware of the socialization mechanisms helps them improve their skills and knowledge and in this way supports the development of talents (Wang-Cowham, 2011, p.403).

In addition, local workers in POG Azerbaijan are not the only ones who need to be trained. Expatriates are facing major problem with communication in local language- Azeri or Russian. That's why employees are obliged to learn English as a foreign language during their six months of training. But learning a foreign language could be a valuable asset to the expatriate and the company as a whole. Furthermore, this knowledge will prevent from misunderstanding and fasten the communication between expatriates and local workers.

The problem with the language also belongs to the second issue discussed in this essay which is 'Teamwork and Communication'. Language barrier has a key role in the communication process between expatriates and local workers in POG Azerbaijan. The fact that local workers are in a process of learning English as a foreign language and expatriates don't learn Azeri or Russian is evidence for ineffective communication and lack of cooperation inside the subsidiary. A possible solution to this problem could be on one side continuing learning the corporate language by local staff and on the other initiative by expatriates willing to know one of the local languages- Azeri and Russian. Although the possibility that expatriates who are in a process of learning a second language still are not able to understand the humour, symbolism and negotiation of locals (Harzing and Feely, 2008, p.53), it's essential for them to know basic level of foreign language in order to communicate easily with locals in suddenly occurred situations.

However, there are other 'Teamwork and Communication' problems connected with cross-cultural differences between the 'mother company' and POG Azerbaijan. That is a result from the fact that the more countries with which the company has business relations, the more difficulties it has to keep this business successful (Briscoe and Shuler, 2004, p.114). First, it should be mentioned that Azerbaijan is a status-conscious society and team working is based on recognition in inequality. Azerbaijan teams operate depending on the income and educational level of their members. Recommendation to this specific pattern is building teams of workers with similar educational level. Also, international and local workers have to be remunerated equally according to their position. In this way the staff will be equal in order of income. These suggestions are appropriate for dealing with the status-conscious local staff and making them willing to share responsibilities. Differences in culture and behaviour could be overcome by providing each employee with a handbook explaining culture specifications of headquarters, specific gestures which are understood differently, advisable behaviour when communicating with expatriates and a list with contacts for further questions. Teambuilding have positive effect and are appropriate in this situation. So, employees will have the chance to break down barriers and exchange experience with each other.

Another HR problem concerning POG Azerbaijan is the 'loss of face' in local workers which expresses in unwillingness to ask questions in the working process. The solution to this is organised meeting at which employees write their questions on a sheet of paper anonymously and then managers answer each question and lead a discussion. This is also an opportunity for workers to raise an issue with managers in front of the group so they won't be afraid to be criticised by their employer. These open discussions will lead to effective working process and through asking questions workers will improve their knowledge and put it into practice.

In addition to keep the working process smooth and without conflicts which are compromising the effectiveness, POG Azerbaijan need to pay attention to relations between experienced workers and newcomers. The problem is the lack of support of workers with several years of service towards newcomers. This makes their integration to the aspects of the multinational company even more difficult. Newcomers struggle to incorporate to the new international working environment while their co-workers are familiar with the working procedures and requirements. The solution is to separate newcomers from each other and integrate them in teams of experienced workers. Each newcomer will have a mentor who will support and guide him in the working process. The mentor will instruct the newcomer to make reports about problems and advise them how to solve them. Communication and relationships between team members will improve and help the company in achieving its goals. Furthermore, newcomers and workers as a whole should be responsible for their actions as learning from their mistakes seem difficult. Azeri workers don't realize the consequences of their actions and the result from their mistakes. That's why mentors are entrusted with the task to instruct the members of the team about their responsibilities. Each worker has material liability and this is a motive for him to reduce errors to a minimum by learning from each mistake.

Last problem concerning 'Teamwork and Communication' issue is the negative attitude of male employees to female co-workers. Local workers find it offensive to accept instructions from local female which is derived from Azerbaijan culture. Azeri women tend to occupy government jobs with low salaries- teachers, social workers (Najafizadeh, 2003). This is a reason why male workers refuse to accept a female in the team. Recommendation to deal with this problem is to hire more local women with good education and international experience to take part not only in the training process but also in the activity of other departments. Hiring women will break the situation in POG Azerbaijan. Each new hired woman will present herself in front of the team and share her previous experience and willingness to contribute to the international success of the company. Through their professionalism and fresh ideas women will earn trust from local workers. After all, POG's goals are directed globally and women are part of the international management team.

Considering these two issues that POG Azerbaijan is struggling with, ('Learning and Development' and 'Teamwork and Communication') lead to the fact that understanding local culture and habits is crucial for the global development of the company. Such region with distinct religion, values, culture and economy raises problems in the field of team working, training, communication, personal development, employee relations. Personnel nature and local culture of Azerbaijans make introduction to international working practises challenging. While implementing the recommended solutions to these issues company's problems will decrease to finally create a unique international system of principles and values which will be an advantage on the global market. By thinking globally and acting locally POG Azerbaijan is about to reach its goals faster and satisfy its Dutch and Azeri workers by creating a mixture of cultures.