Ente Nazionale Idrocarburi (Research Paper Sample)

STRATEGIC HUMAN RESOURCE MANAGEMENT: ENTE NAZIONALE IDROCARBURI (ENI)
Executive Summary
Strategic human resource management represents an intricate process that is constantly transforming and being studied and discussed by commentators and academics. Its relationship and definition with other facets of business strategy and planning is not absolute, leading to opinion varying between scholars. However, it is evident that organizations are applying the concept in an increasing manner. EnteNazionaleIdrocarburi (Eni) is an example of a company that has successfully adopted and applied the theoretical framework in its pragmatic business setting with considerable success. The company has managed to administrate its people and optimize their capabilities, contributing to competitive advantage that has made it among the top ten companies in the global oil and natural gas industry. HR planning and its impacts on the organization’s internal and external policies are studied, as are comprehending HR requirements for the organization.SHRM is based on HRM concepts that integrate business strategy. It offers a coherent approach to people management in a planned manner that combines organizational objectives with action and policy sequences. This paper analyzes this aspect in detail, using Eni as the organization of reference.
1 Introduction
Strategic human resource management, often abbreviated as SHRM, has acquired increasing significance in the management of critical resources across organizations. At present, SHRM has become more applicable in service organizations (Salaman et al., 2006, p. 5). The critical dilemma that confronts HR functions in contemporary organizations is not what to avoid in order to contribute to the enterprise as a business partner; rather, it is how to determine the priorities during the allocation of scarce resources, which include financial, physical, and human, in a manner that optimizes their contribution to the attainment of the enterprise’s business objectives. Regardless of the size of the available resources, it logically follows that the main issue would remain priorities during their allocation in order to maximize their contribution. Under the conventional framework, four aspects are perceived as being crucial to contributing to the determination of HR strategy: 1) the business or strategic plan of the organization; 2) the workforce planning process; 3) external environmental factors; and 4) HR information. Most management consultancy organizations have built significant business through translation of the SHRM concept into methodologies, prescriptions, and frameworks, which EnteNazionaleIdrocarburi (ENI) S.P.A. can also emulate.
2 The importance of Strategic Human Resource Management within Eni
As with other organizations that have adopted the use of SHRM, Eni recognizes the significance it has on the company’s human capital management. Through a well established mission, sound organizational structure, and a HRM strategic plan, Eni can carefully recruit people, train them, and manage them optimally to contribute to the overall productivity and performance of the organization (ENI S.P.A, 2015, p.3). Successful SHRM can mean transforming the culture, commitment, and experience of talented individuals to develop the organization’s value (Durai, 2010, p.56). Through building an exemplary team of working professionals with good HR training, performance appraisals, and quality recruitment, employees are motivated. This in turn enhances workplace safety and workplace communication. Devoid of a proper HRM, the organization could face various challenges while managing ordinary activities, which calls for a lot of energy and commitment to setting up robust and effective HRM systems (Walker, 2002, p.16).
3 Contribution of SHRM to the Achievement of Eni’s Objectives
At Eni, SHRM has the significance of improve business through exploiting all those activities that affect the behaviors of employees in their efforts to execute the strategic needs of the organization (ENI, 2015, p.6). After observing such behaviors, the organization establishes a pattern of planned HR activities and deployments necessary for the company to achieve its goals and objectives. SHRM is especially significant to the organization since it offers the basis for human capital management, considering the reality that managing people is among the most difficult managerial duties (Durai, 2010, p.15). Through SHRM, the company is able to identify where every individual is best suited and correspondingly assign them the tasks they are most proficient in. In addition, SHRM enables managers to identify individuals’ weak points and the necessary training and development to improve their performance and productivity.
1 Human Resource Plans within Eni how they are developed and implemented
2.1. Business Factors that Influence HR Planning this should be the first part for this section
Eni’s HR planning requirements are driven by various factors, including technological factors, business change, labor costs control, and the changing nature of work. As is evident, Eni operates in the oil and natural gas industry, which is constantly undergoing technological changes because of the need to come up with renewable energy sources, new production processes, new products, and introduce more environmentally-safe ways of production, manufacturing, and delivery of the products(ENI S.P.A, 2015, p.6). Towards this end, Eni is always looking for competent personnel who can add value to the organization’s functions through application of technological expertise. This also means that the company has to manage different personnel with different expertise, along with the machinery and equipment that they displace (Learning without Boundaries, n.d., p.3).When it comes to business change, it is evident that having to deal with many companies across the public and private spectrums can be daunting. For instance, when dealing with a consultancy company, Eni has to approach matters as the company desires (customer preferences). Situations that have multiple and distinct clients with different preferences implies Eni has to constantly tailor the delivery of products and services, which in turn means that this is an important factor when selecting and hiring personnel. For this reason, Eni utilizes the selecting hiring technique.
In terms of labor costs control, Eni has clearly outlined in its 2015 – 2018 Strategic Plan that it intends to cut its costs during the period while simultaneously maintaining quality and sustainability. These includes in the areas of direct costs (expenses used on production, speculation, and manufacturing) and indirect costs (administrative costs, supervisory costs, management of staff costs)(Fondazione Eni Enrico Mattei, 2015, p.6). This implies that the HR planning process has to look for ways of optimizing the workforce while ensuring productivity and performance. Finally, the changing nature of work is a business factor that has high significance for Eni. Organizational innovations and transformations have contributed to the need to change the nature of work and working patterns. Distinct skills requirements are apparent as the outcome of new technologies and processes. For instance, some employees at the factory level will require retraining in order to operate new equipment, which significantly affects the HR planning process. Given that the HR planning process is a continuous undertaking aimed at always ensuring the availability of competent personnel, it is significant that Eni applies a pragmatic framework, for example, the HR Systems Planning and Analysis Model (Durai, 2010, p.48).
Figure SEQ Figure \* ARABIC 2: HR Systems Group Planning and Analysis Model
Source:Bulla& Scott (1994, p.52)
2.2. Eni’s Human Resource Planning
This describes a process aimed at ensuring the human resource requirements of a company are identified and subsequent plans are put in place to satisfy those particular requirements (Kleynhans, 2006, p.69). The organization approximates the demand for labor and assesses the nature, size, and sources of supply that will be required to meet this demand. The purposes of HR planning include to determine the precise number of individuals required for the future; to determine the required skills needed for different jobs as the world transforms very rapidly; to replace personnel who have left or who are expected to leave in the future; the information collected through HR planning has the capacity to be utilized for other HRM functions; and the planning process can demonstrated to managers long-term plans and goals in terms of HR.
2.4. ENI's HR Requirements for Young Graduates
Eni’s operations are mostly in the business, finance, and petrochemical industries, which imply that young graduates have to possess competencies revolving around these pertinent areas. Each year, the company selects young people to join its pool of talented staff. Essentially, the company seeks engineers (civil, chemical, petroleum, energy, electrical, and mechanical engineers) (Eni: Selection Process, 2015, p.1). In addition to a college degree (educational qualifications and level of passing – marks) in the outlined area, the young graduates are vetted on foreign language ability, professional experience, and availability for both national and international mobility.
2.5. Eni’s Human Resource Plan
Based on the business factors that affect HR planning at Eni, the following diagram represents a relevant HR plan that can comprehensively address the needs of the organization. Note that the notion of opening new product lines is in consistence with the organization’s expansion into new markets both loc ally and intern...