A Case Study of BP

International Journal of Multidisciplinary Research and Publications ISSN (Online): 2581-6187

Leadership Evaluation and Human Resource Management Analysis: A Case Study of BP

Ling Han HUANG Coventry Business School, EDHEC Business School Email address: Huanglinghan0 @ gmail.com

Abstract— This paper includes two parts: the first part is leadership problems, which is the challenge of providing more energy assessment and the second part is human resource management while generating fewer greenhouse gas emissions (Linkedin (HRM) analysis. Both parts are based on the case study of British 2020). Petroleum Group (BP) in the UK. This study is highly valuable for scholars and business students to have a comprehensive view of BP management issues.

Keywords— Leadership, HRM, Leadership style, HSE, Diversity, Expatriate, Talent Management.

I. PART 1: LEADERSHIP ANALYSIS 1. Introduction 1.1 BP BP is an energy multinational with businesses in Australasia, Europe, Africa, Asia, South and North America. From the ocean to the desert, from retail to wholesale, BP provides light, heat and mobility products and services across the world (BP 2020). BP prospects and produces oil and gas, markets, refines, and supplies petroleum products, delivers solar energy and markets chemicals. BP's chemicals comprise acrylonitrile, acetic acid, polyethylene and ethylene Figure 1. BP business model (BP 2020) (Bloomberg 2020). BP has downstream, upstream and renewable business, As BP‟s leader, especially after the report on deepwater which include well-developed trading systems, helping to horizon explosion in the Mexico Gulf on 20th April 2010 mitigate the influences of commodity pricing cycles. BP‟s published (The Guardian 2010), Bob Dudley tried to review geographic operating range provides them access to BP‟s vision and realized that the event arouses them to look sustainable markets, diversifying exposure, and continuous afresh at everything: not only safety but also how BP resources (BP 2020). BP operates businesses in 79 countries sustainably creates value. Bob, therefore, came up with a and has 70,100 employees and has 19,341 million barrels of series of directions and strategies, which are „Value over the crude equivalent of proved reserves (BP 2020). volume‟, „Lower for longer‟, „Advancing the energy The business model of BP is mainly based on exploring transition‟, and „Fit for the future‟. (BP 2020). This shows and delivering energy; manufacturing, refining and marketing; Bob‟s action correlates with the definition of leader carried out and supplying services and products (BP 2020). Figure 1 by Northouse (2019). shows the BP business model. As BP‟s CEO, for example, Bob Dudley newly formed a 1.2 BP leader and manager - Bob Dudley special organization managing all issues of BP‟s response to Northouse (2019) argues that management is commonly the deepwater horizon explosion and separate them into clean- producing orders including staffing and organizing, up teams, coordinating with the American government and controlling and problem solving, budgeting and planning. On local officials, and managing the $20bn fund specialized in the other hand, leadership focuses on conducting changes and this disaster (The Guardian 2010). This illustrates how Bob movements, which comprise aligning people, motivating and executes in a manager position. inspiring, and establishing direction. However, Kotter (1990) 1.3 Mission and Vision of BP supposes that although major activities of management and BP‟s mission (Comparably 2020) is, in their activities, leadership are performed differently, they are crucial to seeking to perform successive, fundamental qualities - dealing, success for an organization. honest, integrity, treating people with respect and dignity, Bob Dudley, who worked as an engineer and spent 40 striving for mutual advantage and contributing to human years career in the industry, was assigned to be the chief progress. executive officer (CEO) from 2010 to 2020. Under Bob‟s As BP‟s vision statement, BP tries to have the best leadership, BP was focused on one of the most pressing competitive operating, commercial and financial performance.

Ling Han HUANG, “Leadership Evaluation and Human Resource Management Analysis: A Case Study of BP,” International Journal of Multidisciplinary Research and Publications (IJMRAP), Volume 3, Issue 1, pp. 87-99, 2020. International Journal of Multidisciplinary Research and Publications ISSN (Online): 2581-6187

To improve, and to be diverse, inclusive and accessible Dudley is fully an adaptive leader. He is commissioned as (Comparably 2020). CEO to tackle the disaster and he adopted a series of adaptive 1.4 Report Structure actions to achieve that goal. BP‟s chairman, Helge Lund This report is going to apply the methodologies related to (Financial Times 2019) said: “Bob Dudley was appointed leadership on the analysis of BP and CEO Bob Dudley. The CEO at the most difficult time in BP‟s history. He has carried objective of this report is to critically analyze and explain how out the recovery from the deepwater horizon disaster, rebuilt the leader and manager executes and leads BP to deal with its BP as a stronger, safer organization and helped it re-earn its specific challenge: CSR challenge. position as one of the energy leaders.” This authoritative To achieve this goal, an analysis of the leadership style of appraisal provides evidence that Bob is an adaptive leader. Bob applying three classical leadership theories will be carried Overall, according to the three classical leadership analysis out firstly. In the second stage, BP‟s challenge - CSR demonstrated above, Bob Dudley‟s leadership can be challenge - and its corresponding consequences will be identified as extraversion, conceptual skills, and adaptive specified. The following step is the critical analysis of Bob‟s leader; figure 2 summarizes his leadership features. execution and leadership when facing the challenge. Finally, proposing recommendations and insights for Bob Dudley concerning the challenge.

2. BOB’S Leadership and the Challenge Of BP This section is going to analyze the leadership style of Bob Dudley by applying leadership theories. Moreover, a challenge will be specified for the sake of the illustration of Bob‟s leadership. 2.1 Leadership Analysis of Bob To identify Bob Dudley‟s leadership, the following paragraphs will analyze Bob Dudley‟s leadership style using several classic leadership theories including trait theory, skills approach, and adaptive leadership. 2.1.1 Trait Theory The leadership trait theory deems that individuality traits impact leader occurrence and effectiveness (Colbert et al. 2012). Determination, intelligence, self-confidence, sociability, and integrity are five major leadership traits. Bob Figure 2. Bob Dudley‟s leadership

Dudley never breaks eye contact with the camera lens after 2.2 The Challenge of BP commissioned to be CEO. This indicates that he has a high Corporate Social Responsibility (CSR) is a combination of level of self-confidence. Furthermore, Bob announced that BP essential actions that a corporation has to take and it is aimed owes to the people of the gulf and that BP thinks of getting to to advance and protect society. The responsibility is mainly the bottom of this tragedy is BP‟s top priority. This claim made up of three areas: the organizational stakeholders, the could to some extent pacify the victims of the gulf; natural environment and general social welfare (Crane, Matten accordingly, he presented his sociability trait. and Spence 2019). BP faced considerable CSR challenges that Overall, according to the trait theory, Bob Dudley the reputation and long-term growth of BP would be damaged demonstrated possession of self-confidence and sociability. As if the challenge is not approached effectively and efficiently. a result, his leadership can be defined as Extraversion. Three issues in terms of CSR on BP will be analyzed in the 2.1.2 Skills Approach following sections. Mumford et al. (2000) suppose that leadership effects are a 2.2.1 The Organizational Stakeholders direct result of the leader‟s skilled competence in knowledge, BP has a serious stakeholder crisis since the oil spill crisis social judgment and problem solving-the skills include happened in April 2010. The main stakeholders related to the technical skill, human skill, and conceptual skill. This accident are the wildlife, the oil industry, fishermen, leadership analysis approach was applied to Bob; it is believed communities and tourist-driven businesses (Brennan 2013). that Bob has a high conceptual skill. For example, in the Figure 3 depicts the stakeholders‟ identification of the spill. speech of BP Energy Outlook 2035 conducted on 17 February 2.2.2 The Natural Environment 2015, Bob Dudley announced BP‟s strategic direction Energy-related emissions account for more than 70% of including shifting trade patterns and shifting response to the world‟s industrial CO2 pollution (Economist 2020). sustainability. These concepts have definitely illustrated his According to the statistical review of world energy (BP 2019), conceptual skill. carbon emissions rose by 2.0% in 2018, which is the fastest 2.1.3 Adaptive Leadership increase for the past seven years. BP has contributed to Heifetz, Ronald A. (2009) contend that adaptive leadership 34.02bn tonnes of carbon dioxide equivalent since 1965 (The is the performance of mobilizing people to deal with tough Guardian 2019), ranking the 6th in the most global carbon challenges. Instructed by this theory, is it believed that Bob

emissions top 20 companies (Visual Capitalist 2019). Figure 4 Moreover, BP stock price was punished by the market, shows the ranking of cumulative CO2 emitted by top energy decreasing by approximately 55% after the spill (Koda 2016). companies up to 2017 including BP. So BP is undoubtedly Figure 5 shows the BP share price decrease after the disaster. facing emissions challenges. BP‟s investors inevitably suffered significant losses because of environment challenge. Most importantly, BP‟s reputation suffered considerable damage provided that BP has an unsatisfactory CSR performance. 3. Reflection On BOB’S Management To reduce the impact on the environment, BP adopted a series of decommissioning actions under Bob‟s leadership. For example, about 97 percent of the materials that the majority is steel will be reused or recycled (BP 2017). This action could reduce the waste in terms of raw material; consequently, it contributes to the litter reduction. As for the safety of BP‟s staff who are very important stakeholders, BP uses technology to make people away from harm. For example, Bob, as a manager, uses drones to conduct inspections instead of people working at height. Besides, Bob, as a leader, keeps building a caring culture that everyone looks out for each other (BP 2017). Bob tries to achieve no accidents to protect their stakeholders under his leadership and management. In addition, the BP branch in Angola, under Bob Dudley‟s management, claimed it has increased the financial grant to $6.1 million through four years to support the action in Angola Figure 3. BP Oil Spill Stakeholders (Brennan 2013) of British landmine clearance charity the HALO Trust.

Additionally, $4.9million of funding has been agreed to 2.3 The Consequences of the Challenge bolster the $1.2million grant announced in May 2019 as the BP estimated the total bill for the disaster would be $42.4 pair broaden their ambitions to the region (Algeria Business billion, which includes fines and clean-up fees. Many Info 2020). This action enhanced BP‟s reputation by stakeholders suffered disadvantages in the crisis. For example, performing in terms of social welfare. fish commercial production dropped by 20% because of fishery closures.

Figure 4. Carbon Majors (Nieman 2017)

Figure 5. BP‟s Share Price after Oil Spill (Koda 2016)

As Bob Dudley‟s leadership and management actions 5. Conclusion show, his leadership regarding the CSR faced by BP is in This report has applied several classical leadership theories accord with the leadership style analysis. to analyze the leadership of BP‟s chief executive officer Bob Dudley and it is believed that Bob is of extraversion, 4. Recommendation conceptual skills, and an adaptive leader. According to his Although Bob Dudley has done an excellent performance leadership, CSR challenge BP faces has been discussed. Bob during the tenure of CEO in BP, for example, he has has done an excellent lead and managerial work when facing successfully saved BP from the oil spill disaster, there are the challenge. However, he is not flawless addressing the some suggestions that could contribute to better management challenge as a leader and manager; accordingly, several regarding the challenge. recommendations in terms of technologies, management, and First, BP should adopt a proactive way when tackling culture-building have been proposed. environmental issues. It could be better to be proactive rather The leadership theories can be practically and feasibly than adaptive to address potential environmental issues. Bob applies in the actual context to strengthen the leadership and Dudley (Linkedin 2020) has worked in the industry for many management through the whole report analysis. years; therefore, he could utilize his deep understanding of oil industry technologies to prevent environmental accidents by II. PART 2. HUMAN RESOURCE ANALYSIS technology innovation because preventing leadership is better Executive Summary than adaptive leadership. The objective of this report is to identify and analyze BP‟s Second, Bob could introduce more effective safety, health issues in terms of human resource management based on a and environment and other standards to protect their staff who series of classical and creative theories and then present are the important stakeholders of BP. Delicacy management feasible and practical recommendations to optimize the could be applied to reduce the risks in advance. Bob could use performance. The report covers five issues of HR practice path-goal theory to support the application for delicacy including talent management; health, safety, and environment; management by analyzing the specific steps among the risks. diversity management; expatriate management; project Third, Bob could initiate knowledge-sharing programs in management. order to acquire broad information and knowledge To achieve the goal, the report starts with the introduction improvement. For example, BP could collaborate with other to BP, which is followed by the first issue-talent management. oil multinationals such as Shell and Total to build platforms After the issue identification and analysis of talent and systems aimed at sharing information in terms of management, BP‟s most serious challenge is retaining talent. environment protection, safety technologies, and oil well Several potential solutions in terms of reward and culture are control technologies. Even experts could be temporarily put forward. The coming section is about HSE management in borrowed from each other when facing a severe emergency BP. Through the data, BP did not perform very well in such as Mexico Gulf Oil Spill. This could integrate industry personal safety; hence, some recommendations through safety sources as much as possible to face a challenge. culture and training are mentioned to improve its HSE The potential solutions proposed above are based on the management. The third issue of BP, which is diversity leadership theories and the actual context. They could be management, is compared with another oil giant - CNPC. It practical and feasible to address the CSR challenge that BP seems that BP has relatively good strategies but there is still a faces. space to advance. Expatriate management is discussed in the

fourth issue. Limited problems are found because BP has a A survey, conducted by Tennant (2012), found that almost long history of sending expats. However, some innovative 9 out of 10 upstream workers are likely to remain within the ways are introduced for BP to make the expatriate energy sector, but only 6 out of 10 believe that they are likely management better. Through the five issues demonstration, the to remain with their current organization. This survey also structure of each issue is made up of three parts, which are found that only one-third of upstream workers thought that literature review, discussion and analysis, and their organization used programs or incentives to retain recommendation. productive workers. Moreover, a global oil and gas survey The following section is the conclusion that summarizes (SPE research 2012) signifies that more than 50% of the the report as a whole. The key weakness of each issue that BP interviewees believe that the scarcity of training and career faces are emphasized. development would lead them to consider leaving their A reference list is the last part of the report. employers. Therefore, compensation and development should be the pillars of any retention strategy. However, other factors Introduction matter too such as benefit, flexibility, organization structure, BP, an energy multinational, operates businesses in Asia, career planning, promotion, opportunities to work abroad, and Europe, Australasia, Africa, South and North America. From support and recognition from managers. For example, wholesale to retail, from the desert to the ocean, BP supplies according to Maslow‟s Hierarchy of Needs (see figure 1) heat, light, chemical products and services worldwide (BP originally conducted by Maslow (1943), recognition from 2020). BP explores and yields petroleum and natural gas, managers can be thought of as achievement, which is in the refining products, and provides petroleum related products, fourth level - namely, self-esteem. transmits solar energy and petrochemicals. BP's chemicals covers ethylene, acetic acid, acrylonitrile and polyethylene (Bloomberg 2020). BP‟s mission is seeking to conduct successive, basic qualities in their activities - namely, integrity, honest, striving for mutual advantage, treating people with respect, and dedicating to human progress (Comparably 2020). BP‟s vision states that it puts efforts in the optimum competitive operation, financial and commercial performance. Keep improving, inclusive, diverse and accessible (Comparably 2020). BP is the sixth-largest oil and gas giant globally in terms of total market value and it employs approximately 73,000 people worldwide (Statista 2019). BP focuses on its human resource practices for the goal to retain its potential and talented staff and also to attract new workers. Although BP has conducted a series of relatively successful HRM strategies, there is still a space for introducing innovation and making change for further improvement.

Talent Management Figure 1. Malsow‟s Hierarchy of Needs model (Pich re, 2015) Literature Review Zhou (2018) argues that the modern work environment is Discussion & Analysis made up of outsourcing, increasing mobility, looser Talent management is thought of as identifying, attracting, psychological contracts between companies and their staff, engaging, developing, deploying and retaining employees who less foreseeable and more smooth career paths and more are assessed particularly valuable to an organization. Talent concentration on self-directed learning. From the management should adapt to business objectives and organizational perspective, the work environment organizational goals. By managing talents properly, characteristics result in new challenges to the retention of organizations are able to establish a high-performance unique and valuable employees. This correlates with the fact workplace, promote a „learning‟ organization, boom employer that talent scarcity and competition for proficient workers is brand, and facilitate diversity management. As a result, HR increasing and this trend is estimated continuous (Zhou 2018). professionals regard talent management as their crucial With the theoretical limitations, Thunnissen et al. (2013) priorities (CIPD 2020). allege that the present talent management literature As for Retention, BP ranks in the Bottom 25% of similar- overemphasizes the importance of human capital or talents sized companies in the US through the interview on and does not pay enough attention to other elements and employees about their pay, coworker quality and so forth resources that impact the company‟s performance. Effective (Comparably 2020). In addition, BP staff confirmed that BP talent management (ETM), however, needs expertise, was cutting employee‟s pension by up to 75% in early 2014, mechanism, and skills that exceed traditional human resource and therefore some long-standing staff resigned (Pomeroy management and influences the enterprise as a whole. 2015). BP claims that it has a worker turnover rate of 12%,

which might be low compared to the average in the UK. employees die in this accident. The coming year, when an Nonetheless, this figure is unsatisfactory when compared to exceedingly bad maintained crude pipeline ruptured and the average of oil and gas industry, with the fact that workers 200,000 gallons of crude oil were spilled through Alaska‟s would like to have a longer tenure in the domain (Pulsetip North Slope, BP was facing an unprecedented challenge once 2017). The turnover expenditure, on annual salary and on again (The New York Times 2010). Despite repetitive average, is 40% for mid-range positions. This shows replacing commitments to reform, BP remains to lag other energy staff could create more losses for a company. In light of organizations regarding safety, according to American federal calculations, if BP invests in employees‟ engagement that officials and energy analysts. Many issues still retard its would, in turn, dwindle turnover rate by 25%, the €91 million businesses in Alaska and Texas (The New York Times 2010). savings would be expected to BP (Pulsetip 2017). Hence, Moreover, On April 20, 2010, BP‟s crude drilling rig based on the data and theories above, it seems that BP needs to Deepwater Horizon, which was operating in the Macondo improve its talent management and that reducing employee Prospect in the Gulf of Mexico, exploded and eleven staff turnover is significantly indispensable. died. This accident is the largest oil spill in the marine oil Recommendation drilling practices history. Four million barrels of crude oil There are three pieces of advises could be adopted to flowed from the broken Macondo well over 87 days, prior to it tackle BP‟s talent management issue especially in terms of was finally fixed on July 15, 2010 (EPA 2017). retaining talent for BP. -Tailor rewards and retention strategies to individual employees‟ needs. For instance, cultural differences are likely to change the factors that are important for retention. Thus, BP should use different retention strategies in different places. -BP should make plans in place that will motivate valued employees to delay retirement. These plans could include elastic work arrangements, additional bonuses, work status change - for example, part-time, consultant, contractor, etc. Besides, giving the opportunity to mentor others has been found to persuade employees to delay retirement in the gas and oil sector (Deloitte 2012). Thereby, BP could build a sound talent mentor system to retain them. -Hofstede‟s organizational culture theory (Hofstede Insights 2020) third dimension - strict work discipline versus Figure 2. BP‟s Deepwater Horison oil well explosion (The Guardian 2011) easygoing work discipline - indicates the internal structure. According to this theory, an easygoing internal structure Moreover, statistic (see figure 3) from 2019 BP annual would be more attractive to talents because they usually report shows BP has nonnegligible safety events and oil spill perform excellent independently and strict discipline is a record. Overall, BP has a significant issue concerning safety limitation for them. Accordingly, BP should build an and the environment. easygoing work discipline for talent retention.

Health, Safety and Environment Literature Review There is no more valuable resource or asset than human resource. Maintaining and protecting human resource is therefore of paramount importance. All organizations in the energy sector-including BP-are concerned with the health, Figure 3. BP safety events and oil spill data (BP annual report 2019) safety, and welfare of the people engaged in their global Werner et al. (2016) suppose that the large incidences workplaces. The stakeholders of health and safety in BP‟s resulting in significant fatalities were largely the result of a business include employees, family members, customers, lack of emphasis and investment on personal safety, which suppliers, and communities (Werner, Inkpen and Moffett focuses on preventing slips, trips, and falls and encouraging 2016:127). There are many safety risks across the energy driving safety as well as safety in other personal activities that industry, from the risk of falling objects on a drilling rig to a could cause injury. The emphasis is on personal safety issues potential explosion at a petrochemical plant to malaria threats and personal or individual behavior. in Sub-Saharan Africa (Werner, Inkpen and Moffett 2016). Cummins and Herrick (2005) argue that the failure of Furthermore, in the global gas and oil industry, a firm‟s health, managers to conduct proper leadership and the failure of staff safety, and environmental (HSE) reputation and record are to conform safety procedures are the primary reasons why the essential to its license to operate. Texas refinery accident happened. Furthermore, the 2011 Discussion & Analysis national commission concluded that most of the missteps and BP has serious issues in terms of HSE. For example, in oversights in the Mexico gulf accident can be attributed to a 2005, BP‟s Texas City, Tex., refinery exploded and fifteen

single overriding fault - namely, a management failure strongest predictors of having low employee injury rates. (National Commission 2011). Table 1 lists the identification of Accordingly, BP could identify candidate‟s past safety- and BP practices that were contributing causes to the Mexico gulf health-related indicators-such as driving records and work accident conducted by the 2011 National Commission. records-when recruiting.

Table 1. Identification of BP practices in the disaster (National Commission Diversity management 2011) Literature Review Identification of BP practices in Mexico gulf accident • Workers fail to cease working on the Deepwater Horizon when facing a set Davis et al. (2016) contend that diversity management is of dangers and notices. the course and programs that managers make workers more • BP fails to wholly evaluate the risks concerning a series of practice decisions cognitive and sensitive to the needs and differences of others. lead to the explosion. Zalis (Forbes 2017) supposes that diversity is more successful • BP‟s cost-saving and time-saving policies without giving way to when it is everyone‟s responsibility rather than certain groups emergencies and mitigating measures. • BP fails to make sure that all the hazards related to works on the Deepwater of employees‟. Meanwhile, a study (Dizikes 2014) from Horizon are as low as acceptable. MIT found that diverse teams beat homogenous teams every • BP fails to enough supervise the activities relevant to the Deepwater time in work performance. Another research (Hunt at al. 2015) Horizon. from McKinsey concludes that firms with more diverse staff • BP fails to evaluate, approve, record, and communicate changes related to Deepwater Horizon workers and practices. perform better financially. • BP and Transocean fail (Transocean is the largest offshore drilling Zhou (2018) believes that the dominantly white managerial contractor in the world that provided the rig and crew for BP) to make sure workforce and male managerial workforce in the past have they had common, integrated measures to control the situation. given way to a multiethnic, gender-balanced workforce. For • BP fails to identify workers who need to be trained in well control practices. instance, merely 29.6 percent of the American labor force was women in 1950, but females comprised 47 percent by 2014 Based on this theory and according to the two cases (Texas (Toossi 2002). Zojceska (2018) comes up with the top 10 refinery incident and Mexico Gulf disaster) mentioned above, advantages of diversity (see figure 4) in a work context. BP has severe health and safety issues. Hence, it is necessary to improve diversity management in an Recommendation organization. To address the HSE issues that BP faces, there are several solutions could be considered in terms of safety culture, staffing, training, performance management, and compensation. Cooper (2000) believes that the importance of safety in the energy sector necessitates building a safety culture in organizations. Accordingly, BP could consider the following suggestions to achieve a safety culture.

Table 2. How to build a safety culture for BP Suggestions to build a safety culture -First, practices have to be put in place that is consistent with a strong safety culture. These include extensive health and safety programs and HR practices that strongly support safe behaviors and safety-focused decisions. -Second, management‟s attitudes and behaviors must show support for a strong safety culture. Because Murugeson and Chelliah (2012) posit that the introduction of extensive health and safety programs and HR practices that support safety lead employees to conclude that management has a strong Figure 4. Benefits of diversity in the workplace (Zojceska 2018) commitment toward safety. -Finally, safety officers and safety committees should be given high status through rewards, recognition, and access to resources (Clarke 1999). Discussion & Analysis Consequently, HR practices are critical to the maintenance and development A survey (Catalyst 2019) shows that fewer females in the of a safety culture. energy industry than almost any other major industry, that female makes up roughly 22% of workers in the oil and gas Based on the safety culture, BP should avoid hiring sector and that gender diversity dropped with seniority. All employees who have a tendency to take health- and safety- over the world, women take up: related risks. The following two measures could be  27% of junior positions (requiring bachelor degrees) considered.  25% of mid-career roles -Recruit applicants who tend to not take safety-related  17% of senior/executive-level roles risks. For example, making sure that BP‟s job announcements  1% of CEOs and advertisements highlight the importance of safety on this Further, figure 5 depicts the women workforce share in job. energy-related industries in 2018. -Select applicants who tend to not take safety-related risks. Based on the data, although the percentage of the female Vredenburgh (2002) concludes that selecting employees based workforce is improving, it still has a long way to go. on the safety records of their previous jobs was one of the

When it comes to BP, in 2000, the rate of woman team management performance of BP, a caparison between BP and leaders at BP was 9%. That rose to 17% in 2012, and BP set a CNPC is carried out (see figure 6), CNPC is China National goal of 25% by 2021 (Tennant 2012). BP believes that having Petroleum Corp, the state-owned corporation of the second- an inclusive culture will contribute to attracting the most largest oil producer in China (Fortune 2020). diverse employees (BP 2020). In order to show the diversity

Figure 5. Proportion of women workforce in energy field (Catalyst 2018)

Figure 6. Comparison of actions for diversity management

From the comparison, it can be seen that the most more on gender balance while CNPC thinks of localization as significant difference between the two oil giants is BP focuses its priority. This phenomenon could be explained with the

individualism versus collectivism dimension of national BP has thousands of expatriates in more than 60 countries culture theory (Hofstede insights 2020). As a UK company, including 55 different home countries. BP takes a two-way the individual is emphasized to be protected well. For movement transfer strategy. For instance, in Angola, BP tries example, if a female is rejected because of gender by a firm in to be regarded as an Angolan company with Angolan staff but the UK, this company could suffer a serious penalty. While in there are temporarily not enough engineering graduates in China, most oil companies would overlook this gender issue Angola (last 15 years) so BP has to send in expatriates from because they regard collective profit as a priority. other countries (Employee Benefits 2008). However, BP also Recommendation sends Angolan branch workers as expats to elsewhere to There are some more measures could contribute to further develop their skills and abilities and then take back to diversity management for BP including: Angola. BP‟s fundamental reward mechanism follows a -Require managers to learn the statute of equal work balance sheet process and differentiates pay distribution to opportunities. performance. However, assignment terms stay unchanged for -Provide training for managers on the benefits of diverse workers on the same level and do not accord with performance manpower, which can serve various markets of customers. (Employee Benefits 2008). -Build individual development practices that generate and Recommendation advance their skills and ability. Although it seems that BP hasn‟t done anything significantly wrong, there is a space to improve its expatriate Expatriate Management management. The following suggestions in terms of Literature Review performance management could be adopted to advance BP‟s In the contemporary world economy, having a diverse expatriate management. workforce is a competitive advantage. Nearly 80% of midsize -While supervisors are normally believed to be the most and large companies periodically send workers abroad and proper source in assessing the performance of employees, for 45% of the companies will increase this number (Harvard expatriates in remote locations, supervisors may be a continent Business Review 1999). Sending staff to work overseas for way. Thus, greater reliance may need to be given on operational and strategic reasons is becoming a common assessment from colleagues and non-line managers because action. PwC anticipates a 50% rise in global mobility in 2020 they work with the expatriate closely so that they could know (Allianzcare 2020). the expatriate‟s performance better. -BP should build clear performance appraisal standards for Discussion & Analysis expatriates and define the expatriates‟ performance using these Werner et al. (2016) found that in the oil and gas industry standards. These standards should be informed and explained upstream, which is about the exploration, development, and to expats before sending out. production of the base hydrocarbon, rotators are a common Moreover, there are two recommendations through training type of expatriate. As the upstream operator says, “You go could be considered to improve BP‟s expatriate management. where the oil is”. Rotational staff are workers who regularly -BP should be mindful that training should be tailored to move to a work site on a stable schedule, such as 28 days the individuals being trained. For example, younger workers work and 28 days rest, or 28/28 (which is the most common; may be far more comfortable than older workers with training others include 35/35 and 21/21 days). Figure 7 shows the software based on mobile devices. number of rotators worldwide. -Remote locations may make monitoring and evaluation of training and its transfer to the workplace more difficult. Thus, BP should make sure that feedback loops are in place in these contexts. -Other oil giants tried to apply advanced technology to support their training and other works. For example, Shell tries to exploring the use of artificial intelligence software to determine training needs while Baker Hughes is using artificial intelligence software to monitor rigs and write some safety reports (Financial Times 2014). BP should try to introduce these high-tech measures to enhance its programs on expatriates. For example, BP could build a database

Figure 7. Number of rotators worldwide (Deloitee 2013) containing culture, security, regulation, expertise and so forth of their operation counties for expatriates. This could be more McNulty (2013) supports that expatriate management convenient for expats to learn. includes many details such as its commercial objective, its Project Management relationship between business strategy and human resource Literature review management, selection issues, occupational development, Project management (APM 2019) is the application of compensation, and family members of an expatriate who experience, skills, measures, expertise and processes to require a distinctive, customized practice of expatriate achieve targeted project goals following the project acceptance management. criteria on the agreed scale. Project management has eventual

deliverables that are restricted to a finite budget and timescale. -Recruiting project manager. Project managers are Wilton (2013) argues that human resource management (HRM important to the success of projects. To recruit effective or simply HR) is all the activities in an organization related to project managers, it is necessary to know what skills are job design, appraisal and reward, training and development, needed to do the job (Fabi & Pettersen 1992). Fisher (2011) recruitment and selection, staff motivation and control. In a believes these skills tend to be categorized as interpersonal, different light, HRM signifies the outline of practices, policies, managerial, and technical skills. Interpersonal skills include philosophies and procedures for relationship management, a communication, motivation, leadership, and negotiation. relationship between employees and an employer. Moreover, Managerial skills cover planning, organizing, problem- Brewster (2012) contends that international human resource solving, goal setting, and analyzing. Technical skills include management refers to how multinationals manage the expertise in the content area, the technology used, computer requirement that the firm has an international coherence and technology, and project processes (Kerzner 2013). Also, cost-effective way to manage workers in all the countries it surveys conducted by EI-Sabaa (2001) and Pettersen (1991) covers while ensuring that it actively responses to the show that interpersonal skills are most important, followed by differences from one place to another. It can be seen that managerial and technical skills. Therefore, BP should follow human resource management has a series of impacts on the standards and skill requirements when recruiting project project management in light of definitions. managers.

Discussion & Analysis Conclusion The projects in the oil and gas industry are now bigger, In order to achieve the goal of this report, five human more complex, and riskier than ever before and thereby create resource issues of BP are chosen to discuss and analyze, with increasingly difficult challenges including technical, a series of analytical theories. managerial, and human resource challenges (Badiru & According to the analysis of BP‟s talent management, BP Osisanya 2013). has a relatively high turnover rate. This report provides three Project management is crucial to an organization in the oil internal and external methods to address this problem. and gas industry. For instance, a study of mega oil sands For health, safety and environment management, BP has projects in northern Alberta concludes that many projects serious accident records in safety and health. The three suffered from remarkable cost overruns. The reasons for the recommendations for this issue focus on building a safety cost overruns include many HR issues regarding the labor culture. workforce, labor productivity, shortage of skilled labor, and Diversity management of BP is not so urgent that a long- high labor turnover. Thus, human resource management is term improvement strategy would be reasonable. exceedingly important to project management. BP has accumulated much expatriate management BP operates oil and gas projects in the exploration, experience in the long period of international business. This refining, production, trading and distribution globally. To report provides several innovative expatriate management achieve excellent project management, BP made much effort. measures, such as hi-tech training for expats, to advance its For example, BP set up a Major Projects Group to manage the expatriate management. various project activities (Dick-Peddle 1995). In the projects Project management is important for this project-oriented of BP, project managers take the lead at all stages of the company and HR management is the key to project project lifecycle, the stages include planning, design, management. Although BP has a long history in project procurement, construction, and commissioning (BP 2020). management, this report supposes that BP should keep This simplified project organizational structure could be seen improving HR practice to support its projects. Three as delicacy management, which is relatively efficient for recommendations that concentrate on recruiting project project management. In addition, this project structure could managers and employees are mentioned. benefit talent retention. Overall, BP has relatively good project The advice are based on BP human resource performance. management because BP has a long history of project However, some recommended solutions are not flawless such operation. as considerations that cannot benefits every aspect of the company. For example, the recommendation of building a hi- Recommendation tech training system could cause high financial pressure and Some extra potential ways could be added to better project could be ineffective to those staff who are unwilling to receive management for BP in terms of human resource management. a new type of training. Therefore, some suggestions -BP should try to hire external candidates for projects mentioned in this report should be critically reviewed from a because having no internal ties can make a worker more macroscopic perspective before implementation. impartial in their decisions. -Recruiting for long-term employees with core skills Special Finding frequently involves the use of headhunters, personal contacts, Since the world health organization (WHO) was informed and the grapevine, as well as a relationship with professors of Corona Virus (COVID-19) detected in Wuhan, Hubei and administrators at universities and technical schools Province, China On 31 December 2019, there are 2,564,515 (Keegan & Turner 2003). Hence, BP‟s recruiting process confirmed cases (see figure 8) all over the world by the end of tends to be more interpersonal and less formal. 22 April 2020 (Johns Hopkins University 2020).

Figure 8. COVID-19 confirmed cases statistic (Johns Hopkins University 2020)

Figure 9. Appreciation from students for no detriment policy

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