Outsourcing of personnel to Oil and Gas companies worldwide

by

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION1

Background of the Study1

Research Aim and Objectives2

Research Questions2

CHAPTER 2: LITERATURE REVIEW3

Human Resources Activities3

Human Resources Outsourcing Trends4

Outsourcing Drivers4

Human Resources Functions Being Outsourced5

HRO Service Buyer's Criteria to Select HRO Vendors6

Industry Profile7

Human Resource Management in Oil and Gas Industry8

Human Resource Outsourcing9

CHAPTER 3: METHODOLOGY10

Research Methodology10

Qualitative Method10

Data Collection Method11

Literature Search11

Interviews11

Participants11

Ethical Considerations12

Researcher Bias12

REFERENCES14

CHAPTER 1: INTRODUCTION

Background of the Study

Human Resources Management (HRM) is defined by the Society for Human Resource Management (SHRM) (2009) as the formal structure within an organization responsible for all the decisions, strategies, factors, principles, operations, practices, functions, activities and methods related to the management of people. All decisions affecting the workforce of an organization concern human resource management (HRM), regardless of its size or existence. The HRM system has five functional areas: staffing (which involves the following activities: job analysis, HR planning, recruitment, and selection), HR development (which include: training and development, career planning and development, organizational development, and performance appraisal), benefits and compensation (which includes: pay, benefits and nonfinancial rewards), safety and health, and employee and labour relations (Ladika, 2007, 68). These HR functions and activities are highly interrelated and they are practiced through the organization at all levels.

For years, the HR departments have been under the pressure of being a strategic partner in an organization, rather than part of a support system. This transformation being experimented by the HR profession has triggered important forces like: the use of technology in HR processes and outsourcing. Human Resource Outsourcing (HRO) is part of the business process outsourcing (i.e. process of hiring another company to handle business activities), one of the three broader areas in Outsourcing with $3.2 billion in market revenue worldwide for 2007.

Organizations around the world have been considering Human Resources Outsourcing as part of their strategy to cut corporate costs and enable internal employees to focus on the organizational goals. On the other hand, research have found there have been changes in the way Human Resources Service Buyers select their Human Resource Outsourcing Service Providers (HROSP), what services they buy and how they manage the deal after it is signed.

Research Aim and Objectives

The aim of the research is to understand the outsourcing of personnel in Oil and Gas Industry. This aim will be achieved through following objectives:

1.To analyse the importance of Outsourcing

2.Identify the need of outsourcing of personnel in Oil and Gas Industry

3.Highlight the benefits of outsourcing of personnel in Oil and Gas Industry

4.Identify the strategies used by HRM for outsourcing in the Oil and Gas Industry

Research Questions

What is the importance of Outsourcing?

Why is there a need of outsourcing of personnel in Oil and Gas Industry?

What are the benefits of outsourcing of personnel in Oil and Gas Industry?

What are the strategies used by HRM for outsourcing in the Oil and Gas Industry?

CHAPTER 2: LITERATURE REVIEW

Human Resources Activities

This focuses on the outsourcing of Human Resources functions, as defined by the (En-shun (2007), A contractual agreement between an employer and an external third-party provider whereby the employer transfers responsibility and management ...