ExxonMobil Case Essay
1. Provide a brief description of the industry. “ ExxonMobil has evolved over the last 125 years from a regional marketer of kerosene in the U.S. to the world’s largest publicly traded international oil and gas company.” Providing energy helps stabilize economies and improve living standards worldwide. Today, ExxonMobil operates in most of the world’s countries and is best known by familiar brand names: Exxon, Esso and Mobil. ExxonMobil creates products that compel modern transportation, power cities, lubricate industries and provide petrochemical building blocks that contribute many consumer goods. ExxonMobil is an extremely large industry providing 9.2 million jobs, and 5.3% of the U.S. employment. The labor income is $533.5 billion, and 6.0% of U.S. labor income. ExxonMobil operates in 77 countries worldwide, and employs 82,100 employees (Exxon Mobil Corporations, 2003-2012).
2. Outline a recruiting and selection strategy for your selected MNE that could be used to effectively meet organizational requirements for operating in multiple countries. The HRM staffing selection by ExxonMobil appears to be geocentric. A strategy that is valuable for the success of the organization because it enables the development of a global perspective. In addition, this tactic has generated an internal pool of labor. The organization has many successful years of working with governments and partners to deliver on their pledge of performance. ExxonMobil focuses on integrating local knowledge and experience of its partners with global capabilities to deliver outstanding results and benefits. ExxonMobil has a proven record of job creation, outstanding training and career development for national staff, support for local industry and community investment. ExxonMobil brings the advantage of established business management and support systems and experienced support staff to all its partnerships.
The company is organized along functional lines, with each global company specializing in a particular sector of the oil, gas, and chemical businesses. The organizational structure is designed to encourage the employment of people with diverse skills quickly and effectively worldwide. In the selection of an expatriate, IHRM should consider cross-cultural suitability, family requirements, technical ability, and language to be primary factors. ExxonMobil takes pride in being an equal employment opportunity. Multinationals must resolve any issues of equal employment in all its locations. The various laws must be considered, and therefore ExxonMobil has established “The Standards of Business Conduct”. “It is the policy of Exxon Mobil Corporation to provide equal employment opportunity in conformance with all applicable laws and regulations to individuals who are qualified to perform job requirements regardless of their race, color, sex, religion, national origin, citizenship status, age, genetic information, physical or mental disability, veteran or other legally protected status.
The corporation administers its personnel policies, programs, and practices in nondiscriminatory manner in all aspects of the employment relationship, including recruitment, hiring, work assignment, promotion, transfer, termination, wage and salary administration, and selection for training. Managers and supervisors are responsible for implementing and administering this policy, for maintaining a work environment free from unlawful discrimination, and for promptly identifying and resolving any problem area regarding equal employment opportunity.” In addition the company incorporates other special policies that include: develop and support educational programs, and policies that facilitate employment of minorities and women. Arrangements that help meet the needs of the diverse work force and balance work and family obligations.
The company encourages training and development efforts, practices, and programs that support diversity in the work force that represent minorities and women. A work force is promoted free of sexual, racial, and other harassment. Accommodations for the disabled and the management responsibility in all matters are emphasized at every level or the organization. It appears ExxonMobil has adopted a formal open typology. This process would promote the continued success of the organization with: clearly defined criteria and measures, training, open advertising for vacancies, and panel discussions (Exxon Mobil Corporations, 2003-2012). 3. Outline a training and development strategy for your selected MNE that could be used to effectively meet organizational requirements for operating in multiple countries. In order for an established organization like ExxonMobil to train and develop a qualified staff, HR management must play a critical role. Special universities should be development for ExxonMobil like McDonald’s and Motorola with in-house training facilities.
This allows for the important training and development. ExxonMobil already focuses on cultural awareness and technical ability. As HRM this training would be intensified. International teams would be developed in an effort to encourage innovation and transfer knowledge. In addition, teams may breakdown functional and national boundaries, enhance communication, develop a global perspective, and develop shared values (Peter J. Dowling, 2010). 4.Outline a compensation strategy for your selected MNE that could be used to effectively meet organizational requirements for operating in multiple countries. IHRM should recognize the correlation of compensation and performance.
IHRM must ensure that the compensation policy is consistent with the overall company’s policies. Compensation must also be competitive and provide excellent incentives. IHRM compensation strategy would include: above average salaries, competitive benefits, opportunity for financial advancement, opportunity for career advancement, provide assistance for any adjustment issues such as: housing, family, education, daycare, and repatriation. The Balance Sheet approach would compensate expatriates.
This approach helps the employee maintain the living standards they are accustomed to, in addition, to providing the associate with a financial inducement. The balance sheet approach allows for personal goods (food, personal care, clothing, furniture, transportation, and health care), housing, income taxes, and reserves (which include savings, benefit payments, contributions to pensions, education expenses, investments, etc. Balance sheet approach offers several advantages that include: equity facilitates re-entry, and it is easy to communicate (Peter J. Dowling, 2010) .
University/College: University of Chicago
Type of paper: Thesis/Dissertation Chapter
Date: 26 November 2016
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