Human Resource Management for BHP- Free Samples to Students

Question: Discuss about theHuman Resource Management for BHP Billiton in Australia. Answer: Human resource management (HRM) enhances and maximizes the performance of employees within the organisation of strategic objectives of the employer. Policies of the system are focused by human resources and associated management of the employees of the organisation. Promotion and compensation plays an important role to determine the efficiency of the HR structure of a company. It has been found that organizations having a dynamic HRM also have an excellent compensation and promotion schemes within the organisation. The HRM of BHP Billiton in Australia provides compensation around AU$ 273000 for senior executives, AU$ 250000 for executives, AU$ 194360 for senior directors, AU$ 153480 for directors, AU$ 100940 for managers, AU$ 80400 for supervisors and AU$ 50120 for the associates (Bhpbilliton.com 2017). Figure 1: VROOMs expectancy theory (Source: Inspired from L?z?roiu 2015) According to Vrooms expectancy theory, there is a link between behaviour and rewards. The expectancy of the employees is governed according to their training and job description as well as educational background and competency. The agency theory is also applicable as it focuses on the different goals and interest of the organisation stakeholder as well as compensation of the employees for alignment of interest and goals. The employees and employers being the two primary stakeholders of BHP Billiton, highlights that compensation of the employees is the agency cost and the employees always expect higher agency cost that the employer tries to minimize. Hence, the alignment between employee interest and employer interest is executed through behaviour oriented or outcome oriented payment through merit pay, profit sharing and commissioning system in BHP Billiton (Gupta 2014). Promotions are also prioritized as an important technique by HRM of BHP Billiton to maintain a healthy employee relationship as well as motivate them for better performance and enhance the employee productivity. Promotions and compensations also help the HRM to increase employee retention and promote a good organizational culture through increasing job satisfaction of the employees. The BHP Billiton has increased its revenues to around AU$ 30912 million with a total operating income of AU$ 6235 million. According to Kiatkawsin (2017), the total number of employees being around 65000 the retention has increased by approximately 87% with attractive promotion schemes. The HRM of BHP Billiton decided to increase promotion schemes as well as compensation to maximize their production level and hence increasing profits. HRM of BHP assumed that with financial reward, the employees would be motivated to increase their productivity level. BHP Billiton conducts feedback sessions with the employees to understand the satisfaction level of employees and their needs. The feedbacks obtained provide an insight regarding the expectancy of the employees. Further training sessions is conducted to understand competency level of employees and keeps a performance track. Wickramasinghe (2016) stated that if the performance of an employee is found to be above 50%, the employee is rewarded with compensation. Higher performance level leads to better promotion option for the employees within BHP Billiton. Moreover, the compensation is based on the expectancy of the employees that is determined considering employee educational background, competency and skill sets as well. Thus, it is seen that the primary reason for compensation and promotion within BHP Billiton is to promote employee retention, employee satisfaction, increase productivity and performance of the employees. Reference Bhpbilliton.com, 2017. BHP Billiton, Available at: https://www.bhpbilliton.com/ [Accessed 4 May 2017] Gupta, N. and Shaw, J.D., 2014. Employee compensation: The neglected area of HRM research.Human Resource Management Review,24(1), pp.1-4. Kiatkawsin, K. and Han, H., 2017. Young travelers' intention to behave pro-environmentally: Merging the value-belief-norm theory and the expectancy theory.Tourism Management,59(2), pp.76-88. L?z?roiu, G., 2015. Work Motivation and Organizational Behavior.Contemporary Readings in Law and Social Justice, 7(2), pp.66-75. Wickramasinghe, V. and Samaratunga, M., 2016. HRM practices and post-promotion managerial performance: Subordinates perspective. Evidence-based HRM: a Global Forum for Empirical Scholarship, 4(2), pp. 144-161.