Shell Pakistan

The aim of this report is to provide you the insights of motivational factors that Shell company use to motivates its employees to work in different departments. In Shell Pakistan there are thousands of people working and in order to motivate them, Shell use different motivational theories which help us to relate with our organizational behavior subject study.

About Shell Shell is a global group of energy and petrochemicals companies with around 94,000 employees in more than 70 countries and territories. Shell aim is to meet the energy needs of society, in ways that are economically, socially and environmentally viable, now and in the future. It is a 2 nd largest oil marketing company in Pakistan.

Our values As a global energy company, we set high standards of performance and ethical behaviors. We are judged by how we act - our reputation is upheld by how we live up to our core values honesty, integrity and respect for people. The Shell General Business Principles, Code of Conduct and Code of Ethics help everyone at Shell act in line with these values and comply with all relevant legislation and regulations.

Shell People Our people are central to the delivery of our strategy and we involve them in the planning and direction of their own work. We create a work environment that values differences and provides channels to report concerns. (shell.com) We value communication and consultation with our employees, directly or via staff councils or recognized trade unions. We encourage our staff to report their views about our processes and practices safely and confidentially to managers or Human Resources staff. Our global telephone helpline and website enable employees to report breaches of our Code of Conduct and the Shell General Business Principles, confidentially and anonymously. Shell Pakistan always puts the safety & security of its employees first. This depicts that the organization has a deep concern for its employees & value the work & efforts by which it wants to achieve success.

From our research and interview from Mr. ShahidAbbasi (Production Manager, Shell Pakistan), we have identified the following motivational factors that are practiced continuously in Shell to motivate employees.           

Employee Appraisal Intrinsic Awards Employee Involvement Skill-based Pay Plans Flexible Benefits Benefits programs Training provision Time off and time out Our diverse global community Sports and social activities Listening to our employees

Let’s begin with motivation in organizations and how it drives in the workplace. Motivation is about the ways a business can encourage staff to give their best. Motivated staff cares about the success of the business and work better. (http://www.bbc.co.uk/schools/gcsebitesize/business/people/motivationrev1.shtml)

According to the definition and motivation process model we can understand that in order to motivate an employee, the management should understand the human behavior first. People do what they want to do, or they need motivation. So in organizations people can either be self-motivated or make them motivated through external incentives.

Job Performance Ability in turn depends on education, experience and training and its improvements is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation.       

Positive reinforcement / high expectations Effective discipline and punishment Treating people fairly Satisfying employees needs Setting work related goals Restructuring jobs Base rewards on job performance

SHELL PAKISTAN is a huge setup and has about 2000 employees. To keep all of its employees motivated is a very complex task, because of the large number of employees and as each employee has his/her own personality. It becomes virtually impossible to devise techniques that match the personality of all the employees. So for this purpose they have certain procedures and policies jointly for all the employees of the organization. Excellent Working Environment Excellent working environment that SHELL PAKISTAN provides, these employees seem to be seldom de-motivated. It was surprising for us to find that there had been various employees who just wanted to work in SHELL PAKISTAN because of the working environment they provide regardless of what they are paid and what job responsibilities are they given. This turned out to be one of SHELL Pakistan’s strongest points. Job Security Working at SHELL Pakistan seems to be a secure job as far as the permanent and high-level employees are concerned.

Employee remarks Aviation Contract Manager Aviation Contract Manager (Current Employee), Anchorage, AK – October 11, 2015

Pros: Pay, benefits, working with other professionals, safety climate, company genuinely cares about its employees Shell is an excellent company to work for and they do take care of their employees. The employees are professional and are great to work with. Pay and benefits are outstanding. It is hard to find an opening

given

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(http://www.indeed.com/cmp/Shell/reviews?fcountry=US)

Market Competitive Salaries Shell provides good market competitive salaries with other lucrative benefits so employees can support their families and must be satisfied in affording their expenditures. Insurance & Medical Benefits All permanent employees at SHELL Pakistan enjoy the Life Insurance and Medical Benefits that are entitled to them.

Employee Safety The employee safely is given top most importance and they also have an emergency evacuation system with which the entire organization can be evacuated within minutes. The employees also given various training and sometimes perform various drills for employee safety. The employee seems to be satisfied with the safety that SHELL Pakistan provides to them.

Good Working Relationship At SHELL PAKISTAN, these needs are quite well satisfied since the employees have a good working relationship even though there is an air of competency surrounding them.

Company Events and Privileges All employees are given the special privilege to join and use the SHELL club, gym, attend in Company events, dinner etc. thus allowing them to intermingle with each more.

Training Employee training workshops are conducted on a need basis. Trainings are carried out in areas such as: 

Improvement of Business Communication skills

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Usage of new Computer software. For e.g. SAP

Employee Job Rotation For the purpose of employee growth and increase in motivation, employees are often rotated within or between departments .

Encourages Ideas Employees are encouraged to put forward any creative, beneficial ideas. If the idea seems to be attractive, SHELL PAKISTAN gives the employees the opportunity to implement the idea. This turns out to be a very encouraging and motivating approach for the employees and later on the employees are rewarded if the idea is implemented well.

Equity Theory applying at Shell

Employee Performance Appraisal Employee performance appraisal procedure is highly accountable thus leaving no chance of inequity among employees. At Shell Pakistan, employee appraisals are conducted annually to evaluate their work related and personal performance. The process of appraisal works in various steps. The appraisal process is held in between the months of July and June every year. Performance Appraisal at Shell Pakistan is a six step approach. Step 1: Shell Pakistan HR department have designed two forms named as Form 1A and form 1B to measure the milestone, target achievements that were made last year. This is done by comparing the goals set last year for each individual employee under their department. Once measured, it is sought out to what extent the company was successful in achieving its target. Also, targets are set for the next year on the basis of this measurement. Step 2: In the next step, HRM department does performance analysis by distributing to departmental heads and supervisors Form 2A and 2B (Collectively known as Employee Development Report) to measure the employee's capabilities on 24 different attributes and of the attribute is rated on the scale of 1 to 5; summary of these points is reflected in the table below. Point Summary

1 Inadequate or Not satisfactory 2 Marginal or Below Average 3 Average 4 Above Average 5 Outstanding

The 24 different attributes are divided in to key 4 sections; a summary of those is listed below: Employee Development Report (EDR) A - What did the employee accomplish? B - Gets the job done? C - How employee manages the job-consider the degree to which the employee's personal qualities contribute to personal effectiveness? D - What is the employee's knowledge? Consider the employee's Knowledge is functional and related fields and understanding of environment matters necessary for effective performance?

Intrinsic Rewards at Shell Pakistan At the end of the year MD performance award are given to outstanding employees whose hard work has brought about some difference and created value for Shell Pakistan. Shell rewards top employees with prizes and recognition certificates.

SAP IT Recently, Shell Pakistan gained the capability of implementing SAP process in their organization. To recognize the effort of the SAP IT team, a grand party was organized to credit their work.

Employee Involvement AT Shell Pakistan Shell Pakistan started employee involvement programs i.e. involving workers in these decisions that affect them. By increasing employee's autonomy and control over their work life, employees will be more productive, more motivated, more committed to the organization and more satisfied with their jobs. But the upper management takes all top and highly important decisions.

Management Participation

At Shell Pakistan the employees can assist their managers in setting work schedules such as flexible compressed week etc. and selecting the right target segment. Such participation programs provide intrinsic rewards for them. It can make their jobs more interesting and meaningful.

Employee Salary Evaluation An employee's educational qualification is given highest importance when evaluating salary. It may be possible that a lower grade employee, within the same or different department, has a higher salary than someone in an immediately higher grade.

Expectancy Theory at Shell At Shell Pakistan, the employees believe in maximum effort which leads to good performance which further results in the outcome in the form of rewards like a raise in income, promotion, performance appraisal letter etc. that contribute towards their personal goals.

Effort At Shell Pakistan, the employees are aware of the fact that if they work competently and put their efforts, they will be able to attain the task performance, as the effort expanded by them will have a positive result

Performance& Rewards When the employees of Shell put their efforts, they attain a desired performance level and consequently are evaluated on that ground.

When the employees attain certain level of work performance gauged against the goals set at the start of the year, they are positively evaluated and get rewards in shape of annual increment; and organizational performance rewards etc.

Retirement Plans One more source of motivation for the employees of SHELL PAKISTAN is the secure future ahead of them. Shell Pakistan offers a good retirement plan. All regular permanent employees will be entitled to long term benefits such as: 

Provident fund

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Gratuity after 5 years of service in the company

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Pension at retirement after at least 10 years of service in the company

Video Linkhttps://www.youtube.com/watch?v=nwlpNqvzlKg Provident Fund The company provides provident fund that again is voluntary. The company adds to the provident fund as much as the employee does. There are 2 types of provident funds: Single Provident Fund that amounts to 8.33% of the employee's salary Double provident fund that amounts to 16.66% of the employee's salary

Gratuity Fund The gratuity fund is one-month gross salary that is added to the employees account at the end of each year virtually. The employees can only withdraw it after retirement or after resigning from the company. Health Insurance The company provides 100% health insurance to not only to employees but also to their immediate family. This doesn't include the maternity cases to either employees or to the family members. The company also provides once in life time any large problem that might last life long. It can include heart disease or a life long problem like back discs operation and it's afterwards medication. In one of the cases, one of the managers had a disc relocated operation and didn't come to office for 6 months but was still being paid for these 6 months apart from getting all the expenses paid for his operation and medication by the company. Unexpected Conditions SHELL PAKISTAN goes an extra mile to help its employees in unexpected conditions like economic conditions or a plant shut down etc. The business of furnace oil had a nosedive in recent times and hence one of the plants of furnace had to be shut down. So the workers of that plant were jobless but SHELL PAKISTAN didn't leave them in that condition. It took the responsibility of placing them some where in other plants. By now almost all the employees are

place somewhere and during that time where the placement was being done. SHELL PAKISTAN gave them 100% of their pays. Rightsizing SHELL PAKISTAN doesn't believe in the policy of rightsizing. It has never fired its employees for the sake of rightsizing. The only time it did was called VSS (Voluntary separation service) in order to inject new blood into the organization. It was a 100% voluntary move where the employees were given a chance to leave the organization on their own consent. Around 700 employees apply for this service. The choices they were given were amazing. They were given three times the basic salary earned so far. According to the HRM dept. of SHELL PAKISTAN this was the best ever offer of separation for employees in Pakistan. This step was taken to change the culture at SHELL PAKISTAN to a more professional one by in taking 300 to 400 highly professional staff as the replacement of leaving employs. De-motivated Employees There can only be one kind of de-motivated employees in the company, for whom things are not going according to plan and expectations. The possible factors can include project failure, unhealthy relations or poor performance appraisal. For all these kind of de-motivated employees the HRM department and department heads use the following techniques. (Latham, 2007)

Counseling Counseling is done with the de-motivated employees and the HRM department and the department heads discuss their problems. Both the parties try to share ideas and views and try to bring the situation to a normal condition. The HRM department believes in Open door policy, any one from any group level can discuss their work related or social issues if any. Career Development Career development is done specifically for those who have a project failure. The department head along with the HRM try to find reasons for the failure and try to see where the employee fits the best. (Latham, 2007) SURVEY DETAILS The main purpose of this survey is to study, how employee feels about work environment, Job Satisfaction, Employee empowerment Flexible benefits and Performance appraisal satisfaction. These factors would then enable me to infer either employees of SHELL PAKISTAN are motivated or not? I selected random sample of 50 SHELL PAKISTAN employees to conduct this survey. Following the analyzed results obtained as a result of the survey

Job Satisfaction I have adequate information available which enables me to do my job well. Major number of employees knows about their over all responsibilities in organization. Generally, at the time of appointment there is an orientation process to employees about organization and they also have free access to the Code Book of SHELL PAKISTAN so employee knows about the general rules and regulation to do his/her job. Specifically, departmental heads are responsible to brief employee about his/her job. I understand the day-to-day goals of my department. Most of the employees understand the day-to-day goals of the department. Departmental heads provides day to day task to the concerned employee. I feel valued as a team member Organizations these days put lot of emphasis on innovations and creativity. SHELL PAKISTAN promotes the idea of innovation. It encourages employees to creativity. Hence, most of the employees feel that their inputs are valued. Work Environment Do you feel the premises provide ample recreational facilities to employees at work? Respondents believes that premises which is having state of the art glass huge building, well space cabins, modern furniture, equipment and the hi-tech gadget in the conference room not only suggested sense of style and esthetics but also provides systematic manner and recreational facilities to employees at work. 2. Do you see immense opportunities for personal improvements & growth? SHELL PAKISTAN believes that there is only one way to grow here that is 'Performance'. SHELL PAKISTAN provides them high goals to achieve for which they are demanded to work hard, if they do so they have opportunities of growth. Moreover they also provide trainings in different categories so employees can improve themselves. 3. Are relationships at work mature and non-political? By and large people relationship at work is mature and they deal each other in high professional environment with friendly behavior and the employees of SHELL PAKISTAN act as a family member. Employee Empowerment

1. Diverse perspectives are valued and encouraged within the department The results strongly indicate that employees are comfortable working with diverse people and have a positive approach for teamwork. 2. I have the support and authority to make the decisions necessary for accomplishing assigned task. Results indicate that people share their knowledge and having task delegation which enables them to take desire decision. 3. I have enough involvement in decisions that affect my work Results indicate that employee is having involvement in decisions, which affect his/her work. It might be possible the involvement level varies according to the task. Performance Appraisal Satisfaction My department uses employee feedback to make improvements. In SHELL PAKISTAN most of the department follows open door policy and any employee is free to express his/her suggestion to departmental head or even in front of MD of SHELL PAKISTAN. Results show that their suggestions are valued. Are the employees satisfied with the EDR system in the company? Results shows that mostly employees are satisfied with this system because this system is transparent as employee also know that hoe to rate his/her performance. And also this system provides opportunity to get recognition and appraisals.

Does the company have a fair employee recognition program? Company offers 2 awards per year on the basis of performance of employees, Shaukat R Mirza award and MD award, which provides sense of recognition in employees. Flexible Benefits The Company retirement benefits is important factors in keeping employees on their jobs SHELL PAKISTAN offers attractive benefits after the retirement and results shows that it is one of the factors among several other factors due to which employee stays in company for long time. Company grants educational leaves when required by their employees

Company does not provide any leave quota in educational leave case. An employee has quota of 60 leaves per year, he can use it as his own accord. This factor may lead to de-motivation as employees can feel that he does not have personal growth or grooming opportunities in organization. Company offers flexible work time to their employees Results indicate that company does not offer customize timings to its employees. It might be possible it is due to nature of work which company has only sales people are allowed to come late but they must be informed to HR department earlier. This factor may de-motivate employees. CONCLUSION After the analysis of complete survey I can conclude that employees of SHELL PAKISTAN enjoys different attributes of Motivation like they have Job Satisfaction as they believe they have personal and professional growth opportunities, they feel they have empowerment. They have very skillful, high-quality and superior working environment. They believe that their performance is appreciated will result in reward as SHELL PAKISTAN is having EDR system. The one thing that may be a cause of de-motivation is SHELL PAKISTAN does not offer tailored benefits.