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To review the impact of employee training and development on
organizational profits in energy industry
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ABSTRACT
The stark shift that has happened in all kind of industries is the raising significance of employees
in determining the organizational performance and hence it has become imperative to equip
them with competitive and strategic skills. Training and development programs have become
crucial in leveraging these unique assets so that their productivity is optimized. The intention of
this study is to attain valuable insights on the correlation of organizational profitability and
training and developmental programs. To achieve this researcher has considered BP and Royal
Dutch Shell as the studies on this context in the energy sector is very few. Both companies are
well known and uphold high reputation.
Researcher has used post-positivism philosophy in conjunction with deductive approach as
both methods facilitate the researcher to carry out the study objectively. Data associated with
employee training and development practices of BP and Shell has been gathered from various
secondary sources and primary data has been extracted by conducting survey with the
customers of BP and Shell, a sample size of 10 employees for each company were taken. To
attain data regarding profitability, researcher has relied mainly on the financial reports during
the period of 2012-2016. Case study has also been constructed to facilitate the critical
evaluation of the gathered data. Data from all these sources has been analyzed by presenting
them scientifically and systematically first. This has facilitated the generation of important
patterns which had been interpreted and evaluated to reach the conclusions. Thus the
researcher has contended that training and development programs are crucial in influencing
the profitability and in the light of the identified issues in these programs of the companies,
researcher has suggested enhancing the training on the job specific elements (On the Job
Training-OJT) and also on the safety aspects. This will enrich the companies with employees
with optimal productivity and thereby, enhancing their profitability.
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Table of Contents ABSTRACT ...................................................................................................................................................... 2
CHAPTER 1: INTRODUCTION ......................................................................................................................... 7
1.1 Introduction ........................................................................................................................................ 7
1.2 Research background .......................................................................................................................... 7
1.3 Rationale of the research .................................................................................................................... 8
1.4 Research aim ....................................................................................................................................... 9
1.5 Research objectives ............................................................................................................................ 9
1.6 Significance of the research .............................................................................................................. 10
1.7 Research questions ........................................................................................................................... 10
1.8 Methodology ..................................................................................................................................... 11
1.9 Structure of the dissertation ............................................................................................................. 11
1.10 Summary ......................................................................................................................................... 12
CHAPTER 2: LITERATURE REVIEW ............................................................................................................... 13
2.1 Introduction ...................................................................................................................................... 13
2.2 Organizational profit ......................................................................................................................... 13
2.2.1 Factors influencing organizational profit ................................................................................... 13
2.3 Employee training and development ................................................................................................ 15
2.4Training and development practices adopted by organizations ....................................................... 15
2.5 Model to study the factors influencing the effectiveness of employee training and development 17
2.6 Impact of employee training and development on organizational profit ........................................ 19
2.7 Employee training and development in energy industry in UK ........................................................ 20
2.8 Link between existing studies and present study ............................................................................. 21
2.9 Conceptual framework ..................................................................................................................... 22
2.10 Summary ......................................................................................................................................... 22
CHAPTER 3: RESEARCH METHODOLOGY .................................................................................................... 24
3.1 Introduction ...................................................................................................................................... 24
3.2 Research Philosophy ......................................................................................................................... 24
3.3 Research approach............................................................................................................................ 25
3.4 Research design ................................................................................................................................ 26
3.5 Research strategy .............................................................................................................................. 27
3.6 Data collection methods ................................................................................................................... 28
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3.7 Sampling Method and sample size ................................................................................................... 29
3.8 Data analysis plan ............................................................................................................................. 30
3.9 Ethical and accessibility issues .......................................................................................................... 31
3.10 Summary ......................................................................................................................................... 31
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION .................................................................................. 33
4.1 Introduction ...................................................................................................................................... 33
4.2 Plan of analysis .................................................................................................................................. 33
4.3 Case studies of BP and Royal Dutch Shell ......................................................................................... 33
4.4 Quantitative data analysis ................................................................................................................ 41
CHAPTER 5: DISCUSSION AND INTERPRETATION OF FINDINGS ................................................................. 55
5.1 Introduction ...................................................................................................................................... 55
5.2 Discussion of Findings ....................................................................................................................... 55
5.3 Recommendations ............................................................................................................................ 58
CHAPTER 6: CONCLUSIONS AND LIMITATIONS .......................................................................................... 61
6.1 Introduction ...................................................................................................................................... 61
6.2 Conclusions ....................................................................................................................................... 61
6.3 Limitations of the research ............................................................................................................... 63
6.4 Recommendations for future research ............................................................................................. 63
REFERENCES ................................................................................................................................................ 64
APPENDIX .................................................................................................................................................... 71
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LIST OF FIGURES AND CHARTS
List of figures
Figure 2.1: Main factors in the general model of training and development…………….18
Fig 2.2: Conceptual framework………………………………………………………………22
Figure 4.1: BP employee by segment……………………………………………………….35
Figure 4.2: BP Profitability………………………………………………………………...….36
Figure 4.3: Royal Dutch Shell revenue from 2005 to 2015………………………………..39
Figure 4.4: Average Number of Employee by Segment in Royal Dutch Shell……….....39
List of column charts
Column chart 4.1: Age of respondents…………………………………………………..….42
Column chart 4.2: Gender of respondents……………………………………………...…..43
Column chart 4.3: Work experience………………………………………………..………..44
Column chart 4.4: Factor that contributes to the overall organizational profit……….….45
Column chart 4.5: Impact of training and development initiatives on organizations
profitability……………………………………………………………………………………...46
Column chart 4.6(a): Rating provided to the factors of enterprise training………………47
Column chart 4.6 (b): Rating provided to the factors of enterprise training………..……49
Column chart 4.7: Effective and influential training and development……………….…..50
Column chart 4.8: Effectiveness of training and development…………………………....51
Column chart 4.9: Prefer switching to other organization……………………………..…..52
Column chart 4.10: Training and development methods persuade to stay with the
company........................................................................................................................53
List of tables
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Table 4.1(a): Rating provided to the factors of enterprise training………………….……47
Table 4.2(b): Rating provided to the factors of enterprise training…………………….48
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CHAPTER 1: INTRODUCTION
1.1 Introduction
Organizations consider employees as most pivotal assets for generating higher profits,
mentionsAsfaw, Argaw and Bayissa(2015). The contributions of employees towards the
development of organization cannot be underestimated and therefore for supporting and
maximizing the job performances, quality training and developmental programs were offered
by firms (Gamage and Imbulana, 2013). According to Katsoulas (2012) energy industry in more
dynamic sector where high human capital is required to produce increased returns. In the
current chapter the researcher gives brief introduction to research topic and provides research
background, research aim, objectives, research questions, and theimportance of the study and
structure of the dissertation.
1.2 Research background
In the view of Maimuna, Yazdanifard and Nda (2013) employee training and development is
one of the major tasks undertaken by human resource management of organization with an
aim to achieve long term and short term goals and objectives of organization. Providing
effective training and development to employees in proper way helps them to enhance their
knowledge and skills, along with development of high motivation and commitment. This helps
firms to generate higher productivity and thereby to generate more profits (Hameed and
Rajinikanth, 2014).
The studies of Tahir, et al. (2014) and Khan,Khan and Khan (2011) indicated that effective
training and development programs in organizations directly as well as indirectly boost the
performances of employees and therefore organizations considers employee training as vital
factor to attain long term success. UK energy industry is one of the largest contributors to GDP
of the country with an investment of £43 billion (CIPD, 2015). When compared to the year
2011, the employees engaged in part time and full time jobs of energy industry have increased
almost 9000 (Gov.UK, 2012).
As per the reports of CIPD (2015) energy industry of UK have been facing critical issues such as
higher employee turnover rate and skills shortages that jeopardize the smooth functions of
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firms in energy sector. Higher skills shortage of employees in energy industry delayed or limited
the pursuit of new energy projects as well as skill shortages reduced productivity of employees
in energy industry, reports Strozniak (2015). Survey reports of CIPD (2015) indicated that
around 70% of firms in energy industry don’t have highly talented employees to meet future
challenges of organization. Moreover the reports of CIPD (2015) also highlighted that the labor
turnover rate in energy industry increased due to imbalanced working atmosphere and lack of
quality training and developmental programs.
British Petroleum (BP) and Royal Dutch Shell Plc commonly known as Shell are two most
valuable companies in UK energy industry (Steffy, 2010). BP is world’s sixth largest and Shell
is world’s seventh largest company in worlds oil and gas industry (Bergin, 2011). Royal Dutch
Shell Plc, the leading company in oil and gas industry has been facing sharp increase in its
employee turnover rate with an excess of 10% each year and this higher dropouts adversely
effected productivity and thereby profits of the firm (Donovan, 2010). The reports of Katakey
and Blas (2015) explicitly stated that due to the skill shortages as well as higher employee rate,
the profit percentage of Shell has dipped by almost 70 percent to $1.77 billion. Similarly, it has
been identified from the annual reports of BP (2015) that the firm has been facing sharp
increase in its employee turnover rate from the year 2011, i.e. 14% in 2011 and 16% in 2015.
This increased statistics of job shedding by employees indicates lack of training and
developmental programs in the firm. This led BP to face adverse consequences such as higher
profit dip due to decreased productivity of the firm. As per the reports of Macalister (2016) BP
suffered annual loss of $6.5bn (£4.5b) followed by 68% fall in quarterly profits and one of the
major reason for this could be due to higher employee turnover rate in the firm. Thus in this
study the researcher aims to examine the impact of employee training and development in
enhancing organizational profitability by considering BP and Shell as case study.
1.3 Rationale of the research
As per the studies of Jehanzeb and Bashir (2013) employee training and development is
necessary in organizations for shaping and developing employees to manage business functions
effectively. Moreover, investing more towards the execution of effective training and
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developmental programs facilitate firms to bring improvements among job performances of
employees and this will results in higher employee retention rate and productivity leading to
higher organizational profits, indicates Saks, Haccoun and Belcourt (2010). BP and Shell is world
largest multinational oil and Gas Company with a top listing on Fortune Global 500 and a
primary listing on London Stock exchange (Bergin, 2011). However, ineffective training and
developmental programs has led these firms to face sharp increase in employee turnover rate
and thereby negative impact on overall productivity of the firms. The reports of Macalister
(2016) claimed profit fall by 68% in BP and the reports of Katakey and Blas (2015) indicated 70
percent to $1.77 billion profit fall in Shell during the year 2015. These statistical measures stress
on the significance on assessing the link between employee training and development and
organizational profits. Thus the study will analyze the impact of employee training and
development on enhancing organizational profits by considering the cases of BP and Shell in
UK.
1.4Research aim
Employee training and development are critical for enhancing performance and thereby the
profits of the company. Existing studies have clearly established that there is direct correlation
between training and development and organizational profits by focussing on retail companies
(Tan and Newman, 2013), FMCG companies (Rafi, 2013) etc. However, studies have not focused
on the case firms in energy industry which employ highly skilled employees. The case of BP and
Royal Dutch Shell are especially interesting as these companies have suffered one of the biggest
profit losses in 2016 (Monaghan, 2016; Adams, 2016) while BP has also come under criticism for
failing to provide adequate training to its employees (Davich, 2015). In this context, the present
study aims to review the impact of employee training and development on organizational
profits of BP and Royal Dutch Shell.
1.5 Research objectives
• To systematically assess the factors effecting employee training and development in an
organization
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• To assess the factors contributing to the enhancement of organizational profits in
energy industry
• To critically examine the impact of employee training and development on enhancing
organizational profits of BP and Shell
• To provide recommendations to BP and Shell for improving employee training and
development for enhancing organizational profits
1.6 Significance of the research
Employee training and development is essential component in firms to overcome the issues of
skill shortages and higher job shedding by employees, mentionsMaimuna, Yazdanifard and
Nda(2013). By implementing various training and developmental programs, it would be possible
for firms to eliminate the risks of higher employee turnover rate, with a fair improvement in its
productivity and organizational profitability. In most cases, the firms may give less importance
to the importance of employee training and development without knowing its negative
consequences on organizational productivity and thus to profitability, mentions Fredericksen,
et al. (2015). Additionally, when compared to other sectors like fashion, retail and sports, the
energy industry have been witnessing critical situations like higher employee turnover and
profit dips with huge annual loss. Thus from the industrial view point this study is highly
significant in bringing out improvement in organizational profits. From the academic view point,
the current study is more significant in facilitating the researcher to study the link between
employee training and development and organizational profitability. Moreover, the results of
the current study will be more supportive for Shell and BP and other similar firms to make
improvements in its employee training and development for enhancing organizational profits.
1.7 Research questions
1. What are the main training and development practices used by BP and Shell?
2. What are the factors influencing the effectiveness of employee training and
development in BP and Shell?
3. How does employee training and development influence organization profits?
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4. How has employee training and development programs of BP and Shell impacted the
profits of the company?
1.8 Methodology
The researcher plans to use positivism philosophy and deductive approach in the research as it
helps in carrying out objective analysis of the research issue with the help of case study. The
researcher will collect secondary data regarding employee training and development practices
of BP and Shell from previous case studies, researches, internal company documents, websites,
journals etc. Moreover, the information about profits of BP and Shell can be collected from
annul reports published by these companies. The researcher will focus on the financial data
published during 2012-2016 in the study. This means that the researcher will collect both
qualitative and quantitative data. Based on the collected data the researcher will develop a
detailed case study which will then be analyzed with the help of tables, charts and graphs.
1.9 Structure of the dissertation
CHAPTER 1: INTRODUCTION This is the first chapter of the dissertation. In this chapter
the researcher introduces research topics and provides
research background to explore the link between
independent and dependent variable. This chapter also
covers research aim, objectives, questions, significance
and rationale.
CHAPTER 2: LITERATURE REVIEW In this chapter the researcher provides theoretical
background of the research study by exploring an
extensive source of previous literature.
CHAPTER 3: RESEARCH
METHODOLOGY
Various research techniques applied to gather required
data for meeting the research objectives are provided in
this chapter.
CHAPTER 4: FINDINGS In this section, the researcher presents the data collected
using qualitative and quantitative methods.
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CHAPTER 5:
DISCUSSION
In this chapter, the researcher discusses the findings of
the research with regard to the literature review.
CHAPTER 6:
CONCLUSIONS AND
RECOMMENDATIONS
In this final chapter, the researcher provides suitable
recommendations to chosen organization based on
researched findings.
1.10 Summary
In the current chapter the researcher has provided brief introduction to introduce research
topics and has provided research background to explore the link between employee training
and development and organizational profitability. Effective training and development programs
are pivotal for employees to enhance their job performances for improving the profitability of
firms. Moreover, in this chapter the researcher also provided research aim, objectives, research
questions, rationale and significance of the study.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
In this chapter the researcher enhances a detailed study based on the research issue the impact
of employee training and development on organizational profits in energy industry. Here the
researcher entails an in-depth study on organizational profit and the major factors that
influence the organizational profit within an organization. Following the discussion, the
researcher studies employee training and development and the major training and
development practices adopted by organization in gaining maximum organizational profit. The
researcher also analyses and comprehends the factors influencing the effectiveness of
employee training and development and their impact on organizational profit.
2.2 Organizational profit
An organization that aims at making profit alone through various operational and functional
strategies is termed as organizational profit. Irrespective of organizational goals and objectives
organizational profit emphasis on profit making alone. Obi-Anike and Chidiebere (2014) justifies
that though every business firms are established to benefit from profit making, certain business
firms focus only on earning profit than its corporate social values and quality of productivity. As
per the opinion of Ribeiro and Gomes (2016) organizational profit are the major objective of
business firms in private sector that would eventually facilitates the organization in financial
growth of the organization. Such firms encourage business shares to be owned by general
public and the shareholders are the firm’s customers itself.
2.2.1 Factors influencing organizational profit
The major factors that influence organizational profit are the changes in the pricing of raw
materials required, labour price changes, sales changes and inventory method changes.
Materials price changes: A major element required for the functioning of an organization is the
raw materials. The major factors that drives the change in price of raw materials are the
external factors (Heskett, Sasser and Schlesinger, 2010). For instance, factors such as geological
disaster, political changes, supply issues, weather conditions, etc. The change in price of raw
materials required by the organization disturbs the overall functioning of the organization.
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Sales changes: The most visible factor that impact an organization’s profit is the changes that
affects the sales. Sales changes could be influenced by either internal factors or by external
factors (Lyons, 2012). The external factor inculcates market stability, natural factors, economic
health, etc. Furthermore, the internal factors that influence sales change are payment, pricing,
customer satisfaction and organizational product line.
Inventory method changes: The implementation of inventory method changes influence the
organizational profit growth of an organization. The most commonly used inventory method is
the FIFO method (first in, first out). This indicates the manufacturing of product with the
available raw material (Heskett, Sasser and Schlesinger, 2010). The products that are purchased
during the initial phase of inventory process are bought under cheaper price tags. Another
inventory method adopted is the LIFO (Last in first out). This method utilizes the recently
purchased raw material in manufacturing the product.
Human resource capability: The human resource capabilities encapsulates the tactics and
knowledge that the members of the organization possess in enhancing an efficient
organizational functioning in developing, acquiring, nurturing, and deploying human resource
activities in a varied manner to compete with the competitive environment (Heskett, Sasser
and Schlesinger, 2010).
Labour price changes: Other than the material price change another significant factor that
impacts organizational profit is the labour price. The varied range of labour-related costs
incorporate insurance changes, benefit changes, labour cost changes, etc (Lyons, 2012). The
major reason for increase in labour cost is the poor management of human resources.
Furthermore, an external source that enhance the labour cost if the rules and regulations that
confides with minimum wages.
Other factors that impacts the organizational benefits are excessive tag rating on product
pricing, not including the consignment sale in the closing stock, the incorrect submission of
profit and loss accounts into the trade account, omission of materials during stock opening, etc.
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2.3 Employee training and development
According to the study performed by Salas et al. (2012) employee training and development
emphasis on the varied facets of employee learning. The training and development session’s
facilitates employees in developing and enhancing their skills, talent and knowledge. A
significant strategy to be followed by any organization is the employee training and
development and this would facilitate employees to focus more on their job performance and
job growth that would ultimately lead to increased productivity within an organization and
thus, leads to organizational profit (Sultana et al., 2012).
Elnaga and Imran (2013) states that training and development within an organization enhances
a systematic and structural development on employee skills, knowledge, attitude and talent
that would enable employees in enhancing efficient performance based on the allocated task.
Training and development is considered as an act of improving employee skills and knowledge
in performing a task (Vinesh, 2014).
2.4Training and development practices adopted by organizations
As per the statement of Tahir et al. (2014) and Kulkarni (2013), there is a need to understand
the appropriate and highly efficient training and development practices which enhances
employee productivity and leads the employees to focus on their performance. Suggestions as
per these studies are that effective training and development programmes will help firms to
cultivate skilled staffs and positively influence the performance and profits of organizations.
Some of the major training and development programmes adopted by organizations are given
below;
Induction and orientation training: Generally, induction training involves introducing a new
staff to the company and to their rules and regulations. Elnaga and Imran (2013) through
studying the effect of training on employee performance recognized that each staff required to
be made aware with their job, colleagues and superiors and with the policies and rules in the
company. A literature review on training and development and quality of work life conducted
by Kulkarni (2013) identified that orientation training is adopted to develop a positive
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characteristic in new staffs through reducing their nervousness and by enhancing satisfaction
level.
Foundation training: Every employee required some professional knowledge related to various
government rules, communication skills, report writing, financial concerns etc and an indication
as per the study ofSalas et al. (2012) is that foundation training is used to make newly hired
employees to become familiar with these professional knowledge.
Job training: Job training can be on-the-job or off-the-job. Job training is offered to enhance the
skills and knowledge of staffs for increasing performance on the job is the conclusion that is
supported by Sultana et al. (2012). On-the-job training takes place while staffs are carrying out
their job whereas off-the-job training takes place when staffs are taken away from their job
location to be trained. Job rotation, job instructions, internship training etc are examples of on-
the-job training, while class room lectures, role playing, seminars etc are some of the off-job-
training methods (Vinesh, 2014).
Career development training: Career development training aligns staff development and
training efforts with company’s mission and goals. Tahir et al. (2014) identified that career
development training evolves training existing staffs to help to do higher level works and to
make informed decisions about their career choices.
Safety training: Safety training is offered to reduce/avoid damages to the equipments as well as
injuries to the employees. Safety training evolves instructions about the use of safety
equipments and in safety awareness (Obi-Anike and Chidiebere, 2014).
Refresher training: As per the findings from the study ofKhan, Khan and Khan (2011), refresher
training keeps all the staffs updated with the latest techniques to perform their jobs and help
them to add to the skills and knowledge they poses already. This training is essential to keep
pace with the technological advancements in the field and to relearn.
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2.5 Model to study the factors influencing the effectiveness of employee training and
development
One of the most inclusive models for understanding the factors appeared to highly influence
the need and effectiveness for employee training and development by organizations proposed
on Australian research has been that introduced by Hayton et al in 1996. As found in the study
conducted by Malik and Rowley (2015), the first phase of Hayton et al (1996) study performed
on data collected from 30 case studies from 3 sectors such as construction, food and beverages
and electronics manufacturing and identified various factors such as work reorganization,
quality, technology, size of business, industrial restructuring, training decision making and
training infrastructure, which appeared to significantly influence the demand for training by
organizations, reported in Pereira and Malik (2015).
In the subsequent phase, Hayton et al (1996) research involved twelve case studies in twelve
sectors; finance and retail and a national survey of 1760 work locations across Australia. This
research identified 5 possible drivers of training such as technological change, workplace
change, customer emphasis, individual level decision making and enterprise dedication to
training (Malik and Rowley, 2015).
In relation to individual level decision making and organizational commitment to training, Malik
and Rowley (2015) mentioned that they observed ‘considerable changes across the businesses’.
Hayton et al (1996) model showcased 2 major factors such as size of the business and industry
nature appeared to be strongly influence training while the other 7 factors such as new
technology, workplace change, quality etc found to be average or weakly influenced training
(Pereira and Malik, 2015).
Hayton et al (1996) summarized that training and development was highly dependent on 3
major factors as below;
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Figure 2.1: Main factors in the general model of training and development
Source: Pereira and Malik (2015)
Environmental factors: Situation in the organizations functional environment that influence on
the business and tend to create one or more training and development drivers, for instance,
modification in government regulations or competitive pressure (Malik and Rowley, 2015).
Training drivers: Defined as the elements inside the firm which triggers training and
development process and are perceived by those within the business as the matter for training
in single or multiple of its different structures.
Mediating factors: Defined as the elements within the organization that reduce or enhance the
volume of training and development or influence the form of training process such as size of
business or industry (Pereira and Malik, 2015).
Pereira and Malik (2015) argued that influence of each of the factors mentioned above changes
as per to which specific element of training and development is taken into account. For
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instance, the number of training was observed to affect most by size of the
business/organization, occupational structure, new technology, sector and the degree to which
training and development categorized in the business plan.
2.6 Impact of employee training and development on organizational profit
As per the observation of Nda and Fard (2013) training and development plays a vital role in
enhancing the profit level of the organization. Organizations mainly implements training and
development programs for improving the performance level of the employees by boosting their
skills and talents. Employees are considered as the main building blocks and it is their
contributions that highly aids the organizations to increase the productivity level and in turn the
profitability of the organization. In the view of Jehanzeb and Bashir (2013) employees are
highly motivated and inspired by the various training programs and this also helps them to
handle any challenges related with their job.
From the reports of Khan, Khan and Khan (2011) it can be deduced that a prominent role is
showcased by effective training and development programs in reducing the absenteeism and
employee turnover further leading to enhancement of the organizational performance which
ultimately results in the increase of organizational productivity and profitability. Through the
training and development programs the organizations highly take interest to improve the
professional and technical skills of the employees and these improvement in the knowledge
and skills of the employees highly leads to expansion of competitive growth and profit of the
organization. Niazi (2011) also points out that training programs aids to recognize the
potentials of the employees and helps to provide them with appropriate positions and benefits
so that it can inspire their commitment level towards achieving organizational profit.
Developing the talents and skills of the employees through the training and development
programs can boost the dedication of the employees towards the firm and they also feel that
the organizations highly considers them as the part of the family.
According to Owoyemi et al. (2011), organizational profit is highly depended on the overall
performance of the organization and it also focuses on all the aspects of the organization. In
order to attain high growth and development organizations must highly give importance to
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both the internal and external factors that drives the profit of an organization. Jehanzeb and
Bashir (2013) also finds that organizational profit relies upon the employee productivity, sales
performance, quality of the products and services and satisfaction gained by the customers.
Thus in the opinion of Nda and Fard (2013) for achieving high increase in the profit level of the
organization high concern must be given to employee training and development programs. The
implementation of effective training and development programs will create a positive energy
in the employees and they will consider these programs as the stimulators for retaining and
enhancing the performance level of the employees. Khan, Khan and Khan (2011) also reveals
that the training and development programs is regarded as a milestone in retaining the
employees towards the company. The author also observes training programs as an
opportunity provided to the employees to improve their deficiencies and inspire their
motivation level. Hence training and development programs is found to have a positive effect
on the performance of the employees which consecutively assists the organization to boost up
its profit level. Elnaga and Imran (2013) also identifies the importance of training sessions in
maximizing the satisfaction level of the employees further contributing to the sustainable
performance of the organization and resulting in the augmentation of organizational profit. But
Niazi (2011) argues that ineffective training sessions can adversely affect the employee
performance and can highly result in decline of the profit and growth. Thus for achieving
increment in the organizational profit and for improving the employees productivity it is highly
necessary for the organizations to adopt effective training and development program.
2.7 Employee training and development in energy industry in UK
A key contributor to the UK economy is the energy industry. It employs an average percentage
of 6% of the UK workforce and attains an average GDP of 3.3%. UKCES (2015) justifies that the
major section in the energy industry is dealt by male employees and also the age profile if
greater than that of national average that contributes to the ageing workforce. The energy
industry enhance a significant importance to employee training and development. As per the
studies enhanced by Redlinger, Andersen and Morthorst (2016) the entire sector enhance a
strong commitment towards training and development on an on-going basis and the level of
qualification is set to greater than that of UK national average.
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According to the justifications provided by Redlinger, Andersen and Morthorst (2016) in view of
survey report of employee in the energy industry of UK, more than half the number of
employees who participated in the survey exclaimed that organizations often hired people with
limited engineering qualification. Or in other terms, the energy sector of UK could not afford
people who have complete qualification in joining the energy industry. Thus, as per the opinion
of UKCES (2015) training and development are provided to employees of UK energy industry to
uplift and motivate employees with limited knowledge in energy field with the basic knowledge
of energy industry, its aims and objectives and to encourage employees in achieving the same.
The survey also estimated that the most popular internal methodology used in every energy
industry of UK is employee training and development. As justified by Heskett, Sasserand
Schlesinger (2010) in varied studies policy development stands to be a major factor that
impacts employee training and development.
2.8 Link between existing studies and present study
Several earlier studies have been found to be conducted on the topic but it has been noted that
existing studies conducted by Jehanzeb and Bashir (2013) and Niazi (2011) have focused in
explaining the importance of training and development and has not given a detailed discussion
about its impact on the organizational profit. Many researchers such as Owoyemi et al (2011),
Khan, Khan and Khan (2011) and Elnaga and Imran (2013) etc has carried out studies on the
impact made by training and development on the employee performance and organizational
performance but were not successful in discussing the requirement to increase the efficiency of
the training and development programs. And it also failed in describing the factors that helped
in enhancing the profit of an organization. Therefore the present researcher study will give
more insight about the effectiveness of training and development programs on profit of an
organization.
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2.9 Conceptual framework
Fig 2.2: Conceptual framework
Source: Created by the author
By reviewing the literature review systematically a conceptual framework have been
developed for the study. From the conceptual framework it can be understood that the main
factors of training and development such as the training drivers, mediating drivers and the
environmental factors enhances the factors of the organizational profit. It can also be noted
that the factors influencing organizational profit includes material price changes, sales changes,
inventory method changes, labour price changes and human resource capability and these
factors are highly boosted by the training and development further leading to the enhancement
of overall profit of the organization.
2.10 Summary
The researcher in this chapter provides a detailed study based on the research issue the impact
of employee training and development on organizational profits in energy industry. Here the
researcher performed an in-depth study on organizational profit and the major factors that
influence the organizational profit within an organization. The researcher also availed a detailed
study on employee training and development and the major training and development
practices adopted by organization in gaining maximum organizational profit. The researcher
23
then analyzed and comprehended the factors influencing the effectiveness of employee
training and development and their impact on organizational profit.
24
CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction
According to Hedge (2015), the skeletal framework of a scientific study is the technical
procedures that are utilized and this constitutes the research methodology.
Murthi and bhojanna (2009) elucidate that particular choice of the set of research techniques
attribute validity and determine success of the study. These techniques encompass theoretical
assumptions and beliefs like research philosophies, approaches and research purposes and
empirical procedures like data collection methods and sampling techniques. One section of this
chapter demonstrates these scientific procedures with rationale and the other sections briefs
data analysis plan, ethical and accessibility issues.
3.2 Research Philosophy
Research philosophy entails the knowledge dimension of the research i.e. how the pathway of
research should be tread to accomplish the result, state Easterby-Smith, Thorpe and Paul
(2012). This provides the direction to the study by imparting beliefs and valid assumptions
regarding the research question. If this relies on objective mode of knowledge, then it is called
as positivism and it negates the social factors that can influence the data. Though another
variant of research philosophy, interpretivism consider this, it is purely subjective. Hence both
cannot be adopted for this research as the current situation demands the consideration of both
elements. There should be factual interpretation which is the characteristic of positivism and
then it should also consider the social factors. Hence this study chosen post-positivism which
combine both these aspects as found out by Shahjahan (2014).
To determine how the data regarding the effect of employee training and development on
organizational profit in energy industry should be accumulated, the researcher selected post-
positivism philosophy in this study. This was because the researcher required to conduct the
present study by using valid and factual information that discussed the research variables in-
detail. Also, conducting this study in an objective, bias-free manner was another requisite for
the researcher. Hence, by employing post-positivism philosophy, the researcher was able to
identify the most feasible objective means through which data pertinent to employee training
25
and development as well as organizational profit in the energy sector of UK could be gathered.
Thus, this led the researcher in attaining factual data that dealt with the factors influencing
employee training and development in an organization in the energy sector and factors that
constitute to the improvement of organizational profit in the energy sector. As the researcher
adopted post-positivism philosophy, the researcher could integrate scientific reasoning
methods to gather necessary data to develop this study (Easterby-Smith, Thorpe and Paul,
2012). In order to analyse the present research issue, it was significant for the researcher to
make objective perceptions regarding the status of employee development drives of BP and
Shell. Thus, with the aid of post-positivism philosophy, the researcher was able to gather
accurate data regarding the profitability rate and the efficacy of employee development and
training drives of these firms.
3.3 Research approach
Inductive and deductive are the two kinds of approaches that are applied usually in academic
researches as found out by Hedge (2015). When the researcher needs to specify the general
information available regarding the research question, then deductive approach is opted and
while the study needs to induce generalizations from the specific available data, then inductive
approach is best suited (Flick, 2011). This study needs to analyze the broader paradigm; training
and development program and firms value in terms of profitability. The information available is
dispersed vastly and integrates multi dimensions. Hence, inductive cannot be opted.
Furthermore deductive approach facilitates the realization of objectives by helping the
researcher to reach specific points that are highly significant to the study.
In accordance with this study’s purpose to accurately find out how employee training and
development programs affect organizational profit of companies that belong to energy sector,
the researcher used deductive research approach. Thus, the researcher was able to assess
general assumptions regarding the efficacy of employee development and training with regard
to organizational profitability of firms in the energy sector, when compared to the employee
responses as well as the findings of various case studies. The gathered data were assessed and
categorized in a systematic manner by using deductive research approach and thereby, the
26
researcher could understand the degree to which the employee training and development
influence the organizational profit in the energy industry (Easterby-Smith, Thorpe and Paul,
2012). Also, the researcher could effectively reach at specific understanding of the impact of
employee training and development on organizational profit in the organizational contexts of
BP and Shell. Researcher cod attain the events associated with the research question to
construct the case study also. With this approach researcher could assess those elements of
training programs of both the companies that have impacted the profits and hence could devise
recommendations accordingly. Thus the researcher has adhered to this approach to gather,
infer and interpret how the training and development programs conducted by the companies;
BP and Shell have impacted their profitability.
3.4 Research design
According to Murthi and Bhojanna (2009), another important research technique that
attributes to the validity is the research purpose. This clarifies the fundamental purpose of the
investigation i.e. whether it is to substantiate the causal relationship between two research
variables as in explanatory purpose or to have the data to be analyzed descriptively as in
descriptive purpose. The third common variant is exploratory purpose which facilitates the
investigation with exploratory quest to gather knowledge on the research variables (Flick,
2011). As found out by Shahjahan (2014), explanatory is best suitable for research situations
that require the establishment of bi-directionality of two research variables. Though
exploratory is helpful in providing and enhancing the knowledge on research variables, it does
not impart conclusive results, argue Crowther and Lancaster (2009). Hence, this research
situation demands the application of explanatory purpose.
The researcher used explanatory research design in a bid to understand the relationship
between employee training and development and organizational profitability in the firms
belong to energy sector. Also, this method assisted the researcher in comprehending the
significance of training and development drives to increase the performance and competency
level of employees. Furthermore, the researcher was capable of linking the comprehended
significance with the organizational profit as the researcher had developed a profound
27
understanding of employee performance and profitability by developing literature for this
study. With the aid of explanatory research design, the researcher was able to determine the
cause and effect correlation between organizational profit and employee training and
development. Through, the researcher could investigate the diverse determinants of employee
training and development as well as organizational profit in an organization (Kothari, 2013).
Besides, the researcher was able to find out the elements that add to the improvement of
organizational profit, particularly in energy sector. Additionally, the researcher was capable of
meeting the research objectives effectively as the researcher could incorporate the research
issue with the organizational contexts of BP and Shell. Accordingly, the researcher was able to
make in-depth explanations to the training and development facilities that these companies
offer to their employees in an effort to bring about high profit.
3.5 Research strategy
The pivotal segment of the research is data and hence the techniques that are utilized to gather
this also become the essential ingredients of the study and this constitutes research strategy
(Merriam, 2014). As per Salkind (2010), a researcher can use various types of strategies to
accomplish this and the main among them are interviews; which sets a direct communication
path and generate authentic and in-depth information regarding the research question (King
and Horrocks, 2010). However, it requires time and specific prior knowledge regarding the
subject to make it more effective (Berg and Lune, 2014). Survey is more time effective as it
generates massive information within a shorter time frame and is also direct and by virtue of its
anonymous nature win terms of identities, it can be adopted to gather authentic information.
Case study looks for specific information that is of interest to the research and develops a
strong theoretical background for finding and evaluating data by considering the contemporary
events in association with the research question.
To effectively gather relevant data that provide most authentic information to develop the
present study, the researcher used online survey strategy. The key reason behind opting survey
strategy was to accumulate dependable data from authentic sources which were close to the
area under study. Hence, by employing survey strategy, the researcher was able to gather data
28
that accurately identified the researcher’s queries regarding the present research issue (King
and Horrocks, 2010). The researcher has conducted a semi-structured online survey with the
employees of BP and Shell and it provided the researcher with demographic data as well as
responses to the research-based questions. Therefore, through the survey, the researcher
identified and comprehended the accurate status of the training and development ventures
implemented by BP and Shell for improving the talent, expertise and competency level of
employees. Also, the researcher wanted to know which training and development program
enticed employees the most to deliver a better performance, thereby contributing their
maximum effort to the overall profit of their organizations. The survey provided the researcher
with adequate quantitative data that assisted the researcher in the data analysis phase to
codify the research outcomes. Through the online survey, the researcher could cover a large
number of respondents within a short period of time. Also, getting abundance of reliable data
in a short time span and in a less cost-manner, the survey strategy was also beneficial for the
researcher in understanding the employee outlooks regarding the employee empowerment
techniques like training and development drives executed by organizations. Also, the
researcher was capable of gathering reliable information that elucidates the experiences of
employees at the companies. Moreover, the researcher accumulated employee views on the
effect of employee training and development on organizational profits of BP and Shell. Also, to
what extent the efficacy of these programs influence the employee performance, satisfaction
level of the employees was also determined by the researcher by reviewing the survey findings.
All these have assisted the researcher in determining and understanding how the implemented
training and development on the organizational profit in energy industry.
3.6 Data collection methods
Dawson (2009) confers data collection as the strong basis of any research and it can be
achieved by exploiting either primary or secondary sources. Primary sources include direct
communication channels like interview, survey, focus groups etc. While secondary sources
include all the previous works associated with research question such as magazines, authentic
journals, books, websites etc (Easterby-Smith, Thorpe and Paul, 2012). Relying primary
29
information alone constricts the validity as found out by Hedge (2015). Hence it is vital to
include both kinds of sources while collecting the data.
The researcher used both primary and secondary data collection methods for successfully
accomplishing the present study. Accordingly, the researcher acquired adequate qualitative and
quantitative data from these data collection methods. Through the online survey conducted
with the employees of BP and Shell, the researcher collected relevant quantitative data and the
survey facilitated the researcher with several important information that exhibited the
employee perception to the researcher’s queries. Hence, the researcher attained quantitative
data that were significant in the data analysis and discussion phase to effectively arrive at
suitable inferences. However, it was with the assistance of various secondary sources such as
previous case studies, researches, internal company documents, websites, journals and books
that extensively discussed the various aspects of the present study, the researcher developed a
thorough understanding of the research questions and variables as well as developed a sound
literature for this study. Furthermore, the researcher reviewed the company annual reports of
BP and Shell to get company related data particularly company sales and profit figures. Besides,
this also assisted the researcher in framing relevant questions that the researcher included in
the questionnaire. Accordingly, the researcher was able to get significant information regarding
the employee training and development as well as organizational profit within the case scenario
of energy sector.
3.7 Sampling Method and sample size
For primary data collection methods, participants are required and it is not possible to consider
the entire elements that are of interest (population) to the study. Hence, the size of population
is shortened to facilitate the process and this extracted volume is referred as sample size and
the process is termed as sampling (Desu and Raghavarao, 2012). There are methods that are
based on probability (simple random probability, cluster, systematic and stratified sampling)
and non probability (e.g.: convenience sampling, judgment sampling, snow-ball, criterion and
quota sampling).
30
In this study criterion sampling method was utilized by the researcher to choose the suitable
samples for conducting the case study. The samples that needed for the study were collected
on the basis of the features of the research topic. Also, the cases that are linked with BP and
Dutch Shell were chosen and the researcher also made sure that the cases considered for the
research study were issues after the year 2009. The researcher has gone through the earlier
studies on the influence of talent management on performance and service quality of the
employees in BP and Dutch Shell. The samples were also chosen by the researcher after
clarifying a criterion and the researcher has selected only 13 cases as samples for performing
the study. Thus criterion sampling has helped the researcher to discover more about employee
training and development strategies and its significance in improving the productivity of BP and
Dutch Shell.
Convenience sampling method was employed by the researcher to choose suitable sample size
for conducting survey with the employees of BP and Dutch shell. This method has assisted the
researcher to choose the samples on the basis of proximity and convenience. In this particular
study, the researcher has conducted online survey with the employees of BP and Dutch Shell.
The researcher has performed the survey analysis with 10 employees from each company
through online based on different outlets of the companies based in UK. This method has
helped the researcher to acknowledge the various factors influencing the effectiveness of
employee training and development in BP and Dutch Shell. Thus, both the criterion and
convenience of non probability sampling method has assisted the researcher to collect
dependable data in terms of the research topic.
3.8 Data analysis plan
Massive data has been generated from the above mentioned strategies and the researcher has
analyzed and interpreted significant information by using descriptive techniques. The
researcher has presented the data scientifically using tables and graphs which has eased the
evaluation process. Further case study has consolidated the significant events. Researcher has
searcher for relevant and repeating patterns by checking theoretical and empirical
backgrounds. All these have utilized to identify the consensus of these findings with the
31
objectives. In addition, all findings have been cross referenced too to make critical evaluation
possible. Thus researcher could identify the gaps and weaker areas in the training and
development programs of BP and Shell to contend the conclusion.
3.9 Ethical and accessibility issues
Throughout during the present research study, the researcher has given importance to ethical
norms and principles. The researcher has cared all surveyed participants with equal concern
and importance. By adhering to Data Protection Act 1998, the researcher has also guaranteed
secrecy and confidentiality of all acquired data, especially personal information. The researcher
has also made sure that the collected data would be used only for the academic purpose.
Before the survey and interview, the researcher has offered ample explanation about the aim
and nature of the studies to the respondents. No force was put forth on any of the
respondents. Moreover, all the secondary data utilized for this study were provided accurate
referencing.
During the study researcher has confronted with accessibility issues such as attainment of
online survey participants. As it was conducted online, it posed difficulty to convince them
which caused the restriction of sample size to 20. Accessing certain data sources also posed
constraints in terms of cost and time.
3.10 Summary
In this chapter, the researcher has specified about various methods and techniques followed by
the researcher, and how these techniques has been utilized for completing the research study.
The chapter has also discussed different research methodologies such as research approach,
research philosophy, research strategy, research purpose, sampling techniques, sample
selection, data collection methods etc. In this chapter, the researcher also discussed about the
ethical issues aroused during the collection of data.
To improve the research study with useful details, researcher has relied on post-positivism
philosophy and deductive approach. The research purpose highlighted by the researcher was
explanatory to assist the survey and case study, research strategy etc. A case study on BP and
32
Royal Dutch Shell and a survey with 20 employees (A sample size of 10 for each company) were
performed online. These made the data collection process of the researcher absolutely easier.
33
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
4.1 Introduction
This chapter deals with the analysis and interpretation of data gathered by the researcher in
accomplishing this research study. Based on the research topic and the objectives that have to
be met with, the researcher evaluates the research findings and facilitates a detailed discussion
on it. In enhancing genuineness for the research study the researcher performs case study and
survey among employees of two popular firms in the energy industry, namely, BP and Royal
Dutch Shell. The performed case study avails the researcher with varied relevant data in due to
the research topic. The researcher analysis and comprehends the significance of employee
training and development in the perspective of UK energy industry with the help of the case
studies performed. Journals, articles, website details, magazines and newspapers aided in
performing an organized and systematic case study on BP and Royal Dutch Shell.
4.2 Plan of analysis
The research studies have been accomplished by the researcher in correspondence to the case
studies performed on BP and Royal Dutch Shell. The researcher also performed survey among
employees of both the firms. Several online sources and external sources were chosen by the
researcher in enhancing case on the two firms. Individual case study on the firms was
performed by the researcher initially, which was later analyzed and interpreted. Journals,
articles, newspapers, magazines, etc were opted by the researcher in facilitating the case study.
The survey performed by the researcher was enhanced amidst the employees of the firms BP
and Royal Dutch Shell.
4.3 Case studies of BP and Royal Dutch Shell
Case study on BP
BP plc stands for British Petroleum that serves as a multinational oil and gas firm in UK. BP
ranks the world’s top 7 oil and gas “supermajors” and sixth-largest firm in global energy sector
in terms of market capitalization. The overall functionalities of the firm incorporate every areas
of gas and oil industry including exploration and production, power generation, refining,
34
petrochemicals, trading and distribution and marketing. Honnungar (2011) states that the firm
also extends its functions to wind power and biofuels.
Headquartered in London, England, the firm operates in more than 70 countries and produces
up to 3.3 million barrels of oil. As per the records of 2015 the firm employs 79,800 employees
(BP plc, 2016b). The major subsidiaries BP are Amoco. The successful venture of BP in the field
of energy industry facilitated the firm in acquiring ARCO and Burmah Castrol in the year 2000.
The organizational values that is being followed within BP is safety, respect, excellence, courage
and team work. As per the reports of Honnungar (2011) BP ensures every individual that forms
an integral part of the firm are provided with complete safety within the organization. Every
activities performed within the firm ensures the safety of workforce and people around the
firm. Secondly respect, the firm abides with every regulations and laws of the residing location.
The success of the firm is dependent on the respectful relationship of the firm with its partners
and associates. BP respects each and every aspects of its partner firms and value diversity of
thought and people (BP plc, 2016b).
As part of employee engagement process, the employee of the firm are categorized as shown in
the figure below.
35
Figure 4.1: BP employee by segment
Source: BP plc (2016c)
The employees involved in the process of extraction of oil and gas to the surface is termed as
upstream employees. As per the figure, it could be identified that out of 79,800 employees
21,700 employees work for the upstream segment of the firm. Downstream employees
represent the group of employees who convert the extracted oil and gas into useful products to
customers (BP plc, 2016c). And it is visible from the figure that 44,800 employees work for the
downstream segment of the organization. As per the reports of BP plc (2016a) remaining
13,300 employees work for the top management of the firm in controlling and coordinating the
activities of the firm with that of other business firms.
The management team of the firm performs regular survey among the employees in monitoring
feedback on organizational operations. Employees who are found to experience tough situation
within the firm are offered with efficient training and development session in understanding
organizational aims and objectives (BP plc, 2016a). The training and development also offers
motivation to each and every employee in being more productive and enhancing overall
36
organizational productivity. The survey facilitates the organization in understanding the
influence of strategic priorities within the organization in employee engagement. As per the
statistical ratio provided in the reports of BP plc (2016c) the percentage of strategic priority
influence have fallen to 69% for 2015 which was measured as 72% during 2013 and 2014.
Figure 4.2: BP Profitability
Source: BP (2015)
The above statistics illustrate the profitability statistics of BP during the year of 2010 to 2014. It
could be identified that the gross profit margin of the firm experienced a rise from 2012 to
2013. But deteriorated from 2013 to 2014. Similar was the analysis found on operating profit
margin, net profit margin, return on equity and return on assets. As per the observations made
from the reports of BP (2015) every aspect of BP regarding return on sales and return on
investment showcased significant improvement during 2012 to 2013. But, significant
deterioration was recognized from 2013 to 2014.
Despite of all the training and development offered to employees by the organization BP faces
a decline in employee responses due to the reduced oil price in the current global scenario (BP
plc, 2016c). The organization also comprehends employee concerns on their job perspective
due to the decline in oil price. Thus, the firm launches additional channels for communication in
37
facilitating support towards employee concerns through process restructuring of the
organization.
Case study of Royal Dutch Shell
Royal Dutch Shell Plc is a British-Dutch multinational oil and gas organization integrated in UK
and headquartered in Netherlands. As per Jargosch and Jurich (2014), Royal Dutch Shell is the
7th biggest organization in the globe in 2016, in terms of profits and one of the 6 oil and gas
super-majors. Shell has also been listed as world’s most valuable organization with biggest
shareholder Capital Research Global Investors with an investment of 9.85% and BlackRock in 2nd
place with an investment of 6.89% in the company. The reports of Fortune (2016) shows that
Shell attained leading position in Fortune Global 500 list of the biggest organizations in the
world during 2013 with a profit similar to 84% of Netherlands $555.8 billion GDP at the period.
As per Daft, Kendrick and Vershinina (2010), Shell’s major purpose is to satisfy the energy needs
of community in ways which are socially, economically and environmentally viable, present and
in the future and Jargosch and Jurich (2014) observes that the worldly success of Shell is
contributed to its diverse workforce and an comprehensive working atmosphere, leading
towards higher innovation and better solutions. The organization asserts that it gives strong
focus on providing professional training, ongoing support and development practices, which
offers employee with every opportunity to attain their potential and also leadership programs
help talented staffs to become the energy sector leaders of future (Shell Global, 2015).
Employee training and development at Royal Dutch Shell
One among the foremost studies that has attributed to the field of training and development of
human resources is that conducted by Daft, Kendrick and Vershinina (2010) and the authors
found that being a firm in energy industry, Royal Dutch Shell considers their employees are key
part to the delivery of their business strategy and that staffs are evolved in the planning and
direction of their own job. The initiative called ‘growing-your-own-timber’ was a good example
of how Shell puts their policy into practice. ‘Shell Graduate Programme is another training and
development program which includes face-to-face events, assessments, job-tasks and discipline
38
specific e-learning based on candidates Research and Development (R&D) competencies. Shell
offers a supportive atmosphere where learning is structured and employees will benefit from
progress checks, mentoring and coaching in each 6 months (Shell Global, 2015).
When graduates are appointed directly out of institutions, Shell offer them training on
professional, managerial and technical development and then each few years are shifted and
rotated to new assignment and roles. According to Briscoe, Schuler and Tarique (2012), this
strategy leads staffs to feel appreciated and secured by the firm. Moreover, Shell also provides
employee with the opportunity to work in international environments and foreign countries
which in turn provides staffs with new knowledge and overviews. The company has high
emphasis on developing individual abilities and skills across their staffs and when a staff shifts
from one project to another, they will be ranked by their line manager against preset guidelines
on their performance, which is used among all international Shell locations. The company
reward and recognize employee achievements via performance-based bonuses and pay (Daft,
Kendrick and Vershinina, 2010).
Organizational profit of Royal Dutch Shell
While observing the organizational revenue of Royal Dutch Shell during 2005-2008 periods, it
could be found that it is steadily increasing since 2005. A closer observation at the profit of
Shell during 2009-2011 also reveals that Shell has a positive organizational profit in the energy
industry (Statista, 2015).
39
Figure 4.3: Royal Dutch Shell revenue from 2005 to 2015
Source: Statista (2015)
The average number of employees by segment has also been steadily increasing since 2009. In
2009, average number of staffs in upstream segment in Shell was 23,000 and this has increased
almost 26,000 in 2010 and 27,000 in 2011, while number of employees in downstream and
corporate segment was constant (Shell Investors Handbook, 2013).
Figure 4.4: Average Number of Employee by Segment in Royal Dutch Shell
Source:Shell Investors Handbook (2013)
However, the Statista (2015) report also revealed that organizational profit of Shell has not
been remarkable since 2012. Even though, the above employee results revealed positive results
to Shell’s organizational profit, Briscoe, Schuler and Tarique (2012) finds that ineffectiveness in
40
training and development programmes has lead the Dutch Shell to face sharp growth in
employee turnover rate and thereby negative impact on organizational profit. The average
number of employees working in UK Shell has decreased from 7000 in 2011 to 5 and 6 in 2012
and 2013 respectively (Shell Investors Handbook, 2013). From the report of Statista (2015)it is
evident that at the same period, Shell’s revenue has also declined from $470.17 in 2011 to
$467.15 and $451.24 in 2012 and 2013 respectively. Also the report of Statista (2015) indicated
high revenue fall in Dutch Shell from $421.11 in 2014 to $264.96 in 2015 and Katakey and Blas
(2015) claimed profit fall by 70% to $1.77 billion in Shell during the years 2015. Hence, this
study will analyze whether the ineffectiveness in training and development has any link with
the organizational profit of the company.
Case study analysis
In this section, the researcher evaluates the findings emerging from case study of BP and Royal
Dutch Shell, with the reference to the present findings determines in the literature review
section. One of the major findings rising from the case study is the importance given by both
British Petroleum and Royal Dutch Shell in the enhancement of employee performance through
effective training and development. The case study reveals that BP management assures that
tasks are equally distributed among staffs according to their talents and staffs in BP experience
reduced work pressure and stress within the organization (Honnungar, 2011; BP plc, 2016b).
From this it can be delineated that senior management commitment to training, workplace and
performance appraisal are the major factors affecting employee training and development in
BP. Similarly, the case of Shell it was found that workplace change, rewards and benefits,
training infrastructure and environmental factors as the main factors employee training in the
organization (Briscoe, Schuler and Tarique, 2012; Shell Global, 2015; Daft, Kendrick and
Vershinina, 2010). From this it can be understood that training factors, mediating factors and
environmental factor have significant effect on training and development of Shell and BP. This
is in line with the finding of Malik and Rowley (2015) and Pereira and Malik (2015) in the
literature review.
41
It was identified from the literature review that materials price changes, sales changes,
inventory method changes, human resource capability and labour price changes are the major
factors that contribute to the enhancement of organizational profit (Heskett, Sasser and
Schlesinger, 2010; Lyons, 2012). The findings of the studies are in agreement with this
observation. For instance, the case study of BP identified that the firm focus on motivating and
enhancing the ability of its human resources through training and development which enhances
overall organizational productivity (BP plc, 2016c). The case study also revealed that due to
reduced oil price in the present scenario, training and development offered by BP remained
ineffective effecting employee concerns and in turn organizational profits (BP plc, 2016c). On
the other hand, from the case study of Shell it can be identified that changes in revenue and
human resource capability has significant impact on organizational profit (Statista, 2015; Shell
Investors Handbook, 2013; Katakey and Blas; 2015). From this discussion, it is evident that
materials changes, human resource capability, changes in sales impacts the organizational
profit in the energy industry. This is in line with the correlation outlined by the conceptual
framework of the present study.
4.4 Quantitative data analysis
For getting a detailed understanding regarding the impact of employee training and
development on organizational profits in energy industry the researcher conducted survey for
collecting the quantitative data. The researcher obtained the quantitative data by carrying out
semi-structured online survey with 10 employees of BP and Shell respectively. The survey
questionnaire prepared by the researcher and the responses given out by the employees are
depicted below: For representing the quantitative data the researcher has used column charts
and tables.
1. Age
42
Column chart 4.1: Age of respondents
Source: Created by the author
From the above pie chart it is clearly understood that majority of the employees of BP (British
Petroleum) who participated in the survey analysis belonged to age category of 35-45 years.
And this was found to be similar in the case of Royal Dutch Shell as majority were from the
same age category. From this it can be inferred that both the companies mainly consisted
middle aged employees.
2. Gender
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
BPShell
20%20%
50% 60%
30% 20%
Above 55 years
35-45 years
25-35 years
43
Column chart 4.2: Gender of respondents
Source: Created by the author
The above diagram depicted that both the companies vainly consisted of male employees
which indicated that male were more interested to work with the companies or the company
mainly recruited male employees.
3. Please mention your work experience?
Female
Male
0%
10%
20%
30%
40%
50%
60%
70%
80%
BP
Shell
30%
20%
70%
80%
Female
Male
44
Column chart 4.3: Work experience
Source: Created by the author
This question was mainly asked to understand whether the firms provided the employees with
great support and care. The above chart revealed that in the case of BP majority of the
employees had a working experience of 1-3 years while the most of the employees of Shell
were working with the company for about 3-6 years. From the results it can be understood that
both the companies provided the employees with effective working environment and benefits
but it was found that Shell was highly able to retain the employees towards the firm. This was
reported in the similar manner by Shell Global (2015) that Shell offered the employees with
effective training, support and benefits for enhancing their performance level.
4. According to you, which is the major factor that contributes to the overall enhancement
of organizational profit in your firm?
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
BPShell
10%10%
50%
30%
30%
60%
10% 10%
More than 6 years
3-6 years
1-3 years
Less than a year
45
Column chart 4.4: Factor that contributes to the overall organizational profit
Source: Created by the author
The survey results pointed out that major factor that contributed to the overall enhancement
of organizational profit of BP was the sales changes and in the case of Shell it was changes in
the labour price. It was also identified from the survey that only least number of employees of
both the companies opted the capability of the human resources as the major factor that
contributed to the overall enhancement of organizational profit.
5. What is your outlook on the influence your company’s training and development
initiatives produce on organizations profitability?
0%
5%
10%
15%
20%
25%
30%
Materialsprice
changes
Saleschanges
Inventorymethodchanges
Changes inlabour price
Capabilityof humanresources
20%
30%
20% 20%
10%
20% 20% 20%
30%
10%
BP
Shell
46
Column chart 4.5: Impact of training and development initiatives on organizations profitability
Source: Created by the author
This question aimed in analyzing the impact of training and development initiatives on
organizations profitability. From the above figure it was found that in the case of both the
companies’ only moderate impact the training and development initiatives produced on the
organizations profitability. Briscoe, Schuler and Tarique (2012) opined that Shell highly gave
importance to training and development programs and the company was able to gain high
organizational profits. In the case of BP also similar view points were mentioned by BP plc
(2016a) that training and development highly motivated the employees to become more
productive thereby enhancing the organizational profit.
6. Rate the following factors of enterprise training on a scale of 1-5 depending on their
influence on your training and development effectiveness. [1- Highly influential, 2-
Influential to some extent, 3- Average, 4- Neutral, 5- Not at all influential].
BP
0%
10%
20%
30%
40%
50%
60%
70%
Highly influences Moderately
Not at allinfluences
30%
60%
10%
30%
50%
20%
BP
Shell
47
Factors influencing training
and development
1 2 3 4 5
Size of the business 20% 30% 30% 10% 10%
Nature of energy industry 50% 20% 10% 10% 10%
Advanced technology 10% 10% 30% 20% 30%
Workplace change 40% 30% 10% 10% 10%
Quality 20% 50% 10% 10% 10%
Competitive environment 10% 20% 20% 40% 10%
Table 4.1(a): Rating provided to the factors of enterprise training
Source: Created by the author
Column chart 4.6(a): Rating provided to the factors of enterprise
training
Source: Created by the author
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
20%
50%
10%
40%
20%
10%
30%
20%
10%
30%
50%
20%Highly influential
Influential
Average
Neutral
Not at all influential
48
As illustrated in the figure above it is clear that nature of energy industry, workplace change,
quality and competitive environment were the main factors of enterprise training that highly
influenced the training and development effectiveness in the case of BP. This was found to be
similarly mentioned by the reports of BP plc (2016c).
SHELL
Factors influencing training and
development
1 2 3 4 5
Size of the business 10% 30% 20% 20% 20%
Nature of energy industry 50% 20% 10% 10% 10%
Advanced technology 60% 10% 10% 10% 10%
Workplace change 20% 30% 20% 20% 10%
Quality 20% 40% 20% 10% 10%
Competitive environment 10% 20% 10% 50% 10%
Table 4.2(b): Rating provided to the factors of enterprise training
Source: Created by the author
49
Column chart 4.6 (b): Rating provided to the factors of enterprise training
Source: Created by the author
In the case of Shell the main factors of enterprise training that highly influenced the training
and development effectiveness were nature of energy industry, advanced technology and
quality. Statista (2015) in the case study analysis also reported similar statements.
7. According to you, which type of training and development is the most influential and
effective in energy industry?
0%
10%
20%
30%
40%
50%
60%
70%
10%
50%
60%
20%20%
10%
30%
20%
10%
30%40%
20%
Highly influential
Influential
Average
Neutral
Not at all influential
50
Column chart 4.7: Effective and influential training and development
Source: Created by the author
It was revealed from the survey that job training was the most influential and effective training
and development in the case of Shell and for BP it was safety training. These statements were
similarly mentioned by Daft, Kendrick and Vershinina (2010) that Shell provided the employees
with training on professional, managerial and technical development. Honnungar (2011) also
reported atht BP highly ensured complete safety of all the employees within the organization
and offered the effective safety training.
8. Please mention the effectiveness of training and development provided by your
organization?
0%
5%
10%
15%
20%
25%
30%
35%
40%
10% 10% 10% 10%
40%
10%
10% 10%
30%
20%
10% 10%
BP
Shell
51
Column chart 4.8: Effectiveness of training and development
Source: Created by the author
By this question the researcher mainly intended to understand whether the company provided
effective training and development. Most of the employees of both the companies opined that
the training and development effectiveness in their companies were moderate only. But this
was contradicted by Honnungar (2011) and Daft, Kendrick and Vershinina (2010) and it was
found that both BP and Shell offered the employees with effective training and development.
However it was also found from the statements’ of Briscoe, Schuler and Tarique (2012) in the
case study that Shell faced high employee turnover rate due to the ineffectiveness of training
and development.
9. Would you prefer to switch to other organization if they offer efficient training and
development practices than your present organization?
0%
10%
20%
30%
40%
50%
60%
70%
GoodModerate
Bad
30%
60%
10%
30%
50%
20%
BP
Shell
52
Column chart 4.9: Prefer switching to other organization
Source: Created by the author
For this question most of the employees of both the companies opined that their switching to
other organization highly depends. Briscoe, Schuler and Tarique (2012) in the aces study
mentioned that due to the lack of training and development Shell lost most of its customers.
Thus it can be found from the survey findings that the switching of the employees to other
organization highly depended upon the situations or the issues faced.
10. To what extend training and development methods of your organization persuade you
to stay with the company?
0%
10%
20%
30%
40%
50%
60%
70%
80%
YesDepends
No
20%
70%
10%
30%
60%
10%
BP
Shell
53
Column chart 4.10: Training and development methods persuade to stay with the
company
Source: Created by the author
From the above chart it was clearly evident that it was BP which provided the employees with
effective training and development to a certain extent as majority of the employees of BP
opined that training and development made significant influence on their decision to stay with
the company and in the case of Shell it made only average influence. Though this was found to
be similarly reported by BP plc (2016a) that BP offered the employees with effective training
and development sessions for overcoming the challenges and these sessions highly motivated
them to exhibit excellent performances. However, in the case of Shell it was found to contradict
with the opinions of Daft, Kendrick and Vershinina, (2010) as it was noted that Shell provided
the employees with excellent training programs on professional, managerial and technical
development and even provided them with rewards and appreciations.
11. What are the recommendations you suggest to your company to improve its training
and development practices in order to enhance profits?
0%
10%
20%
30%
40%
50%
60%
70%
HighInfluence Significant
Influence Averageinfluence No Influence
At All
20%
50%
20%
10%
10%
20%
60%
10%
BP
Shell
54
From the survey analysis it was found that only least number of employees of BP opined the
carrier development training and job training as effective. Thus most of the employees
recommended the company to provide effective career development and job training
programs for motivating their performance level.
In the case of shell it was found that the company lacked safety training and it was rated as
effective by only some employees. Hence the company is suggested to highly focus on the
safety training and also to promote foundation training for improving the training and
development practices so that it can result in the enhancement of organizational profit.
55
CHAPTER 5: DISCUSSION AND INTERPRETATION OF FINDINGS
5.1 Introduction
Followed by the researcher's data collection and analysis section based on the research topic,
this chapter of the research study is enhanced with the discussions and interpretations of the
research findings. Therefore, in this chapter the researcher provides a detailed discussion on
the data gathered in review of case study, survey and literature review performed while
enhancing this study. The discussions enhanced in this chapter are presented two different
sections such as theoretical contributions and managerial implications. The theoretical
contributions states the relationship between the literature study and the findings obtained
during case study and survey. Similarly the managerial implications the researcher analysis and
estimates the entire research study and provides recommendations to the organizations in view
of findings obtained. Thus, in this chapter the researcher provides with a consolidated form of
entire research study along with the analysis and interpretations made in view of data gathered
and recommendations based on the analysis performed.
5.2 Discussion of Findings
Theoretical Contributions
The primary goal of the researcher in accomplishing this research study on the impact of
employee training and development on organizational profit in energy industry in UK is to
identify the major training and development practices adopted by the firms BP and Royal Dutch
Shell. As per the study facilitated in the literature review, Tahir et al. (2014) and Kulkarni (2013)
states that the major training and development practices adopted by various organizations
including energy industry are induction and orientation training, foundation training, job
training, career development training, safety training and refresher training. All these training
programs conducted within the organisation would motivate employees in becoming more
productive and emphasis on improving employee performance. In accordance to the case study
and survey observations it was identified that BP was more focused in providing employees
within safety training and Royal Dutch Shell had been providing employees with job training.
Thus, the training and development practices chosen by the firms have been facilitating the
56
organisation in better performance and organizational profit in UK energy industry. Therefore,
the case study and survey finding are found to be in line to the literature review performed by
the researcher.
Secondly, the researcher focused on the factors that influenced the effectiveness of employee
training and development in BP and shell. As per the justification provided by Malik and Rowley
(2015), certain factors that influence the effectiveness of employee training and development
in organizations are mediating factors such as size of business, training drivers such as single
structured or multi structured training sessions and environmental factors such as governmental
rules and regulations based on specific industries. As per the case study and survey results
obtained by the researcher in view of literature review, the factor that influence the
effectiveness of training and development in BP is workplace change and that of Shell is
advanced technology. The workplace changes that influence the training and development of
BP is directly associated to the environmental factors that influence effectiveness of employee
training and development. The regulatory changes would impact in changes upon
organizational aims and objective that would affect the workplace strategies and surroundings.
The advanced technology that influence Shell could be associated with training drivers.
Employees familiar with latest technological changes could enhance productivity as well as
performance in accordance to the technological changes. Thus, from the literature review and
the case study, survey findings environmental factors and training drivers are the major factors
that influence the effectiveness of employee training and development of an organization.
The third research question that the research needed justify was the impact of employee
training and development in organizational profit. As per the implications of Nda and Fard
(2013), employee training and development within and organization facilitates in supporting
and enhancing employee productivity and performance, thereby facilitating organizational
performance and profit. Jehanzeb and Bashir (2013) supports the argument made by Nda and
Fard (2013) by stating that employee influenced and motivated by the training and
development programs provided by the organization excels in situations where they need to
face challenges pertaining to job accomplishment. Employee training and development
57
motivates and encourages employees of an organization in attaining improved productivity and
performance. Organizational performance and profitability are dependent on employee
performance. Thus, efficient and highly motivated employees enhances organizational
performance as well as organizational profit. From the case study it could be identified that
though the reduced oil price in current scenario showcase adverse impact on employee training
and development in BP, the Shell encountered a positive impact in organizational profit with
the change of human resource capability and revenue. Thus, the researcher concludes that the
factors such as human resource capabilities and sales changes influence and exerts positive
impact through employee training and development in organizational profit. Hence, the
researcher found that literature review and case study findings are related with each other.
The ultimate query that the researcher had to identify was to infer how the employee training
and development programs of BP and Shell affected the organizational profit. As per the
analysis based on the case study of BP and Shell, employee training and development had a
significant role in the organizational profit of both the firms. BP had been distributing tasks
equally among the employees of the firm in accordance to their talents and skills. This enabled
the organization in reducing work pressure among employees and prevent employee retention.
On the other hand Shell have been encountered with major factor influencing training and
development as workplace change, rewards and benefits, training infrastructure, etc. Thus from
the study it was found that environmental factors and mediating factors are the major factors
that has significant impact on employee training and development in organizational profit.
Managerial Implications
On the managerial implication side, the case study analysis has revealed that the success of BP
is mainly due to the systematic and organized working pattern of the company. On the other
side, the global success of Shell is attributed to its comprehensive working environment. Apart
from being organized, it is necessary that organizations provide an environment for innovation
to its employees. By improving the innovative capacity of employees, the organisation
motivates them thus attaining objectives in a competitive manner. Comparing and contrasting
the structure and style of BP and Shell, the current researcher interpreted that organizations
58
must have both organized and comprehensive structure to involve all its employees and
improve their innovation capability. The need for organized working arises on the ground that
such structure directs to equal distribution of work, strong group dynamics among employees,
reduces work pressure and provides an environment of high motivation. And the need for
comprehensive working arises on the fact that it leads to improvement of individual skills and
performance thus directing the firm to achieve better results. The employee survey also proves
this aspect.
The case study of BP makes the researcher interpret that regular employee feedback system is
a pre-requisite to training and development program. This research study finds that through
regular employee feedback, organizations can identify the needs and preferences of employees
and also the issues in organisation that lead to lesser productivity/ profitability. But while
comparing the training and development activities of BP and Royal Dutch Shell, the latter has
additional facilities liketraining infrastructure, workplace change, rewards and benefits etcand
considers environmental factors. The survey among employees have shown that Job training in
Shell has been the most influential one for them while Safety training was pointed as the most
influential one for employees in BP. Every employee who participated in the survey opined that
training and development moderately influenced organizational profitability. However a strong
link to prove this statement could not be found by the researcher.
Despite finding a strong link between training and development and organizational profits, this
study finds that training and development leads to motivation and innovation among
employees; but these to be aligned with materials changes, human resource capability and
sales changes in the energy sector. Only then a positive impact could be observed on
organizational profits.
5.3 Recommendations
• Implement On-The-Job training (OJT):This research study had identified that Energy
sector organizations like BP and Shell made profits by maximizing the revenue made per
employee. But despite arranging job training, BP faces issues in employee responses and
concerns which have affected its recent profits. Similarly Royal Dutch Shell has also
59
failed in reducing employee turnover despite its training and development efforts. This
points out to the inefficiency oftraining and development sessions in these firms. The
researcher thus recommends that the energy sector organizationsimplement OJT or the
On-the-job training program for its employees. Being one among the most efficient
training and development patterns, OJT will assist in structured development of each
employee and will provide accountability to the organisation. OJT is an effective training
method where internal and external factors in the organisation are duly taken into
consideration to improve capabilities and talents of employees and this will improve
revenue per employee directing to better profits.
• Provide Health and Safety Training to employees: It was found during the research
study that BP had effective safety training for its employees. On the other hand Royal
Dutch Shell faced employee issues due to lack of Safety training. Being in the Energy
sector, the employees are exposed to large health and safety risks and thus the research
recommends that Royal Dutch Shell provides Health and Safety Training to its
employees. The researcher also recommends BP to introduce unlimited Health and
Safety Training to its employees. These training sessions can be provided through
industry-expert risk specialists. By providing Health and Safety Training, both BP and
Shell can improve the professional expertise and technical capabilities of its employees
and this will also improve the confidence and motivation level of employees here.
Hence better revenue per employee can be achieved leading to higher revenue and
profitability in the industry.
• Provide customized leadership training and development: Building leadership quality
and ability is one among the main requirement in on-site training and development.
During the case study and survey analysis, the researcher could not find such training
and development activities in BP or Royal Dutch Shell. Thus it is recommended that
these organization implement and maintain customized leadership training and
development as part of its strategies. This training will benefit in improvement of
organizational focus and help employees to achieve intended goals in high competence.
Apart from increasing the motivational levels, this training will also support in superior
60
flexibility among workforce and develop their in-house competence. This ultimately will
result in better performance among staffs and assist organizations to achieve higher
profitability.
• Allow Continuous Professional Development: Another area that BP and Royal Dutch
Shell should consider in training and development is ensuring continuous professional
development(CPD) of its employees. There exists no current scheme for CPD in BP and
Shell and thus it will assist in improved competence and professional development of
employees, especially the newly recruited staffs. CPD is a non-formal method of training
and thus employees will improve personal bonding between themselves and between
management. It will also assist in developing loyalty and commitment of workforce and
this will reduce the issues of labour turnover and non-responsiveness among staffs
leading to better productivity and profitability of firms.
61
CHAPTER 6: CONCLUSIONS AND LIMITATIONS
6.1 Introduction
The researcher in this final chapter of the research study elucidates discussions and conclusions
based on the research findings obtained. The analysis and interpretation performed based on
the research topic, the impact of employee training and development on UK energy industry,
the researcher identified that for the efficient and structured performance of an organization,
training and development plays a significant role. In this chapter the researcher justifies the
objectives that are to be achieved in accomplishing this research study. The researcher also
specifies the limitations encountered in performing the current research study along with
recommendations to future researchers to enhance the research study efficiently.
6.2 Conclusions
Objective 1: To systematically assess the factors effecting employee training and development
in an organization
In accordance to the literature review performed by the researcher, the major factors that
influence the effectiveness of an organization are environmental factors, mediating factors and
training drivers. According to Malik and Rowley (2015) the environmental factors incorporate
the governmental rules and regulations to be followed by the organization. Mediating factors
are the one's the determines the firm such as size of industry or business and training drivers
are the motivational actions that enhance in conducting employee training and development.
On the other hand the survey performed among the employees of BP and Royal Dutch Shell
indicate that the highly influential factors of an organization are nature of energy industry,
advanced technology and workplace change. Thus, the research study meets the primary
objective with minor contradictions.
Objective 2: To assess the factors contributing to the enhancement of organizational profits in
energy industry
According to the literature review, the studies enhanced by Heskett, Sasser and Schlesinger
(2010) states that the factors that enhance organizational profit are sales change, labour price
change, material price change, inventory method change and human resource capabilities. The
changes that are encountered in the sales rate of an organizations productivity is referred to as
62
sales change. Labour price change indicate the monetary benefits availed towards employees of
an organization including incentives, bonus, appraisals, etc. inventory methods incorporate the
various strategies adopted by the firm in increasing productivity. As per the findings from
survey, the major factor that contribute towards the enhancement of organizational profit in BP
is sales change and that of Royal Dutch Shell is the labour price changes. Human resource
capabilities is a common factor that both firms encounter in enhancing organizational profit.
Thus, the literature review and survey result along with case study findings serves in providing
similar results.
Objective 3: To critically examine the impact of employee training and development on
enhancing organizational profits of BP and Shell
The findings in the literature review states that employee training and development impose a
positive impact on the overall organizational functioning as well as in enhancing organizational
profit. Employee training and development reduces employee turnover and absenteeism in
each and every organization to a very great extend. It also improve the technical and
professional talents and skills of employees in attaining employee performance and
productivity and thereby attain organizational performance and profit. In contradiction to the
literature review, the employees of both energy industry, BP as well as Royal Dutch Shell states
that employee training and development enhance only moderate impact on the organizational
profit. It is also visible from the survey results that many of the employees plans to switch over
to other firms that offers employees better training and development programs. Thus, the
research findings seems to have met the objective with certain contradictions and similarities.
Objective 4: To provide recommendations to BP and Shell for improving employee training and
development for enhancing organizational profits
The literature review findings estimate that employee training and development programs
impact positively based on the organizational performance and organizational profit. Failure of
an organization in availing employees with efficient employee training and development would
result in failure of business ventures of the organization. The major recommendations put forth
by the employees of energy industries BP and Royal Dutch Shell are job training and safety
training. Job training has to be enhanced within an organization to educate employees on the
63
organizational goals and objectives as well as the productivity to be attained by employees
through various tasks. And safety training is to be provided in availing an awareness on
employees based on the accidents and impacts that could occur while performing a specific
task in the organization. Thus, the ultimate objective of the research study based on providing
recommendations to energy industry in enhancing employee training and development
programs in attaining organizational profit was also accomplished by the researcher.
6.3 Limitations of the research
Time and cost constraints were the major limitations faced by the researcher while performing
this research study. As the researcher has chosen two different firms of the energy industry in
UK, the researcher could avail only limited time in performing case study on both. Thus,
sufficient data gathering was not attained in accomplishing the study. Similarly, the researcher
had to perform survey among employees of both the firms which limited the sample size as
well as the time in collecting survey responses from every employee in the firm. The case
studies were performed on the basis of online sources, journals, books, articles and website
contents. As most of the secondary sources were paid contents, researcher was not able to
access it due to cost constraint.
6.4 Recommendations for future research
A significant recommendation for future researcher in enhancing this research study is to avail
appropriate time for each section in the research study so as to gather relevant and sufficient
data regarding the two firms. The researcher could also perform survey among employees of
larger sample size and gather more accurate and genuine information. The researcher could
also facilitate with recommendations and suggestions for both organizations based on the
research findings that would be achieved. Interview could be conducted between the managers
of the two firms in obtaining more detailed and precise data regarding the operational
functionalities of both the organizations.
64
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71
APPENDIX
Survey questionnaire for employees of British Petroleum and Royal Dutch Shell,UK
Dear employee,
Kindly give your answers for the following survey questions regarding the impact of employee
training and development on organizational profits in energy industry.This survey’s aim is to
evaluate the employee training and development implemented by British Petroleum Royal
Dutch Shell for enhancing the profitability of the organization. You will have to spare only
approximately 10 minutes to cast your responses. Also, kindly notice that all the answers
collected will be utilized for academic purposes and all the information will be secured under
the Data Protection Act of 1998.
Kindly mark your answer by using ✓ on your option.
1. Age
• 25-35 years
• 35-45 years
• Above 55 years
2. Gender
• Male
• Female
3. Please mention your work experience?
• Less than a year
• 1-3 years
• 3-6 years
• More than 6 years
4. According to you, which is the major factor that contributes to the overall enhancement
of organizational profit in your firm?
• Materials price changes
• Sales changes
72
• Inventory method changes
• Changes in labour price
• Capability of human resources
5. What is your outlook on the influence your company’s training and development
initiatives produce on organizations profitability?
• Highly influences
• Moderately
• Not at all influences
6. Rate the following factors of enterprise training on a scale of 1-5 depending on their
influence on your training and development effectiveness. [1- Highly influential, 2-
Influential to some extent, 3- Average, 4- Neutral, 5- Not at all influential].
Factors influencing training and
development
1 2 3 4 5
Size of the business
Nature of energy industry
Advanced technology
Workplace change
Quality
Competitive environment
7. According to you, which type of training and development is the most influential and
effective in energy industry?
• Induction/orientation training
• Foundation training
• Job training
• Career development training
• Safety training
• Refresher training
8. Please mention the effectiveness of training and development provided by your
organization?
73
• Good
• Moderate
• Bad
9. Would you prefer to switch to other organization if they offer efficient training and
development practices than your present organization?
• Yes
• Depends
• No
10. To what extend training and development methods of your organization persuade you
to stay with the company?
• High influence
• Significant influence
• Average influence
• No influence at all
11. What are the recommendations you suggest to your company to improve its training
and development practices in order to enhance profits?
---------------------------------------------------------
Thank you
I extend my sincere gratitude to the employees who took part in surveying process for aiding
me to gather significant data to successfully complete this study. I further extend my
thankfulness to all for consuming their precious time for the accomplishment of my research
study. In addition, I also ensure that the privacy of information will be maintained and the
personal details will not be revealed to any third party.
Full name: ….
Email:
Telephone No:
74
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