to review the impact of employee training and development ... · 1 to review the impact of employee...

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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


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


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


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


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


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


Column chart 4.6(a): Rating provided to the factors of enterprise

training


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


49

Column chart 4.6 (b): Rating provided to the factors of enterprise training


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


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


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


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


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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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:

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