Strategic Human Resource Management Case Study BPL PRIDHIVRAJ NAIDU - 814284

5. Critically evaluate the role of HRM in transforming BPCL from being a state-owned enterprise in a regulated market to a competitive, customer orientated firm, HRM as always the backbone of any organization, in the deregulation process of BPCL the change done in the structure and process of its HR have influenced the organization change much. Prior to redesigning the HR functions was functional, coordinated at central level, after the restructuring the HR transformed in to a divisional enterprise, consisting of six SBUs and over four geographical regions1. Allowing the organization to manage HR needs in each level by various persons with adequate knowledge and to only update and inform superiors at higher level of HR management. Other than the structure of HRM in BPCL, there was also a significant change in its role, the changes in the business environment made the role of HR department critically important and adequate changes were made in certain roles such as: Recruitment process, Retraining and redeployment, Performance management system2. As in for recruitment, BPCL recruitment policy sets the challenges in place for the restructuring process. This is because, The recruitment mostly happens in the entry level, where the company believes in building it human capital rather than buying it from market3 As a state-owned enterprise, there was not much pressure on this policy, but changing into a customer orientated organization, there might be slight problem as in to get the right person for the right position. The pool for recruitment is rather limited. In this case the selection is based on the staff already working in the organization the best mode to fill in new positions at higher level would be through retraining and redeployment, with this approach the organization can move forward with the existing staff, accommodating the BPCL current HR policy.

Organizational redesign at Bharat Petroleum Corporation Limited: The Challenge of Privatization, Redesign Strategy pg3. 2 Organizational redesign at Bharat Petroleum Corporation Limited: The Challenge of Privatization, Human resource management in BPCL pg4. 3 Ibid pg4