Search results

The resource curse literature suggests that firms operating in non-oil and non-gas industries in petrostates face considerable challenges in securing competitiveness and sustaining themselves. Based on a firm-level survey within a micro-petrostate, Brunei, the purpose of this paper is to explore the relationship between specific HR policies and practices and organisational performance; analyse, compare, and contrast oil and gas with non-oil and non-gas sectors; and draw out the comparative lessons for understanding the potential and performance consequences of HR interventions in resource-centred national economies.

Data for this study were generated from a primary survey administered amongst the HR directors in companies operating in all sectors in Brunei. A statistically representative sample size of 214 was selected.

The authors confirmed that firms in the oil and gas sector indeed performed better than other sectors. However, the authors found that the negative effects associated with operating outside of oil and gas could be mitigated through strategic choices: the strategic involvement of HR directors in the affairs of the company reduced employee turnover and added positively to financial returns across sectors.

Developing and enhancing the role of people management is still very much easier than bringing about structural institutional reforms: the study confirms that at least part of the solution to contextual difficulties lies within, and that the firm-level consequences of the resource curse can be ameliorated through a strategic choice.

The nature of the present investigation is one of few studies conducted in South East Asia in general and in the context of Brunei, in particular. It also contributes to the authors’ understanding whether HR interventions can ameliorate the challenges of operating in a non-resource sector in a resource-rich country.

Human resource management and organizational change.

Students on an introductory course on Human Resource Management or a specialization course of HRM such as change management and organizational development. This case study can be taught at the MBA level.

This case study can serve as the base for understanding and identifying the various characteristics that relate to revolutionizing HR functions with the help of digitalization. It can also be elaborated further to include the challenges that a company has to face after it decides to establish IT software based on operations. This case is an evolutionary story of a large-scale Pakistani company, Pak Electron Ltd. (PEL) which has been in operation for almost 60 years. The top management decided to move from a traditional administrative system towards setting up an HR department for the first time. The case states the salient features of the traditional administrative system, issues faced by the company in the setup of a new HR system and digital HR system along with the employees’ views and perceptions on these systems.

Students are expected to learn the following: the various characteristics of a paper-file based traditional administrative system; the various features of an IT-based modern HR system; the decision background and basis for making the switch to the new contemporary HR system; and the reaction of employees against changes in organizational systems.

Teaching Notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS: 6: Human Resource Management.