What are the advantages and disadvantages of Schlumberger’s approach to international human resource management?
Schlumberger is one of the world’s largest oil field services companies. The firm offers a complete range of oil and gas services, including engineering, construction, and project management. But while the firm has little trouble finding oil these days, attracting and keeping the right people—a fundamental human resource management issue—is an ongoing challenge. Schlumberger and other large companies in energy-related industries depend heavily on a steady inflow of new employees. But an aging workforce and an unevenly distributed supply of talent continues to create challenges.
More than 40 years ago, Schlumberger adopted an aggressive and innovative human resource strategy that is based on diversity and partnerships with colleges and universities. As a result, the firm has long hired in every country where it operates. In addition, it took a geocentric approach to all of its global assignments, hiring the best people regardless of where they are from and moving them to work assignments that are mutually beneficial regardless of the location of those assignments. As a result of these efforts, Schlumberger has maintained a human resource advantage over many of its key competitors. To maintain the competitive advantages Schlumberger gets from its workforce, the firm continues to develop and implement new systems, policies, and practices to retain the strong workforce it has attracted.
Case Questions
- What are the advantages and disadvantages of Schlumberger’s approach to international human resource management?
- Under what circumstances, if any, might Schlumberger find it necessary to change its international staffing strategy?
- Based on the information in this case, would you like to work for Schlumberger? Why or why not?
