Question

Read the case study given below and answer all the questions that follow.

Shell : Reshape Employee Initiative
At December 31, 2021, there were a total of 82,000 employees at Shell. This total consisted of employees at Shell and employees at certain Upstream, Downstream and Renewables and Energy Solutions companies that operate more autonomously than other Shell subsidiaries and maintain their own HR systems. There were a total of 87,000 employees at December 31, 2020, and December 31, 2019.

In August, Shell launched the new organisational structure as part of the Reshape initiative. This new structure was created with the aim of reducing costs and making Shell a more competitive organisation that is agile and better able to respond to customers.

The Reshape initiative in 2021 involved job reductions in line with the expectation that around 8,000 jobs will be reduced by the end of 2022 . As a result of different notice periods in various markets, people are continuing to leave until the end of 2022. In certain markets provided the opportunity for selected voluntary severance (SVS), in order to reduce the number of enforced redundancies. It has around 3,000 people that are leaving on SVS.

Shell have sought at all times to conduct the job reductions process in accordance with the core values of honesty, integrity and respect for people. Shell have constantly sought to show care for anyone losing their role.

Throughout the Reshape process, Shell have aimed to support those facing job reductions by helping them to find and engage with internal and external opportunities to reskill and upskill. Shell introduced a global minimum standard for outplacement. This ensured that all employees who were leaving Shell had access to an independent professional career coach who could offer individualised support.

The proportion of voluntary resignations in Shell was 4.4% in 2021 compared with 2.6% in 2020. The rate is low across a range of industries. In 2021, a total of 271,000 formal training days were provided for employees and joint-venture partners, compared with 234,000 in 2020 and 373,000 in 2019. The increase was caused by the rise in the availability of virtual courses as we rapidly digitalised, enabling people to attend virtually. This allowed Shell to continue to invest in people and capabilities, while maintaining the focus on safety.

Shell also migrated to virtual courses and their uptake has increased from 2020, when people were still new to the virtual ecosystem. In 2021, learners embraced the virtual courses. Management regularly engages with our employees, including internally elected employee representatives, through a range of formal and informal channels. These include webcasts and all-staff messages from Chief Executive Officer (CEO) Ben van Beurden, senior leader webcasts, town halls, team meetings, virtual coffee/chai connects, interviews with Senior Management, and online publications via our intranet. In 2021 Board members had virtual staff engagements and visited some sites such as Qatar, Shell Pernis, and Pennsylvanian Chemicals park to have direct engagement with staff.

Answer 1

The Shell case study deals with the company's restructuring initiative aimed at reducing workforce costs while maintaining core values and providing support to affected employees. Walmart, led by CEO Doug McMillon, similarly adapts by transitioning to sustainable practices, demonstrating economic and environmental benefits. Government involvement is also noted as crucial for workforce changes in line with sustainability.

Step-by-step explanation:

Corporate restructurings, such as the Shell: Reshape Employee Initiative, often involve significant changes, including job reductions, with the aim of cutting costs and improving competitiveness. As seen in the Shell case study, such initiatives can also include offering selected voluntary severance (SVS) to mitigate forced redundancies. The case study illustrates Shell's efforts to handle the process with its core values of honesty, integrity, and respect for people, ensuring that employees who are leaving have access to career support and coaching.

Similarly, when Walmart, under the leadership of CEO Doug McMillon, implemented their sustainability initiative to reduce emissions, they demonstrated how adaptation can be beneficial not just environmentally but also economically. Meanwhile, governmental roles are also emphasized, as they play a part in restructuring the workforce to align with ecological goals.

The transition and restructuring of companies in the face of such changes, as reflected in the Shell case and the Walmart announcement, reveal the multifaceted impact these decisions have on employees, the environment, and the broader economic landscape.