Table of Contents
PHASE 1: ENTRY AND CONTRACTING.. 4
The organization and management structure. 6
Employees of the company to meet 7
Key points that are important 8
Introduction
ADNOC is considered one of the leading companies that specializes in oil production in the UAE (Butt, 2001, p. 234). The company is located in Abu Dhabi, which is one of the seven Emiratis of the UAE. It generally produces about 2.7 million barrels of oil on a daily basis. The essay focuses on Abu Dhabi Company for Onshore Oil Operations in terms of its entry and contracting diagnosis, analysis, and intervention.
It is evident that the firm has a strong management that has played a key role in ensuring that the firm becomes successful. The company is argued to supply oil and petroleum across different countries across the world. It has gained a wide base of both local and international customer’s base hence increased revenues. The company has employed a large number of Emirati citizens tom work within the organization hence contributing immensely towards economic growth and development both directly and indirectly.
According to Rousseau et al., (2000, n.p), the firm takes pride in its employees and offers a competitive wage in addition to lucrative benefits that has motivated them to increase their productivity. The company faces two major problems related to adoption to the rapidly changing external environment like stiff competition and the challenge of uncertainty mostly experienced inform of inflation.
The company has certain areas that they have been doing so well, and this has given them a competitive advantage over its competitors. However, the firm has some areas that they have not been doing so well hence the needs to develop strategies and interventions that will help improve the operation of the company. Data collection o various aspects of ADCO Company will be carried out to study certain aspects relevant to the study.
PHASE 1: ENTRY AND CONTRACTING
The company’s history
Abu Dhabi company for onshore oil operations (ADCO) specifically caries its operation onshore and particularly I the shallow coastal water in Abu Dhabi (Sourisseau et al., 2000, n.p). Abu Dhabi is one of the cities of the UAE, established in the year 1973 as the first company ever to be owned by the government. It thus focuses on the field of marketing of oil and petroleum products and distribution throughout the UAE regions.
The company’s mission statement has played the key role in propelling the operation and success of the firm. The company made its concession agreement with the Petroleum Development Limited in the year 11 th January 1939. The exploratory and drilling by the company started in the year 1950. It is thus in the top ten list of the oil producing companies globally. Currently, the company is a key player in the economy of Abu Dhabi and further is one of the UAE’s major employers.
Its employee strength
ADCO Company has for years been attracting and retaining skilled and experienced employees to work with the company. The employees are given a competitive pay, training, and benefits to enhance their morale hence increasing their productivity. The firm has thus been able to achieve employee satisfactions who in turn are motivated to work increasing their productivity.
Constant education and training of employees have enabled the firm’s employees to be familiar with the modern technological advancement and any new development giving the company a competitive advantage over the rest of the competitors in the market (Al-Hosani, 2011, n.p). It can thus be argued that ADCO workers tend to have a positive and strong relationship in terms of knowledge gaining and job satisfaction.
Its current operations
The ADCO company current operation major is focused on the production of oil in the UAE. It is considered one of the UAE’s biggest Companies when it comes to the production of oil globally. Oil and natural gas are thus the main products produced by ADCO Company (Sourisseau et al., 2000, n.p).
It is believed that ADCO Company targets to attain a healthy working environment that is safe while producing oil and gas to its customers. The firm thus ensures there is a balance between the needs of the people and all the available resources used in the production of products. It thus provides all-inclusive products in addition to quality services to its massive number of customers.
Their broad strategy
ADCO Company aims to become one of the respected contributors to the sustainable future of Abu Dhabi through the company’s stewardship of their resources. To achieve this, the firm has a core strategy that directs its operation, which is to achieve highest standards of the HSE performance and integrity through their strong leadership (Rai & Victor, 2012, n.p). It is considered as a quality-focused company, and it manages a high level of logistics support base. The Company has remained closely committed to its numerous employees, customers, and the entire community.
The organization and management structure
At the top is the Executive Board that oversees the operation of the company followed by the chief executive officer. The executive director commercial and the HSS& E director follow. The chief financial officer is in charge of finance who works at the same level with the general counsel. The chief program officer and the external affairs and communications director then follow these. The chief nuclear officer and the quality assurance director further follow these. At the bottom of the hierarchy are the corporate project management and the human resources director.
Two most serious problems
The main problems that ADCO Company has been facing for over the years include,
-The challenge to adapt to the rapidly changing external environment such as stiff competition (Berument, Ceylan, & Dogan, 2010, p. 149)
-The challenge of uncertainty that is mostly experienced informs of inflation
PHASE 2: DIAGNOSIS
- A) Planning:
To complete the diagnosis at the client organization, there is the need to have about 25 days for the data collection, data analysis, and feedback and the action plan. The number of days will ensure that an in-depth research is carried out, and relevant data is gathered on all aspect that is vital to the study. There was the need to have enough number of days to ensure that detailed research is carried out on various aspects of the company. Research and diagnosis are generally a lengthy activity that requires enough time to complete. Therefore, it was concluded that about 25 days would be enough for the study.
Employees of the company that the team would wish to meet
To carry out the diagnosis process for the study effectively, there is the need to gather data for the study. The team would like to meet two ADCO company representatives, and these representatives should have worked with the company for less, not than two years. These representatives will thus provide information necessary to complete the study.
Between the two employees to be met by the team, one must come from the HR department preferably the manager and the other one should come from the rest of the employees below the manager’s level preferably a supervisor. This is necessary because it would allow for easy collection of relevant information for the study. As a result of time constraint, having two representatives to be interviewed is necessary for addition to resource constraints. Therefore, the two representatives should be well informed about the affairs of the company to generate relevant and objective information.
Key points that are important
In the diagnostic phase particularly in the data collection methods, there are certain key points that one should have in mind. The key points are vital since they will determine the direction of the study and the type of information to be collected. First, there is the need to keep in mind the type of data that one would wish to collect, for instance, primary data or secondary data.
It is evident that the type of data might affect the result of the study hence the need to ensure that the type of data that would be appropriate to the study is identified. Secondly, one should keep in mind the type of method that will be used in the collection of data either qualitative or quantitative methodology.
The quantitative methodology will be used in the collection of data that is numeric in nature while qualitative approach will gather secondary information. Thirdly, one should keep in mind, the technique used in the collection of data and this includes, interviews, questionnaires, and observations. The techniques used in the collection of data should be selected keenly to ensure that the instruments selected will gather data accurately, at a lower cost and is objective and efficient.
|
S.No |
Questions / Answers |
OB / OD/ Theoretical linkages /Implications/Indications |
| Q: Are employees consulted before a new policy and system are introduced into the company?
A: In most occasion, a policy introduced by the firm is aimed at either introducing a culture or eliminating it; therefore, most of them are binding and employees are not always involved
|
Closed system
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| Q: What happens in the event where a new policy is introduced within the company that does not favour most employees?
A:The company’s management is very strict, and policy introduced becomes a culture of the organization that has to be adhered to |
closed system | |
| Q: Are employees involved in major decision making that affect the operation of the company?
A: Employees contributes greatly to major decision making by airing their point of view concerning the matter at hand. |
Communications | |
| Q: How are the employees treated in their areas of operation
Employees are highly valued by the organization and are treated with utmost respect to achieving employee satisfaction |
Leadership style | |
| Q: How often do you hold staff’s meeting with the company’s management?
A: Meeting between the management and the staff is often held after every two week to review the progress of the company and changes that has to be made |
Structure
|
|
| Q-Approximately how many levels do you have between the lowest and the highest levels within the firm?
A: There are exactly three levels of management within ADCO and these are, middle-level, and top-level, low-level management. |
Hierarchy | |
| Q: Are you punished in case you mistakenly commit a mistake?
A: Mistakes are not tolerated and are severely punished but in a situation where the mistake was committed un-intentionally, one is pardoned but strictly warned to avoid the same in future Q: What would you suggest should be done to minimize the number of mistakes within the department that you are working? A: There should be a session of education and training on areas where one is most likely to commit a mistake to prepare the staffs both psychology and physically on ways to handle and avoid the mistake |
Democratic & liberal
Democratic & liberal |
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Q: Does the company take its employees for leisure activities and picnics? A: The company introduced picnic and leisure activities to motivate its employees to enhance their productivity
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Informal styles
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| Q: What does the company’s management do in case an employee has met or even exceeds the customer satisfaction indices?
A: In case an employee has met his or her customer satisfaction indices, the effort made is recognized for the rest of the employees, and a reward is provided to such an employee to motivate them and the rest of the employees |
Informal styles
|
- C) Analysis:
- The following are the areas that the company is strong in / is doing well, and must continue to keep doing, or, try to do even better:
- a) The quality of service of customer service is encouraging and has given the company competitive advantage in the market. Customer satisfaction is necessary to the company success because it will determine how motivated the employees are which will then translate into increased productivity. Customer satisfaction has led to customer loyalty, turning first customers into repeat customer (Al-Hosani, 2011, n.p). Therefore, it can be argued that ADCO Company places the high value on its customers and has introduced strategies and measures that will see to it that its customers are satisfied with the quality of products provided by the firm.
- b) Cultural diversification has been an area of strength for the company, and this should be maintained. This is important because it gives the company a national face by accommodating employees from a diverse cultural background. Diversity in culture is important because it brings different employees with their uniqueness to work together to achieve a common end. Cultural diversity is thus the company’s strengths since the company has an opportunity to explore different skills and experiences from people of different cultures.
- c) Employee satisfaction has been an area of strength for ADCO Company, and this has made sure that employees are motivated hence increasing their productivity. Employees are the driving force of the company and are dedicated to ensuring that the company meets its mission and objectives. Whenever the employees are satisfied in addition to providing a conducive working environment, the company will be able to experience increased productivity.
- The following are the areas needing some improvement, to maintain the company’s current market position, or, to improve its current standing
- a) ADCO Company should focus much on involving employees in all sectors in terms of decision-making. This will ensure that policies and decisions made are in the best interest of the employees. When involved in decision-making, employees are more likely to implement and adopt much easily unlike in situations where they are forced to adopt to introduced changes without being involved.
- b) There is the need to formulate a strategic approach that will enable the firm handle customer feedback and understand the causes of client’s problems. Customers determine t\he success of any firm, therefore, there is the need to make sure that they are listened to, and all the issues raised by them should be addressed with utmost respect to ensure that all the customers are satisfied.
- c) There is the need for the company to invest more in better means to solve conflicts because conflicts are inevitable in any organization thus the need to have an effective approach that will ensure that conflicts are handled as soon as they emerge
PHASE 3: INTERVENTION
| Area identified for improvement | Proposed OD Intervention | Theoretical basis with justification
|
| a) The strategy in place used to solve conflict is not effective despite the fact that conflicts among the staffs are inevitable | a) To solve the conflict, there is the need to identify the possible source of the conflict to help resolve it easily
b) The management should look far and beyond the current incident at hand and focus on various perspectives on the situation that led to the conflict. |
– A behavioural theory of the firm (Cyert & March 1963). When the employees are involved in the identification of possible sources of their conflicts chances are high that the conflict would be solved effectively. Involvement of employees in the problem solving they will be more likely to accept the outcome |
| b) Employee involvement in the decision-making is limited and confined in certain fields while the rest of decision-making process they are not involved. | a) Allowing employees to participate in the decision-making through a collective bargaining and agreement by following some set of given rules and regulations.
b) Enabling employees participate through ownership. This is where employees are made the company’s shareholders though inducing them to purchase equity shares and through advancing loans
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Organizational behavior and human decision processes (Bandura, 1991).
When employees are involved actively in the decision-making on matters that affect the operation of the company or the introduction of a new policy that will influence the operation of the company |
| c)The system in place to handle customer feedback and complaints is not effective hence making the process of handling complaints from customers slow | a) Customer survey is one of the systems that the company can adopt to get customer feedback on areas that that they have done better and those areas that should be adjusted. The survey can be done online to save on time and resources
b) Usability test is another approach that the company can use because it is believed to deliver more insights into issues that require to be adjusted by uncovering those things that even the customers might not know that that they are thinking about. |
-Using customer feedback as a strategic tool (Barlow & Møller, 1996).
Customer feedback plays a key role in ensuring that customer loyalty is achieved. Complaints should be handled immediately they emerge and measures should be in place to prevent future occurrence of similar complaints. When complaints are handled effectively, the first time customer
|
Conclusion
From the above analysis, ADCO Company is a global oil producing company based in Abu Dhabi in the UAE. It is one of the largest oil producing firm that is led by a group of the skilled management team that has seen it succeed in the market. The company has a team of dedicated employees that drive the operation of the firm. Employees and customer satisfaction are the key areas that the company has been focusing to attain competitive advantage.
Employees have played a key role that has led to the success of the company, and this has been argued to be the case in the manner in which the company values and appreciate every little contribution from its employees. Training and education are also other areas that the company has invested into to ensure that its employees are up to date with the current technological development and other emerging issues that might affect the operation of the company.
There are certain challenges that have been a barrier to the success of the company including, the challenge to adapt to the rapidly changing external environment such as stiff competition and the challenge of uncertainty that is mostly experienced inform of inflation. The company main area where it derives its strength is in the area of cultural diversity, quality service provision and employee satisfaction, The areas that need to be focused much are strategy used to solve conflicts, employee involvement in the decision making and the approach to handling customer feedback and complaint. When the above intervention measures are adopted and implemented, the firm would be in a better position to perform even better gaining competitive advantage.
References
Al-Hosani, A. A. (2011). Job Satisfaction and Knowledge Sharing in Oil and Gas Industry: The case of ADNOC Company, Abu Dhabi (Doctoral dissertation, British University in Dubai).
Bandura, A. (1991). Social cognitive theory of self-regulation. Organizational behavior and human decision processes, 50(2), 248-287.
Barlow, J., & Møller, C. (1996). A complaint is a gift: using customer feedback as a strategic tool. Berrett-Koehler Publishers.
Berument, H., Ceylan, N. B., & Dogan, N. (2010). The impact of oil price shocks on the economic growth of selected MENA countries. Energy Journal, 31(1), 149.
Butt, G. (2001). Oil and Gas in the UAE. United Arab Emirates: A new perspective, 231-248.
Cyert, R. M., & March, J. G. (1963). A behavioral theory of the firm. Englewood Cliffs, NJ, 2.
Rai, V., & Victor, D. G. (2012). Awakening giant: strategy & performance of the Abu Dhabi National Oil Company (ADNOC). Victor et al, eds, Oil and Governance.
Sourisseau, K. D., Ibrahim, I. A., Al-Jabri, A., & Wetzels, G. (2000, January). Surface facilities considerations for the production of a large sour gas resource and the injection of sour and/or acid gas. In Abu Dhabi International Petroleum Exhibition and Conference. Society of Petroleum Engineers.