Description
Solution
The term “total reward” describes the benefits an employee receives from their job, which go beyond their base pay or compensation. Eco-Insulate UK will need to adhere to intrinsically suitable, fair, equitable, and transparent incentive policies in order to promote a positive organisational culture, drive transformation, and strengthen performance management. It is also important to note that when done effectively, total reward strategies do have the capacity to alter the organisational culture and thereby enhance corporate outcomes (CIPD, 2022).
Fairness
Consequently, Cotton (2023) argues that fairness is part of Eco-Insulate’s organisational culture as it promotes constructive employee relations and employee productivity. When compensation is perceived as unfair, then the confidence in the management is eroded, thus leading to low morale and a bitter employee who is disengaged. The compensation reviews must be done frequently to prove to the workers that their efforts are valued.
Adequate wages, which respond to the abilities, the responsibilities of the employee, and his performance, prevent a qualified worker from feeling underestimated at his workplace. Paying employees based on their success at work encourages better output. Inequitable organisational systems do not stimulate workers to become more productive or produce higher-quality work.
Transparency
Transparency in incentive practices is a key component of Eco-Insulate’s second main organisational culture. This will foster a culture of understanding and trust between the management and the employees. A culture of conjecture and uncertainty is facilitated by a lack of transparency regarding compensation decisions and benefit plans, and this gradually erodes employee collaboration and loyalty.
Transparency promotes pay-for-performance in performance management and this leads to increased output. When employees know what is expected of them and what is expected of anyone who excels in the position, then they can assume responsibility for their growth. Transparency helps make the rationale for awards clear and motivates personnel to set higher goals, and make it easier for Eco-Insulate to achieve its goals.
Equity
The notion of equity promotes individual justice in creating professional relationships and the organisational culture of Eco-Insulate. An equitable system offers a diplomatic approach to the way compensation is done depending on the job or contribution of the personnel, thus offering different employees their fair worth (ACAS, 2024). When people feel valued for what they can provide employers with, their loyalty towards such organisations and the morale of the organisation increases.
Equity business performance does not consider tenure and other aspects; it just focuses on rewarding work output. When variable pay is based on team and individual performance levels, fairness in pay increases the focus on performance and sustains a culture that promotes high-performance levels.
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- Within six months, PS&M personnel will be provided with chances for capacity building through partnerships with educational institutions to gain knowledge and skills for implementing category management.
- The PS&M would become more motivated in the long run by providing recognition and benefits for pursuing category management implementation.
- Within a year, an effective change management strategy would be pursued, focusing on tracking the change and spotting change resistance
1.0 Introduction
1.1 ADNOC Organisation Background
In this report, the organisation of focus is Abu Dhabi National Oil Company (ADNOC). This is for understanding the impact of contract terms and conditions on distribution of risk and power with their suppliers. This is an organisation which began its operation in 1971 and today is ranked as the leader in diversified energy group which is owned by Abu Dhabi Government (ADNOC, 2022). The organisation network of holistically integrated business has based their operations across the entire energy value chain assisting their capacity for meeting overall demands of the consistently changing energy markets. For remaining competitive, the organisation has allocated $15 billion for advancing and accelerating lower-carbon solutions, investment in new energy solutions and decarbonisation technologies for lowering their carbon intensity with 25% by 2030 and successfully facilitating their NetZero by 2050 target. The company has a network of fully operational companies that operate throughout the entire hydrocarbon value chain, handling tasks including exploration, production, processing, storing, refinement, and supply in addition to manufacturing a wide range of petrochemical products. I work as a Contract Engineer for ADNOC Offshore, one of the company's divisions. The offshore division of ADNOC is responsible for the delivery and development of oil and gas resources in the waters surrounding Abu Dhabi. With OPEX and CAPEX, ADNOC Offshore spends over 3,000 million dollars annually. The organisation structure is as illustrated in figure 1; Figure 1: ADNOC Organisation Structure1.2 Identified Category Management
The deployment of the iSourcing system, a technology-focused procurement procedure, was chosen as the category management in this study. The need for oil and gas has significantly expanded in the modern era since the Covid-19 epidemic. As a result, ADNOC is forced to spend money on equipment to help them process and refine more oil and gas products. In light of this, the team leader's responsibility is to see that an iSourcing system is in place and can be utilised to purchase the new machines that the company needs to upgrade its operations. Locally in UAE, regionally in the Middle East, and internationally in Western nations, this would apply. This project aims to produce a report outlining the implementation of the change approach. This is done while ensuring the team members and leader have the necessary abilities to carry out the plan successfully. Implementing the new category management strategy is the kind of change being sought. The learner will be the team leader throughout the full category management process since a team has been chosen to oversee the deployment of iSourcing. The practical approach would be utilising various tools and strategies that demonstrate leadership and best practices in change management, along with a focus on the category management data from the ADNOC firm.2.0 Change Management Approach
2.1 Introduction of the Required Change Process
In its Procurement Supply and Management (PS&M) budget, ADNOC had allocated roughly 10 million UAEis before the COVID-19 epidemic. Up to 5,000 domestic and foreign providers are currently utilised in this. Because of the significant financial allocation in PS&M, the ADNOC sourcing method is crucial to their operations in this scenario. Logistics, equipment, and facility administration are all purchased separately by the organisation, all of which fall under the organisation's primary spending categories of computers and technical systems. As a result, they lack a centralised system that would allow all departments to be involved in aiding the procurement procedure (CIPS, 2020). The Burke-Litwin Model (Coruzzi, 2020) can pinpoint the internal and external factors that contributed to the identified change. This model ranks the many change drivers according to their importance and provides evidence of each one in figure 2; Figure 2:Drivers of Change Model When taking into account the ADNOC organisation and indicated change, these elements have the following effects, as stated in Table 1: Table 1:Summary of the Drivers of Change in ADNOC OrganisationFactors of change | Explanation |
External environment | Supply chain networks have been significantly impacted since COVID-19. ADNOC's ability to replenish stock, equipment, and machinery has been affected. Therefore, ADNOC would participate in strategic alliances by including diverse actors and intermediates in the complete value chain through iSourcing |
Individual and oganisational performance | ADNOC's investment in iSourcing would reduce PS&M turnover, everyone's performance, and supply chain network satisfaction. |
Leadership | To ensure iSourcing success, the PS&M will lead and manage efficiently. This inspires and guides other organisations to iSourcing success. |
Mission and strategy | The achievement of ADNOC's aim to provide high-quality oil and gas products would be ensured by the deployment of iSourcing. The justification for this is to quickly and effectively engage highly qualified vendors. |
Organisation culture | Implementing iSourcing would promote the collaborative and teamwork-oriented organisational culture of ADNOC. This is due to the platforms offered by iSourcing that provide suitable options for teamwork and collaboration. |
Task requirements and individual skills | Employees at ADNOC lack the knowledge and skills necessary to deploy iSourcing. This deficit might be filled by offering possibilities for professional advancement. Implementation of the change would be successful. |
Employee motivation | This report's proposal suggests that providing monetary and non-monetary rewards is necessary to encourage people to adopt iSourcing. This is for employing remarkably contemporary systems of practice. |