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Assessment criterion | 2.2 Discuss how business acumen can deliver commercial benefits and manage resilience. |
Competence achieved | Initial ability (scale 0-10) = 5/10
Competence now (scale 0-10) = 8/10 Justification: (with cross-references to evidence)
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Discussion and Justification: | I do understand that business acumen is a key skill for any business to possess and it enables the organization to identify opportunities, manage resources, and stay ahead of the competition. I also gained an understanding that HR professionals are in the unique position of bridging the gap between the Almarai’s goals and its employees’ needs. For example, I learned from Schultz (2021) that HR are responsible for helping to create a culture of innovation and success, while also managing resilience and ensuring commercial benefits are delivered.
As an HR professional, it is important for me to have business acumen in order to deliver commercial benefits and manage resilience. It was recommended that I undertake special HR task to better understand this criteria and attend coaching and mentoring session (see STAR approach and coaching and mentoring session outcome and impact evaluation in Appendix 3 for evidences and summary). In the reading, Kovoor-Misra (2019) it stated that business acumen helps to understand the business’s operations and the competitive environment, in order to make decisions that benefit the organization financially and I also believe the same. For example, I used my business acumen knowledge and understanding to identify and recommend cost-saving measures that can help reduce expenditure. I used business acumen to ensure that HR strategies are aligned with the Almarai’s overall objectives, and that they are designed to benefit the organization in the long-term. I reflected as per my learning that business acumen also helped me to manage resilience (Mendy, 2021). By understanding the Almarai operations, I developed strategies to navigate the business through challenging times. For instance, I used business acumen to identify potential areas of risk and develop contingency plans to mitigate them. This helped Almarai survive and even thrive during difficult periods.
Stakeholder theory is important in HR because it helps organizations identify and understand the needs of all stakeholders and expectations (Hodges, & Crabtree, 2020). One of the example is that it helped me to ensure strategies and policies are aligned with stakeholders’ needs and interests, and that they remain competitive.
Governance and regulation are important to HR in order to ensure that organizations are compliant with laws and regulations and that internal processes and procedures are in line with the laws and regulations (Khandelwal, & Krishna, 2021). It was very good reading and it helped me to be more efficient and contribute higher so Almarai can maintain a good reputation within the industry.
I came to know that CSR is important to HR in order to ensure that organizations are socially responsible and that they are taking the necessary steps to be mindful of the environment, the community, and the society in which they operate as per reading of Das, Taneja, & Arora (2021). This helped to maintain a positive public image and to attract and retain talented employees.
Environmental analysis is important to HR in order to understand the external environment in which the organization operates and to identify potential opportunities and threats (Paillé, 2022) that I already learned and revisited this time. This always helped to devise strategies and policies to capitalize on opportunities and to mitigate risks.
Employee resilience scales are important to HR in order to measure employee resilience in the face of change and to identify areas for improvement (Pradhan, & Kumar, 2021) and I was enlightened to this reading. This helped to take proactive steps to enhance employee resilience and to ensure employees are able to cope with change.
Another interesting learning is about VUCA is important to HR in order to understand the volatile, uncertain, complex, and ambiguous environment in which the organization operates (Lepeley, Morales, Essens, Beutell, & Majluf, 2021). I was anticipated towards possible risks and to devise strategies to manage them effectively.
Finally, business acumen is a critical part of any business’s success. But, the role of HR is just as important. Through expertise in understanding the needs of both Almarai and employees, HR professionals are uniquely positioned to ensure commercial benefits are delivered, while also managing resilience and creating an environment of innovation and success. In this way, I was able to play a vital role in building and sustaining a business’s acumen. |
Post-programme CPD plan | · I will use my knowledge in areas such as analytics and data-driven decision-making for Almarai.
· I will gain skills and knowledge, so I should take advantage of online courses, workshops, and certifications to stay up-to-date on the latest trends and best practices. · I will attend conferences and networking events to gain insights from other HR professionals and to stay up-to-date on current strategies so I can bring best practices in Almarai. |
Appendices and Evidences | Appendix 1: Learning Plan
Appendix 2: Learning journal + CPD Appendix 3: Evidences |
References | 1. Das, J. K., Taneja, S., & Arora, H. (Eds.). (2021). Corporate social responsibility and sustainable development: Strategies, practices and business models. Taylor & Francis.
2. Hodges, J., & Crabtree, M. (2020). Reshaping HR: The Role of HR in Organizational Change. Routledge. 3. Khan, N., & Millner, D. (2020). Introduction to people analytics: A practical guide to data-driven HR. Kogan Page Publishers. 4. Khandelwal, A. K., & Krishna, A. (2021). Strategic Human Capital Management Governance. Transformational Leadership in Banking: Challenges of Governance, Leadership and HR in a Digital and Disruptive World, 101. 5. Kovoor-Misra, S. (2019). Crisis management: Resilience and change. Sage Publications. 6. Lepeley, M. T., Morales, O., Essens, P., Beutell, N. J., & Majluf, N. (Eds.). (2021). Human centered organizational culture: Global dimensions. Routledge. 7. Mendy, J. (2021). Beyond HRM’s Performance Management: Towards Strategic Workforce Resilience. 8. Paillé, P. (2022). Green Human Resource Management Research: Issues, Trends, and Challenges. 9. Pradhan, R. K., & Kumar, U. (Eds.). (2021). Emotion, well-being, and resilience: Theoretical perspectives and practical applications. CRC Press. 10. Schultz, C. M. (2021). The future of HR. In Beyond Human Resources-Research Paths Towards a New Understanding of Workforce Management Within Organizations. IntechOpen. |
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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. |
Since the COVID-19 pandemic, ADNOC has struggled. Flechsig et al. (2022) say delayed service delivery and internal process automation reduce efficiency. Thus, integrating internal procedures, evaluating vendors, and monitoring the sourcing process with iSourcing will benefit ADNOC. A successful and efficient supply chain would result—in situational leadership to handle all everyday situations. Mulyana et al. (2022) define this as improving cost reduction, client satisfaction, and complex and critical processes. The ADNOC organization's automation and flexibility would improve. This involves learning, teamwork, and smart buying. Those fighting against iSourcing face massive supply chain challenges. Yevu et al. (2021) projected network security, system reliability, and persistent unauthorised access difficulties for ADNOC. This would hurt ADNOC's reputation with stakeholders, make persuading clients hard, and alienate supply chain actors. Transformational leaders may remedy this by creating enduring, positive change in their followers and moulding ADNOC PS&M followers into leaders.
2.2 Strengths, Weaknesses, Opportunities, and Threats (SWOT) of the Change Management
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