Description
Solution
Question 4
High performance work practices (HPWPs) are people management techniques through which employee motivation, productivity and long-term organisational success will be achieved (Mohd Nasurdin et al., 2020). Selective hiring, ongoing skills training and decentralised decision making are key practices under these techniques. Across a number of sectors, it is evident that HPWPs enhance organisational resilience and innovation, as well as employee retention. Nevertheless, the effectiveness of HPWPs is influenced by cultural and resource-based constraints which are not industry specific. This is since there are varying demands and expectations in all sectors and business environment. The best practice is hence to consider the evaluation of all existing approaches for appropriate recommendations.
Role in Boosting Productivity and Innovation
HPWPs have substantially improved employee productivity and spurs innovation, especially in knowledge-intensive sectors. Bhatti et al. (2020), for example, discovered that an increase of 20 percent in productivity was obtained by HPWPs like performance-based incentives and collaborative decisions in technology firms. With HPWPs, these companies get many benefits because they inspire such creativity and autonomy in employees, which is particularly important for problem solving and innovation. Similarly, Kutieshat & Farmanesh (2022) noted that in knowledge-based industries, HPWPs increased creativity by creating a more engaged and experienced workforce capable of handling demanding tasks. However, the effectiveness of HPWP’s in increasing productivity is dependent on the industry in question. In a manufacturing context, for instance, Imran & Atiya (2020) find that the effects of HPWPs on innovation and productivity are limited. Likewise, in industries with rigid operational processes, techniques like employee empowerment or extensive training may not make much of a difference. Such sector-specific variation indicates that HPWPs can bring substantial productivity and innovation benefits, but only if their implementation is tailored towards firms’ areas of core functions and operations dynamics. Adopting these practices may be beneficial in this way as organisations adapt these practices to the particular drivers of productivity in a sector so that the benefits gained through HPWPs can be maximised.
Strengthening Employee Engagement and Retention
Sustaining organisational stability through HWPs plays an important role through engagement and retention of employees. Isimoya et al (2020) reported that organisational implementation of HPWPs had increases in engagement and retention by up to 15%, when such organised career development programme was coupled with individual performance recognition. This is because in such environments, employees were satisfied with their job, committed and they felt a sense of belonging and recognised effort. On the other hand, HPWPs have helped reduce burnout and increase retention rates in healthcare sector though team empowerment and skill development (Memon et al., 2020). Yet the retention benefits of HPWPs may differ among industries with higher turnover, such as retail where job tenures are generally short. While HPWPs offer flexible scheduling and performance-based incentives to improve engagement in retail settings, transient nature of the sector limits its overall long-term effects (Datta et al., 2021). For this reason, HPWPs can play a major part in retention for many industries, even though different industries might require alternative approaches to secure employees for the long-term in sectors characterised with temporary work structures. Overall, HPWPs have strong potential for engagement and retention, but adaptation to context and sector specific sources of support is essential for impact in a range of contexts and sectors.
Increasing Operational Efficiency in Resource-Intensive Industries
In industries where processes generally are resource intensive, HPWPs can contribute to operational efficiency and resulting waste reduction. For example,…..
Please click the following icon to access this project in full
Related Papers
(Solution) 5CO01 AC1.3) Analyse external factors and trends impacting organisations to identify current organisational priorities
(Solution) CIPS Advanced Practitioner Corporate Award (APDP)
- 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. |