(Solution) CIPD Level 5 5C001: Organisational Performance and Culture in Organisations
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Task Questions
1.1 Organisation structure evaluation
In an organisation, their structure inform how individuals interact and flowing of authority in the entire organisation (CIPD Online, 2021). This is essential evidencing on the relationships in all organisation levels. Further, the flow of instructions is determined by structure in place. According to Cosh et al. (2012), size and sector of operations determine structure in place.
Hierarchical Organisation Structure
This is an example of structure used in Saudi Aramco organisation. The appropriateness of the structure is existence of immense command chains. The chain is from the highest level (leaders) to the low level (staff). In all the hierarchies, there are different management levels. The organisation structure is illustrated in figure below;
Figure 1: Example of Organisation Structure (Saudi Aramco)
An underpinning reason for using hierarchical organisation structure is to ensure successful decision making influencing level of their success (Alqudah et al., 2022). In Saudi Aramco, in both their onshore and offshore oil and gas exploration, information flow is appropriate with successful decisions made.
A second underpinning reason for the structure is success in operations. This lead to the standards improved as part of the organisation structure (Yuvaraja & Ramya, 2019).
For advantages of hierarchical structure, they are;
Increased engagement– Since information and data flow in the entire hierarchy, a two-way interaction is initiated hence an increased inclusion and engagement. The high level engagement increase quality of communication and feedback obtained. There is no bias which prevail in the assigned roles implementation.
Managing all conflicts– The appropriateness of use of hierarchical structure is noted on how likely conflicts are mitigated. In an organisation setting, conflicts affect staff relations. Hence, through employees implementing their roles with success, any misunderstanding is eliminated.
The drawbacks of using this approach are;
Silo Thinking– Hierarchical structure is noted to be rigid and simple in its usability (Forbes, 2013). The outcome of this is siloed thinking. As a result, this type of thinking contribute to having a limited expression of roles and thinking.
Limited inclusion in making decisions– Through application of a successful hierarchical structure, the top management and board of directors make most of decisions. According to Yuvaraja and Ramya (2018), this lead to neglect of different people who are important for decision making.
Matrix Organisation Structure
This is the second type of structure inclusive of various teams collaborating with leadership. An example of an organisation which use the structure is Apple Company as illustrated in the following figure;
Figure 2: Apple Matrix Structure
The underpinning reason for use of matrix organisation structure is to ensure effective making of core organisation decisions (Yang et al., 2021). Further, the structure lead to mitigation of silo thinking to communicate successfully. This is for ensuring employees are supported appropriately to achieve their roles.
Taking into account of advantages, they are;
Flexibility in implementing assigned roles– For all the leaders in different departments (sales, marketing and engineering), leaders are engaged in this matrix. As such, they execute their functions successfully.
Open-based communication process– Through implementation of matrix structure, any challenge in communication is solved. Miscommunications are hence avoided successfully. All engaged stakeholders seamlessly share their views, information and data.
For drawbacks, they are;
Lack of clear management functions– This drawback is as a result of lacking capacity to share information which limit successful organisation practice. This limitation is evident in practice. Further, power dynamics being in place influence communication and engagement success.
Likelihood to overwork– In entities which use the matrix structure, immense input ought to be used in less individuals implementation. The outcome of this is affecting stakeholder relationship and success.
1.2 Connections of strategy with products/services and customers
Organisation strategy include details of the entire phases followed in order to achieve goals and objectives both in short and long-term based practice (Johnson et al. 2020). The organisation strategy impact how resources are used and leveraging on ability to achieve competitive advantage. Saudi Aramco are noted to resource most qualified staff and ensure their induction and career development.
Strategy and Products
The different products which representing in an organisation are linked with provided products. This is with demand prevalent to assess market needs and resources applied to offer the products. Considering Saudi Aramco for instance, operations in oil and gas industry both onshore and offshore is attained to initiate a detailed strategy. The application of technology contribute to a likelihood of sustainability for creating value and improving performance.
Strategy and Services
This has a direct impact to influence a successful provision of service (Valaei et al., 2021). Through the application of Resource Based View Theory, organisation become well positioned in using resources. This is appropriately integrated in delivering entire services hence need to be competitive and dominate organisation operations. Their approach entail input to generating resources noted which are valuable, cannot be imitated, rare, and cannot be substituted.
Strategy and Customers
The link of strategy and customers is evident in an event it is important for achieving immense clients satisfaction. Using the Porter’s 5 Forces external analysis tool, the customers are essential to be considered in terms of their interest for success in their practice (CIPD, 2023). The intention is achieving different goals based on preference. Also, the organisation strategy also entail necessity for prioritising on change in business environment guided by occurrences with economic uncertainties after COVID-19 pandemic.
In summary, strategy developed in an entity could be noted to be vertical/horizontal in terms of its planning. Taking into account what is identified as vertically integrated practice, this is prevalent in an event organisation strategy offer guidance for practice. Conversely, horizontal strategy include organisation operations in same sector and industry.
1.3 External factors/trends impacting organisation
Through a focus on the identified organisation (Saudi Aramco) in their areas of practice, the different factors considered include;
Economy
In a recent report on economy development, approximately 2.80% of global economy is projected to surge in financial year 2022 to 2023 (CNBC, 2023). This represent a surge from 2021-2022 financial year with economy stagnating at approximately 2.50%. In the case of Saudi Arabia (KSA) case, owing to pandemic occurring with economic challenges, these have contributed to economic decrease with expectations of future increase by 2024 by 4.6%.
Priority– Considering the economy factor, priority need to include engaging government in Saudi Arabia for easing their capacity for doing business in their environment (Shehri et al.;, 2023). This is to lower taxes and different expenses incurred in Saudi Aramco. Therefore, resources saving would be essential for recruitment of high-level qualified staff in different job roles.
Social
Today, there has been an increase in Generation Z who are aged an average of 18 years. They include approximately 15% of the overall Saudi population joining the workforce. Further, considering KSA practice, the Millennials comprise of 50% of the entire population. This has an influence on the capacity for recruiting committed and required employees. This is while reducing their age levels.
Priority– The priority due to this factor include prioritising on Saudisation policy for Saudi Aramco in resourcing process being a social-based aspect (Alanezi et al., 2020). This is for ensuring citizens of the country is a priority. With this representing best practice, resourcing process is made through application of modern technologies.
Technology
Due to the growth and demand for using technologies in KSA and also international business environment, the entire revenues growth is capped at 60%. The entire market is expected to grow with an upward of $5 billion. In this regard, Saudi Aramco organisation employees, a cumulative budget is upto $200 million for improving technologies in resourcing qualified staff.
Priority– Considering Saudi Aramco operations, prioritisation is investing in modern robotics and using social media opportunities for promoting resourcing success. The outcome of this is ensuring success to recruit most qualified staff possessing important skill and knowledge.
1.4 Scale of technology
The scale of technology is identified to be due to all jobs being executed by use of modern organisations operations. This is with 80% to 95.0% of all jobs being implemented by use of technology. Further, technology increase has a positive implication in entities through active teamwork and productivity (CIPD, 2022). For instance, as highlighted in the CIPD (2020a) noting technology increase, revenues are boosted with upto 60% of communication with 50% capacity to achieve both short and long term objectives.
For Saudi Aramco organisation, the various technologies used are;
Talent Management Software– This is a technology which is identified as essential in resolving different organisation issues (Pessach et al., 2020). In specific, for Saudi Aramco case, they popularly adopt a software for Talent Management developed in IBM Company success in their practice.
The potential advantages of use of IBM developed software is capacity for improving organisation productivity. Also, the practice of harnessing retention for individuals with essential qualifications, growth and development with employees experience evident. Additionally, getting the software is cost intensive in terms of maintaining and implementing it.
Artificial Intelligence (AI)- As evidenced in Rizky and Ardian (2019), the Artificial Intelligence (AI) is identified to include a process followed to simulate human intelligence strategy through machines specifically computer systems. In recruitment process, different technologies in AI are positioned in ingesting a lot of amounts of data, analysis of their correlation and patterns and their application in prediction of future situations. For the success of AI application, CIPD (2020a) highlight that upto 54% of the organisations save costs and efficiently increase AI to network and IT systems.
For the strengths of using AI, they include improved data oriented decision making which is essential for resourcing, performance management and leadership planning in the recruitment process. Further, using AI, it ensure entire candidates resourcing decisions and career growth is not directly influenced by technology increase. The drawbacks of this include likelihood of facing bias with AI successfully used. Also, there is a dis-link of people practices and judgement and data privacy success. This is specifically the situation in an event data used is discriminatory hence increase in bias in employees recruitment.
2.1 Organisation culture and human behaviour models
Edgar Schein Model
The relevance of model use is guided by the fact or view that an entity culture represent ‘how things are done here’. According to Coghlan (2021) the process entail external business sector captured with entire issues managed. Further, appropriateness of this model is evidencing on various entity characteristics. The positive impact of this is successful goals and targets attainment. In Saudi Aramco case, their organisation culture inclusive of provision of their staff with one uniform, facilitated and appropriate support. The application of this model is in the following areas;
Artifacts and behaviours- For this factor, it entail the tangible factors in a business environment including the workplaces, dressing codes, symbols, rituals and observed behaviours. In Saudi Aramco for instance, they have an open office space layout with collaboration evidencing team-based working and collaboration.
Espoused values- This is inclusive of evident beliefs and norms which are promoted and communicated in an entity. For Saudi Aramco, they ensure a successful provision of exceptional clients services. With lacking of resources or supporting them in prioritising clients needs, Saudi Aramco suffer from misaligned espoused values with daily occurrences.
Basic underlying assumptions– These entail holistically ingrained beliefs and values which are taken for granted and majorly unspoken. It is a critical area of organisation culture and shaping people thoughts, decision making and behaviours. For Saudi Aramco, this is normally influencing staff perceptions and work strategy, impact on team dynamics and organisation performance.
Maslow Hierarchy of Needs- Theory of Human Behaviour
A successful adoption of varying roles in an organisation is informed by level where motivation and satisfaction of all employees are attained (Bear et al., 2022). The staff commitment to execute functions in provision of rewards and supporting operations in business sector. From the findings presented by Maslow Hierarchy of Needs, the factors of the model including psychological, safe, love and belonging, self-actualisation and self-esteem being important. The outcome of this is successful embrace of the theory with staff getting highly committed and motivated to increase roles implementation (Dwivedi, 2021).
In regard to physiological needs for the mode, employees gain a feeling of comfort to work in their business environment while engaging in their private life therefore increasing work-life based balance. Further, safety needs entail factors influencing security of their jobs and hence appropriate health. Love and belongingness entail team work and collaboration for an entity operations. The outcome of this is acquisition of a positive feeling of appreciation and motivation to execute assigned functions. Hence, work-life balance is the results and enhanced with success. Finally, in regard to self-esteem, this require need to implement overall diversity in total rewards which impact best practice of employees commitment and motivated.
2.2 People practices impact organisation culture and behaviour
In line with the findings in CIPD HR Professional Map, people practices include a practice and strategy used in the overall employee lifecycle. In CIPD (2022), this is identified as inclusive of various roles being critical in active organisation operations. The different impacts are;
Positive Impact
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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 Organisation| Factors 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. |