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Question 1 (1.4)- Good employment relations; achieved in organisations
According to Bulinska-Stangrecka and Bagienska (2021), good employee relations is defined as the employees and employers relations. In employment relations, this is relevant in both personal and collective based workplace relationships. This is through a reflection on an increased personalisation of employment relations due to an increase in popularity of individual employees workplace rights. In supporting this, CIPD (2023) which is a CIPD supported factsheet not that upto 87% of the respondents note relationship with both management and employees as “very good” or “good” with less than 3% noting that it is “poor” or “very poor”. Post COVID-19 pandemic and eventual economic slowdown as contributing to reduced number of hours of work, unemployment and issues with job insecurity, businesses closed, inflation and disrupted supply chain networks. The identified challenges lead to occurrence of new approaches of work in remote working which alter success of the employees relations. In Saudi Aramco for example, employee relations is categorised in the specialist knowledge in CIPD HR professional map under a constant review. This is by making sure the relations with organisation and people is managed in a transparent and following set laws (CIPD, 2022a).
For the people professionals achieving “good employment relations”. The best practice would include;
Working with line managers
The need to work with the line managers by people practice professionals is informed by the fact that workplace conflicts influence employees relations in the level of managers and employees relations (Kaufman et al., 2021). This is informed by the likelihood of conflicts emergence in workplace among different stakeholders. According to CIPD (2023b), the line managers are involved in overseeing individual employees/teams and assessed based on their performance of the employees they are overseeing. For example, working in Saudi Aramco organisation, line managers are involved in support of the wellbeing of their different teams. This is with the line managers being involved in actively monitoring workloads and approaches of working for supporting wellbeing. For people practice professionals, the rationale of this is informed by CIPD (2023c) noting that trends including performance-related pay for instance has increased on the line managers roles in enhancing the employment relations.
The strengths of involving line managers by people practice professionals in enhancing good workplace relations is guided by the fact that they are at heart of majority of workplace conflicts, causing it, experiencing, dealing or coping with consequences (Brandln et al., 2022). The outcome of this is positioning line managers as core in enhancing good employment relations of people management. For example, considering the Saudi Aramco case, as a result of increased conflicts in their operations, line managers are increasingly and closely engaged in organisations operations. This is by transitioning away from a rigid people management policies which contributed to immense employee relations challenges. In line with the Pluralism theory, Ackers (2021) noted that by recognising importance of inevitability of workplace conflicts provides a relevant chance to handle staff grievance. These findings are equally supported by Budd (2020) using Normative Models of HRM identifying line managers as core in policies development shaping and affecting employees behaviours and efforts.
For the challenges, people practice professionals working with the line managers for enhancing “good employment outcomes” contribute to delayering of the organisation operations (Maulana et al., 2022). In Saudi Aramco for example, the implication of this include challenge in establishing those constituting front- and mid-level managers. Also, working with line managers for enhancing good employment relations is contributing to uneven organisation structure and layers particularly in regard to outsourcing and temporary working plans. This is since the employees in Saudi Aramco operate in a client-form arrangement as opposed to immediate employers. This means that it is not all the line managers who execute their functions similarly with the management not requiring a similar form of management process.
In summary, by the line managers and people practice professionals working together, they are in a position of successfully improving employment relationships. This is with the line managers being involved to manage different unpredictable tensions and antagonisms which are majorly ignored by the senior management and employers. In Saudi Aramco, employees are provided with constant support by their line managers, setting appropriate policies and strategies for improving employment relationships.
Workplace Representatives
In CIPD (2021) report, it evidence that having appropriate opportunities for employees expressing their voice is core for harnessing job quality. It is lack of job quality that largely contribute to increased employment relations challenges. In Saudi Aramco case, by leveraging on strategies improving the employees voice, it has been possible for their employees to feel valued, appreciate, recognised hence an increased involvement in the organisation active operations. According to Ip et al. (2020) workplace representatives would be selected by their fellow employee or management appointed. For example, in Saudi Aramco, since Saudi Aramco does not allow trade unions, they work with workplace representatives to receive information from and offer management information. The application of this approach is informed by radical theory Kaufman et al. (2021) which identify the challenges of employment relations to be as a result of existence of a capitalist society with inequalities in place in employment relations and broad society. This is supported in CIPD (2023d) which involve good work index and note workplace representatives as a best practice to complement and reinforce individual voice channels, managing misunderstanding in organisations hence successful employment relations.
The strengths of this model include the capacity for nurturing for appropriate employment relations. In Saudi Aramco for example their workplace representatives play the role of useful sounding board for their management on plans for their organisation. This was the case during COVID-19 where workplace conflicts caused by employees required to go for redundancy and business transfer were released from the organisation. This is supported by Peetz and Pocock (2009) noting that workplace representatives work as advocacy of the employees hence enhancing union power which promote appropriate workplace relations.
For the challenges, failure of the organisation management taking the input of workplace representatives in a serios way would contribute to resentment issues and mistrust. As evidenced in Ročkutė et al. (2018) the mistrust complicates issues leading to challenge in achieving a successful management of employees relations. In Saudi Aramco, with workplace representatives primarily being informal, they are insufficient in regard to encouraging flexibility in world of knowledge changes.
Question 2 (2.4)- Changing nature of work
As defined in Autor (2019), changing nature of work has a direct influence on areas of social, economy, environment, and cultural systems evolving significantly and uneven locally and internationally. The outcome of this include increased inequalities in the modern workplace environment and increase in opportunities to be leveraged on. Post COVID-19 pandemic and the resulting economic slowdown, the changing nature of work has been more prominent. These findings are supported in McKinsey & Company (2021) report
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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. |