(Solution) CIPD Level 7 7HR02 Question 1 (AC 1.1) Analyse one external and one internal factor that is shaping the organisation’s resourcing and talent strategy

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Question 1 (AC 1.1)
Analyse one external and one internal factor that is shaping the organisation’s resourcing and talent strategy. Recommend how this strategy could be improved to respond to these factors.
Question 1 (1,019 Words)
In this section, the external and internal factors which shape the organisation resourcing and talent strategy have been put into account. This is with a recommendation on improvement of the strategy provided.
External and Internal Factors Shaping MOT’s Resourcing and Talent Strategy
External Factor-Technological Advancements
Due to the changes in the transport and logistics industry regarding technological advancements, organisations, like the Ministry of Transport and Logistics Services (MOT), are witnessing changes in the way they have been resourcing and developing talent. As part of Vision 2030, MOT modernises infrastructure and integrates promising technologies such as autonomous vehicles, artificial intelligence, internet of things (IoT) systems and green energy solutions (MOT, 2024). While these technologies can allow for more efficient, more sustainable, and more intelligent logistics operations, the demand for highly skilled professionals who can manage and implement these innovations is critical (Gilch & Sieweke, 2020).
This is a challenge for the external labour market. As industries across the board move towards digital transformation, global competition for talent with AI, big data analytics and smart systems skills is intense (Schneider & Kokshagina, 2021). For MOT, not only does this competition make attracting such talent hard, but it also adds pressure to the organisation to offer competitive compensation packages and plans for long term career growth. Additionally, as explained by Li (2022), there is the need of upskilling the existing workforce on an ongoing basis as the pace of technological change increases. In addition, with MOT’s focus on modernisation of infrastructure, it has to attract not only technology experts but also experts in environmental sustainability as green logistics and carbon reduction targets are important to achieve (MOT, 2024).
To remain relevant, professionals have to follow the latest developments in technology (Padmaja & Mukul, 2021). Consequently, MOT must not only recruit externally but also build up and develop internal capabilities to narrow the gap between the current skill sets of the existing workforce and future skill needs. This factor demands a strategic approach to recruitment, retention and workforce development to maintain competitiveness and meet the mandate of the Ministry.
Internal Factor-Workforce Demographics
The internal challenge with workforce demographics is critical for MOT. The organisation is likely to be employing a lot of senior professionals nearing retirement and many younger employees early in their career. Although having experienced senior staff is valuable when it comes to such strategic initiatives, their impending exit causes the risk of huge knowledge gaps (Banfield et al., 2018). Senior employees have critical knowledge that consists of the organisation’s processes, policies, and long-term projects. According to Klotz et al. (2020), this risks creating big gaps in institutional memory for their potential departure from the workforce. The absence of sufficiently developed knowledge transfer mechanisms when experienced staff depart can result in ongoing operations being disrupted and block the organisation from successfully executing strategic objectives.
At the same time, younger employees are full of energy, bring new perspectives, but are also looking for fast career advancement and interesting cutting–edge projects (Viviani et al., 2021). MOT therefore, if it does not match their expectations by providing the opportunity for employees to grow, innovate and learn will face the consequences of employees becoming disengaged or leaving. Such a scenario creates a retention risk, especially in a competitive job market where companies are looking for skilled professionals. In addition, it is equally important to encourage a culture of collaboration between these groups to ensure proper transfer of knowledge (Lam et al., 2021). If no intentional strategies are implemented, the organisation may have a difficult time keeping institutional memory and project continuity alive in crucial projects. These demographic challenges must be met if MOT’s operational efficiency is to be sustained and broader MOT objectives under Vision 2030 fulfilled.
Recommendations on Improving the Strategy
Introduce Partnerships for Training and Talent Pipelines:/…..
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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. |