(Solution) Assessment ID / CIPD_7HR01_24_01 7HR01- Strategic Employment Relations
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Question 1(1.1)- 1099 1098 1035
The employment relations are inclusive of different areas which are essential in the modern world of working (CIPD, 2024). These areas include economies, legal issues, social, psychological and political relations where the employees are able to exercise their capacity and execute functions as assigned by the administration/management (Keller & Kirsch, 2020). This is with the employees being offered with financial and non-financial rewards. The perspectives of employment relations include;
Unitarist
This is a perspective which evidence the employment as a form of relations of members of a group having a common/shared goal(s) (Mishra et al., 2020). Also, BELLA (2023) identify this perspective as anchored on view that workplace conflicts emerge as a result of varying interests. In order to achieve this, organisations are required to be investing on quality-based resourcing strategy, succession planning to embrace fairness and equity achieved. For example, in Riyad Bank, conflicts had emerged as a result of existence of personality difference, ineffective resourcing and miscommunication.
For appropriateness of use of unitarist perspective, Kaufman et al. (2021) identify it as important to be embrace in organisations which operate as significantly tight production target/focus.
Further, Bray et al. (2020) identify organisations competing in low-cost based and involving limitedly skilled employees lacking core knowledge and expectations of expressing the organisation voice could embrace unitarist perspective.
In my organisation Saudi Aramco, unitarist approach is adopted. Similar to Boxall (2021) recommendations, in the verge of conflicts emerging, their resolution is profit-based as opposed to pursuing oil and gas dominance in KSA. The disadvantage of use of unitarist to an organisation include insufficiency in realising and managing power inequality or imbalance by management or employees. The rationale of this is evidenced by BELLA (2023) as the unitarist approach prioritise on different members shared interests and different engaged stakeholders expectations. The importance of the strategy is guided by need of improving compatibility, executing similar goals and single unitary interests under holistic management with entities in harmony and co-existence (Kaufman et al., 2021).
Pluralist
This is identified as viewing the employment as being strategic relations amongst strangers (Ackers, 2021). In contemporary business environment, different people work in groups in the same environment despite possessing different believes and opinion. Therefore, for embracing goo employee relations, the existing complex and immense social constructures of different interests core (Dundon et al., 2023). In Saudi Aramco, the organisation use of pluralistic approach is evidenced by the administration and employees having varying expectations and their functions implementation with varying goals and objectives in place.
For strengths of use of pluralism, Mitchell and Alexandrova (2021) identify it as characterised by highly skilled individuals with immense knowledge and interacting directly with customers hence valuable insights offered despite of having varying views. In Saudi Aramco case, when the disputes emerge/conflicts, positive outcomes are obtained which include newly develop products, offering services and improving customers utmost value.
In regard to Riyad Bank in KSA banking sector, cooperating and employment relations conflicts are informed by necessity for integrating roles to third parties to handle distributive factors. This also include integrating bargaining process, management of faced issues and common challenges impacting them collaboratively. The disadvantages of this entail how the strategy is framed hence not relevant for small organisations owing to face-to-fact engagement for administration and staff. Also, with the various issues management successfully, they can lead to occurrence of an attitude of “them vs us” therefore disputes. Besides, Sepahvand and Bagherzadeh Khodashahri (2021) highlight that employees are well placed in providing valuable insights, increasing engagement and hence increased performance and retention rates. This is as opposed to employees leaving their jobs with competing organisations providing an increase in employee voice opportunities.
Radical
The employment relations is informed on the perception that workplace relations are as opposed to their history (Duggan et al., 2020). Through a focus on capitalist society, inequality recognition in employment relations power and entire society is holistic. The perspective is core since the priority is to increase inequality as they influence organisations competitiveness. The importance of the process is a lot of time being adopted for success in employment relations which could otherwise be employed for promoting organisations performance levels.
For advantages, Caruso and Cini (2020) note the social conflicts as leading to natural results for capitalism. In Saudi Aramco, this is not evident in the organisation as they are appreciating conflicts sources due to their capitalist society not evident in KSA. Also, by developing a relevant platform in conflict management, Riyad Bank organisation make sure they employ relevant employment relations initiate by trade unions for supporting effective management of conflicts. This also note on existence of a significant limitation of the radical perspective due to being inadequate to enhance flexible operations in the significantly changing academic world.
In regard to influence of these perspectives for the work of people professionals include;
Unitarist
As identified previously, this strategy for employment relations is informed by view that organisations operate in collaboration and harmony with all team members having same objectives an interests. Hence, according to Mishra et al. (2020) people professionals work for the benefit of the employees and resolve all conflicts which are disruptive. Also, the people professionals are supposed to improve all the relations with all employees brought together for their general will. According to Caruso and Cini (2020), this is while ensuring development of policies and initiatives for staff engagement, commitment scope and motivation levels.
Pluralistic
The people practice professional roles could entail ensuring collective bargaining is instrumental in employment relations and fostering positive change strategy. According to Ackers (2021), existing research evidence the strategy as achieved by evidencing all tensions for identifying and addressing them in detail. Further, people professionals can work to enhance communication by management and staff. This is meant to evaluate entire points of view and to resolve emerging challenges. In regard to limitations, owing to the interests which vary in place and varying expectations, people professionals cannot use it effective.
Radical
As noted earlier, the radical perspectives in terms of employment relations is guided by people professionals working with employees for maximising profits by balancing the facilitation and rewards issued. According to Duggan et al. (2020), people professionals monopolise employees management and resolving incurred issues in the capitalist environment and staff. Also, Caruso and Cini (2020) note that employees as end user of this employment relations are managed well. This is with people professionals required to ensure they manage overall relations, enrol in right trade unions and negotiate for pay, working hours and environment of working conditions. The outcome of this is people professionals reducing capitalist characteristic of employers hence improving employment relations.
The unitarist perspective considers the organisation as a whole and emphasise that shared goals exist amongst all employees, managers, and other actors within the organisation. The approach is consistent with Saudi Aramco’s goal to maintain uninterrupted operations for its extensive oil and gas network. Its large scale gives the need for a unified goal in order to coordinate effectively and to be efficient at performance outcomes. Unitarist model promotes a cohesive work environment as team focuses on the collective goals, emphasises team than individual agenda and puts organisational interest above individual interest (Kaufman et al., 2020).
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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 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. |
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
Additionally, it is crucial to comprehend the Strengths, Weaknesses , Opportunities, and Threats associated with the present strategy and the new category strategy for the change implementation to succeed. To do this, CIPS (2022) recognizes SWOT analysis as influential in capturing various decisions taken and would aid in guiding and educating category management. Table 3 illustrates the SWOT Analysis; Table 2:SWOT Analysis In conclusion, as shown in Table 1, while the existing strategy has strengths such as giving opportunities for comparison, transferring risks, and extensive evaluation, it is time-consuming and expensive. Using iSourcing makes it feasible to provide chances for risk transfer, pricing comparisons between suppliers, and finding the best items. Furthermore, it ignores sustainability-related aspects essential to contemporary procurement strategies (Hazaea et al., 2022). To equip staff members with the necessary abilities to use the new system, ADNOC must pursue security measures and ongoing capacity development. To handle the interference, a leader must promote the consultative approach in the sourcing process. To continuously acquire new skills and information, relevant L&D plans have been granted.2.3 Process of the Change Management
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(Solution) CIPS ROSHN Syndicate Cohort 1 Effective Negotiation (PIN)
- To carry out a detailed planning in their negotiation process to ensure entire stakeholders are engaged with their interests given a priority
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