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Solution
Executive Summary
This assessment has focused on evaluating the best practice in achieving a successful leadership and management. In particular, this report has focused on ADNOC offshore company. To achieve this, impact of leadership and management on the organisation behaviour has been evaluated, the impact of leadership approaches for job satisfaction and sources of power in an organisation. Additionally, the relevance of equality and diversity policies in ADNOC offshore organisation has also been evaluated. By application of various tools and techniques such as PESTLE external analysis, this research has hypothesised that for organisations success in their operations, they ought to holistically establish the leadership and management process. For leadership, this has a direct impact on organisation behaviours. Further, by achieving leadership and satisfaction, an organisation success is guaranteed. Through a holistic review of peer sources and reference to CIPS module notes, leadership strategies have been evidenced as impacting overall wellbeing of an entity. Also, through an embrace of task-centred approach in an organisation, this could lead to an organisation failure which is not the case for people-centric approach which is more success. Additionally, the findings obtained by using the Mendelow Matrix highlight the different stakeholders as having distinct power and risks from the leadership and management process. Finally, the finding indicate ADNOC offshore engages multiple expatriates and as such an improved diversity and equality policy. Considering the different findings obtained in this assessment, there are recommendations for ADNOC Offshore improvement of their leadership and management process. These include;
- Pursue a holistic coaching and mentoring process for ensuring followers recognise leadership functions
- Initiate situational leadership approach as opposed to transformational
- Investing in a progressive communication strategy to resolve issues encountered
- Diversifying the organisation iSourcing approach for engaging many suppliers
- Merging different departments for promoting an efficient and eliminating wastage linked with leaders and managers functions duplicated
Table of Contents
1.2 ADNOC offshore organisation Background. 4
2.0 Leadership and Management on Organisational Behaviour 5
2.1 Summary of Leadership and Management of ADNOC Offshore. 5
3.0 Leadership Approaches on Job Satisfaction. 9
3.1 Job Satisfaction Definition. 9
3.2 Leadership Approaches impact on Job Satisfaction. 9
4.0 Power Sources in ADNOC Offshore Organisation. 12
4.1 Mendelow Stakeholders Analysis. 12
4.1 Individual Power Sources. 14
5.0 Equality and Diversity Policies in ADNOC Organisation. 16
6.0 Conclusion and Recommendations. 17
Figure 1:Importance of Leadership and Management in an Organisation. 4
Figure 2:ADNOC Offshore operations. 5
Figure 3:A summary of ADNOC RACI Matrix. 7
Figure 4:Nadler-Tushman Congruence Model 9
Figure 5:Summary of employees wellbeing initiatives. 11
Figure 6:ADNOC Offshore Organisation Leadership Grid. 12
Figure 7:Classification of ADNOC Offshore Stakeholders 14
Figure 8:Mendelow Matrix Stakeholders Analysis. 14
Figure 9:Individual power sources. 15
Figure 10:Power/Dependency Matrix. 17
1.0 Introduction
Today, owing to issues with leadership and management, organisations fail in successfully implementing procurement and supply (PS&M). According to Chopra and Singh (2021), as part of implementing various procurement strategies, it depend on how the organisation structure, systems, process, policies and performance strategies linked with organisation behaviour. The leadership and management support a high-level influence on all factors of procurement and supply from issues with structure development, green-based practice and improving transparency. Hence, for organisations which do not have sustainable leadership and management, they are not effective in promoting sustainable relations and promote an increased interactive level as part of negotiation. In Bals et al. (2019) report, while quoting a past research, it argued that leadershjp and management positively harness the capacity of organisation in increasing their overall value development (60%), creativity (50%), capitalising on competitive advantage (35%) and to maximise high-level performance (45%) (see figure 1);
Figure 1:Importance of Leadership and Management in an Organisation
1.1 Scope of Assessment
The purpose of this assessment is to evaluate the different leadership and management approaches in ADNOC offshore operations. This is in the areas of impact on organisational behaviour, job satisfaction and sources of power within the organisation and their evaluation. At the end, the equality and diversity approaches in ADNOC offshore have also been evaluated.
1.2 ADNOC offshore organisation Background
ADNOC offshore organisation is the largest oil and gas producer in the entire UAE and is mandated with the role of developing, producing and delivering oil and gas resources. As evidenced in ADNOC (2022) this organisation has been in active operations since 1962 with a summary of their products being as illustrated in figure 2;
Figure 2:ADNOC Offshore operations
Currently, ADNOC offshore is identified as one of the world most popular oil and gas product with their output capacity being of upward of 2 million barrels of oil and gas everyday. This is with 3 billion standard cubic feet of gas daily. The large scope of the organisation operations is evidenced by their recent merger of Abu Dhabi Marine Operating Company (ADMA-OPCO) and the Zakum Development Company (ZADC0). Further, the organisation strategically partner with CEPSA, OMV, ENI, ExxonMobil, ONGC/Falcon, INPEX/JODCO and TOTAL which has contributed to capacity of unlocking the enormous value. This is with costs optimised with maximum value extracted from the resources and infrastructure available.
The organisation success is informed by their ability of operating in an appropriate leadership and management system. A case example is in 2009 where the organisation leadership offered a guidance on the development of biodiversity on Zirku Island. The outcome of their conservation efforts involved 99% of corals thriving. This is with an upward of 10,000 mangrove saplings and 549 palm trees and 30 Ghaf trees being constructed under the guidance of leadership and management.
2.0 Leadership and Management on Organisational Behaviour
For different available definitions of leadership and management concepts, both are interchangeably adopted. For instance, Halkias and Neubert (2020) define leadership as leading to developing the first vision and inspiration of the rest to achieve their vision. Nevertheless, management is mandated with role of translating the vision to become a reality by guiding practices and actions of a group daily. Considering the CIPS definition, CIPS (2022) identify the leadership as a practice for influencing, encouraging and motivating the rest. Conversely, management is associated with controlling, information and implementation of practical strategy. Also, leadership encourage all people inclusion, two-way engagement, feedback sourced and empowered, managing representation dictations, control, authorities and the strategy adopted. Therefore, considering the different meanings, it is clear that they are relevant in an entity practice.
2.1 Summary of Leadership and Management of ADNOC Offshore
Considering ADNOC Offshore organisation, due to the characteristic of procurement and supply operations, they pursue holistic leadership and management. In ADNOC Offshore operations, ADNOC (2022a) argue that the organisation operates 21 jack up rigs and 1 barge outfitted with immense specification equipment and capability of drilling 200 feets of water and to depth of 30,000 feet. Hence, for ADNOC management, they make sure that they engage best practice to run the projects and ensure effective implementation of their operations.
Considering ADNOC leadership, their core mandate is inspiring, motivating and innovating their operations. The leadership in their supply and procurement department ensuring it is successful. This is by promoting inspiration, motivation and innovativeness of their operations. For example, by embracing an appropriate leadership and management, the organisation is currently ranked as the most successful in the entire UAE and Middle East. Particularly, after COVID-19 pandemic emerged, the management teams were appropriately positioned to facilitate remote working and management of other issues incurred.
Considering ADNOC Offshore operations, for leadership and management, RACI matrix is applicable. According to Ahmed (2019) the RACI Matrix can be used to understand and manage the organisation leadership and management process implementation. This is as illustrated in figure 3;
Figure 3:A summary of ADNOC RACI Matrix
Responsibility- While starting the project implementation, the engaged project manager is involved in sourcing different materials which are not readily available in ADNOC offshore. Further, apart from the PS&M teams, the HR is engaged to resource responsible staff.
Accountable- For the CEOs and board of directors, their mandate is to successfully adopt the project implementation. This lead to success in the project implementation.
Consulted- Before decisions are made, consulting the legal teams and accountants are involved in processing and consultations on the process of installations.
Informed– The role of top management and leadership in ADNOC Offshore is ensuring an active adoption of their strategy. This is while the process implementation being an active inclusion of all stakeholders.
Additionally, considering how this impact the behaviours, Javed et al. (2019) argued that leadership and/or managers influencing the scope of individuals behaviours in an entity. This is since organisations do not behave in any way. Considering ADNOC Offshore, to highlight the holisticness of their leaders and managers behaviours, PESTLE analysis could be relevant.
2.1.1 PESTLE Analysis
According to CIPD (2021) this tool is used for analysis of external factors influencing an organisation. This is by focusing on politics, economic, sociological, technological, legal and environment.
Political- Due to political differences with some of the Middle East nations, leadership and management in ADNOC offshore, the process of sourcing HVAC (Heat, Ventilation and Air Conditioning) maintenance services has been impacted. As a result, ADNOC offshore has been prompted to adopt a change in communication for engaging with the PS&M teams.
Economic- Owing to the prevalence of COVID-19 pandemic, Reuters (2022) note that the UK economy has significantly shrank with 7%. This has further contributed to a decrease in the demand for oil and gas. For ensuring sustainable safety measures are in place, the organisation is procuring HVAC.
Social- Considering the UAE case, their cultural practices have had an influence on the aspects of available procurement and supply teams, improving living standards and community development. For ADNOC offshore operations, they ensure that they increase their practice in investing on HVAC and harnessing their practices.
Technological- ADNOC leadership and management has prompted the investment in modern technologies. As a result, ADNOC is widely known as the most successful organisation in terms of investing in technology and innovativeness. This has significantly increased int eh current COVID-19 pandemic.
Environmental– For ADNOC, part of their Corporate Social Responsibility (CSR) entail 4environmental protection and development of green economy. This is identified in ADNOC (2022a) as harnessing the provision of advanced green fuels portfolio inclusive of growth of compressed natural gas (CNG) station network and being committed to increase of accessing electric vehicle charging.
Further, for noting the impact of the leadership and management in ADNOC, it is important to use the Nadler-Tuchman Congruence Model (Filipović et al., 2020). The summary of this is as illustrated in figure 4;
Figure 4:Nadler-Tushman Congruence Model
As evidenced in Sabir (2018), the importance of Nadler-Tushman Congruence Model is for evidencing challenges which affect performance and their address to improve performance. In ADNOC offshore operations, leadership and management teams to make sure that their sets are identified, organisation structure and culture which fit collaboration and harmonious working. Attaining the process evidence increased performance and to achieve the identified organisation goals. Leadership and management initiate inputs for the purpose of use of resources (finances, human and technicians), historical background (investments in same projects). The entire business performance is attained highlight on the scope of output. The entire business performance is attained evidenced by organisation output, groups and people.
Today, for ADNOC offshore, situational leadership is attained. This is similarly pursued by the management teams in an entity. According to Saleem et al. (2020), the process is positively impacting on influence performance level and workplace productivity. This is to encourage management in an entity for embrace of flexibility in different emerging situations. The managers are encouraged in an entity for embracing flexibility in varying phenomenon. Besides, it is important for organisation leadership to have their investments on capacity development since it significantly represent disconnection of followers and their functions in an entity.
3.0 Leadership Approaches on Job Satisfaction
3.1 Job Satisfaction Definition
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