-75%
Solution
Executive Summary
In this assessment, leadership and management in procurement and supply has been evaluated. Through a focus on Occidental of Oman organisation, their leadership and management strategies have been evaluated. The scope of this report include the leadership and management on organisational behaviour, leadership approaches on job satisfaction and sources of power in the organisation it relevance. Further, this assessment has focused on relevance of equality and diversity policies in Occidental of Oman company. There are different tools and techniques which have been used including PESTLE which note that the leadership and management are distinct meanings but interchangeably applied. Also, the models used in analysis evidence the concepts as influencing organisation behaviour. This is with job satisfaction particularly for the Procurement and Supply Management (PS&M) teams.
The findings from desk research and also external publications and the CIPS guidance notes, leadership and management strategies are identified as influencing organisation effectiveness. For Occidental of Oman, they adopt people-centrered leadership and management strategy contrary to task-centered which ensure their leverage on the competitive business sector and market dominance. The stakeholders relevance has also been established for leadership and management practices noted by how power is distributed and exerted for organisation success. Occidental of Oman owing to their appropriate position in the oil and gas in the country, equality and diversity policies are critical for optimum success.
Further, based on this assessment findings, various gaps have been established which entail;
- Coaching and mentoring programs for success in leadership and management
- Integrating situational leadership and management strategy
- Investing on strategic communication
- Initiating a system of improving efficiencies
- Diversity and inclusion integrated as part of the organisation leadership and management process for promoting their operations
Table of Contents
1.1 Organisation Backgrounds; Procurement and Supply Management (PS&M) 3
1.3 Selected Spend Category by Occidental of Oman. 5
2.0 Impact of Leadership and Management on Organisational Behaviour. 6
2.1 Leadership and/or Management in Occidental of Oman. 6
3.0 Impact of leadership Approaches on Job satisfaction. 10
3.1 Explanation of Job Satisfaction. 10
3.2 Leadership approaches impact on Job satisfaction. 11
4.0 Sources of Power with the Orgaisation. 13
5.0 Equality and Diversity Policies in Occidental of Oman. 17
Figure 1:Relevance of Leadership and Management in PS&M… 4
Figure 2:Occidental of Oman Business Portfolio. 5
Figure 3:Occidental of Oman Organisation Structure. 6
Figure 4:RACI Matrix Summary. 8
Figure 5:Organisation Behaviours Impact Diagnosis Model Summary. 9
Figure 6:Nadler-Tushman Congruence Model 10
Figure 7:Occidental of Oman and Employees Satisfaction. 11
Figure 8:Organisation Leadership Grid. 13
Figure 9:Summary of Occidental of Oman Stakeholders. 15
Figure 10:Occidental of Oman Stakeholders Analysis. 16
Figure 11:Sources of Individual and Organisation Power 17
Figure 12:Power/Dependency Matrix Summary (CIPS Notes, 2022) 18
1.0 Introduction
In contemporary business sector, majority of organisations are unsuccessful in their procurement and supply management (PS&M) strategy. This is majorly elicited by lack of a strategic leadership and management process. According to Lăzăroiu et al. (2020), success of PS&M is dependent on effectiveness of organisation structure, systems, process, policy and performance strategies aligned with entity behaviours. Further, Bals et al. (2019) note that leadership and management elicit a direct impact on PS&M areas such as eProcurement systems, green sourcing and improving cost overruns. Further, Mohamed et al. (2020) report focusing on more than 500 top performers internationally working in upward of 40 countries and with a turnover level of $10 trillion generated relevant insights. The report findings noted that through an effective leadership and management, these organisations gains 60% of increased value creation, 50% digital transformation, 35% of increased competitive advantage and 20% of maximised performance. This is since they operate through an effective and appropriate leadership and management system.
Figure 1:Relevance of Leadership and Management in PS&M
1.1 Organisation Backgrounds; Procurement and Supply Management (PS&M)
Occidental of Oman is an oil and gas sector organisation in Oman. In the past years, according to Oxy (2022), the organisation has been involved in development of multiple assets, infrastructural development, expertise and technology to fuel their progress and lives quality improvement internationally. By actively working in their business environment, organisations take part in production and important products for sustainability and improvement of the quality of life globally. Also, the organisation ensure they explore oil and gas wells in Oman and internationally. In figure 2, the different areas of the organisation operations is summarised;
Figure 2:Occidental of Oman Business Portfolio
The Occidental of Oman organisation success in their PS&M can be linked with their success in holistically embracing an effective and holistic leadership and management system (Oxy, 2022). In figure 3 organisation structure, by use of functional organisation structure, they are able to ensure that their different departments work in collaboration to achieve their intended goals.
Figure 3:Occidental of Oman Organisation Structure
1.2 Scope of this research
In this assessment, the focus is developing a business report which evaluate leadership and management approaches in Occidental of Oman. Also, as part of this report evaluation, the leadership and management impact on the organisation behaviour, influence on job satisfaction and sources of power in the organisation and their evaluation successfully has been put into account. At the end, the relevance of equality and diversity policies in Occidental of Oman has similarly been put into account and established.
1.3 Selected Spend Category by Occidental of Oman
In Occidental of Oman Organisation, they have different sub-categories of HSE and chemicals portfolio. As evidenced in Delloitte (2022), the rationale of spending on HSE and Chemicals portfolio is informed by the need to formulate and address and contributing to reasonable applicable reduction of linked accidents. Also, it is used in managing any form of fatalities, losses (time and properties) and the occupational health. Further, for the chemicals, Occidental of Oman sources different chemicals are sourced include Tannins, different lignosulfonate salts and different phosphates and synthetic polymers including sodium poly (styrene sulfonate-co-maleic anhydride) which are appropriately applied. Particularly, for Occidental of Oman, they are involved in procurement of the partially hydrolysed polyacrymide which are similarly applied to drill fluids (King & Durham, 2017). Therefore, through a focus on the noted category of spend, it is important to evaluate the level of leadership and management in the process.
2.0 Impact of Leadership and Management on Organisational Behaviour
Leadership and management practices are noted in modern research as used interchangeably. More importantly in majority of these interpretation, CIPS (2023) define leadership as inclusive of developing an organisation vision and inspiration for the rest to achieve a common vision. According to Purwanto (2020) leadership has a potential of influencing, encouraging and motivating the rest. Management is used in controlling, informing and pursuing tactical strategies.
2.1 Leadership and/or Management in Occidental of Oman
For Occidental of Oman, due to the characteristic defining PS&M, leadership and management is implemented. The rationale of this is that Occidental of Oman operates in both onshore and offshore to ensure that they engage 10,000 companies managing them in their operation in oil and gas sector. This is through an adequate plans, organise and coordinate their entire practices for the projects in onshore and offshore operations. Conversely, leadership for Occidental of Oman plays the responsibility of inspiring, motivating and innovating their operations. By leadership in PS&M, Occidental of Oman has been identified as successfully integrating various practices intended for ensuring success of their leadership systems. As evidenced in Oxy (2022) the organisation has managed to increase their entire oil sales revenue by swelling 30,000 BPD crude oil with 3,500 BPD recovering of condensation from high pressure fluid.
For supporting Occidental of Oman organisation operations, their leaders and managers adopt RACI matrix successfully. In line with (ref), the model is applied to understand and manage different stakeholders in a specific project. The priority of the project is focusing on their expansion in onshore and offshore increasing their targeted customers from the different projects of interest. The RCI Matrix is as shown in figure 4;
Responsibility- At the start of the project implementation, procurement manager and leaders obtain entire appropriate Occidental of Oman resources and installing all their system to harness their onshore and offshore operations.
Accountable- Being a leader in Occidental of Oman, their CEO and board of directors and management assumes an instrumental role in project implementation. The positive implication of this process is success in their active operations in Oman oil and gas sector.
Consulted- Before actively making required decisions, finance teams and innovation managers ensure they offer important information and data for the success in their area of operations by Occidental of Oman.
Informed– Considering Occidental of Oman leadership and management, they are informed on what is expected from them. This is based on employees needs analysis ton understand the input to be made.
Additionally, in regard to their organisational behavior, Purwanto (2020) argue that the leadership and management influence on the extent in which individuals behave I an organisation or how they should not behave. For purpose of evidencing the relevance of leadership and management for Occidental of Oman, PESTLE analysis is applicable. In line with the CIPS Notes 2022, Yin et al. (2019) identify the diagnosis of these factors as illustrated in figure 5;
Figure 5:Organisation Behaviours Impact Diagnosis Model Summary
Therefore, in line with figure 5 findings, impact of organisation behaviour depend on PESTLE analysis factors impact demand and response for systems (people, culture, tasks for formal systems).
Political- in Oman, the political environment is fairly stable despite the frequent conflicts in the Middle East. The stable political environment in the country also pass this to the organisation daily operations.
Economic– In Oman, Macrotrends (2023) report hypothesis that in 2022, 3.09% GDP growth has been recorded which is a 6.47% increment from 2020. For Occidental of Oman, for meeting the existing gap, their PS&M ensure that they embrace appropriate practices to meet the existing demands.
Social- In Oman, their culture has substantially changed impacting on the demand for labour, vacant positions, improved living standards quality and societal growth. In Occidental of Oman, this influence how leadership and management are engaged for success in the uncertain social environment.
Technology– As evidenced in ITL (2023) Oman has initiated the Oman Technology Fund which ensure local organisations develop online auction, marketplace, teaching platforms and more. To leverage on technology development and growth, Occidental of Oman ensure that they invest in effective leadership and management systems.
Environmental- Occidental of Oman senior director makes sure their operations are informed by need to achieve their projected 60% of increase in provision of non-renewable energy to all their customers both locally and international. As a formalised system of operations, this is core for Occidental of Oman operations.
Further, for highlighting the importance of leadership and management in Occidental of Oman, it is relevant using Nadler-Tuchman Congruence Model (see figure 6);
Figure 6:Nadler-Tushman Congruence Model
The relevance of using Nadler- Tushman Congruence Model (Spataro & Perrmann-Graham, 2020), it is necessary identifying issues which impact performance and address of improved performance. In Occidental of Oman, representing the most appropriate strategy, management teams make sure that the set tasks, organisation structure and culture align in collaboration and work in harmony with one another.
Conversely, in Occidental of Oman, leadership ensure inputs are set with an intention of managing the resources effectively with history out into account. The entire business practice is attained highlighted through the aspects of output an entity, groups and people put into account.
Today, in Occidental of Oman, they are popularising the adoption of situational leadership. According to Francisco and Nuqui (2020) this is an appropriate strategy which ensure that performance of all stakeholders in an organisation is assured. Besides, it is important to the leadership of Occidental of Oman need to put systems for improving their staff knowledge and skills acquisition.
3.0 Impact of leadership Approaches on Job satisfaction
3.1 Explanation of Job Satisfaction
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