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Solution
Executive Summary
In this assessment, an evaluation of leadership and management in the area of procurement and supply management (PS&M). This has been carried out with the focus of XXX organisation operating in United Arab Emirates (UAE) oil and gas sector. Specifically, the areas of interest included the organisation behaviour, job satisfaction and the organisation sources and their relevant in application. Additionally, an evaluation of the relevance of embrace of equality and diversity in context of XXX has been put into consideration. In external environment analysis, the PESTLE model has been adopted to evaluate the differing nature of leadership and management and in distinct context. From the analysis, it is evident that organisation behaviours are directly impacted by the leadership and management strategies and styles adopted. This is with leadership and satisfaction noticeable in a direct correlation. Further, by use of empirical research and provided CIPS model readings, leadership approach has been noted to influence overall employees wellbeing. Owing to XXX organisation area of operation, the best practice in leadership and management would be people centric contrary to being task centric for a leverage in competitive advantage. For stakeholders evaluation for XXX organisation, the Mendelow Matrix model has been adopted. This has been used in identifying on the level of interest and power held by the different stakeholders. The findings indicate that XXX engage all their stakeholders for harnessing diversity and inclusion.
At the end, for success in leadership and management development in PS&M operations, a set of recommendations have been generated and entail;
- Implementation of different capacity development strategies (coaching and mentoring) for facilitating followers in appreciating leadership and management functioning
- Pursuing new leadership styles particularly transformational and situational leadership
- Investing in best communication systems to influence various engaged stakeholders
- Developing an appropriate system intended to promote efficiencies to resolve less challenges
- Diversification of their procurement strategy to integrate modernised systems for all suppliers to be involved in their operations
- Merge various leadership and management development strategies for ensuring leadership and management duplicating their functions
Table of Contents
1.1 Organisation Background. 5
1.2 Explanation of Spend Category. 6
2.0 Leadership and Management Impact on Organisational Behaviour 6
2.1 Leadership and/or Management in XXX Organisation. 7
3.0 Impact of Leadership Approaches on Job Satisfaction. 10
3.1 Job Satisfaction Definition. 10
3.2 Leadership Strategies Impact on Job Satisfaction. 11
4.0 Sources of Power Within the Organisation. 14
4.2 Source of Individual Powers. 17
5.0 Equality and Diversity Policy in Organisations. 18
6.0 Conclusion and Recommendations. 20
Figure 1:Leadership and Management in PS&M… 5
Figure 2:XXX PS&M Structure and role of Leadership and Management 6
Figure 4:Diagnosis of Organisation Behaviour Impacts. 9
Figure 5:Nadler- Tuchman Congruence Theory. 10
Figure 6:XXX organisation Employees Satisfaction Summary. 11
Figure 7:Employee wellbeing of leaders and managers 12
Figure 8:XXX Application of Organisation Leadership Grid. 13
Figure 9:Stakeholders Categories 15
Figure 10:Mendelow Stakeholder Analysis. 16
Figure 11:Individual and Organisation Power Summary. 17
Figure 12:Power/Dependency Matrix. 18
Figure 13:XXX Organisation Equality and Diversity Policy. 19
1.0 Introduction
Today, a significant percentage of organisations fail in successful execution of Procurement and Supply Management (PS&M) due to challenges in successfully integrating leadership and management. To affirm this, Bienhaus and Haddud (2018) highlight organisation structure, systems, process, policies and key performance measures which are antecedents of leadership and management as influencing success in PS&M. The rationale of this is what CIPS (2022) identify the leadership and management as influencing procurement and supply process ranging from newly established systems, green procurement strategies and improving transparency. Therefore, lack thereof of effective leadership and management strategies leads to issues with PS&M as they fail in harnessing an increased inclusion in negotiation. Further, in PWC (2022) report which involved a focus on 500 top-ranked performing entities from different 40 nations having a cumulated revenue of £10 billion. Focusing their chief executives, the rationale of leadership and management is as illustrated in figure 1. These included creation of high-level value at 40%, digital-based transformation (50%), leveraging on competitive advantage (40%) and maximisation of the performance scope (20%).
Figure 1:Leadership and Management in PS&M
Source: PWC (2022)
In line with the provided introduction, an evaluation of leadership and management strategies in XXX PS&M operations. Hence, this report will focus on evaluating the leadership and management, influence on job satisfaction, sources of power in an entity and evaluation. At the end, the relevance of equality and diversification policies are established.
1.1 Organisation Background
XXX is ranked as one of the top oil and gas producers globally. The high-ranking of the organisation is informed by its scope of operation producing upward of 5 million barrels of oil and gas daily and approximately 11 billion Cubic Feet of Natural gas daily. This is with the organisation operating in the overall hydrocarbon value chain. Since 1971, the organisation has been working on promoting the UAE energy resources to achieve the need to attain a consistently changing energy markets and eventually promoting the country growth and transformation. The organisation has consistently operated through a creative thinking, convention challenged and strived to excel in their entire operations. To evidence the importance of leadership and management, the organisation engages upward of 60,000 employees both UAE citizens and also from 100 distinct nationalities representing the entire organisation. With their uniqueness in their operations and multiple skillsets, their employees are appropriately coordinated by leaders and managers in ensuring progression of the organisation successfully.
A successful entity operation in their procurement and supply is informed by the fact that they have appropriately invested in appropriate leadership and management. In figure 2 summary, by embracing a flat organisation structure, an elaborate operation in the organisation is attained. Specifically, considering the occurrences in today COVID-19 pandemic, entities have been in a position of managing a lot of issues due to the success in their leadership and management system;
Figure 2:XXX PS&M Structure and role of Leadership and Management
1.2 Explanation of Spend Category
Post-COVID-19 pandemic, XXX has been investing in modernised technologies and to ensure they are successfully implementing flexible working approaches. Also, as part of their operations, XXX organisation has been ensuring that they come up with new systems which would promote their procurement process. This is with the entire departments being involved in modernisation for a seamless flow in their operations. Specifically, in UAE, Statista (2022) note that the IT in the country forecast to lead to upto 2.2% in GDP growth. It is this trend that XXX intend to pursue by ensuring that they are successful in their operations. In this regard, through a focus on the leadership and management involvement in project. This is found mirroring the entire entity practices and organisation leadership and management.
2.0 Leadership and Management Impact on Organisational Behaviour
In modern business environment, leadership and management concepts are applied in the same contexts. For instance, Ahmed and Philbin (2020) highlight that leadership and development is set as the start vision and to inspire the rest in its attainment. Also, the management is inclusive of the process used to harness transition of this vision to a reality by guiding relevant actions and group behaviours daily. Adopting the CIPS (2022a) definition, leadership is associated with a strategy for influencing, encouraging and motivating the rest. This is while management associated with controlling, informing and implementation of appropriate practices. Additionally, leadership is found embracing the other individuals, two-way based communication, feedbacks and empowered, dictating the representation, control, source of authorisation and adopting the entire strategy. Therefore, for the identified definition, good positioning in organisation is attained with managers operating above the leadership.
2.1 Leadership and/or Management in XXX Organisation
For XXX operations, considering the procurement and supply department operations, leadership and management is attained. For supporting the process, XXX ensure they attain a successful exploration of oil and gas sector to achieve the projected 60% exploration to continue dominating the UAE oil and gas sector and globally. This inform on the need for leadership and management successful adoption and implementation. A successful promotion of plans, organisation and coordinate the practices in their projects implementation. Conversely, for XXX leadership and management, they adopt the most appropriate strategy for inspiring, motivation and innovation. For example, by effectively embracing effective leadership and management in PS&M, there is a successful need for signing with organisations such as Microsoft to supply the systems for IT and their successful operations.
In order to support XXX leadership and management, RACI Matrix tool is applicable. This is defined by CIPS (2022b) as an appropriate strategy to understand and manage different project stakeholders. In this regard, the project involved is its increased venture downstream in Abu Dhabi operation approximately 10,000 oil and gas wells (see figure 3);
Responsibility- In any project that need leadership and management, the PS&M in XXX ensure they note on considerations of sourcing. At the same time, People Practice professionals are mandated to resource staff to execute the project.
Accountable- Considering the XXX organisation, the board and leadership collaborating with board of directors work collaboratively in project adoption. The project positive result is success in crediting the strategy.
Consulted- Before decisions are made, finance and accounting teams and innovativeness teams are involved in project implementation.
Informed- In XXX, their leadership and management are involved in implementing the practice. Also, the entire needs are involved in implementing the practice.
Additionally, considering the organisation behaviour impact, Alheet et al. (2021) identify all leaders and managers as influencing the way people are behaving in their entity since as an entity, it does not behave. In XXX case study organisation, to note the impact of their leadership and management, PESTLE tool is applicable. This is defined by Haslam et al. (2022) as a strategy adopted to diagnose organisation behaviour operations with aspects of consideration summarised in figure 4;
Figure 4:Diagnosis of Organisation Behaviour Impacts
As summarised in figure 4, it is evident that organisation behavior depend on aspects influencing demand and system responses (people, roles, culture and formal system);
Political- The current conflicts in Russia and Ukraine directly impact XXX oil and gas exploration. As evidenced in Arabian Business (2022) the conflicts in Russia and Ukraine had contributed to an increased petrol and diesel prices at 5% of the overall VAT. This is with the increase being to 30 fills in special 95, super 98 and E-Plus-91.
Economic- Considering UAE economy, due to COVID-19 pandemic, Macrotrends (2022) note that the economy had recorded a decline of the economy at 6.63%. Also, the 60% reduced demand for oil and gas international also indicate the negative implication in the organisation operations.
Social- For UAE oil and has sector, there are a set of factors influencing change in social structure. This is found impacting on job opportunity, standards improved and developing communities. Also, XXX procurement and supply leadership promote a high-level investing oil and gas operations.
Technological- KSA is positioned as leading in UAE oil and gas sector. For instance, Internal Business (2021) has identified ADNOC as having invested $127 billion in years 2022 to 2026.
Environmental- Operating in oil and gas sector, XXX ensure that they attain 70% reduction in non-renewable energy adoption which is evident as a policy initiated in UAE. This is in a formal-based strategy with the entity core to implement the process.
Further, leadership and management for XXX adopt the Nadler-Tuchman Congruence Model applicable as illustrated in figure 5;
Figure 5:Nadler- Tuchman Congruence Theory
As evidenced in Sabir (2018), Nadler-Tushman Congruence Model highlighting challenges on performance and areas of improvement. Considering XXX organisation, being the most strategy, leadership and management teams ensuring they are structuring and cultures which fit for collaboration and work in harmony together. Success in this would mean that performance of an entity and attainment of assigned entity goals. For the XXX, leadership and management make sure they are successful in resources application (finances, human, and technical), history of oil and gas investments. The entire practice are attained by success in organisations results, groups and personalised practices.
Today, XXX organisation embrace situational leadership style appropriately. This is similarly attained in the organisation active management. The rationale of this is influencing performance and productivity scope in working environment. As a best practice, managers would be encouraged to embed flexibility in their entire phenomenon. Besides, leadership and management in an entity would have to capitalise on learning and development opportunities for managing gaps of lack of ability to implement their roles.
3.0 Impact of Leadership Approaches on Job Satisfaction
3.1 Job Satisfaction Definition
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