Abu Dhabi National Oil Company’s Corporate Change

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Table of Contents

Organisational Profile
Organisational Structure
Change Drivers
Key Stakeholders
Change Initiative Overview
Key Success Factors
Change Initiative Process
Stakeholder Reactions
Evaluation and Assessment
List of References

Organisational Profile

The targeted organisation for this report is the Abu Dhabi National Oil Company (ADNOC). The company is headquartered in Abu Dhabi. The state-owned firm operates in the oil and gas industry (Abu Dhabi National Oil Company 2016). ADNOC is also the largest oil-producing firm in the United Arab Emirates (UAE). Analysts argue that the UAE is one of the nations with large reserves of gas and oil. The company has around 25,000 workers (Abu Dhabi National Oil Company 2016). However, this number is expected to rise in the coming years (Abu Dhabi National Oil Company 2016). The oil company was established in 1971 and has grown to become a leading industrial player.

Organisational Structure

ADNOC has ‘a complex holding company constitution that determines its organisational structure’ (Abu Dhabi National Oil Company 2016, para. 2). This constitution ‘involves equity links with numerous oil enterprises in the West’ (Abu Dhabi National Oil Company 2016, para. 4). The holding company is subdivided into 14 directorates. Each directorate focuses on a specific industry area. The firm’s organisational structure is believed to play a positive role in its success.

The company is led by a CEO whose role is to monitor various business practices. As well, the Chairman of the Supreme Petroleum Council monitors a wide range of decision-making processes. This practice ensures every company in the holding structure succeeds. The current CEO of ADNOC is called Sultan Al Jaber Ahmed. The ‘organisation’s management is therefore answerable to the chairman of the United Arab Emirates Supreme Petroleum Council’ (Abu Dhabi National Oil Company 2016, para. 3). The ‘current chairman is Khalifa Bin Zayed Al Nahyan’ (Abu Dhabi National Oil Company 2016, para. 5). He is also ‘the crown prince of Abu Dhabi’ (Abu Dhabi National Oil Company 2016, para. 6).

*Fig 1: ADNOC’s Organisational Structure.*

The company’s CEO liaises with his or her deputy to make the most appropriate decisions. There is also a Director-General who manages a wide range of business processes in the organisation. Different departmental managers play a significant role in ensuring that the firm achieves its goals (Abu Dhabi National Oil Company 2016). Such managers monitor the performance of different employees and departments.

However, fluid decision-making and leadership strategies are embraced to improve the firm’s performance (Abu Dhabi National Oil Company 2016). Although most of the critical decisions are made by the top-level managers, every employee has a voice in the company (Abu Dhabi National Oil Company 2016). Leadership has been devolved to lower organisational levels to empower more workers (Abu Dhabi National Oil Company 2016). This practice is also done to promote the best outcomes. However, the Chairman of the Supreme Petroleum Council dictates most of the decisions and business strategies are undertaken by the firm.

Change Drivers

The globe is currently wrestling with the problem of climate change. Many industrial players are targeted by different theorists and environmentalists because they are partly responsible for this global problem. Experts believe that ‘oil companies should strengthen their policies in an attempt to reduce their greenhouse gas emissions’ (Victor, Hults & Thurber 2011, p. 28). Many consumers also prefer sustainable goods and services. Governments, researchers, and environmentalists are presenting new ideas that can address the problem of climate change. The wave of climate change is a major external force that dictates the performance of many firms. This fact explains why companies such as ADNOC should embrace the best business practices.

As well, a large number of employees and organisational leaders continue to embrace the benefits of sustainable oil practices. It is agreeable that oil extraction and transportation can cause numerous environmental implications. Both internal and external operating environments support various business changes in an attempt to safeguard the natural environment (Naude, Dickie & Butler 2012). ADNOC should, therefore, reconsider its practices to become the leading extractor and exporter of oil in the world.

Key Stakeholders

The suggested organisational change seeks to introduce new practices that will result in environmental sustainability. The current rate of environmental degradation explains why numerous natural habitats have been destroyed (Malik & Aminu 2011). The rate of degradation has also affected a wide range of biochemical, natural, and weather patterns. This development explains why numerous problems such as global warming, increased sea levels, and climate change continue to affect mankind (Victor et al. 2011). The proposed change will have numerous benefits and eventually transform the lives of many stakeholders.

The suggested change will affect a large number of organisations. To begin with, many consumers of oil and gas will be able to access quality products. Many organisations in different industries will also acquire safe products that will not affect the natural environment. The inclusion of greener technologies in the company will also support the welfare of many employees (Victor et al. 2011). The company will attract more customers and eventually increase its revenues (Dobson 2013). Such revenues can, therefore, be used to reward the targeted workers. Many consumers will also benefit significantly from the practice. For instance, more consumers will be excited to purchase oil products and gases that have been extracted using green technologies (Abu Dhabi National Oil Company 2016). Farmers, fishermen, and botanists will also benefit from the change.

Change Initiative Overview

The recommended change for ADNOC focuses on the benefits of environmentally-sustainable business practices. Such practices include the use of greener technologies, reduction of wastes, recycling, and conservation of the natural environment. The company’s CEO and departmental managers should support the proposed change. The primary purpose of the proposed change is ‘to ensure the firm engages in sustainable business practices that have the potential to safeguard the natural environment for posterity’ (Ulrich & Brockbank 2005, p. 76).

This change should be classified as a Quality Improvement (QI) process. The change will focus on the most appropriate strategies that have the potential to improve the company’s goals (Victor et al. 2011). The QI process will reduce wastes, improve performance, and eventually protect the natural environment (Victor et al. 2011). It will, therefore, be appropriate to ensure every stakeholder is informed about the change to make it successful.

Key Success Factors

The success of this change will be determined by the competencies of the actors involved throughout the implementation process. To begin with, a powerful model for change will ensure every stakeholder is aware of the targeted outcomes (Zoogah 2011). To begin with, Lewin’s Change Model should be used to introduce new practices in the organisation (Banerjee 2007). The first stage of the change is to inform different players, managers, and stakeholders about the aspects associated with the proposed strategy. A competent Change Manager (CM) will also be recruited to implement, monitor, and evaluate the project.

It will also be appropriate to liaise with the Director-General to support the entire change process. The oil company should also be encouraged to offer the required financial assistance (Victor et al. 2011). This practice will support the entire change process. The firm should purchase the relevant resources and embrace the use of modern technologies (Zappala 2004). These practices will ensure the process is successful. The employees should also be sensitised about the major changes anticipated in the company.

Change Initiative Process

The use of a powerful change theory will ensure the process is successful. The most appropriate resources and tools will be used to inform every stakeholder about the targeted objectives. As well, a proper timeline will be needed to monitor the progress of the proposed change. During the process, an evaluation process will be used to monitor the aspects of the change throughout the period (Stoltzfus, Stohl & Seibold 2011). The process will identify the major gaps and achievements before the targeted goals are realised. The timetable will ensure every aspect of the proposed change is executed within the stipulated period. These factors will ensure the planned initiative is implemented successfully within the allocated time.

The use of modern technologies will make the proposed change a reality. For instance, the use of computers will simulate the most appropriate practices that can result in sustainable business practices (Burr 2003). Such technologies can also be used to inform more individuals about the importance of the proposed change. The company can use modernised machines for oil and gas extraction. Such machines will minimise the levels of pollution and eventually make the company more admirable. These aspects will, therefore, be critical towards making the implementation process successful.

Stakeholder Reactions

Many modern scientists argue that ‘business organisations can realise their goals by harnessing new technologies and ideas that have the potential to promote the concept of environmental sustainability’ (Stoltzfus et al. 2011, p. 352). Throughout the change process, oil companies can introduce new technologies to produce clean energy (Saboohi & Sushil 2011). This argument explains why the proposed change will be admired by many stakeholders. It is therefore agreed that the process change will be appreciated by many stakeholders. This is the case because many people are currently embracing the idea of sustainability. This scenario explains why more people and organisations will be ready to support the proposed change.

However, change theorists believe strongly that ‘every new idea will encounter some resistance especially during its implementation phase’ (Harris & Tregidga 2012, p. 241). Some workers will not be pleased with the change because it will transform their schedules, practices, and goals. A powerful training strategy will inform more individuals about the benefits of the proposed practice. The HR department should also be encouraged to facilitate discussions between hierarchies and directorates (Long, Ismail & Amin 2013). This practice will ensure more people are willing to embrace the idea of sustainability. The strategy will ensure more people are ready for the proposed new change.

Some ethical considerations should be taken seriously whenever implementing a new change. For instance, companies should ensure the new change does not affect the welfare of their workers. The workers will also be informed and educated about the benefits of the proposed change. The change should also be implemented following the existing policies and legal frameworks (Harris & Tregidga 2012). The introduction of sustainable practices is also a powerful ethical approach. This is the case because the practice will support the goals of many stakeholders. This new change will make it possible for the Abu Dhabi National Oil Company (ADNOC) to achieve its business goals.

Evaluation and Assessment

Every change process should be carefully evaluated to succeed. The suggested timetable will be a powerful tool for measuring the success of the project. Different supervisors and experts should also be hired to monitor every phase of the project. This approach will ensure more individuals are encouraged to be part of the process and present their opinions (Haugh & Talwar 2010). The proposed change model will also be used to guide the entire process. Throughout the process, every form of the mishap will be addressed to achieve the best outcomes.

The HR department will also be encouraged to support the change. Lee (2010, p. 528) believes strongly that ‘the HR can play a significant role by involving different employees in various workplace practices’. Relevant data will also be collected throughout the period. The gathered information will determine whether the targeted workers are reducing waste, saving energy, recycling, and promoting sustainability (Lee 2010). The gathered data will be used to address every gap experienced in the organisation. The Change Manager (CM) will identify new strategies that can eventually make the Abu Dhabi National Oil Company (ADNOC) successful.

List of References

Abu Dhabi National Oil Company 2016. Web.

Banerjee, B 2007, Corporate Social Responsibility: The Good, the Bad and the Ugly, Edward Elgar, Cheltenham.

Burr, V 2003, Social Constructionism, Routledge, London.

Dobson, R 2013, ‘The theory and practice of people management: a critical review of the British experience’, Journal of Business Management, vol. 7, no. 1, pp. 152-164.

Harris, C & Tregidga, H 2012, ‘HR Managers and Environmental Sustainability: Strategic Leaders or Passive Observers’, The International Journal of Human Resource Management, vol. 23, no. 2, pp. 236-254.

Haugh, H & Talwar, A 2010, ‘How Do Corporations Embed Sustainability Across the Organisation’, Academy of Management Learning and Education, vol. 9, no. 3, pp. 384-396.

Lee, M 2010, ‘Shifting Boundaries: The Role of HRD in a Changing World’, Advances in Developing Human Resources, vol. 12, no. 5, pp. 524-535.

Long, S, Ismail, K & Amin, M 2013, ‘The role of change agent as mediator in the relationship between HR competencies and organisational performance’, International Journal of Human Resource Management, vol. 24, no. 10, pp. 2019-2033.

Malik, N & Aminu, M 2011, ‘The role of human resources in new globalised world’, Interdisciplinary Journal of Contemporary Research in Business, vol. 2, no. 11, pp. 318-330.

Naude, M, Dickie, C & Butler, B 2012, ‘Global Economic Crisis: employee responses and practical implications for organisations’, Organisational Development Journal, vol. 30, no. 4, pp. 9-24.

Saboohi, N & Sushil, J 2011, ‘Revisiting organisational change: exploring the paradox of managing continuity and change’, Journal of Change Management, vol. 11, no. 2, pp. 185-206.

Stoltzfus, K, Stohl, C & Seibold, D 2011, ‘Managing organisational change: paradoxical problems, solutions, and consequences’, Journal of Organisational Change Management, vol. 24, no. 3, pp. 349-367.

Ulrich, D & Brockbank, W 2005, The HR Value Proposition, Harvard Business School Press, Boston.

Victor, D, Hults, D & Thurber, M 2011, Oil and Governance: State-Owned Enterprises and the World Energy Supply, Cambridge University Press, Cambridge.

Zappala, G 2004, ‘Corporate Citizenship and Human Resource Management: A New Tool or a Missed Opportunity?’, Asia Pacific Journal of Human Resources, vol. 42, no. 1, pp. 185-201.

Zoogah, B 2011, ‘The Dynamics of Green HRM Behaviors: A Cognitive Social Information Processing Approach’, Zeitschrift für Personalforschung, vol. 25, no. 2, pp. 117-139.

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