Saudi Arabian Mining Company’s Human Resources

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Table of Contents

Purpose
Our Business
The main customers
External factors that affect a company
Organizational structure
The functioning of the organizational structure
Organizational culture
HR activities support the organization’s strategy
HR professionals support line managers and their staff
Works Cited

Purpose

Saudi Arabian Mining Company (Ma’aden) was formed in 1997 with the aim of facilitating the development of mineral resources in Saudi Arabia. Therefore, Ma’aden is involved in the mining business, which entails exploration, development, and production of minerals. Initially, the company focused on gold mining, but it has expanded its scope to cover aluminum, phosphate, and other industrial minerals.

Vision

“To be a world-class minerals enterprise” (“Ma’aden: Saudi Arabian Mining Company” par. 1)

Our mission

“Champion the responsible development of the mining sector as the third pillar of the Saudi economy by maximizing the value of the mineral resources for our stakeholders and adopting best in class practices” (“Ma’aden: Saudi Arabian Mining Company” par. 2).

Our core values

To achieve our mission and realize our vision, Ma’aden has adopted a set of core values, which reinforce a culture that fosters growth and development in all areas of our operations. The core values propel the company towards becoming an excellent enterprise coupled with achieving operational efficiency and sustainable development by considering social and environmental aspects. The core values include

Integrity – We seek to act with integrity by maintaining the highest ethical standards in our interactions with all stakeholders.
Care – Ma’aden promotes sustained care, which entails being fair to its employees, communities, and the environment.
Teamwork – Our success hinges on collaborating with one another and all the involved stakeholders to achieve the set goals.
Ownership – We take personal responsibility coupled with empowering others to achieve quality and ensure progress.

Our Business

As mentioned earlier, Ma’aden initially focused on the mining of gold, but we have widened our scope of operation to include phosphate and aluminum. Besides, the company is in the process of exploring other industrial minerals like magnesite, kaolin, caustic soda, and dichloride ethylene. The following is a breakdown of the company’s businesses

Gold & Base Metals

The mining and exploration of gold and base metals are undertaken through Ma’aden Gold and Base Metals (MGBM), which is a subsidiary of the parent company. This subsidiary oversees six gold mines spread across Saudi Arabia.

Phosphate

This mineral is critical in the production of fertilizers and given the growing global population, food production should be enhanced to meet the surging demand. This understanding prompted Ma’aden to start the production of Diammonium Phosphate (DAP) and Monoammonium Phosphate (MAP). Currently, the phosphate business is run under Ma’aden Phosphate Company (MPC) and Ma’aden Wa’ad Al-Shamal Phosphate Company (MWSPC). Ma’aden owns 70% of the MPC and the remaining 30% belong to Saudi Basic Industries Corporation (SABIC). Ma’aden, Mosaic, and SABIC own 60%, 25%, and 15% of MWSPC respectively.

Aluminum

The aluminum project falls under Ma’aden Aluminum (MA), which is a joint venture between Ma’aden and Alcoa. MA produces and supplies aluminum products to both local and international customers in the packaging, automotive, and construction industries.

Industrial minerals

Ma’aden has initiated different projects for the exploration and mining of different industrial mines including low-grade bauxite and kaolin, caustic soda, and dichloride ethylene.

The main customers

The company’s main customers include local and international companies that deal with its products, which include gold, phosphate, aluminum, and other industrial minerals. Besides, the company sells finished products like DAP and MAP to the local and international agricultural sector. The aluminum subsidiary of the company targets customers in the construction, automotive, and packaging industries.

External factors that affect a company

Political factors

The political environment under which a company function shapes its operations. For instance, the government in a given region of operation may come up with different tax policies, trade tariffs, or incentives that affect how a company operates (Morrison 112). Besides, the political stability in the country or region of operation affects a company’s performance significantly. In the case of Ma’aden, the Saudi Arabian government has been supportive of the company.

Ma’aden was formed through a Royal Decree and currently, the government owns 50% of the company’s shares. In 2004, the cabinet passed the Mineral Investment Law, which facilitated the development of key infrastructures like railway and a port, thus facilitating the transfer of the company’s products to the market (“Ma’aden: Saudi Arabian Mining Company” par. 11). Besides, the political stability in the country has been favorable, which creates an enabling working environment for the company.

Economic factors

These factors involve economic determinants that affect a company’s operations directly or indirectly. Some of these factors include inflation rate, economic growth trends, foreign exchange rates, and interest rates among others (Morrison 119). For instance, a high inflation rate reduces the consumers’ purchasing power, which affects the pricing of goods and services together with revenue returns for the company.

The Saudi Arabian economy has been growing steadily over the years due to the availability of plenty of oil reserves in the country. With unemployment and inflation rates of 5.6% and 2.7% coupled with an annual FDI inflow of $ 8.0 billion, the economy can be said to be doing well (El-Katiri par. 19). Therefore, Ma’aden is likely to thrive under such circumstances.

Technological factors

These factors refer to technological innovations that can affect a company’s operations in different ways (Morrison 120). For instance, the automation of services may increase profitability due to the efficiency and speed of accomplishing tasks. Technological factors are likely to bring positive effects to Ma’aden given its nature of business. For example, technological developments have assisted significantly in the exploration and mining of minerals for Ma’aden.

Environmental factors

Environmental factors play a key role in determining how an organization operates. Some of the environmental factors include geographical location, climate, and global weather patterns and changes among others (Morrison 120). In Ma’aden’s case, geographical location is one of the major challenges facing its operations. For instance, the development of the Central Arabian Gold Region (CAGR) was the main challenge for MGBM due to the remoteness of the area. Additionally, the area lacked a sufficient supply of water, which forced the company to make a 450km pipeline to ensure a steady supply of water. Such challenges slow down the operations of a company, which ultimately leads to reduced revenues.

Organizational structure

Ma’aden has a board of directors, which primarily oversees the overall strategies in place and the direction of the company. Currently, H.E. Eng. Khalid Bin Abdulaziz Al-Falih leads the board, which has nine members all working under a 3-year term. Eng. Khalid bin Saleh Al-Mudaifer is the current President and CEO of the company. Under the president are Senior Vice Presidents, which include Mr. Bruce Kirk, the Senior Vice President for exploration, and Mr. Tom Walpole, the Senior Vice President for Aluminum SBU.

Different vice presidents follow in the hierarchy, including Mr. Khaled bin Salem Al-Rowa, Vice President, Phosphate, Engr. Khalil I. Al-Watban, Vice President, Strategy and Development, Eng. Riyadh bin Sa’ad Al Nassar, Vice President, Project Management and Engineering, Eng. Yahia Mohammed Al-Shangiti Vice President, Gold and Base Metals, and Engr. Khaled S. Alohali Vice President, Aluminum Strategy and Development. The vice presidents act as the general managers for each arm of the company. Mr. Darren Davis is the overall Chief Financial Officer. Under each branch of the company, the vice presidents have individuals working in the human resources and administration, finance, legal affairs, and supply chain among other departments.

The functioning of the organizational structure

Miles and Snow assert that effective “organizational structure facilitates proper working relationships among the various sub-units in an organization to achieve the set objectives” (73). For instance, the chief executive officer (CEO) or the President oversees the day-to-day decision-making process coupled with implementing both long-term and short-term plans to create the shareholders’ value.

In the case of Ma’aden, the President sits in the board of management and communicates with the Senior Vice Presidents and Vice Presidents to ensure that the company is moving in the right direction. On the other side, the human resources manager ensures that the organization recruits and retains the best employees for the execution of the set duties. Besides, HR managers come up with training and development strategies to ensure that the workforce is prepared to function optimally for maximum returns.

The Chief Financial Officer (CFO) manages the financial risks of an organization coupled with financial planning, reporting, and bookkeeping. CFOs ensure the financial health of a company and they report to the CEO directly. On the other hand, the supply chain managers plan and manage the movement of goods and services to the consumers and materials from suppliers. All units in an organization work in concert to achieve the set common goals (Miles and Snow 95).

Organizational culture

Connors and Smith posit that organizational culture is a “system of shared assumptions, values, and beliefs, which governs how people behave in organizations” (131). For instance, in Ma’aden, the organization’s culture is governed by stipulated core values. Employees know that they have to ensure integrity, care, and teamwork in the execution of their duties. At Ma’aden, teamwork forms the core of the company’s operations, as employees understand they have to work in teams to achieve a common goal.

This understanding creates a favorable working environment whereby workers perform optimally by appreciating that they form part of a system, which cannot function without the proper input from the different players. Second, integrity, which is an integral part of Ma’aden’s organizational culture, ensures that employees execute their duties ethically. This aspect prevents corruption and malpractices within the organization, which leads to optimal output.

HR activities support the organization’s strategy

Recruitment and selection

Employees are the engine that propels organizations towards the realizations of the set strategies (Ulrich et al. 216). Therefore, the achievement of an organization’s strategy is subject to the quality and effectiveness of the workforce. The HR department is tasked with the duty of ensuring that the right individuals join the workforce to execute the available tasks. The individuals’ skill sets should match available job positions. Ma’aden hires individuals with the capability and skills to support and foster their operations.

Training and development

Training and development are part of the processes involved in the prosperity and posterity of an organization. The HR department makes sure that the employees undergo continuous training and development to keep abreast of the changing and competitive business environment on top of ensuring optimal performance. Ma’aden has a training and development program for its employees. This aspect ensures that the workforce is prepared to face the challenging work environment in the mining sector, which requires creativity and endurance.

Performance appraisal and remuneration

The HR department ensures that employees are remunerated according to their performance, skills, and experience. Employees get into employment as a way of earning a living, which comes in the form of salaries. To hire and keep the best employees,

“Ma’aden strives to ensure unparalleled job security, a high level of job satisfaction, strong relationships and teamwork, attractive remuneration and other benefits and attractive lifestyle opportunities” (“Ma’aden: Saudi Arabian Mining Company” par. 8).

HR professionals support line managers and their staff

Department staffing

The HR professionals support line managers by ensuring that each department is staffed sufficiently. The HR professionals also advise the line managers on the different skill sets required for a certain job role in a given department.

Conflict resolution

HR professionals are trained on different and effective ways of resolving conflict in the workplace. Therefore, given the inevitability of such conflicts in different departments, HR professionals can help line managers in ensuring healthy working relationships amongst the employees. This aspect fosters teamwork, which leads to optimal performance.

Performance management

Performance is the key to the success of any department within an organization. Therefore, line managers need to monitor and appraise the employees’ performance within their departments. HR professionals come in handy to advise and assist line managers to ensure the maintenance of sound, fair, and consistent performance appraisals within different departments.

Works Cited

Connors, Roger, and Tom Smith. Change the Culture, Change the Game: The Breakthrough Strategy for Energizing Your Organization and Creating Accountability for Results, London: Portfolio Publishing, 2012. Print.

El-Katiri, Laura. “Saudi Arabia’s New Economic Reforms: A Concise Explainer.” Harvard Business Review 2016. Web.

Ma’aden: Saudi Arabian Mining Company. 2016. Web.

Miles, Raymond, and Charles Snow. Organizational Strategy, Structure, and Process, Stanford: Stanford University Press, 2003. Print.

Morrison, Mike. Strategic Business Diagnostic Tools – Theory and Practice, Durham: HLS Publishing, 2013. Print.

Ulrich, Dave, Jon Younger, Wayne Brockbank, and Mike Ulrich. HR from the Outside In: Six Competencies for the Future of Human Resources, New York: McGraw-Hill, 2012. Print.

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