Integrated Management Project Report: Daleel Petroleum

Executive Summary

The main purpose of this report is to categorize the problems predominant in Daleel Petroleum, one of the largest Oil producing companies in Oman, and propose recommendations for the problems utilizing diverse problem-solving approaches. The report consists of two major sections. Part 1 of the report provides detailed analysis of the current strategic position of Daleel Petroleum and the predominant problems within the organization, in order to provide the possible solutions. Founded in the year 2002 as a mutual project between Mezoon Petrogas and Mezoon Petrogas, the company has been working proficiently to cultivate growth and development in the industry of oil and gas. However, the analysis proposed that the major problem faced currently by Daleel Petroleum is the motivational issues of employees in terms of leadership and human resource practices. The fishbone diagram provided an estimation of fundamental issues by the governing bodies at the organization, which involved organizational culture, working environment, training and development, and recruitment procedures. Subsequently, Six Sigma approach was utilized with its DMAIC tool whereby the problem of employee motivation was defined measured and analysed. Based on the analysis, strategies for eliminating and controlling the problem were suggested.

Take help for your assignment

Whenever you are in a need of help for your assignment, essay or report, we are here to assist you

The report has proposed various recommendations to solve the problem including the structural and strategic improvement in the human resource practices including training and development, promoting diversity, feedback mechanism, and improving leadership. An action plan has been designed to provide estimation of the possible timeline for the execution of the proposed recommendations at Daleel Petroleum.

Part 2 of the report incorporate a detailed review of the literature which is used in part 1. The literature review incorporates strengths as well as the weaknesses of the problem-solving approach including fishbone diagram, six-sigma approach, Organizational Change and Culture, Strategic Human Resource Management, leadership and Training and Development. Lastly, collaborative conclusion has been given to concise the results of the report.

PART 1

Introduction

Background

Oil is known as the main driving force for Oman’s economy. By taking due considerations of its geographical location, Oman purposefully developed oil refineries and storage complex to position itself in the global oil and gas industry strategically. By taking advantage of the geographical position, the trend to develop oil refineries and advanced storage complex has grown among the major players of Oman. With the widespread globalization approach, the government of Oman began to encourage the private sector in the market. Consequently, the trends advanced to appreciate economic diversification in the country, including methods in the hydrocarbon production (Oxford Business Group, 2017).

Daleel Petroleum is an oil production and exploring company which has observed a consistent growth over time and has recorded increased profit ratios (Ashar et al., 2013). Founded in the year 2002 as a mutual project between Mezoon Petrogas BVI (a subdivision of China National Petroleum Corporation) and Mezoon Petrogas SAO (a subdivision of MB holding), the company has been working proficiently to cultivate growth and development (Ashar et al., 2013). The essential operation of the business is the production of hydrocarbon fluids and improvisation of future reservoirs, which is a significant contribution to the socio-economic development of the region.

Daleel Petroleum is headquartered in Muscat, the capital of the Oman Sultanate, and the processes are carried out from Dhahira Region, which is about 450km away from the city (Daleel Petroleum, 2020). The company implements international standards in its operation for the satisfaction of both its ethical and commercial requirements. In 2017, the company approached its highest production level of 49,309 barrels of crude oil daily (Daleel Petroleum, 2020). Additionally, the gas output has been enhanced to 12 million standard cubic feet per day after the utilization of an additional gas train in 2016 (Daleel Petroleum, 2020). The company’s mission is to develop gas and oil resources in Oman with the help of safe, efficient and responsible strategies to maximize the stakeholder value. The vision statement outlines maximizing the potential of the company’s assets and approaches new developments while working on a positive performance record. The human resources and marketing departments work efficiently to fulfil the objectives and aims, following better opportunities (Daleel Petroleum, 2020). Developing prompt business strategies and appropriate alliances with additional petrochemical associations throughout the world is also an important aspect (Daleel Petroleum, 2020).

Hence, with the widespread importance of growing non-oil sector, Oman’s oil industry assists modern and expansive infrastructure. Consequently, the pattern of decreasing oil prices has pushed several companies to increase efficiency efforts and reduce cost directed to reinvented strategic operations in the oil industry (Figgins, Lansdell, & Taqi, 2018). It implies that the new strategic objectives of Oman’s Oil and Gas industry have enforced competitive players in the industry to incorporate efficiency-related practices and reduce cost, which is critical as well as challenging to thrive.

Objectives of the report

The purpose of this report is to carry out a detailed analysis of the prevailing issues that Daleel Petroleum is facing. It follows three main objectives:

  • To elaborate the challenges and issues present in the organizational and management functions of Daleel Petroleum for highlighting the variable problems it can have in the future.
  • To assess the influence of Daleel Petroleum’s issues on multiple business functionalities including people, strategy, marketing, financial aspects, project management and operations management.
  • To discuss a possible solution for Daleel Petroleum’s issues with the help of multiple theoretical frameworks such as SWOT analysis, Six Sigma Approach, and Fishbone Diagram as a problem-solving technique.

Problem Statement

Daleel Petroleum is one of the leading oil and gas organizations that are working across the globe with exceptional strategies and work procedures, taking into consideration the significance of its human resource management (Daleel Petroleum, 2020). However, at present, the organization is presented with multiple motivational issues among employees. As the business is based in Oman, there is a lack of diversity, increased differences in social status, and an unequal involvement in professional attributes (Bandara, 2014). Employees that are in the minority are treated based on the difference of their language and cultural norms; poor and working-class residents are hired on labour class. These issues have considerably decreased the morale and focus of employees, making it difficult for them to feel appreciated or valued. As a result, the performance of employees and the organization overall is being hindered or limited (Bandara, 2014). A significant challenge is an impartial approach of treating employees by different governing structures at the organization. Professionals that are hired on managerial positions are incapable of keeping a balance in the management of operations among the lower-level employees or disseminate compensations and rewards in a balanced manner, creating a significant population divide. The organization requires a system for professional analysis and consistent communication within the management of individuals based on the current situation, which needs timely resolution and improvisation.

Analysis of the Problem

For all organizations, issue resolution and evaluation techniques are required for succesfuls and constructive outcomes. To remove various challenges from Daleel Petroleum’s human resource and employee management systems, three essential methods of problem identification and problem-solving have been applied; these involve SWOT analysis, fishbone diagram and six-sigma approach.

SWOT Analysis

Strengths

Daleel Petroleum has been capable of dominating the oil industry of Oman since its development, and this has provided a competitive advantage to the organization to operate internationally as well. It also has an exceptional and superior performance in the energy sector due to networking with brands such as AMOCO, BP and additional domestic oil companies (Bowra et al., 2012). The business objectives allow the company to create collective operational distinction effectively in different regions.

Weaknesses

Safety issues and inappropriate management are among the essential weaknesses of the organization (Bowra et al., 2012). Fluctuations in the oil prices in Oman and additional regions have influenced the organization negatively. Price is another element which is considered by consumers for Daleel Petroleum. The employees of the organization are not motivated towards the operations and functions. Due to the lack of diversity and change development, the employees have different behavioural responses and work ethics. Additionally, the demotivated staff has added financial cost for the form in the form of worsen on-job performance and conflicts.

Opportunities

Daleel Petroleum is one of the most prominent oil corporations of the world. The organization can become involved in alternative energy techniques with the implementation of an effective plan (Bowra et al., 2012). It can also provide investments in research and development to maintain environment-friendly techniques along with alternative energy production methods; these involve wind, solar, and hydrogen. This may decrease the risk of a decrease in oil production (Bowra et al., 2012). Additional opportunities include locating new oil wells; therefore, the establishment of an enhanced supply of crude oil, the market expansion for oil products, and an increase in prices can provide better opportunities for Daleel Petroleum.

Threats

Daleel Petroleum is affected by external threats. The main threats include environmental and legal stressors from advocating organizations, which in turn increase the operational costs (Bowra et al., 2012). Other risks include regional political instabilities, environmental protection systems, competition from competitors, and an increase in basic expenses.

Fishbone Diagram

A proficient framework in the form of the fishbone diagram was introduced by Kaoru Ishikawa, which is useful for identifying the causes and impacts of different factors (Coccia, 2018). According to the literature, the diagram helps with the identification of the background, which is associated with the problem in a simplified and arranged manner (Luo et al., 2007). It is feasible to develop when an organization has more than two fundamental reasons for a specific issue. Daleel Petroleum is presented with a significant problem, which is outlined with the help of the fishbone diagram in Figure 1. Daleel petroleum has multiple problems which are associated with the motivational aspects of employees due to which all of the conditions may be explained and elaborated in a useful manner.

Working Environment

Recruitment Procedures

Organizational culture

Training and Development

Motivational Issues among Employees

Not flexible enough

Lack of diversity

No focus on retention

No training methods or campaigns

Lack of technology use

Lack of regulations and policies

Repetition and inconsistency

Ineffective hierarchy and management of employees

Absence of organizational change

Lack of structured procedures

Figure 1: Fishbone Analysis for Daleel Petroleum (Coccia, 2018)

The above-mentioned framework reveals that there are four significant reasons for motivational issues among employees for the organisations; working environment, recruitment procedures, training and development and organisational culture. These reasons are further categorised to identify the possible challenges and derive suitable explanations. These challenges are considered significant and important enough because of the lack of higher administration in these domains can be problematic for the business operations and profits of the organisation (Ilie and Ciocoiu, 2010). It is determined that two of the major causes of motivational issues in Daleel Petroleum’s employees are organisational culture and working environment. Because these elements have been highlighted, there is a need for discovering and integrating a possible solution, which is possible with the help of a standard strategy of Six Sigma Approach.

Six Sigma

Six-Sigma is a statistics-oriented, well-developed, data-linked approach. It is a methodology which takes into consideration continuous improvement for the elimination of barriers and limitations in a product, service, or procedure of an organization (Manville et al., 2012). Being identified as a useful management approach, it presents techniques of enhancing business values and functional mechanisms (Dow et al., 2010). According to the explanations provided in the literature, the approach is applied for the transformation of business inaccuracies and operational errors along with the production of useful outcomes (Manville et al., 2012). With the help of five steps that are connected with the approach, an incorporation of expanded or modified strategy is likely to be derived for Daleel Petroleum.

Define

When a problem is identified with particular information and causes, it becomes possible for an organization to resolve it in the most suitable manner (Manville et al., 2012). The essential challenge of Daleel Petroleum is motivational issues among employees due to increased differences in social statuses, decreased diversity and lack of involvement (Manville et al., 2012). These problems have resulted in decreased morale of employees, making them feel like they are not a part of the team, hindering the workforce potential as well as organizational performance. According to the fishbone diagram, the root cause of this issue is the working environment which does not focus on the retention, hiring employees from different cultural backgrounds, and flexibility in terms of work-life balance (Manville et al., 2012). The employees are stressed and burdened due to the working conditions and transactional leadership style. The issue further escalates with the problems in organizational culture and recruitment procedures.

Measure

Once the problem is known, its measurement and exploration are required. As the issue of employee motivation is qualitative in nature, the sub-categories of causes are taken into account for the measurement of possible results. With the help of a detailed analysis, it is feasible to note that the authorities at Daleel Petroleum are incapable of providing suitable rewards and compensation to the employees (Manville et al., 2012). Moreover, the human resource department does not have a structured protocol in place to hire people from different cultural backgrounds; they follow a repetitive procedure to find employees to fill up the job positions. Also, there is no thorough training or workshop sessions arranged for employees which further lead to professional consequences.

Analyse

With the measurement of sub-categories, suitable information may be collected and assessed. At this point in the Six Sigma Approach, the authoritative personnel can determine if the issue has a considerable influence on the organizational performance and motivation of employees. The impact of Daleel Petroleum’s problems on its business aspects are explained as follows:

Impact on People

Motivational issues among employees can be consequential and negative enough, particularly for timely submissions and profit generation. According to the information provided in the literature (Prusty and Tanna, 2012), it is essential to have a group of individuals that are focused, determined and motivated while working towards a common goal (Prusty and Tanna, 2012). Motivational issues can result in poor communication, limit approaches of diversity, decrease levels of engagement and diminish overall productivity (Prusty and Tanna, 2012). It also has impacts on how the consumers perceive an organization because if the employees are motivated and focused, they are likely to captivate and approach consumers in an increasing manner as well.

Recommendations

The management of Daleel Petroleum can improvise the human resource management structure to find out why employees are demotivated and reluctant in the first place. Secondly, providing training and development for the professional responsibilities will have beneficial results. Following the rules of transformational leaderships is also important to increase the morale of the employees. The administrators will communicate with the employees effectively and develop a feedback system to gain insight and information regarding any challenges or issues the employees may have.

Impact on Financial aspects

The major challenge for Daleel Petroleum is the ineffective organizational culture; there is an imbalanced dispersal of rewards and compensations. For financial aspects, this is an essential component because the revenues generated by an organization are closely linked with the focus and contentment of its employees (Prusty and Tanna, 2012). If the individuals are psychologically fulfilled and appreciated for the hard work and dedication, they are likely to support the organization in a proficient manner (Prusty and Tanna, 2012). According to the self-efficacy theory, several beliefs and attitudes are represented by individuals in carrying out different tasks to approach specific purposes.

Recommendations

For this reason, Daleel Petroleum should design a merit-based procedure for the selection of employees which should be rewarded, promoted or compensated. This process will be introduced and controlled with the human resource and finance department in collaboration. The organization would not be able to increase the motivation levels but also gain revenues from product optimization as well.

Impact on Operations Management

Operations management of an organization involves implementations of business mechanisms for the development of positive outcomes and increments in the professionalism and efficacy levels. According to the explanations provided by Alkhars et al (2019), operation executives and managers are likely to involve in discriminative actions and biases in distributing rewards, compensations and promotions, which may result in a decreased motivation level.

Recommendations

Daleel Petroleum works suitably in the oil and gas sector to manufacture products that have a higher quality; it aims to support its employees with the best opportunities and professional attributes. Therefore, its operations need a transparent system for the distribution of decision making and selecting individuals to be promoted and compensated. The operations in this manner will become additionally professional and the workforce competitive enough. With a consistent inclusion in a diverse population, the organization will gain back its strength. Additionally, measures like transparency and healthy competition motivates employees and foster creativity and innovation within the organization.

Impact on Project Management

Change management is a concept which is consistently used to provide information on the group transformation, individuals, collective ideas and the organizational strategies (Prusty and Tanna, 2012). In the domain of project management, the term may be significant enough for corporate decision making, referring to the procedures of changing vision and transforming culture and procedures to meet the required objectives.

Recommendations

Hiring a diverse group of individuals can be extremely beneficial for Daleel Petroleum. This will bring multiple possibilities for the company in terms of business strategies and techniques which are to be followed. Employees would become more accepting and understanding of one another as they will learn to communicate and integrate professional responsibilities. The organization can implement the interview and testing system to select future employees for change in an optimized manner. This testing system will be based on personal and professional attributes, so the employees that are positively focused and diligent will be a part of the organization.

Impact on Marketing

The issue of motivation among employees has a strong influence on the advertising and marketing aspects of an organization. Since employees are demotivated and not focused enough, they cannot reason, assess, recall or improvise the processes, often causing biasness of preferences and beliefs. Demotivated employees cannot think creatively or give out a positive image to the consumers, which are negatively associated with brand perception and brand image (Salah et al., 2010).

Recommendations

If the employees at Daleel Petroleum are not motivated enough due to the preferential treatment of managers and higher authorities, it will considerably influence the organizational outlook. Moreover, to improvise the consumer facilitation department, it is essential to have people hired from a diverse background (Smith and Fagelson, 2011). Therefore, implementing the solution will have positive approaches for Daleel Petroleum. The organization would be able to advertise its products and services with the help of a competent workforce, considering safe and sufficient resources of gas and oil in Oman.

Improve

Over time, it is vital to realise that the requirements and needs of employees are changing continuously and that fulfilling these constituents can be beneficial enough for organisational outcomes and profitability (Smith and Desimone, 2003). The improvements must assist employees in expressing their viewpoints and become focused on their responsibilities and tasks (Usmani and Jamal, 2013). To solve Daleel Petroleum’s issues, it is recommended to employ human resource experts and leaders that follow transformational style, spend on training expenses and promote an organisational culture that is diverse and free from social or ethical discrimination.

Control

It is imperative to establish control of the changes that have been identified with the help of this detailed analysis (Vakola, 2014). A feedback and survey system are going to help ensure that all the changes and necessary enhancements continue to be implemented and that the employees are facilitated and supported at all times.

PART 2

Critical Literature Review

The aim of this section is to critically review the literature regarding the tools, frameworks and theories mentioned in the part 1 of the assignment. In view of the critical analysis, this section will explore the strengths and weaknesses of the models and illustrate the theoretical backgrounds of the recommendations proposed in the section one.

Fishbone Diagram

Fishbone diagram is known as the cause-and-effect diagram or Ishikawa diagram. It is a graphical procedure to represent numerous grounds of a particular phenomenon or an event (Realyvásquez-Vargas et al., 2020). Particularly when several problems or obstacles are linked and causing trouble to the specific organizational settings, the fishbone diagram helps underline all the possible causes of the particular issue (Luca et al., 2018). So, the Ishikawa diagram is a graphical form to represent the source of the problem.

The in-depth analysis of the Ishikawa literature describes that the fishbone diagram assists in visualizing and categorizing a problem with its root causes and is known among the seven main quality management tools. The head of the fishbone diagram categorizes the problem under consideration. However, the fish bones represent arrows linked to the spine that mentions the underlying causes to the problem. Hence, the arrows are taken as causal relationships. These sources incorporate factors like environment, equipment/machinery, measurements, workforce, and work methods. Luca et al. (2018) found that the result or output of a process can always be ascribed to multiple factors. They further asserted that resolving complex problems within an organization is challenging, so utilization of structured tool allows presenting information systematically and simply that helps to examine it in detail when required.

Strengths: The graphical representation through the fishbone diagram provides an inclusive theoretical framework to analyze, highlight, and classify the source of issues. It also provides a unique way to analyze, explore, and identify the point of intervention for the management for suggesting a way out of the problem (Realyvásquez-Vargas et al., 2020). Secondly, the expansion of the fishbone diagram in an extensive form reaching the root cause of the problem gave strength to this quality management tool of analyzing all of the factors linked to the problem (Suárez-Barraza & Rodríguez-González, 2019). Thirdly, the Ishikawa diagrammatical analysis fosters teamwork in the process of problem-solving. It also enhances the involvement of team members in the creation and analysis of organization dynamics (Suárez-Barraza & Rodríguez-González, 2019). As per Luca et al. (2018), this diagram permits to create quality control from the domain of the process. In such a case, the quality control workforce takeovers the process and recognize the inconsistency and eliminate the variability. Whenever the nonconformity or problem of quality characteristics of the process or a product is detected, it is imperative to list all the likely causes of the variability. Hence, the Ishikawa diagram can be utilized as a standard for resource allocation and undergoing the essential investment to resolve the problem under consideration.

Weaknesses: The Ishikawa approach to highlight the root cause of the problem is limited in several ways. Firstly, the analysis is limited to one output variable at a given time (Realyvásquez-Vargas et al., 2020). Secondly, some teams find it hard to work backwards to the right side from the problem and to highlight every minute case of the given problem, particularly when the problem possesses multiple levels of causations. Thirdly, the Ishikawa diagram is tough to be generated on the computer (Wilson et al., 2013). In terms of analytical techniques, the Ishikawa diagram put multiple causes under the umbrella of the same effect without having comprehensive knowledge of the investigator. Lastly, the investigator might assign diverse causes to the same problem (Raj, 2011).

Six Sigma

Six Sigma approach, popularly known as the lean method, is widely utilized by organizations that are concerned about the productivity and quality of their product or services. Six Sigma is the combination of management techniques which aim to improvise the business processes by reducing the probability of defect or error (Raj, 2011) In view of globalization, competition has fostered organizations to consider various environmental factors that affect the production (Parmar & Desai, 2019). Correspondingly, organizations have begun to incorporate employee-related factors to support a healthier work environment (Sreedharan et al., 2018). It implies that to thrive in a global competitive environment, it is imperative for the organizations to work for quality strategies as well as to remove harmful environmental effects.

The use of the Six Sigma approach contains numerous benefits for the problem solver. It allows identifying the appropriate tool to utilize in the process of problem-solving and highlight the place of the usage of the particular tool during the process (Parmar & Desai, 2019). The main purpose of Six Sigma is to attain product quality by undergoing process improvement and removing the defects source causes. Six Sigma approach integrates the process and human elements for problem-solving technique in the organization (Parmar & Desai, 2019). Raj (2011) highlighted two critical success factors for the implementation of Six Sigma, i.e. management participation and involvement.

Six Sigma works on the principle of continuous improvement aimed at efficient utilization of resources and reduction of wastes which leads to financial gains and enhanced customer satisfaction (Realyvásquez-Vargas et al., 2020). Six Sigma approach represents a business policy which aims to identify and eliminate the reason for questioning steps within a process by directing on outputs that are satisfactory for the customers. Statistically, Six-Sigma reduces process variation by a systematic approach of “Define-Measure-Analyze-Improve-Control” (Luca et al., 2018).

Strengths: The achievement of Six Sigma is to enhance the quality of the process or product by removing the causes and sources of defects. Six Sigma assist in bringing standardization to business processes by reducing the chances of defects or errors. It also contributes to certifying compliance which is applicable throughout the particular industry (Parmar & Desai, 2019). The quality management approach of six sigma assists in the participation and involvement of management which linked this strategic management tool with the business and customers (Walter & Paladini, 2019). Hence, Six Sigma is considered a widely dynamic method to improve business processes and to achieve customer satisfaction at large.

Weaknesses: Six Sigma is the continuous improvement strategy which demands managerial awareness of continuous up-gradation, which in other case brings error and faults. However, the support and commitment of top management are critical for the proper functioning of the quality-driven strategy and culture. It implies that the management should realize the benefits, strength, and needs of continuous improvement strategy like Six Sigma (Sreedharan et al., 2018). Also, the six-sigma approach highly depends on the conducive organizational culture involving education and training, encouraging diversity and creativity, performance and reward programs (Sreedharan et al., 2018). Thus, to implement such a strategy, the organizational culture should be in-line with the quality-driven approach in all other aspects of the business like employee management, production, customer care approach etc.

Employee Motivation

Employee motivation is based on the purpose to enforce employees to excise greater effort in their work to fulfil the desired needs of the organization (Rakhi & Kumar, 2015). Motivation is a process that directs, energizes, arouses, and sustains the performance and behavior of individuals. Motivated employees work passionately for the organization that largely influence the efficiency of the institute (Rusu & Avasilcai, 2015). So, by identifying the characteristics of the working environment and needs of the employees, management can strive towards creating a motivating workplace. At the same time, by developing motivation factors within a company, organizational success can be sustained.

Stanojeska et al. (2020) briefed employee motivation as relative management and business construct, which is crucial for the success of a business. The particular research highlights four factors that are linked to employee motivation, including dealing with employees’ behavioural needs, reconstructing and evolving jobs to foster motivation, successfully establishing and implementing employee reward programs, and dealing with employees compassionately, respectfully, and fairly. This article is effective in terms of the highlighted factors which enhances employee motivation and provides management with a strategic pathway to design organizational-related strategies in a conducive manner as discussed above. However, the article has not discussed the particular strategic framework, like the type of job designs, reward programs, and form of employees’ behavioural needs which will guide further in taking practical actions to enhance employee motivation.

Chukwura (2017) examined and briefed two distinct forms of motivation, i.e. intrinsic and extrinsic motivation. He asserted that intrinsic and extrinsic variables are the reasons behind choosing employment by an individual. He clearly demarcated extrinsic variables as rewards like salary, promotions, and fringe benefits as these factors are likely to provide satisfaction and are beyond employees control. Conversely, intrinsic rewards incorporate essential components of work activity and having greater control by employees. Intrinsic rewards, like awards and appreciation, are inherently pleasurable. The result of this study clarifies that intrinsic and extrinsic variables are inter-related, i.e. increase in intrinsic motivation causes a decrease in the extrinsic motivation and vice versa. However, the result of the study did not clarify the conditions under which both variables, i.e. intrinsic and extrinsic are linked.

Organizational Change Management and Culture

Today’s competitive environment is termed as ever-changing in which sustaining the motivation among employees is critical for the success of the business (Mdletye et al., 2014). Also, the motivators for the progress differ from individual to individual. Similarly, motivators differ in every organization depending upon its history, culture, type and origin (Mdletye et al., 2014). Employee motivators consist of a vast array of factors which are not limited to salary, rewards, self-efficacy, goal setting, and other extrinsic and intrinsic factors. Motivation is utilized to attain the mission and vision of the company, and to look for the sources of motivation is the critical process for the leaders to sustain the position of the company within an industry. Even within similar cultures, motivation differs from individual to individual (Hanif et al., 2018). Thus, it is crucial to figure out the existing culture of an organization and the process to bring forward positive change within the current environment under the domain of organizational change management.

Change management is measured as a comprehensive theme covering terms like restructuring, rightsizing, cultural change, reengineering and total quality management (Hanif et al., 2018). The underlying objective of change management is to manage the changing internal and external environment in support of the success of the organization (Hanif et al., 2018). It implies that change management is not a one-time process, but it encapsulates the continuous efforts to renew the organization and employee’s performance.

Culture differs among the types of the organization, employees, leadership traits, structural policies, mode of communication and ethnic origin of the company. The innate nature of the culture assists organization is positioning itself apart from other competitors in the industry, which is the strength of the cultural domain (Hardy et al., 2019). In contrast, Hanif, Khan and Zaheer (2018) pointed in their study that managing and sustaining cultural setting is equally challenging because ingraining change acceptance attitude among employees becomes difficult with time. It implies that change management within the cultural domain is termed as a critical and most challenging task given the financial and planning resources.

Leadership Style and Employee Motivation

Wang, Chontawan and Nantsupawat (2012) studied the role of leaders within an organization as employees need leaders to define goals, tasks, as well as to motivate and inspire them to achieve shared organizational mission. Motivation and leadership are related factors which are influenced by leader-follower relationship or the motivation dimension that let an individual adopt a specific leadership style. Social-Environmental theories highlighted that the presence of leaders influenced and aroused employees, therefore, supervisors, co-workers, and subordinates turned to be the critical source of encouragement (Guest & Conway, 2011). Moreover, the research argues that motivation is positively related to the information processing activities of an individual. Additionally, at the organization structure level, the study of Zareen, Razzaq and Mujtaba (2015) asserted that at the initial or developing level, an individual or organization needs proper guidelines of performance and work-related goals from leaders where transactional style appropriately fit. However, as the organization or individual grow at maturity level, the transactional relation must be replaced with the mature visionary and inspiring leadership style like transformational.

Strengths: The particular research highlights significant pathway of the leadership-practice model and provides five vital practices for transformational leaders. It includes inspiring through a shared vision, challenging the procedure, empowering others to perform, demonstrating the methodology, and cheering the heart. Apart from highlighting transformational leadership practices, the results of the study suggest that the attributional differences exist in the transformational leadership style due to the socio-economic, cultural, and ethnic environment. Another strength of the leadership-follower model of the research suggests that the particular leadership style like transformational motivates an individual to achieve individual as well as the organizational goals. However, Rakhi and Kumar (2015) also pointed out that transaction style leadership served as a baseline for the broader relationship among leaders and followers, which turned to further paved the way for transformation style relationship.

Weaknesses: The research of Wang et al. (2011) effectively describes and statistically proves the effect of transformational style leadership on employee motivation but also highlighted the dependency of environmental factors on the differences and attributes of the leaders. It implies that leadership style represents one aspect of the environmental impact on employee motivation, whereas the type of relationship varies concerning the cultural and ethnic atmosphere. In terms of the cultural differences, the findings of the leadership practice model differ from country to country.

Strategic Human Resource Management

All the activities and actions associated with employee’s management in an organizational setting are termed as human resource management, and such activities are known as human resource practices. Strategic human resource management includes a future-oriented or long-term process of designing and implementing human resource programs. Such HR programs can address and solve complex business and employee-related issues by which it can directly contribute to the long-term objective of a firm (Rusu & Avasilcai, 2015). However, the research asserted that the implementation of such programs is highly dependent on the favourability of the organizational environment and its leadership behaviour. Research conducted by Sultana, Salman and Irfan (2020) studied the effect of human resource practices on the attitudes and behaviours of employees and suggested that some HR traits are beneficial for creating a competitive advantage for a firm to enhance organizational performance. The study involved a systematic literature review to analyzes the influence of several human resource practices on employee motivation, particularly in public organization settings. Hence, the main limitation of the study is the lack of generalization of similar human resource practices in the context of private sector organization.

Strengths: The major strengths of the human resource practices accounted for the results that employees feel contented and motivated, which is the hallmark of organizational achievement (Elnaga & Imran, 2013). Strategic HR undergoes analysis within the workforce of the organization and identifies the actions needed to enhance the value of employees for the particular organization. As a result of such analysis, strategic human resource management design HR techniques and processes like training and development to address weaknesses among employees (Elnaga & Imran, 2013). The strategic human resource management practices keep the employees engaged by reviewing the motivators like employment status, goal achievement, or monetary benefits to satisfy lower or higher needs of employees (Guest & Conway, 2011). By undergoing employee level analysis, strategic human resource management is beneficial as it enhances the level of job satisfaction among employees through designing employee-motivation programs. It creates a better working environment and transforms organizational culture. Moreover, strategic human resource management allows efficiency in resource management, which is a principle of quality control. It depicts a proactive approach to employee management. Lastly, it enhances productivity among employees (Rusu & Avasilcai, 2015). So, it is critical to study the implications of human resource management practices in the context of an organization to enhance retention, commitment, and motivation of employees. Moreover, the effectiveness of HRM practices can be achieved through proper implementation and periodic evaluation.

Weaknesses: According to Guest and Conway (2011), the effectiveness of human resource management practices is highly dependent on the appropriate planning, execution and evaluation. However, the concept of strategic human resource management is comparatively new in the developing states due to which public sector organizations might not be able to appreciate and recognize the importance of the particular domain (Guest & Conway, 2011). Additionally, some techniques and programs of strategic human resource management might not get managerial support by which organizations feel the inadequacy of SHRM programs implementation. Moreover, Sultana, Salman, and Irfan (2020) conducted a study in the context of the healthcare sector while at the same time ignoring other sectors in the public organization domain. In this case, the applicability of strategic human resource management cannot be reaped in the public sector domain provided the conducive organizational culture with supportive leadership behaviour.

Training and Development

Hardy, Day and Arthur (2019) highlighted in their research that among several factors that are directly related to influencing the way individuals behave in an organizational setting and training and development is among them. Motivating employees through training and development let them change in the desire direction that assists them to accomplish a result. Training and development warrants behavioural change and learning in the structured format by reducing the randomness (Hardy et al., 2019). Thus, the field of training and development is directly involved in enhancing individual performance within an organization.

Chukwura (2017) asserted that training is the best approach for employees to gain competencies, skills, and knowledge in their workplace. Untrained employees feel constrained to performing their job role adequately. Work motivation and management training programs identify the source of influences and arousal. Elnaga and Imran (2013) describe that the organizational hierarchies are flattening with the advent of globalization, resultantly increasing diversity and structural changes. Such changes implicate management to train leaders with the right skill and competency to succeed in the changing environment. Additionally, they have highlighted that training and development are essential for managing a diverse workforce which enables them to learn cross-cultural principles effectively. The benefit of a cross-cultural training program is that it ensures the inclusion of different social identities. Resultantly, employees feel valued for themselves and others as they effectively contribute to the acquired capabilities and skillset. The particular study also suggests that training and development of employees would generate enhanced self-esteem, high level of job satisfaction, and a tendency to largely involve in achieving the shared objectives and goals of the organizations (Elnaga & Imran, 2013).

Strengths: Hardy, Day and Arthur (2019) highlighted in their research that among several factors that are directly related to influencing the way individuals behave in an organizational setting and training and development is among them. Motivating employees through training and development let them change in the desire direction that assists them to accomplish a result. Training and development warrants behavioural change and learning in the structured format by reducing the randomness (Hardy et al., 2019). Thus, the field of training and development is directly involved in enhancing individual performance within an organization.

The major strength of the domain of training and development is the generation of new knowledge. Additionally, ongoing employee training and development has a vital role in the growth of individual and organizational performance. The strategic process of employee training and development promote creativity, resourcefulness, and outline the complete organizational knowledge that gives uniqueness to the company and distinguish it from others (Elnaga & Imran, 2013). Moreover, at the level of employees, training, and development add value to the existing skill set that ultimately urges an individual to work towards shared organizational goals.

Weaknesses: Rowland, Hall and Altarawneh (2017) highlighted that one of the main constraints in the domain of training and development is the idea of continuous knowledge creation. It implies that if the organization need to sustain its position, enhance competitive advantage and employee motivation, it is imperative to produce new learning outcomes. It also asserts that training and development are not to count individually on the use of existing resources which put a constraint on the company planning side as a whole. Additionally, the cost revolves around the creation of addition of new and current knowledge is huge for management as well as for the organization.

SWOT Matrix

SWOT matrix consists of the combination of broader internal and external assessment in the form of strengths, weaknesses, opportunities, and threats, respectively. SWOT matrix is an analytical tool utilised to analyse the strengths, weaknesses, opportunities, and threats of a particular organisation, process, or business activity (Gurel, 2017). SWOT approach is a form of a brainstorming session whereby a process or a problem can be addressed in terms of lifecycle or phases.

Strengths: The main advantage of using a SWOT approach is that it provides a broad picture of an entity under consideration in the form of the internal and external environmental analysis with a low cost associated with this form of assessment. It integrates multiple forms of data, like quantitative and qualitative, from a variety of sources (Chermack & Kasshanna, 2007). It allows multi-level assessment in the form of internal and external analysis. Additionally, with the help of the SWOT matrix, an organization can be compared against the industry or the internal favourable or unfavourable objectives. Moreover, the SWOT matrix helps to manage, organize and list the vast amount of data of the particular organization. Thus, the SWOT matrix has developed a niche within the broader industry (Chermack & Kasshanna, 2007).

Weaknesses: SWOT matrix provides a simplified version of the complex or multifaceted domain which can limit the perspective on the given domain or organization. It lacks objectivity and exclusivity. In addition, the tool lack mechanism to weigh or rank one domain or factor against the other. The simplified description of the strengths, weaknesses, opportunities, and threats of the particular organization can hinder the problem-solving approach as the factors can be misunderstood by the reader and can lead to subjective analysis. Moreover, the organization operates in the volatile environment which demands external and internal analysis to be assessed with regards to the other variables too which cannot be done with the help of SWOT matrix (Chermack & Kasshanna, 2007).

Conclusion

This report had an objective of outlining the motivational issues of employees at Daleel Petroleum in terms of human resource management and leadership. With the help of a detailed analysis derived on several business domains and constituents, a suitable solution was found for future regulations and transformation. The fishbone diagram provided an estimation of fundamental issues by the governing bodies at the organization, which involved organizational culture, working environment, training and development, and recruitment procedures.

In terms of working conditions, the organizations become burdened and stressed with the transactional leadership style at Daleel Petroleum. Transactional leadership assist creative behaviour if followed by knowledge sharing culture within an organization. In the case of Daleel Petroleum, transactional leadership put restraints on knowledge sharing behaviour by putting constraints in diversity management. Consequently, such issues intensify with other problems linked with human resource procedures and organizational culture. Recruitment plays a significant role in promoting organizational creativity and motivation by structuring procedures in such a way that individuals are hired based on merit, diverse background, structural knowledge. In contrast, Daleel Petroleum lack such structural procedures that promote diversity among employees. On the same note, lack of diverse and creative employees inhibits individual and organizational level creativity and innovation that become a cause of the motivational issues among employees.

Another such concern identified in the report was a disparity in the reward structure by which employees feel discriminated. So, the biggest challenge face by Daleel Petroleum is declining motivational level of employees. The strategic background of alleviating motivational issues is linked to the underlying concern mentioned previously, like organizational strategic procedures and background of the country, i.e. Oman. The corporate culture of Oman is significantly dominating with social status consciousness, absence of diversity, and unequal participation in professional traits. Resultantly, the organizational and employee level performance becomes limited. Through Six Sigma Approach, multiple solutions were derived to ensure that the employees felt involved, motivated and appreciated. Firstly, it is recommended for Daleel Petroleum to practice structural human resource practice like diagnosing the underlying cause of demotivation among employees. Following the recommendations and elaborations of solutions, Daleel Petroleum will most likely develop better leadership attributes along with a diligent human resource management framework.

Part 2 of the report conducted a detailed review of different problem-solving approaches and framework used for resolving the issue of employee motivation. Reviewing the strengths and weaknesses of relevant models and approaches and examining how they assist in proposing solutions for the particular problem of Daleel Petroleum assist in precisely comprehending the practical dimensions of those approaches. Studying the issue of employee motivation through the fishbone diagram and Six-Sigma approach has shown the practical viability of these approaches in solving a practical problem within the domain of an organization. Understanding and influences of employee motivation on multiple aspects of the business and functional areas assist in realizing the multifaceted and strategic nature of business functional areas like human resource management. In conclusion, this report has highlighted how theoretical concepts and approaches can be applied practically and has helped to realize the nature of integrated functional areas.

Learn how can Essay Assignment Writing assist you

We are a team of professional assignment writers, essay experts, editors, proofreaders and tutors. We
can help you with all your projects, dissertations and reports. We guarantee a service that satisfies you
100%.

Action Plan

The purpose of this report was to explore the problem of Daleel Petroleum, to assess its impact on different aspects of the business and to find a proper solution for the consequences. The major issues identified through various approaches like fishbone diagram and six-sigma was employee motivation linked with the inadequacies of the human resource management department and an improper working environment. Through the brainstorming sessions and deliberations on the concept, and by reviewing the literature, it was suggested that Daleel Petroleum should have a feedback and survey system for the employees to mention any problems they are having. Moreover, Daleel Petroleum should have to undergo major leadership changes by adding the services of a human resource specialist which will assist in highlighting and solving employees related issues. In addition to setting a feedback mechanism, the organization need to incorporate the functional area of employee training and development, which will help in educating the workforce on necessary skills and competencies. Training and development will also help in changing the learning environment of the company, including its culture. It is also recommended that the human resource department would incorporate better strategies and mechanisms for the selection of future employees.

Tasks Personnel Responsible Timeline Resources Required Feasibility Check
Finding a human resource specialist to solve employee related issues CEO and top administration January 1st 2021-January 30th 2021 Involvement of the administration and media for advertising. Managers will be required for conducting interviews
Setting up a feedback and survey mechanism for the employees Top and Middle Management February 1st 2021-February 16th 2021 Active participation of human resource department

2000-3000 OMR for arranging meetings and follow up with the responsible individuals

Training and Development Top and Middle Management February 16th 2021-April 16th 2021 2000-3000 OMR for carrying out training sessions

Table 1: Action plan for implementing recommendations

References

AlKhars, M., Evangelopoulos, N., Pavur, R. and Kulkarni, S., 2019. Cognitive biases resulting from the representativeness heuristic in operations management: an experimental investigation. Psychology Research and Behavior Management12, p.263.

Ashar, M., Ghafoor, M., Munir, E. and Hafeez, S., 2013. The impact of perceptions of training on employee commitment and turnover intention: Evidence from Pakistan. International journal of human resource studies3(1), p.74.

Bandara, W.W.M.C., 2014. Consumer decision-making styles and local brand biasness: Exploration in the Czech Republic. Journal of Competitiveness6(1), pp.3-17.

Basu, R. and Wright, J.N., 2012. Quality beyond six sigma. Routledge.

Belias, D. and Koustelios, A., 2014. The impact of leadership and change management strategy on organizational culture. European Scientific Journal10(7).

Bowra, Z.A., Sharif, B., Saeed, A. and Niazi, M.K., 2012. Impact of human resource practices on employee perceived performance in banking sector of Pakistan. African Journal of Business Management6(1), pp.323-332.

Coccia, M., 2018. The Fishbone diagram to identify, systematize and analyze the sources of general purpose Technologies. Journal of Social and Administrative Sciences4(4), pp.291-303.

Chukwura, F. A., 2017. The Impact of Selected Leadership Styles and Behaviors on Employee Motivation and Job Satisfaction. Washington, DC, ProQuest.

Chermack, T. J. & Kasshanna, B. K., 2007. The Use and Misuse of SWOT Analysis and Implications for HRD Professionals. Human Resource Development International, 10(4), pp. 383-399.

Daleel Petroleum (2020). Daleel Petroleum – About Us – Our History. [online] Available at: https://www.daleelpetroleum.com/about-us/our-history.

Daleel Petroleum (2020). Daleel Petroleum – Business With Us – Supply Chain. [online] Available at: https://www.daleelpetroleum.com/business-with-us/supply-chain [Accessed 1 Jan. 2020].

Daleelpetroleum.com. (2020). Daleel Petroleum – Operational Excellence – Production. [online] Available at: https://www.daleelpetroleum.com/operational-excellence/production [Accessed 1 Jan. 2020].

Dow, S.P., Glassco, A., Kass, J., Schwarz, M., Schwartz, D.L. and Klemmer, S.R., 2010. Parallel prototyping leads to better design results, more divergence, and increased self-efficacy. ACM Transactions on Computer-Human Interaction (TOCHI)17(4), p.18.

Elnaga, A. & Imran, A., 2013. The Effect of Training on Employee Performance. European Journal of Business and Management , 5(4), pp. 137-147.

Figgins, A., Lansdell, J., & Taqi, Y. 2018. Oil and gas regulation in Oman: overview. Oman: Thomson Reuters.

Guest, D. & Conway, N., 2011. The impact of HR practices, HR effectiveness and a ‘strong HR system’ on organisational outcomes: A stakeholder perspective. The International Journal of Human Resource Management, 22(8), pp. 1686-1702.

Gurel, E., 2017. SWOT Analysis: A Theoretical Review. Journal of International Social Research, 10(51), pp. 994-1006.

Hanif, M., Khan, Y. S. & Zaheer, A., 2018. Impact of Organizational Resistance to Change on BPR Implementation: A Case of State Bank of Pakistan. European Journal of Business and Management, 6(4), pp. 186-196.

Hardy, J. H., Day, E. A. & Arthur, W., 2019. Exploration-exploitation tradeoffs and information-knowledge gaps in self-regulated learning: Implications for learner-controlled training and development. Human Resource Management Review, 29(2), pp. 196-217.

Ilie, G. and Ciocoiu, C.N., 2010. Application of fishbone diagram to determine the risk of an event with multiple causes. Management Research and Practice2(1), pp.1-20.

Luca, L., Todorut, A. V. & Luca, T. O., 2018. Quality management applied to analyze the reduction of the pollution which is generated from road. Scientific Bulletin of Naval Academy, 21(4), pp. 116-122.

Luo, Y.M., Huang, S.Y. and Cao, S.Y., 2007. Application of improved fishbone diagram in the operation management. Industrial Engineering Journal-Guangzou-10(2), p.138.

Manville, G., Greatbanks, R., Krishnasamy, R. and Parker, D.W., 2012. Critical success factors for Lean Six Sigma programmes: a view from middle management. International Journal of Quality & Reliability Management29(1), pp.7-20.

Mdletye, M. A., Coetzee, J. & Ukpere, W. I., 2014. Relatedness of People’s Perceptions and Experiences of Change to the Status of Change: Lessons from the Department of Correctional Services of South Africa. Mediterranean Journal of Social Sciences, 5(10), pp. 634-643.

Oxford Business Group. 2017. The Report: Oman 2017. Oman: Oxford Business Group.

Parmar, P. S. & Desai, T. N., 2019. A systematic literature review on Sustainable Lean Six Sigma. International Journal of Lean Six Sigma, 11(3), pp. 429-461.

Prusty, R. and Tanna, J., 2012. Foreign Investment and Firm Level Operating Performance: Case of Reliance and Tata. Journal of Humanities, Social Science & Management3.

Raj, K. H., 2011. Agile Manufacturing Systems. India: Alpha Science International Limited.

Rakhi & Kumar, A., 2015. Exploring the Interrelationship among Organizational Climate, Employee Motivation and Job Satisfaction: A Review of Literature. OPUS, 6(2), pp. 62-83.

Realyvásquez-Vargas, A., Arredondo-Soto, K. C., García-Alcaraz, J. L. & Macías, E. J., 2020. Improving a Manufacturing Process Using the 8Ds Method. A Case Study in a Manufacturing Company. Applied Sciences, 10(2433), pp. 1-26.

Rowland, C. A., Hall, R. D. & Altarawneh, I., 2017. Training and development: challenges of strategy and managing performance in Jordanian banking. EuroMed Journal of Business, 12(1), pp. 10.1108/EMJB-01-2016-0001.

Rusu, G. & Avasilcai, S., 2015. Linking Human Resources Motivation to Organizational Climate. Procedia – Social and Behavioral Sciences, Volume 124, pp. 51-58.

Salah, S., Rahim, A. and Carretero, J.A., 2010. The integration of Six Sigma and lean management. International Journal of Lean Six Sigma1(3), pp.249-274.

Smith, S.L. and Fagelson, M., 2011. Development of the self-efficacy for tinnitus management questionnaire. Journal of the American Academy of Audiology22(7), pp.424-440.

Smith, T.M. and Desimone, L.M., 2003. Do changes in patterns of participation in teachers’ professional development reflect the goals of standards-based reform?. Educational horizons81(3), pp.119-129.

Sreedharan, R. et al., 2018. Assessment of critical failure factors (CFFs) of Lean Six Sigma in real life scenario. Benchmarking: An International Journal, 25(8), pp. 3320-3336.

Stanojeska, M., Minovski, R. & Jovanoski, B., 2020. Top Management Role in Improving the State of QMS under the Influence of Employee’s Involvement: Best Practice from the Food Processing Industry. Journal of Industrial Engineering and Management, 13(1), pp. 93-119.

Suárez-Barraza, M. F. & Rodríguez-González, F. G., 2019. Cornerstone root causes through the analysis of the Ishikawa diagram, is it possible to find them?. International Journal of Quality and Service Sciences, pp. 302-316.

Sultana, S., Salman, Y. & Irfan, S., 2020. Exploring the relationship of HRM Practices on Employee motivation in public organizations: A systematic Literature review. GMJACS, 10(1), pp. 143-163.

Usmani, S. and Jamal, S., 2013. Impact of distributive justice, procedural justice, interactional justice, temporal justice, spatial justice on job satisfaction of banking employees. Review of integrative business and economics research2(1), p.351.

Vakola, M., 2014. What’s in there for me? Individual readiness to change and the perceived impact of organizational change. Leadership & Organization Development Journal35(3), pp.195-209.

Walter, O. M. F. C. & Paladini, E. P., 2019. Lean Six Sigma in Brazil: a literature review. International Journal of Lean Six Sigma, 10(1), pp. 435-472.

Wang, X., Chontawan, R. & Nantsupawat, R., 2012. Transformational leadership: effect on the job satisfaction of Registered Nurses in a hospital in China. Journal of Advanced Nursing, 68(2), pp. 444-451.

Wilson, R., Hill, A. V. & Glazer, H., 2013. Tools and Tactics for Operations Managers (Collection). Minnesota: FT Press.

Zareen, M., Razzaq, K. & Mujtaba, B. G., 2015. Impact of Transactional, Transformational and Laissez-Faire Leadership Styles on Motivation: A Quantitative Study of Banking Employees in Pakistan. Public Organization Review, 15(4), pp. 531-529.

Like this article?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest