The Saudi Aramco Built Government Schools Division Project - Case Study Example

Project Research Part A: Already Existing Project Part B: New Project Idea Name Institutional Affiliation Date Project Research Part A. An existing project in a country Abstract The purpose of this research is to identify an existing and already established project in a country in the world with the intention of discussing its costs and benefits. This is in relation to the future, the significance of the project to the larger society, and conclusion and recommendations about the project’s sustainability. The existing project selected for this report is the Saudi Aramco Built Schools in the eastern province of Saudi Arabia. This paper will address the significance of the project to the Saudi Arabians and the Society at large, its sustainability, and what can be done to achieve the best from it. Ensuring quality and maintenance of the facilities has been singled as an important task in ensuring longevity of the benefits of the project. The Saudi Aramco Built Government Schools Division (SABGSD) Project The Saudi Arabian Oil Company, a national energy corporation of Saudi Arabia began building schools for the children of its Arab and Muslim employees in the Eastern Province in 1953, under an agreement with the government of Saudi Arabia. The agreement required the company to build and maintain the schools, and pay for their operation, whereas the government provided the curriculum and the teachers. The arrangement has lasted for more than 50 years, during which time the company built 139 schools, many of which still operate today. Saudi Aramco has financed the building of more than 139 schools comprised of 42 Boys Elementary, 28 Boys Intermediate, 4 Boys Secondary, 37 Girls Elementary, 23 Girls Intermediate and 5 Girls Secondary. Saudi Aramco continues to operate and maintain Saudi Aramco Built Government Schools up to date (Saudi Aramco Corporate Citizenship Report, 2012). The company is expected to provide operating expenses in a most cost effective and focused manner, with a vision to improve the level of educational standards by providing peaceful environment to the students, while continuously promoting staff development (Saudi Aramco Corporate Citizenship Report, 2012). Although the company builds the schools and maintains them they are operated by the Ministry of Education as part of the Saudi Government schools system (Saudi Aramco Corporate Citizenship Report, 2012). Cost-benefit of the projects in relation to sustaining the future Schools are public utilities that provide one of the most crucial services to people, which is education, thus maintenance and quality are essential (Saudi Aramco Corporate Citizenship Report, 2012). Education is a valuable asset to any country and the school construction project undertaken by Saudi Aramco, has helped significantly in increasing the literacy levels of Saudi Arabia. Though SABGSD is a private organization, the schools it builds serve members of the public and the important aspect that the project has to adhere to is to ensure expected standards are maintained throughout the project life cycle. Research reveals that improved and effective maintenance results to considerable improvement in performance of the structure or equipment, improves and maintains high quality, ensures safety of those using the structure. The cost and benefit analysis of this project entails including procedures for monitoring maintenance standards, key performance indicators, and establishing ways of improving quality and performance by developing standards and operational procedures for maintenance over the years. These in turn will ensure that the schools built by SABGSD are of high quality and well maintained ensuring safety of members of the public (teachers and students) who use them. Furthermore, the constructing company and stakeholders will benefit from future recommendations for other long-term projects after the success of the current one. According to Ramírez et al., (2004) many clients, particularly those within the public sector seek to work with construction companies that show a commitment towards continuous improvement. They explain that implementation of robust key performance indicator systems is often viewed as a requirement for companies to succeed in work. From the client viewpoint, key performance indicators provide an effective way for construction companies to explain wider project requirements beyond cost and time issues. Clients in construction industry often need their projects delivered efficiently, on budget and on time, free from defects, safely, right the first time and by companies that are profitable (McCabe, 2001). To achieve year-on year reductions in project costs and times, regular clients expect their construction team to display continuous improvement (Ramírez et al., 2004). The purpose of key performance indicators is therefore to facilitate measurement of organizational and project performance throughout the industry. The information obtained can then be used for the purpose of benchmarking, and will be a fundamental component of any organization’s attempt towards attaining best practices in the future. Importance of project and its contribution to the society at large The SABGSD has contributed greatly to the Saudi Arabia society. By taking on the responsibility of being in charge of a project to build schools for its society, the Saudi Aramco company earned the title of “motor of change”, through transforming the educational needs of its society (Saudi Aramco Corporate Citizenship Report, 2012). Over the years, more and more young Saudi people are being reached to participate in the ongoing investments and initiatives in education. As a result of the project, the Saudi Arabia society has undergone remarkable transformation, evolving from a basic agricultural society into a regional global economic power with modern infrastructure. The project has ensured an increase in educational facilities, and which in turn has encouraged majority of youth, including girls to enroll in schools (Saudi Aramco Corporate Citizenship Report, 2012). The availability of educational facilities from this project has also encouraged enrollment in schools and hence a rise in the quantity of literacy levels. Policy analysts in societies worldwide consider literacy rates as a vital measure of the value if a nation’s human capital (World Bank, 2008). Literate people can be more easily trained as compared to illiterate ones, and thus have potential for achieving higher socio-economic statuses. The higher the number of literate people a country has, the higher the chance for them to enjoy better health and employment prospects, as literacy increase job opportunities as well as potential for higher education. Literacy has a large effect on the ability of a nation to generate wealth. Differences in literacy skills bring about undesirable levels of social inequality in valued outcomes such as education and health) (World Bank, 2008. A substantial proportion of the taxes citizens pay is consumed to provide public goods and services to people with low literacy levels. According to economic theory, human capital is the knowledge that individuals possess and how they put it to productive use. Human capital is an important economic growth driver and thus literacy is a basic element of human capital. Human capital is tightly linked with literacy (World Bank, 2008). The presence of more schools, improved curriculum, and a higher number of teaching staff as enabled by the SABGSD project will enable many Saudis to acquire the level of literacy skills required for participation in the modern Saud society. This means that the Saudi Arabia nation now has more economic prospects compared to fifty years ago when formal education levels were lower. Conclusion and recommendation This paper has researched about the Saudi Aramco Built Government Schools Division (SABGSD) project and found that it has contributed greatly to the number of schools and other educational facilities in the country. Over 139 schools are construction projects of the SABGSD which is working with the government to provide teachers in these schools, as well as curriculum to enable students attain educational needs of the current society. The costs-benefit analysis of the project reveals the need for continuous monitoring and evaluation of the project to ensure that quality is sustained throughout the future. Increasing the social amenities has to go hand-in-hand with ensuring that the schools serve the students and teachers well for a long period of time. Good quality of schools will encourage a higher participation in education, and more work and revenue for the organization in charge of the project. The economy of the society will improve with favorable infrastructure and high levels of literacy. To ensure these, the recommendations given here are based on ensuring quality maintenance of the building project. Maintenance and quality are two factors which provide opportunities for reducing costs and increasing efficiency in use of various facilities at the school. This has a positive impact on performance. It is therefore important for the company to come up with maintenance standards as well as key performance indicators as they are important in establishing the gap, goal and the baseline. Key Performance Indicators (KPIs) are very critical in measuring progress. KPIs are an integral part of the maintenance program hence should be accurate and applicable (Albert & Ada, 2001). Some of the KPIs that construction companies should monitor include construction cost and time. The firm should allow time for uncertainties such as defects that must be rectified. Customer satisfaction is another crucial KPI. Any firm seeking to achieve and sustain competitive edge in the market must have the ability to meet clients’ expectations and gain their loyalty (Shen, Lu, & Yam 2006). Liquidity should also be monitored as the firm needs to establish the amount of cash the project will generate or is consuming by checking key current asset as well as liability balance sheet accounts. Other KPIs that must be monitored include; cash flow, labor productivity, schedule variance, margin variance, committed cost, backlog and unapproved change orders (Sang-Chul, 2009) Quality improvement procedures which seek to seal the gap that exists between current and expected levels of quality that have been defined by standards are also crucial. Quality management tools as well as principles must be used to identify and address deficiencies in the system, boost strengths and improve school maintenance processes. Quality implies setting standards and working towards achieving them. Doing maintenance using standards therefore requires setting standards for each maintenance action conducted on an item of equipment to make sure that the necessary standard is attained every time (Meyer & Giuffre 2006). Key Performance Indicator is argued to be a good communication method as it makes it possible for different stakeholders within the project to express their concerns and communicate issues that are crucial to them. KPIs form a platform for dialogue within projects which is sometimes not easy. References: Albert, C. & Ada, C. (2001). Key performance indicators for measuring construction success. London: Springer. McCabe, S. (2001). Benchmarking in construction. New York, NY:Wiley-Blackwell. Meyer, L., & Giuffre, J. (2006). Improving maintenance performance. Nuclear Plant Journal, 24 (2), 40-41. Ramírez et al., (2004). Benchmarking system for evaluating management practices in the construction industry. Journal of Management in Engineering, 20 (3), 110-117. Sang-chul K. (2009). Project success indicators focusing on residential projects: Are schedule performance index and cost performance index accurate measures in earned value? Canadian Journal of Civil Engineering, 36 (11), 1700-1710 Shen, L., Lu, W., & Yam, M. C. (2006). Contractor key competitiveness indicators: A China study. Journal of Construction Engineering & Management, 132 (4), 416-424. Saudi Aramco Corporate Citizenship Report (2012). Shaping tomorrow. Saudi Aramco. Retrieved December 15, 2013 from http://www.saudiaramco.com/content/dam/Publications/Corporate%20Citizenship%2 0Report/CCR2012/2012CCR_EN.pdf World Bank (2008).World Development Indicators/Edstats database. Part B: A new project idea that could be a future development that will realize opportunities Introduction This paper focuses on an idea that could be a future development in any organization. This entails the use of technology to promote learning in organizations. E-learning to promote training and development in organizations is a field that is being contemplated widely in both academic and practice specters. Although some organizations are adopting this new way of human resource training, some are still hesitant because of uncertainties in the business environment and general fear of change. This paper will focus on e-learning projects and their potential to expand opportunities for growth and development in the working environment. Discussion Training and development is a practice in the field of human resource management which is concerned with organizational activities that aim at improving the performance of individuals, groups or units in the organizational setting (McPherson, 2005). Usually, training focuses upon the job that an employee currently holds and forms the basis of evaluation; while development focuses on organizational activities that the employee may partake in the future and so impossible to evaluate at the present (McPherson, 2005). Currently, e-learning is being adapted in the training and development agenda of various organizations.  E-learning is an emerging field in the human resource and development (HRD) literature and therefore of significance importance to studies.  E-learning is an emerging area in organizational learning especially as computer-mediated communication evolves (Korhonen, 2001).  Previously computer-mediated communication was confined to distance and online learning in organizations but the element is now being re-introduced as a means to implement education in network learning environments. E-learning involves the use of technologically advanced techniques in the training of staff for the purpose of meeting the organizational requirements at the present age and improving business performance.  E-learning or web-based techniques provide an opportunity for the HRM to address many business issues or challenges, for instance cost, access to information, learning accountability, and employee competency (Pang, 2009).  New media and delivery technologies continue to evolve as organizations attempt to introduce the use of most recent technologies.  Despite the controversies regarding as to whether e-learning should be included in the firm’s training and development program, Pang (2009) asserts that organizations which dedicate the greatest amount of resources to training recognize that learning can be a significant contributor to the firm’s revenue.  Rapid advances in internet technology and web use as an educational resource have enhanced the deployment of professional development programs that are web-based in many organizations. Controversies surround the application of e-learning in HRD programs (McPherson, 2005). Adaptation of e-learning for training and development is not a smooth process because of challenges involved.  Attitudes towards technology adaptation, finances involved in technology investment, and the relevance of the technology to the firm are some of the aspects that determine whether the HRD can include e-learning techniques in the training and development process (McPherson, 2005).  On the other hand, proponents believe that the use of e-learning in organizations is more efficient and effective in matters time management, cost, and suitability to the employment needs of the current business environment.  E-learning is therefore an aspect that is worth studying especially in the current environment in which the HRM seek ways to attract and retain their employees (McPherson, 2005). Pang (2009) asserts that the use of technology in competency-based professional development and corporate training is a well established era.  Pang (2009) conducted a study whose purpose was to assess the pedagogical equivalence as determined by gains in knowledge, and the pedagogical effectiveness of certain video-driven multimedia components, web-based professional development training program in comparison to classical training and development delivery methods such as face to face programs.  The two concepts were measured against the current constraints of time and limited economic resources in the real world.  The study focused on the use of video-driven multimedia, and web-based instructions in the corporate environment to determine if the learning experience quality and the knowledge gained from the instruction were similar to those obtained with the traditional methods.  This was an experimental study in which a quasi-random design was used group participants in either the experimental group or the control group. The procedure for the study included the participants in the experimental group attending instructions from a video-driven, web-based professional development program while the control group attended a live-instructed professional development program.  The findings revealed that the video-driven multimedia, web based instruction was pedagogically equivalent to in regard to knowledge gains and that the knowledge gains were higher as compared to the traditional method group.  Pang (2009) asserts that certain components in the web-based environment contributed more than what the live environment offered to pedagogical effectiveness. Callan and Fergusson (2009) found that e-leaning in organizations is a way to support national training initiatives around apprenticeships. Flexibility is important in organizations that apply e-learning.  E-learning promotes increased training especially in on-job training modules, better quality training, and saves costs.  E-learning also improves the quality of the training process.  Korhonen (2001) highlights the importance of team based learning for performance improvement in organizations.   Team-based learning and e-learning are new ways of supporting learning and creativity in the organization.  With e-learning, team-based learning can be achieved through networking environments provided by the internet technology.  According to Korhonen (2001) e-learning network and learning environments act as central knowledge and learning resources for the learning organizations.   In contrast to classical methods of learning in organizations, e-learning provides a free environment for sharing of knowledge that will not only reduce the amount of time spent in training but also ensure that knowledge flows freely among the staff in the organization.  In relevance to today’s business environment, Korhonen (2001) asserts that an e-learning and networking environment requires that the organization recognizes the personal competence and intellectual capital of the worker.  The business environment is currently face with increased competition and for the sake of maintaining a competitive advantage, the management should provide an environment where workers act as free thinkers and exercise their ability to innovate. Conclusion/Recommendation E-learning is a rapidly emerging area that is incorporated in corporate training and professional development.  HRD functions of writing on papers, physical storage of data, and face to face professional training programs are slowly being replaced by e-techniques such as web-based, video-based, e-mail and broadband among others. E-learning enhances individual and organizational performance more than traditional methods and can improve employee motivation further as well as enhance job satisfaction.  However, most organizations are still unable to achieve the full benefits of e-learning because of the rapidly changing e-methods that makes it hard for the organization to strategize. This paper recommends that: Management should focus on addressing change as attitudes within the organizational culture and resistant to change are some of the drawbacks to e-learning in training and development (Korhonen, 2001). Funding or sponsorship of projects should focus on investing high-technologies for organizations as some are unable to adopt e-learning because of the high costs involved. Need for skills/expertise to accommodate the new technologies required in e-learning operations. E-learning in organizations will assist the HRM to maintain a satisfied and competent workforce for the benefit of the organization/project. References: Callan, V. & Fergusson, A. (2009). “How training organizations are using e-learning to support national training initiatives around apprenticeships and RPL,” E-learning: AVETRA 2009 Conference Paper, 1-27. Korhonen, V. (2001). “Team learning, learning networks and e-Learning in organisations,” University of Tampere, 147-159. McPherson, M. (2005). “Developing innovation in e-learning lesson to be learned,” British Journal of Educational Technology, 36(4),585-586. Pang, K. (2009). “Video-driven multimedia, web-based training in the corporate sector: Pedagogical equivalence and component effectiveness,” International Review of Research in Open and Distance Learning 10(3): 1-13 Read More