Real Life : Libyan Organisation - Case Study Example

Name ID Number Section Date The case study aims at looking on different problems that affect the human resource in Dolphin Oil Services. Oil sector being one of the major product and service delivery providers in Libya is important to look at it. This will help understand the major problems affecting Libyan economy as whole. Dolphin Oil Services is a Libyan company that was established in 1999 with an aim of providing professional approach to the oil sector. The company’s main business is to provide high quality services on the oil related fields (Dolphin, 2012). These fields include engineering, oil drilling, hiring out equipment to the oil and gas operators. The company has managed to deliver its services to majority of its clients with satisfaction. The company has been successful since its establishment and has been one of the best performing in the country and especially in the oil sector. Since its establishment the company has been experiencing increased revenues meaning it is performing as expected. The company also has a recruitment policy on a year basis meaning that even the employees increase every year. The company has gained reputation in the recent years as one of the best performing companies in Libya and specifically the oil sector. The company has been one of the highest contributors of revenue to the government through its payment of taxes. Increased company profits means that the company is in a better position financially and it is growing at the projected rate. To show the company’s current position and performance we refer to the annual report on finances. This will be projected from comparing two years that is 2011 and 2012 (Dolphin, 2012). Annual financial figure 2012 2011 In millions except per share data Revenues 1.253.3 1,135.1 Adjusted EBITDA 534.8 475.4 EBIT –impairment charges 141.3 130.5 Net income 33.7 (14) EPS basic 0.16 (0.07) EPS diluted 0.15 (0.07) Cash flow from operations 480.4 355.5 Capital expenditures(whether paid or not) 279.9 223.5 Multi-client cash investment 203.9 166.7 Total assets 3,137.2 3,035.0 Multi-client library 334.1 310.8 Cash and cash equivalent 424.7 432.6 Shareholders’ equity 1,771.7 1,755.3 Net interest bearing debt 394.2 279.2 Looking at the table above one can tell that the company is performing successfully at the oil industry. Looking at the revenue those of 2011 were lower than those of 2012 this can be attributed to increased business as the company gained reputation which helped increase the clients base. Looking at net income in 2011 the company had negative net income which means it was earning losses but this has changed in 2012 and the company has improved to earn millions in net income. This means that the company position and performance in the industry has improved. Therefore, the company has become stable in the past one year. The company has also increased it assets so as to be able to handle it clients and to widen the services it can be able to offer to the clients. The company has also increased the number of employees as compared to 2011 so as to perform better and offer quality services to the clients (Dolphin, 2012). The internal environment of the company is favourable because the management is very friendly to the other staff. They are also supportive to the staff in performing their duties. This favourable working environment is a motivator to the staff to perform their duties in the best way possible. The external environment has been a bit hostile since the over throwing of Late Gaddaffi government which meant that there was no peace in the whole of Libya. Problem identification The problem to be reviewed is motivation in the Dolphin Oil Services. Motivation refers to the force that drives employees in an organization to increase their effort to do their duties in a perfect way without being disrupted by any obstacles as they work to satisfy customer needs (Herzberg, Mausner & Snyderman, 1959). It can also be defined as how an employee works hard and in a passionate way to accomplish their duties persistently. Most companies works towards motivating their employees so as to increase the companies’ profits through increased out and productivity (Lauby, 2005). There are many researchers who have laid down strategies on how employees can be motivated to perform their duties and satisfy customer needs. Motivation is any activity that the company owners and management take for the benefit of their employees with an aim of raising their productivity and output (Neuberger & Beck, 1978). This is done to bring out the best from the employees giving them the most favorable working environment. There are different ways and methods of motivation as they will be explained in the course of this project (Kehoe, 2007). Motivation among employees is determined by different factors such as how employees enjoy or how they are proud of their job or place of work. Motivation in company runs from the top management to the low level workers. The more the motivated the employees are the more the company is any to realize its goals and objectives. There are so many factors that a company can use to motivate its employees (Rosenstiel, 2001). These factors include better working conditions, better remuneration package, fair promotions, and fair treatment at the place of work. This means that there is no discrimination of any kind such as racial or sexual. Presence of these factors encourages the employees to perform their duties to the best of their ability so as promote the image of the company and help the company to achieve its goals and objectives (Neuberger & Beck, 1978). Motivation among employees is a key determinant of how the employees will perform their duties and realize their full potential (Bruggemann, 1976). Solution to the problem In Dolphin Oil Services the problem of motivation has been evident from the feedback given by the employees during interviews. There were forty (40) respondent chosen at random and the questionnaire was mailed to them and they were to complete it and mail it back. The questions to be answered were related to workers motivation in their place of work. Their responses have been presented in table forms and interpreted in charts and graphs. This will help for better understanding (Bruce, 2003). Employees Motivation responses Question1. How often do you feel there is fair treatment at your place of work? Table 1 Job pride Frequency Percentage Always 15 37.5 Sometimes 20 50 Never 5 12.25 Total 40 100 Author (2012) On whether the employees are proud of their work, 15 of the 40 respondents who amounted 37.5% of the respondents reported that there always fair treatment in their place of work. 20 out of the 40 respondents who amounted to 50% reported that sometimes there was fair treatment. The remaining 5 out of the 40, these amounted to 12.5% of the respondents answered that there was no fair treatment and they cited race as one of the factors of discrimination. Question 2: Does your company provide avenues for employee motivation? Table 2 Presence of motivation avenues Frequency Percentage Yes 25 62.5 No 15 37.5 Total 40 100 Author (2012) Author (2012) On the factor of whether the company provides avenues for employee motivation, 25 0f the 40 respondents who were the same as 62.5% of the participants were of the observation that avenues for employee motivation are provided, while 37.5% of the respondents were of the view that no avenues are provided by the company to ensure employee motivation. This shows that there are employees who feel that the company does not motivate the employees (Downing and Clark, 2010). Question 3: Do you feel that your organization motivates employees using the following? Table 3 Employee motivation factors Frequency Percentage Job satisfaction 10 25 Participatory management 5 12.5 Recognition and promotions 10 25 Incentives and salary increment 15 37.5 Total 40 100 Author (2012) Author (2012) On the motivation factors employed by the company, the following results were achieved. 25% of the employees felt that the company provides job satisfaction as a way of motivating employees, 12.5% felt that the company employed participatory management, 25% felt that the company used recognition and promotion to motivate employees, while 37.5% of the respondents felt that Incentives and salary increment was used by the company to motivate employees. Question 4: Does motivation affect employee performance in your organization? Table 4 Employee performance in relation to motivation Frequency Percentage Yes 25 62.5 No 15 37.5 Total 40 100 Author (2012) Author (2012) On the study about whether employee motivation affects employee performance, 62.5% of the respondents interviewed were of the view that employee motivation has an effect on how they perform in their duties, whether positively or negatively. On the other hand, 37.5% of the 40 respondents interviewed were of the view that employee motivation and performance are not related; hence motivation does not affect employee motivation. Therefore, given the above feedbacks employee motivation is a great problem in the company and needs to be addresses so as the company can continue to deliver the best services to its clients. Majority of the respondents feels that the company has done something little of promoting workers motivation. They feel that employment is important for the growth of the company and better performance of employees. Since implementing employees’ motivation at once in the whole company it will be expensive the company will start implementing the policy at the departments’ level. The company will take a department and implement the policy for three months before moving to another department. The three months will help the company to carry out an evaluation on the effect of the employee motivation policy through comparing it with other departments which have not been involved in the policy implementation. The departments that had already been implemented with the policy performed far much better than those ones which were yet to receive the policy. This meant that the motivation policy was very important to the company for its better performance. Evaluation This part will look at the effect of the policy implementation have on the overall performance of the company. This will dwell so much on the positive contribution the implementation have brought to the company. The implementation of employee motivation policy have helped the company to increase its output in that the employees have Added their effort to realize their full potential because they feel that the company is appreciating what they do for the company to achieve its goals and objectives. The policy has also helped the company to be named the employee of the year and was awarded millions of dollars for how it is working to promote employees welfare in the country (Podmorrof, 2005). This has led to the company receiving a lot of job application more than any other company in the country because people feel that they have faith in such a highly rated company. The present ability of the company employees and how they handle their clients have helped the company to maintain their clients and to increase the clients’ base which has also led to increased revenue. The clients feel that the company employees work to their full potential to deliver the best results to their clients. Lessons learnt Employee motivation is very important to every company that is working towards delivering the best services to its clients; therefore, companies should ensure their employees are highly motivated so that they can perform to the best of their ability. Employee motivation also leads to the company increasing its revenue because the employees have the company’s interest at heart. The reason behind this is that they want to see the company growing. The performance of employees is highly related to how the company motivates the employees because they feel appreciated by the owners and the management of the company (Stine and Foster, 2011). The companies should ensure that the employees are motivated so as to realize their full potential. The company should have an evaluation system every year so as to take employees problems which should be solved by the management. This will help the employees to perform better towards the company’s goals and objectives. References Blalock, H., (1979). Social Statistics. 2nd Ed. New York: McGraw. Bruce (2003). How to Motivate Every Employee. Delhi: McGraw Hill. Bruggemann, R. (1976). As an empirical study of various forms of job satisfaction. Journal of Industrial Engineering, 30, 71-74. Dolphin Oil Services. (2012). Dolphin Oil Services information available on http://www.dolphinoil.com Downing, D., and Clark, J. (2010). Business Statistics. 5th Ed. Auckland: Barron Publisher. Herzberg, F. Mausner, K. and Snyderman, A. (1959). The motivation to work. New York: John Wiley & Sons. Kehoe, D. (2007). Motivating Employees. London: McGraw-Hills Education. Lauby, J. S. (2005). Employees Motivation. New York: American Society for Training and Development. Neuberger, A and Beck, P. (1978). Measurements and analysis of job satisfaction. Bern: Huber. Podmorrof, D. (2005). 365 Ways To Motivate and Reward. London: Atlantic Publishing press. Rosenstiel, T. (2001). Motivation in the operation: with case studies from practice. 10th Ed. Leonberg: Rosenberger Fachverlag. Stine, R., and Foster, D. (2011). Statistics and Business: Decision Making and Analysis. New York: Pearson. Read More