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Kuwait Petroleum Corporation Case study : (Management and Organizational behavior assignment) - Essay Example

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Running head: KUWAIT PETROLEUM CORPORATION CASE STUDY: (MANAGEMENT AND ORGANIZATIONAL BEHAVIOR ASSIGNMENT) Kuwait Petroleum Corporation Case Study: (Management and Organizational Behavior Assignment) Insert Name Insert Insert 17 October 2011 Outline Introduction KPC challenges Alternative solutions The best alternative solution Conclusion Kuwait Petroleum Corporation Case study: (Management and Organizational behavior assignment) Introduction Kuwait Petroleum Corporation (KPC) was established in 1980 as an integrated State-owned oil company that control government operating companies in the petroleum sector (IBP USA, 2008)…
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Download file to see previous pages Others include Kuwait Foreign Petroleum Exploration Company that deals with overseas oil exploration and upstream production; Kuwait Oil Tanker Company; Kuwait Gulf Oil Company that manages exploration and production in the Kuwait parts of the offshore and onshore Divided Zone; and Kuwait petroleum International, which manages abroad refining and retail sales. The company also markets its products in Europe under brand name Q8 and manages maritime transport fleet. Thus, its major includes oil production, refining, transportation, international marketing, petrochemicals, and local distribution of energy products. The KPC is one of the top-ten oil energy conglomerates managed by a complex hierarchy consisting of Board of Directors, which in turn reports to the Supreme Petroleum Council under Kuwait’s Minister of Oil as it Chief Executive Officer (KPC, 2009). Prior to 2005, KPC was locked in various management problems and internal feuding between groups, leading to many professional staff that had been pivotal in success of KPC over the years to seek early retirement. This led to a cry for reform from various stakeholders such as Parliament, labor unions, employees and economist in bid to improve KPC’s performance. That is why there has been need to study the company’s current situation and make recommendations on ways of improving the company’s domestic and international performance. The study will also focus on impediments and obstacles that affected management decision-making speed and execution of major projects. KPC challenges According to studies, KPC was faced by the following major problems. First, the government lacked clear perspective on oil industry and there were no clear future development goals for the oil sector. Secondly, there was duplication and overlapping of roles and organizational responsibilities between KPC and its subsidiaries. Thirdly, the company’s organizational structure is very sophisticated compared with other national and international companies, leading to absence of effective coordination within the company’s units. Fourthly, the company lacks effective management succession planning strategies due to conflict in authority conferred on leadership positions and loss of interest in developing leaders. Fifth, there is general interference in human resource management roles and the company lacks qualified personnel in some technical and managerial activities. Sixth, the operating procedures do not support accomplishment of strategic objectives. For example, the subsidiaries lack sufficient financial and administrative authority to initiate and carry out major projects, thus there is limited opportunity for progression. More so, government controls are a major constraining factor, considering that the company is expected to run on a commercial basis. In addition, most of employees are demotivated and lack a sense of loyalty to the oil industry. Further, the company lacks mechanisms and work methods to transfer technology, leading to reduced capabilities in advancement, ...Download file to see next pagesRead More
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