Performance Gap Analysis - National Drilling Company - Case Study Example

HRM 515 Central Issues in Human Resource Management Performance Gap Analysis Workbook September 2012 Participant Name __________________________________ Group ___________________________________________ Part A. Symptoms Big Problems in Organizations, Involving People 1. National Drilling Company has to deal with the issue of high employee turnover as employees look towards leaving one organization and country and moving towards other. This has affected the overall level of assets base especially the human asset has made it difficult for National Drilling Company to be able to carry out the operation in a similar manner. 2. The manner in which technology is changing has increased the cost and pressure on the organization to have the required workforce that will be able to deal with the impeding changes in technology. This has increased the workload on the management as being able to find out the required employee or provide the required training to the employees to be able to carry out the work has become a difficult task. 3. Increasing legislation and health reform from the government which is aimed at ensuring that the employees are protected and the risk levels are reduced has multiplied the problems. This is on the backdrop that National Drilling Company has to ensure that human life is preserved and being able to do so reduces the amount of innovation and development that the organization can look towards and has thereby affected the overall employee composition. Part B. SWOT Analysis: External Factors Threats and Opportunities Economy The present economic condition of Abu Dhabi is one where the economy is slowly witnessing growth and has a low long term interest rates. The overall economic situation is one where there is a fiscal deficit and the taxes are low. This has been coupled by the fact that mining and drilling activities have decreased as recession which is prevalent almost all around the world has reduced the demand and made the process more competitive. In addition to it the present economic condition has also made companies reduce the amount of investments which was made towards training and development of people working in the industry and has thereby highlighted the condition of the economy which is slowly recovering. Competition The degree of competition for National Drilling Company is limited due to the fact that there are very few companies in Abu Dhabi which are as big as this one. Despite it National Drilling Company faces competition from the other smaller players and international players. The problem has compounded on the grounds that the economic conditions is slowly recovering so at the present mment there are few projects which has increased the degree of competition as all the players look towards the same small number of projects which has intensified the degree of competition. Technology National Drilling Company has the up to date automated machines which are capable of drilling rigs anywhere in the world with minimum risk. The company has also the best employees available which have ensured that the assets which they have are used in the most appropriate manner. National Drilling Company looks towards adding continuous assets to their asset base and has recently added 10 jack-up rigs and one self propelled jack-up barge. The manner in which National Drilling Company has grown their physical assets to keep in conformity with the changing technology has enabled them to carry out difficult operations and has been able to create a niche market for its products and services Social Factors The culture present in the country shows that the people have high skills which have resulted in the development of new and innovative ideas through which the process of finding new ways of doing things has been developed. The wage rate prevalent in the economy is high compared to other countries which have helped to attract people from other countries as well. The high per capita income has helped to improve the standard of living and has brought about the transformation that was required. This has thereby ensured that the people are able to work and ensure a healthy income. This has been added by the fact that the newer generation has people with knowledge and experience in the drilling sector which has affected the social cultural factor in the country. Political Changes The government in Abu Dhabi is stable which has ensured that the policies can be easily implemented. This has brought about widespread chances in the economic reforms and ensured that foreign direct investment is allowed in the sector. This has resulted in the transportation of new methods and innovation along with skills among the employees which facilitates the process of drilling. This has also helped the entire society as the government has also improved the level of education and the overall effect has been such that it has enabled the economy to project better growth rates. Legal Environment National Drilling Company has to look towards obtaining the required permission from the concerned government authorities as well as environmentalist before carrying on with the process of drilling rigs. The legal aspect requires that the safety aspect of the employees is also considered and the overall process through which National Drilling Company will be able to contribute towards the society is looked at. This has been an aspect which has been properly followed by National Drilling Company and only after obtaining the required clearance and permission the company has gone ahead with the process of drilling rigs. The company has ensured that all aspect with this regard is looked at and after meeting all the requirements steps are taken in this respect. Part C. SWOT Analysis: Internal Factors Strengths and Weaknesses MISSION STATEMENT National Drilling Company has identified a mission statement for its employees and associates which follows from the vision statement and is to ensure that they provide oil, gas and water services to the society while confirming to the high safety and environmental standards. This goes in line with the vision statement where the organization looks towards providing high quality and efficient drilling so that they can be judged as a symbol of excellence. This will thereby become an example for others in the market to replicate and will create a distinctive brand image which is aimed at improving the overall quality of services. The company has looked towards working in the direction and has developed the required parameters and business models which will ensure that they are able to achieve their objectives. This has helped the management to get a direction and based on which the resource requirements like employees, materials, techniques and skills are being developed. National Drilling Company has thereby been able to develop their business and ensure that they are able to keep up with the vision and mission statement so that the business moves on track. VALUES National Drilling Company has looked towards devising the different values which they look towards achieving from the resources they have at their disposal. This will also act as a step through which the company will be able to work on the different fundamentals and ensure better opportunities for the future. The different values which National Drilling Company looks towards achieving are as HSE Commitment: Focus towards ensuring that while during the process of drilling no harm is done either to the people, the environment or the assets. Customer Focus: Focus on working towards the customer expectations by delivering superior services which are as per the requirements of the customers Leadership: Ability to lead, guide, help and solve the issues that are present so that the entire work force can work together towards a common goal and looks towards achievement of the objectives of the business and hence their mission statement. Teamwork: Work together as a single unit where the individual contribution and skills are used through proper communication, trust, faith and respect of each other. This will ensure that the entire organization works as a single entity and looks towards working for a common purpose. Ownership: Ensure proper commitment which will lead towards responsibility and accountability and will ensure that each person looks towards being responsible for their actions. This will give a sense of pride and ensure increase commitment towards a common goal. Empowerment: Decentralizing the entire process of decision making by giving additional powers and authorities to employees at all levels so that they are able to carry out their functions effectively. While looking to do so special care and emphasis has been made to ensure that no employees misuse the powers or authorities which have been entrusted to them. Professionalism: Adhering to the required standards, values and responsibilities while dealing with employees, customers and other associates so that every one associated with the company keeps up the brand image of the company. This will help to garner the required professionalism which will thereby ensure that the coordination among the employees and others increases at all levels. GOALS The goals which National Drilling Company looks towards achieving are as follows Ensure continuous performance which matches the highest standard in the industry and look towards being in the top quartile when benchmarking for the standards and drilling contract is being carried out any where in the world. Ensure that there is optimum availability of rig reliability, integrity and assets requirements so that the organization is able to work on offshore rig programs and it falls under the purview of the Rig Integrity Assurance Program Understand the requirements of the customers and look towards working on their needs so that better drilling process can take place and will help to achieve higher level of customer satisfaction. Ensure that the process of selecting employees is developed in a manner which looks towards attracting, retaining and providing the required training to the employees so that the organization doesn’t run short of labor and is able to contribute towards the economy by providing high employment rates Improving the financial performance of the organization by developing process which helps to reduce cost and at the same time ensures that a fundamental which helps to adhere to the corporate governance norms and the international standards is developed. Human Resources National Drilling Company has looked towards hiring employees on a continuous basis and looks towards filling the gaps which exist within the industry so that better and superior performances can be delivered. National Drilling Company is on a continuous look out for employees with superior skills and knowledge and also looks to improve the skills and knowledge of the employees by providing the required training to them. The organization has employees adhering to the offshore and on shore requirements and has employees like rig manager for off shore business, rig manager for onshore business, assistant manager for both off shore and on shore business, barge engineer, driller, electrician, mechanic and so on. National Drilling Company has ensured that they have employees adhering to all the requirements and needs of the organization. This has thereby ensured that the company is able to carry out their duties and responsibilities in a better manner. The fact that they are on a continuous lookout for people to fill the various responsible position within the company has ensured that the delivery standards are high and the organization doesn’t has a shortfall of employees. Management National Drilling Company who has Mr. Abdulla as the CEO has ensured that they hire the required personnel that will help them to carry out the activities. The company has followed a decentralized form of organizational structure where authority and responsibility is passed on to the lower levels. This has helped to develop managers at all levels and the coordinated efforts of all have helped National Drilling Company to be able to achieve the objectives to a large extent. The fact that the management is flexible and open to new and innovative ideas has ensured that the organization is able to work on all the fundamentals and based on it ensure that they are able to control the different projects and the entire team in the most beneficial manner which will ensure better use of the resources and ensure brand building. Image National Drilling Company has a sound brand image which is evident from the fact that the company has around 10 off shore drilling and 18 on shore drilling projects being carried out. The fact that National Drilling Company is on the best drilling and renowned company in the region has also ensured that the image of the company has improved and can be entrusted with carrying out different responsibilities (Nurdin, 2011). The prime reason for improving their brand image is that National Drilling Company is different from the competitors and looks towards adhering to the high international standards and preserving the environment, employees and others associated with it. In addition to it the strong values, culture and vision has enabled National Drilling Company the company to build the required confidence on its employees and develop the entire process through which better image of the company is possible. Capital (Funding) National Drilling Company has being performing over decades which has helped them develop the required funds which are necessary for financing the different projects. In addition to it National Drilling Company also looks towards raising money from the market. The superior brand image and the ability of company to deliver on the high international standards have ensured that financing doesn’t become a problem for the company. This has helped National Drilling Company to take projects which are of high stature and financing those has become an easy aspect for the business as financing is not a big issue that National Drilling Company has to deal with. Physical Assets National Drilling Company has the up to date automated machines which are capable of drilling rigs anywhere in the world with minimum risk. The company has also the best employees available which have ensured that the assets which they have are used in the most appropriate manner. National Drilling Company looks towards adding continuous assets to their asset base and has recently added 10 jack-up rigs and one self propelled jack-up barge (NDC, 2012). The manner in which National Drilling Company has grown their physical assets to keep in conformity with the changing technology has enabled them to carry out difficult operations and has been able to create a niche market for its products and services. Marketing Price: National Drilling Company has ensured that the price is as per the rates prevailing in the market. The company has ensured consistency in the area of pricing and looks towards charging its customers appropriate price. This has helped to build their brand image and has helped the economy in a long way to be able to bring about the required changes through which developments can take place. The overall pricing mechanism is effective and ensures that the cost which has been incurred is covered. Products: National Drilling Company looks towards providing different products and services like drilling contracts which includes both off shore and onshore drilling activities. In addition to the company provides significant services like directional drilling, drilling system and wire line services. Performing a wide range of services has ensured that the risk gets distributed over the different activities which are being performed. Place: National Drilling Company looks towards carrying out their activities in and around Abu Dhabi but has been looking towards developing its horizon by ensuring that they are able to carry out business in any part fo the world. The manner in which technological integration has taken place has made it possible for National Drilling Company to carry out operations along different places. Promotion: National Drilling Company uses it superior standards and brand image to promote its services. The fact that the company has a strong brand name and looks towards using those has acted as one of the main mechanism through which the business looks towards promoting itself. In addition to it the government support from different quarters has helped to improve the overall level of services and promote the company. Part D. Symptoms and Causes Symptoms Summary from Page 3 The employee turnover rate is increasing and the changing technology has made it difficult to find employees according to it. In addition to it the cost of hiring new people has increased and with different avenues and improvement in the education level people look towards different avenues. In addition to it the manner in which health related issues have grown has multiplied the complexity to ensure the employees hired are as per the business requirements. Causes (based on information from your SWOT analysis) National Drilling Company is witnessing such a situation because of the increase in competition and the recessionary conditions which was prevalent in the economy. In addition to it the overall strength of National Drilling Company has been to deliver according to the international standards and the problems has multiplied due to the fact that all the activities have to carried out with the same employees which is slowly decreasing. Part E. Recommendations National Drilling Company has to look towards ensuring that the process of hiring is improved and employees who are selected are retained for a longer period of time. This can be done by providing lucrative offers in the form of salaries along wit other incentives. Also providing the required training will help to keep the employees in touch with the changing technology and will require a complete transformation so that better standards can be achieved by preserving the resources in the most effective manner. Performance Solutions Current Task Performance Desired Gap Outcome Deliver high standard Improve training Improve satisfaction among employees Retaining Employees Provide high wages Get a pool of regular employees Reduce turnover of employees Better performance evaluation Improve turnover rate THE NATURE OF THE PERFORMANCE GAP: Is it worth fixing? Yes KSA Gap? The gap which National Drilling Company is witnessing is in the manner the organization is able to retain employees and provide the required incentives and training through which better employee retention strategy can be developed. Rewards? Help National Drilling Company to be able to deliver high standard performance matching the international standards Feedback? Require introspecting and looking into the manner the organization has changed over time so that necessary developments and steps can be taken to improve the overall process Other Obstacles? Resistance from employees or others in the society which has to be dealt with. Solution Tools: Do you have task problems or people problems? People Problem Work Tools / Technology: Look towards ensuring that the technology integration tales place at the same pace so that resources are used in the best possible manner Training: Provide the required training so the employees become more satisfied and look towards working for the organization for a longer period of time Change the job: Look towards job rotation so that people are transferred from on job to other which will ensure that the same work hasn’t to be carried out again and again Transfer: Look towards transfer so that people are transferred from on job to other which will ensure that the same work hasn’t to be carried out again and again Terminate: Terminate people who are not able to deliver on the required standards and should be done only after giving appropriate chances to the employees to demonstrate their skills. Solutions design and delivery: National Drilling Company has to look towards ensuring that the process of hiring is improved and employees who are selected are retained for a longer period of time. This can be done by providing lucrative offers in the form of salaries along wit other incentives. Also providing the required training will help to keep the employees in touch with the changing technology and will require a complete transformation so that better standards can be achieved by preserving the resources in the most effective manner How to measure outcomes of the solutions you are recommending The outcome can be measured by seeing the manner in which the employee turnover will reduce. This will be facilitated by the fact that the employees will be able to use the resources in the better way and also ensure that they are more satisfied. This will thereby get reflected in the manner the organization works and will be able to experience high standards. What is your expected cost / benefit analysis? The expected cost for National Drilling Company will be cost that has to be incurred on training and the additional cost of different non monetary incentives which the organization has to do. This will benefit the organization more as retaining employees will become easy and will thereby help to improve the turnover rates. References NDC. 2012. National Drilling Company. Retrieved on Feb 20, 2013 from http://www.ndc.ae/workndc.jsp Nurdin, A. 2011. National Drilling Company. Retrieved on Feb 20, 2013 from http://www.zimbio.com/Lowongan+Kerja+Karir/articles/dF2Ya2kguWp/Lowongan+Kerja+2011+National+Drilling+Company Read More