Organizational Management Change: of Gasco - Case Study Example

Organizational Management Change; case study GASCO NAME: INSTRUCTOR: INSTITUTION: COURSE: DATE: Abstract Purpose of the study- Organizational change is a hazardous attempt for any business. Greatest change inventiveness face challenges especially in their objectives in addition to high opportunity and process costs, which in most cases prevail over the benefits the company will enjoy in case of organizational change. This study pursues to come up with a basis, presenting hypothetical theories to analyse obstacles as well as factors likely to enable organizational change. Starting from the uniqueness of the organization view, this study intends to relate eventuality-based methods, like ecological scan, SWOT and shareholder analysis with understandings from research based on behaviour for organisations, like exchange of knowledge and skills in leadership among employees. Methodology- this is the method used to obtain information on organizational change. The main method the researcher applied in collecting data is field research into organization change in a global regulating business environment. Key terms- organizational change, costs of change, risk, international business environment. Introductory Statement GASCO is a company that produces natural gas in Abu Dhabi, UAE that was establishes in 1975 with its Headquarters in Abu Dhabi, United Arabs Emirates. GASCO is an affiliate of Abu Dhabi National Oil Company (ADNOC) owning 68% and the remaining percentage is owned by Shell Abu Dhabi, Total SA and partex; 15%, 15% and 2% respectively. United Arab Emirates is the 7th biggest reserve of oil worldwide; 97.8 billion containers of oil in Abu Dhabi with the highest production of over 3 million drums on a daily basis. In 2014, the company earned revenues of over $60 billion creating over 24000 employment opportunities. According to Al-Saleh, (2010), when investigating forecasts for a successful development of original and unique industrial collections, invention researchers prefer ‘systemic failures’ as opposed to ‘market failures’ so as to arrive at appropriate policy actions when considering organizational change. Examples of systemic failures are institutional and regulatory insufficiencies leading to sub-optimal knowledge creation investment and related inventive pursuits. In order to evaluate the rise of the CCUS segment in the United Arab Emirates (UAE), finding prevailing systemic failures such as obstacles and opportunities could allow the researcher to get a detailed knowledge of the prevailing growth in a given sector and therefore evaluate its performance to determine whether it requires any changes. Policy makers in the United Arab Emirates (UAE) are likely to gain as a result of having a better understanding of the basic circumstances that are required in order to successfully strategize the development of the Carbon Capture Utilization and Storage (CCUS) sector in the company. To date, the invention system framework has been used to evaluate the performances between countries and industries. For example, in the CCUS ground, Van Alphen et al. (2009) utilises the systems of inventive structure, mainly the Technological Innovation System (TIS) to study the challenges and opportunities facing countries that engaged in the CCUS developments ADNOC in Abu Dhabi; Norway, Australia and Canada. Executive Summary This study is aimed at determining how organizational will affect the business activities of the organization as well as the surrounding environment. During the study, the researcher will develop theories to better understand the concept of organizational change and its effects. From the study therefore, the researcher will be able to conclude if organizational change is necessary in an organization and provide recommendations on the same. Introduction Organizational change is an important but risky move for a business organization due to costs expected to be incurred and the effects the change will have on the business activities of the organization. Many researchers have provided insights into the issues that are related with organizational change. Many organizational changes however deal with issues with less impact as compared to acquisitions and mergers and the business is expected to face minimal threatening effects. Hitherto, changing projects with smaller opportunities makes them disposed to poor preparation, unsatisfactory outcomes and unintentional costs that avert the company’s resources from operational responsibilities, interrupt well-organised procedures, and destroy the trust of employees and shareholders in an equal manner. Organizational change focuses on micro, meso and macro views. Micro view, this view analyses how organizational changes will affect human life in general including their attitudes towards the change as well as their perceptions on the same. Secondly, the meso view addresses issues that are related to the organizations perspective of the organizational changes, as well as effects that organizational changes will have on the company operations and if the change is influenced by identification and institutionalisation procedures of an organization. Finally, the macro view assumes the lens of organizational environment to research on structural reproducibility and organizational apathy, the effects of production and organizational change on its fitness and effectiveness, eventually on the threat of extinction. According to Will, M. (2015), before implementing organizational change, managers should keep in mind; Extent of planning: Though specialists have different opinions on the extent of change that a company can plan for, managers are needed to take it a step at a time in order to come up with the conditions which will permit as well as inspire change to occur. Degree of change: Modifications may bring about differences in the company in that the change will alter the how the company operates entirely. This will lead to changes in the organization of the company in terms of personnel depending with the change. Degree of learning: This aspect is concerned with the extent to which other members in the organization are actively involved in the process of organizational change. The more members are involved during the process of change, the easier it will be for the managers to implement the changes unlike when other members have no idea on the changes that are being implemented especially if the changes affect them directly. Target of change: programs used during organizational change differ with respect to the departments that are targeted by the anticipated changes. Some changes are intended to impact the management team so as to help them become stronger and better leaders while other changes may include basic knowledge, such as customer care service techniques for the subordinate staff. Therefore, the aim of change in an organization is important in the sense that managers are able to concentrate on the departments that require change and not the whole organization which could be costly for the organization. Organization's structure: the structure of an organization contributes highly towards organizational changes. Some of the questions that guide managers on whether to implement changes include; is the organization very rigid and bureaucratic? There are institutions which exhibits stiffness and bureaucracy hence may need to “loosen up” while others do not have management structures hence managers are required to stress on policies and rules which govern the activities of the organization itself. Issues to be addressed i) Poor management ii) Funds required for change iii) Technological advancements iv) Change in market demand v) Misuse of company resources Discussion of the Issues i)Poor Management Poor management skills have long-term impacts in the company and therefore may infect the whole organization because the results of poisonous, ill-advised leadership reach far and wide. Hence poor management has various effects in the organization; Instilling fear- Corrupt managers intimidate an employee’s by threatening to take their jobs. As a result, employees will spend company time to look for jobs in other organizations due to the fear of them losing their current jobs. Such managers have the habit of assigning blame, withholding information and answering questions in an unclear, evasive manner. In cases of such situations, the company will consider changing the organization’s management department so as to avoid losing employees since hiring and training new employees is expensive than hiring a new team of managers. Solution: Creating a working environment that is based on trust and trustworthiness. Employees should not be stressed in the work place as a result of worrying if each day is their last. A good manager ought to be transparent by sharing relevant company information with other employees. Instead of blaming others, a manager takes responsibility while turning let-downs into opportunities for company growth. The worst mistake that a manager can make is creating a negative working environment. Avoiding Recognition- when employees have done a good job, it is important for the management team to recognize and appreciate such employees. Failure to recognize hardworking employees they don’t feel to be of any value in the organization and hence end up working in fear of committing a mistake. Solution: Good management skills include the ability for the manager to communicate effectively with the subordinate staff and also let employees know that their efforts are valued. Creating a negative environment- by committing the above mentioned factors, managers as well as top level officials make working environment negatively energised. When employees are stressed and anxious, their productivity reduces significantly. Features of a unfriendly work environment comprise of policies which are not consistent, partiality and a lack of proper management practices. Solution: ensures company policies are consistent and treat all personnel fairly and also be available whenever needed in the organization. ii) Funds required for the purposes of change Availability of funds will determine if the form of organizational change required will occur or not. Organizational change requires a lot of funds which may or may not be available to the company, therefore, before implementing the organizational change, the management team should consider if the company’s funds will be sufficient. Solution: management, through the accounting department should estimate the budget for the changes hence they will have an idea of the amount of funds required for the change. iii) Technological advancements- advancement in technology implies better methods of production and high quality of output. As much as technology is associated with better methods of production, the cost of upgrading technology in an organization could be high which some companies cannot afford. Therefore, managers should consider the advantages of upgrading the company’s technology system and cost of upgrading before implementing it. Solution: the company should keep up with the changing trends in technology and adopt those that are both affordable and also advantageous to the company. It is important to note that note all technological advancements should be adopted by an organization. iv) Changes in market demand- demand and supply is affected by factors such as product prices, prices of substitute products, political stability and market share. A stable economy will encourage currency circulation maintaining market demand and supply. If the demand of the company’s products has dropped, managers should consider making changes in the sales and marketing department in terms of revising their methods of advertising, product packaging as well as product prices. Solution: the company should change the packaging of its products and also revise on their prices in case their prices are way high than those of substitute products. v) Misuse of company resources- resources are considered to be misused if they don’t perform what they were intended to. Some managers take advantage of company resources for their own personal gain which may bring about losses in the company. Solution: managers should ensure that company resources are used for the purposes of the company and not personal reasons. For instance company vehicles, where some employees may use them to run their personal errands instead of those of the company. Summary and Conclusion GASCO is a natural gas company that is established in Abu Dhabi, United Arab Emirates (UAE) earning over $60 billion in revenues yearly. Therefore implementing changes will affect the overall running of the company activities hence it is important to consider the requirements for the change and its effects on the company. Organizational change is a basis that is used to manage the effects brought about by adopting new business processes, changing the structure of the organization or social and cultural changes within a company. It is important to note that changes important in any form of business setting especially if the business organization. From this study, the researcher discovered the factors under which a company should consider organizational change and also the issues under organizational change. Recommendations Managers should take time in studying the changes that the company needs so as to ensure that they have full knowledge on the same so as to make the correct decisions. This will enable managers to make informed decisions concerning the changes they decided to implement. In the cases of technological advancements, the company should not adopt any form of technology for the sake of it. Different forms of technology are applied by different companies in different department and therefore managers should consider the form of technology that is consistent with their products as well their production methods. A company should have consistent policies over a given period of time instead of changing policies each and every time which may discourage employees from performing their duties as required of them. Recognizing employee efforts; recognizing and awarding employees is important in that they will feel appreciated and needed encouraging to work hard so as to fulfil their duties in the company. Finally, managers should avoid favouritism in the work place. Some managers have a tendency of favouring a certain group of people in the office which could send a negative message to other employees. A good manager should treat all employees equally no matter their duties be it high ranking employees or the subordinate staff so as to encourage equality among employees. REFERENCES Journal of Accounting & Organizational Change. (2010). Journal Of Accounting & Organizational Change, 6(2). http://dx.doi.org/10.1108/jaoc.2010.31506baa.003 Will, M. (2015). Successful organizational change through win-win. Journal Of Accounting & Organizational Change, 11(2), 193-214. http://dx.doi.org/10.1108/jaoc-06-2013-0056 Al-Saleh, Y. (2010) ‘Systems of Innovation as a conceptual framework for studying the emergence of national renewable energy industries’, World Journal of Science, Technology and Sustainable Development, Vol. 7, No. 4, pp.309–334 Read More