Management Theory and Practice-Communication Strategies - Papua Oil Search Limited - Case Study Example

Management Theory and Practice-Communication Strategies Student Name: Institution: Date: Introduction Corporate communication strategy is a concept that has not received much attention in public relations as well as management theory and practice. It is important to note that the integral role of communication played by managers is to ensure smooth functioning of their organizations (Hamilton, 2008). For example, focusing on their visions and missions, values and sustainable strategic management would not be an easy task without one major task of promoting strategic communication (Argent, 2002). Strategic communication can be defined as communication that is aligned with overall strategy of a company in order to achieve a sustainable strategic positioning. According to Paul, Robert and Karen (2005, p.83), the capability of an organization to develop an integrated and strategic focus to communication is critical to successful management. The authors examined that companies that recognize the importance of strategic communication are those managed by a CEO who has an intrinsic understanding of how communication makes businesses unique and drives a strategy. As best practices of the strategic communication, therefore, leaders entrusted with the role of promoting strategic management ensure that their corporate strategy becomes a driving factor for their communication choices. This implies that strategic communication leaders are skillful at tailoring all their communication activities either in support of the existing strategy or to drive the new strategy (Paul, Robert & Karen, 2005). A description of the organization Papuan Oil Search Limited (POSL) is engaged in the exploration of oil and gas as well as in the development of companies that operates in Papua New Guinea (PNG) since 1929. The main production operations of POSL are found in Kutubu, Gobe, Hides, Moran and SE Mananda. As its strategy analysis, POSL is involved in such principal activities as exploration, development and generation of the oil and gas within the Papua New Guinea. Gas has taken an increasingly precedence compared to oil business which is used to fund the gas expansion. The company has been publicly listed on Australian and Port Moresby Stock Exchange which in turn has earned itself a market capitalization of about 8.5 billion US dollars. In addition, POSL is the PNG’s largest oil and gas producer, currently operating throughout the region’s oil and gas producing fields. Given the Independent State of Papua New Guinea which has emerged as the company’s biggest shareholder with 15% interest, it can be noted that both the management and strategic focus on social, moral and ethical issues have become the common topics for discussion as far as this partnership is concerned. Research indicates that POSL has recently undertaken a scheduled strategic review as a focus to identify and develop its five year plan. The website for POSL is www.oilsearch.com and its communication policy is interlinked on the company’s Corporate Governance or Charters and Policies though it is only involved external communications. The company also has an intranet that is being used to communicate the objectives of each department and their working tools. For example, Annual Reports, Health Safety Environment Security (HSES) monthly meetings as well as job start meetings are the current forms through which the company uses to communicate to its workforce. However, the internal communication of POSL is not focused on so much. This implies that communication around the company’s mission and its strategic direction is very minimal. Identification of the mission and objectives of the organization The vision of Papua Oil Search Limited (POSL) is to be seen as an acknowledged leader in the exploration and development of oil and gas within the developing countries as well as emerge the top quartile performer particularly on the Australian Securities Exchange. The management of POSL has recognized that in order to become a leading company in delivering sustainability is to ensure sustainable livelihood in particular, for the future generations within their zones business operation. Oil Search Limited also works in collaboration with today’s generation to ensuring that sustainable solutions given actually meet the needs of current generation. A description of the organization’s approach to communicating its mission and objectives In order for the POSL to deliver sustainability, it highly recognizes values such as integrity, innovation in addition to partnering with the governments and those communities in which they work. Since the company is intensely aware of the major barriers that impede sustainable development in their zones of business operation, it is committed to supporting the national governments and the people to overcome such challenges in the future. The Papua Oil Search Limited in order to promote its sustainability governance principle, has developed a Sustainability Steering Group (SSG) which is supported by Sustainability Development Coordination Group that meets on quarterly basis so as to manage, coordinate as well as communicate their community development activities. POSL highly values that its success as the oil and gas producer is fundamentally linked to their capability to monitor and effectively manage both the environmental and social impacts resulting from their operations. Thus, the company is committed to the full implementation of inclusive social-economic monitoring practices within their local communities and the rigorous ISO 14001 of the Certified Environmental Management System. Through the principle of transparency, the Papua Oil Search Company is working to ensure that all their shareholders or stakeholders to become more confident in their corporate governance practices. Therefore, the company has continued to focus on improved information disclosure since 2011 to encourage investors to invest in their transparent environment. Oil Search Limited recognizes the dynamic nature their operations in developing countries. Since their strong financial performance relies heavily on their capability to monitor, manage the social and environmental global issues that specific to their zones of operation, the management of POSL has largely emphasized on the stakeholder communication or engagement in particular with the local communities, government and NGOs to help in the quick identification of significant issues that need to be addressed promptly. Analysis of the effectiveness of the organization’s strategy for communicating its mission and objectives Ensuring its sustainability, The Papua Oil Search limited through enhanced focus on the management of its operating risks, efficient external reporting as well as promoting transparency. It can be noted that the Oil Search Company has an effective strategy for communicating its missions and objectives for oil, gas production and development. The company also focuses on sustainability reporting through Annual Reports, publishing Sustainability Data Book, Case study book connections as well as a Summary Report for a PNG Sustainability in Tok Pisin. Through a multi-format approach, the POSL is able tailor the information that the company makes it accessible to the needs of different stakeholders of Oil Search. This indicates a significant step that the company has taken forward as far as communicating the sustainability journey of the Oil Search. Therefore, it is important to note that the reports mentioned above offers a clear overview of the major developments during the year and detailed analysis of the company’s performance and progress on various indicators. More information concerning how the content was selected and organized particularly for the 2011 sustainability reports is retrieved from the “About this Report section” within the front cover of the company’s Sustainability Report. Papua Oil Search Limited highly respects the rights of their shareholders, and thus focuses on communicating with them more effectively. The company has a communication standard that was specifically designed to support effective communication with their shareholders as well as encourage them to participate fully at their general meetings. It can be noted that when POSL holds significant investor briefings, for example, the half and full year outcome presentations, basically the electronic facilities like webcasting and the teleconferencing are commonly used to facilitate the wide participation. Therefore, it can be argued that the website for Oil Search is regularly updated so as to enhance a ready access to all shareholders to a balanced and easy to comprehend the information about the company’s business activities and progress. The Public Disclosure as well as the External Communications Policy for Oil Search is made available on the Company’s website under the corporate governance section. The content of the information on the website provides a detailed view of how investors can contact the investor relations team for the company. It is also important to mention that the company’s website has contact details for its external share registry, fax number, email details and the general inquiry line. Based on this communication links, it becomes relevant to argue that Papua Oil Search Limited has focused more on ensuring sustainable external communication with its Shareholders and Stakeholders. Suggestions for ways to improve the organization’s communication strategy In general, it is relevant to argue that all organizations ranging from the largest corporations to the smallest establishments benefits from an improved communication flow. This includes communicating vertically from supervisor to employee and horizontally among the co-workers (Marques, 2010). Since Papua Oil Search Limited (POSL) has focused more on external communication, it means that the company’s internal communication has been given little attention. Therefore, it would be important for the management of POSL to realize that communication within the organization will not always be smooth. This is simply because where people are involved or gathered there are possibilities of personal clashes, different levels of conflict as well as disagreements. The Oil Search Company should focus on building a climate of trust, involve in effective use of its formal communication channels, and encourage use of multiple formal and the informal channels of communications among their employees and managers. This will promote the upward and downward as well as horizontal communication so as to create an effective internal communication climate (Smith, 2008). Yates (2007, p.72) examined that effective communication practices have similar bottom line of influencing better-quality financial performance, ensuring viability through increased market premium and improved return to the shareholders as indicated in the diagram below. From the managerial function point of view, it is important for the management of Oil Search Company to acknowledge that the managerial functions such as planning and organizing as well as leading and controlling are based on communication (Antonio, 2009). This will require the management to ensure that their internal communication environment is effective rather than focusing only on their external communication environment. For example, the interpersonal roles require the management of POSL to often interact with a wide number of its employees who include supervisors, staff and other shareholders (Joep, 2011). Similarly, decisional roles fundamentally require the management of POSL to carry out thorough investigation of the kind of information that will enable them to make critical decisions. This means that effective communication will be required in informing the relevant people about their decisions. In enhancing their internal communication environment, therefore, the management of Oil Search Company needs to ensure that their managers’ communication is more purpose-directed (Tourish & Hargie, 2009). Thus, the company’s internal communication should direct the attention of each person who works for the company towards their vision, missions, values and the desired goals (Conrad, 2002). In doing so, the management of POSL will be able to effectively communicate and influence everyone to act in a manner that will enable the company to attain its desired goals (Samson & Daft, 2005). In order for the Oil Search Company to stay abreast, the management should maximize its capacity for ensuring effective internal communication. Therefore, the management should also focus on making their staff to be more efficient and effective rather than spending much of their time and resources on only external communication environment. It would be relevant to recommend the management of POSL to clarify their strategies and invest more in automation as well as get each person in the company participating (Welch & Jackson, 2007). It is important for the management at Oil Search Limited to recognize that the critical aspect to enhance their company’s capacity for communication is to increase the number of people to communicate with. Conclusion Communication need to be put at the heart of each organization because it is critical for the organizational success. Focusing on the Company’s visions and missions, values and sustainable strategic management cannot be achieved without one major task of promoting strategic communication. Papua Oil Search Limited (POSL) has focused more on its external communication, giving little attention to its internal communication environment. The Public Disclosure and the External Communications Policy for Oil Search promotes their sustainable communication with their shareholders and investors. References Argent, P.A., (2002). The Corporate Communication. New York. McGraw-Hill. Antonio, R., (2009).Internal Communication Management. Bookboon publishers. Conrad, C., (2002). Enhancing Strategic organizational communication: Contemporary Management: Harcourt Brace. Hamilton, C. (2008). Communicating for Results. Belmont: Thomson Higher Education. Joep, C., (2011). Theoretical practices for Corporate Communication. SAGE. Marques, J.F. (2010). Ensuring quality organizational communication, a presentation of reflection-based criteria, Journal of Communication, 14(1), 47-58. Paul, A, Robert, A & Karen, A., (2005). Strategic Communication is important. Management Review, 46(3), 82-83. Samson, D., & Daft, R. (2005). Management (2nd ed., p. 616). Melbourne, Australia. Thomson. Smith, L., (2008).Effective Internal Communication. Kogan Page Publishers. Tourish, D., Hargie, O. (2009) Communication and organizational success, in Hargie, O and Tourish, D (eds) Auditing Organizational Communication. Routledge. Welch, M., Jackson, P. R. (2007) Rethinking internal communication: A stakeholder approach to managing organizational Communications: International Management Journal, 12(2), 177–198. Yates, K. (2006). The effectiveness of internal communication environment enhances bottom-line results. Journal of Organizational Excellence, 25(3), 71-79. Oil Search Limited Website: www.oilsearch.com Read More