Quality Management Programs

Quality Management Programs

Saudi Aramco, formerly the Arabian-American Oil Company, which officially is Saudi Arabian Oil Company is a company for natural gas and the national petroleum company for Saudi Arabia. The company has its headquarters in the city of Dhahran in Saudi Arabia. It falls among one of the largest companies globally according to its revenue. It is also considered as one of the most profitable companies in the world. It is regarded as one of the companies that have most oil reserves and ranked as second in producing oil daily. In December 2019, it started trading in the stock exchange seeing its capitalization rising through the roof. Saudi Aramco is responsible for operating the globe’s single most extensive network of hydrocarbon. The company also manages over one hundred gas and oil fields in Saudi Arabia. Some of which include the Ghawar Fields, which is the most significant onshore fields for oil and the worlds largest field for oil that is offshore known as Safanya Field (Ramady, 2018). The paper looks into the background of Aramco as a company. It gives reasons why process approach works for the organization and how the program can help it in its performance.

Saudi Aramco traces its roots in the error of World War I. During this time, the United States had an “Open Door Policy” and was looking for oil in new places. In 1932 it had struck oil which increased their interest in Arabian mainland. During this time, oil drilling continued and was fruitless for six years. In 1938, success came in at Dhahran and produced about 1,500 barrels of oil per day. The triumph pushed the company to drill oil, and by 1944 they decided to change the name to Arabian American oil company. Aramco continued growing, and at around 1951, they discovered Safaniya Oil Field followed by Ghawar Field in 1957 (Aramco, 2016). The company then ventured into gas. The gas venture enabled it to increase income, attracting a lot of interest from major investors. Through strategic planning and hard work, the company is currently one of the leading in terms of the revenue it generates and the quality of its products.

Process approach is a quality program that enables an organization achieves its objectives and goals. The reason why this program is chosen is that it enhances individuals, an entire company or a particular department. However, for the system to work, it depends on how it is approached in terms of measurement. It is also dependent on planning and the management skills of an organization. The management of Aramco is required to ensure that employees see such programs as a way to improve their skills. The organization is also necessary to include every individual for the program to work successfully. It is the responsibility of Aramco as a company to include everyone in the planning process. The main reason why this program is right for the organization is that it contains individual performance, traits, behaviour and results. Process approach program is best suited for the company’s all-round growth. By displaying management and documentation skill to track performance, managers will be able to achieve the desired goal.

The program is chosen because of the many advantages it has to the organization. One of which is that it helps the organization retain its employees. Since the program can be used to improve the skills of an individual employee, the employee is adding value to himself and therefore, will opt to remain in the company. When the program is delivered correctly, that is, managers showing employees that they are not being punished, the employee will choose to remain in the company (Shields et al., 2015). The organization, therefore, retains it, skilled employees. The same workers will also be loyal to the company. Since their performance is also improved then the company will produce quality products.

The other organizational benefit is that due to the skilled workers, there is improved productivity. Since Aramco is a big company and produces a lot of barrels of oil in a day, they require qualified employees who can work first while still maintaining a high quality production rate. Additionally, the program will enable the company to overcome its communication barriers, since it’s a program that is all-inclusive, every worker will feel free to communicate their thoughts to their managers (George et al., 2016). This encourages new ideas that may be useful to the company. Process approach systems will provide the organization with clear accountability and help the organization in cost-cutting.

It benefits not only the organization but also the managers through ensuring that they save time. Additionally, it has the advantage of reducing conflict among employees. It does so through improving communication (Faheem, 2018). The other reason why the quality program is chosen is that it ensures that workers are efficient and consistent in their performance. Managers have an easier time if the application is implemented correctly. The other advantage is to the individual employee. It classifies employee’s expectations and provides them with self-assessment opportunities. It also ranks work responsibilities and adds to enhancing the performance of the employee. The other reason is that it helps employee define their career paths and improves their work satisfaction. Through clearly defined objectives or goals, frequent assessment of employees individual performance and organization-wide necessities can aid in highlighting corporate competencies (O’Neill, Sohal, & Teng, 2016). Additionally, it clearly defines the significant skill gaps that are useful for training and designing employees’ development plans.

Process approach can be used to improve the performance of Saudi Aramco through the measurement approach (Gerrish, 2015). Saudi Aramco can take a variety of methods to measure performance to improve the general performance of the organization. For instance, they can use the trait approach, which involves looking at performance based on the individual instead of behaviour, situation or results. The aim is to improve organizational performance by evaluating different characteristics of an individual that may affect performance. The management, therefore, can tell whether the individual can perform at given standards or not.

The other way of implementing this program is through the evaluation of behaviour. The management focuses on how a particular job has been done without taking into account traits of employee. The administration, therefore, can tell whether a specific task has been done in the manner that is required (Abro, Khurshid, & Aamir, 2016). The management can use the information gotten from this to improve on areas that were overlooked earlier and considered less important. The outcome is that the quality of the product is developed and also enhances the level of production. The other way the company can use the program is through focusing on the results. The outcome of the product is what is evaluated. This ensures that the product quality is excellent, regardless of who carried out the task.

Measuring behaviour is also another way that the program can be used to improve organizational performance. The process approach is hugely applicable in this case. An individual is ranked against one another in the organization. Traditionally, employees were ranged from the one who performs best to the one who performs last. The other ranking system is forced ranking system. This is a system that groups employees using the traditional way and the percentage way. Poor performance is ranked separately, while top performance is ranked independently (Sharma, Sharma, & Agarwal, 2016). The once whose perfume best are rewarded. This pins employees against each other performance-wise. The organization benefits from competition among employees because everyone will be striving to be paid.