ADNOC offshore company

ADNOC offshore company

• Purpose and goals of the organization

ADNOC offshore is a national oil and gas company of Abu Dhabi and is an integrated group of many energy companies. It is a state-owned organization of the United Arab Emirates (UAE) whose activities include developing and delivering the oil and gas resources in Abu Dhabi waters. ADNOC offshore produces approximately 1.40 million barrels of oil per day and around 3billion cubic feet of gas per day. This makes the company one of the largest energy producers in the world (WHO WE ARE, 2019).

1.2 Products, Services, and customers of the Company

Products: The product portfolio of this company mainly includes the production and distribution of oil and gas. The main products of the organization are crude oil, raw gas, and condensates, which are produced from several locations, including the newly constructed artificial islands and well-established fields.

Services: The services are inclusive of exploration, production followed by storage, refining as well as distribution and delivery. These also include applying innovative ways of maximizing the resource value and creating approaches and technologies that will meet the increasing demand for the energy market.

Customers: The products of ADNOC offshore are distributed mainly to government customers in UAE that further serve over 3.5 million customers every month.

1.3 Analysis of external factors and their impact on business activities

The external factors affect business activities of ADNOC offshore in the following manner-

Political – UAE is well known for a stable political structure that is inclusive of favourable government policies and well-defined rules. These support the overall working of ADNOC offshore. Further, the company has healthy relations with the government of Abu Dhabi, and so it receives proper support in all political matters.

Economical – UAE has the most advanced power sector in the MENA region, which has always favoured the growth of all companies in the energy segment. Apart from this, UAE is into various infrastructure development projects, which have created more demand for the products and services offered by the oil and gas company. Also, high disposable income and high GDP favours the sale of the products provided by the company.

Social – The oil and gas sector of UAE has grown exponentially since recent years. This is mainly because of increased population along with upsurge in the development of infrastructure projects and industrialization. Owing to this, the demand for products and services offered by the oil and gas company has also increased. Also, an uprise in the level of education has increased demand for refined petrochemical products.

Technological –ADNOC offshore has always executed the latest technological advancements for carrying its operations in the field of oil and gas production and storage as well as distribution. All the methods adopted by the company comply with international standards, which make it technologically sound.

Legal – The company has always complied with industry rules and regulations which are implemented to carry out the operations successfully. The regulations are related to health, safety, and security of labor which is adhered with full precautions. Apart from this, ADNOC offshore recruits UAE nationals according to the Emiratisation efforts undertaken by the UAE government.

Environmental – The company has continuously focused on the optimum utilization of resources and reduction in pollution emission. The management also emphasizes on sustainable development by investing in renewable energy technology (Dany and Torchy, 2017).

2.1 Structure and Functions of the company

ADNOC offshore has a hierarchical organizational structure in which there is a direct chain of command from top to bottom. The company is being led by the CEO, followed by the head of finance, marketing, operations, manufacturing along with public relations and human resources, and these have a chain of authority. In the hierarchical structure, senior management is responsible for making critical decisions that are then passed to lower levels of management. Owing to the hierarchical structure, managers of various departments focus on the overall flow of work and smooth running of the day to day activities. Work is also appropriately distributed among staff members by the managers of various departments. Then, work performance is also measured and evaluated by the managers in the correct manner (Dany and Torchy, 2017).

The various functions within the organizational structure of the oil and gas company are as follows–

• Operations – This function is responsible for managing the raw materials, manufacturing, and storage of finished products and their supply.
• HR- This function of ADNOC offshore lays focus on proper recruitment and selection of employees along with their training, development, and compensation.
• Finance- This department of ADNOC offshore focus on all financial aspects and capital investment decisions. This also includes managing the assets and liabilities of the firm.
• HSSE- Health, safety, security, and environmental function of the company plays a vital role in protecting the labor and staff.

2.1 Structure and Functions of the company

All the functions of ADNOC offshore work in collaboration with one another to achieve a common goal. For example, the HR department of the oil and gas company collaborates with operations, finance, marketing and manufacturing departments to know about the attributes of personnel required for the desired post. Focus is further given by the Hr team to know about the number of staff members needed to be recruited at a given time. The HR also coordinates with the finance department to manage and organize funds for carrying recruitment and selection as well as training and development. Also, rewards and compensation are being decided by both departments. The research and development department synchronises with operations to analyse new explorations and market demand of the products related to oil and gas. Logistics department works with finance and operations department to ensure appropriate allocation of funds for carrying the processes and to ensure timely delivery of products in a cost-friendly manner (Rees and Smith, 2017).

2.3 Culture of the organization and its effect on operations

ADNOC offshore adhere to the hierarchy-oriented culture, which is controlled and structured by laying focus on stability, efficiency and doing things in a correct manner. This type of culture also emphasises on innovation in the oil and gas industry to keep the business remains at the forefront. The hierarchy culture further focusses on working in collaboration with partners and peers, along with having mutual respect for every member of the oil and gas company. With this, it emphasizes on attaining high professional and ethical standards. Teamwork is encouraged in this culture which leads to understanding and building relations between management and staff. With such type of hierarchy-oriented culture, the ADNOC offshore can achieve and deliver results in the best possible manner. The targets can also be attained, and timely delivery and distribution of oil and gas products can further be ensured. Through the usage of hierarchy-oriented culture, the company can maximize the value of energy resources so that people and the entire community is at the benefit. The culture has made the company flexible enough to meet changing market demands appropriately. It is now capable of taking advantages of opportunities for future growth and long term sustainability (Jeske and Shultz, 2016).

3.1 HR Activities supporting the organization’s strategy

The HR activities of a company are such that these support strategy of an organization. Similar is the case of ADNOC offshore where the role of HR is significant in attaining success-

• Organizational policies – The HR management of ADNOC offshore have always encouraged a culture of support, positivity and collaboration with effective teamwork. The administration is involved in various other procedures such as job design, job planning and career development as well as performance appraisal. All these ensure that employees perform with a dedication to attaining goals (Carlsson-Wall, Håkansson and Kraus, 2018).
• Work culture- The company has inculcated a rewarding environment where employees are being judged fairly and rewarded based on their performance. This is done so that employees work to the best of their potential.
• Employee benefits- It is the responsibility of HR to take care of employees by providing them various benefits such as flexible working hours, leave for family care, medical facilities, daycare facilities for working mothers as well as job rotation opportunities, annual leave and health insurance.
• Career growth – The company is well-known for providing technical and non-technical opportunities to employees which support in their career growth. It further organises career development programs to assist in employee growth which is directly linked to sales and profits of the company.

3.2 HR Professionals supporting line managers and staff

HR managers perform the duty of supporting line managers and staff members to attain organizational goals.

• Training – The company organizes training sessions for employees from time to time to enhance their skills which is done by consulting line managers. Both HR and line managers formulate courses of training sessions to increase productivity.
• Recruitment – The HR coordinates with various departmental heads to assess employee requirements in all departments. In the process, the final interview round is taken by the manager, but the final decision is made after consulting HR.
• Rewards – HR discusses reward strategy with line managers keeping in mind the fair distribution of rewards so that no discrimination takes place. Rewards are also decided based on performance is measured by the usage of various indicators (Sarkar and et.al., 2016).

References

Sarkar, M. and et.al., 2016. Graduate Employability: Views of Recent Science Graduates and     Employers. International Journal of Innovation in Science and Mathematics Education (formerly CAL-laborate International). 24(3).

Carlsson-Wall, M., Håkansson, H. and Kraus, K., 2018. Introduction: Accounting, Innovation and Inter-Organisational Relationships. In Accounting, Innovation and Inter-Organisational Relationships (pp. 7-17). Routledge.

WHO WE ARE. 2019. [Online]. Available through: < https://www.adnoc.ae/en/adnoc-offshore > [Accessed on 10^th February 2020].

Rees, G. and Smith, P. eds., 2017. Strategic human resource management: An international perspective. Sage.

Dany, F. and Torchy, V., 2017. Recruitment and selection in Europe Policies, practices and methods 1. In Policy and practice in European human resource management (pp. 68-88). Routledge.

Jeske, D. and Shultz, K.S., 2016. Using social media content for screening in recruitment and selection: pros and cons. Work, employment and society, 30(3), pp.535-546.

Learning summary

The present HRC assignment has enhanced my understanding of the various organizational functions and how all of them synchronises and work in collaboration with one another. I also learnt about the organisational structure and culture of ADNOC offshore and the way these lay an impact on overall working. I also got an understanding of how Pestle factors have an influence on operations of the organization. I also came to know about the role played by HR professionals in managing all departments and their staff. Now, I am confident to carry the similar type of researches in future. I will be able to research, such as organizational aspects.

Development plan

Appendix