Organization Development

Executive Summary

Organizational development process is considered to be an integral part of an organization, its strategic formulation and managing day-to-day activities. Considering these aspects, the purpose of this work and the attempt made inthat regard is to define the component of organizational development, its integration and tocreateand examine organizational development (OD) concepts and its application is real organization based in UAE. For that reason, a need arise to identify an organization is also a necessity. Hence, it should be clarified that the organizational selected for the purpose of this work is Abu Dhabi National Oil Corporation (ADNOC).

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Thus, the overall objective of this report is to investigate and trace the many problems,dilemmas and measurement facing an organization, and how manager cope with the difficulties or organizational development processes and its undertaking. It would also help to add herein that the structure of this report is divided into three parts, namely part 1, part 2, and part 3 that cover the situation, the organizational development process and finally our analysis, the subject matter conclusion and its recommendation.

Introduction

Organization development is considered an integral part of the organization day to day process. OD in the backdrop of its concept is to improve organizations and its effectiveness. OD and its course for that matter is a long-term process, which when undertaken at the strategic or day to day basis helps organization to address many compiling issues. OD is both an intrinsic and extrinsic segmentation that helps organization cope with internal and external change more organically.

Subject Matter Issue and its Consideration

It is natural only that issue cannot be sided apart from any factor of organizational development discussion and its discourse, where question and counter question arise as follows:-

• How organizational development (OD) within an organization is organized?
• What defines Human Resource Information System (HRIS) within the concepts of OD?
• Does the role of organizational development consultant is a necessity?
• How can HRM and their role play in enhancing organizational process and it undertaking?
• What are OD role in the area of management practices and operations?

It is clarified that the overall objective of this work is to define these components in part and full thereof, which is as follows.

PART 1: ADNOC – Assessment and Overview of Organization

History of ADNOC

ADNOC (Abu Dhabi National Oil Corporation) is based in Abu Dhabi, UAE. It is one of the leading oil manufacturers today. The company was established in 1971. (ADNOC, About ADNOC )

ADNOC Purpose

ADNOC business purpose is to explore gas and oil reserves and producing it. The purpose of the company also defines the production and exploration of oil reserves in order to meet the global demand. (ADNOC, About ADNOC )

Mission

The mission of the company is to create a value chain through its products and services and also to play an integral part in the UAE economy, by contributing to the growth of the UAE economy as well as playing a centrifugal role in the social, economic and education sector and its development. (ADNOC)

Key Figure in the Organization

Key figure in the organization is the chairman of the supreme petroleum council (SPC). The chairmanship post is held by H.H. Sheikh Khalifa Bin Zayed Al-Nahyan. He is also the current president of the UAE and its Trucial states. Above all, being the ruler of Abu Dhabi, H.H. Sheikh Khalifa Bin Zayed Al-Nahyan also helps in the formulation of the company policy, and overseeing the operational polices of the company international operations. (ADNOC, About ADNOC )

External conditions in which ADNOC operates

International business defines ADNOC. Hence, international business environment and its influence are major aspects of ADNOC. The company also uses high drilling methods and advanced machinery and technology. Above all, the company operates its international business concurrently with 15 of its affiliate companies for streamlined operational process, which add to the significance of the company in the international business environment. (ADNOC, About ADNOC )

PART 2: The Process of Organizational Development (OD)

The Feature of Organization Development (OD)

OD is the assessment of the major element that defines an organization, namely its people, its culture, its system, its strategic management and most importantly its management styles. Besides, the skills of individual and the role technology plays also form the object of organization development and its discussion. (McGladrey, 2006 , p. 3)

Definition of Organization Development (OD)

OD is understood to be both a professional field of social action and an era of scientific enquiry. It covers a broad arena of organizational processes. In real term of its meaning and definition, “OD is a planned process of change in an organization culture through the utilization of behavioral science technology, research and theory” (Thomas G. Cummings, 2008 , p. 2) assert Warner Burke.

Wendell France defines “organization development as long range efforts to improve an organization problem-solving capability and its ability to cope with changes in its external environment with the help of external and internal behavioral scientist consultant or agent of change as they are sometime called. (Thomas G. Cummings, 2008 , p. 2)

The Functional aspect of Organization Development

Organizational development as can be understood is the process that take place within an organization as a means to increase organization effectiveness and facilitating personal and organizational change through the use of intervention driven by social and behavioral science knowledge. (Anderson, 2009 , p. 3)

HRIS (Human Resource Information System) in context of Organization Development

Organization development and its meaning is the major element of HR strategic planning process in an organization. (McGladrey, 2006 , p. 3) For that matter, new age management practices of organization development in context of HRM also reflect the new forms of practices such as HRIS (human Resource Information System) making its way within the organization. HRIS add value to the organization development process. There is no doubt in that regard. As a matter of fact, “smooth flow and availability of authentic information related to human resource facilitates rational decisions.” (Kandula, 2006 , p. 70) This is true, considering that information are a vital part of an organization and also help in the basis of decision making, that also based on rationality of it. Hence, HRIS plays a significant part of organization development process.

The Role of OD Consultant: HRM Consulting

Professional role are a welcoming sight in any organization. The same case also can be looked in respect of HR professional who acts as consultant to organization. On the other hand, OD role can also apply to internal consultants and professionals, or external consultant, where their role is build on the basis of change factor that need to be implemented n a smooth and functional way. (Thomas G. Cummings, 2008 , p. 66)

It is being said that if HR professional play a consultative role within an organization, chances are that the value of their professional practices would devote much time working on behalf of the organization to address the issue at hand and to uncover any likely issues. (William M. Kahnweiler, 2005 , p. 45) Hence, it is very likely that the role of HR consultant do add value to organization one or the other way and most organization also prefer it that way in adding value to organization development course.

Above all, service deliveries are that core of HR professional role. The evolving nature of HR role also can be looked in respect of the technical specialist role that they play in the organizational process, either when it comes to administration or tracking and interpreting regulatory changes in ensuring that organization remain in compliance. Strategically speaking, HR also play a significant part in getting the right people and right talent so that organization don’t miss on anything, when it comes to change strategy, employee retirement plans, and any other administrative functional aspects. (Marc Effron, 2003 , p. 275)

OD Role and its Management Aspects

Organization development role as we have maintained is critical to the growth of the organization. As a matter of fact, it is held that top management involvement is an important condition for success of OD. The need for OD in an organization also arise for many reason, namely – major changes in the external environment or technologies, or factor like a merger may make an organization existing structure or management practices and culture. (Cartwright, 2005 , p. 290) Hence, a planned intervention of the change factor is a necessity at all level of OD course and its process formulation.

OD and its process intervention

As we have mentioned above, the intervention of OD is critical to the growth of an organization. Intervention can be in the forms of the following.

1. Human Intervention
2. Structural Intervention
3. Organizational Cultural Intervention
4. Strategic Planning Intervention

Justification: ADNOC Features of Organization Development (OD)

From the above theoretical assimilation, we learn that ADNOC as an organization have grown many folds from what it was during the times of its establishment. Today ADNOC claims a place in the top ten global oil manufacturers and exporter.

We figure out that almost all forms of OD and its simulation as discussed above find a place of consideration and in activities practice in ADNOC. There is no denying this fact. When taking a tour of the company website there is reason to belief that what defines ADNOC in context of OD is very much in real practical term. For example, ADNOC efforts in the exploration and mining and producing oil and gas are huge and tremendous. The company produce more than 2.7 billion barrel per day, (ADNOC, About ADNOC ) this is something that defines how the object of such a production level is achieved. If the case would not have been with effective OD, such a possibility would have been a far cry. Yet the company thorough its strategic planning intervention in the OD have enabled itself and raised the bar as a competitor in the world 500 fortune company.

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There are many other aspects of OD and its subsystems such as HRM and its course also that shapes the foundation of the company and its growth today. For examples, it is being observed that ADNOC take a systematic approach to its HRM. The factor of it can be justified in context of ADNOC training and development course.

ADNOC have maintained that fostering continuous growth and development of its employee accumulate the object of the company CSR. ADNOC in the realms of HRM have been effective to integrate changes as and when the time demands, given its active training and development course. Training and development in ADNOC is to recognize the rich talent base in the company and its HRM foundation at the core of it. As a manufacturing company, ADNOC dependant on human capital is huge. Without human intervention, the very essence of its operational objective and goals seems to be a far car. And the company understands these elements, which is why training and development course is to enhance the value of its human capital, where the flow of information and all aspects of development course related to HRM or the introduction of HRIS for streamlined HR management aspects does not miss the sight of policy maker in ADNOC. (ADNOC, Training & Development )

Moreover, CSR approach in ADNOC also is very much in line of OD. Being a global oil manufacturer, ADNOC understand the value attached to the business environmental factor and its compliance. Its groups of companies or to say affiliate also follows a detailed business operation which is direct in line with the socio-political and cross-cultural business practices.

Speaking of strategy, these feature also very much finds a place of consideration in ADNOC. The company as we learn is committed to its business principle, that is to say, creating value chain through the introduction of technology human knowledge as well as taking appropriate environmental policy for sustainable development of the company the strategic level.

Thus, what we can reason is that OD in ADNOC defines the long range efforts to improve an organization problem-solving capability and its ability to cope with changes in its external environment with the help of external and internal agent of change in all factor of OD and its undertaking in the company.

PART 3: The Outcome and its Analysis

From the above discussion and its analysis, we understand that OD is very critical to the smooth functioning of an organization. There is also every reason to believe that OD and its process formulation helps organization to cope with the demand of the business environment. As a matter of fact, effective OD and its process integration is critical and a vital tool that most managers undertakes, be it policy formulation, decision making or integration technology in the realms of an organization business process. Apart from that, OD and its methodology thus should be taken with due care and attention to details.

Moreover, organization also requires the best available resource apart from machinery and other technical tools. Human capital thus is a vital and centrifugal objective to be considered. After all, human capital for that matter is considered to be the backbone of the organization. In the knowledge economy their value have further evolved and enhanced. Hence, to ring in the benefits of a subsystem in HRM such as HRIS can be vital to the management aspects of human capital and also in increasing the worth of the organization in the competitive market place.

OD as we can reason herein and every aspects of its conditioning define the face of an organization, within the internal and external factor and its influence. The contribution of OD considering all the vital parts and parcel for an organization is huge. The same case also can be observed in ADNOC and the OD concept at play. ADNOC for that matter have been at the forefront of ongoing change; internally and externally and coping with the challenges of the business environment with ease, which brings us to the point in speculating that ADNOC and the concept of OD at play is very much present in the organization management, strategic HRM, operational management and its course is achieved concurrently and organically. Thus, what we can add is that the contribution of OD to the overall organization and its effective shows in the way of ADNOC and how the company handles its operation and all aspects of business operation and strategy with ease and confidence.

Conclusion

Organizational process is complex when we viewed objectively. In the current state of affairs ADNOC faces many challenges. Change as we view in context of ADNOC has been an ongoing undertaking, both at the management level, corporate level and policy level.

We feel that ADNOC current short-term and long-term problem can be speculated to be the HRM features of the organization, sustainable and environmental measures and its outlining as well as business environment and its challenges.

Recommendation

Following is the recommendation:

• It is recommended that ADNOC CSR approach should be more detailed and practical, considering the principle preached by the company and its brand image.
• Secondly, ADNOC intervention in context of HRIS, structural intervention, organizational cultural intervention and strategic planning intervention should be in line with the current needs and demands of the environment in which ADNOC is located. That is to say, strategically attention to OD and its intervention should be more objective to address almost all features of the OD concepts in real practical terms.
• Third factor is that leadership also should find a place of active intervention, so that the so called future leader can be nourished within the company.
• Action plan in the organization should also be more detailed, and the role of HR professional and OD consultants also should be considered on an ongoing basis and nurturing change through comparative management practices is also not a bad idea at all, since that way the international business of ADNOC can be enhanced further.

It is also further commented that the role of OD in the process of the organization operation and day to day management is dynamic and complex, considering that every organization is a social system, and there is no absolute or best way to bring about a change automatically. And the methodologies that are employed will work differently at different times. What matters is the involvement of the top management in the organization to rope in change factor in the best possible way for an effective solution. Above all, strategically speaking the strategy of OD is to intervene in the ongoing activities of an organization. (Cartwright, 2005 , p. 290 )

Intervention plan in ADNOC

We recommend that intervention plan or its design should form a combination of these four features mentioned below for effective and efficiency of OD and its process undertaking in ADNOC.

1. Human intervention: Organization achieves the OD goals through human resource management functions, namely – recruitment, selection, compensation and performance management, integration and placement process. A combination of these human factor helps achieve the OD goals and its objective. (Durai, 2010 , p. 264) Hence the same design also can be integrated in ADNOC.

2. Structural Intervention: Structural design changes concerned the organization division of labor and its specialization. Intervention aimed at structural design include moving from traditional practices into a more integrative and flexible forms, which helps OD process to address and meet the process of the organization, be it for customer centric or network based structure. (Thomas G. Cummings, 2008 , pp. 158-59) Hence, such feature and its combination are also highly recommended for ADNOC.

3. Organizational Cultural intervention: Intervention design in any forms seeks to understand situational contingencies such as individual differences within the organization members and management of change process. Organizational cultural intervention is a necessity because an organization is made up of individual and group members. (Thomas G. Cummings, 2008 , p. 162) Hence, cultural bonding should be at the heart of any OD at ADNOC, where the cultural dimension is redefined for effective organization activities and day-to-day management.

4. Strategic planning Intervention: Strategic OD or its intervention defines the objective and scope of strategic management process. Hence, for any matter in that regard, ADNOC also can reap the benefit of it simply by upgrading the active intervention of strategic planning, be it at the policy level and its formulation, defining future goals and roadmap, identifying the operational objectives, and the orientation of a business goals and it alignment into one solid foundation. Standardization of its activities, process and overall management aspects also should find its course. Strategic planning intervention is all about long-term goals and its objective. The best way an organization rope in the strategic planning process assist organization to cope with various factor of change and to be competitive in the business environment.