Human Resource Management
Brief History of Zakum Development Company (ZADCO)
ZADCO (Zakum Development Company) is an oil company dealing with crude oil extraction, processing, storage and export. The company started its operations in 1977 with the aim of operating and promoting upper Zakum field on the shareholders behalf as well as Abu Dhabi National Oil Company. The company, currently has increased its production of oil to include 2 more fields in Umm Dalkh and Satah fields. The company as well has the vision and mission of building optimal sustainable production while at the same time making sure the best development practices in the field are followed such as environmental excellence, safety and health (Agarwal, 1986). The vision of the company is to deliver petroleum and energy in order to meet the rising global demands of these products.
Internal and External Factors that necessitate change at ZADCO
In the case of ZADCO, the company has faced numerous challenges that are external in nature. It also faces stiff competition from companies in oil production both in the state and other states also from other countries that produce oil (Burke, 2002). Due to stiff competition, there has been political interference in the company’s operations as many restrictions and operations are imposed on oil production. The existence of national domestic companies like Abu Dhabi National Oil Company only complicate the nature of competition. Also, the company faces international competition from countries in oil production struggling with large market share to guarantee a stable market for their oil products (Burke, 2002). The rapid technology advance also poses a great challenge to the company since it requires sufficient resources in order to invest in latest technology applied in transport, marketing and production of oil. Economic instability in the country as well as the international system leads to arbitrary oil price changes forcing the company to cushion its products from irregular international prices. Following rapid technology changes, ZADCO can initiate development and organizational training programs in order to improve employee effectiveness.
Impact of Change
This will equip the company with the knowledge and skills needed in their area of expertise (Poole & Van, 2004). It results to increased performance since the company needs to exploit the potential of its workforce. In order to enjoy the leading position in production of oil, the company is supposed to direct additional finances to developing potential oil fields and research. This will open the doorway to sustained oil production as well as increase revenues. The organization is also supposed to opt for team-building programs so as to boost interpersonal relationships between the employees. This is ideal if the company partners with other companies like the Abu Dhabi National Oil Company.
Main Factors Involved in the Change Process
Rapid technology advance has contributed to production of high quality oil and products. ZADCO requires heavy investment in equipment and tools in order to produce quality products. Increased machine usage in production will also need smooth transition without affecting attitudes towards new technology introduction (Poole & Van, 2004).
Different Approaches to Managing Change
People in most cases have the tendency to resist change. As such, the company is supposed to focus on employee resistance in order to change. Employees are crucial stakeholders in a company and they might be unwilling to embrace transformation due to fear of getting subjected to new things that might be a reason for threat to them. One of the approaches that can be used to overcome this is getting the employees involved in the change process in order to ensure they feel like they are part of that change. The participation of employees in the process of change has far-reaching effects on end result of change process. The company is supposed to adopt a top-down approach to change in which case the top management leads from the top through setting objectives and goals on the basis of the company stakeholders expectations in this kind of approach, employees who are at lower levels are not part of the process of decision making. ZADCO leaders are supposed to provide a vision and focus that is strong which can be used as the parameters for measuring the level of change.
Addressing change from the bottom up is the approach recommended. Employees are given the mandate of instigating change. This kind of approach is based on premise the behavior of the people determine the culture of the organization as opposed to processes and structures. More inclusiveness in decision making is crucial for the company since it creates buy-in throughout the business operations. It also enhances high level of trust and transparency. ZADCO is also likely to come across some pitfalls once it applies this technique. It is likely to experience slowed pace of decision making since the approach is democratic in nature.
Behavioral responses that may be demonstrated when an organization experiences changes
Change is inevitable and is not as bad as majority of employees in organizational settings perceive it. Often, people view change as an event that is dangerous. The behavioral response that is common and demonstrated by many are discussed in transition models by Kubler Ross. Often, people have the tendency of demonstrate anger, acceptance, dislike, denial, depression and bargaining. The stakeholder’s characters of change are greatly influenced by anticipated impact of change. To realize the intended objectives of any change process, the human resource is supposed to support the people as well as the process of change management.
Challenges of world economic instability and political factors in nature, are dynamic. The company requires transformational plan in order to address these challenges (Poole & Van, 2004). Increased investment leads to production of products that are of high quality and avoids restrictions which are imposed by environmental and safety guidelines while thorough market research makes it possible for the company to have a better understanding of the factors leading to economic instability (Poole & Van 2004).
The Role of HR Supports Individual during Organizational Change
However, numerous challenges are posed to business organizations because of the dynamic state of the business environment and these make change inevitable (Stickler 2011). The management has the task of managing change in terms of teams, individuals as well as other organizations from contemporary state in order to enjoy desired outcome. Change management also requires use of basic tools and structures in order to control organizational change effort (Stickler, 2011). It is clear ZADCO faces numerous challenges from the external environment and as such, increased competition from other companies dealing in oil production and combination of all the approaches leads to the right decisions.
Agarwal, R. D. (1986). Organization and management. New Delhi: McGraw-Hill.
Burke, W. W. (2002). Organization change: Theory and practice. Thousand Oaks, Calif: Sage.
Poole, M. S., & Van, V. A. H. (2004). Handbook of organizational change and innovation.
Oxford, UK: Oxford University Press.
Stickler, V. (2011). Organizational Change. Munich: GRIN Verlag.