Question: When you have chosen the area of employment for consideration produce a 3000 word written report that includes the following tasks (each task is equally weighted):
Justify your choice of area of employment in relation to environmental change and/or organisational strategy and compare and analyse the differences in pay between these employees within the area of employment (this should include data on all contractual rewards).
Considering your Reward Strategy and Equal Opportunities Policy, evaluate how the differences in pay between employees in the employment area can be defended taking into consideration HR processes and practices and legal compliance.
Solution:
1.0 Introduction
1.1 Introduction to Abu Dhabi National Oil Company (ADNOC)
The Abu Dhabi National Oil Company (ADNOC) is a world-leading energy producer established in 1971 and headquartered in Abu Dhabi (Abu Dhabi Project, 2018). Its operations are anchored in their overall hydrocarbon value chain through a network of fully-integrated businesses with diverse interests ranging from exploration, production, storage, refining and distribution of a wide range of petrochemical products. The company objectives are creating improved efficiencies through benchmark performance, integrating a balanced scorecard approach in the entire operations and aligning their key performance indicators. The company vision is working collaboratively in harnessing energy resources in services delivery for UAE. Similarly, their mission is operating through partnership, innovation and a relentless focus on high performance and efficiency in maximising value for energy resources.
1.2 Selected Area of Employment
The selected area of employment is the procurement department division of merged company from ADNOC subsidiaries which are Zakum Development Company (Zadco) and the Abu Dhabi Marine Operating Company (Adma-Opco) (Abu Dhabi Project, 2018). The recruited employees in this area of employment are tasked with the roles of developing and maintaining a competitive and sustainable supply chain for all their partners and the service providers. Also, the employees in this area play an instrumental role of ensuring that they maintain an effective, online and real-time supplier registration system for all potential suppliers, consistent tracking of prequalification statuses online, and tender invitation of all potential suppliers. The employees are remunerated differently hence forming an appropriate field of study to understand the differences in pay and the role of equal opportunities policy and their roles in ensuring HR processes and practices and legal compliance.
1.3 Scope of the Report
The scope of this report has been narrowed from a broad perspective of organisations reward strategies and reward policy to the evaluation of area of employment on aspects of environmental change, organisational strategy, differences in pay, reward strategy and equal opportunities policies (CIPD, 2017). The rationale for this focus could be attributed to the view that the reward management system is comprised of organisation policies, processes, and practices used in rewarding employees in line with their contribution, abilities and artifice. This is supported by the Path-Goal theory (Güngör, 2011) assuming the existence of an exploited reward system and employee performance anchored in an organisation business environment. These aspects would be prevalent as a result of the company merger, particularly in the procurement department.
2.0 Analysis
2.1 Justification of the Choice of Area of Employment
Currently, the oil and gas industry business environment is characterized by increased uncertainty and competition (Oil and gas journal, 2016). As a consequence, organisations have been faced by a challenge of achieving their operational efficiencies and gaining optimally from their synergies. One of the approaches adopted by ADNOC company in ensuring that they achieve operational efficiency and synergy is merging two of their largest offshore operations. As noted by Mantere et al. (2012), a successful merging process has a positive implication in streamlining management and operations to drive an entrepreneurial culture for attaining a prolonged low oil price environment. The strategy adopted by ADNOC Company include merging the Zakum Development Company (Zadco) and the Abu Dhabi Marine Operating Company (Adma-Opco). This is a strategy that would elicit a direct implication on the reward strategies adopted by the company.
The impact of the HR strategy would be informed by the need of developing world-class talent, enhancing HR recruitment strategy and employee capacity development in their operations. This is particularly the case since the Merger process is guided by a strategic HR master plan and an integrated workforce planning, linking the recruitment to the business strategy and competency-based reward system. Additionally, the relevance of the selected area of employment is informed by the view that a successful merging of the Adma-Opco and Zadco companies would lead to distinct structural changes in both company’s hierarchy, chain of command, management systems, job structures and roles and particularly the procurement department. There is a likelihood that some of the retained employees would be performing similar functions with similar qualifications but being remunerated differently. This is mainly in……………………………………………………………………………………………………………………………………….Please contact our team to receive a personalised solution to this assessment based on your organisation, level of expectations and experience
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