Business strategy and measures of

organizational performance
 Table of Contents
1. Summarise the current internal organisational context in terms of key influences on
business strategy, and measures of organisational performance.........................................3

2....................................................................................................................................5

Summarise the historical and theoretical perspectives of organisation design, and give a
brief explanation and comparison of two organisation design models. (AC1.1)................5

3. Select and use two organisational design models/diagnostic tools (above) as a

framework to critically analyse the structure and management of the organisation.
(AC2.1)................................................................................................................................7

4. Evaluate the relationship between the various aspects of organisation design, work
processes, productivity and the workforce. Make recommendations in terms of HR
strategy and practices to support and improve strategic alignment. This could be in the
form of a plan/table. (AC2.2)..............................................................................................8

5. Evaluate the link between organisation design and people management and
development strategies. (AC2.3).........................................................................................9

6. Draw conclusions as to the alignment between the current design of the organisation,
its culture systems and processes, and its ability to successfully deliver on current and
future business objectives. (AC2.1).....................................................................................9

7. ADDITIONAL REQUIREMENTS: Please also comment on how you will transfer the
new knowledge and skills gained during this assignment into working practices. You may
also use this reflection for your CPD.................................................................................10

Reference List....................................................................................................................11
1. Summarise the current internal organisational context in terms of key influences
on business strategy, and measures of organisational performance

1.1 organisational types

Petroleum development Oman is a leading exploration and producing company in the

operating region of the Sultanate of Oman. The organisation is responsible for delivery of
the majority of the crude oil production of the country along with the natural gas supply.
However the major focus of the organisation is over delivery of excellence ford by
growth and sustainability in value creation within the industry and beyond the industry.

1.2 organisational elements

The committee of managing director is responsible for the overall performance and
business direction of the company. 14 directors comprise this board. The management
responsibility in this regard is bifurcated under executive heads from the team of
directors. The managing director is followed by the asset manager followed by planning
and engineering head of the department. In addition to that the organisation has other
departments like exploration followed by external affairs and finance and gas and
infrastructure and oil along with the technical and HR department (Cipd.co.uk. 2021).
The engineering and exploration department have to separate divisions. In the exploration
department is divided into another sub division. In the same way the engineering
department is divided into production chemistry, well engineering and production
engineering department.

The company involves the government of Oman with 60% take interest followed by
Royal Dutch shell with 34% interest stake. It operates in a concession area of about
90000 square kilometres was about one-third of the geographical region of the country
with the strength of 209 producing oil fields followed by 55 producing gas field as well
as over 8,000 active Wells and a diverse workforce with over 8500 employees. The basic
objective of Petroleum development of Oman is engaging efficiently and responsibly into
safe exploration, production, development and storage and transportation of
hydrocarbons in the sultanate region (Cipd.co.uk. 2021).
1.3 External influences

STEEPLE Analysis

Social factors

Oman has access to people from India and Philippines to work at a very low rate in
respective industries. Nevertheless the culture of women has significant gender bias and
inequality. However the company act in a socially responsible way, abiding laws of
Oman.

Technical factors

Woman has never been the house of in-house Technology developers in terms of the oil
and natural gas industry. The constant development of technical infrastructure is the
reason because of which the organisation has been able to generate more oil Wells and
rigging facilities.

Environmental factors

There is no legal binding on the organisation to have integrated impact assessment

according to the Royal decree RD 115/2001 on account of majority of government stake
in the company. However MD number 187/2001 highlights at the organisation need to
follow various environmental law and the company should get approval in terms of
contributing significant sustainable development for Oman.

Economic factor

The oil reserves of Oman are modest in comparison to the other surrounding countries.
Therefore the excessive dependence of the economy on the oil and gas sector is a matter
of concern. Consideration to this aspect it is important to note that it is high time to invite
more private companies in Oman like the Royal Dutch shell. Privatisation programs and
the development of oil substitute and finished products from crude oil and gas have to be
developed in order to ensure sustainability of the industry.

Political factors
Since the government of Oman has major stake in the operations of the company the
political stability will greatly facilitate the organisation in terms of global expansion. The
centralised control from the political standpoint it will help the organisation to run
smoothly. The organisation enjoys free import from the GCC countries which is the
reason why operating cost of the organisation is reduced.

Legal and ethical factors

Judicial decision taken by the company abides by the common law of Britain and also the
stringent Arabic legal system. The supreme court of law follows the highest court of law
order however the civil courts formulates management of regional issues. In this regard it
is important to note that in order to enunciate ethical practices the company established
by the legal aspects and formalities developed by the government and the government
and the private company equally holds the liability of effectively solving any dynamism
or discrepancy observed in context to the operations of the company.

1.4 performance measures

The primary and most prominent KPI of the company are the performance measurement
aspects. ID involves the economic expansion and diversification of the company in
addition with the supporting areas of growth in the country like job creation and training
for robust growth of the capacitance of members and stakeholders associated with the
industry. The next performance indicator is development of local expertise and promotion
of social investment programs. The capability of managing asset followed by resource
and technologies for hydrocarbon and non hydrocarbon functions are also among the
most essential performance indicators of the company.

2.
Summarise the historical and theoretical perspectives of organisation design, and
give a brief explanation and comparison of two organisation design models. (AC1.1)
For majority of the organisations, the concept of organisational design is oxymoron. The
reason behind the statement is that majority of organisational structures are not the
outcome of proper systematic and methodical planning. Rather it has been observed from
fairly back in time that organisational design has been shipped mostly by politics rather
than policy. Therefore the accounting structures have been half a circuit and a source of
frustration. Previous research findings articulate that organisational design should
incorporate sufficient management attention to the sources of competitive advantage in
respective markets. Organisational design should also add value to the internal aspects of
the organisation and reflect the strength, motivation and weakness of the people also. It is
also important to take into consideration all kind of constraint and impediments which
can come in the way of implementing the design. It is only then that the design will be
able to overcome such challenges. However the biggest question in this context is
whether the design complements the distinct organisational culture.

Bureaucracy theory

The bureaucracy theory was developed by Max Weber a German scientist who defines
bureaucracy as a highly structured as well as formalized and impersonal organisation.
This theory also highlights that an organisation should have a clear hierarchy structure
with clear rules and regulations and proper lines of authority that will be responsible for
governing the organisation. According to the forest any organisation having bureaucracy
follows the specific characteristics like specialisation of labour followed by development
of some ground rules for governance and a proper hierarchy along with impersonality in
application of the rules will in the organisation.

Taylor's scientific management theory

The theory highlights the use of scientific method for study of work and determination of
the efficient way of performing specific task. This year also highlights that organisations
should be based upon ability and motivation and train workers to work at maximum
efficiency. According to scientific management principles the organisation should be
employing the most efficient ways of working in addition to spending time for making
workers planned and trained and allowed them to perform their tasks efficiently.

The basic difference between the two design theories is that scientific management is
synthesized at leveraging the potential of workers and therefore considered as the
organisational design from the resource-based perspective. On the contrary the
bureaucracy theory is more concerned about the regiment and the discipline in the
organisation which is the source of efficacy of a company according to this theory.

3. Select and use two organisational design models/diagnostic tools (above) as a

framework to critically analyse the structure and management of the organisation.
(AC2.1) 
The organisational structure of Petroleum development Oman and the overall industrial
culture of the country reflect the bureaucracy policy according to the Max Weber
bureaucracy theory. It is because the hierarchy in the Oman or overall Middle East based
organisations are very strong and specialisation of labour is very prominent in these
countries having a space on the basis of gender and categorisation which further
constitutes the specialisation of labour. The specialisation of labour is a prominent factor
in this organisation as well. Nevertheless scientific management is also evident in this
organisation considering the fact that the executive chair has been very properly segment
it's so that the frontline can get maximum support. It is focused towards increasing the
maximum efficiency of the front line of the company (Cipd.co.uk. 2021). In addition to
that the organisation also follows the postulates of bureaucracy theory in the form of
having a well-defined hierarchy where we can see that there are 14 directors for assisting
the management director of the company. Impersonality in application of rules is one of
the critical postulates of the bureaucracy theory. However it has been observed bias and
diversification of job profiling on the basis of general characteristics is one of the
prominent aspects of this organisation. Hence it cannot be articulated that this
organisation perfectly aligns with either of the two theories. It is evident that the three
postulates of the bureaucracy theory in the form of labour specialisation followed by
following some ground rules and having a well defined hierarchy is religion followed in
the company. In a company went to that there are some typical principles of scientific
management theory which are also followed in this company. This company replaces the
rule of thumb by scientific method of studying the work and determining efficient way to
perform specific tasks. It is evident in the kind of employee development and
management initiatives undertaken by the organisation. The specific training programs
highlight that the organisation manifests on the need of increasing capability and
motivation of the workers in the company as well. Some of the project failures of the
company indicate that the organisation has not been trying to work with the most efficient
way of working. Therefore it can be evidently concluded that petroleum development
Oman does not conform to all the specifications of the Taylor's scientific management
theory as well.

4. Evaluate the relationship between the various aspects of organisation design,

work processes, productivity and the workforce. Make recommendations in terms of
HR strategy and practices to support and improve strategic alignment. This could
be in the form of a plan/table. (AC2.2) 
All organisations invincibly acknowledge the need for organisational design followed by
proper work process and workforce design in order to achieve the desired state of
productivity. In terms of developing organisational design the organisational structure
and it chart has to be useful in rendering the actual values which the company represents
in the internal and external environment. Organisations are always in flux realising that it
is important to undergo reassessment regarding how they can act as well as written talent
and capital to the changing market demand leveraging existing and emerging
Technology. Therefore it is important to become agile and progressive in order to
implement such an environment. Organisational productivity is mostly fostered by Idea
innovation which can come from anywhere and pushes towards creativity and internal
collaboration (Pingboard.com. 2021). This organisation emphasizes on a millennial
workforce who has been raised on the technology and therefore highly engaged and
integrated in terms of project management processes. Therefore the organisational what
force maintenance strategy and word processing strategy should implement policies for
engaging the millennial workforce and creating a compelling brand name as a steam
brand value is a critical component of the culture of innovation for collaboration and
diversity and growth in recent times. Organisational design is basically of four kinds. The
matrix and organisational design is mainly evident in the case of Petroleum development
of Oman rather than holocracy or flat organisational structure or hierarchy organisational
structure. In this regard also be clearly articulated that the matrix organisational structure
development of cross company teamwork and are divided functions followed by division
of products while adhering to a distinctive reporting architecture (Pingboard.com. 2021).
In this case it is evident that the distinct reporting architecture is formulated by the asset
Management followed by planning and engineering management teams in
accompaniments to the exploration management followed by internal and external affairs
and finance and infrastructure and oil operations and HR and technical management
teams. This highlights the level of reporting architecture formulated by the organisation.
However each of these management and divisions are two based on the product or
function. They generally report horizontally and are a part of a functional group at the
same time being on the specific team. Employees have their responsibility in the form of
respective projects as well as a success full stop in this regard to be highlighted that many
companies now it is inclined towards a flat or a holacratic organisational structure which
represents interconnected teams that develops corporate ecosystem. Nevertheless The
Oriental organisation of structuring is the fundamental of the specific big companies in
Oman which is the reason why matrix-based structure is popular in the company.

5. Evaluate the link between organisation design and people management and
development strategies. (AC2.3)
Organisational design is considered as the process as well as the outcome of shaping the
organisational structure, which aligns the people management process with the business
purpose and contextualize both elements, with the organisation within which it exists.
Organisational development is considered the plant as well as systematic enabling of the
sustained performance in a company by means of involvement of the people.

6. Draw conclusions as to the alignment between the current design of the

organisation, its culture systems and processes, and its ability to successfully deliver
on current and future business objectives. (AC2.1) 
In order to create the ideal organisational design it is important for the organisation to
check on the job quality parameters and govern the working environment including
actions of people on the basis of suggestion from government and recommendation from
the employees. In addition to that it is important to play an integral role in organisational
development process. The strategy of development has a vital role in enabling growth as
well as longevity and relevancy within the business. It has been already highlighted in the
previous report that the organisation is trying to cope up with the changing world of work
by undergoing transformation of culture and capabilities. Therefore it can be highlighted
that development strategies in the organisation are in synchronisation with the
organisational design.

7. ADDITIONAL REQUIREMENTS: Please also comment on how you will transfer

the new knowledge and skills gained during this assignment into working practices.
You may also use this reflection for your CPD. 
On the basis assessment I have realised that I should incorporate better commitment in
working in a strategic partnership with my staff and our leaders as well as the external
stakeholders groups in development of an organisational culture which can easily
embrace change and try to achieve continuous improvement. I have noted some
significant themes for organisational development and people management. Firstly I have
decided to attend and written high quality office staff by strategic recruitment policies. I
have also decided to strategically associate individual performance with organisational
planning (Gla.ac.uk. 2021). I have realised that the necessity of developing leadership
capability is in men's and it is important to ensure capability development as well. It is
also important to reward excellence on the basis of equitable and fair payment. I should
also respect the government strategy of Omanisation and therefore embedded the policy
of internalization of workforce in accompaniment with fostering a culture of mutual
respect towards the Indian and Filipino workers.
Reference List
Pingboard.com. 2021 The Relationship between Organizational Design, Structure, and
Charts (2021). Available at: https://pingboard.com/org-charts/organizational-design
(Accessed: 5 May 2021).

Cipd.co.uk. 2021. Information on Organisation Design & Development | CIPD (2021).

Available at: https://www.cipd.co.uk/knowledge/strategy/organisational-
development#gref (Accessed: 5 May 2021).

Cipd.co.uk. 2021.  Available at: https://www.cipd.co.uk/Images/hr-getting-smart-agile-

working_2014_tcm18-14105.pdf (Accessed: 5 May 2021).

Ibm.com. 2021. Petroleum Development Oman LLC (2021). Available at:

https://www.ibm.com/case-studies/petroleum-development-oman-maximo-watson
(Accessed: 5 May 2021).

Gla.ac.uk. 2021. Gla.ac.uk. Available at:

https://www.gla.ac.uk/media/Media_305998_smxx.pdf (Accessed: 5 May 2021).