Introduction
Change is one way that organisations try to make themselves more productive. Nakilat is one of the companies that has embraced change to get better at what they do. Some of the changes being embraced by the organisation are expansion, the use of new techniques to improve employee performance, and the adoption of environmental sustainability practices. Nakilat is using Kurt Lewin’s Change Model to make the changes. In addition, the organisation is supposed to consider international management and strategic operations. International management brought about ideas like diversity management. To do well in a global setting, the organisation ensures that its work environment is friendly to people from different cultures, both employees and customers. HR plays a big part in making sure that the organisation’s workers are happy so that it can reach its goals.
The Organisational Change at Nakilat
Change is an inevitable factor in the life cycle of an organisation. It is a thread that runs through all businesses regardless of size and sector (Von Treuer et al., 2018). Forces within and outside an organisation drive change. Due to the changes experienced in the world, a contemporary organisation must be prepared to be agile. Based on this, Nakilat is among the organisations that have embraced change to add value and grow. One of the changes adopted by the company is expanding. Nakilat is focused on expanding its operations through joint ventures, mergers, and acquisitions (Gulf Times, 2018). The organisation employs the Kurt Lewin change model to implement the change effectively. This provides a platform that Nakilat uses to ensure that the change is beneficial and not disruptive. Therefore, change delivers the best outcome when planned and managed effectively.
Relevance of Nakilat and Identification of the Drivers for Change
Nakilat is a global leader in energy transportation and exists to ensure that its operations are safe, sustainable, and reliable. It offers an important transportation link in Qatar’s supply chain. It operates the world’s largest liquefied natural gas (LNG) shipping fleet, which consists of 69 LNG tankers, making it the market leader (Voyages, 2021). A floating storage regasification unit (FSRU) and four huge Liquefied Petroleum Gas (LPG) carriers are under Nakilat’s ownership and management (Voyages, 2021). It has the most modern equipment and incorporates advanced technology to achieve efficiency. In addition, the organization facilities major operations such as ship repair, industrial production, and offshore fabrication. As a result, Nakilat works jointly with other organizations to ensure that it provides the best services.
For Nakilat to perform effectively, it has introduced several changes. Firstly, the organisation is committed to promoting a positive work environment. This is an important part of how well an organization achieves its objective. One reason for this change is to prevent employees from leaving the company. In addition, it is important to ensure that employees are involved in making decisions (Nakilat, 2022). The other reason for this change is to ensure that employees’ health and safety are better protected. The organization believes that all employees deserve a work environment that feels respected and valued. Therefore, they understand that satisfied employees are likely to achieve the established objectives.
In corporate social responsibility, one of the most crucial changes being adopted at Nakilat is environmental sustainability. It is about interacting with the environment responsibly to protect its natural resources and avoid compromising the ability of future generations to meet their fundamental requirements (Nakilat, 2022). This is one of the modifications that Nakilat has adopted to ensure that it continues to follow the efforts that have been set (Voyages, 2021). The organization must ensure that it supports the nation’s objective of becoming carbon-free. For example, Qatar has joined the world in reducing environmental pollution by adopting sustainable practices. The drive for this change is to develop a positive reputation. Thus, the organization is working to achieve corporate social responsibility by adopting eco-friendly operations.
Moreover, Nakilat is adopting new ways of promoting social sustainability because they are setting higher standards for safety, inclusion, fairness, and a good place to work. The organization is working on fostering trust, respect, and helping each other (Nakilat, 2022). The company wants to do more to be more environmentally friendly to ensure that it can find and keep the top talent it needs to keep growing. Nakilat is investing heavily in social sustainability programs to improve the health and well-being of its employees and make their time at work more enjoyable (Nakilat, 2022). The company wants to be more than just a great workplace and build a rewarding career. They also want to show that true openness, fairness, and respect can lead to better business results and bigger societal benefits.
Nakilat is committed to promoting efficiency and achieving strategic goals through expansion. The corporation continues to venture into various collaborative arrangements with other organizations. The major purpose of the change is to boost its production (Voyages, 2021). In other words, Nakilat seeks to ensure that it succeeds by attaining its objectives. The organization embarked on a fleet expansion to maintain its market dominance in the transportation of LNG. Additionally, they acquired their first FSRU to expand their global outreach (Voyages, 2021). These efforts aim to improve the organisation’s performance and meet its overall needs. As a result, expansion is a change embraced by Nakilat to confirm that it attains its strategic goals.
The Theories and Concepts Within Projects and Organisational Structure
Nakilat Organisational Structure
The organisational structure is integral for the effective management of operations. It outlines how certain activities are directed to attain the goals of an organisation (Henk & Fallmyr, 2019). In addition, the structure determines how information flow between levels within the business. As shown in the diagram below, Nakilat adopts a functional organisational structure (Nakilat Agency Company, 2020). It is a bureaucratic structure because it divides the organisation based on the specialisation of its workforce. For example, the functions are divided into shipping operations and support services. The employees in these departments take instructions from the organisation’s overall management. As a result, Nakilat has adopted a functional structure for smooth operation and efficiency.
The Theories and Concepts in an Organisation’s Structure
Systems design theory is among the theories that explain the need for an organisational structure. According to Pasmore et al. (2019), the theory is founded on the basis that many interconnected systems exist to operate a business efficiently. In this structure, the systems themselves are the most important thing, and the heads of the business focus on ensuring the different departments work well. Since the focus is on running the connected but independent units, managerial tasks are given much weight. Since problems in different departments may hinder operations, managers and leaders must stay on top of any problems or limits that might arise in day-to-day interactions. System design is about synergy, ensuring that the different independent systems work together well to make the most of the company’s resources.
The contingency theory supports the need for an organisation to have departments divided based on their functions. McAdam, Miller, and McSorley (2019) posit that contingency theory looks at how the business grows rather than the number of resources. The theory is based on the idea that a business cannot be productive if its assets, capital, and resources grow while its organisational structure stays the same. Based on this, an organisation should figure out what they need and keep enough resources to deal with the new opportunities and risks that come with growth. A company must always look at what could go wrong to get the most out of its performance. This could mean looking for new ways to outsource, expanding facilities, changing operational systems, or upgrading to a more efficient business model.
The Neo-Classical theory is a concept that can be used to understand the idea behind a functional organisational structure. Hussain, Haque, and Baloch (2019) assert that an organisation is a mix of formal and informal structures. The social relationships between employees and the formal model affect the organisation’s informal model. Usually, the organisations and the employees’ interests can clash; thus, they must be brought together. Based on this, specialised departments are set up to guarantee that people with similar skills work together. The main goal is to get employees to talk to each other more, making them more productive at work. Managers of an organisation can use the approach to foster a work environment that supports positive results. As a result, the main goal of the structure is to make sure that everyone works together to reach its goals.
Weick’s model of organising reinforces the use of functional organisational structure. This theory considers today’s stressful and fast-paced business and cuts down on equivocality (Bauer, 2019). The word “equivocality” means that workers at any level lose time because they have to check with their boss. In Weick’s model, an information system includes issues that come up often and have sometimes been dealt with before (Bauer, 2019). Employees have access to this information and can use it to overcome any doubts or hesitations that might make it hard for them to make sound business decisions. In addition, using the information system helps people make better decisions, which makes them more productive. As a result, a functional structure makes it easier for employees and managers to work independently.
The Concepts of Change Management
The knowledge of change is an important concept in change management. A good understanding of the change is integral to promoting its benefits. Firstly, it is crucial to know the need for the change (Cameron and Green, 2019). The purpose is to motivate the stakeholders to effect the change. Secondly, the stakeholders should also understand what they need to do to achieve the change successfully. Therefore, a good understanding of change will promote smooth operations during the implementation phase.
Planning the Change
Planning for change is an integral concept because it involves preparing the whole organisation for the change. A plan is the most important organisational tool that can be used in management (Cameron and Green, 2019). An effective plan defines the appropriate action to achieve the set change. It helps effectively use available resources and achieve the intended purpose. As a result, an effective plan will ensure that appropriate practices are adopted for the change.
Communication Strategy
Communication is the way people and businesses can get in touch with each other. Any work approach will only work if people can talk to each other well. In change management, ensuring there are good ways for the different services, departments, and people involved to talk to each other is essential for the change to go smoothly (Cameron and Green, 2019). Thus, in addition to making sure the change management is clear, it is important to decide on the communication systems that will help it work well.
Organizational Culture
An organisation consists of people who execute their roles to achieve the established goals. Based on this, it has its personality and culture, which come from employees’ attitudes, values, and rules of behaviour (Cameron and Green, 2019). Developing a company culture is important because it helps people believe they belong and are involved. As a result, a good organisational culture improves productivity and communication between workers, especially during change management.
Stakeholder Analysis
Stakeholder analysis involves identifying individuals within Nakilat who could be influenced by a planned change, whether they are the ones who have to carry out the change or the beneficiaries. The first step in analysing the people involved is to ask the right questions to determine their specific needs, what they expect from the changes, and where each person should work best (Cameron and Green, 2019). The second step considers their tasks, training, where they stand in the company’s hierarchy, and how they feel about change.
Risk Mitigation
Risk mitigation is a crucial concept in change management because any change in the company means introducing new risks. It is among the practices that project management does for smooth operation (Cameron and Green, 2019). Before starting any project, it is important to comprehensively analyse the possible risks and the steps that need to be taken to avoid them or at least lessen the damage they do to the project as a whole.
The Role of Management in The Success of Nakilat
A manager’s main job is to make a plan to meet the goals and objectives of the company. This means giving Nakilat’s employees the tools and tasks they need and setting realistic deadlines and standards for getting the job done. Planning requires managers in charge to keep an eye on how their teams are doing so they can make small changes when they need to (Englund and Graham, 2019). In addition, they must keep a clear picture of the company’s larger goals and aims.
Organising
Organising is among the key roles of management during a change process. Along with planning, Nakilat’s manager performs the role of organising the activities and making sure they are effectively performed. This can help a business or department to run smoothly, especially for those involved in the change (Englund and Graham, 2019). Organisational leaders need to plan everything, from making internal systems to determining which individuals or teams are best suited for specific tasks.
Leading
Nakilat’s managers should feel comfortable and confident telling their team members what to do daily and when big changes or challenges arise (Englund and Graham, 2019). This means setting goals and discussing new processes, products, services, or internal policies with a strong sense of direction and leadership. It involves the management of the organisation providing direction for the change. Therefore, leading is an important concept used during change management.
Controlling
Controlling is a function of management that ensures an organisation makes progress towards the established goals. Managers should ensure that performance is consistent with the set objectives (Englund and Graham, 2019). To ensure that all of the above parts of a company contribute to its success, managers of Nakilat should keep an eye on employee performance, the quality of work, and how well a project is done. In management, control is about ensuring that Nakilat’s long-term goals are being met and making any changes that are needed.
International Management
International management is an important part of management that should be used when incorporating a change. Due to globalisation, a worldwide trend in which countries are becoming more connected, and trade barriers between nations are falling (Hitt, Ireland and Hoskisson, 2019). Nakilat no longer has to sell services only in their own country. Based on this, they are advised to look at global markets to stay competitive. In addition, globalisation is made possible by several critical factors, and Nakilat, who wants to do well in this environment, must understand the key factors that make business more connected worldwide. For instance, the organisation should understand that the internet is among globalisation’s leading drivers. Therefore, international management is a concept that requires an understanding of globalisation.
An important part of international management is hiring people from all over the world. With the help of technological advances, Nakilat can now hire and keep workers across the globe (Lane and Maznevski, 2019). The company uses specific policies and programs to ensure that people from different backgrounds and cultures are included, get promoted, and stay with the company. As a result, Nakilat ensures that the right policies are in place to help manage a diverse workforce. The managers should be outsourced to specific countries to ensure the organisation can hire a skilled workforce more quickly. This is important in project management because it ensures the smooth running of operations. Therefore, to support a diverse workforce, Nakilat uses the right strategies and creates the right organisational culture.
Working with people from different cultures is an important part of international management. According to Lane and Maznevski (2019), global management involves understanding and appreciating the differences between people and getting better at managing by reducing bias and making everyone feel welcomed. Since Nakilat wants to grow its business worldwide, especially through its online platform, it has to work with people from various values and beliefs. For example, the organisation’s managers should learn about different cultures. This ensures that managers engage the views of different stakeholders regardless of their geographical location. As a result, Nakilat understands that they must create an environment where people from different cultures can feel at ease.
Different countries have their distinct ways of conducting business and establishing partnerships. With the growth strategy, Nakilat has a mandate to ensure they understand different clients’ values. Jacoby (2018) states that the Chinese and Japanese highly emphasise the quality of their commercial ties. However, Americans tend to concentrate more on the product itself than the business relationship (Jacoby, 2018). Guests are obligated to behave according to the norms of the nation hosting them. With this knowledge, the management of Nakilat can handle stakeholders from different cultures. Before participating in any project, especially those involving different people, managers need to conduct an extensive study.
Communication is important in international business, and being able to communicate well can often mean the difference between reaching goals in a new market and falling short of those goals. In addition, since there is always a need to share information in situations like change management, it is important for companies worldwide to have clear and effective lines of communication (Bogers et al., 2019). Based on this, several things need to be taken into account when looking at how well Nakilat communicates with stakeholders worldwide. Therefore, after understanding how people talk to each other, the first thing to consider is whether or not language barriers could hinder sharing of information.
The Impact of a Strategic Approach to HR and Its Application to Nakilat
The strategic approach ensures that HR adopts effective practices to satisfy employees. Collings, Wood, and Szamosi (2018) argue that employee satisfaction depends on what organisational staff tells the management. Due to a lack of feedback, employees do not know how much work and effort they use. Managers must learn how to give and receive feedback. Feedback makes a big difference at work because it promotes a good understanding of staff. It can help build trust, make employees happier, keep them motivated, and reduce employee turnover. With this plan, Nakilat can focus on employee feedback to learn about their problems inside and outside the company. A feedback system is a strategic move because it helps the organisation meet the needs of its employees.
The strategic approach enables HR to adopt practices such as training. This is intended to encourage flexibility and make it easier to transition between jobs, activities, and projects (De Stefano, Bagdadli, and Camuffo, 2018). As a consequence, human resources should be involved in establishing all training programs as soon as a problem emerges. In addition, given that one of the most important functions of HR is to reduce the amount of money lost within an organisation and the number of staff that leaves, it is the responsibility of HR to develop and implement training programs that will enable Nakilat to keep its exceptional employees. As a result, a strategic approach makes it possible for human resources to implement the appropriate solutions to the problem of employee turnover.
The strategy approach enables HR to adopt operations that support business strategy. By utilising vertical integration, there needs to be an appropriate match or strategic fit between the corporation’s business strategy and the HR strategy (De Stefano, Bagdadli, and Camuffo, 2018). The HR strategy should be in a position to help achieve Nakilat’s goals and mission. Through a strategic approach, the required workforce would be obtained, trained, maintained, motivated, and enabled to offer their greatest contribution to work performance per the needs of the corporate business plan. Therefore, the strategic approach enables HR to create an environment that supports employees to perform their roles effectively.
Conclusion
Nakilat adopts the changing culture to make it more productive and keep it ahead of the competition. Due to the contemporary business environment dynamics, Nakilat is embracing change to improve its operations. For example, the need to change was caused by a drop in sales and how well employees did their jobs. To effectively adopt the changes, the organisation is supposed to use change management principles. These practices help the company involve the right people in the change process, especially the employees. In addition, Nakilat should think about making an environment that is good for a diverse workforce and can handle customers worldwide. The organisation’s HR team should focus on modernising the way it works to meet the needs of both customers and employees.
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