Competitive Market Study in the United Arab Emirates

Competitive Market Study in the United Arab Emirates Background According to Butt, the performance of the oil and gas industry of the United Arab Emirates in the local and international markets is influenced by the work of the industry players and the productivity of the workforce (231).Advertising We will write a custom research paper sample on Competitive Market Study in the United Arab Emirates specifically for you for only $16.05 $11/page Learn More Productivity is influenced by the availability of skilled personnel who are well trained to use modern technologies to perform the upstream, midstream and downstream oil exploration and production activities. According to Butt, skilled personnel contribute significantly to the competitive positioning of a firm in the market (232). To ensure efficiency and effectiveness, companies operating in the global and local oil and gas industries use the 360 degree performance appraisal system to evaluate the level of employees (Vessenes, 11). This appraisal system enable s the management of the companies to set goals and objectives for employees and the firm as an entity to work at the improvement of managerial effectiveness. The approach enables the management to assess the effectiveness and efficiency of employees who can positively affect the competitive market position of the companies operating in the industry (Vessenes, 11). Dessler argues that the upsurge in the demand for oil and gas in the local and international markets has necessitated the industry to employ skilled personnel to perform the tasks of oil and gas exploration and production (1).Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More To achieve excellent performance targets which have a positive effect on the competitive positioning of the firms in the local and global markets, the oil and gas companies have adapted the 360 degree performance appraisal system to manage em ployees and the expatriates who work in the industry. Here, most of the expatriate employed in the oil and gas industry in the United Arab Emirates joined the companies from other countries as soon as the government discovered oil and gas in the country. Expatriates came in because of the shortage of skilled personnel to address the challenges and problems the companies operating in the oil and gas industry were experiencing. According to Langley and Guest, the need to respond to the increasing demand for oil and gas necessitated the country to embark on an ambitious program of sourcing for highly skilled personnel from other countries between 1990 and 2000 (2). The newly recruited employees working in the industry consisted of 91% expatriates of the country’s 2.4 million people by 2006. It is important to note that the public sector was the greatest employer because of the attractive benefits employees enjoed from the government. According to Randeree and Chaudhry, the urgen t need for trained and skilled personnel to work in the fields based on the exploration and production of oil in the United Arab Emirates was the reason for the ministry of labor and social services and the UAE council of ministers to identify training and development needs of the people (8). Here, the Government partnered with training institutions to teach skills required for the exploration and production of oil to the local people.Advertising We will write a custom research paper sample on Competitive Market Study in the United Arab Emirates specifically for you for only $16.05 $11/page Learn More However, the companies which operate in the sphere of exploration and production of oil and gas undergo significant challenges in employing the local people who demand higher salaries, better job security, shorter working hours, and greater employment benefits (Rees, Mamman Braik 2). The employees in the oil and gas industry in the UAE positively influence th e performance of the oil and gas sector in the international market, which is partially driven by the underlying population growth in the consumer market, and the rise in the demand for oil and gas in emerging markets such as China, South East Asia, and Africa. 50% percent of the market position and performance of the oil and gas industry in the United Arab Emirates (UAE) is influenced by the performance contributions of each individual employee against established objectives and standards (Rees, Mamman Braik 2). The financial performance of the companies in the industry makes significant contributions to the sharp rise in oil and gas prices in the international markets which contribute to the strength of the market position of the firms. The phenomenon was observed before the 2008 sharp fall in the international prices of oil and gas which created a decline in the market position and financial performance of the companies in the international and local markets. A summary backgroun d investigation shows that the exploration and production of oil in the United Arab Emirates is run by the Abu Dhabi National Oil Company (ADNOC), which was established in 1971, and operates a consortium of subsidiary companies. Zakum development company (ZADCO) is one of the subsidiary companies that make ADNOC with a workforce which is involved in the exploration, mining, and production of gas and oil in the UAE. Employees with specialized skills in the production of oil and gas have contributed significantly to the increased production capabilities of the companies under the directions of the top level management which uses the 360 degrees performance appraisal technique (Business Monitor International United Arab Emirates Oil Gas Report, 1).Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More To achieve the objectives of the desired market position, the management of the companies has integrated a performance appraisal system for all employees who work in the industry to evaluate their contributions to the performance of the oil and gas industries. The management is responsible for the management of customers, the analysis of the market positions, the ultimate pricing of oil in context of the global oil prices, the quantity and quality of oil production, the market size, the customer value, maximization of market share and profit in the oil industry. Scope of the oil and gas industry in UAE This study focuses on the effect the oil and gas companies, which use the 360 degree performance appraisal system for performance evaluations, have on the local and international markets. An examination of effect of the 360 degree performance appraisal system on the performance of the human resource and the market position of the oil and gas industry in the United Arab Emirates is cri tical in answering the research questions. The Oil and Gas Industry in the UAE A study by Rees, Mamman and Braik shows that the workforce in the oil and gas industry contributes 90% to the performance of the sector which is the key driver of the economy of the United Arab Emirates, which possesses 10% of the world’s oil reserves (12). An effective workforce has contributed positively to the industry by transforming the economy from a desert region to one of the best performing economies in the Middle East by increasing the revenue required for the provision of social services and for the rapid economic growth and expansion. Expatriates working in the oil and gas sector consist of 85% of the 4.337 million workers according to the 2012 statistical data. The licensing of the companies involved in the exploitation of oil and gas in the United Arab Emirates is done according to the constitution of the UAE. Under the constitution, the licensing for the development of the oil and ga s resources is an exclusive task of each Emirate. Typically, around 95% of the oil produced in the UAE is from Abu Dhabi. The main companies involved in the production of oil and gas in the UAE include ADNOC, Dubai Petroleum Company (DPC) for upstream operations, Abu Dhabi Marine Operating Company (ADMA-OPCO), and Dubai Natural Gas Company (DUGAS), which is owned by the state and responsible for the production and transportation of gas from the offshore fields. A critical review of the licensing of the production of oil and gas in the UAE shows that ADNOC holds the majority shares and is considering limiting the number of foreign companies involved in the exploration and production of oil in the UAE. The United Arab Emirates has an ambitious investment plan on the upstream production activities to enhance the recovery of oil and gas. The strategy is to raise the production capacity to 3.5 million barrels a day by investing a US $60 billion in the next five years to achieve the targe t. To enhance competitive exploration and production of oil and gas, the government of the UAE has awarded contracts to Hyundai worth US $1.88bn for the exploration and production of oil from the Satah al-Razboot (SARB) regions, the National Petroleum Construction Company (NPCC), and Petrofac Emirate and Daewoo Shipbuilding Marine Engineering (DSME) respectively for the production of oil and gas in other fields. Market Position Abu Dhabi National Oil Company (ADNOC) The market is the key driver that has significant effects on the financial performance of the company and its competitive position. To improve the performance and effectiveness of the company, it was important to restructure the main company into five autonomous business units under a directorate. Each directorate offers services in the exploration, production, and marketing of oil and gas. To improve accountability, the restructuring, which was implemented, affected different companies under the coordination of ADNOCâ €™s project directorate, which coordinates the management, human resource, and administration units. In this case, the critical components that contribute to the competitive strategy formulated by the company are the five new autonomous units of the main company (Rutledge, 9). ADNOC operates as a joint venture with other companies and has invited western countries, which contribute skilled personnel, enabling the company to improve its market strategy and competiveness. Employees in the industry do not like the 360 degrees performance appraisal system as a tool to determine the marketing strategy of the oil and gas industry in the country. The critical components of the performance appraisal system that affect the performance and marketing position of the oil and gas industry include the assessment centers, human resource accounting, and behaviorally anchored methods. Managerial effectiveness provides the organization with an evaluation of complete assessment of the effectivenes s of the oil companies performance and the development needs of the company. Market position A report by the Business Monitor International United Arab Emirates Oil Gas Report shows that 61.4 % of employees consider the 70% market share held by the company to be a direct result of the 360 degree performance appraisal system (1). A positive impact is created on the market position held by the company because of the impact caused by the 360 degree. Over 60% of the employees regard current market position and the competitive strategy to be as a result of the problem solving capabilities of the management, the promotion of teamwork, management competence in creating the right company mission and vision statements, ability to create strategic awareness, management drive to achieve organizational goals and objectives, and the ability of the management to enhance teamwork and motivate employees toward improved performance. Employee contributions to the company’s upstream interests in the production of oil and gas with its commercial production concentrated in the Dubai Natural Gas Company (DUGAS), which started the commercial production of oil and gas in 1980 (1). That is in addition to other national companies that ADNOC has invested its shares in. Besides, the company is undertaking different expansion projects to increase its production capacity (Vessenes, 11). The strategic aims of the company is to boost oil and gas production and market share in the oil and gas market, both locally and internationally and enhance the performance of the downstream operations of the company at different refineries. To enhance the performance of the downstream and upstream, the management has strategized to use technology to design and develop the latest engineering components to perform downstream activities with efficiency and effectiveness (Business Monitor International United Arab Emirates Oil Gas Report, 1). Zakum development company (ZADCO) ZADCO was constituted in 1977 under the promulgation of Sheikh Zayed Bin Sultan Al Nahyan of law No. 9 to incorporate the company into the development and production of oil in its present area of work. ZADCO is a high performance subsidiary of the fully integrated oil and gas company ADNOC in the United Arab Emirates (UAE) with the wider perspective of carrying out petroleum industry business related activities, which include mining and exploration for oil and gas. ZADCO is a subsidiary that deals with the production of oil in the Umm Al Dalkh, Satah, and the upper Zakum fields using the latest oil mining technologies, which have given the company a competitive edge, enabling it to become the leading oil mining company in the UAE (Stauffer, 9). Methodology A literature review of secondary sources including books, articles, journals, and online sources will provide the required data for the study to determine the competitive market position of the oil and gas industry in the United Arab Emirates. The resear ch method will consist of a combination of both qualitative and quantitative approaches to answer the research question on the competitive market study in the oil and gas industry at the national and company levels. The choice of the method of study is based on the online availability of information on the market position and performance of the oil and gas industry of the United Arab Emirates. Different articles will be studied and the results will be deductive from the sources of information used as sources of data. Findings According to the results in the appendix, 15% of organizational employees agree that the management needs to improve on problem solving skills, managerial skills, and decision making skills to improve the performance of the organization in the oil market. 90% of the employees agree that the management has driven the employees to improve the productivity of the firm, 85% regard management as excellent in strategic planning, 90% regard management as having cellar mission and vision statements. The factors that contribute to organizational performance including teamwork, effective communication, and problem solving skills are rated above 50%. Analysis ZADCO holds a 60% market share of the oil and gas industry in the UAE and a 10% share in the global market which has been improving significantly. The reason for continuous growth is in the performance of the employees in the companies. Conclusion The effect of the 360 degree performance appraisal system on the performance of the employees who work in the oil and gas industry in the United Arab Emirates shows a direct positive effect on the market position of the firms. The results have shown that the competitive market position of the United Arab Emirates oil and gas companies show a positive relationship with the performance of organizational employees. The appraisal system enables management to understand and determine the rationale for continuous learning and the ability to make changes at management level by restructuring the company. That is in addition to increased levels of trust the employees develop, and the ability to collect information from different sources for effective decision making and improved performance, which contributes to enhanced organizational performance and market position. Business Monitor International: United Arab Emirates Oil Gas Report 2013. Web. Butt, Gerald. ’’Oil and Gas in the UAE.† United Arab Emirates: a New Perceptive. Ed. Ibrahim Abed and Peter Hellyer, London: Trident Press Ltd, 2001. 2331-249. Print. Dessler, Gary. Human Resource Management, 13th ed. Upper Saddle River: Prentice Hall, 2012. Print. Langley, Ian, M, and Mark Guest, 2012, The Global Oil Gas Workforce  Survey, 2012. Web. Randeree, Kasim, and Abdul Ghaffar Chaudhry. â€Å"Leadership in Project Managed Environments: Employee Perceptions of Leadership Styles within Infrastructure Development in Dubai.† International Review of Business Re search Papers 3. 4 (2007): 220-232. Print. Rees, Christopher J., Aminu Mamman, and Aysha Braik. â€Å"Emiratization a Strategic HRM Change Initiative: Case Study Evidence from a UAE Petroleum Company.† The International Journal of Human Resource Management 18.1 (2007): 33-53. Print. Rutledge, Emilie. Monetary Union in the Gulf: Prospects for a Single Currency in the  Arabian Peninsula. London: Routledge, 2009. Stauffer, David. The Power of Competitive Intelligence, Cambridge: Harvard Business School Publishing, 2003. Print. Vessenes, Peter. â€Å"Cash Is King, but Marketing Is Everything.† Journal of Financial  Planning 16.12 (2003): 1-19.Print. Appendix This questionnaire is used to collect data on the effect of the 360 degree performance appraisal system on the performance of the employees at the Zakum Development Company (ZADCO), and the direct effect it has on the performance of ZADCO development company in the local and international oil markets. Any informati on provided by the respondent is confidential and cannot be used for any other purpose except to conduct this study. You are kindly requested to fill and submit the questionnaire. Questions about the management Experienced and understands the management skills Strongly agree Agree Disagree Strongly disagree Solves problems, seizes opportunities plans for action Strongly agree Agree Disagree Strongly disagree Is proactive in making tactical decisions Strongly agree Agree Disagree Strongly disagree Technical and professional skills Is expertise in area of specialization Strongly agree Agree Disagree Strongly disagree Positively solves technical problems and anticipates problems Strongly agree Agree Disagree Strongly disagree Solves problems innovatively Strongly agree Agree Disagree Strongly disagree Is strategically aware of the financial position of the company Strongly agree Agree Disagree Strongly disagree Communicates clearly Strongly agree Agree Di sagree Strongly disagree Positively influences teamwork Strongly agree Agree Disagree Strongly disagree Creates business strategy Strongly agree Agree Disagree Strongly disagree Mission and vision statement of the company exists Strongly agree Agree Disagree Strongly disagree Has a structured planning mechanism Strongly agree Agree Disagree Strongly disagree Manages to gain an edge over competitors Strongly agree Agree Disagree Strongly disagree Makes the company products available than the competitors Strongly agree Agree Disagree Strongly disagree Strives to make higher profits Strongly agree Agree Disagree Strongly disagree Results Ranking Strongly agree Agree Disagree Strongly disagree Total The management 1 2 3 4 Scale Experienced and understands the management skills 7 5 3 5 20 Solves problems, seizes opportunities plans for action 3 4 7 1 15 Is proactive in making tactical decisions 3 10 3 0 16 Technical skills Strongly agree Agree D isagree Strongly disagree Results Is expertise in area of specialization 10 2 1 13 Positively solves technical problems and anticipates problems 15 4 1 20 Solves problems innovatively 11 9 20 Is strategically aware of the financial position of the company 18 2 20 Communicates clearly 18 2 20 Positively influences teamwork 10 7 17 Creates business strategy 17 1 18 Mission and vision statement of the company exists 18 2 20 Has a structured planning mechanism 17 3 20 manages to gain an edge over competitors 16 2 1 19 Strives to make higher profits 18 2 Analysis of the results Management competencies Ranking Rating between high =7 and low=1 percentage Self Manager Peer team Average Influence 1 4 1 1 2 4.3 61.4 Communication 2 1 7 6 3.5 4.2 60 Impact 5 3 9 2 5 4.9 70 Problem solving 7 2 3 7 5.1 3.7 52.9 Strategic awareness 5 6 3 4 5.1 4.9 70 Vision 9 7 2 2 5.6 4.3 61 Organization 4 5 8 7 6 4.8 68 Teamwork 3 9 3 9 6.3 4.1 59 Drive 8 8 3 4 6.4 3.5 50

Understanding the Triarchic Theory of Intelligence

Understanding the Triarchic Theory of Intelligence The triarchic theory of intelligence proposes that there are three distinct types of intelligence: practical, distinct, and analytical. It was formulated by Robert J. Sternberg, a well-known psychologist whose research often focuses on human intelligence and creativity. The triarchic theory is comprised of three subtheories, each of which relates to a specific kind of intelligence: the contextual subtheory, which corresponds to practical intelligence, or the ability to successfully function in one’s environment; the experiential subtheory, which corresponds to creative intelligence, or the ability to deal with novel situations or issues; and the componential subtheory, which corresponds to analytical intelligence, or the ability to solve problems. Triarchic Theory of Intelligence Key Takeaways The triarchic theory of intelligence originated as an alternative to the concept of general intelligence factor, or g.  The theory, proposed by psychologist Robert J. Sternberg, contends that there are three types of intelligence: practical (the ability to get along in different contexts), creative (the ability go come up with new ideas), and analytical (the ability to evaluate information and solve problems).The theory is comprised of three subtheories: contextual, experiential, and componential. Each subtheory corresponds to one of the three proposed types of intelligence. Origins Sternberg  proposed his theory in 1985 as an alternative to the idea of the general intelligence factor. The general intelligence factor,  also known as  g, is what intelligence tests typically measure. It  refers only to â€Å"academic intelligence.† Sternberg argued that practical intelligence- a person’s ability to react and adapt to the world around them- as well as creativity are equally important when measuring an individuals overall intelligence.  He also argued that  intelligence isn’t fixed, but rather  comprises a set of abilities that can be developed.  Sternbergs assertions led to the creation of his theory.   Subtheories Sternberg broke his theory down into  the following  three subtheories: Contextual subtheory: The contextual subtheory says that intelligence is intertwined with the individual’s environment. Thus, intelligence is based on the way one functions in their everyday circumstances, including one’s ability to a) adapt to one’s environment, b) select the best environment for oneself, or c) shape the environment to better fit one’s needs and desires.Experiential subtheory: The experiential subtheory proposes that there is a continuum of experience from novel to automation to which intelligence can be applied. It’s at the extremes of this continuum that intelligence is best demonstrated. At the novel end of the spectrum, an individual is confronted with an unfamiliar task or situation and must come up with a way to deal with it. At the automation end of the spectrum, one has become familiar with a given task or situation and can now handle it with minimal thought.  Ã‚  Componential subtheory: The componential theory outlines t he various mechanisms that result in intelligence. According to Sternberg, this subtheory is comprised of three kinds of mental processes or components:Metacomponents enable us to monitor, control, and evaluate our mental processing, so that we can make decisions, solve problems, and create plans.Performance components are what enable us to take action on the plans and decisions arrived at by the metacomponents.Knowledge-acquisition components enable us to learn new information that will help us carry out our plans. Kinds of Intelligence Each subtheory reflects a particular kind of intelligence or ability: Practical intelligence:  Sternberg called one’s ability to successfully interact with the everyday world  practical intelligence. Practical intelligence is related to the contextual subtheory. Practically intelligent people are especially adept at behaving in successful ways  in their external environment.Creative intelligence:  The experiential subtheory is related to creative intelligence, which is one’s ability to use  existing knowledge to create new ways to handle new problems or cope in new situations.Analytical intelligence:  The componential subtheory is related to analytical intelligence, which is essentially academic  intelligence. Analytical intelligence is used to solve problems and is the kind of intelligence that is measured  by a standard IQ test Sternberg observed that all three kinds of intelligence are necessary for successful intelligence, which refers to  the ability to be successful in life based on one’s abilities, personal desires, and environment. Critiques There have been a number of critiques and challenges to Sternberg’s triarchic theory of intelligence over the years. For example,  educational psychologist  Linda  Gottfredson says  the theory  lacks a solid empirical basis, and observes that the data used to back up the theory is meager. In addition, some scholars argue that practical intelligence is redundant with the concept of job knowledge, a concept that is more robust and has been better researched. Finally, Sternberg’s own definitions and explanations of his terms and concepts have at times been imprecise. Sources Gottfredson, Linda S. â€Å"Dissecting practical intelligence theory: Its claims and evidence† Intelligence, vol. 31, no. 4, 2003, pp.343-397, https://doi.org/10.1016/S0160-2896(02)00085-5Meunier, John. â€Å"Practical Intelligence.† Human Intelligence, 2003. intelltheory.com/practicalintelligence.shtmlSchmidt, Frank L., and John E. Hunter. â€Å"Tacit Knowledge, Practical Intelligence, General Mental Ability, and Job Knowledge† Current Directions in Psychological Science, vol. 2, no. 1, 1993, pp. 8-9,  https://doi.org/10.1111/1467-8721.ep10770456Sternberg, Robert J. Beyond IQ: A Triarchic Theory of Human Intelligence. Cambridge University Press, 1985.Sternberg, Robert J. â€Å"The Theory of Successful Intelligence† Review of General Psychology, vol. 3, no. 4, 1999, 292-316, http://dx.doi.org/10.1037/1089-2680.3.4.292â€Å"Triarchic Theory of Intelligence.† Psychestudy, https://www.psychestudy.com/cognitive/intelligence/triarchic