CT 12 521
Saroona
CHANGESINTHESATORPORGANIZATIONINLINEWITHTHESAUDIARABIAVISION2030.docx6
MGT521-14222
Becoming a Master Change Agent
(MGT521) – (Managing Dynamic Environment)
Colorado State University – Saudi Electronic University
100 pts
Sarah Alsubaie
G200003625
Dr.Betsy
December 3, 2021
CHANGES IN THE SATORP ORGANIZATION IN LINE WITH THE SAUDI ARABIA VISION 2030.
Saudi Aramco Total Refining and petrochemical company. (SATORP) SATORP is an oil company that started in June 2014. The Jubail refinery, which is an ally to SATORP, produces white products from heavy products. The vision of SATORP is to ensure they have become the sole producer of petrochemicals in the Middle East and Asia.
SATORP's mission is to maximize is to meet the expectations of the stakeholders. Firstly, reliability and efficiency in terms of cost in the business are by making sure the company conforms to the environment, quality standards, health, and highest safety.
SATORP incorporates 4p values, including people, professionalism, partnership, and pride based on the culture. Tota and Saudi Aramco are the principal shareholders of SATORP. They are a global partnership that features petrochemicals and refining, solid financial power, and strategic commitment to the industry. These traits manifest in both Saudi Aramco and Tota's legacy of success in operating refining projects.
The minister of energy, mineral resources, and industry says that SATORP will be at the center stage to implement the vision 2030 of Saudi Arabia. The transformation in Saudi Arabia is seen to be bold, Visionary, and a step to change the world to be an evolving world, emerging technologies, and trends in the geopolitical.
SATORP will change and expand into areas that will make it more agile and responsive and lead the industry into a better energy future.
SATORP has diversified its activities where a stronger downstream has been developed, manufacturing of chemicals, innovation through new technologies, new business lines through acquisitions and investments, and development of renewable sources.
Diversification is one of the pillars for Saudi Vision 2030, which will stabilize the economy in the future. Diversification of SATORP into chemicals and its strategic plan to become a fully integrated global chemicals and petroleum enterprise leverages its resources and capabilities to create employment and help Saudi Arabia diversify the economy beyond the oil.
The amalgamation between SATORP and Saudi Arabian Basic Industries Corporation (SABIC) has led to a feasibility study on the development of a fully integrated crude oil to chemicals located in Saudi Arabia. In line with Saudi Vision 2030 goals, the project would lead to the provision of new opportunities towards creating a world-leading downstream sector in Saudi Arabia, which is built on four key drivers. Horizontal and Vertica interactions have been used to maximize the value from the kingdom crude oil production across the hydrocarbon chain.
There are some changes that SATORP needs to make to align with the Saudi Arabia vision 2030. Firstly is the creation of conversion industries that produce semi-finished and finished goods for diversification. Secondly, enhancing innovation and developing advanced technologies helps the SATORP produce high-quality products and compete favourably in the market. Thirdly, creating a topographic meter collaborates with the production technology that does not use radioactive sources to protect the environment.
Fourthly, it is through the development of several novel technologies, which aim at reducing the number of imports. The novel technologies include the new advanced material to repair defects in the wells cement sheath of high-pressure gas wells and improve the wellbore construction site, whose purpose is to reduce the amount of downtime. Ultimately, the development of high-value drilling fluid chemicals manufactured in the kingdom, thus creating jobs opportunities and reducing the number of imports that enter the country.
The changes that can make the organization align with the needs/changes in the external environment include mergers, launching new products, downsizing, acquisitions, Buyouts, and outsourcing of significant organization activities. Organizational change involves a difference in the organizational components such as the values, mission, culture, goals, structure, processes, technology, people in an organization, and vision. The change in the organizational components tends to improve the effectiveness and efficiency of the organization, thus leading to an increase in the value of the servers.
For the SATORP to compete favourably in the market and be the sole producer of the products, it has to merge with other companies or firms to have the market power. SATORP has to embrace innovation and be creative to be able to launch new products, which will change the taste of the customers. The SATORP organization should hire people who have various skills, and this outsourcing will enable the organization to improve efficiency and reduce costs. The SATORP organization should embrace capital-intensive methods, which are meant to reduce the cost of production; thus, a group of workers will be laid off hence downsizing.
Making the changes can also affect the reorganization of the departments, closing down certain manufacturing lines, opening up new branches all over the countries, and installing new technology. SATORP can improve efficiency in the organization when the different works are grouped under specific departments, and each department is given a manager to lead and monitor. SATORP can widen its markets by launching new branches across the country, thus making awareness of firms' products to the new countries, thus increasing the sales for SATORP. SATORP can produce high-quality products through the installation of new technology where the cost per unit is reduced.
Organizational change is usually intentional, and it must be planned since someone has to take the initiative to change the organizational component. Some organizational components such as systems and structures are easy to be adapted into the organization.
Culture change can occur if substantial change can be identified. Alteration of the reward systems by the management leads to a shift in the decision-making and creates committees, which will enforce the culture change. Behavioral change can occur in the organization when the workers understand the organization's structure, act, and accept.
Furthermore, change in the human resource department is much essential for the SATORP. Due to the decentralized system that we advocate for, the SATORP. The workers need to have quality skills to be in line with changes because of the firm adopting the new technology. This enables the firm to accomplish its objectives. The difference in managerial skills is essential for the organization since the managers are interested in innovative ideas, initiatives, and insights, which will positively impact the firms.
There are several factors that describe the firm's environment, including political factors, cultural factors, competition, Demographic, economic, social, and legal factors. Demographics is used to explain the economy's structure in terms of gender, sex, age, etc.
The cultural factors enable the organization to know what kind of products the society or the people surrounding the organization consume and know the way of life of the people.
The tools for action planning include contingency planning, decision tree analysis.
Contingency planning is a tool for action planning that involves setting up strategies used in case things fail to go as planned. Two tools are used during the contingency plan, which includes the decision tree analysis and Scenario planning.
Decision tree analysis is an analysis that involves consideration of various choices and possible consequences of the alternatives. After that, analysts are requested to plan for the following possible actions and gauge the effects. A sequence that involves alternating action consequences can extend, and the assignment of probabilities to each result follows.
Secondly, scenario planning involves the development of a certain number of scenarios that show how the future will unfold and later assess the implications of each consequence to the organization. This enables the organization to plan long-term goals and lay down some specific strategies to fulfill the long-term goals.
The third is the to-do list action tool. This action planning tool requires the managers to list down the steps that they will use to achieve the goals.
Fourth is the responsibility charting, which highlights the role to be played by each worker, the time that the worker is supposed to do it, and the date they are required to do it. This enables the organization to run smoot\hly since everyone knows what they are supposed to do. Responsibility charting helps improve the organization's transparency and effectiveness, such as SATORP, thus making each worker accountable for their actions. Responsibility charting aids in retaining information since each activity of the worker is usually recorded.
Communication has played a significant role during the changes.
Firstly is the media redundancy, which retains messages. Therefore, various media through multiple messages tend to raise the chance of people to retain and get their messages. Management usually assumes that once the message is sent, it is the work of the recipient to check the message since management assumes that the recipient has received the message.
Moreover, face-to-face communication is much effective when it comes t the delivery of information. Face to face involves direct communication of two individuals, which has fewer chances of miscommunication and significant involvement of both parties.
Line authority is significant in an organization. A proper laydown of guidelines makes the organization run smoothly since each manager in each department gives out the order to the subordinates, thus leading to the smooth flow of communication.
A supervisor who is immediate in terms of delivering information is crucial to the SATORP organization. This can occur once the level of trust between the worker and the employer is high.
Leaders who give out opinions during the changes are essential since the organization requires them to convince and persuade employees.
Communication has played a bigger role in fields such as coordinating, monitoring delegating, organizing, staffing and even budgeting. Delegating is a process where the supervisors assigns jobs to the workers and thus a vertical information isnused. A vertical communication refers to the process of delivering an information from the top level of management to the workers.
Organization of meetings and events, communication has played a key role. Communication has enable smooth run of the meetings since each participant in the organization understands the opinions and ideas that the other person says.
Communication has enable an effective planning by the organization thus enabling the organization to come up with well manageable budget.
References
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Khashan, H. (2017). Saudi Arabia's Flawed" Vision 2030". Middle East Quarterly.
Khan, M. (2016). Saudi Arabia’s vision 2030. Defence Journal, 19(11), 36-42.
Amran, Y. A., Amran, Y. M., Alyousef, R., & Alabduljabbar, H. (2020). Renewable and sustainable
energy production in Saudi Arabia according to Saudi Vision 2030; Current status and future prospects. Journal of Cleaner Production, 247, 119602.
Barker, R. T., & Camarata, M. R. (1998). The role of communication in creating and maintaining a learning organization: Preconditions, indicators, and disciplines. The Journal of Business
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