Organizational culture refers to the values and behaviors exhibited by employees, employers, customers, and other stakeholders in an organization. An effective organizational culture is essential as it enhances organizational performance, productivity, as well as profitability, all of which make an organization more competitive in a given market or industry. It should be understood that culture influences the day-to-day operations undertaken by organizational stakeholders. When recruiting new staff, every organization has the mandate of making them aware of the existing culture. Progrind International Oil Field Redress Services Company has a specific culture that has given it a competitive advantage over close competitors such as Al Ahlia Oilfields Development Co, Extreme Trading Mechanicla Equipment LLC, Masaood John Brown International, PILCO (Pipeline Construction Co), Union Gulf Services, and other upcoming industries in the oil service industry.
Effective communication is part and parcel of the organization, and it has led to its improved performance in the past three years. Moreover, effective communication has played a role in the organization’s significant increase in profitability in the recent years. In 2006, the organization recorded a profit of 22,834 Dh, and this increased further in 2007 when 1,023,565 Dh of profits was recorded. The organization is also known for the provision of free communal services, which are delivered to customers during a week set aside annually by the organization. It is a culture that during this week, the stakeholders visit customers at their doorsteps to provide services including gas and oil installations. One of the key beneficiaries of the communal services is the government. Its agencies often have oil installation services delivered to them at reduced and affordable prices. Good coexistence and relationship also form part of the organization’s culture.
These are enhanced through regular communication and understanding among the stakeholders. The strength of Progrind International’s culture is evident when it comes to communication. The organization’s leadership emphasizes on effective communication, and its contribution to the improvement of the organization’s performance cannot be doubted. Since the embrace of the cultural element, employees’ performance, and productivity have been on a steady incline. Nevertheless, the weakness of Progrind International’s culture has been evident in the good relationship and coexistence. Incessant disagreements and conflicts among the leaders and employees have jeopardized the good coexistence and relationship, which to some extent have affected performance. A change of leadership could be vital in helping improve good coexistence and relationship among the stakeholders of Progrind International.
In as much as Progrind International’s improvements regarding performance, productivity, and profitability are attributed to its effective culture, the embrace of motivational strategies has also played a crucial role. The leadership has come up with a strategy that ensures that employees exhibiting exemplary performance and behavior are rewarded biannually. The strategy has motivated the employees who put more commitment when undertaking their operations, and as a result, the organization’s overall performance and profitability have positive. Progrind International’s leadership has also embraced a strategy that sees an increase in wages and salaries of employees who bring or introduce a significant number of customers to the company. In the past one year, more government agencies and private companies interested in oil services have been attracted to Progrind International, thanks to the commitment and hard work put by the employees in marketing it. It should be noted that the strategy of increasing wages and salaries of employees has enhanced their motivation, and this has had an impact on the organization’s performance. The training and guidance given to the employees by the top and departmental leaders has to a large extent motivated the employees, and hence, the improvements in performance, profitability, and productivity are underlined. The motivational factors embraced by the organization such as rewarding employees who exhibit exemplary performance and behavior, an increase of wages and salaries of employees, and training and guidance of employees, can be described as extrinsic and intrinsic factors. Therefore, the most appropriate explanation for Progrind International’s level of motivation is provided by the cognitive evaluation theory of motivation.
The structure of organizations, Progrind International, included, play a crucial role in influencing the performance, profitability, as well as the competitiveness of organizations. The organizational structure of Progrind International has been inefficient and ineffective in the past one year, and this could threaten or tarnish the organization’s image in the local and international oil services industry. Currently, myriads of challenges that the organization faces are attributed to the ineffective and poor organizational structure. For instance, there are incessant disagreements and miscommunications between top leaders and employees, and these are owed to the undesirable and incompetent organizational structure. Apparently, the top leadership’s trust of the employees has been lost and vice versa, and this is the cause of the incessant disagreements and miscommunications being witnessed. On the other hand, in the past one year, there has been a significant decline in the prompt and quality delivery of services concerning oil and gas installations to customers.
Without doubt, the ineffective and inefficient organizational structure plays a role in this. It is argued that the organizational structure has continuously ignored the recruitment of more employees and creation of more departments to help ease the burden of services delivery. Instead, the structure has gone ahead to leverage on the minimal number of employees to deliver services to customers, and this has resulted in the late and poor service delivery. To overcome the mentioned challenges, the organizational structure should be changed to pave the way for the creation of more departments and recruitment of more employees to facilitate the delivery of prompt and quality services to customers. Besides, there should be a reshuffle of the organization’s leadership as this will help address the incessant miscommunications and conflicts in the organization.
