PERFORMANCE MANAGEMENT PROJECT

ADNOC

SEPTEMBER 22, 2019

[COMPANY NAME]
[Company address]
Contents

Introduction ........................................................................................................................................... 2
Overall Process ...................................................................................................................................... 2
Ratings ................................................................................................................................................... 3
Outcomes ............................................................................................................................................... 4
Strengths ................................................................................................................................................ 5
Weaknesses ............................................................................................................................................ 5
Appendix ................................................................................................................................................ 5
Introduction

ADNOC is counted amongst the top tier Oil Companies of the world. Its function mainly lies

in the field of oil exploitation and extraction from considerable Oil and Gas reserves located

at Emirate Abu Dhabi. The company is predominantly state-owned, and almost 90% of

UAE’s Oil/Gas reserves fall under its jurisdiction. The enterprise first came into being during

1971 at Abu Dhabi, United Arab Emirates. Among its recent endeavours, ADNOC has

ventured into the area of oil exploration which utilises the advance seismic analysis

technology. The operations of Ruwais and Umm Al Nar refineries are under ADNOC’s

control. Cumulatively, the enterprise is responsible for the production of around 3.5 billion

barrels and 2 billion cubic feet of per day of Oil and Gas respectively. The enterprise has

installed 150 petrol stations across UAE. It has an employee strength of 19,300. With regards

to its ecological influence, ADNOChas set its company’s goals prioritising health,

environment, and safety.

The company headquarter is located at Abu Dhabi. Yousef Omair Bin Yousef is the acting

CEO, and Sheikh Khalifa bin Zayed Al Nahyan is the current Chairman of the Supreme

Petroleum Council. I interviewed Nora Almansoori, who is the HR Manager at ADNOC and

holds a vital strategic position within the organisation. Her role entails but is not limited to,

developing Performance Management System, implementing training and development

structure within the organisation, responsible for International hiring’s of Managerial cadre

for 26 countries, implementing innovative Recruitment strategies to fulfil business

requirements. She was kind enough to share a holistic picture of the Human Resource

strategies of the company.

Overall Process

According to Nora, the company follows a systemic procedure when it comes to devising

policies or processes for improving or appraising Human Resource activities within the
organisation. The first step towards this is defining what needs to be accomplished, in what

timeframe and whether it is aligned with the overall organisational goals. For any plan to

work, Nora believes that it has to be effectively communicated to the employees, and they

should be brought on board with it. There should be an idea of 'Shared Vision'. This is

achieved through regular formal meetings with the employees of every level. Hence, it can be

said with confidence that every employee of the company is appraised with organisational or

departmental goals.

The goals are first set at the corporate level, which is a long-term five-year rolling plan

focused on HCM. These are then cascaded down from the top level to the individual level,

and all the processes in between are aligned towards that. Once the goals have been

established and conveyed satisfactorily, the next step is to develop measures that provide

relevant data with regards to Human Capital practices. The organisation continually engages

itself in the process of reviewing and benchmarking its employee appraisal policies with that

of reputable companies of the local market. If found lacking, it improves its compensation

and rewards policy to stay competitive in the market and acquire the best talent possible.

Once the external analysis, which is done every five years, is complete, the organisation

looks within the company. Specific metrics, including KPIs, scorecards. Are developed for

employee performance evaluation. These performance metrics are used to determine whether

its employees’ performance aligns with the organisation’s performance goals and annual

business plan. Once the ratings for each employee are gathered, those scoring high are

rewarded in accordance to the market standard.

Ratings

There is an array of metrics used by the company to evaluate its employees. One of these is

the balanced scorecard. Within this method, multiple goals are set, and key performance

indicators are determined for each target. Ratings are done against each measurement which
can range from 1 to 5. 1 being least successful and five being most successful. The type of

scorecards implemented varies from department to department. They ensure that individual

performance contribution is aligned with the performance goal of the company. There is also

the concept of red flags, which are used to indicate lagging people development and

competency gaps. Other metrics include SWOT analysis, key performance indicators, and a

competency assessment program. In summary, employee appraisal can be divided into four

categories.

Category A: Reflects the company’s balanced scorecard results.

Category: Reflects divisional scorecard results.

Category C: Outlines day-to-day responsibilities of employees; the KPIs, what employees are

expected to deliver within the year.

Category D:This involves assessment of employees by their respective manager on each level

of organisation.

Outcomes

Nora asserted that the companies reward, compensation and performance philosophy is all

market-driven. Important decisions related to incentives, promotions, and rewards,

adjustment of salaries, succession planning, and career development are made based on

performance measures mentioned earlier. The benefits offered by the company are also

laudable; its salary scale is significantly larger than the market. The company also

compensates its employees for additional hours and time committed to the deployment of the

company related work. This can be reflected through the overtime compensation and the

compensation of the employees for working during holidays. It also pays for leisure trips of

some employees and may give extended leaves to others. All of these policies result in higher

retention rates.
Strengths

The foremost strength of ADNOC’s Performance management system is its Goal setting,

alignment and communication Process. The company has a clearly defined vision that it

communicates well to its employees. Furthermore, human capital policies and practices are

well integrated and energetically aligned to support the organisation’s shared vision. To

ensure this alignment, the company continuously reviews and adjusts its policies. It also has a

competent reward system that acknowledges the efforts of its employees and sets it apart in

the market as a key recruiter. An example of its exemplary reward system is its public

acknowledgement and accreditation of its Distribution Employees of calmly dealt with a

safety incident.

Weaknesses

For a very long time, ADNOC has been dependent on cheap labour available from India. This

has reflected poorly on the company’s profile as a promoter of low wages for workers. This

also means that a significant number of workforce is non-emirate, something that is changing

rapidly under the new Emiratization Scheme. Because of the new preference given to natives

when it comes to new hires, the existing non-emirate workforce feels that there is bias and

unjust within the organisation. This feeling leads to lower motivation levels. The company

would have to remedy that to be more inclusive towards its entire workforce. It can do this by

striking a balance between the expectation of individuals and the requirements of

Emiratization program.

Appendix

Interview:

Q. Please give a brief history of ADNOC.

Ans: ADNOC is counted amongst the top tier Oil Companies of the world. Its function

mainly lies in the field of oil exploitation and extraction from considerable Oil and Gas

reserves located at Emirate Abu Dhabi. It was founded in 1971 and had almost 20,000

employees working for it.

Q. What is the overall PM process?

Ans: The PM process is aligned with the company’s organisational goals. It makes use of

several KPIs to measure employee performance and make sure it is in accordance with the

organisation’s performance requirements.

Q. How might a broader organisation or department goals relate to the PM system?

Ans: Department goals are in perfect sync with organisation goal. We ensure this by the

continued process of reviewing and adjusting policies.

Q. Does the process vary by department or position?

Ans: Yes, it does.

Q. Can you please describe the evaluation process.

Ans: The evaluation process can be divided into four categories. These include scorecard

implementation, use of KPIs, manager evaluations.

Q. Does the organisation provide any support (e.g., training)? If so, what type?

Ans: After each evaluation cycle, we determine if the employees are lacking in certain areas

and provide training accordingly. The training programs vary from department to department.