It is important to review the elements that determine the shape and the actual existence of the companies in the Egyptian petroleum market, one might detect the importance of the company’s control; one can confirm how successful the company is in handling its activities in the Egyptian petroleum sector, others have problems in maintaining the required high-level performance required
As a matter of fact, the effectiveness of human resource management (HRM) practices is contingent on organizational climate and competitive strategy. The concepts of internal and external fit suggest that the positive relationship between HRM and subsequent productivity will be stronger for firms with a positive organizational climate and for firms using differentiation strategies. On the other hand, the resource allocation theories of motivation predict that the relationship between HRM and productivity will be stronger for firms with a poor climate because employees working in these firms should have the greatest amount of spare capacity.
Framework to link management and productivity
The framework is five inter-related phases. We can start on one phase at a time or implement them simultaneously.
1. Establish a productive management structure
The first phase of the frame works includes the introduction of a formal organizational structure with responsibilities and accountabilities. Moreover, the overall productivity goals should be specified and set. Also, this phase requires the commitment of the top management, creation of the importance of improving the productivity and the engagement of all teams/colleagues to take part in this framework.
The Diagnose phase revolves around the assessment of the current state of business as the rate of productivity is evaluated. This second stage contributes to the identification of strengths and weighs the points of weakness. Moreover, it diagnoses the area of possible improvements.
A productivity diagnosis assesses the company’s productivity performance, through two main methodologies; quantitative and qualitative assessments. The first uses key indicators such as labor productivity (value added per employee) and sales per employee. On the other side, the qualitative one looks at productivity levels, such as product innovation, automation, service excellence… etc.
3. Develop road map
Reaching the third component of the suggested framework, this phase draws up a road map or action plan based on the findings from the productivity diagnosis. It sustains the part of decision making, as it identifies the action plan that should be implemented to increase productivity. This phase plans put into action determined timelines, targets and responsibilities.
4. Implement a productivity measurement system
Setting business plans is not limited to the implementation stage only, on the contrary, it should be extended to include a periodical evaluation of the plans set. Hence, this is the prime objective of the fourth stage. It should evaluate the effectiveness of the action plan, monitor performance and measure results. In addition, it should integrate productivity measurements into the existing management system.
5. Apply a performance management system
The last stage of the suggested framework monitors and compares productivity performance against department, organization and industry targets and benchmarks. Also, it puts in place a review and feedback mechanism in order to gather feedback on periodical basis with employees. This stage includes also a reward for employees based on their efforts by linking their performance appraisals, staff recognitions and incentive schemes to productivity. Not less importantly, the fifth stage aims at achieving maximum efficiency possible.
In conclusion, no one can deny the importance of the perfect mix that connects all elements of management combined with working environment to result in successful production process. It is our duty to adopt new administrative techniques hoping that they will aid our companies working in oil industry in Egypt in achieving the desired outcomes.
By: Hanan Abdel Moneim, Assistant General Manager for Business Development, PMS