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KOC Task

This document provides an overview of Kuwait Oil Company (KOC), the largest oil producer in Kuwait. KOC was founded in 1934 and is now a subsidiary of the Kuwait Petroleum Corporation. The company engages in oil exploration, drilling, production, and exports. While KOC has strong financial performance due to high-quality assets and management, it scores low on gender diversity, with women making up less than 25% of employees and even fewer in senior roles. However, the company offers competitive pay and benefits to attract international talent. KOC also focuses on employee satisfaction, conducting surveys to identify stressors and offering training to boost engagement. In hiring, the company evaluates personality and values fit using the person-environment

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0% found this document useful (0 votes)
349 views22 pages

KOC Task

This document provides an overview of Kuwait Oil Company (KOC), the largest oil producer in Kuwait. KOC was founded in 1934 and is now a subsidiary of the Kuwait Petroleum Corporation. The company engages in oil exploration, drilling, production, and exports. While KOC has strong financial performance due to high-quality assets and management, it scores low on gender diversity, with women making up less than 25% of employees and even fewer in senior roles. However, the company offers competitive pay and benefits to attract international talent. KOC also focuses on employee satisfaction, conducting surveys to identify stressors and offering training to boost engagement. In hiring, the company evaluates personality and values fit using the person-environment

Uploaded by

Khurram Aziz
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 22

JANUARY 3, 2022

NAME OF STUDENT
[COMPANY NAME]
[Company address]
Contents
Section 1: Introduction...............................................................................................................1

Section 2: Individuals in the Organization.................................................................................2

Chapter 1: Diversity...............................................................................................................2

Chapter 2: Attitudes and Job Satisfaction..............................................................................3

Chapter 3: Personality and Values.........................................................................................4

Chapter 4: Perception and Individual Decision-Making........................................................4

Chapter 5: Emotions and Moods............................................................................................4

Chapter 6: Motivation Concepts and Applications................................................................5

Section 3: Group Behavior.........................................................................................................6

Chapter 8: Work Teams.........................................................................................................6

Chapter 9: Power and Politics................................................................................................7

Chapter 10: Communication..................................................................................................8

Chapter 11: Leadership..........................................................................................................9

Chapter 12: Foundations of Organization Structure............................................................10

Section 3: The Organization System........................................................................................10

Chapter 13: Organizational Culture.....................................................................................11

Chapter 14: Human Resource Policies and Practices..........................................................12

Chapter 15: Organizational Change and Stress Management..............................................13

Chapter 16: Conflict and Negotiation..................................................................................14

Conclusion................................................................................................................................15

References................................................................................................................................18
Section 1: Introduction
Kuwait Oil Company (KOC) is one of the leading companies of Kuwait. The headquarters of
KOC is in Ahmadi, Kuwait. Kuwait petroleum corporation is the parent company of the
Kuwait oil company. This is a government-owned holding company. In 2013, Kuwait was the
tenth-largest country with respect to the production of oil as this is an oil-rich country and a
major portion of the economy of the country is based upon oil commodities. In crude oil
manners, the Kuwait is fifth largest exporter as well, due to the increased demand for crude
oil in the international market it had expanded a lot. Emad Sultan is the sole managing
director of the company, and the company was founded by Anglo Persian oil company and
Gulf oil as a partnership company in 1934. These two partners were having an equal stake in
the company. The concession of oil awards was distributed on 23 December 1934. In 1936,
the official company started the drilling operations in order to find out the oil. For
digitalization in the oil sector, the KwIDF technology is being used and such projects are
launched by the company in order to boost the productivity of oil and gas. BP and Gulf were
able to have the Kuwait oil at their very ownable terms for sale in Europe and other related
areas. KOC was reverted to Kuwaiti ownership and the special association with Gulf was
came to an end in 1975 (Al-Mutairy, Yousef, Fouzy, & Shareef, 2016; Analytica; Crystal,
2016; KOC, 2021).
In on-shore and off-shore surveys the company is engaged in exploration operations and is
producing the fields. Currently, the company is one of the largest oil-producing companies in
the world. There are four major sections of KOC including the drilling, exploration,
production, and exports of oil-related products. As a subsidiary, KOC works under the banner
of the Kuwait petroleum corporation. The company is having offices in Kuwait and London
in order to facilitate its national and international clients respectively (Al-Mutairy et al.,
2016; KOC, 2021, 2022). Due to excellent management and strategic position the company is
securing profitability and consistency in achieving its desired goals. Furthermore, high-
quality assets have rendered the strong position of the company in the market. Global
economic forums and the financial market have also reported the strength of the company.
The excellent human resource practices caused a fruitful impact on the overall productivity of
the firm. The growing economy of Kuwait may be reflected through the good performance of
the Kuwait oil company. The remarkable performance of the oil sector of Kuwait can be seen
through the KOC’s financials.
Section 2: Individuals in the Organization

Chapter 1: Diversity

Diversity and inclusion have been the two of the main aspirations of the corporate sector on a
global scale, and yet the energy industry has been falling short in their role in nurturing and
encouraging diverse talent. This holds true from the gender, cultural, racial, and disability
diversity. There are fewer women employed in the oil and gas industry compared to any other
sector in the world and accounts for employing less than one quarter of the female population
and these figures tend to grow smaller as the ladder progresses in the chain of command and
business (Capello, 2011; Williams, Kilanski, & Muller, 2014). Women only make 22% of the
employees worldwide in the oil and has sector, and these percentages tend to decrease with
the increase in the level of seniority. According to recent statistics, the entry level positions
are responsible for 27% employment to women, 17% can be found at senor roles and for
executive level positions the percentage is less than one within the global oil and gas sector.
The MENA region and Kuwait is a culturally regressive region and the participation of
women in workforce is less in these areas and their roles within the oil and gas sector are
more constrained. Women are likely to hold positions in support functions like information
and technology, human resources, legal and have lesser representation in the across
manufacturing, engineering and research (Hosnia & Capello, 2013; Pearl-Martinez &
Stephens, 2016; Shortland, 2018).
One of the main aspirations of the company is to hire new talent and increase diversity
representation. Kuwait is included in top ten gender disparity countries from MENA region.
At KOC the board of directors and management mainly includes male members. Moreover,
the organizational structure shows that there is scarcity of new talent in management. The
participation of women in the Oil Sector of Kuwait follows international trends, but still
below the average (24%). However, the company is favorable towards hiring international
talent. The company offers effective remuneration policies to attract potential workers. There
are generous packages offered, that cater bonuses and living expenses for expatriates. Thus,
while the company rates low on gender diversity, the company has favourable policies for the
inclusion and development of international talent.
Chapter 2: Attitudes and Job Satisfaction

The attitude relating to the workplace and the environment of the organization holds a strong
association with the overall job performance and satisfaction. The culture of KOC is
welcoming and caters to the needs of its employees so that it can develop an environment and
culture of content and boost profitability and performance. In a recent report the CEO of the
company was cited to state “Employees are encouraged to work hard in their pursuit of
greatness, and we are appreciative for their outstanding efforts. We welcome peers to become
a part of our high-energy, high-challenge culture. We have a wide range of job openings in
many fields. At KOC, we strongly emphasize and encourage both teamwork and individual
contributions (Al-Ghnemi et al., 2019).
However, it is notable that the attitude and satisfaction are two of the main tenants of
performance at the workplace. The company has the following tools and processes for
evaluating the attitude and satisfaction of the employees.
 KOC evaluates their employees on several basis before hiring
 The company offers numerous benefits and learning programs to their employees and
thus expects that they work with morale 
 Offers succession planning and career planning to increase the satisfaction and
engagement of employees.
 There are internal surveys conducted to evaluate the grievances of the employees also
to target potential stressors.
 The company focuses on the development of abilities and competencies of the
employees for driving satisfaction and developing a positive attitude.
Chapter 3: Personality and Values

The personality and values of the individuals are two of the main factors about the employees
that is judged by the management team. The management team at KOC implements person–
environment compatibility theory (Kaplan 1983) while hiring. The management believes that
the employees need to adhere to the values and culture of the organization so that they can fit
effectively. The P-E model details two main factors that influence the work performance of
employees based on the environment and culture of the firm. One can be explained as the
objective environment that is inclusive of all the physical elements of the work environment
that are independent of the perspective of the individuals and the other is the subjective
environment which is explained as the situations and the events that are encountered by the
individuals or the employees at the workplace. If there is no proper fit between the person
and environment it results in negative outcomes for the organization as well as the employee
(Al-Hemoud & Behbehani, 2017). Thus, the concept of work compatibility is one of the main
factors under consideration for the hiring and skills development team while they are
recruiting new talent. The firm looks for employees that are efficient, proactive, can operate
within teams and have the capability to upgrade themselves with the developments in the
company and the industry.

Chapter 4: Perception and Individual Decision-Making

KOC is on a mission to foster friendly and healthy relationships among the employees by
developing a supportive atmosphere in which they can communicate openly. KOC also offers
effective imbursement packages and has also developed day care centres that allows the
employees to perceive that the management is concerned about their wellbeing.
Also, the management at KOC wants to develop a system of strong individuals, thus, it values
employees that can foster decision making skills. Employees at KOC use a pragmatic
decision-making approach to create solutions, define their decision criteria, looking for the
best option, and then formulate and reinforce choices. The management evaluates these
abilities before hiring new employees and develops training programs catering to the
development these competencies as well.

Chapter 5: Emotions and Moods

The research in organizational behaviour is indicative that emotions and mood of the
employees are influential on their commitment, creativity, work quality and performance,
turnover, retention and decision making abilities (Hume, 2012; Lang, 2019). Emotions are
thought to decrease the organizational productivity and limits the abilities of the employees.
The management of the company are committed to their employees, they focus on their
personal and professional development. However, being one of the leading firms in the oil
and gas exploration sector in the country, they demand adept performance from their
companies. The future vision of the company also includes development of employees. Thus,
as a resort to evaluate the emotional intelligence of their employees, the management and HR
evaluates the EQ of the employees during and after hiring. One of the main reasons for the
employees have strong EQ is the fact that the oil and gas sector is a competitive industry, and
it is essential for employees to manage their emotions.

Chapter 6: Motivation Concepts and Applications

The company holds strong beliefs for the development of motivation for the enrichment of
their culture. The organization is one of the top recruiters and believes in the enrichment and
morale development of its staff. There are numerous models that can be used for studying the
influence of motivation and other environmental factors on the performance of employees.
One of the main motivation models used by the management is the person environment fit
model.
The concept of work compatibility that is evident in the functions of KOC can be found in
notable motivation theories in human resource management; hygiene theory (Herzberg,
2005), characteristics theory (Ehrhart, 2006), Kaplan (1983) person–environment
compatibility theory, the demand control theory by (Beehr, Glaser, Canali, & Wallwey,
2001), and balance theory (Sternberg, 1998). Moreover, the management of KOC is
committed to the development of morale and motivation of its employees. The HR head of
the company has stated that “We understand how it feels to start a new job in a new country.
Because of cultural, lifestyle, and language differences, the challenges and difficulties you
must overcome in a foreign nation can be tiring. However, you can rest confident that we will
always be by your side as we embark on this historic trip. As a result, we make certain that
your hard work and devotion are rewarded in a variety of ways. When you join KOC, you
can anticipate a competitive salary as well as a comprehensive incentives and benefits
program” (KOC, 2021).
Thus, this indicates that.
 The company values its employees.
 Hires talented employees from all over the world.
 Offers lucrative salaries and benefits packages to attract employees.
 Offers skills enhancement and learning opportunities.
 Offers annual bonuses and living expenses for expats.

Section 3: Group Behavior

Chapter 8: Work Teams


Work teams and teamwork is a primary facet of the organizations of the present day and age.
Especially in the oil and gas industry organizations have been making efforts for eradication
of error and incidents that take place at work through the development of teams, training and
improving the harmony amongst the team members to inculcate a scenario of progression and
confidence upon one another. in previous research studies employees from the oil and gas
industry have responded in favour to the development of teamwork. For example in the study
by Crichton (2005) majority of respondents were favourable towards development of team
based competencies and reported that responsibilities of team leaders were inherent for
improving the coordination among the teams. Moreover, there have been recent demographic
shifts within the oil and gas sector and the employees are demanding changes in the working
environment through the development of agile environments. The oil and has sector are one
of the most prominent, if not the most, industries in Kuwait and the MENA region and young
employees are demanding change in the role played by the oil and gas companies in the
society. In coalition with other oil and gas firms, KOC also operates in the relentless
environment where change is constant, and pressure is high. Thus, there is a high requirement
for the employees and work teams to be agile. In a recent report by Handscomb, Sharabura,
and Woxholth (2016) it was reported that oil and gas organizations are developing cross-
functional teams to incorporate agility in their environment so that dynamic capabilities can
be developed and the abilities of resilience, efficiency and reliability are incorporated. The
management at KOC is inherent on this mission and has developed programs that focus on
the development of dynamic capabilities and effectiveness of the employees through
partnership with Harvard University. There is also a training competency team that is
responsible for the development of cross-functional work teams and all other necessary skills
within the new and old employees. In 2019, the CEO of KOC Emad Mahmoud Sultan,
launched the Harvard Fast Tracker Development Program. The program is targeted at the
development of all necessary skills and abilities and inculcates 61 employees in a single
rotation (Al-Mutairy et al., 2016; KOC, 2021, 2022).

Chapter 9: Power and Politics

Power and politics are a main aspect of the organizational behavior. They are indispensable
and exist at every level of the organizational framework. The power dynamics are defined in
context of the degree of influence and control exercised by the individuals of a group, team or
alliance (Mumby, 2001; Whittle, Mueller, Gilchrist, & Lenney, 2016). Whereas politics
within the organizations is defined as self-serving behaviors that are used by the employees to
increase their personal agendas and the probability of attaining positive outcomes within the
organizations. The influence and power is used by individuals for serving their personal
interests without any regard for the effect imposed to the organization (Zumbrägel, 2021).
The study of power and politics is essential for the evaluation of the organizational behavior
of individuals. Employees exert their power and dominance for serving their personal
interests. While grouping within organization is a commonality, the usage of power and
politics for the control of employees has been addressed through several academic and
practical researchers for obtaining personal goals (Mumby, 2001). The political affiliations
and power exacerbated by employees is through influential team processes and organizational
leadership, and has been discussed in this light within the organizational behavior literature
(Whittle et al., 2016). These discourses can hinder the effectiveness of the teams and are
unethical and have the tendency to be destructive for the wellbeing and sustainability for the
organizations. Organizations and especially high functioning organizations within technical
industries like the oil and gas industry, are effective in their operations when the system flows
without the application of internal or external grievances. However, the existence if political
agendas hinder the prosperity of organizations (Hickey & Izama, 2017; Sardo, Parmiggiani,
& Hoholm, 2021).
The organizational and research literature on the Kuwait Oil Company doesn’t inform of
serious issues relating to the presence of power and politics. However, as is the case in most
organizations, lobbies and internal grouping is more than likely present. The presence of
these facets in any capacity are harmful to the productivity and performance of the company
and also to the performance of KPC. Although, the company operates under a traditional
structure, and most of the decisions and control lies with the top management. The power and
control are saturated in top management positions as a functional structure is existing in the
organization. The company doesn’t have a flexible structure and the command powers lie
with the head of department. However, reports and reviews of the organization suggest that
the company has a healthy work environment and for the most part the effect of politics and
power is negligible (Al-Mutairy et al., 2016).

Chapter 10: Communication


accurate strategies of communication are required not only ensures effective and efficient
customer care but also to reinforce the organizational culture within the company as well.
KOC has a bilateral flow of communication that has made employees as well as the
customers aware of the products and services of the company (Al Qattan, Alam, & Haque,
2013). Well-managed communication is considered to be a key factor for success of the
company and open communication is facilitated between the employees and upper
management to ensure efficiency and effectiveness of operations. Press releases and website
News is used to convey the new developments to customers and employees

Chapter 11: Leadership

According to KOC ideology, “we, as leaders, pay close attention to the human element and
are eager to provide job opportunities for Kuwaiti youth and to create an appropriate working
environment that encourages our employees to be more productive and innovative while
focusing on their training and development and providing them with a variety of incentives to
achieve professional and livelihood stability” (Silva, 2016).
Based on this statement, the leadership style at KOC can be defined as Democratic. The
democratic management style entails that the managers reach major decisions with the input
of the employees, however, they are responsible for making the final decision in the company
(Caillier, 2020). Leaders which use this type of leadership tend to allow their team members
to provide their decisions on most fronts and display an attitude of trust and reliance on their
employees, but they still take accurate level of interest and hold the final say in all the tasks.
They don't give too many detailed or strict instructions and but give guidance for tasks that
can allow employees to complete all tasks carefully and accurately (Caillier, 2020; Govender
& Mashamba, 2017). Moreover, the management takes responsibility where needed so that
the employees are not burdened by unwanted responsibilities (Allafchi, 2017; Hendriks &
Karsten, 2014).

Chapter 12: Foundations of Organization Structure

The basic organizational structure of KOC is Functional. In a functional organizational


structure, the employees are organized based on their specific skills and knowledge in various
sectors and the organization. As KOC separates its 4 functional domains, they have adopted a
separate set also ploy ease in each domain. KOC divides job alignment into groups according
to their nature, such as raw material collection and exploration, processing, drilling, trade,
exportation, goods, services, clients, and geographic distribution in the UAE. The line of
command is overseen by KOC's owner and managerial authorities. Overall organizational
structure is vertical, and the roles are divided from the board of directors To CEOs, two
employees it needs department ranging from higher management, middle management
employees, and labor force. KOC empowers its employees to make their own decisions, but
the firm's top managers always have the final say in the major decisions of the company
(Osund-Ireland, Richer, & Stenhouse, 2018).
Section 3: The Organization System
The organization system of Kuwait Oil Company (KOC) is very well developed. It can be
discussed according to the following sectors.

Chapter 13: Organizational Culture

Organizational culture can be defined as the social and psychological environment of an


organization that is formed based on the underlying beliefs, assumptions, values, and
interaction means used by the management (Gavric, Sormaz, & Ilic, 2016; Rich, Rich, &
Hair, 2018). There are four types of organizational cultures: Clan culture, Adhocracy culture,
hierarchy culture, and market culture, as sown in the figure below. An organization can adopt
a single type of culture or can use a mix of strategies and values from multiple cultures to
form a hybrid culture. At KOC, the organizational culture is strong and flows hierarchy
culture.
The leadership at KOC takes the form of a coordinator, monitor, and organizer in the tasks of
the organization. The market requirements of the Oil Industry are such that they require
leaders to be vigilant, innovative, and aware of the market conditions at all times to make
sure that all the employees of the organization work hard to achieve their personal as well
organizational goals.

Value drivers of the organizational culture are based on discipline and time-orientedness in
the organizational culture. The management employees are focused on increasing the market
share of KOC. By ensuring consistency of performance and product quality. The performance
appraisal of the employees is based on their goal achievement therefore they are vigilant and
try to complete all their tasks in time. Furthermore, the management is keen on the efficient
processes in the organization to overall increase profit generation.

The theory of effectiveness that drives organizational culture is mixed focus on efficiency
and control. The oil industry is marked with a high level of competitiveness therefore, the
control in the organizational culture of KOC is a driver of effectiveness and productivity.
Moreover, to remain relevant in this dynamic and demanding market the company needs to
focus on efficient production, management, and marketing.

Chapter 14: Human Resource Policies and Practices

Human Resource Management (HRM) is essential for all organizations as it is difficult to


function without it (Albrecht, Bakker, Gruman, Macey, & Saks, 2015). KOC uses several HR
practices and policies to maintain its employee behaviors and encourage a performance-
driven culture in the organization (Abidi, Zaim, Youssef, Habibniya, & Baran, 2017), which
allows it to make a place in the top 10 oil and gas companies in Kuwait (Zaim, 2016).

The company uses the followed policies and practices to facilitate the management of human
resources.

• Resource Allocation
o Resource allocation is carried out by KOC administration to assign and
manage assets to support KOC's strategic goals and to make the most optimal
use of the assets and the resources.
• HR Benefits Administration
o Benefits Administration is a process that is used to create, manage and
monitor the employee benefits program of an organization. Benefits
administration at KOC is used to manage facilities such as health insurance,
retirement-related accounts, paid leaves, and vacations, etc.
• Personal Data Management
o Personal data of each employee is acquired and saved so that it can be used by
the administration in case of assessment needs.
• Training Administration and Skill Management
o Management at KOC closely monitors the training and development of its
employees so that relevant skills can be developed.
• Performance Management
o The performance of employees is also monitored and HR at KOC works
actively to create an environment in which employees can perform to the best
of their abilities.
• Attendance/ Leave Management
o HR is responsible for the management of leaves and attendance data as it is
important to ensure that minimal required staff is present.

Chapter 15: Organizational Change and Stress Management

Organizations frequently go through changes as most of the markets are dynamic and require
a shift in the product or service offered by a company, process management, or employee
skill set to stay relevant (Mäkikangas, Mauno, Selenko, & Kinnunen, 2019; Stouten,
Rousseau, & De Cremer, 2018). These changes can lead to stress among the employees and
organizations must help their employees to manage change-related stress by providing
opportunities for training, realistic goal setting, establishing wellness programs, etc. (Faupel
& Süß, 2019). KOC is faced with many external environmental changes such as follows:
 Workforce trends
o As KOC is a petroleum-based oil company that divides its ventures into 4
domains, it is faced with a need for diverse skill sets as technology is
improved or caned in each of the 4 domains. Therefore, the company needs to
either keep training its employee set to improve and develop new skills or
undergo frequent hiring of relevantly skilled employees
 Labor force trends
o In Kuwait, there is a mix of the international and national labor force. Most of
the laborers are international and are hired from countries like India, Pakistan,
etc. (Chorna, Al Yaqoobi, & Al Yousufi, 2019; Shayah & Sun, 2019). These
laborers usually are low paid but may increase their payment demands as per
market trends and inflation. Moreover, they are less inclined to adopt to cane
in the workplace.
 Technological changes
o The oil industry is evolving frequently and develops new equipment for
drilling and extraction frequently. Therefore, the employees are expected to
adapt to new skills that may be needed to cope with technological
advancements.

KOC uses several strategies for change-related stress management for its employees. Some of
these are as follows.
• Training and Development
o The company offers frequent training and development programs to its
employees so that they can learn new skills and can improve their prior skill
set as well. This allows the employees to avoid stress in case of change in the
organization in terms of processes.
• Open Communication
o KOC environment also facilitates change and stress management by keeping
open communication between employees and upper management.
• Flexible Work Hours and Leaves
o Employees are provided flexible work hour options to adjust themselves
according to their ease.
o Moreover, employees are given sick leaves, holidays, paid maternity leaves,
etc. so that they can perform better

Chapter 16: Conflict and Negotiation

Conflict negotiation can be defined as a process that is used for the resolution of a dispute or
a conflict that may arise between two parties by providing equal opportunity to bot the parties
to be heard and fulfil the needs and interests of both sides (Van Kleef & Côté, 2018). A
successful conflict negotiation leads to making both parties feel satisfied by the outcomes.
Employees at KOC are facilitated for the resolution of conflicts by the provision of support
from management. The management is trained to exercise conflict resolution skills in case of
a conflict arises. The following techniques are used to resolve issues in KOC:
 The managers facilitate dialogue between the conflicting parties so that both parties
can express their issues and concerns and reach a common ground. Meditation
techniques are used by leaders and employees to help them find a common solution.
 Creative problem-solving skills are used to resolve the problems between the
employees so that they can feel valued and important
 Interviews are conducted and supervisors listen actively to any problems faced by the
team members at the workplace so that the issues can be resolved and avoided in
future
 Managers encourage their team members to be assertive. Assertiveness is a healthy
means of communication as it allows one to speak up for themselves but in a way that
is honest and respectful to others
 Managers are always empathetic towards their employees but also hold them
accountable for any wrongdoing.
Conclusion
At the end of this report, a SWOT analysis is carried out for KOC. SWOT analysis allows a
company to stand out in its marketplace, indicates means to grow as a business, and
highlights the vulnerabilities (Teoli, Sanvictores, & An, 2019) as a company that understands
its strengths, weaknesses, opportunities, and threats have better control of the market in
comparison to its competitors.
The strengths of KOC lie in the fact that it is a subsidiary of Kuwait Petroleum Company, a
multinational corporation that runs has a stronghold on the global oil market. This allows
KOC to have a strong position against its competitors in the international as well as domestic
markets and maintain a large market share (Dess, Lumpkin, Eisner, & McNamara, 2014).
From an organizational behavior or cultural point of view, the company stresses on the
training of its employees. Moreover, the company offers lucrative salary and bonus packages
so that employees are compensated properly. Moreover, in 2019, the CEO of KOC launched
a fast-tracked training program in collaboration with Harvard university. All of these facets
show that the company is focused towards employee development.
Weaknesses that reduce the effectiveness of KOCs policies include the low level of diversity
that it offers in terms of its products. The company has low diversity in terms of female
inclusion. Also, as part of a governmental organization, the company prefers its own residents
before hiring international talent. One other weakness presented to the industriual world is the
fact that most of the employees are retiuring and new incumbents are being hired. This
presents a major challenge not only for KOC but for other organizations as well.
Furthermore, it has small business units and a low level of investment in R&D exposing the
company to the weakness in the competitive market structure.
As for threats in the market, the rising demands for cleaner energy resources and biofuels
instead of petroleum products are a threat to the business of KOC. Also, the employment
laws have also been changing in Kuwait which could lead to some challenges for the Kuwaiti
organizations. Moreover, as the organization operates in the oil and drilling industry, the
company is at risk of the safety and wellbeing of employees.
Moreover, there is a rise in the costs of raw materials, labor costs, and interest rates that have
led to increased costs for the company. Furthermore, the regulations against the trade of oil
have also intensified.
The following table summarizes the SWOT analysis for KOC.
Table 1: SWOT Analysis Summary

Strengths Weaknesses
 It is state-owned and has unlimited access • A lack of diversity in terms of focused
to funding and incentives consumers and offered products
• Lack of workplace diversity
 Experienced Business Units
(Attributes of the system)

• Preference given to local talent


 Operations divided into Four Segments • Small Business Units
Internal origin

 Domestic Markets • Low level of investment in R&D


• Aged employees retiring and new
 The company has attractive salary and
incumbents being hired, presenting
retention packages
challenges for the management staff to
 Collaborates with Harvard university for increase training effectiveness.
the development of training programs
 Focuses on the career planning of its
employees.

Opportunities Threats
• New services and products can be • Increased labor cost
(attributes of the
External origin

offered • Increased competition in the market


environment)

• The company can developing more • Changing employment laws


accelerated leadership and training • Risk of employees being harmed is high
programs for its employees in coalition
with Harvard and other univerisities. • Lack of focus on employee safety
• Improved focus on employee safety
and wellbeing.
References

Abidi, O., Zaim, H., Youssef, D., Habibniya, H., & Baran, A. (2017). Diversity management
and its impact on HRM Practices: Evidence from Kuwaiti companies. Eurasian
Journal of Business and Economics, 10(20), 71-88.
Al-Ghnemi, M., Al-Bahar, M., Al-Najdi, A., Kumar, A., Bora, A., Chandan, T., . . .
AlOmran, A. (2019). A New Tool for Long-Term Monitoring and Management of
Kuwait Oil Company KOC Reservoirs through Reservoir Management Performance
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