The paper identifies numerous critical segment of the employment arena in the Kuwait Petroleum Corporation (KPC). It attempts to examine the recruitment process at Kuwait Petroleum Corporation (KPC), creates an overview of KPC including oil sector history in Kuwait, and explain Business Process Improvement (BPI) concept along with the steps for a successful business process improvement plan. Subsequently, model to redesign the process will follow a detailed analysis of the recruitment process in Kuwait Petroleum Corporation. The paper will further discuss the advantages of adopting the redesign process as well as the difficulties it will face during the planning and implementation of the redesign. Finally, the paper will present some recommendations after the conclusion.
History of KPC
According to Tétreault (1995) in the book “The Kuwait Petroleum Corporation and the Economics of the New World Order”, in around 1920s oil had been discovered in significant sections of the countries surrounding and neighboring Kuwait. Kuwait at the time was witnessing several strange black patches in the desert hoping it meant that the black gold was in waiting for discovery. Expectations were very high and by 1938, attention turned to Burgan as oil was discovered in massive quantities in Kuwait.
In the early years of oil discovery, Kuwait’s hydrocarbon resources were controlled by Kuwait Oil Company (KOC), which was a foreign-owned company at the time. But after 1972, Kuwait acquired 25 percent of KOC and in 1983 this percentage grew to be 51 percent, which also was rejected by the Kuwaiti parliament as they thought that Kuwait’s oil resources were extracted too rapidly (Tétreault, 1995, 34). As a result, KOC was instructed to limit its production and exploitation of the strategic resource, oil. That only drove the British Petroleum (BP) and Gulf Oil to extract as much as they could before full nationalization f the corporation was authorized.
In 1974, Kuwait had already acquired 60 percent of KOC, and therefore the nationalization process was set to take place gradually so it would not affect the price of oil. In December 1975, the Kuwait government announced full nationalization of Kuwait Oil Company (KOC) by acquiring the remaining 40 percent (Tétreault, 1995, 36). By 1979, the government had already taken over the oil business in Kuwait by acquiring several other oil companies: KNPC, PIC, Aminoil, Mina Abdullah Refinery, Kuwait Wafra Oil Company, and KOTC (Tétreault, 1995, 36).
Following the government’s major acquisitions of the leading oil-producing and extracting corporation, it was only reasonable to join their forces in order to be more coordinated and efficient. Therefore in 1980, Kuwait Petroleum Corporation (KPC) was established to serve as an umbrella to integrate the oil industry in Kuwait. Currently, Kuwait Petroleum Corporation (KPC) is Kuwait’s national oil company that is responsible for Kuwait’s hydrocarbon interests throughout the world. The company’s products are sold internationally through it’s subsidiary’s name (Q8). And as part of the global energy industry, Kuwait Petroleum Corporation provides oil and gas needs by exploring, producing, refining, transporting, and marketing these natural resources locally and globally (Tétreault, 1995, 37). KPC also serves as a mother company for multiple oil companies in Kuwait which include KOC, KNPC, KOTC, and PIC purposely to keep them under state control and other subsidiaries such as KAFCO, KUFPEC, KPI-Q8, SFIC, and KGOC. Although it has many subsidiaries under its wings, KPC managed to keep each company focused on their own activities emphasizing on their areas of strength and took the responsibility of marketing Kuwait’s oil internationally (Tétreault, 1995, 54).
However, throughout the years, Kuwait Petroleum Corporation continues to grow and acquire other companies following its mission and vision of being the leading corporation in managing hydrocarbon related activities and maximizing shareholder’s value. KPC’s vision focuses on improving and developing national manpower, by encouraging continuous learning in all areas related to KPC’s business. This requires the company to have a highly intelligent and developed recruitment process in order to have the best staff to train and improve to be the best in their areas of expertise.
Business Process Improvement (BPI)
Business Process Improvement (BPI) describes a set of tools that identify, analyze, and improve business processes in order to optimize performance and improve the company’s effectiveness and efficiency. BPI is a process designed to reduce cost and cycle time and to improve quality. This process is usually paired with the enhancement of information technology (Harvard Business Press, 2010, 16). Why improve a business process? In a developed organization where innovation and constant improvements are key success factors, it is important to always revise and monitor major processes. If it is observed that a certain process is insufficient or falls below the recommended efficiency level, then the organization must consider redesigning this process in a way that saves time and at the same time improve quality.
Organizations can benefit from business process improvement model in many ways, however, it requires full commitment, as it can be a time-consuming and complex process but highly rewarding at the end. If the process was done correctly it will definitely save time and money by simplifying complex processes and eliminating unnecessary procedures within the process. It also helps to anticipate, manage, and respond to changes in the market more effectively, which will improve efficiency. BPI helps to better serve customers by devising strategies primarily to improve skills and expertise, which will lead to exploiting new business opportunities (Harvard Business Press, 2010, 34). And to have the best results with BPI experts suggest organizations follow these six steps:
- Identify the Process and Plan the Change
- Analyze the Process
- Acquire Resources
- Continually Improve
This paper will only explain these stages of business process improvement.
1- Identify the Process and Plan the Change
In this stage, managers are responsible to identify the process in need of change. This is done by first detecting key business processes (Harvard Business Press, 2010, 25-34). Then the manager must spot signs of trouble and inefficiency according to customers complaints, time, and how complicated the process is. In the case of KPC it was noticed that there are three main processes to consider and these are internal recruitment process, applying online process, and the process of choosing the individuals. So in order to choose the process that the organization will benefit more from redesigning, we decided to use the process selection matrix. This is done by rating each process according to certain criteria such as cost-saving potential, complaints, ease to change, or the opportunity to change is high or low. The rating should be on a scale from 1-5 five being the highest.
This was done by the managers in different departments and was found that most of them think that it is critical to change the internal recruitment process. Managers think that this particular process if improved will have a great impact in terms of time management and cost.
2- Analyze the Existing Business Process
After planning the project and choosing the team responsible for redesigning the process, several steps must take place as part of phase 2. The first thing that has to be done is mapping the process and translates it into a set of logical, interdependent activities that leads to the desired outcome. The process map is the key to determine the problem (Harvard Business Press, 2010, 12-20). The next step is to examine the process map. The team observes the process map and evaluates every step to spot the part where it needs to be modified to get the best results. The purpose of analyzing the process map is to categorize the activities and rearrange them to the most efficient way. After that, a team should interview stakeholders in order to take their comments on the project they are trying to do. And at the end of phase 2, we need to have a close estimate of where the company is in terms of other organizations.
Now in step one after we chose the process we’re going to redesign, we did a flowchart of the process as follow:
The goal of the process map is to find the weak points within the process that need to be changed.
From the flowchart, the analysis commences from the human resource manager and progress to the other subsequent departments. The messenger connects the various departments of KPC and thus communication of the various section of the company. For the KPC the human resource create an optimum ground for training of new individual in who would manage the newly designed offices for the BPI.according to (Grover & Kettinger, 1995), under the HR, recruitment, selection and shortlisting of the employees is emphatically assumable. While establishing and expanding the boundary of the business empire proper regards to the availing of the well-outlined pension models for the future of the employees and the optimism in the business firm environs. The drastic communication of the vital emergence and trends is intensively considerable at the docket of HR. For the official communication of people in the offices, for instance, from the HR office under normal instances, the presentation of the mails from the HR office is highly important. In the absence of the office messenger shows that the mails will wait for some time on the waiting queue.
In the reception of the mail various department coordinate to enable the various section of the company department to achieve outstanding future. The human resources management team suggests to the management team how to strategically manage people as business resources. This includes managing recruiting and hiring employees, coordinating employee benefits and suggesting employee training and development strategies. In this way, HR professionals are consultants, not workers in an isolated business function; they advise managers on many issues related to employees and how they help the organization achieve its goals. The KPC HR execute significant collaboration of the various employees and ensuring that each individual actualizes what he is best in doing. consistent with (Grover & Kettinger, 1995), rewards of hardworking and self oriented worker are likely achieved critical motivation and nurturing of the skills of all employees in the diverse sector. There is the importance of assigning substantial roles to the specific expert with consideration to their capability.
In BPI the manger and the HR shall together initiate programs that will enable the expansion and reservation of the well-oriented and industrious workers so as to aid in the timely achievement of the set targets. With regards to the BPI, the HR ought to devise the new formats of handling new changes in the human resource sector as BPI shall cause restructure of offices, elimination of some sections of jobs, retrenchment of some people and acquisition of new talents and skills in fostering a decisive outcome in the company. in the new modeled format in the BPI the HR must enhance his capability of organizing and blending complex roles in the achieving fine stage of the elevation of the commitment of the employees to their respective allocated centers. This must initiate from the allocations of professionals based on the qualifications and ensuring that the employee after the employment, he adheres to what he was allocated to. Vividly defined rules must be placed indefinite company rules to tame those workers who may find it necessary to go ultra vires.
Confirmable to (Grover & Kettinger, 1995), the analysis of the BPI with regards to the contribution of the manager in availing guidance and setting pace for the rest of the company officers to adapt to includes several instances of involvement. The managing director must ensure re-invention of himself and to stress to the worker of the importance of working handy to the achievement of the set targets of the company. Since he is the most senior officer of KPC his roles and actions must provide clear guidelines on the status of the company visions. The managing director assumes the role of undertaking the timely refreshment of the ambitions of the company and enabling a clear cut of the main. He would always present to his superior the stages of accomplishment of the set targets.
At every stage the BPI dictates what every individual undertakes, and therefore one must ensure an outstanding process in attempts to defend the visions of the company; for instance, the manager, will formulate additional policies that guide on any impromptu matters on the BPI before the official meeting of the member of the company. The analysis of the profitability of the new business idea is hinged on the determination of the director to assess the books of accounting presented to him by the accounting officers. While there is a BPI and redesign options available, the director must always generate new strategy to facilitate vehement operation of the company initiatives to the ultimate end and acknowledge that he bears the sole responsibility of seeing the success of the company, in case of failure in a segment of the company, then he is the one to blame. The allocation of vehement financial flow throughout the execution of the redesign process is laudable and much concern is placed on the manager to see its effectiveness and clear provision. KPC management is mandated with stressing the comprehension of the operational objectives and desired standards in the performance and owning of the outcomes of the reviewed plan.
Out of the redesign process, some of these critical issues must emerge out distinctively by the managerial team of the KPC so as to pave way for the stringent steps associated with the redesign activities (Harvard Business Press, 2010, 25). These steps include (Harvard Business Press, 2010, 26):
- Envisaging a good process
- Testing and assessment of the KPC teams ideas
- Considering and analysis of the potential threats of the newly redesign proposal
- Documentation and recording of the proposed redesign format
- Collection of the critical feedbacks from various stakeholders and vividly refocusing the structure of the new design
If the execution of the redesign process runs out well then, generation of substantial documents is very vital in the eventual culmination of the outstanding business outlay that is successfully presentable for approval by the management and other chief stakeholders. Taking with other members of the BPI team enables visualization of the business model of the anticipated business process conforms and it must address the pivotal obstacles countering the business opportunity (Harvard Business Press, 2010, 43). Moreover, the exposure of the main challenges experienced in KPC should be intimated on the project goals as collected from the interview with stakeholders and resultant outcomes from various benchmarking in the companies that practice in the similar business industry. The redesign process ought to address satisfactorily the essence of customer satisfaction; regards on the quality of products; effective outline, for instance the amount of money spent on the initial quarter of the financial year and even cycle time duration. According to Grover & Kettinger (1995, 76) in Harvard Business Press, this is a well-outlined step that aids in the achievement of essential business outline process.
Consistent with these steps include creation and writing of stories that intimates on the ideal and suitable business model, facilitation of loud reading of the story, documentation of the ideological creations, and discussion of the inherent ideas. A follow up in assessment of the group’s thoughtful contribution is highly regarded and success outcome is only testable through analysis of the effectual role-playing, practice, and actualization of the computer simulation. Furthermore, the analysis of the satisfactory redesign is achievable through the analysis of the organization aspects like structure, employee skills, and numbers; customer base desired and the system applicable. In ensuring the success of the redesign, refining of the redesign is laudable and presentation of flowchart and the essential documents that aided in the design of the key features to the stakeholders is immensely considerable.
The application of the computer simulation in the redesign process avails indispensable project integration mechanism for the handy and effortless management and handling of the procession works of the BPI. The vivid exposure of the variables indicates the undeniable facilitation that the computer simulation would enhance in the redesign works. The clear measure of the human resource input , cost-effectiveness, time frame undertaken and other factors of great importance to the BPI are exclusively measurable and considerable in lengthy. The simulation also avails intrinsic human to computer interface that aids in the eventual sail to the end of the BPI. The presence of magic formulas in most of the simulation reduces the much need for the manual calculation commons to traditional model-oriented business management options exploited in the past.
The familiarization process with the simulations is much easy and thus facilitating their irresistible application in the modal arena or field. The comprehensive application of the software for the benefit of the entire teams is effortless and equally cheap. The simulation would generate profits graphs anticipated in most of the business environs exhibiting the financial flow of the business graphically so that the stakeholders are able to determine the success end of the BPI. Input of variable A, B, C, and D creates imaginable grounds for the expansive widening of the scope applicable to the smooth finish and execution of the BPI. The redesign work shall gain from the interface created by the simulation software that assists in repeated addition of variables and subsequently measuring of the output of the respective variable with concerns on the independent and dependant variable. It further creates a room for amplification of output and handlings of errors inherent in human manual generated graphics. Other factors generation or printing of the copies to various department of KPC is easily achievable thus propelling the redesign works to indeterminable heights. Notably, simulation emerges as a distinct and excellent option for the synthesis of BPI and hastens that rate of communication of thoughts and idea to the rest of the members of the KPC executive. Handling and management of the company resources comes under critical scrutiny, thus its every stakeholders roles to shield the company against any observable threats; for instance, those prompted by lack of familiarity to the specific case of study. The workers should be given supplementary incentives to recognize their endeavor and to keep them working hard on ensuring the completion of the desires of the company within the specified duration. The managers are left with the critical roles of coordinating and linking the different parts of the company to achieve common goals (Grover & Kettinger, 1995). The absence of nepotism amongst the employees will see the highest performance of each individual in claiming fighting for the success of the outlined programs. In the redesign of BPI, an elaborate model of organizational should be read as it would aid in forwarding of critical responsibilities to every individual concerned in a particular case.
In case of unexpected scenario then the roles accountability is linkable with an individual and thus punitive measures are smartly considerable in that instance. It will also create a foundation of orderliness in to effect significant motion towards accomplishing a target. Conversely, the success of this model is correspondent to the planning, elaboration of scope, inherent functions, clear and well communicated working of the various groups desired and strict adherence to the outlined rules as regards the BPI. The essence of distribution of the information is important to the extent that it should be undertaken from top to the bottom and along the horizontal planes in the organizational chart. This is in attempts to execute common goals by every individual propulsion effort. Presence of a committed and engaged community of workers shall see the working tirelessly to overcome the emergent challenges
In case that the design was fine does, then people would find ease in its execution as provides clear and focused outline that facilitates the various parts of the company to coordinate and propel the company desired in unison. Consistent with Improving Business Processes, elaborately design picture provides for any expected danger and the manager can really note any obstacle before he or she reaches the exact date.
The redesign of the BPI shall infer some significant and structural changes in organizational chart, and therefore the redesign of the chart shall see the success of the criteria employed in the management of the operations (Grover & Kettinger, 1995). Using simulations proper definite job vacancies shall emerge and analysis of persons with undisputed skills and capability will man the sector regenerated. In other cases, there is possible expansion of an office to accommodate additional subordinate staffs and the references shall be made to the organization charts for final ultimate decision-making process. The emergent tasks that must be accomplished are grouped with reference to every department until each the chart vertically reaches the managing director of KPC who is allocated the final answerability to the various stakeholders of the firm (Grover & Kettinger, 1995). For instance any redesigned task that abuts on monetary issues like collected money, paying of the bills, responsibility for the books of accounts are simply tied to a department like the financial or even accounting department.
Typically, employees work at their best in actual realization of who to report to and determination of is responsible for certain issues. The hierarchies are well elaborated in a comprehensive organizational structure. The redesign will not remodel the earlier established organization chart but will only create additional slots, in terms of offices, and disband any office that may be deemed inefficient according to the dreams and future expectations of the company. According to Tétreault (1995, 76), the reorganization of the human resource segment to align their mind in the most gainful model to the company’s visions and the execution of the plan becomes a hurdle as comparison to the design of the same; for instance, placement of the right people with admirable skills in certain specific and right job is very complex and arduous work.
To create sanity rate in the KPC offices, new intranet connectively shall be introduced to actualize fine-tuned modes of communication inside the offices. This will see the reduction of the cost incurred in the conveyance of the old type transport model or disposal of obsolete telephones. Intranet facilitates the acquisition of a paperless environment which is highly recommendable in this modern society in which environmental conservation has been an issue. Generally, installation of the intranet shall have the following merits to the company: substantial reduction of costs, massive saves on time spent and elevation of collaboration amongst the member of the company. a platform where the company will easily publish its documents online on WebPages will enhance the cutting on expenditure by instrumental amount.
The reduction of costs shall notable in a reduction in transport, printing, duplication of papers, time-saving and many other aids to the company. The elevation in terms of collaboration of company employees will foreseeable under new redesign of the company operations. The intranet connectivity and various internet applications will see the coordination of the various segments thus scoop significant and strategic importance to the variant sector of the firm. Through internal broadcasts, knowledge sharing to virtual online working could be easily achievable under the new intranet formats (Grover & Kettinger, 1995).
In conclusion, the redesign process shall see the shift on human resources management practice, ICT structure of the company, the redesign of the organizational chart, creation of well modeled role of the existing work force and reorganization of the entire managerial sphere. Essentially, the KPC fraternity shall need some time to adapt t the expected variations in the management of the function s of the company. Phase shift could also recognizable as a sector consider during the upgrade or redesign.
Grover, V., & Kettinger, W. J. (1995). Business Process Change: Concepts, Methods, and Technologies. Harrisburg, USA, Idea Group Pub.
Harvard Business Press, (2010), Improving Business Processes.Harvard Business School Press,1422172686, 9781422172681.Business & Economics Business Communication
Tétreault, M. A. (1995). The Kuwait Petroleum Corporation and the Economics of the New World Order. Westport, Conn, Quorum Books.
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