Contents

• Introduction 3
• Part A 5
• About Occidental Petroleum Corporation 5
• Statement of Issue 5
• Analysis of Factors that contribute to the Issue 6
• Poor Structure 8
• Poor Culture 10
• Poor Human Resource Policies and Management 11
• Recommendations for an Integrated Solution to the Issue 12
• Part B 17
• Literature Review of Management Frameworks used to analyze the Issues 17
• McKinsey’s 7S Model 20
• Cultural Web Model 22
• McClelland theory of Motivation 23
• Literature Review of Management Frameworks used to provide integrated solution to the Issue 26
• Structural contingency theory 26
• Herzberg’s two-factor theory 28
• Conclusion 30
• Part C 32
• Reflection 32
• References 38

Description

Organizational success and failure depends on its competencies to respond to the changing environment. The organizational processes are highly influenced by external and internal environmental factors, which can force the organizations to bring changes in some of the internal components, which if not considered can affect the organizational performance. The organizations constantly need to analyze the external environmental factors such as level of competition, consumer purchasing behavior, social and economic conditions based on which it should re-invent its strategies and align them to the market needs. The organization at times can have ineffective internal components, which might not be visible for a longer period but can lead to serious problems in the organization, which can further lead to business and financial loss. The organizations also have to monitor the internal efficiencies to ensure the organization has been able to deliver quality products and services and meet the customer’s needs as well as the needs of the key stakeholders I the company, which can promise long-term growth. Occidental Petroleum is one of the most successful company in the oil and gas sector and has led to significant growth in the Oman market due to its competencies and resources. But the inefficiency of the employee is rising since organization is not responding to the changing needs of the employees, which includes more autonomy and employee engagement. It still continues to use hierarchical structure, which has led to normative culture and led to establishment and practices for human resource, which are causing increased dissatisfaction among employees resulting in high turnover of the employees. The organization by adopting functional structure would be able to bring change in culture and human resource practices, which will enable the organization to develop intrinsic motivation among the employees helping it to retain the talent and enhance their efficiency.