Essays on Improving Organizational Performance Case Study

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The paper ' Improving Organizational Performance' is a wonderful example of a Business Case Study. Rabigh Refining and Petrochemical Company were founded as a partnership between Saudi Aramco and Sumitomo Chemical Company in the year 2005, with the objective of building integrated oil refining and petrochemical operations through construction of a new petrochemical complex and upgrading Saudi Aramco’ s oil refinery. The company which operates in the Kingdom of Saudi Arabia has been undergoing a period of transformation in terms of ownership, this is bound to impact on the human resource capacity of the company, analysis on the firm suggests that: - 1.

The change of ownership structure through the Sale of 219,000,000 shares representing 25% of Rabigh Refining and Petrochemical Company through an Initial Public Offering impacted on the organizational structure and the workforce of the company, in the course of realignment there is need to appreciate the introduction of new departments while appreciating human knowledge as an important asset. 2. The company currently undertakes expansion programs which include internationalization and venturing into other areas such as the current front-end engineering studies in Japan, this shall affect the employee setup. In consideration of the above facts, therefore, there is a need to retain and maintain the knowledge that the company has over the years acquired through experience or otherwise.

Since knowledge management is related to the company’ s profitability, failure to effectively manage the company’ s knowledge implies that the company cannot maximize its revenue potential, effectively control expenses, and shall also lose the experiences its workforce has acquired over the years. There is, therefore, a need to establish a knowledge management department which to primarily deals with achieving improved organizational performance through knowledge execution.

For the knowledge management department to effectively operate, the company shall adopt diverse recommendations, based on the maximum utilization of the tacit and explicit knowledge in the organization. The plan offers an appraisal of the importance of knowledge management in achieving the strategic objectives of the organization. The knowledge management plan recommends several approaches including adopting Knowledge Transfer Strategy, Knowledge Strategy as Business Strategy, Knowledge Creation Strategy, and Customer-Focused Knowledge Strategy, these recommendations shall be administered through the establishment of the knowledge management department.

The establishment of the knowledge management department and the accompanying strategies shall subscribe to a developed action plan. To establish the department and effectively implement the recommended strategies, the company shall spend an estimated 18 million riyals; annual maintenance of the department is expected to cost 3 million riyals. To create the department and execute the knowledge management plan, it is envisioned that the company shall select persons with expertise from the already existing departments who shall be seconded to the knowledge management department; external expertise shall be sought in case of disparity between existing knowledge and the requisite knowledge.

The plan shall be implemented within six months after which the department shall be evaluated on a yearly basis. In evaluating the success of the plan, basic business constructs shall be used as the basis. These include reducing operating costs, enhancing customer satisfaction, and increasing the company’ s revenue.


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