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Adnoc Distribution First Company Brief Business Essay

Paper Type: Free Essay Subject: Business
Wordcount: 4880 words Published: 1st Jan 2015

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We are trying in this report is for to evaluating the organization structure of Information Technology Department of ADNOC Distribution Company at the UAE market. Our study is trying to help in identifying such activities environment within UAE.  In this report, we performed an analytic review within the organization structure patterns for ADNOC Distribution Company.  This includes the cultural as well as the political environment for ADNOC Distribution Company.

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First – Company Brief:

In view of the fact that the exploring of crude oil in the UAE in excess of 50 years in the past, the UAE has moved out all the way through a considerate conversion from the breadline region of little desert principalities to a recent state by means of a high standard of living. UAE is a netting fuel exporter. On the other hand, the chief exports are oil along with natural gas. In 2009, the U.A.E. sent abroad an estimated 2.9 million barrels of crude oil per day together with 237 bcf of gas. Conversely, the UAE restrains confirmed crude oil reserves of 97.8 billion barrels, or else quite below 10% of the worldwide entirety. Moreover, Abu Dhabi grasps 94% of this quantity, or even in relation to 92.2 billion barrels. Furthermore, Dubai encloses an anticipated 4.0 billion barrels, afterward Sharjah along with Ras al-Khaimah, in the midst of 1.5 billion as well as 100 million barrels of oil, correspondingly.

ADNOC Distribution Company is an incorporated fuel company. It is founded in 1973; Adnoc Distribution is marketing along with distributing oil-refined products as well as services inside the United Arab Emirates in addition to worldwide. As a character of the principal in addition to primarily groundbreaking government-owned fuel corporation in the Arab Gulf region, Adnoc Distribution is well known besides appreciated for the extraordinary value over and above dependability of its products as well as services. ADNOC Distribution Company is presenting a broad variety of fuel together with natural gas products as well as services; Adnoc Distribution is dedicated to supplying clients in addition to associates in the midst of confirmed fuel solutions.

Adnoc Distribution Company is marketing all kind of lubrication products as well as fuel products locally, in the UAE and abroad. Its Fuel products are including gasoline, Diesel and aircraft gasoline Moreover; Adnoc Distribution promotes also (LPG) which is spread known as cook gas. On the other hand, Adnoc Distribution is also having a contract with Abu Dhabi Police to provide vehicles inspections services. Adnoc Distribution has representative offices in quite a lot of countries. Adnoc Distribution promotes more than 40,000 tons/year of its lubrication products. It sells its lubrication products primarily in the Middle East countries including the GCC countries, besides in South-East Asian countries as well as African countries.

Although Adnoc Distribution is not facing any direct competitors with Abu Dhabi territory in fuel promotion, but it is facing more competitors at northern Emirates, where it has more gas stations, which are spread, among these emirates such like Emirates Petroleum Company. Moreover Adnoc Distribution is facing competition at other diversion products which is includes lubrications products. In this category, the UAE market is so open and several international brands we can find the here such like BP, TOTAL, ESSO, etc.

Adnoc Distribution has always incorporated the Falcon in its emblem. This magnificent animal represents innovation, confidence, organization structure, reliability, pride, alertness, responsiveness, as well as dynamism. However, the Falcon reflects moreover observes the intellect of arrogance in the UAE’s rich inheritance along with sturdy local roots, at the same time as looking to the prospect through bravery in addition to a clear vision. The importance and head-held-high aspect of the Adnoc falcon logo, combined with intense, colorful geometry, captures the spirit of control and guidance that Adnoc is well known, and admired for.

ADNOC Distribution Company is committed to practicing corporate social responsibility. In 2005, Adnoc Distribution marks its 32nd anniversary in business and participation in various social, economic and environmental aspects of the UAE, as an outstanding corporate citizen.

Adnoc Distribution that the socially responsible actions and deeds utilizing continually strive has a positive impact on the lives, conditions of nationals, and expatriates throughout such communities and around the world. Furthermore, ADNOC Distribution Company captures leadership in the offerings that it has been made towards the social as well as environmental circumstances in the UAE and worldwide. As Adnoc Distribution offers most of its fuel products, which can be classified as friendly environment products, such like Green Diesel and Green Gasoline. Moreover, most of these products are expelling the minimum percentage of Carbone Dioxide into our environment. On the other hand, it elaborates that with such actions along with deeds, Adnoc Distribution strives to get together the expectations of such clients along with associates, moreover to carry out business in an approach, which acknowledges Adnoc Distribution’s broader responsibilities as a global citizen. While such dominance is managing moreover distributing natural possessions as one of the principal, oil companies in the globe.

Adnoc Distribution Company which is having more than 5000 employees, ( [1] ) it expects all employees to handle the highest standards of legal and ethical conduct. ADNOC Distribution Ethical issues established an adequate degree of actual action, attitudes, and approach used in conducting each daily activity, designed to protect against any offensiveness or appearance of corruption by an organization’s employee.

However, we will concentrate more at the Information Technology department within Adnoc Distribution Company. Since this department is becoming more and more essential to the business life of any organizational especially with a company such like Adnoc Distribution Company.

Second – Organization Structure:

Since Information Technology Department at the ADNOC Distribution Company, is implementing the simple structure, as the nature of the site is requiring such basic structure, given that it being aware, that the nature of the organizational structure is an essential part of the business planning system. The organizational structures developed declare the specified number of materials and power being offered; the degree of funding needed to satisfy the technological service objectives of the organization.

It is widely known that choosing the right organizational structure is imperative for a Business to run effectively. As ADNOC Distribution Company grows, some predictable things happen to the work done in it. Strong organization structure organizes work around people they trust, rather than grouping work so that people may display it effectively. The results of this approach may be unnecessary positions, too many ADNOC Distribution Company levels and irrational assignment of work. There is an affinity for people to perform work, they feel like to doing, but they may be insignificant to the goals of their organization. However, in our case, we will concentrate more at the Information Technology Department at the ADNOC Distribution Company.

The organizational Structure of Information Technology Department at the ADNOC Distribution Company is a very simple structure. Furthermore, advantages of this simple structure include the importance of fast growth, moreover, improved facilitates management growth along with training, besides utilization of decentralized decision-making, as well enhancements towards profit also erosion control and complete responsibility. This simple organization structure approach is straighter forward than other organizational structures, but ADNOC Distribution Company has its rapid growth along with its increasing profits justify the added expense. Furthermore, advantages of the simple structure are the decentralization of the internal decision-making. Furthermore, this is extensively used in such cultural of ADNOC Distribution Company. The decentralization fits well with the firms rapid growth corporate culture, for the reason that it places the decision-making procedure closer to the branches that require quick decisions tailored to their geographic market conditions. Moreover, at Information Technology Department at the ADNOC Distribution Company, they are enjoying their independence by taking several decisions in regards of their pursuing their job performance and keeping their service alive 24 hours.

ADNOC Distribution Company Management is covered so there are together vertical as well as horizontal linkages in the midst of the firm’s management. This is besides, the underneath of the structure contain of units managers governed by one unit manager responsible for delegating duties and senior managements directives. The unit manager reports to the head-office through connections, this is to every the firms serviceable division. Moreover, the serviceable division s encompasses processing, Finance, Human resources, Administration, Commercial, Information Technology and operations along with several additional core serviceable divisions.

On the other hand, the serviceable divisions of Information Technology Department at the ADNOC Distribution Company are located on the organizational structure consequently that they are easy to get to through every of the units through their unit head. In view of the fact, that every of the operations division share horizontal connections facilitating data allocation all the way through accomplishment of advanced computer network systems.

On the other hand, an organization structure for ADNOC Distribution Company divides Company’s work into well-defined jobs and assigns these jobs to individuals and division s. Formal ties between people and division s match the jobs by setting lines of authority and communication.

1) Bureaucratic:

ADNOC Distribution Company adopted the management kind of simple structure. As we are all aware that in a simple structure, people use more effectively for the reason that of their training as well as collaborations, this is besides that, ADNOC Distribution Company is having some of bureaucratic rules along with management control into some other department. This is fully depending into the nature of its job performance and it consequence to the ADNOC Distribution Company as a whole company. On the other hand, we can obtain more in this subject that the simple structure is aimed at eliminating this “running on the situation” action or “corporate churning” as a result of organizing around ‘processes’ in bias toward high skills. ( [2] ) On the other hand, and within some departments at ADNOC Distribution Company, they have a negative impression of bureaucratic structures in these contexts, which they regard as inhibiting the invention in addition to implementation of new ideas besides encouraging conservative thinking. On the other words, the highly centralized administration bears many of the hallmarks of the traditional bureaucracy. On the other point of view, indeed the Post-modern organizations are as a result different from the classic modern bureaucracy where people were subject to reasonably set rules of order as well as hierarchical control. ( [3] )

In view of the fact, whereas such like, policies can severely restrict creativity. Since it is known widely especially in large bureaucratic organizations. Another point of view, we can prove that large bureaucratic organizations are known as boring, bland places. A lot of government authorities as well as large organizations such like oil companies suffer from this. Conversely, it is also believed by many, policies and red tape destroy the original soul. They promise workers into effective ways of working, offering little opportunity to be restored and original.

On the other hand, it is also believed by many, that Working in teams is often more impressive than working with the earlier form bureaucratic management. For that reason, the transition from hierarchy to teamwork requires the review and implementation of the principles of group style management. As we can have at Information Technology Department at the ADNOC Distribution Company, while there is any disaster at the computer systems, we may find that the entire department becomes as one team and acting together to solve the matter in a very short time with less damage.

It is appropriate to the earliest belief that bureaucracies are obsessed through a top-down or even knowledge and management technique in which managers provide valuable area moreover encompass substantial control in excess of others. Further, supplementary characteristics of the bureaucratic plan include operating division of labor as well as work specialization. ( [4] )

Moreover, as we can investigate further on the same subject, the necessity of this structure seems obvious. On the other hand, one person cannot possibly handle all the various questions, problems, in addition to needs of the entire structure through themselves. Likewise, they must include support in the use of managers as well as supervisors. This is the purpose of bureaucratic in addition to regular theory, whereas it seems to support most of these theories are based on standard organizations. However, No consideration was given to the needs of complex organizations.

Furthermore, ADNOC Distribution Company has placed certain limitations on managerial independence and created a highly bureaucratic and complex organizational structure in ADNOC Distribution for some other departments such like Marketing Department, which is held directly into the CEO of the company. However, in the same time some other departments such like Information Technology Department has its own independence into most of its major job performance. Despite the fact that Bureaucratic management depended on a coherent set of structuring guiding principle, such while rules in addition to measures, as well hierarchy, in addition to an obvious division of labor.

2) Contingency:

It has been noticed that it is very much related to the situational approach, which is known as contingency approaches of organization structure. However, the contingency approaches might be put forward that effective organization structure is contingent on the proper form of organization structure style and position. Moreover, within the outline of contingency approaches we can observe that there are two styles of organization structure: the first one is task-motivated and the other one is relationship-motivated. Conversely, task, obviously, refers to mission accomplishment, and the other provisions relationship-motivation refers to interpersonal relationships. ( [5] ) On the other hand, an essential characteristic of contingency approaches is which we can say that it is any organization structure will not necessarily be effective in all conditions.

Therefore, central to contingency approaches is thought of ADNOC Distribution Company, which is being characterized widely by three factors. The first consideration would be, manger-member relations, it deals with the general atmosphere of the group and the positive thoughts such as reliability and confidence that the group has for its organization structure. However, the second factor of this, task structure, is related to exercise simplicity, the means to exercise accomplishment, and responsibility finalization. So the third last factor, position power, relates to the amount of reward-punishment authority of such organization structure.

The progression theories of organization structure suggest that both the particular organization characteristics along with the same people situation have to be taken into reflection in order to follow organization structure and focus on organizational issues. In the other hands, organization structure is a benefit of internal in addition to external multifaceted factors. Further, changes in the single market environment as well as changes in organization structure for ADNOC Distribution Company of development lead the way to changes in their organization structure responses. ( [6] )

Some contingency theorists consider the interaction between the organization along with the environment as the critical variable in determining the nature of domestic strategies as well as processes. In addition, organizations need to develop appropriate systems of differentiation in addition to integration, depending on the degree of turbulence within the environment.

Fiedler’s contingency theory is an influential theory for the reason that it recognized a variety innovative viewpoint for the revision of organization structure. Numerous aspects subsequent to Fiedler’s theory have taken on the contingency viewpoint. Therefore, Fred Fiedler’s situational contingency theory grasps that group efficiency relies on a suitable contest flanked by an organization structures styles (fundamentally a trait measure) in addition toward the demands of the position. Furthermore, Fiedler thought concerning situational control the scope toward which an organization structure can choose when it is going to perform to be the most important contingency issue in formative the efficiency of organization structure behavior. ( [7] )

ADNOC Distribution Company as a successful company must be able to identify clues in an environment and modify their organization structure to meet the needs of their followers and of the particular situation. Even with exceptional diagnostic skills, organization structures may not be effective unless they can adapt their organization structure style to meet the demands of their environment.

It requires a significant change in management viewpoint. Several choices, contingency plans, are often devised for how the ADNOC Distribution Company might suit its environment. Lower level planners and managers are often involved in the process of generating choices, an activity that quickly puts top management in the importance of choosing a plan in which it had little involvement in developing.

Finally, we can say here about the contingency plans, that when the workload exceeds the available resource, possible measures should go into effect. Airlines, for example, institute office staff automatically onto reservation lines when those lines hold up.

Many studies have been conducted on organization structure to be taught for the duration of the precedent decades. Further, there is in addition an upward body of investigational offers on organization structure into the UAE society. On the other hand, nothing of these revisions particularly addressed whichever culturally independent variables might affect such organization structure or its modification as a society becomes familiarized to the organization structure. Further, previous studies on local organization structure were performed in Western advanced education institutions in addition to several additional domestic UAE universities that granted prominence toward the need for additional information on cross-cultural experience on such organization structure. ( [8] )

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In this regards, at the Information Technology Department, there is a valid example about the disaster recovery. Such significant attention to issues of Disaster Recovery has been given in the media that Site Managers are generally aware that a plan should exist to enable an organization to cope in the aftermath of a Computer Room crisis. review procedures for retrieving archived data media from off-site facilities are commonplace, and Maintenance Contracts, ‘Hot’ Stand-by Sites and Distributed Architectures all play a part in helping to continue ‘business as usual’ in the hours during and immediately following a Computer Room Disaster. These techniques, though indispensable, are much like Insurance Policies; mobilized AFTER a disaster, and then offering only limited and temporary relief.

3) Cultural:

Cultural characteristics in the United Arab Emirates is a rich bring together of traditional Arab, besides Islamic as well as contemporary elements. In the past, it was exceedingly difficult to find women in the organization structure location because of the culture; men did not wish to be led by women. Each family teaches their children to be a wholesome example to their brothers or even sisters. Moreover, the time is significant in the UAE’s culture.

Moreover, the strategy, which Adnoc Distribution Company in implanting in order to achieve its goal, it can be summarized as the following:

To ensuring, Adnoc Distribution workplace is healthy as well as safe for employees, contractors in addition to all others who may meet Adnoc Distribution’s operations.

To communicating along with interacting with Adnoc Distribution stakeholders in regards of respect and cooperation

To providing training and seminars to Adnoc Distribution staff, along with ensuring that they have the most up-to-date information and techniques in addition to resources available to carry out their jobs safely as well as effectively.

To investing besides supporting the Adnoc Distribution society, which frequently comprises supporting national events as well as society activities.

As we are taking the example of ADNOC Distribution Company, which it has large, multicultural workers by means of changeable stages of responsibility thus, therefore, unstable stages of compensation in favor of positions within the organization. On the other hand, it means wealth of experience, as people of different cultures can fulfill the tasks which other members unable to complete due to the language barrier, cultural or else religious experience or even personality differences. Teamwork is the capability to work together toward a widespread vision, the capacity to simple individual undertakings towards organizational objectives. This is besides; since the energy that allows ordinary people to achieve uncommon results Andrew Carnegie.

On the other hand, we may find that in Adnoc Distribution that ethics are powerful instruments of management, designed to attract the impact of social or community standards and put it to open’ corporate use. Used selectively, Ethical guidelines further corporations in deploying much so as to frameworks of energy that will provide practical responses to specific types of changing related condition. ( [9] )

Furthermore, in regards of multicultural organization, which is Adnoc Distribution is one of them. There are too many factors that might affect group behavior and group performance within multicultural organizations, however we can conclude them by the effectiveness as which might be expressed as decision quality or even number of ideas generated. ( [10] ) Moreover, efficiency as can be defined by the time to complete the task, and staff satisfaction with the process and for the said outcomes from such job. Moreover, the status of a group within the multinational organization is dependent upon some other factors. These factors are such as the importance of the task assigned to such group, the success of the group itself in performing its duty, the status of the individual workers of the same group and of course, the nature of the rewards and benefits to the group’s members by the organization.  An organization should enhance the status of a group if it wishes willing and excited participation by is staff.

4) Political:

In view of the fact, that in order to assist the establishment of the business environment in addition to political stability of the United Arab Emirates, growth, to keep the economy, the government raised the promise.

In the addition of that and from the widespread, a business must remain side by side of political forces that may affect the viability and profitability of the overall business, as well as individual firms. Political as well as legal issues that have affected businesses over the past decade include environmental legislation and regulation of the tenders. Therefore, for this business with multinational staff, such like ADNOC Distribution Company that has these factors become much more complicated. ADNOC Distribution Company must persistently observe the steadiness of governments, besides appreciate distinctions in governmental attitude, be acquainted with the regulation in conditions of importing in addition to exporting products, also be well-informed concerning the laws, which affect the industry and ADNOC Distribution Company in each category it is dealing with. These factors can affect the structure and profitability of ADNOC Distribution Company in each category. Moreover, resources of information that may be used to observe this component include ADNOC Distribution Company web site and publications, in addition to legal journals, and newspapers.

Notwithstanding the generally lower and the environmental factors listed above, all outside of this fact, ADNOC Distribution Company opportunities can be invaluable in the development of appropriate marketing strategies and evaluation of environmental factors such as critical awareness can provide strong support.

In many instances at ADNOC Distribution Company, conflict is likely to be apparent as unfavorable to teamwork. However, it can lead to a higher level of understanding among people working together.

However, conflict is frequently defined, as a verbal or physical struggle between two or more individuals trying to achieve their own goals. Many sources of conflict at ADNOC Distribution Company, can be identified in teamwork. They may include differences in opinion about the task, in values and perspectives, and in goals and expectations. Conflict may also be related to competition issues such like over power, rewards, and resources, poor facilitation skills, lack of communication, and personality differences.

Moreover, in ADNOC Distribution Company, conflict seems to be more frequent in varied teams than on more identical ones. The different beliefs, prejudices, and rules that are developed from personal experiences of each team member in a varied group that are the result of diverse social classes, genders, age groups, backgrounds, religions, customs, languages, and nationalities may constitute the source of most of confliction situations.


The above factors should be involved in every business environment including ADNOC Distribution Company as they are accepted pre-qualifications and evaluation for business in such society and we can say that they are in the same time the standard measurement for the growth of the ADNOC Distribution Company. Therefore, these above mentioned factors are already taking into consideration at ADNOC Distribution Company since we are being controlled by the business environment, which we are, belongs to, and obeying its rules as well as regulations. That is all besides we are being affected, by other oil companies in UAE, and in addition to the business development mode, which might be raised from time to time. Those are affecting directly ADNOC Distribution Company life circle on a continuous basis, since it is dealing with a product such like petroleum Derivatives that are consuming worldwide as well as UAE market is the world itself with emphasizing at the Asian market for the ADNOC Distribution Company case especially.


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