Introduction
Saudi companies have specific corporate and organization culture that is worth evaluating and researching. While some have a flat hierarchy and transparent structure, others are quite close and have strict rules. This paper will present the evaluation of Maaden, a Saudi mining company, and Advanced Petrochemical Company (ADVANCED), Saudi polypropylene producer, on an organizational design scale. The comparison of companies will also be mentioned to highlight the main differences and ways of improvement both organizations have.
Maaden’s Organizational Design
Maaden has many written rules which are stemmed from the vast scope of operations. To manage a highly diversified portfolio, the organization uses efficient practices. On the scale of formalization, one can put the company on the level “four.” As the company has large projects, it claims to have developed a strict organizational structure (“Structure”). Therefore, Maaden can get “one” on a scale of specialization dimension. The emphasis that is put on hierarchy within the company can be estimated on level “three.” The historical formation of Saudi companies can partially explain the bureaucracy that is presented by Maaden. In a technology dimension, Maaden may get “one” as an evaluation because the company has three main activities: exploration, development, and production of various natural resources.
Measuring the external environment of the company, one can state that despite its international presence, Maaden says that it has stable conditions in Saudi Arabia (“Annual Report”). Thus, the external environment may get “three” on a scale of ten. The culture of the company is partially dictated by the rules the majority of and employees have due to religious peculiarities; thus, it can be estimated on a level of “two.” Maaden has experienced the lack of local employees and training systems that could teach them skills that are required in mining. It has partnered with a company to introduce technical training. Therefore, the company can get “four” on a professionalism dimension.
The company has well-defined objectives; thus, the organization can get “one” on a scale of ten. Maaden is a relatively large company that claims it has more than seven thousand employees (“Annual Report”). The organization can be estimated at the level of “three” of size criteria. The environment the company operates implies the necessity to have a mechanical mindset to avoid breaks in mining, development, and production of resources. Therefore, one might say that it should be evaluated at level “two.” Overall, Maaden has a clear organizational structure to execute efficient activities daily.
Organizational Design of ADVANCED
The formalization of rules and tasks at Advanced Petrochemical Company is quite high and can be estimated at the point of “two” due to strict standards an organization adheres to. The specialization of the company is merely broad as the management of ADVANCED executes different functions, including planning, finance, engineering. Therefore, the organization may get “five” out of ten. ADVANCED states to have toll hierarchy with a management team and a Board of Directors that overview the activities and decide where to go further (“Investor Relations”). The company gets “two” out of ten on a scale. ADVANCED specializes in the production of polypropylene; however, it also has services, which include distribution. Thus, it can be evaluated by “four” on a technology dimension.
The external conditions of the company are decent. Despite competition with China, ADVANCED has stable positions in Saudi Arabia, which can be evaluated by the figure of “three.” The company reports say that ADVANCED supports initiatives that constitute its culture, among them are continuous development, and a culture of excellence (“Investor Relations”). ADVANCED has clear values that it reiterates in various messages. For this reason, the organization may get “one” out of ten on a culture scale. It is claimed that the company creates a competitive work environment to foster innovations and encourage employees to boost their skills (“Investor Relations”). However, the official documents of the company do not state explicitly what kind of programs they have; thus, ADVANCED receives “five” out of ten on a scale.
The goals of the company are claimed in reports and suggest that ADVANCED consistently accomplish its targets. Therefore, the mark of “three” is estimating the goal dimension of organizational design. The size of the organization is stated to be small: from two hundred to five hundred employees (“Advanced Petrochemical Company: Overview”). That is why the company gets “eight” on a ten range. ADVANCED is leaning towards a mechanical mindset due to the scope of operations and responsibilities it has. Thus, it receives “four” on an organizational mindset dimension. Overall, despite being a small company, ADVANCED has gained stable positions in Saudi Arabia and has opportunities to improve in various fields.
Comparison of the Two Companies
The main differences between both companies lie in the area of size and scope of operations. Maaden is a significantly larger company with a strong international presence. While ADVANCED is merely slow and needs to partner with other companies to execute its activities. However, cultural, formal, and hierarchical dimensions of the company are quite similar due to the external influence of the country’s management style. Moreover, Maaden has a more transparent organizational structure without overlapping tasks that ADVANCED has. Therefore, one would recommend ADVANCED to improve specialization and professionalism due to its too broad activities that employees have and a lack of training systems. Maaden should adjust its formalization and hierarchy because the company lacks flexibility when dealing with urgent situations.
Conclusion
In conclusion, it should be noted that Saudi Arabian companies, despite slight differences, have more features in common. The improvements that the companies should enhance are related to openness and training programs that organizations should develop further to get qualified graduates who will lead the companies in the future. Overall, both organizations have a clear, well-defined organizational structure that helps them to provide high-qualified products and services.
Works Cited
“Advanced Petrochemical Company: Overview.” LinkedIn, Web.
“Annual Report”. Maaden.com, Web.
“Investor Relations.”Advancedpetrochem.com, Web.
“Structure.”Maaden.com, Web.