Case Study: Evaluation and Reward System in Gasco Company

Abstract

This paper looks at the influence of the reward and evaluation systems in GASCO industrial oil company. The paper introduced general information of the important of the reward and evaluation in company success. Moreover, how the policy of the workforce should be designed in the company for employee to understand it. GASCO designed an effective reward and evaluation system for their employee will be presented in this paper. Finally it will present some errors that obstacle the employee from getting the good performance during the evaluation process.

Introduction

Evaluation and reward system is the most important element of any organization to success and achieving the goals. The mangers of any organization private or public should consider that the employee is the power of the work, so they need effective system to motivate them to continue working in the organization. The system of evaluation and reward are different among the companies .There are a competition between the companies to create an effective system to attract a new employee to join them.

The successful evaluation and reward system should meet the employees’ need, so each organization should consider that in their planning. The important needs that employees are looking for it in the organization are safety, fair evaluation system, good environment and good amount of salary and bonds. GASCO one of the government companies that create a good planned system of evaluations and rewards which will demonstrate in this paper. Sometimes even a success evolution system has many errors that might oppose the effective of it, so the mangers should find solution for any of these difficulties.

Brief History of Gasco

Abu Dhabi Gas Industries ltd (GASCO) is one of the gas companies in AbuDhabi in the UAE. The company is managed by Mohammed Sahoo Al Suwaidi. It was established in 1978 which following the directive of late His Highness Sheikh Zayed Bin Sultan Al Nayhan. It was a partnership Company between Abu Dhabi National oil company (ADNOC) with the majority part of % 68, Shell and Total with %15 and Partex of 2%.GASCO is operating company which responsible for producing natural gases and associated gases from onshore oil production. ADNOC was completely owned GASCO in April 2001 and gave the whole responsibilities of controlling and operating the gases in Asab Plant. Now days GASCO become the largest operating gas in the world and the biggest and important oil industrial project in the UAE. There are four deserts plant that under control of GASCO, they are Asab, Bab, Bu Hasa and Habsan. All the GASCO’S four dessert transfer the gases that produced to a Ruwais Plant for continuing the process of the gases disruptions. Moreover, the product of gases which is producing from GASCO Plants are Methan (C1), ethane (C2), propane (C3), butane (C4), pentane plus (C5 plus) and produced liquid sulphur.

The GASCO’s vision is to be the most innovative and respected supplier of Gas and Hydrocarbons in the UAE. Also this vision focuses on main principles which include honesty, integrity, and respect for people with particular focus on health, safety and environment. The GASCO’s was directed by the manger Mr. Mohamed who realized to make the main goals clear for everyone who wants to join it. GASCO’s vision faced many challenging to implement it such as cultural change, changing in the workforce, and the industrial development, so he started to build a strong vision of GASCO from inside the company and focuses on the employee. He puts a strong strategy to lead the company to achieve the goals and become the most important company in the UAE. This strategy was consisted many procedures. First it was focused on team leadership and trained the employees by organizing a strategic and leadership workshop to develop their weakness and strength their performance. Second, focus on developing the customer service by improving the skills and capacities of the entire workforce which will support the stuff, technicians, operators, engineers and supervisors. Moreover, the workshops of customer service that will arrange by the company are focused on main concept which understand others and listen up. Finally, understanding the business and operational environment in the workforce, so every employee according to his positions should understand important concept like engineers should be familiar with hydrocarbon chain. Also the financial managers should be familiar with finance operations and how the reward system works in the company. All these steps enhance the company performance and enable the company to be one of the most oil industries in the UAE.

Employee policy

GASCO is like any company that give an opportunity for qualified people to join working the in the company. The most important aim of GASCO is achieving strategic goal by giving opportunity for their employee to utilize their talent and abilities in attractive environment. The employee policy is set in clearly written and available for all employees to motivate, make the work environment attractive and more efficient. Human Resource is the most assets for every organization and responsible for setting the employee’s policy and se the system for evaluate or reward them. Also it supplied the manger with a good plan for improving the employee skill to strength them and keep record of their progress. HR’s policies are include conditions of the work, vacations and leaves of absence, salary administration ,allowances, rewards , evaluations development and health insurance.

Reward System

Reward system in the company is playing an important role to motivate the employees. Reward in business filed refer to a producers, rules and benefits that employee get for their works like salaries, allowances and health insurances. GASCO treat their employees fairly, honestly and providing them with healthy and safety environment in the workforce. The reward system in the company is very clear for every employee and written in clear way in the annual book for employee to let them understand how they will reward according to their job. GASCO’s reward system had many objectives and designed which are maintain a competitive salary level with comparable employers in the region, reward individual employees according to their performance in the work and refer the earning to the job and know differences in skills level.

The policy of salaries depends on the grade level of the employee’s position and the grade structure consists of 20 grades. The policy of company to pay equality and competitive salaries to attract, motivate qualified employee. Moreover, that will lead employee feel satisfy and fairly. The employee gets their salaried according to their performance and contribution toward the company success. There are two formal salary scales in GASCO one for UAE national and the second one for expatriates. It structures composed of two components basic salary and supplement allowances that depended on the employee’s grade level. In addition, there is a range of the salary that allows employee’s salary to progress over period depending on their performance, implement and achieving the company’s objective. There are other benefits that employee can have it like car allowances, housing allowances, educational assistance for their children and health insurance.

Employee graph + sample of the salary

Evaluation System

There are two main goals of evaluation system. The first goal deals with controlling the employee’s behavior and measuring their performance. The second goal focuses on the employee development and how can arrange strength their performance and design a training session for them. GASCO consider of have great asset system of their employee. The main purposes of evaluating employee are keeping eyes on the progress of their performance, to motivate and challenging them for changing job requirement. There are many ways to evaluate the employees in the company such as annual surveys, personal development plan (PDPs) and Competency Assurance Management System (CAMS).

The company usually at the end of each year it was created a survey for their employee to find out about the level of employee satisfaction, concerns and opinions about the jobs. This feedback from the surveys will make a strong communication between supervisor and the employees which will help for enhancement. Also, there are training program and workshops for ensuring work competence and encouraging employee to develop their skill and to strength their performance in their jobs. Moreover, the purposes of the training sessions are introduce new tools or in technology in work place and prepare employees for new position or new responsibilities. The supervisor is the one who responsible for deciding bout the training of the employee from their annual performance during the year. The CAMS is one of the evaluation methods that GASCO used to evaluate employee by asking them question about their jobs in general and their performance skills or cases that happen in their workplace, from the results of the management performance which used to add to the personal development plans for each employee.

Errors of the evaluation system in the company

The manger in any company should be qualified and understand how to assess their employee. Sometimes there some errors that might happen during evaluating performance.

Recent Effect

This case might happen when the supervisor assess employee on the recent performance job instead of asses him according to his performance over longer period.

Contrast Errors

This error might happen when a supervisor start to assess the employee against each other’s instead of comparing them according to slandered performance. This way will confuse the employee of understand the requirements of the jobs and how they achieve the objectives or not.

Ratting Patterns

This error might happen when the supervisor tend to rate all employee with the narrow range and everyone looks average. This is not effective because he should identify the weak and strong performing employee.

Conclusion

It was clear that how the reward and evaluation systems influence the company achievements. The mangers play the important role to set an effective policy of his company and how he can realize the employee stratifications. GASCO has a good reward system that motivate and interactive any qualified employee to join them. Also it was set a clear evolution procures that will help their employee to develop their skill and perform in a high slandered. All that understanding of the employee needs and how they motivate and feel fairly in workplace will help the company to success and be the most important company like GASCO’s achievement.