Saudi Aramco Aging Workforce

Document Type:Essay

Subject Area:Management

Document 1

It has branches in other countries such as China and India among others. The overall performance of Aramco as an organization is awe-inspiring, and it has grown to become the world’s most prominent energy organization occupying the first position in oil companies for 16 years in a row. It’s also the employer of more than 54000 people 85% of the employees are citizens of Saudi Arabia (Whelan-Berry & Somerville, 2010). Aramco got three domestic refineries which help in improving the value of the crude oil and hence export finished goods which are of high importance. This explains their ranking as the most profitable organization in the world. Age is an inevitable thing but as age progresses it affect the employee from a personal level, organization and socially.

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Age affects a person’s performance mentally, psychologically socially and intellectually. Once a company has majority employees of 40years of age and above, the organization performance will go low, and this can be the problem Saudi Aramco is bound to face. Aging employees lack knowledge of running the latest technologies (Anders, 2018). For an organization to perform well and effectively, need to have employees who are more conversant with the latest technology is very important since older employees are more resistant to change and embracing new technology. For example, older individuals have been considered less efficient, less energetic and active, resistant to transition, less trainable, less imaginative, having less performance capability, and more opinionated, to mention just a few. On the one side, there is also evidence that beliefs regarding older employees are no usually negative.

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For example, older employees frequently appear more reliable and consistent. Intended Change Proposition To secure the future of Aramco, there is a need to introduce a younger workforce to the organization. The younger workforce is fit mentally, physically and socially and this can have a significant impact on the organization performance (Kappel, 2018). Need for mentorship, providing a scholarship for youths in courses on oil and gas production is much needed. This will help improve the number of youth with skills in this industry who will replace the aging workforce. To implement this change in the workforce, there is a need to inform the organization management on the need for the transition to gain their support. The administration is generally in charge of organization activities and does have a significant influence on a change process, hence the need to convince the management and other stakeholders on the necessity of change.

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Involving employees of Aramco by creating awareness for the need of the change and how it will impact on the organization performance and not affect them. Change of roles will also be expected where the younger workforce will be responsible for the active running of the organization while the older and retired workforce will train, supervise and mentor young employees. Implementing the process will also need set goals and deadlines to achieve the change. The change aimed at Aramco is not a change that can be made overnight, a period of ten years will be crucial to get the impact of the change. Measurement or Control Mechanisms Follow up activities have to follow after implementation. These activities will help identify the weaknesses of the change process and what needs to be implemented further.

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In the Saudi Aramco case, the company has a matter of an aging workforce and employing a younger workforce could be a solution but due to lack of trained younger workforce, the change has to go through other stages or processes. This research has made me understand change can take long but having proper strategies, and it can be achieved. The essay investigates the aging labor force at Aramco with respect to the pertinent strategies, which need to be pursued in order to nurture the organization’s productivity (Anders, 2018). As such, the paper mainly aims to determine the issues facing the company by mentioning various points: aging labor force at Aramco, determining ways of improving revenues and investments at the company, highlighting challenges facing the firm to deal with the aging labor force, and strategies of minimizing the gaps between young and aging employees at Saudi Aramco.

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