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Sinopec: Accelerating Global Expansion & Growth

Introduction

Sinopec is one of the largest oil and gas companies in China with thousands of employees. It has more than a million workers along with an impressive annual turnover of 250 billion (Sinopec, 2017). In addition, the majority of the employees are supposed to work in remote regions where the site is located. This means being mentally prepared to work at a remote location away from the family and facing an intense working period that continues in cycles like 3 months at work and afterward 1-month holidays. Even though the growth of the company has been phenomenal, there have been issues related to employee demotivation especially in the production and operational department. As money and holidays are the only sources of motivation for employees working at remote locations, there seems to be lack of motivation when these sources of motivation were perceived to be less effective. The lack of motivation was found in production and operational manager, Liu, and Zhang. Both were working on the pipeline inspection projects. At the beginning of the cycle, in the 1st month after the holiday, the average time to complete one pipeline inspection was 1 day, then in the 2nd month normally it became 1.5-2 days, the 3rd month witnessed an increase in the time period by 2 days. The discussion is based on analysing key theories in the form of Maslow Theory and Emotional Need Theory as content theories and Goal Setting Theory and Social Loafing and process theories.

The Situation

Liu joined as a production manager in 2009 and was responsible for managing the production processes majorly the pipeline inspection. Zhang joined in 2010 and was also a handling operational processes mainly pipeline inspection. The productivity of these employees was impressive in the initial years. However, the real issue of demotivation started to emerge in 2014 when Liu and Zhang were found to be missing their targets because of the intense work cycle. Prior to that, they worked for 3 months continuously. Both Liu and Zhang were found to be missing their target by huge margins especially after the period of 1-12 weeks and this continued for a year putting tremendous pressure on the organisation. The impact was also seen on subordinates creating work pressure and negative work environment. Even though the management tried to reduce the losses by using more resources, the problem persisted resulting in a huge loss in the production and operation departments. This led to the urgency for re-motivating these employees.

Maslow Hierarchy of Needs

The first theory related to content theories of motivation is Maslow’s Hierarchy of Needs. The hierarchy of needs is shown using a pyramid where the basic needs are at the bottom and complex needs are at the top. The theory clearly states that physiological needs in the form of water, food, and shelter need to be finished first followed by the safety and security needs (Tay and Diener, 2011). In regard to Liu and Zhang working for the discussed departments at Sinopec, it was found that these needs were fulfilled, as there was the security of job and income along with the good working environment. However, belongingness and love were lacking as Liu got married in 2012 and did not spend a good amount of time with his wife and family friends. In regard to Zhang, he already had 2 children but could never spend continuous enough quality time with them as the holiday breaks were used to be of 4 weeks every three months. Even though this period helped them in gaining the feeling of love and belongingness, the real issue was in the form of these feelings resurfacing after joining and working for 3-4 weeks. Torrington et al (2008) stated that the hierarchy of needs can only end with self-actualization when all the needs are met in a positive manner.

These views were further supported by Mullins (2012) who stated that individuals fulfilling all their needs in the hierarchy pyramid as proposed by Maslow are more likely to be highly motivated and satisfied in their personal and professional lives. However, in case of Liu and Zhang, it was found that the level of motivation was lacking and fluctuating not enabling them to achieve self-actualization because of the issue in fulfilling the need of love and belongingness. The management even offered leaves after 1-3 months but the holiday period seemed to be of less influence especially after joining the work. The management tried to increase their holiday period by one more week but the issue remained the same. This suggested the fact that both Liu and Zhang were not being able to motivate themselves even though there was a sense of security, safety, rewards, good salaries, and good environment.

They were not being able to grow beyond the hierarchical hurdle of love and belongingness leaving them aside to achieve a high level of self-esteem and ultimately self-actualization in the long run. The management even tried to communicate the issue with them but the results did not look promising mainly after 3-4 weeks of joining. They were demotivated for a reason for not spending time with their families. In this regard, they were further asked to share their issues so that proper solutions can be offered to deal with the issue and maintain the level of productivity throughout the project period. Even though, they both tried, results were far away from being promising. Cianci and Gambrel (2003) stated that the same can be related to the emotional need theory that is also a part of Maslow Hierarchy of Needs. The theory states that individuals need to be supported and encouraged while facing anxiety, depression, and loneliness.

This also means that in the working environment, the management needs to take care of the emotional needs of individuals. In case of Liu and Zhang, it was found that the management took the step of reducing the working period by one month making it 2 months in order to motivate them. This did not help in increasing the productivity but helped in managing the loss incurred in the 3rd month because of low productivity and work engagement. This also reduced the holiday period by 10 days but helped in not stretching the demotivation period for a long period of time.

Mullins (2010) stated that when the emotional needs are covered, it helps in moving towards the right direction by being motivated. It also helps in enhancing the self-esteem that is important in adding value to the personal and professional growth in the long run. In regard to Liu and Zhang, the solution was far from being absolutely productive but helped in balancing the personal and professional output to an extent. This was a short-term solution where results were far from being visible but gained the trust and confidence of Liu and Zhang to an extent. The company also initiated the reward system based on the effective performance of the employees. The reward system included incentives, recognition for work, and promotion. It can be said that the reward system was clearly in line with the goals of Liu and Zhang who sought power, promotion, and recognition in their work. The initiative taken by the management was good enough to motivate them but the results were not visible indicating that further steps were required to affect the ideology and mindset of Liu and Zhang in order to enhance their motivation level and productivity.

Goal Setting Theory

Wigfield (2014) stated that another process theory of motivation is in the form of Locke’s Goal Setting Theory. The theory states that goals need to be set that can be further distinguished as per the difficulty, acceptance, and specificity. Goals need to be realistic and acceptable in nature. There is no doubt that employees working in the pipeline inspection projects are assigned projects that are acceptable and measurable. Still, there are issues in terms of fulfilling and completing those goals. This was mainly because of the fact that supporting elements in the form of offering empathy and motivation in losing interest in work by monotonous working stages. At the same time, goal commitment and regular feedback on completion of the project was lacking. These issues were also aggravating because of the tussle between personal and professional goals.

This did not help in gaining clarity and motivation at key stages and thus affecting the overall outcome of the project in a critical manner. It was found that Liu wanted to see himself growing rapidly within 5-6 years. However, there was a slow growth as per his expectations that did not support his goal. On the other hand, Zhang wanted to build his reputation through hard work and being an exemplary figure within the organisation. His goal was to attain a higher degree of power and respect within the company along with attaining a powerful position in the due course. However, considering their personal goals, they were found to be demotivated after first 4-5 years hard work that did not help them in getting close to their set goals. Dartey-Baah (2010) added when there is a distance between personal and professional goals, there is always a possibility of discontent that can hamper the personal as well as professional growth in the long run. His views were further supported by Wigfield (2014) who pointed that goals need to be interesting and appealing in order to make them achievable. In regard to Liu and Zhang, the goals were found to be contrasting as they were working in the company with different personal goals.

They were not successful in aligning their personal goals with the professional goals. This resulted in demotivation that was evident from their productivity level. Liu was responsible for reducing the productivity of two projects in 2014 by 40% whilst Zhang was found to be absent for a considerable period of time in one project. Even though the management enquired about the reduction in productivity and issues related to demotivation, they were not being able to share their problems in the form of contrasting personal and professional goals. They were interested in saving their job for financial security but were also affected by the monotonous work environment that did not offer much of a change because of the similar tasks and responsibilities.

Although the holiday period brought a sense of productivity, it remained for starting few weeks and was further marred by absence and delay in completing the project. When Liu and Zhang joined the company, they enquired on the feasibility of changing location every 3-5 years. Initially, they were offered positive signs of changing location within China as per the need and demand, they were later asked to stick to the same project and same work site for longer years. This did not excite them with fresh location or challenge them with new projects or technologies.

However, following the same routine and working in the same environment demotivated them to a certain extent. This was mainly because of the fact that both were fond of exploring new places and cultures rather than working at the same place. Mullins (2010) stated that employees have less level of motivation when they fail to relate to their tasks and responsibilities. This was holding true in regard to Liu and Zhang who were not been able to relate to their tasks and responsibilities for a long period of time. The holiday period brought a sense of change once they came back from their homes but the essence lasted for a brief period of time leading to high level of demotivation. It can be further said that the organisation was fairly responsible for such demotivation level as it offered them a goal and hope of exploring new places and projects.

Hafiza et al (2011) stated that expectations play an important role in motivating and demotivating employees. If employees feel that their expectations are not met, it is quite hard to reverse this feeling. The same was found in the case of Liu and Zhang. They were found to the expecting a lot from their organisation in terms of handling new and interesting projects along with getting exposed to new technologies. This did not help in enhancing their motivation level for long. Mulder (2007) stated that the role of the management in enhancing the trust level of employees matters the most and Sinopec was trying the best to win the trust of employees. The management was offering training solutions, better work culture and environment, and also learning infrastructure. However, the only issue was in the form of not aligning the personal and professional objectives in a systematic manner.

Kahya (2007) added that when organizations fail to understand and respect the goals of employees, they tend to create an environment that is often demotivating. It also affects the morale and productivity of employees in a negative manner.

The same case was evident in regard to Liu and Zhang where they were found to be in a situation that was not productive enough to support their belief of attaining personal goals. Mullins (2010) found that attaining goals is a complex process embedded with a number of challenges. This is mainly because of the fact that accomplishing goals require a lot of skills and expertise.

Although Liu and Zhang were equipped with desired sets of skills making them capable to handle the production and operational tasks, they were not been able to achieve their professional goals because of the interference of personal goals making them feel demotivated towards their jobs and responsibilities. The management tried to balance their goals and improvement was seen in the approach of Liu and Zhang. However, the entire process required a long-term assessment to mark the significant improvement.

Social Loafing

Another key theory is in the form of social loafing. The theory is based on the notion that people exert less effort in order to achieve a goal while working in a group compared to while working as an individual all alone. Forsyth (2010) stated that there are coordination issues along with understanding problems that lead to such performance in groups. In case of Liu and Zhang, it was found that both were highly ambitious and wanting to gain power, recognition, fame, and money along with the promotion. They were also open to new ideas and learning along with handling new and exciting projects. However, their role demanded to work in a group and to maintain the productivity level.

The management identified that both Liu and Zhang keened to take control of their tasks and responsibilities and did well when asked to fulfill individual tasks and responsibilities in the form of presentations and offering insights to the production and operational issues.

However, they failed to do well in-group where the degree of performance deteriorated after every 3 months. The one-month period of the holiday was good enough to boost their emotional and personal needs. The idea of using 2 months remote working worked a bit in terms of motivating them and avoiding the social loafing in the 3rd month. However, there were little signs of an increase in the productivity. The management also looked for options in order to use social loafing as a tool for motivating them but considering the pipeline project requiring group work and sharing of tasks and responsibilities, the same was not possible. It was evident that Liu and Zhang were seeking bigger and powerful roles whilst the management was keen on using them in a group. This is where the conflict of interest was visible and can be assumed as a reason for demotivation.

In terms of the solutions, the management might think of changing the working period but this can cost mobilisation and restructuring cost. However, the loss of production because of the stated demotivation needs to be managed effectively through planned strategies. It will be prudent to offer more power and promotion rather than just focusing on monetary benefits. The management can also recruit new and skilled professionals willing to work as per the goals and objectives of the company. The importance of social loafing can be seen in such cases where individual power and expression tends to be highly motivating and productive at the workplace.

Conclusion

Based on the discussion, it can be said that the real problem was in the form of work cycle that revolved around 3 months of remote working followed by one month of holidays. The Maslow Hierarchy needs to be suggested that they were not being able to fulfill their self-esteem that was because of the lack of emotional support. Their goals were inclined towards power, positions, and recognition and were getting lost while working in the group. The social loafing was evident as they looked productive while working as individuals and lost some degree of productivity while working in the group. The management did try to reduce the remote working period by one month in order to mitigate the possibility of a reduction in the level of productivity. However, it was of little benefit as the results were not seen or forecasted.

Thus, it can be recommended to further reduce the working period and shorten the holiday period by balancing them as 4 weeks of work followed by 1 week of the holiday along with offering them more power and individual responsibility. Even though, social loafing and Maslow theory signifies individual goals and objectives along with individual power, their success of organisations is not based on individuals but group tasks and coordination.

Even though these theories fail to mark the importance of group activities and coordination and focus more on individual beliefs and objectives, there is a need to balance individual and team goals. Additionally, it is important to engage Liu and Zhang in different projects over a period of time to reduce monotony in the work cycle. An increase in their productivity should be further rewarded with promotion and recognition to support their goals. This will help in winning their trust along with motivating them in the right direction.

References

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Forsyth, D.R. (2010). Group Dynamics (5th edition). Belmont, CA: Wadsworth.

Hafiza, S.N., Shah, S.S., Jamsheed, H., & Zaman, K. (2011). The relationship between rewards and employee’s motivation in the non-profit organizations of Pakistan. Business Intelligence Journal, 4(2), 327-329.

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