Leadership and Cultural comparison of companies based on related frameworks and concepts.

1. GROUP 2
Shiraz El-said 10310724
Victor Golovko 10292759
Abdullah Alessa 10295920
Umar Qureshi 10301395
Leadership & Cultural Comparison: Saudi Aramco vs Noir
Energy
AMBS66811 - Leading & Managing in a Global Environment: Part B 2018

2. Agenda
• Companies
• Leadership: Comparison
• Leadership: Contingency Analysis
• Culture & Motivation: Comparison
• Culture & Motivation: Contingency
Analysis
• Conclusion & Recommendations
• Bibliography

3. Companies: Saudi Aramco vs Noir Energy
Brief
Saudi Aramco operates the world's largest single
hydrocarbon network, the Master Gas System. Its 2013
crude oil production total was 3.4 billion barrels
(540,000,000 m3), and it manages over one hundred oil and
gas fields in Saudi Arabia, including 288.4 trillion standard
cubic feet (scf) of natural gas reserves.
Noir Energy is an independent Oil trading company
based in UAE. Noir Energy commits itself to
becoming an international energy company with
strong competitiveness that can operate efficiently
and reliably.
Industry location Vertically integrated Only covering downstream
Products & Services Petroleum, natural gas and other petrochemicals Refined petroleum products
Area Served Worldwide Middle-east & Pakistan
Type State-owned Enterprise Private owned (Start-up)
Industry Oil & Gas Oil & Gas
Age More than 80 years More than 5 years
Employees 70,762 8
Net Income (2017) USD 34 Billion USD 125 Million

4. Companies: Saudi Aramco vs Noir Energy
The aim of this research is to analyze leadership and cultural perspectives of two companies in the same industry field,
tackling different contingency factors to compare leadership and cultural aspects of the company.

5. Leadership

6. Leadership: Comparison (Blake and Mouton’s Managerial
Grid, 1964)
• RESULTS :
The main aim is to exploit the
profitable opportunity to get
positive results. Moreover,
survival of the company
depends on the results.
Therefore, focus on results is
very high.
• PEOPLE:
People that had bonds before,
came together for this venture,
hence there is also concern
for people, although relatively
lower than the results.
• RESULTS :
As leading multi-national oil
company in the world, its one
of the aim is to focus on
achieving high results.
• PEOPLE:
Achieving high results
sustainably depends on the
human resource, their skills
and capabilities. As a result,
there is a strategic focus to
attract and retain best
employees in the industry;
- On top of this, company
respects “Safety First”
approach for each area of
business.

7. Leadership: Comparison (Transactional Vs Transformational)
Transactional Transformational
Clarity tasks Innovative
Initiate structure Recognize follower needs
Provide awards Inspire followers
Improve productivity Create a better future
Hard Working Promote significant change
Tolerant & Fair-minded
Focus on management

8. Leadership: Comparison (Hersey and Blanchard’s model, 1970)
• DELEGATING:
Noir Energy has very low
number of employees but a
broad number of job
responsibilities. However,
maximum possible support is
provided to employees so that
they can fulfill their
responsibilities. Thus, it’s a
delegating model.
• COACHING:
Saudi Aramco has over
70,000 employees, and there
are strict policies and rules for
employees to operate. Since,
its employee base is large, it is
highly directive leadership
which sets the goals but also
supports its employees to
achieve the goals. Thus, it is
coaching leadership. For
example, one of the program
that it has for its engineers is
PDP training

9. Leadership: Contingency Analysis
• Company size and maturity level has a critical impact on a leadership style:
SAUDI ARAMCO: Transactional leadership, based on strategy, established processes and structure;
NOIR: Transformational leadership, more tactical approach, flexibility in processes and structure.
• Sophisticated processes and 360 approach to people is a necessity for big international company to attract
and retain people of good caliber. On the other hand, start-ups and entrepreneurships gives to
the employees business ownership, responsibility and additional motivation, but less rewarding financially.
• Structured entity provides more coaching approach to staff on procedures, processes and results expectations.
However, being an start-up required more delegation approach and flexibility;

10. Culture

11. Culture: Comparison (Robins, 2005)
INNOVATION & RISK TAKING
ATTENTION TO DETAIL
OUTCOME
PEOPLE
TEAM ORIENTATION
AGGRESSIVENESS
STABILITY
HIGH
HIGH
HIGH
HIGH
HIGH
HIGH
HIGH
LOW
LOW
LOW
LOW
LOW
LOW
LOW
SAUDI ARAMCO
NOIR ENERGY
• Saudi Aramco’s resources make it more focused on details, people, teams and long-term stability. On
other hand, Noir Energy’s minimal resources force it to focus more on outcome, risk and thus
aggressiveness.
• As Noir Energy’s resources are low, thus its focus on details and people is low, which result in lower
stability focus.

12. Culture: Comparison (Influences on Cultures)
ORGANISATIONAL
SECTORNATIONAL

13. Culture: Comparison (Influences on Cultures – Sector Effects)
High Risk
Fast
feedback
TOUGH-GUY MACHO
CULTURE
BET YOUR COMPANY
Slow
feedbackWORK HARD/PLAY HARD
CULTURE
PROCESS CULTURE
Low risk
Deal & Kennedy Model, 1982
SAUDI ARAMCO
Process culture – strong focus on
processes and guidelines, which give the
company high integrity and commitment
both internal/external customers
NOIR Energy
Balance between “Bet your company”
and “Tough-guy mach culture”:
willingness to accept the challenge,
aggressiveness, high focus on result

14. Culture: Comparison (Influences on Cultures – National culture
effects)
Hofstede Model, 1967
SAUDI ARAMCO
NOIR ENERGY

15. Culture and Motivation: (Motivating Potential Score by
Hackman)
VARIABLE SAUDI ARAMCO NOIR ENERGY
Skill variety Low (Fixed) High
Task identity Low (Fixed) High
Task significance High Low
Autonomy Low (Fixed) High
Feedback High Low
RESULT AVERAGE AVERAGE
Based on the feedback above, MPS for both companies can be on the same level, but they are motivating staff in different ways:
• SAUDI ARAMCO: Clear guidelines, clear expectations, safety and comfortable environment, but specifics of big company
• NOIR ENERGY: Flexibility in what and how you are doing to achieve the target, but no benefits and incentives

16. Culture and Motivation: Comparison (Emotional Needs
Theory)
• Based on the feedback above, Saudi Aramco is a mature company which has defined and sophisticated processes to encourage people
to develop and contribute to the company success. However, it creates certain limitations.
• Noir Energy, following start-up business concept, provides a lot of flexibility to the team, making them contribute in comfortable way.
However, such business mode requires high level of agility and ability to deal with new tasks and uncertainty.
DRIVE PRIMARY LEVER SAUDI ARAMCO NOIR ENERGY
ACQUIRE
Reward system - Incentive programs for individuals;
- Special offers and rates;
- Safety Award for teams/individuals;
- President Award for departments.
- Bonus system for achieving and
overachieving annual targets;
BOND
Culture - Multinational culture respecting diversity and ensuring
comfortable environment for each employee.
- Start-up culture requires agility and
readiness for unexpected situations;
COMPREHEND
Job design - Job description clear and set by GI policy,
review once in two year by HR;
- No straight lines between responsibilities,
frequent overlapping depending on current
situation and business environment.
DEFEND
Performance
management
- Annual objectives setting;
- Mid-Year and End-Year review;
- Training task program to access possible
promotion;
- Grading system.
- Team assessment: Annual objective
setting and Year-End review;
- Horizontal org structure with natural
limitation of career development.

17. Culture: Contingency Analysis
• Depending on the size of the company and deveoplment stage, there is a big variance in operation mode:
• SAUDI ARAMCO acting in more strategic thinking, having enough resources to invest in innovation and people;
• NOIR ENERGY shows short-termism and rely on more on tactics, than on long-term strategy view.
However, people are the key asset for such company;
• Development stage of the company impact the way how people run the business:
• Big size companies, such as Saudi Aramco have sophisticated list of processes and procedures to run business
efficiently, including people management and avoid high-risk situations;
• No predefined guidelines and processes in start-ups. Flexibility and faster feedback with more risk-taking situations.
• Both types of companies can appeal to employees and motivate them, but in a different style:
• Big companies: job security, 100% clarity on processes, job functions and results expectations.
Less stress and uncertainty, but with small room to be creative and innovative in their areas.
• Small companies/ Start-ups: More responsibility and ownership feel, delegation and high flexibility. However, less
job security and benefits.

18. Conclusion and Recommendations
• SAUDI ARAMCO
• No recommendations, slightly more focus on people in terms of innovation and creativity;
RECOMMENDATIONS
• NOIR ENERGY
• Structure the business, define long-term strategy to ensure business sustainability;
• Introduction of HR and Administration policy, definition of organizational structure;
• Implementation of individual reward system along job security matters.
CONCLUSION
• Depending on the size and maturity of the company, processes and approach to the business can be dramatically
different. However, both companies can attract skillful performers.

19. Bibliography
1. Buchanan D. and Huczynski A. (2017) ‘Organizational Behavior’, Ninth edition, London: Pearson, pp. 276-310.
2. Martin R. (2018) “Leadership and Culture work sessions”
3. Saudi Arabian Oil Co. (2018) Annual Review 2017 [Online]. Available at:
http://www.saudiaramco.com/en/home/news-media/publications/corporate-reports/2017-annual-review.html
(Accessed: 26th of October 2017)