Introduction
The performance of any company critically depends on the employment of effective management models and their ability to cultivate higher employee performance. In general, people are an organization’s main capital and it is essential to provide favorable conditions for their growth (Aguinis, 2023). At the same time, every employee should be aware of the organization’s strategic goals and objectives to ensure they move in the same direction and work on achieving strategic goals (Aguinis, 2023). The following paper analyses ACWA Power, a Saudi Arabian company, to evaluate its current strategic goals and management system and determine whether they are tied to employees’ functioning.
Company’s Overview
ACWA Power is one of the fast-evolving companies operating in Saudi Arabia. It develops and operates power generation and desalinated water plants (ACWA Power, 2019). The company has 72 assets in operation, construction, or development in 12 countries (ACWA Power, 2019). The corporation operates in the Middle East, North Africa, Southern Africa, and Southeast Asia regions (ACWA Power, 2019).
ACWA Power employs around 4000 people in various locations, with around 60% of local employment (ACWA Power, 2019). Thus, it can be described as a powerful actor focused on further growth and entering new markets. Its success also evidences the effectiveness of the management system and its ability to communicate clearly the goals necessary for the firm’s rise.
Company’s Goals
Thus, the company’s essential goals and objectives are linked to its mission and vision. ACWA Power’s mission is to reliably and responsibly deliver power and desalinated water at a low cost (“Mission, vision, and values,” n.d.). Its vision is related to the previous statement and proclaims the necessity to ensure the ingenuity and entrepreneurship of the private sector (“Mission, vision, and values,” n.d.). It also focuses on making electricity and desalinated water available to communities to support nations’ social and economic development (“Mission, vision, and values,” n.d.). In this way, ACWA Power focuses on its global presence and its further evolution to start operating in other regions and generate income.
The leading company’s objectives are aligned with the firm’s focus on further expansion, profit growth, and innovation. First, the company focuses on increasing 120 gigawatts of power capacity during the next ten years, vital for its rise and competitiveness (Rahman, 2022). Second, it aims to support shifting to a low-carbon economy by facilitating clean energy and innovative solutions. Third, the firm wants to maintain a strong financial position to remain independent and support its new projects (ACWA Power, 2021). These goals are central to the company’s further evolution and its ability to compete with its main rivals.
Employee’s Goals
The Chief Technology Officer (CTO) is one of the employees whose goals should align with the organization’s central objectives. The worker’s primary functions incorporate all executive decisions regarding the technological interests of the company and human resource management (Aguinis, 2023). Moreover, they oversee the company’s technological needs and research and development activities (ACWA Power, 2021).
The Chief Technology Officer investigates an organization’s short- and long-term requirements linked to innovations and technology. He also offers ways to invest capital to help the firm accomplish its strategic goals. The first performance goal of the chosen employee is to improve existing technology and establish an implementation strategy that allows ACWA Power to reach 120 gigawatts of capacity in the next ten years (ACWA Power, 2021). This means that a 5% improvement should be attained every year to ensure significant progress. It is essential for the company’s growth and its ability to focus on the projects it has at the moment.
The next CTO’s goal is related to ACWA Power’s desire to support the shift to a low-carbon economy. It means that the employee is responsible for supporting research in this field for the company to have the technologies and investment necessary enough to guarantee that ACWA Power can promote global change and popularize a low-carbon economy (ACWA Power, 2021). The company’s international nature encourages reconsideration of performance management approaches and human resource management practices, including the work of CEOs and top managers (Boon et al., 2019). In other words, the CTO is responsible for supporting teamwork and launching new, unique projects globally to increase the popularity of ACWA Power and its services.
Furthermore, the CTO is responsible for finding new partners and building stronger relations with them (ACWA Power, 2021). Projects similar to those launched in Uzbekistan, which imply building green hydrogen facilities (Ahmad, 2023), can facilitate the low-carbon economy. The CTO should be responsible for organizing such projects and maintaining them.
Finally, ACWA Power is focused on maintaining its strong financial position to avoid decline and ensure there is a basis for future evolution. The research shows that higher employee involvement is one of the central factors for achieving positive economic effects (Jiang et al., 2021). A similar situation can be observed in the analyzed case as aligning the CTO’s goals with the central company’s aims helps move forward and create the basis for future evolution (Aguinis, 2023).
Currently, the CTO uses technology to generate a competitive advantage and attract new clients and investors. Moreover, one of the CTO’s performance goals is to develop a strategy that will help balance spending on technology and reduce expenses by 2 percent during the following two years. This strategy will create the basis for stable work and avoid significant losses.
Importance
In this way, the alignment between the organization and employees’ goals is central to the organization’s table work. The organizational process is closely linked to the work of individuals belonging to it and their involvement (Brown et al., 2019). For this reason, the first performance management task is to raise the employee’s productivity and tie it to the existing strategic goals and objectives (Aguinis, 2023).
Moreover, human resource management practices promote innovativeness and specialist engagement (Demo et al., 2020). ACWA Power is a successful and fast-evolving company that creates opportunities for specialists’ personal and professional growth and, at the same time, guarantees they work within the framework created by the organizational goals. It promotes better outcomes and helps to maintain a strong position in the market.
Conclusion
Altogether, performance management is vital for organizations and their ability to reach organizational goals. People are the most valuable asset of any firm, and it is crucial to create a favorable environment required for their personal and professional development. At the same time, employees’ work should be directed and tied to the organizational process to attain higher performance levels.
ACWA Power’s example shows that the company’s Chief Technology Officer is responsible for achieving goals aligned with the corporation’s strategic aims. This employee’s work is vital for ensuring stable financial performance, cultivating a low-carbon economy globally, and increasing production power. The interconnection between the CTO and the company’s objectives is essential for the further evolution and preservation of the firm’s leading positions.
References
ACWA Power. (2019). Accelerated transformation: ACWA Power annual report 2019. Web.
ACWA Power. (2021). Trusted to deliver a greener future. ACWA Power company integrated annual report 2021. Web.
Aguinis, H. (2023). Performance management (5th ed.). Chicago Business Press
Ahmad, M. (2023). ACWA Power to develop Uzbekistan’s first hydrogen project. Energy. Web.
Boon, C., Den Hartog, D. N., & Lepak, D. P. (2019). A systematic review of human resource management systems and their measurement. Journal of Management, 45(6), 2498–2537. Web.
Brown, T. C., O’Kane, P., Mazumdar, B., & McCracken, M. (2019). Performance management: A scoping review of the literature and an agenda for future research. Human Resource Development Review, 18(1), 47–82. Web.
Demo, G., Costa, A. C. R., Coura, K. V., Miyasaki, A. C., & Fogaça, N. (2020). What do scientific research say about the effectiveness of human resource management practices? Current itineraries and new possibilities. Revista de Administração da Unimep, 18(3), 138-158.
Jiang, Y., He, X., Zhu, Y., Wu, G., & Gao, X. (2021). The economic effects of direct and indirect employee involvement: Evidence from corporate social responsibility reports of Chinese listed companies. Frontiers in Psychology, 12, 762608. Web.
Mission, vision, and values. (n.d.). ACWA Power. Web.
Rahman, F. (2022). Saudi Arabia’s Acwa Power targets 120 gigawatts of power capacity in next 10 years. The National News. Web.
