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Dr. Burton A. Aggabao Facutly Member, College of Business Administration University of Fujairah, United Arab Emirates E-mail: [email protected] Hassan Saeed Alyammahi BBA Graduate, College of Business Administration
University of Fujairah
FUNCTIONAL AREAS AND ORGANIZATIONAL PERFORMANCE OF ADCO
Abstract: This study measures the significant relationship between ADCO functional areas and organizational performance. The researcher used the survey researcher design as the main research methodology for this study. The sample determined for this study is Fujairah ADCO Field. The researcher's made questionnaire was the main tool to gather the data from the sample. However, the weighted mean and correlation coefficient were the statistical tools used for the data gathered.
The analyzed and statistically treated data showed that the functional areas of ADCO is "Agree", with all of its components, which are Management Audit, Marketing Audit, Finance/Accounting Audit, Human Resource Audit, and Management Information System Audit. Besides, the Organizational Performance of ADCO was rated as "Agree" along with its dimensions, which are Structure, Quality, Procedures, and Achieving Goals. It is concluded that ADCO Functional Areas have a significant association towards its organizational performance". This study further included lists of recommendations that are related to ADCO functional areas and organizational performance in which would assist ADCO to improve its performance.
Keywords: Strategic management, functional areas and organizational performance.
I. Introduction leum and how to extract other materialistic compo-
Petroleum industry went so high for the past nents, industries start depending on technological
decade. Moreover, the industry itself assist many and machines uses petroleum as their energy. Besides,
other industries to exist. Some of these industries this made the petroleum materials become one ofthe
existed from petroleum industry are chemical clean- main resources used in almost all industries. ing materials, gases, diesel, and so on. All these in- Therefore, this study is provided to specifically
dustries are using the petroleum as their main input examine this petroleum industry from the biases of
material. However, that lead the industry of petro- the functional areas and organizational performance.
leum to go wider ass it is ever known. As the industry is going so wide in every country,
Historically, it is well known that the first develop- the researcher allocated the Abu Dhabi Company
ment made by human is the steam wheel. But after- for Onshore Petroleum Operations Ltd. (ADCO) as
wards, human nature went wide with their inventions the determined company to accomplish this study.
to start the industrial revolution with machines and The existence of ADCO was back in 1939 with its
technical equipment. With the discovery of petro- agreement with Trucial Coast Company. ADCO
firstly operated in 1950 in Abu Dhabi emirate in United Arab Emirates. Even with their first drilling, first operation, they did not discover oil until 1960s. After ADCO discovering oil and operate very well, they have started exporting oil at the mid of 1960s. Afterwards, they expanded their business until they had developed eleven (11) oil fields [1].
Every business is operating based on a systematic approach. This is called, in other words, the business process. However, the business process is a system that include the operating of functional areas to achieve the organization's objectives and goals. Therefore, the study of functional areas causes the understanding of the business process. Anyhow, the functional areas of any business include five areas. These five areas are Management, Management Information System, Human Resource, Marketing, and Finance/Accounting [2]. Moreover, this study is studying organizational performance as it is one of the indicators of the organizational success.
1.1 Statement of the Problem
The researcher studied the functional areas of ADCO and their effect toward organizational performance for the fiscal year 2014-2015. Specifically, this study aimed to answer the following questions:
1. What is the extent of executing the following functional areas of ADCO:
a) Management Audit;
b) Management Information System Audit;
c) Human Resource Audit;
d) Marketing Audit;
e) Finance/Accounting Audit.
2. What is the extent of the organizational performance of ADCO, according to the following:
a) Achieving Goals;
b) Quality;
c) Procedures;
d) Structures.
3. Do the following functional areas significantly affect the organizational performance ofADCO:
a) Management Audit;
b) Management Information System Audit;
c) Human Resources Audit;
d) Marketing Audit;
e) Finance/Accounting Audit.
1.2 Hypothesis of the Study
The way the functional areas are implemented at ADCO significantly contributes toward towards its Organizational Performance.
1.3 Conceptual Research Framework
This study is analyzing the functional areas and organizational performance of Abu Dhabi Company for Onshore Petroleum Operation (ADCO) in Fujairah, United Arab Emirates. In this study, two major variables are considered. Based on the cause and effect framework, the functional areas would be considered as the independent variable, as they are the one in which has a cause of organizational performance. Besides, the organizational performance would be considered the dependent variable, as it is the effect of functional areas. Therefore, the following diagram explains this research path.
The independent variable includes a set of sub-variables. The sub-variables are Management Audit, Management Information System Audit, Marketing Audit, Human Resources Audit, and Finance/Accounting Audit. Through studying the independent variable, this paper is able to identify the causes of any gaps or deficiencies in ADCO. As defined, functional areas are a grouping of activities on the basis of their need to accomplish one or more specific tasks within the organization [3].
The dependent variable is referred to organizational performance. Based on several literatures, the researchers were able to identify several points related to organizational performance. It includes achieving goals, quality, procedures, and structures. Through the dependent variable, the researchers were able to analyze possible solutions for the gaps and deficiencies determined. James [4] defined organizational performance as an organized group of people performing a specified action or task to achieve a specified purpose. Also, Mouzas [5] explained that efficiency is concerned with minimizing cost and improve operational margin.
Independent Variable Dependent Variable
Functional Areas: 1. Management Audit 2. Management Information System Audit 3. Human Resource Audit 4. Marketing Audit 5. Finance/Accounting Audit Organizational Performance: 1. Achieving Goals 2. Quality 3. Procedures 4. Structures
A
I FEEDBACK
Figure 1. Conceptual Research Paradigm
Lastly, the researchers used these two variables to establish the significant relationship between functional areas and organizational performance of ADCO in United Arab Emirates.
2. Literature Review
The researchers had went through several resources such as books, journals, reports, websites, and company profile for gathering the literature reviews needed.
As Ashwin and Watson [6] stated, businesses requires different areas to function in the right way. Each area has its own procedures, rules, processes, and purposes. However, the name over these areas is called Functional Areas. These functional areas are Management Audit, Management Information System Audit, Marketing Audit, Research and Development Audit, and Finance/Accounting Audit. With the uniqueness of each area, together they formulate the business itself. Also, each area completes the other. To accomplish the business procedures, these procedures must go from an audit to another until they are reached to the final audit that will give its complete procedure.
Management has three main processes and mechanisms, they are controls, auditing, and evaluation. These processes and mechanisms insuring that the budget of the business is matching with the expenses
of the operations. The insurance of the budget is related to the decision making, risk management, and resources control. Management must rely on reliable data of the expenses being spent for the operations of the business. In that way, they will be always aware of the costs, whether variable or fixed, and control it to match with the budget. Another thing that the management must understand the budget determined as a beneficial consideration for the business. If the real expenses went higher than the budget determined, the business will face a drop down with its profits and sales. In this point, there is a risk putted on the organization. However, the management must control this risk to keep it to its minimum and avoid it if possible. Decisions always dependable on the facts on the hand. These facts are coming from both premium and secondary resources. However, these facts are considered to be a references to even previous decisions and future decisions. The part of management comes here as taking these data and analyze it to make the right decision. The budget is considered the most premium resource of data. Because the budget is the controller of the business, management must put it in the consideration for the business decision making [7].
The management information system is the main area that assess the organization's critical system, technology, and information processes. The management information system audit has its purpose of protecting the information of the organization and maintain it reliable, available, and compliant. Besides, management information system has its main role of sustaining information compliant with the policies and procedures of the organization and the laws and regulations of the region. One part of the management information audit in the organization is to keep it away from risks during the organization's coverage. The coverage of the organization is related to its applications, operation, network, and information servers. Management takes the assistance from the management information system audit through its evaluation of the technological impact on the company's procedures. Moreover, the evaluations made by the management information system provides a measurement for the management of the achievement of goals and objectives [8].
Each product has a life cycle, which has four main phases. These four phases are introduction, growth, maturity, and decline. The introduction phase is the beginning of the product itself, and it is mainly related to building the product. However, the company needs to research for the materials, ideas, similar products, completing products, alternatives, and substitute products for their product. That is because they must know what the best product to produce is and how they will do that. Also, the organization must develop the product correctly from the points of materials usage, production process, and workforce. All these things are the main role of the research and development audit [9].
The organization can also make decision upon research and development audit reports. In some cases, the research and development audit will notice that the product is near to the maturity phase. In this case, the research and development audit will report to the management about this situation.
Therefore, the management will obtain these reports and take an action upon it. However, research and development assists the management in making decisions as it has a direct activity with the product itself. Moreover, it is the audit that makes the researcher related to the product being produced. Therefore, they may suggest an alternative product, a substitute product, innovated product, or improve the product itself. Afterwards, it will be the decision of the management to take [9].
Although, Klincekova and Salgovicova [10] argued that Marketing Audit can be defined as the systematic, comprehensive, independent, and periodic measurement of the organization's objectives, strategies, environment, and activities. The aim of marketing audit is to analyze and identify issues and problems, and opportunities and recommendations. The main purpose of marketing audit is to move the organization's market further. Based on the definition, there are four characteristics of marketing audit, they are integrated, systematic, independent, and periodic. Marketing audit is integrated because it fulfills the marketing from all the sides and activities.
Also, Klincekova and Salgovicova [10] said that marketing is systematic because marketing comes in an ordered steps. The steps of marketing are enterprise marketing environment, internal marketing system, and marketing activities. Besides, marketing is considered to be independent as it should be carried with experts in marketing. Most likely, these experts are named marketing auditors. The independency of marketing is related to the people who controls it and directs it from the biases of knowledge. Lastly, marketing is periodic because it serves the organization in both ways, short-terms and long-terms.
Marketing also has six components, which determines the marketing situation of a specific organization. However, these six components are audit of marketing environment, audit of marketing strategy, audit of marketing organizations, audit of marketing systems, audit of marketing productivity, and audit of
marketing functions. One of the factors affecting the marketing audit is information. As a result, information is valuable in marketing audit as it has a great effect on it. The marketing audit will be influenced by the information through an effect on behavior, decision, and outcome. The behavior ofthe organization in the market will be influenced by using wrong or unreliable information. Besides, the management will make wrong decisions by using an information that is not accurate. Moreover, the outcome of the company will be dropped upon bad marketing information [10].
Besides, to determine the organization's level from its profits, loss, value, and capital; the organization include finance/accounting audit in its functional areas. The reason behind accounting being very important audit in the organization is because it has three main purposes. The first purpose is to identify, record, and communicate the economic events of the organization and interested users. The second is the studying of the economic events of the organization. Third, accounting assess developing an identified information for interested users. Based on these purposes, accounting has three activities; identification, recording, and communication. Accounting is widely used in the organization, it can be used from human resources, investors, management, finance, marketing, and creditors. Therefore, accounting audit is an important audit for the organization. Without mentioning, accounting is generally used based on the Generally Accepted Accounting Principles (GAAP). GAAP is a set of rules and practices used as a general guide by accounting professions for financial reports. However, this directs all the organizations to have an absolute results for their financial reports in which will help the management in making more accurate decisions. In that way, the organization will grow and reach its objectives faster than the determined [11].
Kinicki and Krietner [12] mentioned that the Functional Areas are working together to direct the organization toward success. As a result, these functional areas are necessary to be effective in all its
operations and processes. Therefore, it is a necessary to assess organizational effectiveness for each functional area. Anyhow, the organization can measure its effectiveness through four criteria. The first criterion to measure organizational effectiveness is goal accomplishment. Goal accomplishment is one of the measure of effectiveness in the organization. Effectiveness is related to how do the organization achieved its goals and objectives. Because achieving goals is the most important thing in the organization as it is the aim of the organization. Second criterion is resource acquisition in which related to the use of input to produce output. It is important for the organization to effectively use its resources to produce output. Because resources is costly and facing scarcity, the organization must be effective in using them. Third criterion is internal process; the internal process provides a clear view about the information flow. Internal process main role is to insure the information flow is smooth. Moreover, it assess the organization to build commitment, job satisfaction, loyalty, and trust. Last criterion is strategic constituency satisfaction that is built on the biases of creating satisfaction to reach effectiveness. Strategic constituency drives the organization towered effectiveness through developing satisfaction between stakeholders and shareholders [12].
Freshswdm [13] explained that any organization must work in a hierarchical way to be effective. Specifically, the organization structure must be emerged with the functional areas and the matrix of the organization. Moreover, Freshswdm [13] mentioned advantages and disadvantages of the functional areas. The advantages are; managers know their functional areas, the same functional background is shared by teams, clear responsibilities, and straight forward task management and work assignments. The disadvantages are; tendency decreases cross-team communication, increased risk, project ownership is no single, and hard to be navigated. Therefore, based on these advantages and disadvantages; there are some hints that assists the functional areas to be effective. First, schedule regular meetings with managers to
figures limitations between departments. Second is to sustain good communication between functional areas through invites. Third is to plan for joined teams among functional areas. Fourth, managers should uses feedbacks to correct ineffective actions and communication. In that way, the organization will be effective in its functional areas [13].
Both efficiency and effectiveness must be existed in the business to increase its productivity. In some cases, only efficiency drives the company towards success. Many organizations seeking to find business opportunities to raise their market value. To achieve these business opportunities, businesses must generate a return on assets higher than financing cost. This is generally referred to efficiency. Therefore, efficiency is not only a measurement of success, it is a measurement of operational excellence of productivity. When it comes to create a unique plan to sustain growth, the business will be effective. Though, effectiveness is related to the special recipe of a business to grow in the market place and creates business opportunities [5].
Aguinis [14] explained that performance has a relationship with the productivity of the organization. Besides, the productivity comes from the points of efficiency and effectiveness. Therefore, Aguinis [14] stated that performance can be measured through four dimensions. These dimensions are effectiveness, efficiency, learning and growth, and team member satisfaction. For the concern of this study, the efficiency is referred to the degree of internal team processes support the achievement ofthe results, team member satisfaction, and team growth. Besides, efficiency includes measurements of communication, collaboration, coordination, and decision making.
Organization is the organized group of people that have a particular purpose to be accomplished. In the other hand, performance is the action of a process that is to perform a task of function in terms of how successful it is being performed. Together, it is how successful a group of people performing together toward a particular purpose of performing
a function. If the organization is working together to achieve great results, and it is measured by the value delivered to customers, it is known as high organizational performance. within the organization, there are several functional areas that collaborate together to obtain such high organizational performance. these functions have several functions. Such these functions are the strategic objectives, organizational structure, business performance measures, allocation of resources and processes, reward structures, and values, culture, and guiding principles [4].
Business performance measures as a representative of the organization's areas assessed being measured. Moreover, there is no specific measure to be used in the organization, but the measure being used should determine the goals and strategies of the organization. Besides, it measures these goals and strategies in biases ofbeing set well for the sake of achieving them. The aim of business performance measures is to direct behavior toward the strategies of the organization. Furthermore, the information out of the business performance measures must be accurate and on time in order to reach success in the performance [4].
In some situations in the year, there would be financial crisis that influence the whole country, specifically organizations within the country. In order to escape such crisis, organizations measure their performance and determine the factors that may affect them. Afterwards, they would assess these factors in their advantage and defeat the crises. The performance indicators are good way to define such factors. They are designed to provide information of performed processes within the organization to offer the right support of achieving the objectives [15]. Organizational performance as the analysis of the company's performance as compared to its goals and objectives. Successful organizations play a major role in developing nations. Therefore, to reach such success, the performance of the organization should be high. Thus, organizational performance is very important, specifically in management research. One of the indicators of organizational per-
formance is the profit. Because the profit is a determinant factor of proving the organizational success, it had been considered one of the biggest indicators of organizational performance [15]. Lebans & Euske [17] had provided several definitions of organizational performance. First, performance is dynamic that require judgment and interpretation. Second, the performance may be illustrated through the use of causal model in which describes the accuracy of actions that may affect the future results. Third, performance is formed by a set of financial and non-financial indicators that offer information on the level of objectives and goals achievements. Fourth, defining performance requires the knowledge of its elements' characteristics to each area of responsibility.
3. Methodology
3.1 Research Design
The descriptive research design, specifically, survey research design is used in this study. Survey research design is an efficient way to collect information related to a group of people to measure attitudes, knowledge, and preferences to the phenomena being studied [16]. In this study, the survey research design is used to assess the functional areas and organizational performance ofADCO.
3.2 Population and Sampling Technique
Abu Dhabi Company for Onshore Petroleum
Operations has 11 fields working among the seven (7) emirates of the United Arab Emirates. Therefore, the population of this study is determined as the total number of employees working in the eleven fields of ADCO. Based on ADCO Sustainability Report, the total number of employees they have is reaching 7,400. The 11 fields of ADCO are Bu Hasa, Asab, Sahil, Shah, Bab, Al-Dabb'iva, Rumaitha, Shanavel, Huwaila, Quasahwire, and Bida Al-Qemzan.
However, the sample had been drawn from the population using the random sampling technique. Because of the huge number of the population, the researcher had determined the sample to be one field of these eleven fields. The random selection of the sample went on the Fujairah Field named as "Hab-
shan". The total number of managers and supervisors in the ADCO, Fujairah is considered to be the sample of this study, which is 45 employees.
3.3 Description of Respondents
This study is determining the measurement of the effectiveness of the functional areas of Abu Dhabi Company for the Onshore of Petroleum Operations. As a result, the researchers had determined the respondents to be from the top level of the organization, which are managers and supervisors, of Fujairah Field. Employees are not considered in the sample, because they are not in the top level of the organizational chart. Besides, the description of respondents did not require any considerations for the gender, age, experience, qualifications, and acknowledgement. On other hand, the considerations were based on positions, tasks, responsibilities, and duties. Therefore, out of 160 employees, the respondents considered are 45 managers and supervisors. In the Fujairah Field, there are six main managers who are responsible for the whole field. Furthermore, for each three employees, there is one supervisor. That makes six managers and 39 supervisors; which established the samples used in this study.
3.4 Data Gathering Instrument
The researcher's made questionnaire is used as the main data gathering instrument. Based on Burgess [17], questionnaires had been developed based on the standards of the checklist survey. According to the standards of the checklist questionnaire, researchers used 5-Likert rating scale.
There are six questionnaires used by the research to gather the data for this study. The questionnaires included several items related to the variables of this study. The variables used are functional areas and organizational performance. The questionnaires are designed according to the sub-variables existed in each variable. Therefore, the questionnaires include all the data required to be gathered from respondents to be analyzed and draw conclusion.
The validity and reliability of the questionnaires are determined based on the gathered information from previous literature reviews. 3.5 Statistical Treatment of Data The weighted mean and coefficient correlation are used in this study. The weighted mean is used to measure the extent of the functional areas of Abu Dhabi Company for Onshore Petroleum Operations (ADCO) and the extent of the organizational performance. The coefficient correlation is used to determine the relationship between the functional areas ofADCO and the organizational performance; and, the.05 level of significance was used. The Statistical Packages for Social Sciences (SPSS) Version 20.0 was the statistical software used in this analyze the data of the study. 4. Results and Discussions 4.1 Extent of Functional Areas ofADCO The functional areas of ADCO was found out to be generally implemented based from the overall computed mean score 3.68, in which majority of the respondents had agreed that the extent has implemented across five areas: management, marketing, finance and accounting, research and development, and human resources, as illustrated in Table 1.
4.1.1 Management Function The first functional area in AD CO is the management in which respondents had 'agreed' that factors of management had been implemented based on the computed weighted mean 3.66. Among management functions that were assessed are: ADCO has a
clear vision and mission; use vertical structure; has much flexibility in decision making..., and, managers delegate authority well.
4.1.2 Marketing Function
The marketing audit checklist included 12 components with an average weighted mean of 3.83 which is "Agree". The weighted means range from 4.53 to 4.64 were addressed to the components concerning the annual budgeting plans, and effective promotions and advertisings of ADCO which is interpreted as "strongly agree". Seven factors of marketing were fall under the rating scale of "agree". These dimensions are: ADCO is a well-positioned company (3.62 mean), effectively segmented (4.16 mean); increased market share (3.96 mean); the existence of an effective market research strategy (4.11 mean); effective planning for marketing and budgeting (3.60 mean); appropriate pricing (4.29 mean),; and cost effective and reliable distribution channels (3.93 mean). Some respondents did not agree nor disagree on three components in marketing functions. These are described as "Neither Agree nor Disagree" and these factors are: good product quality and customer service, effective sales organization, and excellent internet (3.18, 2.56, and 3.40 mean, respectively).
4.1.3 Finance/Accounting Function
The finance and accounting functions were 'agreed' (4.27 overall weighted mean score) to have been implemented by ADCO. Among the factors that fall within the description 'agree' are: ADCO made much revenue; has sufficient working capital; delays liabilities payment over time; Finance department give more flexibility with their customer's credit payments; and, financial managers are experienced and well trained.
4.1.4 Research and development Function
The research and development functional area had obtained over-all weighted mean of 3.58 that is interpreted as "agree". The factors that were assessed as "agree" are: Suppliers of raw materials and parts are provided in time; facilities, equipment, machinery,
Table 1. - Distribution of Mean Scores of ADCO Functional Areas
ADCOM Functional Areas Mean Description
Management 3.66 Agree
Marketing 3.83 Agree
Finance/Accounting 3.58 Agree
Research and development 3.58 Agree
Human Resource 3.75 Agree
Weighted Mean 3.68 Agree
and offices are in good condition; quality-control policies and procedures are standard; facilities, resources, and markets are strategically located; observes scheduling policy to control daily operation; and, ADCO has technological competencies. While factors that are assessed as neither agree nor disagree are: inventory-control policies and procedures are effective; uses latest technologies; workers qualification fit with machinery and technology; and, suppliers of raw materials, parts, and subassemblies reliable and reasonable.
4.1.5 Human Resource Function
Most of the respondents "agreed" that ADCO has generally implemented its HR functional areas as disclosed by overall weighted mean score of 3.75. Among those factors that were agreed are: ADCO recruits qualified employees; the job description is clear for each position; uses motivation policy for employees; provides training programs for employee; using reward and punishment policy; has retirement policy for their employees; and, employee turnover and absenteeism are low. Two factors were disclosed that respondents are 'strongly agree' in terms of ADCO paying fair compensations to their employees; and fairly giving its employees benefits. While, three factors of human resource area were rated as neither agree nor disagree. These are ADCO has fair performance evaluation for each employee; ensures the work environment is safe; and, is using the internal resource for recruitment.
4.2 Extent of Organizational Performance of ADCO
Generally, the extent of organizational performance of ADCO was found out to be generally executed based from the overall weighted mean score 3.86 which is interpreted as "agree" (Table 2).
ADCO was disclosed to have been achieving its goals in terms of being effective in its achievement of the overall stated goals and objectives (3.94). Its organizational performance in terms of quality has been implemented in particular in its identification and measuring the factors affecting its organization-
al performance and measuring its efficiency of its operations based on the computed weighted mean score 3.91 (agree). Its procedures has been implemented particularly on executing its information flow that is smooth and was assessed as agree or 3.70 mean score. While, implementing its structure was assessed as 3.88 mean score where all respondents 'agreed' that ADCO has built satisfaction between stakeholders and shareholders.
Table 2. - Distribution of Mean Scores of
Organizational Performance of ADCO
Organizational Performance of ADCO
Components/ Dimensions Mean Descri ption
Achieving Goals 3.94 Agree
Quality 3.91 Agree
Procedures 3.70 Agree
Structure 3.88 Agree
Weighted Mean 3.86 Agree
5. Significant relationship Between ADCO Functional Areas and ADCO Organizational Performance
There is a no significant relationship between ADCO functional areas and its organizational performance, since the computed p value is 0.38 and is greater than.05 level of significance. Therefore, the null hypothesis is accepted.
Gale [19] explained that operations management is the disciplinary field that focuses on managing all functions of the organizational operations. To have a control over the company's operations, the facility layout should be efficiently organized. Besides, the human capital should have a comfortable working environment within the organization. However, planning is a major role of managing the operations of the organization. Therefore, the planning should be efficient and effective. Furthermore, technology is an important factor for the success of operations. Meaning to say, the organization should have an efficient and competence technology with the organization in order to have a successful production system.
All of these pin-points are included in all functional and higher organizational performance, which would areas of the organization. This would lead to a better ensure the success of the organization.
Table 3. - Coefficient Correlation between ADCO Functional Area and Organizational Performance
ADCO Functional Areas Organizational Performance of ADCO
ADCO Functional Areas Pearson Correlation 1 0.134
Sig. (2-tailed) 0.38
N 45 45
Organizational Performance of ADCO Pearson Correlation 0.134 1
Sig. (2-tailed) 0.38
N 45 45
6. Conclusions
• The extent of functional areas of ADCO was generally assessed as "agree". These dimensions are: Management Audit, Marketing Audit, Finance/Accounting Audit, Research and Development Audit, and Human Resource Audit.
• The respondents disclosed that they 'agree' on the extent of implementing ADCO's organizational performance.
• The ADCO functional areas has no significant bearing toward implementing and attaining ADCO's organizational performance.
7. Recommendations
• Functional Areas: ADCO should improve some components of its functional areas to be able to obtain higher organizational performance. As an illustration, ADCO should match its structure with the culture of its employees in order to measure and obtain its goals and objectives. Moreover, ADCO must enhance its budgeting procedures to match the short-term and Long-term objectives along with their revenue and shareholders dividends. ADCO has to increase its training and development pro-
grams to ensure the compatibility and competence of their workers. Furthermore, the performance appraisal followed by ADCO must be reviewed and rearranged to match the requirements of measuring its employees' performance.
• Organizational Performance: it is very important for ADCO to make their mission statement attainable, and after they can change it to a further mission or target. Also, the procedures of ADCO must consider measuring their resources according to its cost in order to maintain a stable budgeting. Lastly, ADCO would increase its organizational performance with the assistance of increasing its satisfaction, loyalty, trust, and commitment within its structure.
• Significant Relationship between ADCO Functional Areas and Organizational Performance of ADCO: in order for ADCO to have high organizational performance, it must improve the efficiency and effectiveness of its functional areas. This is because all functional areas are dependent and interdependent to each other; this practice will ensure quality, enhance production and procedures, achieve goals, and sustain a healthy operations' system.
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