Importance of Communication in Decision Making In Oil Industry

Report On Importance of Communication in Decision Making In Oil Industry By: ABC Date: Table of Contents TOC \o "1-3" \h \z \u INTRODUCTION PAGEREF _Toc416703267 \h 3THE VALUE ADDITION THROUGH STRATEGIC DIRECTION, PLANNING PAGEREF _Toc416703268 \h 5AN APPLICATION OF BAYES’S THEOREM IN OIL INDUSTRY PAGEREF _Toc416703269 \h 6EFFECTIVE DECISION MAKING DURING DRILLING PAGEREF _Toc416703270 \h 7OIL INDUSTRY AND DECISION TREES PAGEREF _Toc416703271 \h 8POOL RISK IN OIL INDUSTRY PAGEREF _Toc416703272 \h 8INFLUENCE DIAGRAMS ARE NECESSARY IN FORMULATING UNCERTAIN DECISIONS IN OIL INDUSTRY PAGEREF _Toc416703273 \h 9RISK ANALYSIS METHOD IS BEST FOR UNCERTAIN DECISION-MAKING PAGEREF _Toc416703274 \h 10PROPER CRISES MANAGEMENT IS TOOL TO EXTRACT RIGHT DECISIONS PAGEREF _Toc416703275 \h 11PARTICIPATION IN DECISION MAKING IN ENDOWED WITH OIL INDUSTRY PAGEREF _Toc416703276 \h 11APPROACHES TO THE DECISION-MAKING PROCESS PAGEREF _Toc416703277 \h 12MULTIDISCIPLINARY WORK PROCESSES THROUGH DECISION-MAKING PAGEREF _Toc416703278 \h 13CREW RESOURCE MANAGEMENT (CRM) AND OIL INDUSTRY PAGEREF _Toc416703279 \h 13CONCLUSION PAGEREF _Toc416703280 \h 13REFERENCES: PAGEREF _Toc416703281 \h 15 INTRODUCTIONThe oil industry is not showing the communication integration towards the representation and data demonstration with regard to communication generally at all sectors but specifically at major level in oil industry. The oil and exploration is not a easy task and this task is very tempted with regard of oil industry where managers needs decision making and communication among the different oil digging groups at vast level. The complex business decision involves as it demonstrates by decision-making elements in detail. Generally, there is need of communication at biggest level for all industries indiscriminately but the latest and crucially it is needed at the oil industry CITATION Che11 \l 1033 (Chelst & Canbolat, 2011). According to many researchers and reports abstracts the learning revolves around the two types of decision making and oil industry showed that oil industry also endorse two types of decision making while exploring the oil through different methods. The oil Industry constitutes strategy table, hierarchical decision pyramid for abrupt decision making that is needed at the ground, and managers are responsible for the whole processing and communication in this oil industry. These two processes are finally integrated the influence diagram and diagram that was formulated by Stanford Research Institute for resolution of decision problems. The decision problems and communication halt is not new towards the whole decision making concept through proper communication. The oil industry is the best example that showed such ills frequently in ancient days of digging as well as in contemporary procedures of digging. Since the invention of influence diagram in decision making it is regarded as the best communication toll through completely decision making problems can encounter easily. Firstly petroleum industry utilizes this tool so that managers can help themselves by exploiting it for the sake of decision making in effective way. Further, the right and one can say justified decision making utilize the discourse analysis for the sake of decision-making and all goods attach with it. There are so many alternatives while thinking about the decision making but the decision making is coherent with the immediate activities finally formulate the decisional process more glaring with the syntheses of decision and ignoring of other decisions alternative due to more risky than selected one CITATION Che11 \l 1033 (Chelst & Canbolat, 2011). The organizational communication and its direct link with the effective decision-making, measuring all possible communication process generally but specifically with oil industry, are critical analysis of this industry is the important aspects that will discuss in this report. The communication with in this industry and industrial communication that may need to run at managerial perspective is not only demonstrates as best communication way but also glaring one in his contemporary one. The concept of Participation in decision-making (PDM) CITATION Mil08 \l 1033 (Miller, 2008) and a look of list application through different theories and conceptual framework to formulate such decisions is nicely adjusted with the abrupt decisions and decision approach in oil industry. The whole participation process that is going to show communication steps in developing the participation process in decision making through communication at industry level so that managers can make justified decisions in developing communication and communication gaps negation as well. There are many models discuss that decision making theories and procedural perspective towards oil industry is the beneficial but about in which paradigm such thing is more strengthening and weakening one CITATION Mil08 \l 1033 (Miller, 2008). The cognitive model discussion and whole process towards the decision making in strengthening relationship between human relations, human resources, systems, cultural and critical in producing decision at glance. CITATION Mil08 \l 1033 (Miller, 2008). Lastly the literature will discuss about the oil industry, and will demonstrate that how top management at oil digging department heads in oil exploration, project managers at communication mouth in oil digging platform and employees finally responsible for the oil digging use communication decision making package to reach at decision making in no time. CITATION Tom12 \l 1033 (Tom, 2012) THE VALUE ADDITION THROUGH STRATEGIC DIRECTION, PLANNINGThe oil industry and all organization directly and indirectly attach with this industry is now showing some dynamic nature approach to acquire data to accelerate their communication and data representation. The primary resource of information and its exploitation for further procedural sense indeed measure the real time data to acquire decisions and decision problems negation through this data. The source of information at oil companies is only two types the one style reading is the seismic readings and other type of source of information is the test drill holes. One can say upon the arguments gathered through secondary data source that in internet is that the whole data maximization and data representation is not an ideal approach to manage the oil exploration perception for further investigating the materialistic approach so that decision at exploration of oil can do with the abrupt and immediate decisions. CITATION Che11 \l 1033 (Chelst & Canbolat, 2011)For example, Anco Oil CITATION Che11 \l 1033 (Chelst & Canbolat, 2011) utilizes and finally buzzes the same readings for strategic decision-making that either the communication process through this tool upon which the whole decision either gets the actual nature. The inculcation of new technology in exploration of oil and exploitation of oil reserves show that enormous level of decision should take so that the decisional approach in obtaining revamp decision making can endorse the immediate and uncertain decisions in reality. The oil exploration and exploring natural resources as oil is the costly decision and this decision is very necessary to take by managers so that communication gaps can lower down and the whole maxim of decision making can give boost towards the profitability ratio. The afore-said oil exploration company always uses the decision tree while thinking about the uncertain decision and decisional process in developing the field wide strategy so that the decision of oil exploration can initiate with the effective communication channels on the field. CITATION Che11 \l 1033 (Chelst & Canbolat, 2011)AN APPLICATION OF BAYES’S THEOREM IN OIL INDUSTRYThe United State and its government are taking serious steps while representing the whole data in developing the new oil fields and the further exploration in exploring the old ones with the reference of the new technologies. The Bayes Theorem in oil industry is also using by many oil exploration companies so that the oil expectation can take the boost in reality and the cost reduction theory can be applied in terms of profitability-centered companies in U.S. CITATION Sol88 \l 1033 (Solow, 1988) The offshore oil resources and composite information about the oil exploration can be used in communication at manager level while the manager is going to take uncertain decisions in reality or at field that is beyond the decisions and decisional aspects. Oil and oil exploration fields are necessary in developing the best fields and these fields need justified communication channels at actual basis. The subjective information and information level judgment by using these models are necessary to sue this theorem and this theorem is glaring in whole industry and industry wide concept through the whole information and subjective information related towards in terms. Bayes’ Theorem suggests that the whole estimates are updated in terms of time, costs and exploration team through decision-making. The usefulness of approach in the oil industry is only to reduce prediction costs with minimum communication gaps already exist in the problem at field. CITATION Sol88 \l 1033 (Solow, 1988)EFFECTIVE DECISION MAKING DURING DRILLING The development of oil fields in the whole process and procedures already followed by the Oil industry need a revamped approach for the sake of different strategies and strategic approach in developing the reserves and exploitation fields in reality so that the probability of oil exploitation can increase. Oil Industry is using the effective decision-making process and procedural problems for the abrupt decision making indeed. As the matter of fact, procedures in drilling the oil is costly, timely as well as uncertainly decision that should be developed so that oil fields can get access in reality and through communication, goods undertake in the decision. Such decision acquire information about the historical data in developing these oil fields and after the development the new and revamped approach in exploring the natural phenomenon through technological tools and thinking is not a easy task unless or until it acquires the more than basic level investigation in development and exploitation of oil fields. CITATION Bra09 \l 1033 (Bratvold, Rajaieyamchee, & Willigers, 2009)The key performance indicator is a need of contemporary side when the immediate decision-making is at confronted agenda in uncertain time. The communication through the proper channel about these role identification process is effective one in developing the plan that about which process in necessary in what prospect and what is need of our. The budgeted expenses in oil industry without the practical exposures always outstrips when the practicalities measures over there. Almost all data under the supervision of data initiators or managers, the whole processes and dynamic nature procedures in decision making in fields is actually provide a need to use undocumented action more than documented one. CITATION Bra09 \l 1033 (Bratvold, Rajaieyamchee, & Willigers, 2009)OIL INDUSTRY AND DECISION TREESThe decision Trees has been using in oil industry and oil industry is only the first user that has been exploiting this approach for the sake of information and lowering the communication gap indeed. The oil industry and industrial approach in decisional methods is the best-formulated methods and the oil industry is the first users of this approach in communication on the field and off the field. There is risk along with the decisions and decisions need revamped structure towards the decision-making mechanism. The oil industry and decisional approach towards the oil industry and its uncertainties are there for the sake of approaching decisions and these decisional dynamics indeed. Although from drilling to final selling of oil in international market always constitute approach that may hinder the concept of decision and these decisional concepts requires to rethink about the decisional uncertainties CITATION Che11 \l 1033 (Chelst & Canbolat, 2011) so that communication can be effective more than as it is already. Historically speaking that these decision trees has been using by Shell, Amoco, Philips Petroleum and shell as well to evaluate the alternatives while communicating about the decision making and decision alternatives upon more or less risky paradigm. The best alternative should be taken so that all uncertain decision can meet the ground realities as it is decided by the field management. CITATION Che11 \l 1033 (Chelst & Canbolat, 2011)POOL RISK IN OIL INDUSTRY The risk at industrial level in all fields is not new towards all types of businesses and business operations but specifically it is very relevant when the communication at decision-making is at confronted platform. The risk pool and absorb risk in oil industry is best methodologies that the maximum try to lower the risk can initiate with foresee approach in futuristic paradigm. The risks in oil industry cannot lower, cannot eliminate and cannot transferred but the absorption techniques in oil industry is best one to choose with all reference an elements in communication. The financial margin in oil industry is much higher than other venture-centered activities CITATION Che11 \l 1033 (Chelst & Canbolat, 2011). The investment and one can say such a huge investment at this level is not an easy task to cover unless or until the communication and generation of risk pool cannot benefited at all. Therefore, risk pool creation and risk absorption creation concept in oil industry is now utilizing the joint ventures, partnership and other amalgamation of risk factors through abrogation of techniques indeed generally necessary in all business types and business operation but it is specifically need in oil industry. CITATION Che11 \l 1033 (Chelst & Canbolat, 2011)INFLUENCE DIAGRAMS ARE NECESSARY IN FORMULATING UNCERTAIN DECISIONS IN OIL INDUSTRY There are many studies initiated to give go ahead to all decisions that are necessary in taken for the abrupt decision-making or one can say in operation decision making. This theoretical approach actually endorse by many scholars generally but “R. Bratvold, M. Rajaieyamchee and B.J.A. Willigers discuss how influence diagrams can support operational decision making” endorses it essentially. The decision and decision-making process are involved in operations in oil industry in getting the maximum attachment towards the influence diagrams and its integration towards access the real maxim behind such decisions. The study proposed communication and decision making centralized thinking with the inculcation of updated technology in this field CITATION Bra09 \l 1033 (Bratvold, Rajaieyamchee, & Willigers, 2009). The Integrated Operations means IO is the concept or theory that actually fit with the oil industry because IO always contribute such decision making that would create some sophisticated operations, techniques, tools consideration while formulating decision through communication. Such communication level and further depth in thinking paradigm that may articulate the decisional approach so that the whole need conspectus can generates. CITATION Bra09 \l 1033 (Bratvold, Rajaieyamchee, & Willigers, 2009)The other theoretical conceptual framework that is very glaring and beneficial for the oil industry and its decision-making is the data management. As the matter of fact, technology is consistently improving and oil industry is endorsing such up gradation at data management perspective. The data management technique that has been exploring in contemporary world so speedily that the other aspects in communication and decision-making at this industry almost ignored if the over optimistic feelings can be shared. The man power in ancient oil industry and man powered systems in today world is two sides of the same coin but the today technology enriched oil industry is more beneficial in developing profitable business. Although Data management and data management activities require some skilled labor but the decision making in oil industry over strips the importance. CITATION Bra09 \l 1033 (Bratvold, Rajaieyamchee, & Willigers, 2009)The third type of theoretical framework that had shared by these scholars is the comparison between afore-said influence diagrams and decision trees. The best formulation of strategy against the challenges facing by the oil industry is also endorsing the both influence diagrams and decision trees as well. The decision tree is another approach for which the whole concept was generated by the influence under the pressure of these techniques as discussed above. CITATION Bra09 \l 1033 (Bratvold, Rajaieyamchee, & Willigers, 2009)RISK ANALYSIS METHOD IS BEST FOR UNCERTAIN DECISION-MAKINGThe tool of communication is also regarding as the analyses of risk and risk assessment techniques for the sake of development and mechanism creation in the halted process with in oil industry. This analysis and argumentative communication between different idea developers in Oil industry and these developers are ultimate responsible for success in getting oil in sufficient profitability. In this method, the whole oil exploration and uncertain decision-making CITATION FLI96 \l 1033 (FLIN, SLAVEN, & STEWART, 1996) drives the effectiveness and most feasible methods by analysis of risk rather than profit-centered mindset at top management is beneficial. This whole analysis is reality form of influence diagram algorithms that is clearly presented over here. CITATION Liu06 \l 1033 (Liu, Yu, & Bai, 2006)PROPER CRISES MANAGEMENT IS TOOL TO EXTRACT RIGHT DECISIONS Crises management is the best communication tool that is necessary in developing such decision-making methods that may endorse the top management role in further examination of internal process in oil exploration. There is ultimate the labor involve deposit the major continuation of technology in this industry and this industry should at least show some relaxed behavior towards the attitude of its employees and employee relation methods indeed. CITATION Coo12 \l 1033 (Coombs & Holladay, 2012) The whole industry is bind towards the usage of crises management in each process and how effectively it is influencing upon the employees in terms of crises management is depend upon how effective decision has been taken against such initiative and important decision indeed. CITATION Coo12 \l 1033 (Coombs & Holladay, 2012)PARTICIPATION IN DECISION MAKING IN ENDOWED WITH OIL INDUSTRY According to Coch and French in 1948, the decision-making process in oil industry is most relevant with the oil industry above all other industries because of the most uncertain decision-making in terms of profitability mindset at all organizational level and company approach. There are two types of model are very familiar with the needs of oil industry, the one type of model is affective model and other type of decisional mode is cognitive model. CITATION Bak06 \l 1033 (Bakir, 2006) In the Effective model of decision-making, the participative decision-making is responsible for satisfaction of Higher-Order Needs and its linkage with the wor4k satisfaction along with the relationship of motivation and ultimately is he productivity to get the maximum attention of mass towards the industry decisions make by process identification individuals and tops management. CITATION Mil08 \l 1033 (Miller, 2008)The Cognitive model of decision is although a school of thoughts and many scholars think about the cognitive model, and its side-by-side approach. The towards the Upward information flow along with the same paced downward information flow and its ultimate and equilibrium between these two information types leads towards the productivity and finally the satisfaction will boast in no time in oil industry. CITATION Mil08 \l 1033 (Miller, 2008)APPROACHES TO THE DECISION-MAKING PROCESSThere are almost six approaches at all industries level but the most important are given here that is relevant with the oil industry. The human relations approach of decision-making is best approach and this approach achieve the maximum motivation towards conceptual framework. The other human resources approach in decision-making is also constitutes important and relevance in communication in decision-making process in this industry. CITATION Mil08 \l 1033 (Miller, 2008) The advance and more profitable in oil industry is critical approach towards the decision making process because industry constitutes most of uncertain decision without clear goal about finding of oil or not. The other approaches towards the decision making process are classical, human relations, human resources, systems, cultural and Critical approach for the sake of perfect decision-making and decisional approach in this industry. CITATION Mil08 \l 1033 (Miller, 2008)MULTIDISCIPLINARY WORK PROCESSES THROUGH DECISION-MAKING Oil industry endorses that there are six elements in defining the decision making process for the immediate decisional approach. The clear targets is the first elements uses by the op management following by the adequate resources, reliable information, training of staff, regular feedback about oil exploration and technical support required with updated machinery at fields are some key elements in decisional approach and decson0making in oil industry at management perspective. CITATION Tom12 \l 1033 (Tom, 2012)CREW RESOURCE MANAGEMENT (CRM) AND OIL INDUSTRYThis CRM approach in oil industry is directly related with the teams establish at the field that is being used for the oil exploration and exploring of other natural resources for the good of humanity. CITATION Cri05 \l 1033 (Crichtonn, Lauchen, & Flin, 2005) The offshore teams that are directly involve in immediate and time bounded decision-making uses this techniques so that the effective and timely decision can came out under reckless circumstances. CITATION Mea01 \l 1033 (Mearnsa, Flin, & O'Connora, 2001) CRM training is best in emergence response from the oil industry and industrial approach indeed. The range of tasks along with productivity mindset endorses the use of CRM. CITATION Fli97 \l 1033 (Flin, 1997)CONCLUSIONThe above composite material about the importance of communication in decision-making and one can say the most uncertain decision-making in oil industry because it involved for all those activities in industry that constitute not defined role rather the industry provided such decision making that is effective in decision making or employee activities or not. The articulated work for the communication in decision making in all types of communication level and management level in terms of these activities showed that the activity and activity level through communication could find the resolutions of issues facing by decision-making in implementing the decision-making models as given here in this text clearly. REFERENCES: BIBLIOGRAPHY \l 1033 Bakir, V. (2006). Policy Agenda Setting and Risk Communication Greenpeace, Shell, and Issues of Trust. The International Journal of Press/Politics , 11, 67-88. Bratvold, R., Rajaieyamchee, M., & Willigers, B. (2009). The right decision. Retrieved April 13, 2015, from http://www.europeanoilandgas.co.uk/article-page.php?contentid=9043&issueid=290 Chelst, K., & Canbolat, Y. B. (2011). Value-Added Decision Making for Managers. CRC Press. Coombs, W. T., & Holladay, S. J. (2012). The Handbook of Crisis Communication. John Wiley & Sons,. Crichtonn, M. T., Lauchen, K., & Flin, R. (2005). Incident Command Skills in the Management of an Oil Industry Drilling Incident: a Case Study. JOURNAL OF CONTINGENCIES AND CRISIS MANAGEMENT , 13. Flin, R. H. (1997). Crew resource management for teams in the offshore oil industry. Team Performance Management , 3 (2), 121-127. FLIN, R., SLAVEN, G., & STEWART, K. (1996). Emergency Decision Making in the Offshore Oil and Gas Industry. The Journal of the Human Factors and Ergonomics Society , 38, 262-277. Liu, J., Yu, Y., & Bai, Y. (2006). Risk Analysis for Oil and Gas Exploration Project. Retrieved April 13, 2015, from http://ieeexplore.ieee.org/xpl/articleDetails.jsp?arnumber=4052830 Mearnsa, K., Flin, R., & O'Connora, P. (2001). Sharing 'worlds of risk'; improving communication with crew resource management. Journal of Risk Research , 4 (4). Miller, K. (2008). Organizational Communication: Approaches and Processes. Cengage Learning. Solow, A. R. (1988). On Assessing Dry Probabilities in Offshore Oil and Gas Exploration: An Application of Bayes’s Theorem. Quantitative Analysis of Mineral and Energy Resources NATO ASI Series , 223, 187-198. Tom, R. (2012). Integrated Operations in the Oil and Gas Industry: Sustainability and Capability Development: Sustainability and Capability Development. IGI Global.

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