Internship in the Bahrain Petroleum Company - Essay Example

Internship Final Report – BAPCO al Affiliation) Table of Contents Table of Contents 2 Introduction 3 Organizationbackground 3 Company Information 3 Organizations’ Key products 4 Organizations’ Key services 5 Major Competitors 5 Management & Leadership Styles 6 Corporate Culture 7 Internship Work plan 8 Chart 1: time in different departments 9 Chart 2: time for different activities 10 Details of the internship experience 12 Two Major work assignments 12 Two problems/challenges 13 SWOT Analysis 13 Recommendations for improvements 14 CONCLUSION 14 References 16 Introduction Internship plays a pivotal role in sharpening the knowledge and experience of a student. During my stay at the university, the indulgence in internship did not only assist me in the aforementioned ways, but it also enabled me to put into practice the theoretical components of my learning process. Therefore, I concur with the argument that through internship, students acquire the technical knowledge to handle matters pertaining to their fields of study. As such, my internship revolved around The Bahrain Petroleum Company (BAPCO), with more specificity being in the company’s department of financial accounting in which am currently working. This paper will give a detailed personal reflection of my experiences working for the giant oil company, and analyze the main factors that influence the organizational operations within this company. Furthermore, my analysis will delve deeper to scrutinize the organizational frameworks through giving an in depth examination of the internal environment of the company. What’s more, I will underscore the values I attained at the company through analyzing the outcomes of my internship program. Organization background Company Information Founded in 1929, Bahrain Petroleum Company (BAPCO) is a unique company that has undergone several transformations over the years that mark its existence (Bapco.net, 2015). Consequently, the private sector company boasts of being the pioneer oil discoverer in the Arabian Peninsula, with the exportation and refinement of this commodity beginning a decade after the inception of the company. Moreover, Bahrain Petroleum Company (BAPCO) is central in shaping the Bahraini wealth-generation pattern and in the development of the country’s work force. Bahrain Petroleum Company (BAPCO) has a wide employee base that consists mainly of native citizens. Though it is wholly owned by the government of Bahrain, Bahrain Petroleum Company, (BAPCO) does not only indulge in the production of oil. The primary operation of the company is the exploration of petroleum, with the massive technological investments geared towards improving the production of petroleum. Consequently, the company invests also in the research and development of oil reserves and the practices that enhance the safety of petroleum production in the country. Organizations’ Key products In addition to exploration, Bahrain Petroleum Company (BAPCO) is a leading global oil refinery that refines nearly 260,000 barrels of crude petroleum in a day. In line with this, the company has widened its operations to other international markets, with diversification into other countries such as Saudi Arabia (Bapco.net, 2015). While at it, Bahrain Petroleum Company (BAPCO) offers storage for oil through the numerous tankers that the company possesses in numerous sites. For instance, the Wharf is the company’s main storage with numerous tankers where the company undertakes exportation of the petroleum products. In addition, the company also deals in marketing. Being amongst the global leading exporters of petroleum products, Bahrain Petroleum Company (BAPCO) has a marketing terminal SITRA. Besides, the company supplies petroleum products to the country’s main airport amidst the provision of renewable gas in several industries across the country. The company, moreover, has a vibrant sales department that aims at providing constant supply of gas to the main consumers of this product. Moreover, the natural gas products of the company attain the globally accepted standards. This is evidenced through the Gas Distribution Network (GDN) that the company, which is tasked with maintaining, servicing and managing the distribution of gas within the country. Organizations’ Key services The company is a core contributor to the welfare of the society. Primarily, the company is sensitive to its corporate social responsibility. Therefore, it has initiated numerous projects that highlight its wholesome involvement in social well-being. For instance, the AWALI Hospital, AIDar Hotel and the Princess Sabeeka Park all offer services to the community. Besides, these establishments, constituted by the Bahrain Petroleum Company (BAPCO), give employment opportunities to the community. Through this, the company illustrates its commitment to accounting for the ethical requirements of the business. Nevertheless, Bahrain Petroleum Company (BAPCO) undertakes training and development of talent within the country. From the analysis, nearly 80% of the 2,600 employees are Bahraini by nationality. To maintain the trend, the company allocates adequate resources to the training of the young talents within the country (Bapco.net, 2015). The training and development, moreover, envisages a scholarship program for promising yet under privileged children. Nonetheless, it stretches to envision equipping the society with important skills on protecting and conserving the environment in line with the global Environment Health and Safety (EHS) standards. Major Competitors Undoubtedly, Bahrain is mainly dependent on the revenues earned through oil exports. The efforts to diversify have not been successful, as competition remains high in this lucrative industry (Bapco.net, 2015). Therefore, BAPCO encounters stiff competition from other large multinational companies such as the Bahrain National Gas Company (BANAGAS), which is the second largest market shareholder. Other formidable competitor includes Gulf Petrochemical Industries Company (GPIC), all regulated by the National Oil & Gas Authority (NOGA). Management & Leadership Styles BAPCO adopts a modern leadership structure characterized by transformation and democracy. In detail, the democratic type of leadership has been proven the most effective in improving the productivity of both local and multinational companies. Under this management structure, the input of all the relevant stakeholders is taken into account during the decision-making process. However, the guidance of the organization depends largely on the input of the senior management in conjunction with the middle managers who lead the departments. In the process of decision-making, the options are aired on the discussion table before a thorough and lengthy scrutiny of the impact of each option at the disposal of the decision-making committee. Despite the existence of varying views, the organization settles on the implementation of a decision that propagates positive influence in the organization. As such, the management encourages stakeholder participation in the decision-making process. Amidst the existence of democracy, the company has a clearly defined set of rules that govern the policies, standards, and procedures of operation within the company. On the other hand, the management adopts a transformational operational system. The challenges presented by the volatile oil prices, coupled with the increasing global competition, obligates the company to encounter several changes in the operation. Through transformational leadership, the company manages to remain competitive within the local and international markets, which are characterized by efficiency and sustainable growth. Judging from my analysis, the management at BAPCO is pivotal in building the individual capabilities, as during my internship I recall frequent contribution in the decision making process through the platforms presented by the company. The participation of employees within the company is common within the company. Along my internship, my department invited me to attend a safety meeting in which the attendees contributed their varying opinions on the possible ways upon which safety could be heightened within the company. This was complemented by the surveys that aimed at capturing the perceptions and reactions of the employees towards the adoption of a new brand image. The management style, therefore, roots for more inclusivity by constructing frameworks that reflect the composition of the workforce. The emphasis on inclusivity goes a long way in improving the innovation within the company and ensuring better organizational culture in line with harmony in the workplace. Through the management, the company has successfully retained the largest numbers of employees. BAPCO, therefore, continues to lead in the incubation of innovative ideas. Corporate Culture Trust, cooperation, and respect constitute the basic tenets of the corporate culture within the BAPCO working environment. Cooperation, nonetheless, is vital within the company as I noticed that the employees sacrifice their efforts towards assisting others. Perhaps, through cooperation, the company has managed to construct formidable departments that operate to the benefit of the stakeholders. What’s more, the cooperation has been the bedrock of the company’s corporate culture. Furthermore, cooperation is practiced by the operations of the company in corporate social responsibility, which aims at ensuring coordination with the community. The employees also share their knowledge within the departments, hence enabling easy and efficient flow of information across departments. Deeply entrenched within this culture is trust. The employees show exceeding faith in the decisions made by the top managers. Besides, the democratic nature of the organization presents an ample environment for the employees to express their views. This freedom explains the high levels of trust within the company. More to the point, the employees attach importance to observing safety while within the workplace. The safety levels attached by the employees illustrate the high level of trust that is entrenched within BAPCO’s corporate culture. Considering the fact that BAPCO is an organization that operates in multiple international markets, I learnt that respect forms a fundamental part of the culture among employees. Respect is depicted through the acknowledgment of the varying ideas presented by the employees. In addition, the employees exhibit respect through the strict adherence to the code of conduct that stipulates the responsibilities of each stakeholder within the company. Internship Work plan Primarily, I have been working at the Financial Accounting Department, though I have operated in different sections of this department. During the early stages, I worked at the Credit Control Section. After the temporary stay in this department, I moved to the Cash and Banking Section, under which I was posted to the Treasury unit. Chart 1: time in different departments Department Number of Hours Learning & Development Center 3 Financial Accounting Dep. Credit Control (Receivables) 14 Financial Accounting Dep. Treasury 183 Corporate Social Responsibility 3 The chart above illustrates a summary of my internship operations according to the department. As depicted, the three hours spent in the learning and development center are a reflection of the orientation given to the new employees within the company. The time spent illustrates the dedication of the company towards equipping the employees with the much-needed conversance to the organization. The 14 hours I spent at the Credit Control Unit of the Financial Accounting Department depict the brief period I spent while transitioning into the Treasury Unit. At the treasury unit, I spent 143 hours, with my largest share of experience from the internship accredited to this unit. Furthermore, I spent 3 hours at the Bahrain International Circuit, a measure by the company to assert its indulgence in Corporate Social Responsibility. Chart 2: time for different activities Activity Hours Oracle System and internal communication system 6 BAPCO Seminar on work safety titled “Safety Comes First” 3 EHS Week 2015 Event 3 Processing SADEEM CARDS SEP 2015 11 Archiving Financial documents 24 Verifying Weekly Credit Card Transaction 6 Generating JV’s (Journal Vouchers) 38 Recording daily Miscellaneous Receipts 20 Preparing deposit slips 12 Handling daily Bank Statements 9 Posting bank transfer into oracle system 19 Recording daily expenses 24 Technical skills related to the use of Xerox printing & scanning system. 1 Processing e-Government Authority- e-Tender Fees Collection 9 Generating Bank Reconciliation Statement 53 Reconciling Credit Card Transaction for BAPCO CLUB & AWALI HOSPITAL 5 Processing standard receivables for various customers 12 Updating the exchange rates sheet of various currencies 4 Communicating with external parties 3 Collecting November payment request documents 1 Resolving about 50% of the outstanding amounts occurred in NBB’s OCT Reconciliation. 27 Verifying Credit Card Payables 8 Creating a Spreadsheet 1 Updating financial accounting department managers 2 Communicating with internal departments 6 Based on the chart above, I spent the largest portion of my time (190 hours) in undertaking operational tasks. This indication is pivotal in explaining the operational experience I gained through my internship program at BAPCO. In addition, it highlights that most of the time I spent were aimed t equipping me with the ability to understand the basic concepts of the manner in which the company operates. Besides, the chart depicts a company that delegates the technical tasks to the more experienced employee fraternity. This drives my analysis to the technical tasks I undertook while undergoing the internship. Evidently, the technical tasks required me to acquire the practical concepts that govern the operation of the company. During the seven hours, I acquired technical ability to analyze the internal communication of the company and the techniques surrounding the scanning system used in the organization. The technical skills, moreover, go a long way in depicting the company’s investment in training and development of talent. The social activities are an indication of the acquaintance I acquired on the need for learning about the corporate culture that governs the operations of the company. Through the social activities, I was able to derive the corporate culture and relate the events to the employee motivation strategies employed by the company. Details of the internship experience Two Major work assignments a. Generated JV’s (Journal Vouchers) for BAPCO CLUB & AWALI HOSPITAL credit card transactions for the month of SEP 2015 using Oracle System I undertook this task through the assistance of a co-worker in my department. Through the process explained to me by the colleague, I managed to undertake the process, and enjoyed the entire procedure. During the operation, I devised a chart that helped me in undertaking the process. The procedure followed a detailed listing of the chronological steps that had to be fulfilled before attaining the requisite result. b. Generated (21) Bank Reconciliation Statement Using the Oracle application, I had to spend 39 hours in completing this reconciliation process. Through this experience, I learnt that BAPCO’s operations mainly revolved around NBB judging from the amount of time the reconciliation consumed. On the other hand, the BNP Paribas had the least amount of transactions, hence making its reconciliation less strenuous. In addition, the reconciliation process included the AUB, which had four accounts. Two problems/challenges To begin with, I encountered challenges in the first task accruing from the combined nature of the credit advice for the BAPCO Club and the Awali Hospital. Consequently, the combination of the figures in a single credit advice meant that I was to undertake a physical and manual check on the figures. Besides, I had to undertake a detailed calculation involving the figures in a bid to countercheck the accuracy of the amounts quoted on the statements of the customer accounts. The second challenge I encountered was in the problem of omission that led to failures in balancing the emergent figures. Consequently, the error of omission obligated the bank account balances to dispose the disparities with the balances per bank statements. Therefore, this problem utilized my knowledge about auditing in which I remembered that the voluminous nature of the data could have instigated the misinterpretation of data. SWOT Analysis Strengths The departmental division into units increases the efficiency of the Financial Accounting department. The application of advanced technology such as Oracle enables speedy processing of documents and expedition of the processes of accounting, hence improving customer satisfaction. Weaknesses The leadership does not observe adequate authority in dictating the flow of information. Besides, the company does not exhibit full utilization of the technological advancements at their disposal. The manual processing of the invoices leads to slow updates hence contributing to customer dissatisfaction. Opportunities The department should invest in the recent technological advancements that enable them to acquire electronic alerts upon the due date of invoices. This, together with electronic storage of documents would help in building the positive imagery of the company. Threats The increased freedom and lack of authority may expose the company’s privacy; hence destroy the corporate culture of trust. The traditional methods of storing information lead to slow efficiency and heighten the possible risk of losing documents and important information. Recommendations for improvements A) Operational change The company should invest more in the development of digital technologies. Furthermore, it should employ technology in eliminating the strenuous procedures embedded in the production process. B). organizational change Primarily, the company should invest more in organizational learning to welcome the changes that come with the proposed developments. Furthermore, the managers should step up their authority to ensure that the privacy of the organization is not put at stake. CONCLUSION With the completion of the internship program, I have successfully managed to acquire the ability to compare and link the theoretical concepts learnt in class to the happenings of the employment environment. Judging from my analysis, I have exhibited strong interest in managerial accounting than in auditing. I hope that this internship has been the starting point of my budding career in managerial accounting. Besides, I would recommend the extension of the internship program for a period not less than three months in order to give the students more experience. Besides, I recommend the frequent monitoring of the interns by the supervisors at the workstations. In conclusion, I recommend the application of internship performance in the job evaluation of a person seeking employment. References Bapco.net. (2015). Our Company. Retrieved 4 December 2015, from http://www.bapco.net/en-us/about-bapco/our-company Read More