Management Principles And Their Importance In BP’s Success

Task 1

Task 1 – (This will form your introduction)

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You are required to select an organisation of your choice. (The only requirement is this organisation has to have a website).
 
a) Introduce your organisation and provide a short description of what it is.

b) The principles of management e.g., (remuneration, authority, order, discipline, division of work etc.) continually pose challenges for managers. Describe any two of the principles of management?

Task 2 – (You are now expected to build a profile of your organisation)

Your editor enjoyed your opening to (task 1) and thinks your organisation could make an interesting article. He wants you to explain the organisation in more detail.
    
a) Describe the organisations (size, structure and key operations).

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b) Outline the organisations key strategic objectives (i.e. goals & targets) and explain how they plan to use the 4 functions of management (planning, organising, leading and controlling) to achieve them.

Task 3 – (This question evaluates the importance of culture)

You have been debating with your line-manager about the importance of culture to an organisation. He argued that,

“Management culture is of no importance and has no influence on the success of the organisation!”

You disagree! Using the organisation you selected for task 1 write a reply to your line manager. Focus your reply on two key questions:

a) Describe the importance of management culture to an organisation.

b) How does culture impact the success of your chosen organisation?    

Task 4 – (Business planning & operations)

Your editor is impressed with your work. He wants you to write a short paragraph on the importance of planning and operations to an organisation. Using the organisation you chose in (task 1), write a paragraph answering the following questions:

a) Identify the key reasons why line-managers engage in the process of planning.

b) Describe the steps taken in analysing the external environment of an organisation.

Task 5 – (Communication)

Oh no! There has been a huge argument and your editor is no longer speaking to a senior member of staff from a different department. They are expected to have a close working relationship but effective lines of communication have broken down. As he is your senior, you do not feel you can raise the importance of this to him. You feel it would make a good article so you decide to write a brief note on the importance of effective communication between managers with different responsibilities. Your article must discuss the two following questions:

a) Explain the consequences of a breakdown in communication to an organisation.

b) Identify any two techniques/technologies (e.g. corporate instant messaging systems, intranet, team briefings) and explain how they could be used to prevent and overcome breakdowns in communication.

Task 6 – (This will form your conclusion)

This application process has been competitive. Your manager gives you the good news; you have made the final 2. He has asked you both to:

a) Explain 3 of the key learnings from the tasks undertaken.

Task 2

For this assignment, I have chosen British Petroleum as it is one of the premier oil and gas companies in the world. Also known as BP, it is one of the leading producers of oil and gas in different global locations. BP is headquartered in London and is a global leader in terms of market capitalization and revenue.

Two of the principles of management have been considered and they are division of work and authority. Division of work is the distribution of work among the employees based on their knowledge and skills. It increases the productivity and promotes the efficiency of the existing workforce (Shafritz, Ott and Jang 2015). In addition, the speed and accuracy are also enhanced by this procedure and is beneficial for the managers. Authority is the process by which the managers give out orders to the employees of an organization to get the work done. It gives the right to the managers along with the responsibility to complete the designated work to the team in the given time (Williams 2013).

BP ranks as the fifth largest revenue earner and sixth largest market capitalization globally in the oil and gas market. It operates in more than 70 countries worldwide and has the capacity to produce about 3.3 million barrels of oil per day. The company has about 17,200 service stations globally and the total number of employees is about 79,800. The company has Bob Dudley as the CEO, Rupert Bondy as the general counsel and Brian Gilvary as the CFO. The organizational structure includes the top management officials like the executive vice president, director of human resources and chief operating officers for various locations. Chairman of the company is Carl Henric Svanberg and the areas of key operations are petroleum, motor fuels, natural gas, petrochemicals and aviation fuels. The prime business segments of the organization are oil and natural gas, oil marketing and refining and low and alternative carbon energy (bp.com, 2016).

The key strategic objective of the company is the creation of value for the investors and provides benefits for the societies and communities where it operates. The company pursues its strategies by employing the distinctive capabilities, managing the quality portfolio and setting of clear priorities. The four functions of management like planning, organizing, leading and controlling are used by the organization for pursuing and achieving the key strategic objectives. The company plans to run compliant, reliable and safe operations as working on oil fields is a hazardous job. Therefore, planning is very essential prior to commencement (Li, Zhu and Lu 2014). The company organizes the available resources for delivering projects and competitive execution with disciplined financial choices. Leadership abilities of the company get reflected in its upstream and downstream businesses in the form of continuous improvement (Matejek and Gössling 2014). Controlling the resources for the development of high-performance and energy efficient products for its customers is another aspect of the company. Therefore, all these management functions are blended by the organization for pursuing and achieving its key strategic objectives.

Task 3

Dear Sir,

In response to the debate we had regarding management culture, I would like to present to you the importance of management culture in an organization. Management culture decides the interaction of the employees at the workplace. A healthy management culture motivates the employees to stay loyal and this contributes towards the success of the organization. Management culture promotes healthy competition in the organization and the employees try their best to outperform their colleagues for earning appreciation and recognition from the organization (Alvesson 2012). Management culture lays down certain predefined policies guiding the employees and provides them with a sense of direction in workplace. Employees become confident about their responsibilities and roles and acquire complete knowledge about the importance of deadlines. Employees from various backgrounds get united due to management  cultures. Therefore, it is evident that management culture is crucial for the success of an organization (Alvesson and Sveningsson 2015).

The management culture of BP is based on maximizing investments, engineering firsts and scientific breakthroughs. This assures that fact that BP values the perspective of every employee and this gives an opportunity to make an impact in the organization. The management culture of BP promotes a culture of respect and openness where the ideas and expertise of the employees are valued. This motivates them to stay loyal to the organization and perform better. The employees are treated with the genuine consideration that motivates them to bring out their best in their efforts and builds the foundation for a healthy competition. The employees are provided a range of benefits and their differences are celebrated that makes them confident about their roles and responsibilities and keeps them united (C. Valvi and C. Fragkos 2013). Sir, I believe this will help you to understand the success secret of BP and the importance of management culture in the success of an organization.

Line managers play an important role in building up the engagement and spirit of a team because they affect the self-belief, focus and atmosphere of the team. It is important to engage the line managers in the process of planning as they set the priorities, objectives and aims of their respective work area and further communicate this to their team members. It is essential to plan the work of the individual team members on a daily or weekly basis or even on a broader scale of monthly or yearly objectives. Since the line managers are directly involved with the individual team members, therefore they have to be engaged with the process of planning depending upon their level of responsibilities (Alfes et al. 2013). It is important to deploy the available resources to achieve the objectives of the organization and this requires strategic planning. Line managers can be beneficial in this regard as they are responsible for maneuvering the members of a team and an effective plan can be designed with their contribution and assistance.

Task 4

The external environment of an organization can be analyzed using the tools PESTLE analysis, Porter’s Five Forces and VRIO framework. The external environment analysis of BP consists of threats, opportunities, international competition and competitor analysis. From the PESTLE analysis of BP, the political, economic, legal, technological, social and environmental factors are thoroughly analyzed based on the individual demographics of its operations (Veil, Sellnow and Wickline 2013). In addition, the potential entrants, buyers, suppliers, threat of substitutes and competitive rivalry are the five external factors that are analyzed to assess the external environment in BP. Analyzing the external environment can help to strengthen the financial resources and manage the accidental hazards of the organization. Following the results of the analysis can help to reduce the environmental risks, reduce the pollution and help to prosper BP as the global leader in the oil and gas sector.

Communication is the process of understanding and passing over of information. By communication, information is made productive, change is made effective and behavior is modified for achieving the goals of the organization. There can be several reasons for the breakdown of communication between managers with different responsibilities in an organization and the consequences are often found to be degrading. Communication is a veritable tool for the maintenance of effective relationship in an organization and without it, the organization will not be able to achieve its goals. The plans get chartered and quarrel develops between the employees from different departments. A violent environment is created where peaceful decision making becomes difficult and this disorganizes the employee performance. Other common consequences of communication breakdown are rumors, employee slander, incomplete information, misinterpretation and misinformation (Coombs 2014). Staff morale starts lowering and conflicts become regular with the productive environment getting damaged. Therefore, communication is very much essential to maintain the harmony in an organization.

Effective communication is important for management of a business and corporate instant messaging is a technology that can help to build up effective communication among the employees of an organization. It is a good medium for group chat where employees can share their views on a particular subject. It helps to connect the team members who are in off-site locations and stay updated with the reports. It serves to save space and money as it can be considered as an alternative to telephone calls and emails (Digate et al. 2013). Team briefing is another effective technique to prevent and overcome breakdowns in communication. Team briefings help to bring the managers from different departments face to face for delivering information, collect feedback and ask questions. Team briefing is highly efficient in enabling the communication sideways, downwards and upwards in an organization. Face to face communication between the managers and their teams helps in the effective and efficient operation of an organization. Therefore, these are the two techniques by which communication can be maintained without any barriers.

The key learning from the tasks undertaken in this assignment can be explained as the importance of culture in an organization, business planning and operations and importance of communication from the perspectives of an eminent organization like BP. It was understood that management culture is a source of competitive advantage as it helps the employees to understand the behaviors that are appropriate in an organization. The operations and business plan help to understand the responsibility structure of the managers in an organization. Analysis of the external environment helps to identify the potential business opportunities and threats that exist in various operational locations. Strategic execution of the business plans helps an organization to build up an effective business. Effective communication is important for the managers for performing the basic managerial functions. Various techniques and technologies can help to develop effective communication in an organization. These learning can be effective in delivering the services of a business editor as it gives a detailed summary of the various business operations and the related issues.

References

Alfes, K., Truss, C., Soane, E.C., Rees, C. and Gatenby, M., 2013. The relationship between line manager behavior, perceived HRM practices, and individual performance: Examining the mediating role of engagement. Human resource management, 52(6), pp.839-859.

Alvesson, M. and Sveningsson, S., 2015. Changing organizational culture: Cultural change work in progress. Routledge.

Alvesson, M., 2012. Understanding organizational culture. Sage.

bp.com. (2016). [online] Available at: https://www.bp.com/ [Accessed 22 Jul. 2016].

  1. Valvi, A. and C. Fragkos, K., 2013. Crisis communication strategies: A case of British Petroleum.Industrial and Commercial Training,45(7), pp.383-391.

Coombs, W.T., 2014. Ongoing crisis communication: Planning, managing, and responding. Sage Publications.

Digate, C.J., Herot, C.F., Ketudat, T., Kopikis, A.M. and Teven, D.J., Devereux Research Ab Llc, 2013. System and method for immediate and delayed real-time communication activities using availability data from communication through an external instant messaging system. U.S. Patent 8,375,092.

Li, S., Zhu, J. and Lu, K., 2014, February. A Case Study in Strategic Sustainability: British Petroleum (BP) Company. In 2014 International Conference on Information, Business and Education Technology (ICIBET 2014). Atlantis Press.

Matejek, S. and Gössling, T., 2014. Beyond legitimacy: A case study in BP’s “green lashing”. Journal of business ethics, 120(4), pp.571-584.

Shafritz, J.M., Ott, J.S. and Jang, Y.S., 2015. Classics of organization theory. Cengage Learning.

Veil, S.R., Sellnow, T.L. and Wickline, M.C., 2013. British petroleum: An egregious violation of the ethic of first and second things. Business and Society Review, 118(3), pp.361-381.

Williams, C., 2013. Principles of management. South-Western Cengage Learning.

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