British Petroleum ranks one of the top most three industries of gas globally with their operations in Asia, America, Europe, Africa and Australia. The gas company has generated profits of more than 70% in United States and Europe still the organization needs to have some of the explorations and operations regarding production in some of the countries like South America, Caspian Sea and Africa. In United States the company British Petroleum in retailing industry is one of the largest companies. In more than 50 companies the organization supplies the branded Castrol lubricants as BP is the largest retailer (BP, 2010).
In this study the main discussion point is the internal problems of company, environmental disaster, ethical mismanagement and there solutions.
In the year 1999 the organization British Petroleum name was changed to BP Amoco. The organization was founded by William Knox D’Arcy who ventured to Iran for searching of oil. The government of British initially sold their shares of the company and by that time BP was one of the largest companies in investing overseas. In the year 1992 the organization generated loss and the company had to go on board for a drastic change. The organization in the recent years has made some of the operations with Burmah Castrol and this is also known for branded lubricants and ARCO (BP, 2010).
The challenges that are faced by the organization are the fierce competition for talent and markets, the market pressures and investors for the competitive performance. These challenges are through pressures that are strengthening by the globalization. The key initial challenge is the absence of the global rules, there is no framework globally to match the business and the institutions that are international are built and rudimentary for different age. The next challenge is the way through which the company has to manage and organize. The control and command that was used by many organizations and this was not worked effectively, the organizations have to apply the real delegation regarding authority and to maintain the standards. The next challenge is the concern regarding the cultural diversity. This is related to the historical culture of the business. The next challenge is the issue that is related to the corporate responsibility for the business activities (John Manzoni, 2005).
... this time, in 1954, the board changed the company’s name to The British Petroleum Company. New technology pushed explorations into unexpected lands. Explorations ... Within a year, the Anglo-Persian Oil Company now known as BP became a business. The previous years for the explorers were ... BP compared to Exxon is generating a sufficient volume of business for the size of its assets investment. The lower ...
The organization British Petroleum claims the tax credit of 9.9 dollars on the costs that are related to the operation of the cleanup in the Gulf of Mexico. The crisis of oil spill can be the turning point and this will be the next steps of the company and the organization has to concentrate on crisis (Doug Simpson, 2010).
The oil spill incident in Gulf by British Petroleum is an example that has taken place because of the ethical mismanagement. According to BP, the Gulf spill incident reveals the fundamental equipment failure that is specially designed for preventing the blowout. The oil industry is producing increasingly technologically superior equipments in order to deal with such incidents. At the same time, the fact remains unchanged i.e. virtually not possible to solve the problems that occurred due to computer simulations. More problems can be foreseen if a single part of the equipment is made stronger. As per the stakeholder theory, BP is ignorant of the technological malfunctions and it can be considered as the reason for potential technical failure and not inappropriate business ethics. From the approach of strategic management, BP has to consider the steps to incorporate the other environmental components like structures, strategies and goals in order to achieve the overall organizational approach. At the same time, BP is lacking he strategic management system of environment.
... a doubt, low employee morale, lack of leadership / management , and inefficient organization structures all hinder the ability of IBAX to turn ... acquisitions in a proper fashion. Instead, management opted to continue to acquire organizations without investing time in to assimilate the ... of thought, of management, of culture all were absent from IBAX. It is for this reason that many employees felt ...
From the ethical viewpoint, British Petroleum have to stop fixing and drilling the blowout preventers even before it loses money. Instead, the ethical considerations informs that the doing right thing often needs to give up the managements self interest for doing well to others. Here, an ethical point of view must be considered by the management to regard the inspirational sources like philosophical arguments so as to determine the ethically legitimate conditions (David, 2010).
In 2005 March, a fiery explosion has taken place in Texas City which is considered as British Petroleum’s major oil refinery. In this incident 170 were injured and 15 members died. The company has implemented investigation upon on the recommendations and this report stated that the fundamental causes were because of the organizational failure which added to such a tragedy in the history of BP. The team of investigation has found that there are no clear evidences for intentional or conscious decisions or actions were reasons for the attack. However they found that there are some regions like policies, procedures and anticipated performance from employees were not met. As per the report, the fundamental reasons for actions and behaviors displayed during the accident were complex (Andrew and Dirk, 2007).
Finally, the team has identified the main reasons for the cause: they are
1. For past few years, the working atmosphere has damaged because of the change in resistance, lack of purpose, trust and motivation. Expectations around management and supervisory behavior were not clear. Regulations imposed by the organization were not followed constantly. Employees felt unauthorized in initiating or suggesting the improvements of work.
2. Priorities to systematic risk reduction, operations performance and process safety were not constantly reinforced by the organization. Even the safety lessons from other services of BR were not considered.
3. Several changes in the compound personnel and structure of organization. Hence this has led to a lack of communication and accountabilities. This situation has resulted in employee confusion over priorities, responsibilities and roles.
... organization responds to a crisis can differ in many ways. In this essay I would like to discuss the crisis of the British concern British Petroleum ... BOEMRE (The Bureau of Ocean Energy Management, Regulation and Enforcement). Their report on the crisis determined that BP is responsible for and ...
4. Other cause was due poor awareness of the hazard and recognizing the process safety thus this has resulted in employees and other innocent people tolerating the risks of higher levels.
5. Lastly, poor vertical communication and performance management in the refinery intended that there was inadequate early caution system of the happening problems and lack of independent understanding over the worsening standards in the organization through methodical review of the organization.
This incident can be considered as a preventable incident since it has occurred due to the management mismanagement, cultural and process failure (Timothy and Sherry, 2010).
The following ways can be followed as solutions. Make sure to establish the leadership teams and must focus of the operations of the day to day work for competing the required demands. The organizations managers must require knowing the happenings on the plant and on the control room. Capturing the correct metric which indicates the safety trends must be required. Two way communications must be important when the team is with the managers as this helps in stopping the concerns in the workplace. Having effective feedback loop for incorporating and capturing into training and operating procedures and this must be incorporated from the earlier process and incidents. Giving importance in building trust and earning the respect with this being responsible and obtaining commitment makes communication perfectly. Keeping employees those are non essential out of process and must have the process of temporary structures (John Mogford, 2006).
It is significant to highlight what British Petroleum means by a crisis, it is because to know the reason for facilities and procedures those are put in a place to control them. As in many large organizations, in British Petroleum there exists crisis which is considered as an event or a failure in the organizational system effecting property, environment or people. Internal crisis in BP is considered as a negative effect on employee motivation and performance. In a major crisis, the impacts are major since they affect the constituencies of company’s operating environment. An authoritarianism and security crisis has occurred in British Petroleum in the year 1992. So there is a need for change in British Petroleum identifying the employee dissatisfaction that is because of management procedures of the company, especially employees felt that the organization is not worried about their personal development. This situation has led their top management to organize a program of review and research. In turn, this review has led to large number of suggestions for change in British Petroleum so as to allow it to more efficiently respond to the internal requirements. On the other hand, internally BP was still experiencing a de-motivation in staff and system of organization. A strongly functional and hierarchical structure was instituted in all its different business streams located in all seventy countries. This has reduced the internal crisis in regions like the Far East, America, and Europe. Hence such an effect has brought up changes in morale of staff.
The Essay on How far is it applicable to management and employee motivation in contemporary Chinese organizations?
... How far is it applicable to management and employee motivation in contemporary Chinese organizations? During the 1960s the number of ... aspects of working conditions. In organizations with only Chinese executives, most of employees experience an unavailability of managers, ... and other improvements in the organization of production leaded to the alteration of employees’ responsibilities, and formed new ...
In order to overcome the internal crisis the organization has set up guidelines to execute the responsibilities of crisis management (Simon, 1993).
The team of crisis management must identify the crisis and the organizations effects, the team should evaluate and understand the situations related and they must come up with solutions that make the organization immediately cope with the problems of the organization. They need to fix the problems with determining the facts and must take the charge of the problem quickly. The team has to be sensible in tackling the issues of the organizations. Initially the crisis must be evaluated and then it has to be successfully managed (Edward S. Devlin, 2007).
The oil spill at Gulf was considered as a worst environmental disaster in the history of BP. 17 were injured and 11 were dead from the Deep Water Horizon explosion of BP. Numerous birds, marine mammals, reptiles and fish were killed by the oil spill. Also the disaster packed people from respiratory problems, in particular among the senior citizens along the sea shore. The Gulf affected region is a spawning ground for fish but the incident endangered the tourism and seafood industry and has threatened the disaster for marshes of Louisiana and may rare species.
... done by the BP oil spill was the wayin which the spill was handled, not only by BP’s management, but also by the ... has monopolized the waters. The BP oil spill has been rated one of the biggest environmental disasters of this century. To examine what ... lost loved ones at the beginning of an enormous environmental crisis which would later affect people around the world through rising ...
The president of America has considered the incident as a biggest environmental disaster faced by the country. He ordered an Environmental Protection team and FEMA (Federal Emergency Management Agency) to investigate the reasons for the disaster and determine the ways to further protect the country from such disasters (Wayne, 2010).
This study mainly explains the British Petroleum’s mismanagements in various ways and its solutions. The organizations challenge that is faced must be evaluated and the key challenge is to match the business globally. The real delegation must be applied by the organization for maintaining of standards. Ethical mismanagement’s perfect example was the oil spill incident, the industry of oil is increased its productivity technologically for dealing with few incidents. To foresee few problems they can use superior equipments. BP follows the stake holder’s theory for technical malfunctions and these are the main concerns for considering the technical failure. The organization has to consider some steps in incorporating the components like goals, structure and strategies. The investigation team concentrates on the organizational mismanagement and has to found the clear evidences for conscious or intentional decisions. The issues can be solved with some few solutions it can be handled by communicating with the employees in the dual way and this creates a lot of change in the workplace. Internal crisis in BP is considered as a negative effect on employee motivation and performance. Dissatisfaction of employee is the main concern as they feel that management is not worried in their personal development.
Few guidelines have been set to manage the responsibilities of crisis management and these programs. Operating business was an important principle as it was responsible for dealing with operational aspects of any emergency or crisis. This can be handled by management has to evaluate according to the situations. With BP there was a disaster of environment and this was the worst one every had where many fishes, birds and marine mammals were killed and even the people who lived near the sea shore had respiratory problem. This has affected the tourism and this has considered the environments biggest disaster. If these are followed perfectly then the challenges of BP can be managed.
... 16 December 2011]. Available from: //www.eagle.org BORODZICZ, E. P., 2005. Risk, Crisis and Security Management. Chichester: John Wiley & ... in shipping: IMO’s role and problems of implementation. Disaster Prevention and Management [online], 13(1), 50 [viewed 16 December 2011 ... of reward and punishment regarding safety matters. For easy access this manual will be available in electronic form. In ...
* Andrew, C. and Dirk, M. (2007), Business ethics: managing corporate citizenship and sustainability in the age of globalization, New York: Oxford University Press.
* BP.(2010), BP Plc Overview. Available from: //www.corporatewatch.org/?lid=287 Accessed on 24th July 2010.
* David, O. (2010), Opinion: BP puts costs ahead of environment. Are we surprised? Available from: //business-ethics.com/2010/07/05/1432-opinion-bp-puts-well-costs-ahead-of-environment-are-we-really-surprised/ Accessed on 21st July 2010.
* Doug Simpson.(2010), What is the present condition of the BP Oil Spill. Available from: //www.aolnews.com/tag/what-is-the-present-condition-of-the-bp-oil-spill Accessed on 26th July 2010.
* Edward S. Devlin. (2007), Crisis management planning and execution, CRC Press.
* John Manzoni.(2005), Which are the key Challenges Facing the Global Company of the Future?. Available from: //www.bp.com/genericarticle.do?categoryId=98&contentId=7009879 Accessed on 24th July 2010.
* John Mogford.(2006), The Texas City Refinery Explosion: The Lessons Learned. Available from: //www.bp.com/genericarticle.do?categoryId=98&contentId=7017238. Accessed on 26th July 2010.
* Simon A. S. (1993), Crisis management strategy: competition and change in modern enterprises, New York: Routledge Publishing.
* Timothy, W. C and Sherry, J. H. (2010), The Handbook of Crisis Communication, John Wiley and Sons Publishing.
* Wayne, M. (2010), The Cover-up: BP’s Crude Politics and Looming Environmental Mega-Disaster. Available from: //oilprice.com/Environment/Oil-Spills/The-Cover-up-BP-s-Crude-Politics-and-the-Looming-Environmental-Mega-Disaster.html Accessed on 22nd July 2010.