BP
Uploaded by CaseyP on Aug 02, 2016
Management structures
BP (British Petroleum) is one of the largest and most dominant oil and gas companies in the world by market capitalization and revenue. Its business in the energy industry included exploration of fossil fuels, production, and refining, petrochemicals, distribution and marketing. Although its primary dealings are in the fossil fuels sector, the company has recently developed interests in renewable sources of energy such as wind power and biofuels. The corporation, whose headquarters are located in London, is rated among the ‘supermajor’ in the global energy sector (Hilyard 2012). BP was founded in the early 20th century as the Anglo Persian Oil Company. It underwent several challenges in the first half of the century before it was acquired by the United Kingdom government, which led to a change of name to British Petroleum (BP). Today, it has a presence throughout the world. BP is mainly present in geographical locations where fossil fuels exist as well as the strategic location for refining, transporting and marketing its products (Bamberg 2009).
The most important resource in any organization is the human capital. The success of a business is dependent on the ability of the corporate structures to bring people with shared values together to work towards a common goal. The structure defines how the individuals are built up into a working group. BP is a huge corporation with complex and diverse activities. The management structures are essential in ensuring that the massive workforce, distributed throughout the world, works towards a common objective. In the management structure, people are grouped into layers. Each stratum in the corporate hierarchy has a different level of roles and responsibilities (Albrechtsen & Besnard 2013).
The central decision-making organ in BP operations is the board. According to the company website, the board has the responsibility of proving direction as well as oversight over all activities of the organization on behalf of the shareholders. The board represents the owners of the company and, therefore, is accountable to them. It is composed of thirteen members, which includes the chairman (Carl Henric Svanberg), two executive members, nine non-executive members and one independent director. The executive, through the chief operating officer and the chief financial officer, reports directly to the board. To achieve its mandate, it has established principles and values that guide the organization. The foundation of the principles governing its operations is the importance of “clarity of roles...