Role of the Leader and Management in Indian Oil - Essay Example

The core competency of the company lies in the manufacturing of oil and gas. In addition, it also forms an essential supplier of cooking gas in the country delivering to over 62.4 million numbers of households in the country. The company’s research and development center which is located at Faridabad generates the most outstanding of technologies and solutions for the various operating divisions of the company and to its customers throughout the country and also abroad. The organizational structure of Indian Oil is rather flat with very few levels of management intervention between the staff and the management. Instead of being supervised through numerous management layers, the staff is greatly involved with the decision-making process of the company. The company is known for nurturing employee involvement through a decentralized decision-making process (IOCL, 2012).

Indian Oil- Structure, Strategy, System, Style

Indian Oil represents a flat hierarchical structure that is primarily functional in nature. The company is divided into units and subunits according to their areas of function. The company has an equal presence both in the refineries as well as in marketing segments. With the help of an integrated supply chain model, the organization integrates between its various divisions and functional units. Each division is headed by a Director who is responsible for reporting to the Chairman. The importance of differentiating between the various functional divisions is that they maintain their own knowledge and technology for producing their own products. Each of the functional divisions also caters to their own markets and areas of operation. However, there is ample integration between the various functional units. Interlinked through an effective communication and information system, the organization enhances knowledge sharing between each functional component. The functional organizational structure has each unit operating its own marketing divisions. These marketing segments operate according to the conditions and situations where they function and the markets in which they operate (Klassen & Menor, 2005, p.411).

Role of the Leader/Management in Indian Oil

The management and leadership programs in Indian Oil represent a participative style of leadership. Decision-making by the management is particularly designed for acquiring the views and suggestions of employees of the organization. Employee empowerment programs are made crucial components of the HR practices and strategies of the corporation. This is done with the aim to acquire strong commitment and devotion of employees towards the organization. Also, the accountability, responsibility, and liability of employees as decision-makers of strategies and work processes are greatly enhanced through this system. However, the presence of strong business leaders in the company cannot be ruled out. It is guided and directed through a handful of very strong and competent business leaders who provide strategic direction to the company. Particularly during the presence of crisis situations and fluctuations in business conditions, the role of the management played a crucial role in handling the turmoil situations effectively. Also, effective leadership and management control played a role in exploiting the adverse economic conditions for capturing some of the emerging markets in the country.

The company also demonstrates an effective and strong human resource management system which is aimed towards enhancing the performance and productivity of employees in the organization and availing their strong commitment towards it too. Its compensation structure is aligned with the business objective of the firm where employees’ remunerations are linked with their performance. There is also a strong focus on the skills and expertise of the workforce which is considered one of the prime assets of the organization. Regular performance analysis, training needs analysis, and reviewing of training programs are done in the organization for keeping its skilled workforce updated with the latest technologies and skills. This helps to maintain a competitive edge in the market and stay ahead of competitors too (Jones, 2008, p.541).

Recommendations

A matrix structure is recommended for Indian Oil for enhancing greater knowledge sharing among units. The functional units demonstrate an isolated structure where communications remain poor. In the world of globalization, businesses require strong association between their units and subunits such that each one complements and supports the other.

It is seen that employee performance and productivity are greatly encouraged through effective compensation programs where performance-based pay systems form a key component. In addition to this, it is recommended that the organization encourages team performance in addition to individual performances. Rewards can be provided for the efficient performance of teams and group activities. This would nurture a supportive and interdependent culture in which each one would be mutually complementing the other. A strong team-based culture would reflect through enhanced organizational performance and productivity.
Perceived learning- Evaluation of the assignment

The assignment has greatly enhanced my knowledge about various organizational structures and the way they contribute towards effective management. The matrix structure is seen to be most efficient for global organizations. However, in the case of Indian Oil, it demonstrates a functional or divisional organizational structure for effective management of its various operations across the country. The importance of compensation structures for improving the commitment and productivity of employees is made clear through the assignment. The role of team building and cooperative work culture is also crucial for enhancing organizational effectiveness and productivity. However, a stronger communication network is called for, in the case of Indian Oil. This is to enhance a collaborative culture and align strategies of the different units and subunits with the long-term business objectives of the organization.