Organizational Structure Paper - Essay Example

British Petroleum al Affiliation) British Petroleum Organizational structure is the hierarchical arrangement of leadership and departments of an organization. This article describes the organizational structure of British Petroleum and how its function influences and determines the structure of the company. Structurally, British petroleum, because of large-scale economies, employs workers with different skills to work on tasks divided up in an organized and hierarchical way. On the other hand, smaller corporations like Mobil and Shell are less complex.

They employ workers with specialized skills and need fewer levels of hierarchy in their tasks (BP, n.d.). BPs marketing system has been to present itself as a green company producing new cleaner fuels for reducing CO2 emissions. On the other hand, this scheme might lead to loss of business to its competitors as people question its green image. Profit earned from selling product and services is shared among shareholders, used to fund future expansion and retains part of it to aid in search of new oil and gas reserves and invest on new technology or replace old machinery.

Internal leadership and management are segmented into divisions that review contractors, thus enhancing flow of communication within the organization. Finally, BP focuses on diversification and branching out in its operations (Brown, 2012). Oil located in deep sea helps BP develop better processes for deep-sea drilling from cementing, testing for leakages, to well control and risk management. Functionally, BP should educate and train its personnel to enhance capability and competence. Departmentally, BP ought to adopt a centralized organizational structure as this will improve cost efficiency and inject consistency into operations.

Finally, BP should focus on diversifying its marketing channels for the companys advantage (Bateman & Snell, 2007).References Bateman, T., & Snell, S. (2007).Management: Leading & collaborating in a competitive world. New York: McGraw-Hill.Brown, D. S. (2012). Philosophy and Economics Researcher. London: British Middle-East Center.BP. (n.d.). Our business model. Retrieved September 20, 2014, from http://www.bp.com/en/global/corporate/about-bp/company-information/our-business-model.html