Application of Cultural and Critical Approaches to BHP Billiton - Research Paper Example

Running Header: Organizational culture & power Student’s Name: Instructor’s Name: Course Code & Name: Date of Submission: Contents Contents 2 Abstract 3 1.0 Introduction 4 1.1 Purpose and Scope 4 1.2 Method 5 1.3 Limitations 5 1.4 Assumptions. 5 2.0 Background of the Report 6 2.1 Organizational culture 6 2.2 Organizational Power 6 2.3BHP Billiton 6 3.0 Discussion 7 3.1 Organizational Values in BHP Billiton 7 3.2 BHP Billiton assumptions 8 3.3 BHP Billiton artifacts 9 3.4 BHP Billiton sustainable culture 11 4.0 Critical Approach and power in BHP Billiton 12 4.1Analyzing Organization power in BHP Billiton 12 4.2 Women in BHP Billiton 15 5.0 Recommendations 15 6.0 Conclusions 16 References 17 Abstract Organizational culture stipulates the values and beliefs shared by the members of an organization. The culture in an organization sets how an organization undertakes its operations. The risks and hazards that characterize the mining industry necessitate that mining companies must hold a strong culture to operate effectively. Therefore, it is interesting to understand how culture and power influences the operations of mining companies. This report tries to explore, analyze and also to understand BHP Billiton culture and how the company power is structured. The company is renowned and cherished for being the largest explorer and producer of mineral resources in the world. Using the information derived from its website and in the publications, this report will try to look at, and understand the company culture and how the company power is set. The report begins by identifying the utilization of Krizan at el symbols, assumptions and artifacts that define an organization culture in BHP Billiton. Secondly, the report relates the different power concepts to BHP Billiton. The report goes further and takes a critical move towards understanding the application of control and feminist theory in the company. Lastly, the report comes up with some recommendations that can be employed in order to undertake advanced research in this area. 1.0 Introduction 1.1 Purpose and Scope Organizational culture directs the behavior of the members in an organization. The pattern of shared values beliefs and learning facilitates the members to gain vital experience which has a big impact on the overall performance of the organization. Academic literature undertaken by Symonds (2002, p.40) found that organizational culture has a strong effect on its performance. An organization that applies a strapping culture motivates its members to exert their efforts towards delivering the organizational goals. Grint (2005, p. 127) holds the opinion that organizational culture can come up as a consequence of social action. This phenomenon arises when culture does not in reality influence people to perform in an explicit way but rather to respond to the pressure exerted onto them from a precise powerful person in the organization. Organizational culture and power is significant as it enables the members of the organization to match their goals in accordance to the organizational goals and these leads to soaring performance. The study of organizational cultures and power is imperative in the mining industry as it influences the behaviors and values of the employees and this has a long-term rewarding effect on the organizational. Mining activities demand employees to integrate with each other and in the course of these they are able to learn and share ideas and consequently improve their performance as well as that of the organizational. However, Salaman (2001, p. 40) notes that employers can make the most of power culture with an endeavor of controlling the conduct of the employees. Therefore, the purpose of this report is to survey the application of culture and power in BHP Billiton. The report will try to identify and explain the use of culture and power in BHP Billiton by connecting to various theories and analyzing materials obtained from the peripheral sources and in the company’s website. 1.2 Method The report collected its information from secondary sources which incorporated journal issues, newspapers, magazines and books. The information composed from the external sources was integrated with the information obtained from the company website and analyzed with an aim of identifying the application of culture and power in BHP Billiton. 1.3 Limitations The external sources of information used in this report mostly represent the scrutiny of the top management hence this may not the actual reality exhibited inside the organization. Moreover, the report did not consider the implication of the company sub-culture which is commonly exhibited by the employees and can have an impact on the power structure in the company. Due to inadequacy of time, it was impossible to personally visit the company and examine its culture as well as the important power characteristics of the company. 1.4 Assumptions. The report assumes that all the information in the journals, books, newspapers, magazines and in the company website concerning the company culture and power structure is factual and represents the actuality. Moreover, the report assumes that culture and power are homogeneously applied between the different diverse departments and operating branches of the company. It has also been assumed that a company’s sub-culture does not have an impact on the overall power structure of the company. 2.0 Background of the Report 2.1 Organizational culture Organizational culture refers to the pattern within which an organization shares its values, beliefs and learning in order to cope with the experiences that have been developed during its operating history and which tend to be inclined in the behavior of its members and the general arrangement of the organization (Symonds 2002, p. 38). This report has adopted this definition in order to establish the application of culture and power in BHP Billiton. 2.2 Organizational Power Organizational power refers to the means through which an organization resolves its conflicts (Morgan 2006, p. 166). Power is a resource that people in the organization posses and it is used to sway the behavior of other people. Power is used as an instrument for directing the operations of the organization. Das (1993, p. 388) concludes that power is the ability to control the actions of others. The organization members must perceive the power possessed by their superiors in order for them to be controlled. 2.3BHP Billiton BHP Billiton is a major explorer and producer of minerals resources. Its portfolio products include copper, aluminum, iron ore, energy coal and silver (BHP Billiton 201). The company has also a noteworthy interest in gas and oil products. The company has its operations in 25 countries around the world with its headquarters in Melbourne. The company has provided employment to 41,000 employees and 65,000 contractors. The company focuses to diversify its activities in relation to its products, geographical locations and markets in order to meet the changing customer needs. 3.0 Discussion According to findings of Krizan at el (2010, p. 37) an organization culture manifests itself through values, assumptions and observable artifacts. The artifacts relay the observable behavior of the organization members, the organization symbols, the rituals performed by the organization and the organization customs. 3.1 Organizational Values in BHP Billiton Organizational values refer to the mutual ideas about what is good, desirable and right in an organization (Ashkanasy, Wilderom and Peterson2012, p.515). The shared values represent what the organization members want to collectively achieve. They support the members in making organizational decisions which are aimed at achieving their set goals. BHP Billiton values call for its employees to start each day with an objective and to end the day with a sense of accomplishment (BHP Billiton 2012). Moreover, the company values embrace the spirit of respect and integrity. BHP Billiton values oblige their employees to do what is right and to focus on the things that are crucial. According to Ashkanasy, Wilderom and Peterson (2010, p.516) values indicate the company priories and this provides a guide in relation to the employees roles. BHP Billiton prioritizes itself towards environmental sustainability by first considering the impacts of its activities on the health and safety of its employees as well as that of the society. The company values aim at maintaining precious and superior relationships with its supplies, customers and the community. The company accepts liability by being accountable and disciplined in its operations as well as in delivering its commitments. In addition, the company values are focused at delivering superior returns to its shareholders. To do this, it embraces a culture of simplicity and innovation. 3.2 BHP Billiton assumptions The basic organization assumptions relate to the various aspects of how the employees behave and relate with one another in the organization as well as with the organization external environment (Chapoux 2010, p.76). The assumptions of an organization are developed over its working history and from the strategies that it derives and utilizes in dealing with the diverse activities and events in its operating cycle. BHP Billiton holds the assumption that in order to perform and deliver its commitments the company employees and the implicated parties will undertake their duties as established. In addion, the company culture is of assumption that all parties who enter in an agreement with BHP Billiton will not suffer from bankruptcy and fail to pay the company. Moreover, the company holds the assumption that all parties who enter into an agreement with the company have legal capacity and are all natural persons (BHP Billiton 2012). According to Kolb and Merrill (1999, p. 201) cultural assumptions enable the organization members to comprehend their roles relative to the anticipated performance standards. BHP Billion holds the assumption that it is the world’s largest producer of a portfolio of minerals (BHP Billiton 2012). It therefore means that the company employees must maintain high operating standards so as to provide a guarantee that the company maintains its status as the largest mineral resources producer. 3.3 BHP Billiton artifacts Scheln (2010, p. 23) analyzes the organizational cultural and notes that artifacts make up all the observable effects in an organization. Cultural artifacts include the organization physical environment, language of the members, technology, symbols, members clothing and the company products as well as the company stories, myths and rituals. BHP Billiton Symbols According to seminar works of Chapoux (2010, p.77) organizational culture contains symbols that have a specific direct meaning. Cultural symbols have a diverse denotation to the different people who interact with the organization. Organization symbols can be expressed verbally, through use of materials or in the form of actions. Action symbols refer to the behaviors exhibited by the organization members which are beyond the normal meaning. BHP Billiton supervisors respond to employees grievances promptly without considering their status in the company. In addition, BHP Billiton employees display a culture of care by protecting the company’s assets as well as those assets that belong to other people. On the other hand verbal symbols refer to the slogans stories and sagas that are embodied in an organization (Chapoux 2010, p.77). The BHP slogan is to operate sustainably. The company has a culture of sustainable reporting which it believes is a key towards its success. In order to effectively undertake its activities in Mozambique, the company adopted the slogan ‘Together we make a difference.’ This was with an aim of communicating its culture of sustainable development (Pat, Jenny and Laura 2008). Through the slogan, the company was able to assist the people of Mozambique by sharing with them the proceeds it obtained from its mining activities in that country. Chapoux (2010, p. 77) defines material symbols as the physical characteristics of the organization culture. Material symbols submit to what can be observed in the organization and include the employees clothing, technologies and the physical layout of the organization. By looking at the BHP Billiton mining employees and how they adhere to protective dress code one is certain that they are safe. The company has a culture of holding annual iron ore pricing negotiations. This is aimed at giving investors certainty in relation to the price and quantity of the iron ore. BHP Billiton has simple and straightforward logo that reflects how the company was formed through the merger of Billiton and BHP. Furthermore, the company employs up to date technologies and machineries in its operations. This makes it possible for the company to provide valuable products to its consumers. BHP Billiton has a simple organizational design that easily defines its employee’s roles and this emphasizes its culture of simplicity. The organization structure enables the employees to develop themselves by employing simple techniques to solve difficult problems in the organization. The company values reflect the spirit of accountability, transparency and sustainability in its operations. Moreover, BHP Billiton open office layout indicates that the organization is transparent and conservative. In addition, the customers’ chairs are comfortable and appealing and this communicates that the organization appreciates its customers BHP Billiton Hero Rose (2008, p. 23) comes to a conclusion that organization culture is personalized and embedded in its heroes. The heroes are the organizational achievers and they are recognized by all the employees from the first day they join the organization. They act as role models to other employees to emulate and follow. BHP Billiton, Kate Sommerville acts as a role model to other employees in the organization. She has risen to become a mine manager and as a consequence she is regarded as a hero by women in the company. Her achievements inspire other women’s in the company. 3.4 BHP Billiton sustainable culture According to Ashkanasy, Wilderom and Peterson (2012, p.394) for an organization culture to become fully sustainable, the culture must be harmonious with the organization values and assumptions. Moreover, an organization should continuously change its culture and this should be in line with its assumptions and values. BHP Billiton (2012) states that in order to ensure sustainability the company makes annual sustainability reports where it outlines its approach to the environment, safety, health and the community. Moreover, the company has set standards of ascertaining transparency in relation to its commitments on sustainability. To ensure sustainability of resources, the company works to continuously improve on the utilization and management of mineral resources. An organization must manage its identity by building and sustaining a powerful organizational culture (Willmott and Knights 2006, p. 305). To do this, the organization must internalize its norms and values in order create employees commitment and loyalty. The organization must create conditions which enable its employees to have a consideration for the community and hence maintain its sustainability.BHP Billiton builds the culture of sustainability in its employees by requiring them to undertake feasibility case studies before they embark on a project (BHP Billiton2012). This makes it possible for them to appreciate the company values in regard to safety and health of its people and the community. The feasibility studies allow the employees to realize their ethical, social, economical and environmental responsibilities. Moreover, the company has taught its employees to share the company opportunities with the communities in order to maintain long lasting relationships. The company employees listen to the views, rights and concerns of the people in the areas in which it operates. 4.0 Critical Approach and power in BHP Billiton This section looks at the application of power in BHP Billiton. In addition, the section looks at how the company values and practices feminist theories. 4.1Analyzing Organization power in BHP Billiton Mills, Helms and Bratton (2006, p.366) argue that critical approach aims at illuminating the unseen power which is often pervasive. The critical approach aims at making the organization to become more efficient by recognizing its organizational communication which acts as a source of power. An organization must adopt and implement the appropriate management control methods in order to communicate to its employees and this will ensure corporate requirements are implemented at the operating level (Morsing and Oswald 2009, p. 83). BHP Billiton adopts a simple organizational structure that aims at building functional expertise whereby the employee can realize their accountabilities (BHP 2012). The company organizational structure facilitates its employees to identify and prioritize on the most critical activities. BHP Billiton organizational structure consists of a board of governors, the chief executive officer and the group management structure. The board has delegated all its activities to the company’s chief executive officer who has in turn delegated his authority to the Group Management Committee. The Group Management Committee sets down the operating structure, accountabilities and the scope of the customer sector group, Marketing Group and the minerals exploration group. The committee ensures that management culture is enhanced all over the organization. Kasluvan (2003, p.16) notes that an organization provides its employees with power by empowering them with an aim of ensuring that the organization delivers better services to its customers and to improve the employees decision making. To empower its employees, BHP Billiton develops its employee’s expertise and skills by providing them with an opportunity to perform at the highest level in the organization. In addition, the company gives its employees an opportunity to integrate with experts in order to broaden their skills and knowledge. According to the BHP Billiton news (2011) the company shareholders agreed to implement the Employees Share Ownership Plan with an aim of further empowering its employees. Moreover, the company agreed to enter into a contract with an empowerment consortium company in order to realize its commitment of empowering its employees. Finally, the company sold some of its assets in order to finance its employee empowerment program. Sitkin, Cardinal and Bijlsma (2010, p.97) argue that the ability to control the organizational activities is similar to possessing organizational power. This means that the employees’ posses power when they are capable of controlling the activities of the organization. As proposed by Das (1993, p.389) BHP Billiton adopts a type A control system which is evidenced by the company concern for its employees as well as providing its employees with long-term employment. BHP Billiton gives a priority to the safety and health of its employees. The company ensures that it takes all the necessary steps in order to protect its employees from illnesses and injuries in the workplace. Furthermore, the company gives an opportunity to its employees to control the company activities by encouraging them to adopt the simplest means to create organizational value Organization processes have an impact on power (Fairholm 2009, p.13). The mechanism through which an organization undertakes its activities determines the impact of power. BHP Billiton undertakes most of its activities by the use of machines and high technological equipments. The fact that the majority of activities undertaken by the company are carried out of the offices makes the work enjoyable. Moreover, the company management delegates most of its activities to the lower level employees and this reduces the impact of power exerted towards them. The company values encourage simplicity, creativity and sustainability. This means that the employees are not tied to pointless power relations, restrictive ideologies, unnecessary traditions and needless practices. The company management supports teamwork in order to provide the employees with a pool of diversified ideas and skills necessary to ensure effective organizational performance. 4.2 Women in BHP Billiton According to Burke (2011) BHP Billiton is committed to diversity through its role in the resources industry. The company supports women employees in its mining activities. The company has also implemented a child care program which is aimed at attracting and retaining female employees in the labour industry. To do this, the company entered into a partnership with a childcare centre in order to provide its female employees with child care services. The company has also announced that it will increase its female employees to a target of 20%. Moreover, the company annually recognizes resourceful women in its workforce and awards them with BHP Billiton iron ore award (BHP Billiton 2012). 5.0 Recommendations Lim (1995, p.18) argues that an organization sub culture can have an impact on the values and practices. It therefore means that the sub-culture exhibited by BHP Billiton employees can influence the performance of the organization. Therefore, there is need to undertake research in BHP Billiton in order to identify its employees sub-culture. In addition, the research should identify the impact of the sub-culture in relation to the values, practices and performance of the company. Moreover, the fact that BHP Billiton undertakes its activities globally means that it has to align its culture with a multiplicity of changing cultural practices in its operating environment. This may in turn have an impact on its operating performance. Therefore, studying how the organization adapts its culture to its operating environments will indicate the strategies that the company employs in order to avoid its culture conflicting with that of the external environment. In addition, the impact of the changing culture on its operations, practices and values should be analyzed. Researchers interested in organizational culture should also undertake studies to determine the extent at which the assorted operating branches adopt the head office culture. Due to the different operating conditions that are faced by the company operating branches, they may be forced to change the organizational culture so as to fit with that of the environment. Therefore, undertaking research in the area will reveal the extent in which various operating branches adopt the company culture and the factors that motivate the branches to change the company culture in order to fit with their environment. Finally, in order to determine how culture and power is applied in the company. There is need for future researchers to undertake a keen observation of the company operations and to also personally interview the employees in order to gain a better understanding of how power influences the culture of BHP Billiton. 6.0 Conclusions To conclude, BHP Billiton has a strong culture and this is indicated by its values, assumptions and artefacts. Moreover, it has a simple organizational power structure which enables the management to delegate its responsibilities to its employees. This culture empowers and motivates its employees and this makes the company to achieve high operating performance. The company culture also trains the employees to be accountable and to protect their health and safety as well as that of the community. Through the organizational culture the employees have been able to create value for the organization and this motivated the company to offer them higher benefits. 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