Leadership Theory And Practice Via An Account Of BPs Gulf Of Mexico Oil Spill - Assignment Example

LEADERSHIP THEORY AND PRACTICE VIA AN ACCOUNT OF BP’S GULF OF MEXICO OIL SPILL. Student Name: Student P number: Module: Module code: Submission deadline: Abstract This paper focuses on analyzing a leadership theory and practice via an account of British Petroleum’s Gulf of Mexico Oil spill. This study is developed within a realistic methodology on the managerial perspective of the company’s senior management in relation to middle managers, and the general staff members of the company. Through a deductive approach, I plan to build up a theory based on currently available literature and assess it in the relevant field. From a managerial perspective I advocate developing a qualitative study able to assess the accountability of various stakeholders in realizing that company goals. Expected outcome of this study is to produce useful data for managers to aid them in strategizing and achieving business goals. Table of Contents Abstract 2 Table of Contents 3 Introduction 4 Kinds of moral accountability issues 5 Perspective of a British Petroleum rig operator 5 Perspective of a Post graduate Engineering Student from a township on the Gulf of Mexico. 6 Major leadership issues of vital importance for British Petroleum’s future. 7 Practice delegation 7 Visionary 8 Motivational 8 Coaching to change the practice of senior BP managers responding to public critiques. 9 Conclusion 15 References 16 Introduction In all organizations or companies, precise leadership is the centre for success or failure. It is the responsibility of business managers to address this issue. Management is an extremely essential aspect of the whole life of an organization or company. It is a process of getting things done through the hard work of staff members to ensure that a company meets its set out goal. In addition, management plays a vital role in guiding both human and material resources into lively organization units that accomplish their set out goals to the satisfaction of their clients and with an elevated quality of moral accountability on the part of employees providing the services (Mullins et al. 2007, p. 321). For a company to achieve its productivity goals there must be superior organization skills and high quality managerial ability. Therefore, an organization’s management provides headship to the functionality of a business venture. An organization with no competent and effective managerial direction, its production resources hang about being purely resources and on no account become production. In this ready for action economy and the constantly changing business environment, the eminence and performance of organization managers predetermines continued existence as well as success of any production venture. However, in practice many business managers have botched in meeting the realistic managerial principles (Mullins et al. 2007, p. 233). In this paper, a thorough analysis of the British Petroleum leadership has been outlined particularly the role of the managerial staff and other staff members in ensuring success of the company. The first section addresses the moral accountability issues from perspectives of the rig operator and a postgraduate in the field of engineering. Second section addresses the essential leadership issues for the company’s future success. Third section performs a critical analysis of the companies’ leadership and goes ahead to coaching the response of senior British Petroleum managers. Finally, I draw a conclusion on the subject of leadership principles. Kinds of moral accountability issues Moral accountability is a conception in ethics and liability. It is the state of being obligated to bear consequences for success or failure to perform as expected by an organization mission. This builds a dilemma for moral accountability. When a staff member is held accountable and yet he or she could not have prevented the results, one ends up being held responsible for something out of his control. However, if only an organization is considered liable, then all staff members in the organization are uniformly blameworthy. In brief; since the success or failure of large organizations is highly determined by its staff members, moral accountability becomes an essential aspect for each staff member and for an individual interested in working for that organization (Schermerhorn 2011, p. 96). In this sense, considering the case behind British Petroleum, main emphasis in this paper has been laid on the kinds of moral accountability issues for a rig operator and a postgraduate student in the field of Engineering. Perspective of a British Petroleum rig operator Rig operators are one of the most essential workers in success and sustainability of the British Petroleum company. His or her vital task is the running and management of oil drilling machines. However, since the British Organization’s senior management pressured their employees not report machinery problems, this brings an exclamation mark on the rig operator’s moral accountability (Bamberg 2000, p. 265). In real sense, the operator is liable to reporting any machinery errors in order for rectification action to be conducted thus avoiding extremely worse outcomes from those problems such as explosions. The senior management discourages this with an objective of reducing production costs. However, when a problem occurs, the rig operator takes the whole blame. A rig operator remains having a major concern on how he can perform his duties as per his professional comprehension. This intimidation from their superior leaders’ result into the rig operator becoming highly worried on the ability of his profession to ensure safety of the drilling machines and the oil reservoirs and yet doing that without the support of those above them. Employee motivation is extremely vital and here this case the rig operator faces a big problem in accessing it. In addition, the salaries rig operators receive from the knowledge are highly recognizable. In other words, rig operators get huge pays from the work they conduct at British Petroleum’s Oil reservoirs. It is only this concern of the huge salary that motivates them in continuing with their daily tasks. However, their request for maintenance of the oil pipes are always discouraged, their safety becomes an indispensable concern. This is another vital concern for the rig operator (Schermerhorn 2011, p. 105). Perspective of a Post graduate Engineering Student from a township on the Gulf of Mexico. As outlined earlier in this section, Engineers are the core workers of the British Petroleum Company. One of the major concerns for a post graduate Engineering student is to work for a highly paying company whereby in the Gulf of Mexico it will be nowhere other than at the British Petroleum company. However, another concern of this student will be his ability to maintain his professional reputation. From the worldwide report that workers are harassed not to report any maintenance of the machinery, a student will be highly concerned on how he will be able to meet the company requirements. In addition, in this field another major concern is the safety of the workers. Therefore, if errors are not corrected as per the expected time scope, it clearly shows that security is not guaranteed and for these areas, the insecurity outcomes are worse. An engineering student will then be highly concerned on the status of his life can be whenever an explosion occurs (Bamberg 2000, p. 154). This means an engineering student at the Gulf of Mexico intending to work for British Petroleum Company may do that just for the good pay. However, he will not be comfortable since there will not be guarantee that he will fully practice the knowledge he learnt and on his safety (Adair 2010, p.100). Major leadership issues of vital importance for British Petroleum’s future. For the British Petroleum company’s future to be in a better position matters regarding the moral accountability of the stakeholders have to be given higher priority. Stakeholders refer to the whole group people who directly or indirectly determine the company’s success. These include shareholders, government agencies, employees, and customers. To achieve future success the senior management has to practice the following key issues practice delegation, be visionary and motivational Practice delegation Delegation refers to the practice of assigning the company production tasks to subordinate staff members. The senior management of the British Petroleum company prefers deciding on their own specifically when addressing the organization’s production activities. However, allowing staff members play an essential role in this subject will enhance the performance of all staff members from the rig operators to all other related staff members. In addition, practicing delegation provides the ability to reduce any maintenance errors and aids develop high quality leaders for the future (Bamberg 2000, p. 100). Visionary A visionary leader is one knows exactly what is to be accomplished. He or she always has a vision in mind and do not become bothered with immaterial problems. For the leaders of the British Petroleum Company, it vital for them to ensure that since the goal of the company is to be successful in its operations, it is essential for them to be visionary (Daft 1999, p. 301). This will be achieved by ensuring that the requirements of both employees and government agencies are strategically satisfied. Government agencies in the United States has been fining the British Petroleum millions of dollars because its lack proper security mechanisms. This clearly shows the management of the company’s vision is sincerely poor. Security of its workers and those people around it is not a matter, which they give priority. This even makes the shareholders question on the progress of the company. For these managers to visionary, they need to develop a clear idea and create a road map on how to address the safety issue. By doing this, they will encourage the whole group stakeholders and will clearly allow an employee to address any problems in the systems (Morden 2004, p. 187). Motivational For the company to be effective in future, the senior management has to develop a tradition of motivating its employees particularly the rig operators. They have to be encouraged to report any maintenance requirements on the drilling machines, oil pipes, reservoirs and the whole system. In addition, after reporting implementation of the maintenance should immediately allow it to take place. Effective leader empowers his human resources and gives them a rationale. This will step up an employee’s reputation hence improving their performance. In addition, all the stakeholders will be motivated into putting more effort to the company hence making the future of the British Petroleum Company at a high quality position of success (Bamberg 2000, p. 123). Coaching to change the practice of senior BP managers responding to public critiques. Public critiques are one of the most vital challenges that senior Business Petroleum managers have going through. It is thus, extremely essential to note that the response of these managers is a key aspect in ensuring success of the company. The response made exceptionally determines the view of various stakeholders on the company’s progress. The positivity of the manager’s response results into a higher company reputation, hence improving attitude of the various stakeholders (Whetten & Cameron 1998, p. 111). When stakeholders are positive about the company’s progress, then they will always try hard to ensure that they meet their moral accountability issues hence aid meeting organization goals. In this section, I have done a thorough coaching of the practical changes to be conducted by senior managers of the British Petroleum in responding public critiques. The senior managers have to value the public critiques as a means of strengthening their as a means of improving the productivity of the organization. They have to develop a positive culture that specifically commits to perfectly handling public critiques. A positive method of dealing with public critiques will upgrade the British Petroleum company’s reputation. When the reputation of a company is moving towards the positive end the attitude of its stakeholders becomes fantastic hence ensuring achievement of business goals and objectives (Whetten & Cameron 1998, p. 377). For example, in an was allegation laid on the British Petroleum company that it had not provided final design drawings for drilling rig in the Gulf of Mexico. This design was to ensure that the machinery was built properly and made an approval for final use. The senior management of the British Petroleum company declined to discuss on these allegations asserting that they could not discuss on pending legal matters. In essence, considering that positively addressing this issue could have played an essential role in improving productivity of the organization, then they should have clarified there take on the matter despite of it being a pending legal matter. As early as when the alligator complained on lack of the design, the senior management should have taken a positive step towards it. Of course, the allegation came from a key stakeholder and it was the duty of the management to ensure that they satisfy his requirements. This would have affirmed that a high quality drilling machinery was going to be built and would meet the requirements of other stakeholders such as Environmental Protection Agency (Khurana & Nohria 2010, p. 401). However, since they had failed to address it at an early stage and now it had become clear to the public members that the company had some problem in addressing this issue. In sense, I claim that the senior should have agreed to discuss it despite being a pending legal issue. This could have cleared all the worries by various stakeholders such as shareholder. When a shareholder does not have a clear picture of what is happening in a company, it means his motivation to investing in that company will drop. In other words, this means the future of the British Petroleum company will be blurred (Gill 2006, p.111). Therefore, it is extremely vital for the senior managers of the British Petroleum company to ensure that they develop a positive and clear culture on addressing public critiques. This will aid them in providing a suitable whenever a critique comes by. In addition, this will ensure that the company views the critique, as its weakness and rectifying it will a positive way of ensuring productivity. In real sense agreeing to face the reality, will the company a huge amount of million dollars (Adair 2010, p.78). Avoiding to provide the design saves the company around three million dollars while the consequence of this ignorance is complete blowing of the oil machineries resulting to oil spill hence a huge loss. This ascertains that the when the managers adopt the coaching methodology specified earlier in this section, then its future will be highly positive. Stakeholders such as employees and shareholders will also be in a good position to give their best in ensuring success of the company (French 2011, p. 310). Secondly, in coaching the senior managers of the British Petroleum they should adopt clear guiding principles in handling public critiques. In this perspective, the managers should develop a principle of transparency in handling the critiques. It is clear that all stakeholders prefer dealing with transparent companies. My claim here is in relation to the public critique that the senior managers of the British Petroleum refused to allow inspectors to conduct inspection of the oil tanks in the Gulf. To the whole group of stakeholders, this brought to a question mark on the future of British Petroleum Company (Gill 2006, p. 99). To make things worse, the million dozens of oil spilled from the Gulf. This again meant that stoke holders lost their faith in the company. Clearly, this described that the company’s progress is not anywhere close to being good. If the managers had been transparent, then the problem with the tanks would have been solved earlier before it came to worse. Furthermore, I would address the importance of the senior management in practicing that there is awareness. In this sense, it is of great importance for the management to practice making all stakeholders on the issues addressed in all public critiques. In responding to the critiques laid upon them on the Gulf spill, the management should have made sure that all its stakeholders are made aware on the proceedings of the whole oil spill case. A company that makes sure that all its stakeholders are aware of all its proceedings is always in a good position to succeed in meeting its goals and objectives. Reflecting to a number of incidents in the Gulf spill the senior management of the British Petroleum botched in the whole management principle of stakeholder awareness (French 2011, p. 143). Public critiques such as the financial markets had reported that the worse was to be expected in the economic status of the British Petroleum Company. Obviously, a stakeholder such as a shareholder or creditor will not be motivated into investing with the company. In other words, it means a company like British Petroleum that employs high cost heavy machinery such as oil drilling machines will be lacking investment. Lack of investments in the company will result into a dark future of success. In addition, a quality-engineering student in the region could easily decide to go and work for another related company such as shell instead of working with a company that has no clear future. Again, this means the company that requires a scarce resource such as an engineer. In fact, a young engineering student would be a highly positive addition to the company’s future success. However, since these entire stakeholders were kept in the dark it meant they increasingly made to have a negative attitude towards the British Petroleum company. My claim here is if the senior management had a clear comprehension of these implications, then they should have made a positive progress by making all stakeholders on the realistic situation at hand. No matter how negative it was, being open would have built a high reputation of the company (Lustgarten 2012, p. 103). A shareholder would be informed that lack of high quality machinery and investment for the company was the main cause that they could not contain the situation. In this sense, every investor would motivated to business with the company having in mind that nothing is hidden and that investing in this high profile company will be a perfect business for him or her. Furthermore, in the side of an engineering student who is a scarce resource for a company like British Petroleum would be highly motivated in that he is assured that his knowledge is going to be put into practice and under an organized management. In handling of the whole Gulf spill situation the British Petroleum company appeared as if the senior management was not in control. These were highly revolving public critiques in the United States. The senior management of the company was indirectly disconnected in handling the whole situation. It was not in control anymore and it was clear that the United States, agencies had taken over the control of this whole situation. The senior management agreed to pay compensation to the victims of the gulf spill. This was good move to in that stakeholders were made aware of what the management did to aid the victims (Singhal 1994, p. 95). However, a question revolving in every stakeholders mind would on who exactly is handling the situation. In addition, if this is the case, it means an investor interested in doing business with this company can easily be drawn away from. If the management had come clear on the situation handling process, it would be easier for all stakeholders to aid the company solving the problem and move forward. In brief, practicing stakeholder awareness is a better way to handle company achievement of its set out goals and objectives (Adair 2010, p. 65). Again in coaching the senior management of the British Petroleum, it is vital that they ensure there is confidentiality whenever responding to public critiques. As said earlier, public critiques are perfect challenges for a company’s future success. However, confidentiality in their response is essential in maintaining the reputation of the company. There have to be a clear system stipulating to what extent company data can be revealed to public members especially after a great incident has happened. For example, a situation whereby of employees were not happy on the management of the company. An employee is a chief member for the company’s success (Singhal 1994, p. 60). Every senior manager of the British Petroleum company knew what exactly their employees felt on the status of their working condition. Immediately after the Gulf spill, the management knew that public members would interrogate its employees. If the feelings for all employees are as they are and the a big problem has occurred, the senior managers should have a first step by coming up a mechanism to ensure that information such as their dissatisfaction should be confidentially kept within the company jurisdiction (Lustgarten 2012, p. 201). That is the problem remains within the British Petroleum Company and promise on how it was going to be handled perfectly. However, the senior management ignored this essential principle of management. As a result all public members were made to understand that the real situation behind the management of the company. It came clear to all that the management never gave safety priority to its staff members. In addition, idea of poor wages, which made employees end up buying company shares to improve their economy, also became open to the whole society. Keeping in mind that British Petroleum is a large and high quality company expecting employees and investors from all over the world, this whole response strategy of the company’s senior managers largely affected the reputation of the company. In this sense, my claim is that there have to be a clear system for ensuring confidentiality between each senior manager, low-level managers, and all employees at large in relation to responding to the public critiques (Singhal 1994, p. 203). Lastly, in coaching the senior managers of the British Petroleum, it is vital for them while responding to public critiques they keep in mind the managerial principle that in case of any predicament management should clear reason and direction. Having this principle in mind is the best way in dealing with any public critique. Clearly, in all the responses, senior managers never gave the realistic reason for the Gulf spill. Neither did they give a clear direction of the company in its dealing with the predicament. The gulf spill led to loss of the company’s best engineers who are a scarce resource not mentioning that these engineers had their own families. Furthermore, spill was a big loss to the company’s economy status. The senior managers had to be pressed by the United States government in order to fund the compensation of the victims. To aid in solving this, they should have come clearly at clarified the real cause of the spill and further give a clear direction of how they were going to handle the whole predicament. Conclusion It is vital to note that the whole management of the British Petroleum Company redefines their responsibilities in ensuring that the company meets its set out goals. Currently it is evident that the progress of the company is not as expected. Clearly, no stakeholder whether employee, investor, shareholder, or a government agency will be motivated in doing business with the company (Hopkins 2008, p. 199). In other words, the company does not have a clear strategy for future success. Therefore, it is essential the leadership of the British Petroleum company keenly reflect on their management principles. References Adair, J 2010. Develop your leadership skills. Philadelphia. Bamberg, J 2000. British Petroleum and global oil: 1950-1975: the challenge of nationalism. 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