Organisational Theory and Practice

ORGANISATIONAL
THEORY AND PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................................3
(A) Examine management style, principle and functions of management used by CEO of BP...............3
(B) Analyse any step taken by CEO to bring change in organizational structure in order to achieve high
performance and examine organizational culture .................................................................................4
(C) Leadership style of CEO to enhance organizational effectiveness ....................................................7
(D) Analyse effect of power, influence and conflicts at BP.....................................................................8
(E) Discuss various types of motivation used at BP.................................................................................9
(F) Use appropriate corporate examples to justify stand.....................................................................10
(G) Recommendations to increase organizational performance .........................................................10
CONCLUSION.............................................................................................................................................11
REFERENCES ..............................................................................................................................................12

INTRODUCTION
Organizational theory and practice is a significant concept within business industry to
examine business issues and benefits. This helps in maximizing proficiency, productivity due to
which company will sustain for a longer period of time. This report is based on BP that is largest
multinational oil Gas Company, headquartered on London, UK. This report includes
management style of CEO Bernard Looney along with principle and functions of management. It
also includes organizational structure, leadership style that enhances organizational
effectiveness. This involves effect of power, influence and conflicts along with types of
motivation used at BP.
A present issue in BP- Due to pandemic uncertain challenge is faced by the BP
Company related to drop in demand that has sent prices plummeting. Due to price complicates
company offers cheap oil that looks less attractive (A decade after Deepwater, BP faces new
existential challenges, 2021).
(A) Examine management style, principle and functions of management used by CEO of
BP
Management style
Management style refers to a framework that helps manager to handle situations by
expressing style of management within company. There are various type of management style
such as autocratic, bureaucratic, participate etc. which is effective for company to maintain
proficiency and productivity (McCay, Lyles and Larkey, 2018). Management style helps and
supports CEO of business firm to direct their employee’s appropriately for solving issues. In
terms of BP, CEO Bernard Looney adopts participative style of management where manager
gives the right to every employee to participate in decision making process by suggesting their
ideas and views so that best alternative is to be selected for fulfill business requirements. This
management style also encourages employees to work effectively in relation to meet
organization objectives.
Principle of management

It refers to that aspect which supports manager to plan, organize, control and supervise
team mates and other resources effectively for getting profitable results. In context of BP several
principles are presented below which is adopted by CEO Bernard Looney:
 Division of work- According to this principle CEO of BP bifurcate the complex task into
small segments as per ability and capability of employees to perform (Razak, Sarpan and
Ramlan, 2018). This helps in gaining profitable results.
 Equality- As per this principle company treats their employees equally so that they
perform their task appropriately. In terms of BP, CEO Bernard Looney gives equal right
and pay to their working employees according to their ability so that objectives are
attained on time.
Functions of management
There are several functions which are elaborated in relation to BP Company:
 Planning- This management function helps CEO of BP to take an effective decisions
related to set aim. In this CEO Bernard Looney prepare proper plan to enhance efficiency
so that goals are attained on time.
 Organizing- It is an essential management function that reflects systematic work to
reached targets (Friesenhahn, 2019). In this CEO of BP delegates authority and
responsibilities to talented workforce so that targets are achieved on time and in
systematic manner.
 Directing- In this CEO of BP focus on adopting several methods related to encouraging,
influencing and leading people towards reaching the company objectives.
(B) Analyse any step taken by CEO to bring change in organizational structure in order to
achieve high performance and examine organizational culture
Organization structure is a procedure that reflects how certain activities are supervised to
attain objectives of a company. It includes rules, regulations and responsibilities that help in
maintaining flow between different levels of a firm. In case of BP, several organizational
structures are to be presented below that helps in bringing change and enhancing overall