Organizational Theory and Practice: BP CEO Leadership Analysis

This report provides an in-depth analysis of BP, focusing on the management style, principles, and functions employed by CEO Bernard Looney. It examines the organizational structure, highlighting changes implemented to enhance performance, along with an assessment of the organizational cultur...Read More

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

performance. To bring cultural change in company manager focus on adopting organizational
structurs so that work will be done in systematic manner that reflects positive change in
company.
 Functional structure- It refers to that structure in which employees are bifurcated as per
their skills and knowledge. It is mainly based on levels of hierarchy which involves
several department under a supervision of a leader (Jimenez, Valdez and Fasci, 2017). In
this every department is responsible for their work due to which they perform effectively
and productivity. In terms of BP, management adopts this organizational structure in their
working environment that represent clear hierarchy by reducing number of
communication channel. It also effective to clearly define the path for attaining goals.
 Divisional structure- It refers to that organizational structure in which company
grouping the several functional area into small divisions. In terms of BP, this
organizational structure is highly useful for getting successful results. Adopting this
strategy is highly useful to make quick decisions so that targets are attained on time while
implementing change.

Illustration 1: Source: Organisational structure of BP
Organization change defines process of decline, growth and transformation within a
company. To maintains and profitably accept changes organization need to follow proper
structure so that growth and development of an enterprise is to be maintained for a longer period
of time. In this CEO of BP focus on cultural change for increasing productivity and performance.
In this firm follows divisional structure so that task are to be completed without creating
conflicts and it also supports cultural changes in company. To bring positive change manager
focus on evaluating performance of manager and providing training session so that productive
results are enjoyed.

(C) Leadership style of CEO to enhance organizational effectiveness
Leadership style reflects as leader’s methods of providing direction, motivation,
executing plan etc. for maintaining organizational effectiveness for a longer period of time. This
includes various types of leadership style such as autocratic, transformational, participative etc.
that are useful to enhance success. In case of BP, few styles of leadership are demonstrated
below:
 Democratic style- This defines to that style of leadership where leaders of a company
give right to their employees to present their ideas and thoughts for organization success
(Im, Cho and Kim, 2019). In this British Petroleum CEO Bernard Looney should follow
this style of leadership so that high profitable results are to be enjoyed with employee
satisfaction. For instance- to launch new service and products and wants to gather more
customer attraction company needs unique ideas and this will gathered by involving
employees in decision making. It helps in providing successful results to firm
sustainability.
 Transformational style- It refers to the leadership style that mainly emphasis on
improving employees development and their desires. In context of BP, if leader should
adopts this style than they highly focus on enhancing employee’s interest. It helps in
offering successful results to an organization when firm wants to implement change
because of changes occur in business environment. It reflects competitive advantage to an
enterprise for long time. If leaders follow this style employees are encouraged towards
accepting change because of effective influencing power of a leader. It helps in attaining
objectives in the dynamic business environment that helps in maximizing profits.
By analyzing above leadership style BP, CEO Bernard Looney must adopts transformational
leadership style because in this leader influence their team members to accept change by creating
and innovative ideas that are effective for shaping the future of an business enterprise. In this
employees are also come from their comfort zone that support in developing their professional
career and also useful for company growth and sustainability in dynamic business environment.

(D) Analyse effect of power, influence and conflicts at BP
Power and influence defines to a fundamental phenomena that involves conscious
personality of human resource within a company. Power and influence within an organization
influence quality to cause and defend several activities. It reflects potential to influence and
guide human behavior within particular firm. In terms of BP, power and influence is highly
useful for managers because it helps in controlling and guiding staff members so that goals are to
be achieved in an appropriate way within a specified period of time. Both power and influence
play an importance role to get productive results. In concerned business enterprise decisions are
to be taken by those members who have power and authority to direct the man power for
effective working. In BP, manager focus on adopting suitable power practice which impact
positive on maintaining relationship between employees and employers. In this they follow
reward power where manager appreciating those candidate who have achieved their targets on
deadlines by giving them bonus, promotions perks etc.
Conflicts refers to a aspect that is perceived by oppositions of values, needs etc. among
employees and employers (Chumba and Mutinda, 2017). For example- In BP, conflicts may arise
due to ineffective communication and lack of planning due to this productivity of overall
company impacted. To improve performance and efficiency within a firm it is significant to
reduce conflicts so that market image and value is to be maintained. For this manager apply
Pondy's theory of conflicts that are presented below:
It refers to that theory which includes five stages such as latent conflicts, perceived
conflicts, manifest conflicts, conflicts aftermath. It is used by manager to resolve conflicts.
Latent conflict- This type of conflicts occur among participants and they are not aware
about it. It occur because of status inconsistencies between several teams within business
bureaucracy.
Perceived conflict- In this participants are aware that conflicts exits. In this conflicts
arise when team members are come together to attain goals but frustrated by the activities and
actions of other team that impacted their assigned work.

Felt conflict- It occurs due to stress and anxiety. In this a person quickly react
emotionally on certain situation that occur within company and due to this collaboration of
working will be impacted.
Conflict aftermath- It reflects outcome of conflicts within this manager of company
present solution to conflicts by providing solution to it.
In terms of BP, manager effectively use this conflict theory to reduce conflicts at every
stage so that effective relations are developed among members of company. It helps in attaining
goals and objectives effectively and efficiently on time.
(E) Discuss various types of motivation used at BP
Motivation defines as an aspect of guiding, initiating, influencing workforce so that
human resources represents their goal oriented behavior. In case of BP, manager focus on
applying maslow's need hierarchy theory so that successful results are to be enjoyed by a firm.
 Psychological needs- It involves core requirements of a person such as food, shelter,
basic salary, clothing etc. These needs are very basic essential needs on which manager
focus to maintain positive working environment and satisfy employees. In case of BP,
manager highly emphasis on employee basic salary, safe working environment so that
workforce feel safe and secured due to which they voluntary indulge in attaining goals
appropriately.
 Safety needs- This involves needs related to security that an individual person needs. In
case of BP, manager focus on fulfilling employees safety needs after satisfy their basic
requirements. In this manager offer insurance facilities, proper ventilation etc. so that
they feel safe at working area and performed task very prominently (Reedy, 2020).
 Social needs- It involves feeling of acceptance and happiness of a person. Fulfilling these
needs are very essential to get the proficient and productive work. In case of BP, manager
ensures that friendly environment is to be maintained for this they use participate and
transformation style. This helps in developing strong relationship between employees and
employers so that targets are attained in innovative manner.

 Esteem needs- This need reflects respect and self esteem of a person. To fulfill esteem
needs of employees is highly essential to encouraged them for productive working. In
terms of BP, manager praise and appreciate their workforce according to their talent so
that productive results are to be gained and an organization will survive for a longer
period of time.
 Self actualization needs- It involves high level needs where a person reached after
satisfying above all needs. In context of BP, manager examine employees performance so
that targets are attained effectively by assigning work to employees according to
individual capabilities. This helps in developing future career of an individual person.
(F) Use appropriate corporate examples to justify stand
There are several numbers of corporate examples that are used in a present time which
reflects company’s productivity and improving performance. The first corporate example is
Amazon that is a leading online business which earned huge amount of profits by using
innovative ideas in business operations such as delivering product and services to customers at
doorstep. That will impacted positive in their profits and sustainability (Spigel, 2017). In this
leader of a company adopts transformation leadership style along with high motivation practices
so that employees are satisfies to attain their targets on time. The second example is Marks and
Spencer that focus on exploring their business unit to online platform so that they target several
segment of customers for longer sustainability. In this participative style of leadership is very
effective within an organization to expand business online. This will reflects success in
marketplace for longer time period.
(G) Recommendations to increase organizational performance
As per above explanation several factors are to be recommended for BP to enhance their
overall performance and productivity so that it will sustain for a longer time period. Some
recommendations are presented below:
 To enhance overall productivity of company it is to be recommended that leaders must
focus on providing effective training and development session to their employees by
evaluating their performance. This helps in presenting the best work in a specified period
of time. In this firm also organize weekly meetings where manager assigned task as per

employee’s current skills and knowledge so that they keep on track related to progress of
team members.
 To enhance motivation management of an organization is to be recommended to offer
compensation, benefits, perks etc. according to needs and requirements of employees so
that they are satisfied with their working culture. This will helps in improving overall
proficiency of company.
 To maintain decorum for gaining higher success effective communication is to be
recommended to company. In this they adopt two way communications so that
effectiveness is developed for a longer period of time and an organization gain
competitive advantage in business industry(Ghorbani, 2018).
CONCLUSION
From above report it is to be recommended that management and leadership styles are
very prominent for success of a business enterprise. It helps in achieving a company vision on a
specified period of time. This report inculcates effects of power, motivation, and influence and
conflicts so those companies focus on removing negativity within working culture and
developing positivity so that employees are working effectively. This helps in gaining high level
of success in competitive business world. Further it involves several corporate examples to
justify stand that was done earlier. At the end it reflects several recommendations for enhancing
company productivity and proficiency.

REFERENCES
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Friesenhahn, M.J., 2019. The relationship between Authentic Leadership and Job Satisfaction as
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Im, Y., Cho, Y. and Kim, D., 2019. Family management style as a mediator between parenting
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Jimenez, M.B., Valdez, J. and Fasci, M., 2017. Gharacteristics and management style of
Mexican enterprises in the United State. Innovaciones de Negocios, 2(4).
McCay, R., Lyles, A.A. and Larkey, L., 2018. Nurse leadership style, nurse satisfaction, and
patient satisfaction: a systematic review. Journal of nursing care quality. 33(4). pp.361-
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Razak, A., Sarpan, S. and Ramlan, R., 2018. Effect of leadership style, motivation and work
discipline on employee performance in PT. ABC Makassar. International Review of
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Reedy, P., 2020. Impossible organisations: Anarchism and organisational praxis. ephemera:
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