Organizational Structure, Management Innovation, and Resolute Mining

This report analyzes the organizational structure and effectiveness of Resolute Mining Company, focusing on its impact on management innovation and overall business performance. The study examines how Resolute's structure supports strategic development and innovative changes within its Australian and African mining operations. It investigates the company's business strategies, including its approach to corporate governance, communication, and human resource management. The report highlights how Resolute's organizational structure, including its executive team and operational segments, facilitates innovation through digital technologies and strategic initiatives like virtual reality training and ICT infrastructure. Furthermore, it provides recommendations for enhancing risk management and employee performance, suggesting the application of 360-degree feedback and advanced risk analysis methods to improve operational efficiency and safety. The conclusion emphasizes the importance of innovation and organizational change in achieving sustainable business performance within the dynamic mining industry.

Student Name
INSTITUTIONAL AFFILIATION(S) |
Organizational Structure and Effectiveness
RESOLUTE MINING COMPANY

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Table of Contents
Executive summary......................................................................................................2
Introduction...................................................................................................................3
The organizational structure of Resolute......................................................................3
Business strategy of Resolute......................................................................................5
Impact of Resolute structure on management innovation............................................6
Impact of the Resolute structure on business performance.........................................7
Recommendations........................................................................................................8
Conclusion....................................................................................................................9
References.................................................................................................................11

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Executive summary
This report will find the effect company structure have on management
innovation and how business performance can be increased through innovation and
structure. To ascertain the findings, this report will analyze innovation management
and the structure of Resolute Mining Limited operating in Australian and African
mining industry. The main scope behind preparing this report is to find how strategic
development and innovative change boost organizational performance. This report
will identify the reason behind Resolute success and how innovative measurements
and corporate structure support continuous development in the firm. To support the
analysis, this report will utilize academic sources and management theories
concerning innovation management and business performance along with
information in business practices conducted in the mining sector. The
recommendation made at the end of the report will act as additional strategies to the
firm's existing strategy which will help Resolute gain performance levels in a superior
way.

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Introduction
Successful innovation is considered as the core reason for providing a
competitive advantage in contemporary organizations and is very critical for enabling
long-term survival in them. While new-fangled innovations arise each day, there are
many forms of innovation introduced by Resolute Mining Company which shows how
innovation in business structure and strategies can enhance organizational
performance. Operating in gold mines in Australia and Africa, Resolute is one
successful company that is performing tremendously since the past 30 years,
producing not less than 8Moz of gold till now.
The firm owns four gold mines and flagships its asset among world-class
Syama Gold Mine located at Syama (Mali) where each year around 300,000 ounces
of gold can be mined from existing mining infrastructure. At present, Resolute
commissions fully automated underground gold mines that deliver large scale
operation at low costs and with a predictable mine life beyond fifteen years. Another
mine located at Senegal, Mako Gold Mine and Ravenswood in Australia is of
superior quality with low-cost assets and produces around 140,000 ounces of gold
annually. The firm trades under the Australian Stock Exchange along with the
London Stock Exchange with a ticker RSG (Resolute Mining, 2019).
The organizational structure of Resolute
According to Kudelko (2016), the mining companies are referred to as an
entity performing exploration of minerals and valuable deposits. Under such
premises, mining companies usually face several legal and formal obligations
whether it is a privately owned or state-owned company. Operating under the
leadership of John Welborn, Resolute identified three primary operating segments in
its management which are directly reviewed by the CEO and his executive team.

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This helps top executives determine the allocation of resources as well as
organizational performance. The exploration team of the firm control's expenses and
other cash flows that are involved in the operating activities i.e. gold mine facilities.
The finance department takes the lead where capital is required to be determined for
undertaking pre-feasibility study and gaining access to commercial and technical
viability while extracting minerals from mining till development phases. The Board of
the company follows a Board Charter which outlines every business function
reserved to the top executives but is delegated to the management of the firm
(Resolute Mining, 2019).
The structuration of mining firms consists of several formats designed in a
way so that every individual of the company can contribute their performance to
meet organizational goals. Structure, on the other hand, is primarily defined as a
combination of various processes and organizational elements through official
bonds, technology, and procedures (Al-Qatawneh, 2014). It is also considered as
strategic management in mining firms as it helps in describing static and dynamic
parts that remain interrelated in the firm. Similarly, The Board of Directors in
Resolute are responsible for overall business performance and management,
corporate governance and strategic decisions so that accountable corporate
performance can be delivered in accord with the company's mission and vision
statements (Mining Review Africa, 2016). As a part of the responsibility, the CEO
and the Board of Directors provides strategic directions to the employees so that
performance can be maximized, and appropriate value can be generated for
company shareholders. Financial gains and sustainable growth measurements are
also considered while monitoring financial and operations positions in Resolute to

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ensure risk faced are identified be-forehandedly and mitigated as soon as possible
(Resolute Mining, 2019).
Business strategy of Resolute
Business strategy is defined as a set of large-scale plans which helps the firm
to interact with the internal and external environment to accomplish long-term and
short-term gains. Ajagbe, Peter, Udo, Uduimoh, & Akpan (2016) posit that business
strategy is an actionable plan for resource allocation designed to enhance business
performance. Contemporary organizations follow two key business strategies that
are based on analytical and conscious factors, involving close assessment of the
organizational structure, competitive strengths, internal weaknesses, and market
position. Looking upon the Resolute business strategy, the firm follows strategic
business policies in every level starting from policy development till financial gains
are realized through it. The firm holds a strong position in the Australian marketplace
due to corporate strategies reflecting environmental responsibility and effective
stakeholder management. The annual reports of the firm reveal that the Resolute
strategy considers enabling a standard code of conduct that is followed by every
department in the organization. For example, every law and legal policy related
matters are maintained and followed by the legal department so that applicable law
in African and Australian legislation is followed precisely.
Communication strategy is another remarkable feature of the firm revealing
innovation in its business strategy. According to Sterpu (2017), communication
strategy in firms promotes, explains and articulates the organizational vision and set
of principles. It helps in creating a smooth flow of information through unified
communicating elements that link several business activities and objectives in a
manner that looks appealing to the stakeholders. Accordingly, the corporate affairs in

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Resolute reflect planned and sustainable communication strategies that aid the
development and maintenance of positive organizational culture as well as public
relations. For instance, the firm's operational equipment is issued to selected
personnel’s only so that they are used within security guidelines, thereby avoiding
leakage of critical matters and disseminating information that can cause illegal,
hateful, discriminatory and other prohibited functioning. Other than this, the firm
considers giving significance to the role of human resource managers to strategize
information, culture, and people to expand continually with the help of strategic
planning, implementation, and development thereafter. The strategies related to
overseas business follow the development of new technological devices and
systems which can support operation and financial procedures of the firm (Resolute
Mining Limited, 2018).
Impact of Resolute structure on management innovation
The organizational structure of successful companies evidences on how
innovation plays a critical part in accomplishing long-term profits and sustainable
growth. Successful firms are those that comprehend significance behind the
innovative business practice and how to respond according to the change required,
labelling themselves as ‘being innovative’ (Khin, Seng, Mohammad, Ying, & Yeap,
2016). As identified above, the Resolute corporate structure completely supports
innovation and development by considering bringing necessary change within the
company. In the year 2016, Resolute implemented a new and innovative
management model that restructured its senior executive groups and commencing
the new CEO. The changes further develop new roles of six key business functions
that are designed to promote innovation improved communication and growth in the
firm.

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The top executives broadened in numbers i.e. from three to six who report
directly to the CEO regarding core business functions such as finance, project
delivery, operations, people, corporate strategy and information technology
(Resolute Mining Limited, 2016). According to Wadood, Gharleghi, & Samadi (2016),
“Effective leadership is significant to execute change in the management" (p. 129).
And in the case of Resolute, it can be said that digital technologies have given shape
to its corporate structure to manage business operations successfully in a complex
and dynamic digitized environment. For example, the ERP systems deployed to
replace traditional and standalone information systems that are further integrated
with cloud-based technology accessible from Resolute websites. Such innovation
has leveraged IFS global deployment abilities which supports business processes
within every department of the firm like documentation management, operations,
supply chain, logistics, enterprise asset management, safety, and environment, etc.
(IFS, 2019).
Impact of the Resolute structure on business performance
Fast-changing requirements of businesses have made many companies face
various kinds of challenges to become competitive and innovative at the same time.
Qunhui & Yang (2011) states that structure is the initiation point in the organizations
from where positions and roles of hierarchy and plan of accountability are
determined to apply mechanisms required for problem-solving and business
integration. Therefore, it can be said that to reach to the next performance level,
organizations need to analyze business events from lower levels and approach
management with specific risk control systems like change management, audits,
supervision control, etc. In Resolute business, it is seen that the firm has raised

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performance expectations through the implementation of transformational growth in
its internal management systems (Resolute Mining Limited, 2016).
The CEO of the firm believes that to perform business successfully in
Australia and Africa, Resolute requires goodwill and permission from local
communities' bedsides gaining governmental support. Henceforth, the firm ensures
that the safety, security, and health of every employee is undertaken by the firm's
management so that any harm to people and the environment are avoided, leaving a
positive heirloom in communities the firm performs with. For instance, the firm
implements innovative training and development programs with the help of virtual
reality techniques that helps workers in the mining field perform effectively. The
prompt tracking and tracing of individuals through cloud-based trackers assists
mangers while they are present in the field along with initiating rescue operations at
the time of emergencies (Resolute Mining Limited, 2016). Other than this, innovative
ICT infrastructure has helped the firm enable the smooth flow of information within
every department through which every business strategy is executed in accord with
key organizational goals (IFS, 2019).
Recommendations
The organizational structure includes many hierarchical constructs that reveal
the financial and operational performance of the organization like market contribution
and product development. In literature, organizational performance and innovation
have been inter-linked and given much significance, especially when the business
operates in a critical industry sector such as mining (Kudelko, 2016). As Resolute
deals in the mining sector that remains prone to accidents and fatal injuries, the
application of suitable risk management and analysis methods can be recommended
to mitigate dangers in its work sites in a pre-planned way. Since Resolute operates

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in the Australian mining sector, it develops its risk management plan according to
AS4360- Australia Standard for Risk Management.
Though the company follows such standards, it can enable analyzing
quantitative and qualitative risk approaches with the help of technology and
innovative apparatuses so that risk level at every place is assessed simultaneously.
Further, implementation of risk analysis frameworks like HAZOP, ETA and FTA can
help management understand risk levels to aid risk prevention plans appropriately
(Tripathy, n.d.). To boost the performance level, the application of 360-degree
feedback can be recommended to Resolute management to enhance the
performance level of every employee in the firm. 360-degree feedback not only
develops technical competencies but also develops managerial competence through
talent development procedures involved which can entail necessary features of the
mining industry to educate Resolute staff (Hoek & Schultz, 2013).
Conclusion
The business structure and strategy of Resolute reveals that the management
of the firm considers innovation in its business operations and strategies through
which overall business performance is enhanced. Bedsides, the firm considers
organizational change as required by contemporary dynamic business environment
which shows how Resolute responds to the legislative environment and innovative
measurements for identifying new opportunities. The above analysis made of the
impact business structure has on its performance and management innovation
states that strategic planning and control in Resolute facilitates long-term planning
and strategic management so that future growth is realized sustainably. Innovative
measurements like organizational change, an adaptation of ICT, re-designing of
executive roles and risk management techniques create a link between Resolute

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business structure and performance alongside reflecting a strong corporate
structure. This report concludes on the note that Resolute ensures exploitation of
available resources in an optimum and creative manner along with adopting
innovations to create a flexible organizational structure, giving the world an example
of how innovation management and structure can enhance business performance.

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References
Ajagbe, M. A., Peter, O. F., Udo, E. E., Uduimoh, A. A., & Akpan, S. E., 2016.
Business Strategy as a Contributor to Organizational Performnace. International
Journal of Advanced Academic Research, 2(3), pp. 1-19.
Al-Qatawneh, M. I., 2014. The Impact of Organizational Structure on Organizational
Commitment: A Comparison between Public and Private Sector Firms in Jordan.
European Journal of Business and Management , 6(12), pp. 30-37.
Hoek, L. v. & Schultz , C., 2013. Performance Management and Remuneration as
Main Dimensions of Talent Management in a Natural Resources Mining Company in
Africa. Technology Management for Emerging Technologies, pp. 1935-1943.
IFS, 2019. Resolute Mining Digitizes Business with IFS Applications in the Cloud.
[Online]
Available at:
https://www.ifsworld.com/corp/news-and-events/newsroom/2019/08/14/resolute-
mining-digitizes-business-with-ifs-applications-in-the-cloud/
[Accessed 04 10 2019].
Khin, E. W., Seng, T. L., Mohammad, N., Ying, C. W., & Yeap, L. W., 2016.
Innovation and Business Performnaces: SMEs Case Study. Asian Journal of
Management Sciences & Education, 5(1), pp. 94-101.
Kudelko, J., 2016. Structurization of mining companies. Mineral Resources
Management, 32(4), pp. 157-180.