Preparation to the Crisis: From all these previous accidents and experts opinion we can see it is very obvious that BP was not prepared to deal with such an accident. To prove this statement, Former BP CEO Tony Hayward admitted in his interview to Money Programme on BBC 2 that ―”BP’s contingency plans were inadequate‖, that BP ―was not prepared‖ for the Gulf oil disaster and was ―making it up day to day‖ in the early stages”. Tony Hayward also admitted that ―”BP was not prepared to deal with the intense media scrutiny over the Gulf oil disaster”‖ and that he felt he was ―”demonized and vilified”‖. After one month of this oil spill incident, the Wall Street Journal reported that Hayward ―”admitted that the oil giant had not the technology available to stop the leak”. He also mentioned, “it was probably true that BP should have done more to prepare for such an emergency”.
There was no proper organizational chart that can maintain a proper chain of command • Lack of Job Description and Specification There was no properly defined job description and job specifications due to which there was either misunderstanding of jobs to be performed or either many important positions were left empty in the organization. Moreover, larger number of jobs were handled by a single employee hence it was difficult to distribute rewards. • Cultural
As much as effective management of change is necessary for the survival of this organization, research has reported high levels of failure of most change programs initiated in organizations (Mullins, 2010). These poor success rates of change management process in the organization can be correlated with lack of effective action planning. To effectively identify the issues that require the organization to introduce changes, it is imperative to explore the theoretical approaches to change management related to the highlighted
The cost of resource allocation separately to the teams increased. • Dominant role of personalities - Standards were set by individuals rather than the company policy • No managerial expertise - The best engineer was the head of engineering. The source of authority had functional rather than managerial expertise • Displeased Board of Directors - Horizontal reporting structure of the functions displeased the Board of Directors. The board wanted a traditional hierarchical structure. Stage 2 – Ghosh hired external people experienced in management to head the teams Importance: This was the first step towards external integration which focussed on role assignment based on expertise.
However, John, Lang and Netter (1992) found during their research that managers usually blame external factors as the main causes of the crisis, and seldom mention the managerial mistakes and fails as the root of the crisis. Notwithstanding, Pearce and Robbins (1993) claim that the companies’ crises can be caused by a combination of internal and external factors (Faghfouri, 2012). Non-linear dynamics and complexity make a crisis hard to detect. A minor “trigger” initiates a destructive cycle of crisis escalation, which may then swiftly disseminate throughout the system, jumping from one system to another. Thus, it is almost impossible to predict
1 Oil’s Troubled Water British Petroleum (BP) is one of the biggest oil and gas industry in the world. They owned 21,000 services stations worldwide and their brand is most trusted in the world. Then an incident occur in 2012, where BP Deepwater Horizon oil rig has exploded that causes 11 deaths and oil slick at the Gulf of Mexico. BP is being fined billion of dollar by the US government and need to compensate the others that affected by it. 1.1 Political Factors Most of the oil reserved in the worlds are owned by the nation government.
BP is on the hook for the cost of the cleanup and already faces dozens of lawsuits from commercial fishermen, tour boat operators and beachfront property owners. The company has also set up a claims center at 1-800-440-0858.It’s not clear how much the company will have to pay out for those damage claims. The Oil Pollution Act, passed after the Valdez spill in 1990, created a federal trust fund with taxes paid by oil companies. That law caps BP’s liability at $75 million, but a bill introduced in the Senate Monday would raise that to $10 billion. The impact is potentially catastrophic; the Gulf coast is still recovering from Hurricane Katrina, and marine wildlife is already struggling with various man-made stresses.
The management usually tries to resolve the problem as quick as possible. “Blame shifts energy and focus.”“As a result of fear-based emotions linked to blame, staff shift their energies from the interest of the group towards self-preservation.” 3. Armchair error can actually result to single solution error, meaning only factor is considered in a confined time limit and the decision is made, whereas the other factors are just overlooked. “Blame creates biases.”“As mental energies shift to defending one's own position, biases are introduced that alter the accurate perception and assessment of situations.” 4. Sometimes unfair decisions are made by the management.
Moreover, attitude of the personnel change even though there is no changes in them. The result in that an organization has to change accordingly. o Deficiency in Existing organization: Sometimes, changes are necessary because of deficiency in the present organizational arrangement ad process. These deficiencies may be in the form of unmanageable span of management, large number of managerial levels, lack in co-ordination between various departments, obstacles in communication, multiplicity of committees, lack of uniformity in policy decisions, lack of cooperation between the line and staff, and so on. Beside these internal factors, there are two more internal factors that give rise to organizational
Errors occurrence in sharing patient’s information varied with team leadership style. Failure in planning and lack of collaboration varied with medical unit and team leadership. Failure in decision-making varied with medical units. Delegation of authority varied with positions. However specialist doctors witnessed errors due to the delegation of authority more than other.