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Business

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by

Harveen Kaur

on 12 September 2013

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Transcript of Business

STRUCTURE & CULTURE
NAMES
BHP BILLITON.
JACQUELINE BENNETT
HARVEEN KAUR
MAX KOUMARELAS

BHP Billiton
Largest diversified natural resources company
BHP Billiton's emphasis on Integrity
Organisational Culture
Shared values, principles, traditions and ways of doing things that influence the way organisational members act.
Create a long-term shareholder value!
Amongst the world's top producers of major commodities.
Divisional Structure
- Two different companies
- Customer driven focus

Advantages & Disadvantages
Advantages
Cost
Unified Structure
Working in
a Team
Efficient & Effective
Easy performance measure.
Disadvantages
More Division
Focused.
Determines 'how things are done around
here'
Attention To Detail
Degree to which employees are expected to exhibit precision, analysis and attention to detail
"establishing a high-performance culture in which all employees accept responsibility and are rewarded for results"
- Marius Kloppers
Outcome Orientation
The degree to which managers focus on results or outcomes rather than on how these outcomes are achieved
Integrity as a key aspect of BHP Billiton's organisational culture
"We care as much about how results are achieved as we do about the results themselves…"
- Marius Kloppers
People Orientation
The degree to which management decisions take into account the effects on people in the organisation
Thorough hiring policy
Qualities:

Team-orientated
Taking responsibility
Accepting constructive criticism
Co-operative
Paid Parental Leave Policy
Announced in 2009
18 weeks
Full pay
Both mothers and fathers
Same-sex couples
Adoptions
Team orientation
The degree to which work is organised around teams rather than individuals
Culture
Kloppers asks three questions when hiring:
Do they have good ethical values
Do they want to work in a
team
?
Are they prepared to
accept criticism from peers
and use that to
improve the team
?
Specialised teams
Aluminium
Base metals
Diamond and specialty products
Energy coal
Iron ore
Manganese
Metallurgical coal
Petroleum
Stainless steel materials
Aggressiveness
The degree to which employees are aggressive rather than cooperative
Marius Kloppers' management style focuses on teamwork and team-building
Stability
The degree to which organisational decisions and actions emphasise maintaining the status quo
Hunter River
Mediation Project
800,000 cubic metres of contaminated sediment removed
Won the 'Award for Environmental Best Practice Program' at the 2011 World Environment Day Awards
Hunter River in Newcastle
Economic stability:

Branching out into
sustainable
technologies

Good public image

Internationally
recognised

More work
=
more jobs
Rejection of the
status quo:

Investing outside
of mining

Leading in an
innovative and new
frontier

Places innovation at
the forefront of
BHP Billiton's
organisational
culture
Innovation and
risk-taking
The degree to which employees are encouraged to be innovative and to take risks
Innovation is key to
the development and growth
of the company
Innovative "customer and market-focused solutions" are highly sought after
- Kloppers
Hunter River Mediation Project an example of innovation
Types of organisational structures:

- Simple Structure
- Functional Structure
- Divisional Structure
- Matrix Structure
What sets them apart?
Contingency
Variables

Mechanistic
vs
Organic
Mechanistic
Informal Communication
Clear rules
Contingency Variables
Strategy
Organic
Adaptive Duties
Size
Technology
Environment

“represents the commitment by BHP Billiton to uphold ethical business practices and meet or exceed applicable legal and other requirements. The Code is applicable throughout BHP Billiton, regardless of location or role.” – BHP Billiton, Annual Report 2012

External Factors
BHP Billiton
Exchange Rates
Demand
Government
Policies
Land Rights
Regulation

Which contingency variable do you think has been the most influential in shaping the mechanistic structure implemented by BHP Billiton?

Is the divisional organisational structure the most effective and efficient for BHP Billiton to use?
Siemen's
"Bribery was Siemen's
business model"
New leadership
Selection Process
Training
Empowerment
&
Leadership
Evaluation
&
Rewards
Conclusion
Rigid hierarchial structure

Formalised communication channels
Innovative
Flatter structure
Known Duties
Divisional Structure
Advantages:
Unified structure

Efficient and effective

Working in a team

Easy performance measure
Disadvantages:
Cost

Goals may become division focused, not organisation focused
Influence of contingency variables
Size
Departmentalised structure
Strategy
Affects structure
Technology
Raised efficiency
Organisational Culture
Team orientated
People orientated
Co-operation > Aggressiveness
Forward
thinking
Sustainable
technology
Integrity
Selection
process
Only hiring those who exhibit integrity
Policies and
training
Rewards
Focus on ethics and integrity
Peer-nominated for ethical employees
Reference List
Given the multi-national nature of BHP Billition, do you think that its organisational culture is appropriate?
Co-operation and Teamwork
Integrity
Sustainable Technology
People orientation

BHP Billiton 2011, Working with Integrity – Code of Business Conduct, viewed 3 September 2013 < http://www.bhpbilliton.com/home/aboutus/ourcompany/Documents/2012/BHPBillitonCodeofBusinessConduct_2012.pdf>


BHP Biliton 2012, What we value – Annual report 2012, viewed 31 August 2013 http://www.bhpbilliton.com/home/investors/reports/Documents/2012/BHPBillitonAnnualReport2012.pdf

BHP Billiton 2013, Our Company, viewed 5th September 2013 <http://www.bhpbilliton.com/home/aboutus/ourcompany/Pages/default.aspx

Hearst Communications 2013, Advantages & Disadvantages of Divisional Organizational Structure, vied 5th September 2013.
http://smallbusiness.chron.com/advantages-disadvantages-divisional-organizational-structure-611.html

Yeager, M 2012, Technology, strategy and the growth of gas as a source of global energy, viewed 8 September 2013 < http://www.bhpbilliton.com/home/investors/reports/Documents/2012/120514_APPEAConference.pdf>

BHP Billiton 2011, Working with Integrity – Code of Business Conduct, viewed 3 September 2013
< http://www.bhpbilliton.com/home/aboutus/ourcompany/Documents/2012/BHPBillitonCodeofBusinessConduct_2012.pdf>


BHP Biliton 2012, What we value – Annual report 2012, viewed 31 August 2013 http://www.bhpbilliton.com/home/investors/reports/Documents/2012/BHPBillitonAnnualReport2012.pdf

BHP Billiton 2013, Our Company, viewed 5th September 2013 <http://www.bhpbilliton.com/home/aboutus/ourcompany/Pages/default.aspx

Hearst Communications 2013, Advantages & Disadvantages of Divisional Organizational Structure, vied 5th September 2013.
http://smallbusiness.chron.com/advantages-disadvantages-divisional-organizational-structure-611.html

Yeager, M 2012, Technology, strategy and the growth of gas as a source of global energy, viewed 8 September 2013 < http://www.bhpbilliton.com/home/investors/reports/Documents/2012/120514_APPEAConference.pdf>

Robbins, SP, DeCenzo, D, Coulter, M & Woods, M 2012, Management: The Essentials, Pearson, Sydney.
Full transcript