“BP is a multinational energy business that has 92,000 employees and operates in 175 countries. When a new chief executive was recruited internally at BP (Tony Hayward), he promised to improve the company’s disappointing performance by quickly changing its culture to become more innovative and responsive to its customers.”
Q: How easy do you think it is for a new chief executive to change the culture of an organization quickly? Justify your answer with reference to BP &/or other businesses that you know.
The BP Company has experienced a huge explosion at its Texas City Refinery in 2005, the oil spillage in Alaska in 2006 and also the Gulf of Mexico explosion in the BP oilfield in 2010, and these occurrences have had effects on the BP’s reputation and the business performance. As a new chief executive officer, Tony Hayward was recruited in June 2007 and he took over for BP's highly-respected former CEO Lord Browne. The new CEO of BP may be able to use his own leadership or management style to change the culture of the organization and also try to help the business to grow and improve better. However, the extent to which the effectiveness of his way of leading the business and how quickly it can be for change to eh business culture are depends upon different factors.
Firstly, Tony Hayward uses the democratic and paternalistic leadership style to manage the business. Hayward was describing as a typical command and control organization that is overly focused on cost-cutting and consumed with firefighting. According to the website, Hayward had shared his opinion of the culture of the business and three major points with other members of senior management. He stated that the BP is having the leadership style that probably is too directive and doesn't listen sufficiently well. The top of the organization doesn't listen hard enough to what the bottom of the organization is saying. BP has a management style that has made a virtue out of doing more for less...
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