In the following essay, we will cover ExxonMobil’s principles of organization to determine how they arrange employees and jobs so that work can be accomplished and goals can be met. ExxonMobil’s multiple geographic markets and departments demand diverse leadership styles depending upon the situation, task, and group. Finally, we’ll examine how ExxonMobil adapts and adjusts when encounter a paradigm shift. In terms of organizational structure, ExxonMobil has developed a global business organized around different important markets. In a large organization such as ExxonMobil, decisions have to be made pertaining to the delegation of a variety of tasks, so procedures are established that assign responsibilities for various functions. The culture is one that agrees on the assumptions, values, and norms of organization members and their behaviors. Members of an organization, such as Exxon soon come to sense the particular culture of their organization. Culture is really difficult to express specifically, but everyone knows. “Taking on the world’s toughest energy challenges” encapsules Exxon’s culture. From here, you can have a taste how ambitious Exxon is. In fact, this could be why Exxon has been dominant for so long. Leadership is an ambiguous term; it is defined differently depending on cultural beliefs, organizational culture, generations and personal beliefs. To become an effective and efficient leader, it is important to take all of this into consideration. Rex W. Tillerson, is ExxonMobil’s CEO managing of one of the world’s largest energy companies. Under Tillerson’s leadership, ExxonMobil has been successfully and its stock has done well on the S&P 500. In a recent development, ExxonMobil had seen a paradigm shift from being uninterested in alternative energy to announcing a $600 million investment to develop next-generation bio-fuels from algae which sends a strong signal to the investment and technology community that alternative energy is seen in a different light by this conservative and traditional company.
1) Describe the basic organization structure of the enterprise. 2) Does the structure match the strategy of the enterprise? If it does, explain how. If it does not, explain why not, and outline what should be changed to bring strategy and structure into alignment. Chapter 11-
1) Review the basic structure you described in Chapter 8 for the organization you are studying. To what extent does the structure organize people into teams?
In the beginning, Exxon had a unitary, or functional, organization structure. This demonstrated a relatively high degree of centralization of managerial authority. Exxon has always been characterized by a very strong degree of centralization. However, the merger with Mobil brought about significant organization structural changes. First and foremost, ExxonMobil has moved from a multifunctional, geographically based regional organization to twelve global functional businesses organized in four core business areas. Each of the functional units is responsible for their worldwide operations and performance. After the merger, therefore, the new company has somewhat relaxed the very strict central control of the organization (Skiaerseth). Exxon Mobil believes they are most profitable as a company by sticking with two industries, supplying oil for transportation and second, gas for power markets. Exxon’s strategy is related diversification. They believe diversifying horizontally into alternative technologies would not be a good corporate strategy at this time because they do not anticipate substantial profits. In addition, they do not have the needed competencies to make it a successful venture. Another part of Exxon’s corporate strategy is that they are vertically integrated, meaning they have moved both upstream and downstream to control the businesses that supply inputs and the businesses that use the outputs. Exxon has instituted vertical structures...
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