Introduction

Organizational Structure at BHP Billiton

Write about the Advantages and Disadvantages of Organizational Structure at BHP Billiton

Introduction

Organizational structure answers the fact how the organization aims is needed to be attained through the process of coordination, task allocation and further the process of task supervision. Thereby, the responsibilities and function must be allocated in the organization depending on the selected structure. The structure further ascertains who wants to undertake specific decision that means the organizational structure ascertains how much the decision is making power every entity in the organization contains.

Mechanistic Vs. Organic

Two conflicting manner of development of an organizational structure can be seen that is the mechanistic and organic. The mechanistic structure has a major reliance on the process of specialization on part of every employee and hence expected to work in an independent manner and concentrate on specific task. In such a scenario, the authority hierarchy is defined within the pretext of the organization and hence everybody must understand the limitation of such an influence. This pertains to the further traits that are the mechanistic structure depending on the vertical communication meaning that decision making is centralized and comes from the higher authority in the organization (Rahman, Partiwi & Theopilus 2021). Mechanistic system pertains to the stern standardization so that process can be imitated in every organization branch. The codes, rules and communication happen through written documents within the organization. In general the structure comprises that the subordinated are loyal to and prepared to be governed by the highe authority in the organization. Hence, the focus is provided on the position in the organizational network instead of people who hold the position.

Advantages and disadvantages

This is in opposition to the organic structure that is oriented towards the link between group and employees instead of the specialization that is independent. Employees in the organic structure are needed to regularly work in tandem and ensure that the tasks are coordinated. There appears no real hierarchical structure but the teams are mainly responsible for the integration of various areas in the organization. This can be linked to decentralization in an organic structure that looks after the various aspect of the organization that is delegated. This even depicts that the communication in the company is horizontal because various department needs to be in link so that the organization can be governed (Rahman, Partiwi & Theopilus 2021). There is little usage of standardization and most of the process happens in an ad hoc manner that enables employees to coordinate in a personal manner and better link with each other. Further, it even pin point that higher verbal communication exist as compared to the written communication. The organic structure values the commitment of the employees to the desired tasks instead of focusing on the process of loyalty and obedience. Thereby, the organization is mainly a people’s network within and every of whom carries various potential and capacity.

BHP Billiton: Mechanistic Structure

BHP Billiton organizational structure can be commented as the mechanistic structure as the arrangement of the hierarchy within the organization is delayed. The top management comprising the CEO and the BOD have immense power of decision making in comparison to other employee. It even depicts that centralization is presence with BHP Billiton which is different from the model of delegation utilized in the organic structure. As per the BHP annual report t can be stated that the company’s operating model stress upon the common system, as well as process and even the common planning followed by the reporting. This denotes that the company is strongly attracted towards the process of standardization of the process for every section and the emulation of the branches. It even has clear plans that the entire company comprising of the offshore branches must adhere to. This is different from the ad hoc coordination that happens in the organic structure. Hence, it can be clearly commented that BHP Billiton is more attracted towards the mechanistic structure of organization.

Manufacturing companies like the BHP observes the mechanistic model to be effective in a higher fashion as the organization is large and this structure helps the company in keeping a strong grasp over the sections (BHP 2022). The process of standardization ensures that despite the organizational departmentalization the organization remains to work under a single framework. The mining business is stable which ensures that the mechanistic business is better suited. On the other hand, organic structure is best suited for companies that follows adaptation. For instance, the mechanistic model is well adapted as per the scenario. However, some elements pertaining to the organic structure needs to be followed for attaining the maximum efficiency. For example, mining technology undergoes change and hence there must be higher flexibility within the organization for quickly adapting to the new technology for gaining efficiency. The company can further attain from the departmentalization degree as the decision making capacity depends at the top management (Fortado & Fadil 2012). Hence, a system of decentralization will delegate higher responsibility to the branches and thereby in turn can lead to higher commitment from the employees towards the organization.

Organizational culture

The organizational culture is mainly an organization personality that it strives for. BHP organizational culture can be viewed from the core values of the organization. As per the annual statement of the company it is stated that the integrity, performance, sustainability and accountability are the core value of the organization (Smollan & Morrison 2019). One of the major element for ascertaining the organizational culture is the orientation of the people that means the impact of people decision is mainly accounted for and BHP further values the employees through encouragement of the methods that is safer, as well as productive (BHP 2022). Another benefit of the organizational culture is that the company is able to address the current issues of the company. BHP being a mining company has strike upon the sustainability impact and made investments for ensuing a practice of sustainability. In the recent times, it is noted that more companies are coming under pressure as the environmental damage is hurting and BHP is undertaking measures to overcome such.

Conclusion

In conclusion it can be commented that the organizational culture of BHP laid stress upon the enhancement of the employee’s capabilities and rewarding the performance of the company. The company further strives for trust from the end of the stakeholders by way of impactful communication and assurance of the goals. From the overall discussion it can be commented that the hierarchy of the organization is an important consideration and plays a leading role when it comes to defining of the role, function and the reporting process. It needs to be ensued that every employee is having the desired set of information and hence coordination happens to be the best. Overall, it can be commented that the organizational culture has both pros and cons however the business needs to perform in a manner that helps to extract the best of result from the culture.

References

BHP. (2022). Creating a culture of inclusion. Retrieved from: https://www.bhp.com/news/articles/2019/10/creating-a-culture-of-inclusion

Fortado, B., & Fadil, P. (2012). The four faces of organizational culture. Competitiveness Review, 22(4), 283-298. doi:http://dx.doi.org/10.1108/10595421211247132

Rahman, A., Partiwi, S. G., & Theopilus, D. S. (2021). University organizational culture mapping using organizational culture assessment instrument. IOP Conference Series.Materials Science and Engineering, 1072(1) doi:http://dx.doi.org/10.1088/1757-899X/1072/1/012069

Smollan, R. K., & Morrison, R. L. (2019). Office design and organizational change: The influence of communication and organizational culture. Journal of Organizational Change Management, 32(4), 426-440. doi:http://dx.doi.org/10.1108/JOCM-03-2018-0076