Question

ExxonMobile

1. a) Describe and critically evaluate ExxonMobile’s overall strategy and its corecompetency or competencies,

2. b) Describe and assess their organization structure,

- You need to research their organizational structure, describe it (include an organizational chart) and critique it.

(250-300 words each and provide the references with APA format)

Answer 1

a) Exxon merged with the other gas giant Mobil to become Exxon Mobil in 1999. The company has a worldwide presence, and ranks among the world's largest companies by revenue and market capitalization. It is one of the largest players within the oil and gas in the private segment. Exxon maybe also operating gas stations but its major activity is production where its efforts are largely concentrated. Exxon is a global organisation with an autocratic leadership style which has adapted to transformational leadership through introduction of change necessitated due to its Global presence. However, vestiges of leadership style always remain. The company is undertaken laudable initiatives for environmental protection and conservation of biodiversity. It has introduced innovative solutions embracing energy efficiency and reduction of emissions. However, the various scandals which have plagued the organisation, have resulted in tarnishing the image of the company in the eyes of the consumer irreparably. The organization has attained competitive advantage with its workplace safety leadership and commitment to providing adequate opportunity for growth and achievement to its employees. It has extensively adopted latest technology to retain leadership and sustainable competitive advantage while displaying ambidexterity in maintaining focus on constantly developing production while simultaneously exploring opportunities emerging within the industry for growth and diversification to maintain the level of growth and protect its position.

The inability of the leadership to take a stand and respond quickly in Crisis situations such as the oil spill in Alaska along with the scandal regarding the findings from the research and development activities of the company on climate change being misrepresented and hidden from the public to benefit the company clearly exhibited the lack of a strong and focused leadership intent upon building a socially sensitive and responsible organisation. Like many Global organisations the missions and vision statements of the company prove to be the probable attractive cover which serves to take attention away from what maybe bad inside and no efforts are detectable for implementation or adherence. The customer service provided by the company maybe qualitative but lacks the required warmth which is generated by employees working with an organisation with warmth inside it, where they experience inclusive management and every member is made to feel an important part of the organisation. This leads to employees experiencing responsibility, values and ethics with empathy from the management and leadership within the organisation which they imitate and reflect on to the customers they serve. This becomes difficult in Global companies which are more robotic and machine like in their management due to authoritative leadership with minimal delegation leading to insensitive treatment of the staff due to lack of effective flow of communication and most interaction being unidirectional in flow from top to down. It becomes very easy for a customer service team which is treated well itself to treat every customer with the same importance and respect that it is accorded within the organisation.

b) Structure of an organisation is based upon the framework the company utilizes for defining roles and responsibilities, demarcation of authority and power, along with the communication channel for flow of information throughout the organisation. Every organisation as unique requirements I need to select a structure that will address all needs and facilitate efficiency of all processes and the organisation as a whole by allowing for adequate flexibility for adaptation to changes due to critical situations in the internal and external environment, which require response and reaction within the organisation. The two basic types every organisational structure can be segregated into have been prescribed by Tom burns and GM stalker as mechanistic and organic structures.

The organizational chart depicts a clear mechanistic organizational structure with the Chairman and CEO having absolute control down the line vertically and horizontally. This type of organisational framework comprises a formal and centralized network with authority exhibiting a clearly defined hierarchy with top level management withholding most of the decision making power within their profiles. This type of structure is suitable for companies which have achieved stability by conquering the initial growth trajectory, and who operate within a stable and predictable environment. Exxon has achieved its major growth trajectory and is in the sustenance with expansion stage. Decision making itself is not a critical process as there is not much risk within the process due to not requiring complex decision making processes involving numerous decision makers at various level. Authority flows from top down with subordinates expected to obey orders and follow required instructions for executing them without questioning the rational behind the decision made by the top management. Flow of communication follows the flow of authority from top to down being uni-directional with minimal cross functionality integration between departments due to all jobs been stable, easy to control and requiring no modification or intervention at lower levels. Functional departments are operating as separate entities without much interaction or dependence. In short a perfect mechanistic structure exists which operates similar to an optimal machine which is in good condition and provides optimal output in an efficient manner with little requirement for maintenance or interference. The top management makes all decisions with regard to every process and department within the organisation formal communication for execution of the decisions flows through the chain of command to the specific departments and orders are executed in a perfect manner without any requirement for modification or change. This is the major weakness as implementing change, which is essential in the present dynamic economic environment, can be difficult in such organizations due to lack of flexibility and inability to make decisions or take initiative at every level. Innovative spirit is repressed with a mechanical approach to work encouraged resulting in lack of motivation and job satisfaction among employees as their basic needs as per McClelland are not met.

Transformational and dynamic leadership is a the need of the 21st century as adaptability is essential due to an extremely competent global environment, in the sense that, leadership should be confident in the initiating change, it is highly proactive and focuses on achievement of goals through motivation of the employees and Organization as a whole. This is a dynamic form of leadership and proposed to implement constant changes within the organization, through introduction of new ideas, as well as, dynamic analysis of the goals and the plans set to achieve them, with implementation of changes within them whenever and wherever required. This dynamic approach believes in motivating every individual and group to achieve personal goals through excellence in performance. This is the form of leadership embodies change and encourages individual growth is everything in developing future leaders. The goal of the organization is projected as the goal of every individual as inclusive management is a hallmark of this leadership style. As a result entire organization operates as one and becomes motivated to achieve organizational goals as part of personal goals because an individual grows along with the organization and relationship between the organization and the workers is cooperative and the growth of one simultaneously benefits the other. Such leaders always lead both from the front and from within, meaning they represent all the required leadership qualities, they exemplify leadership by themselves being super achievers and motivate the rest to follow by example. Thus, it promotes an environment of growth and learning within the organization which mimics growth for the organization externally.