BP OIL SPILL

British Petroleum Oil Spill

British Petroleum Oil Spill

Introduction

There is no doubt that there has been a central breakdown in process risk management, commonly used by organizations to establish procedures to safely manage the greatest of uncertainties of its daily operations. This means that if a company is going to drill a mile to get the oil then they should first make certain that all possible scenarios of failure must be are identified, evaluated, tested and implemented before that first barrel of oil is extracted. Furthermore, it is important that protocol of 24 hours should be applied to day to day activities that may be a threat to environmental well being, unforeseeable events involving human error or equipment failure must also be managed. Moreover, inadequate steps should have been put in place to evaluate worst case scenarios that is impacts associated with catastrophic failures of equipment or systems; establish policies and program to mitigate short and long term environmental risk factors and also assure that there are financial cushions (for instance, cleanup and reclamation bonds) that continue to hold those liable before they can run or hide.

Issue / Problem

British Petroleum is considered as one of the organization which is capable of making high profits despite the crisis that the economies has gone through in the recent past. British Petroleum has managed its strengths and resources very well to show its presence in the market but due to the occurrence of some events, the company has faced issues like the oil spill which made the company to face loss. The British Petroleum oil spill took place due to the absence of the management concern, so it can be said that British Petroleum is facing the management challenge regarding the effective and efficient leadership. The reason why the British Petroleum is facing the management challenge regarding the leadership include the inadequate steps, unable to evaluate worst case scenarios, unable to establish programs and policies to mitigate short term and long term ecological risk factors and also unable to assure the possible financial losses due to the oil spill.

Effect on Organization

Every action in the organization is a manifestation of power which is used by both managers and performers. Power manifests itself through the channels of power, which include the power of coercion, influence, expertise, information, official conduct, credibility, authority to award. When an individual affects the behavior of group members without the use of coercive forms of power, it is a manifestation of transformative leadership. The organization attaches great importance to the leadership of the need to select and nominate individuals for leadership positions, most suitable for management functions. The nature of transformative leadership manifests itself as personal qualities of humans and the environment in which the activities of the company.

Impact of Oil Spill on British Petroleum

The oil spill occurred in the Gulf of Mexico has spread to the United States and Barack Obama believes that British Petroleum should pay for their negligence. British Petroleum is willing to compensate the damages and ...