EXXON MOBIL CORPORATION

Exxon Mobil Corporation

Exxon Mobil Corporation

Introduction

In this report an organization structure has been designed to support organization strategy. Promoting innovation is usually a key consideration in the formation of the structure of the organization. In the dynamic international that currently faces companies, innovation is the key stepping stone to keeping up with the constantly changing situation. This research is a snapshot of what ExxonMobil Aviation encounters in its endeavors to sustain its competitive position in the jet fuel supply industry. ExxonMobil Aviation might realize the dynamic nature of strategy, and remold and reshape its international operations to better deal with organizational issues. However it currently recognizes the major issues it faces and does make a great attempt at suiting its structure to this dynamic nature of strategy. It is important to remember that strategic planning requires that adjustments be constantly made on the basis of the structure.

Analysis

Exxon organization structure, which is functional types of structure, provides basic structure within organizational activities. Vertical co-ordination is linking Exxon's activities at the top of the organization with those at middle and lower levels to achieve organizational goals (www.exxonmobil.com). Without co-ordination, organization parts cannot work together. There are some important ways to achieve effective vertical co-ordination are formalization which is degree to which written policies, rules, procedures, job descriptions and other documents specify what actions are to be taken under a given set of circumstances. Span of management, the number of subordinates reporting to a specific manager. Process of significantly reducing middle management layers, increasing span of management and shrinking workforce size that is downsizing is a way of life in organizations today. As a result of the taking place within the international environment and their concurrent impact on corporate structure, recent decades have seen endless examples of organizational downsizing. (Bartol et al 2001)

Centralization versus Decentralization

Organizational activities need to be coordinated and all parts of the organization need to stay focused on the organizational goals and objectives. (Bartol et. al 2001)Most organizations prefer a mixed model (centralization- delegation). ExxonMobil mangers must consider what the appropriate level of centralization is. It is the extent to which power and authority will be retained at upper levels. The opposite of it is decentralization, the extent to which power and authority delegated at lower levels. Centralization can help to Exxon strong leadership as power stays at the top, the decentralization often helps set up units, such as divisions, whose output is easier to measure than functional units. (Bartol et. al 2001)

Methods of horizontal co-ordination

There are three means particularly useful in facilitating horizontal co-ordination is slack resources, information systems and lateral relations. Horizontal co-ordination helps promote innovation as it facilitates idea exchange across ExxonMobil's organization units. (Bartol et. al 2001)

Organization Chart

Organization chart is a diagram using boxes to represent positions, which are connected by lines to represent reporting relationships within the organization. (Bartol et. al 2001)

Factors Influencing Organization Design

While strategy and organization structure are linked each other, the effectiveness of a particular type of structure ...