Organizational Direction of BP

[Name of the InstitutiOrganizational Direction of BP

Introduction

Almost all the organizations planning processes need that organizational objectives are set in such way that they make the overall operations more efficient and effective. The development of the operating plan triggers the onset of the performance management system by which individuals set their personal objectives and plans their activities which, collectively, mobilize employee's efforts in the achievement of organizational goals (Bryant & Hunter, 2010). BP was formed in the year 1954 and it is involved in exploring oil for commercial purpose. The company is one of the largest oil exploring organization all over the world and board of directors of the company are making constant efforts in order to enhance organizational direction of the company (BP, 2011). The purpose of this paper is to evaluate planning function of BP's management, analyze influence on management process of BP and analyze factors that influence company strategic, tactical and operational planning.

Evaluating Planning Function of BP

Differentiation is an aspect of internal environment of organization that is created by specialization of job and labor division (Honnungar, 2011). The core operation of BP involves production, exploration, and processing in the upstream model whereas downstream model includes marketing, refining and distribution of energy. The management of BP has adapted a vertical integrated management style and apart from various divisions, Strategy and Integration division of the company makes sure that information technology, human resource, and finance department functions are properly integrated with each other. The strategic realignment of the company was performed by CEO of production and exploration division after analyzing competitive market. There are three strategies of the BP that include business strategy, organization strategy and information system strategy. The business strategy is linked with the organizational mission that overall business of the company wants to accomplish and there is a clear boundary which exhibits step taken by organization for achieving their objectives. The organization strategy of BP is related to focus on employees, process and purpose of the company for achieving these processes. The information system strategy of BP makes sure that proper service is provided by the organization for complementing goals of the business (BP, 2011).

Analyzing Influence on BP Management Planning

Legal issues

The impact of legal issues on the management of BP has been considerable and management of the company has been making consistent efforts for many years in order to reduce legalities in their business. For BP, different legal proceedings are under way and these proceeding includes complex civil litigation that been mainly consolidated into Multi-District litigation proceedings. The Deepwater Horizon accident brought a number of legal proceedings against the company and different entities issued their reports on the incidents including US Coast Guards, Regulation and Enforcement and National Commission. The Deepwater horizon legalities have forced management of the company to perform different investigations and provide billions of dollars compensation to the government (Honnungar, 2011).

Ethics

The decision model of BP has been designed by considering ethics and this is the reason that company do ...