Organisational design can be defined as achieving the organisation’s goals through changing and constructing the structure of that organisation (Robbins & Barnwell 2002). Organisational environment can be defined as the conditions that could potentially impact the organisation (Robbins & Barnwell 2002).The purpose of this essay is to explore and critically analyse British Petroleum (BP) from the modernist and symbolic interpretive perspectives. This essay will also consider not only the organisational design of BP but also the impact their external environment has on them, while also exploring how BP has impacted on the environment.
On 26 May, 1908, what was then the Anglo-Persian Oil Company founded their first oil. In 1954 the company was renamed to British Petroleum. BP operates in over 80 countries around the world and has an estimated 85,900 employees worldwide (BP 2013). In the early 1990’s, John Browne transformed BP from a dying corporation into the world’s second largest oil giant (Bower 2010).
Organisational designs comprise of different structures which are applicable to different organisations. Post industrial design is where organisations move away from vertical hierarchies and focus more on network communications (Hatch & Cunliffe 2006). BP had reduced its streams from 11 to 4 in the late 1980’s, this showing an initiative in changing their design from that of the past (Grant and Cibin 1996). Networks encourage information exchange among members of the organisation (Hatch & Cunliffe 2013). BP had previously developed a network strategy which allowed managers and employees to share information as it was acknowledged that to be successful against other companies, information needed to be shared and reflected on to obtain different viewpoints (Siddall, Willey & Tavares 1992). BP also used the network strategy with its environmental campaign by using separate climate teams (Kolk & Levy 2001). In