Category: Business Report

Introduction

The present organisational report is written on the Odfjell Drilling Company (Odfjell Drilling), which origins from Norway and has offices around the globe. The scope of this report is UK-based companies. The company was founded in 1973, but the roots trait back to the 1914. In the mid of sixties the company starts to lead on the international market and arrange drilling operations at the beginning in the North Sea and then goes worldwide. The origin of the company defines implemented approaches. The company used the flat structure, which is common for the Norway management and for other companies it causes problems in the work process. The company has a three-vector area aims the processes according to the values of the company. They are mobile offshore drilling units, platform drilling, technology, and well servicing. All these processes are organised according to the basic client’s profits. The company is doing its best to increase efficiency in the implementation processes, reduce time and costs, which help to provide a well-organised planning and ensure the high level of security.

Business Areas

The business areas were developed stage by stage according to the demand of the market. As it was mentioned above, the company officially started with the deep drilling in the mid-seventies. As soon as the positions of the company were designated, the next step in the process of the market development was transportation. At the beginning, transportations were usually arranged around timber producers and dry cargo vessels. Later, the company development was spread to the transportation of the chemical materials. As a result, the company has organised a separate activity field, which is famous today as JO Tankers.

The position of the company changed worldwide, as it modified its approaches to and models of the work. The Odfjell Drilling Company invests in the future by including the sustainable actions in the implementation processes. Ultra deep-water fleet is a good example.

Core Values

The values are fundamental for each company as they define the rout and main strategies of the development. The values are the first and final point, which gives the ground for creating the cooperation relationships in and within the company. It should be mentioned that the level of trust rises to the company as soon as the customers see the implementation of the core values among the employees.

The first value of the company is commitment. It defines the level of the employee’s involvement into providing the high-level results. The second value follows up from the commitment and is concentrated on the conscious of the safety. The level of safety is the variable that defines the ability of the company to provide the well-organised process.

As every company, Odfjell Drilling is looking for the ways to meet the market and customer’s needs. This is the main reason why creativity is listed among the core values. Modern market requires from the companies to develop new approaches and methodologies for the new, effective solutions. The fourth core value is the level of competency. The higher quality of the service the better feedback from the customer the company will receive. In this way, the company creates the basis for the following projects. In addition, projects developed without the precise analysis of the results reject the last and important value of the company – result. The level of the performance (Inman) is nothing if the result was not achieved. The Company, according to the listed above values, creates and supports innovative ideas, which help to influence the community and create a positive impression among the target audience.

Corporate Principles on Management

The Norway headquarters developed principles, which help to arrange all mentioned above clients profits. Company uses a specific tool for this, which is named as a zero fault philosophy. The aim of the tool is to improve the provided operations. Accordingly, the level of the management system efficiency is based on this principle. The data show that the zero fault philosophy has a positive effect on the terms of the operation, including the quality and the safety.

The company’s philosophy supports its endeavour to become the leading contracting company in the drilling of oil and providing its related services not only within the North Sea region, but also in any other chosen region. All efforts the Company gives ensure that there is a zero tolerance to errors on its safety, health, and environmental measures. The employment of standardized ethical measures ensures realization of the continuous improvement in its operations. The approach works towards delivering unrivalled products and motivating its employees to reach impossible and be professional on each level of the structure organisation.

The Organisational Process Structure

The UK Company has regional and divisional offices. In the work process, their aim is to make critical decisions, dedicated teams that support both divisions leading to duplication of work, cumbersome double reporting process that takes place at all levels, regional manager in UK being a divisional manager too, and flat culture that is unpopular with the Britons. The three divisions upon which the company’s functions are divided also have their own divisional offices with each being responsible for the decisions it makes (Chris & Keith, 2010). The company employed divisional offices so that it can fast track the process of developing and thus grow business wisely.

The regional head office is responsible for specific functions that are not carried out by the divisional offices. These functions include quality control, formulation of safety measures and procedures, management of the company’s human resources, organising employee-training programs, procurement and purchasing functions; and overall control of the company’s finances (SixSigma). The company has ensured that it draws synergy in the manner it has organised its functions with teams formed at the regional head office to provide supporting functions to all the three divisional offices.

Functions of the Offices

The functions differ among offices according to the tasks they receive. The regional head office is responsible for specific functions that are not carried out by the divisional offices. These functions include quality control, formulation of safety measures and procedures, management of the company’s human resources, organising employee-training programs, procurement and purchasing functions, and overall control of the company’s finances. The company has ensured that it draws synergy in the manner it has organised its functions with teams formed to at the regional head office to provide supporting functions to all the three divisional offices.

Structure

The organisational culture is the reflection of the values company proclaims, as well as the environment for the employees to be actively involved into the processes. The formal structure is used in cases for implementation of the particular results (Ian & Chris, 2005, p.46). As a classical approach of the managing the company, it gives the idea where to move in order to create the best environment for the outcome. The promises given by the Odfjell Drilling Company at the beginning vanished within the time, as there was no implementation of them in the frame of the management structure. Bureaucracy or scientific management shortens the ability of the organisations to deal with the newly coming up issues. The human relation approach disappeared and was changed into the scientific management (Gaurav Akrani), which requires the documentation of every step. A good example for this is the fact that the final decision is made only by one person.

The inner atmosphere of the company did not create an environment (AtKearney) for people to come up with solutions, developing new approaches, and having a chance to take responsibility for their actions. As a result, people were unable to fulfil proclaimed by the company aims (Hearst Communications) and interact according to the values. The reality of the organisational structure wished to be better, so everyone could experience the feeling of unity and that the work done is appreciated.

Issues and Challenges

The structure and the function of the managerial level do not meet the requirements of the UK based company. There are few reason why challenges appear.

The first one, framed above, is the flat structure of the company organisation (Douglas). If the head office manager is able to organise the appropriate level of reporting, the divisional offices are engaged into the double reporting process. As a result, the managers spend a lot of time and are not able to implement the half of the mentioned core values.

The second challenge is that regional head office rarely includes the opinions from the other divisions. The picture in this case for managers, both head office and regional office, is blurred. The level of the commitment is under the question.

The third challenge is the double position of the manager. Such situation causes a low level of understanding the peculiarities of the work in the definite region. The results of the manager’s work will not meet the core values approaches, defined by the company as the core stone of the strategy.

One of the main issues is that the company operates the high quality personal and is not able to manage its work properly, including national and economic features of the company’s country. One task can be managed by two divisions, which do not operate at the appropriate level of communication. This leads to misunderstandings and provokes conflicts. Regional manager is not the one who can professionally operate the data and implement the needed strategies for the development.

Recommendations

The precise analysis of the company’s structure reveals the core problems within the company’s organisation and management. The ideas which the company intends to implement were not incorporated in the work processes and had no reflection in the structure of the company. The main aim is that the values, which are proclaimed by the company are not implemented in the company. After precise analysis of the company and issues related to the structural organisation, there appeared a few recommendations:

  1. Conduct an analysis of the existent resources within the company.
  2. Create a precise job description for the manager and all teams.
  3. Conduct the restructuring of the divisional teams. In this process, the implementer should include the peculiarities of the national and economic development of the country.
  4. Find people within the company who have a deep understanding of the company’s values. Suggest them for managerial positions in the divisional teams.
  5. Develop the strategy of professional growth and mentoring in the company for the divisional office employees and organise the study visits for each office to the head office, so the employees could feel the atmosphere and share experience.
  6. Make position rotations, so the people could develop skills in other fields.

The ideas mentioned above can be the first step in the process of improving the company’s image in the eyes of the employees, as well as the customer. The appropriate attitude of the HR department and top-manager to the improvements can cause the increase in the results.

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