BP chart of organisation

Topic: BusinessLeadership
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Last updated: August 17, 2020

Board of Directors: this the executive body and the highest decision making authority within company. It is independent from shareholders, which means they have no power of decision making. Board’s role is also to set policies and to supervise relations with shareholders. In terms of relations with shareholders, board is required to be proactive in obtaining an understanding from shareholders.

It is board duty to represents and promote, interests of shareholders but in other hand they are independent of them. Only power of shareholders is their right to vote on directors and their right to reassess them.Directors are required to retire every three years and stand for re-election. The formal communication channels by which board accounts to the shareholders is annual report and accounts, and annual general meeting. In addition, at the annual general meeting of shareholders and wide presentation is given about performance, accounts and future prospects. Shareholders can ask questions or give their views as well, but with around 1.

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1 million shareholders, opportunities for dialogue are limited. The head of the board of directors is the Chief Executive of the Bp Amoco Group, which is Sir John Browne.The chart bellow gives detailed structural origination of Board of directors: BP chart of organisation The board structure is hierarchical and it is duty of bottom line personnel to report to senior personnel above their level. Also, structure is tall, because many layers of management are involved and decision making in centralized thus the company can be classified as centralised. But decision-making always involves a lot of consultations with lower layer in hierarchy, thus giving the BP style of management attributes of having a democratic management.The chief executive of the group, as set on its policy, is expected that in a long-term outcome to deliver.

The restrictions on the manner that chief executive is expected to deliver and achieve are set out in exclusive limitations policy, based on ethics, health and safety, environment, financial distress, human resources management and political considerations. The board has to ensure that these policies are met. Finance Department: this department has duty to regulate, monitor and manage capital within the BP.It also deals with shareholders, in respect to the investment that is poured in by them and the pay out of dividends. The finance department is managed as outlined in the chart above by Dr J G Buchanan, Chief Financial Officer, who is himself member of director’s board. The other duties include to report to chief executive and non executive director about incomes and expenditures, from where the performance in terms of production and revenue generation can be determined, therefore helping the board of directors to meet corporate objectives as described in the Objectives Section earlier in this report.

W D Ford is in charge of this department, and its duties are to ensure that these duties are satisfactorily performed and that the strategies are correctly performed. This department is directly accountable to directors. Also the role of this department toward achieving corporate objectives is crucial, as it has to satisfy the consumer for quality, efficiency and the value of products and services offered by the company.

In another way it is the duty of this department to analyse the market conditions and evaluate the efficiency of any involvement in new markets, thus advising senior management in decision-making process about these matters. This also represents its role in meeting the objectives of the company. Human Resources: Although it neither is nor listed on the chart and no person in the management board is assigned to manage human resources, this function is conducted by administration department who appoints human resources managers.

The role these managers are to supervise the human resources, as they are key to production and services, therefore to the role of meeting the objectives itself. The fact that there is no actual Human Resources Department within BP, is justifies by the fact that the company operated in very wide area, so it will be costly while in other hand this role can be conducted by administration department, which as said it appoints managers to supervise this role.Main duties of these managers are to supervise employees and monitor them and motivate them so that objectives can be met in due course. These managers have to ensure that both employee and employer are binding the terms set on Contract of Employment and the provisions of The Employment Protection Act are implemented to regulate this process accordingly. Its duties are also to regulate and arrange the payment of salaries and to conduct any deductions on them for purposes of taxation.These are itemised in a ‘pay slip’, which is delivered to the employee at certain periods when their salary is due to be paid. Administration: this department is concerned with administering the company. Its roles are to conduct processes such as human resources as describe earlier.

Its roles also include making sure that the company is in line with policies set and others matters such as jurisdictional and legal matters for the company. Also it has to ensure that processes are effectively and efficiently undertaken.

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