Baker Hughes (BH) Organization Essay

Questions:

1. Evaluate the interrelationship between the different processes and functions of an organisation .
2. Justify the methodology to be used to map processes to the organisation’s goals and objectives .
3. Evaluate the output of the process and the quality gateways .
4. Design systems to manage and monitor quality standards specified by the organisation.
5. Demonstrate a quality culture to ensure continuous monitoring, evaluation and development of the process.
6. Recommend improvements which align with the organisation’s objectives and goals and which result in improvements.
7. Discuss potential implications of your recommended changes – for example the impact on operational costs, on morale and motivation, on customer satisfaction.

Answers:

1. Baker Hughes (BH) Organization is in the energy sector. It provides services related to oil drilling and consulting in the oil and gas sector. The organization is run effectively at the moment. However, there is some uncertainty going on at the moment due to its recent acquisition by the organization Halliburton. In Baker Hughes, there exists strong interrelationship between the different processes and organizations of an organization for example, HR, Marketing, Purchasing, Quality, and Training etc. The Marketing or the Purchasing department generally takes the training before it actually goes down in the field (Bettis, 2015). Any Purchase or procurement activities is closely linked with Quality check of the product. The HR department conducts periodic trainings and appraisals for the employees so as to keep them updated. This kind of inter-relationship helps the organization to grow in a smooth manner.

2. The functional, operational and the strategic processes within the organization are well strategized by the leaders within the organization. The leaders at the company try to focus on their core competency of drilling service providing. They try to procure quality materials and help their clientele to undergo drilling methodologies. The values provided by the BH is being appreciated by all their clients. The core values of the organization is revised every quarter to keep it updated with the industry standards (Becker, 2013). The functional processes are restructured so as to maintain the quality within the organization. The Methodology focused is “New and Renew”. This can be explained as introducing new methods and reforming the older methods to renew them so as to ensure greater success of the organization.

3. Quality Gateways is as such not yet been thought in BH. However, the company is very much stringent regarding the quality of everything they deal with. It may be the human resources they procure or the raw materials. The quality is given the utmost priority. The services with poor quality is being restructured as and when required. They are dealt seriously and kept outside of eyes of any competitor organization or clients (Bozarth, 2015). After the quality is improved, then they become the part of normal process flow. The organization might think in line with that of Quality Gateways in the near future. They can undergo certain strategic change with the implementation of best strategies available in the market to cater quality products and services to the clients.

4. Organizational Performance needs to be improved year on year so that the organization achieves success. At BH, the management focuses on improving the procurement department with the integration with latest technology. The savings in the procurement stage provides major benefits to the organization. The procurement of the raw materials acts as tone of the major costs within the organization. The selection of suppliers also contributes to the same. ERP solution (SAP) is implemented so as to monitor the performance of all the departments and to generate real time reports which can help the management to take key decisions (Carroll, 2014). The productivity is given importance and employees are directed to work towards the development in the department they work in. The work of individual departments need to work in an integrated manner so as to ensure increase in organization performance at the macro level.

5. The management of the organization is supportive to the new changes being proposed by the employees. They have given the employees the liberty to think innovative ideas and present it in front of the management. The behavior of the managers towards the employees is very kind. It gives the employees the required motivation and helps them in increasing their productivity. The attitude of the employees as well as the managers are positive and all are working towards the development of the organization (Jeston, 2014). The approach of the managers is towards long term perspective and they try to build strategies which can help the company to achieve success in the longer term. All these strategies help the company to maintain the quality standards. The management focus towards the development of the employees as well because they are the base of the company which works hard and helps the company to grow.

6. The organization is at a phase where the future of the organization is a bit blur. It is due to the acquisition of the company by the major organization Halliburton. The company are currently thinking about the satisfaction of all the clients and want to satisfy them with quality products and services. The recommendation to the company would be to hold on to the key employees and try to keep them motivated (Hill, 2014). The resources should be kept still so as to cater to future requirements. The people of the company needs to work hard and prove to the clients. The use of the ERP solution has been a major benefit for the organization. They should try to build on their existing solutions and should try to bring in new technology so as to foster growth.

7. The increase in the IT Technology will help the company to keenly monitor all its departments. The cost impact to the company can be a bit in the current scenario (Hitt, 2012). However, there won’t be any major implications because of these. The managers and the supervisors will also get help with the IT technologies as they will be able to map the demand and supply in a better manner. The company will continue to operate in the similar manner after the acquisition as well. BH has certain long term strategies which they intent to build phase by phase after the acquisition completely takes place (Slack, 2015). The financial impact on the BH with this IT enhancement plans will be more at first but will stagnate and boost the company’s operational performance to a greater extent.

References

Bettis, R.A., Ethiraj, S., Gambardella, A., Helfat, C. and Mitchell, W., 2015. Creating repeatable cumulative knowledge in strategic management. Strategic Management Journal.

Becker, J., Kugeler, M. and Rosemann, M. eds., 2013. Process management: a guide for the design of business processes. Springer Science & Business Media.

Bozarth, C.C. and Handfield, R.B., 2015. Introduction to operations and supply chain management. Prentice Hall.

Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and stakeholder management. Nelson Education.

Jeston, J. and Nelis, J., 2014. Business process management. Routledge.

Hill, C., Jones, G. and Schilling, M., 2014. Strategic management: theory: an integrated approach. Cengage Learning.

Hitt, M., Ireland, R.D. and Hoskisson, R., 2012. Strategic management cases: competitiveness and globalization. Cengage Learning.

Slack, N., 2015. Operations strategy. John Wiley & Sons, Ltd.

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