An Analysis of the structure of ExxonMobil Aviation 2002-2003. Presented to the Senior Management of Exxon Mobil Aviation
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An Analysis of the structure of ExxonMobil Aviation 2002-2003. Presented to the Senior Management of ExxonMobil Aviation On Friday, 10 January 2003. Report researched and prepared by Ergin Senses. EXECUTIVE SUMMARY This report looks at the structure of the ExxonMobil Aviation management structure. The report deals with the structure of the organisation and the principles/issues of organisational structure and design recommendations. By analysing the existing structure the report finds the structure to be generally very appropriate for Exxon. Yet some recommendations are made and adjustments are proposed in technology. Additionally many possible future issues are addressed with respect to the structure of Exxon. By relying on the way Exxon deals with issues like innovation management and nurturing, multicultural customer relationships and size issues the report commends Exxon on its management structure. TABLE OF CONTENTS Title page Executive Summary Table of Contents Pg. 1. Introduction 1 2. Defining the Organisational Structure 1-2 2.1 Job Designing 2 2.2 Types of Departmentalisation 2-3 2.3 Methods of vertical co-ordination 3 2.4 Centralisation versus Decentralisation 3 2.5 Methods of horizontal co-ordination 4 3. Organisational Chart 4 4. Factors Influencing Organisation Design 4 5. Functional Structure 4-5 5.1. Common Functions 5-7 5.2. Advantages of Functional Structure 7 5.3. Disadvantages of Functional Structure 7-8 6. Divisional Structure 8 6.1. Forms of divisional structure 8 6.2 Product Divisions 8-9 6.3 Geographic Divisions 9 6.4 Customer Divisions 9 7. Hybrid Structure 9 8. Contingency Approach 9 8.1. Technology and structure 10 8.2. Size and structure 10 8.3 Environment and structure 11 9. Strategies and Structure 11-12 10. Conclusion 12 11. References 12 1. Introduction 'Organising is the process of arranging work and resources so that planned goals can be achieved.' (Bartol, K.M., Martin, D.C., Tein, M. & Matthews, G.2001) Developing organisation structure is an important part of the organising function. This comprises four main elements; job design, departmentalisation of positions and units, vertical co-ordination methods and horizontal co-ordination methods.
In ExxonMobil Aviation the Marketing and Customer Service teams are based in each region to provide a global team involved in all the key markets around the world. Key to the marketing services are in-house supply coordination teams based in all offices, which allow ExxonMobil Aviation to work closely with ExxonMobil's vast Refining and Supply network to make jet fuel supply arrangements to meet their customers' requirements. To meet customer's needs the organisation is structured to provide a global team of sales managers and commercial advisors who work together to provide excellent customer service across all regions. Sales managers develop expertise in either airline, military or general aviation and have responsibility for customers based in a particular region. (Available at URL: http://www.exxonmobil.com) Human resources attract, retain and enhance effectiveness of organisation members. High quality personnel and systems make ExxonMobil Aviation 'one stop' approach possible. Their back office processes are being consolidated into a global system to provide accurate invoices covering worldwide deliveries. They have a dedicated team of account experts whose role is to work with the regional groups to resolve any invoicing queries or errors as quickly as possible. Experienced operations personnel work closely with sales teams to ensure customers' airport requirements are satisfied. (Available at URL: http://www.exxonmobil.com) Finance obtains and manages financial resources. Research and development produces unique ideas and methods leading to new and/or improved products and services. Business Planning, Business Development and the E-Commerce groups all work with the organisation to ensure the business is as efficient as possible and is actively taking advantage of opportunities as they arise. ExxonMobil Aviation is an organisation with a focus on the future and these groups are ensuring that growth opportunities are sought out and seized. The Company is committed to continuing to develop its operations, products and services to meet future customer needs. (Bartol et. al 2001) Accounting and financial reporting meet the needs of internal and external sources. Key to ExxonMobil Aviation's centralised approached is the Accounting Group based in Leatherhead.
It is important to remember that strategic planning requires that adjustments be constantly made on the basis of the structure. Considerations in determining organisational structure considerations, which will impact on the organisation structure, include many factors. Environment in which the organization must operate is obviously crucial. Also the culture of the organisation made up of basic assumptions, values, norms and artefacts that fit with the purpose of the organisation and are essential to the continued existence of the organisation. Lastly the technology and resources available and suitable to the purpose of the organisation is also a major consideration. After determining these factors the structure must be formed to accommodate each in a stable manner. (Ref. Available at URL: http ://www. exxonmobil.com) A key Exxon strategy is that the customer should have a single point of contact for all their fuel requirements worldwide. This point of contact will have the information, knowledge and authority to satisfy customer's needs in all markets, making the decisions customers require, when they require them. Hence the structure of the organisation must be so that it creates convenient and flowing channels of communication between itself and its customers. Due to being a large company, it must fight the inherent tendency to be less interactive with its customers. (Ref. available at URL:http://www.exxonmobil.com) 10. Conclusion: Our report has covered the many dimensions of structure and the factors that affect it. We have found that in general Exxon has well-organised and suitable structure considering the challenges it faces. A structure that clearly promotes its strategies and innovation. Its structure also recognises the cultural issues that it faces, shown by it giving different management teams to different cultural and regional markets. Hence it can be more responsive to the different customers it has and appeal to each one differently. This flexibility is a great asset in a dynamically growing international market. Yet it does not ignore its domestic market and its structure does give a management team to the issues that face its domestic market. 11.
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