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.

. 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

0. Conclusion 12

1. References 12

. 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. (Bartol et. al 2001)

In this report an organisation structure has been designed to support organisation strategy. Promoting innovation is usually a key consideration in the formation of the structure of the organisation. In the dynamic business that currently faces companies, innovation is the key stepping stone to keeping up with the constantly changing situation.

This report analyses the management structure of ExxonMobil Aviation and both commends it and proposes some adjustments that may be required to suite the changes it encounters. It also reviews the most common forms of departmentalisation; functional, divisional and hybrid structures.

This research is a snapshot of what ExxonMobil Aviation encounters in its endeavours to sustain its competitive position in the jet fuel supply industry. ExxonMobil Aviation might realise the dynamic nature of strategy, and remould and reshape its business operations to better deal with organisational issues. However it currently recognises the major issues it faces and does make a great attempt at suiting its structure to this dynamic nature of strategy. It is important to remember that strategic planning requires that adjustments be constantly made on the basis of the structure.

2. Defining the Organisational Structure

Organisation structure is the formal pattern of interactions and co-ordination that management designs to link the tasks of individuals and groups to achieve organisational goals. (Bartol et. al 2001)

Organisational structure consists of four elements; job design, departmentalisation of position and units, vertical co-ordination methods and co-ordination methods. The process of creating an organisational structure is organisation design. (Bartol et. al 2001)
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2.1 Job design

Job design is important to Exxon for two reasons. Firstly, task activities must be grouped logically. Otherwise, it may be hard for Exxon members to function efficiently. The other reason is how jobs are configured, or designed, influences employee motivation. Exxon managers need to consider efficiency and motivational issues when designing jobs to produce effective performance. There are four different job design approaches; Job simplification is the process of configuring jobs so jobholders would have only a small number of narrow activities to perform. Job rotation is the practice of periodically shifting workers ...

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