Functional Areas of Business

ExxonMobil Organizational Structure

John Davis

Kathleen Hugentobler

Nina M Cleary

Stephanie Kidd

Tiffany Palmer

MGMT/521

5/5/2014

diane Hunt-Wagner

ExxonMobil Organizational Structure

     “ExxonMobil Corporation is committed to being the world’s premier petroleum and petrochemical company.  To that end, they must continuously achieve superior financial and operating results while simultaneously adhering to high moral standards (Exxon Mobil, 2014).”  ExxonMobil must consistently evaluate the departments’ work, the efficiency it is completed, and monitor its progress.  Upon review of the current structure, Team Bravo found that reorganization of the current structure can improve the company’s efficiency and effectiveness towards achieving our goals. Team Bravo will summarize the recommended changes to the current organizational structure, the rationale, and highlight the most effective means to successfully complete this work.

Managing the Work to be Done

     The leaders of ExxonMobil must be able to effectively manage and communicate how work is to be completed.  The work can be completed effectively by individuals, teams, or a combination of both now that the chain-of-command communicates a clear concise assignment of roles and responsibilities.  Carving out roles and responsibilities which tackle specific issues is just one way to accomplish its goals. The organizational chart change offers team members the visibility and the opportunity to concentrate their efforts with an understanding of each area of responsibility (NDU, 2014).  As the expectations of particular issues get addressed, both internal and external stakeholders will have the opportunity to identify the department head which would be held accountable.  

The new chart breaks down some of the hierarchical work assignments. Contributions made are not just related to hierarchical positions (NDU, 2014).  In order to continue a steady flow of contributions, the chart must tackle opportunities to do real work on behalf of the team (NDU, 2014).  Finally, the Vice-Presidents and Directors will have a greater degree of mutual accountability.  

     An organization's structure according to (Management 2012) should facilitate goal achievement (p. 275).  ExxonMobil's present structure will need of some general restructuring to stay globally competitive.  Its current form being mechanistically in nature is no longer meeting the goals of shareholders.  Specifically speaking, ExxonMobil's presently offers: high specializations, rigid departmentalization, clear chains of command, and narrow spans of control, centralization, and high formalization.

The mechanical structures are antiquated.  The system was nonpareil (second to none) in its heyday, but today it simply provides too many layers of controls to function.  Team Bravo favors the flexibility and top to bottom culture of the free-flowing information structure that the organic organizational structure provides. Our team feels that this particular structure represents ExxonMobil's global mission statement.  Team Bravo will keep certain aspects of the original provisions, namely we recommend keeping the provisions that provides for close monitoring of our global expenditures.  The stakeholders and shareholders appreciate this budgeting feature, and the manner of stability, efficiency, and tight control on cost in which ExxonMobil operates.

     The mechanistically and organically juxtaposition graphic offer a bird's eye view of from what to too what and how we like to implement the suggested changes.              

The organic organization is low in centralization so that line managers can respond quickly to problems.   Environmental concerns are always problematic for an organization's structures.  Moreover, "the greater the uncertainty, the more an organization needs the flexibility of an organic design"(p. 272).  ExxonMobil unlike BP, "knock on wood", is a perfect example of the uncertainty of environmental concerns the oil industry need to stay flexible. “Elucidating this point perfectly, the CEO of Royal Dutch Shell PLC, Jeroen van der Veer streamlined its corporate structure to counteract some of the industry volatility.  One thing he did was eliminate the company's cumbersome, overly analytical process of making deals with OPEC countries and other major oil producers".  (Management 2012)