Broke Hill Proprietary (BHP) Billiton is an Australian mining company that has started its journey in 1885. Headquarter is situated in Melbourne, Australia. The organization is known as a large profit making organization. The organizational management has concentrated on providing quality and efficient service to its consumers. It is considered as the fourth largest business organization of Australia. Being one of the leading names of the Australian mining industry, the organization possesses a huge workforce. The organizational management of BHP Billiton always embraces new technology to improve the organizational performance. The organization is associated with various retailers and it provides its products and services to the several corners of the world. BHP Billiton mainly deals with five products, such as- Coal, Copper, Iron Ore, Petroleum and Potash (“bhpbilliton.com”, 2017).
In spite of being one of the leading business organizations of Australia as well as the world, it possesses some loopholes in the organizational structure (Badenhorst, O’Connell & Rossi, 2017). The organizational management of BHP Billiton must rectify those loopholes to improve the organizational performance. The below mentioned article has concentrated on these responsible areas of organizational management of BHP Billiton where they need to put more effort to achieve desired position in the industry. The article has discussed about the changes that will be appropriate to improve the organizational structure.
Being one of the leading business organizations of Australia, it has a many employees and a team of leaders. The primary objective of the organizational management is to earn huge profit by providing quality service to the consumers. All the leaders are highly experienced in the mining industry. According to the Jac Nasser, chairman of BHP Billiton, quality and efficiency are the key words of BHP Billiton. The organizational management of BHP Billiton pays close attention to the requirement of their consumers. The organizational management believes in maintaining healthy and transparent relation with the consumers. According to many reports, BHP Billiton is the largest resource and mining company of Australia. It covers almost all the areas of mining industry, such as- exploring, refining, manufacturing, supply, retail and so on. It provides a wide range of products to its consumers, such as- Iron Ore, metallurgical Coal, Copper and Uranium. It also provides oil, gas and energy coal. It has almost 65,000 employees and distributors in various parts of the world. The organizational management wants to put a strong footprint in the mining industry by providing high quality products (Swan, 2016).
BHP Billiton has a rich background. The organizational management of BHP Billiton maintains high discipline within the organization. The organizational management plays key role in influencing the employee’s performance by providing efficient knowledge regarding the style of work. The organizational management of BHP Billiton does not encourage any kind of unethical practices within the organization. It aims at earning strong reputation in the society (Robinson, 2016). Leaders often share their experience with the subordinates to simulate their performance. However, there is a lack of scope for the employees to share their opinion with the organizational management. It may lead the organization to face an awful consequence. The organizational management maintains healthy relation with the external stakeholders. It is not enough to provide efficient service to the consumers. The organizational management must take feedback from the consumers as well. In order to run any business organization successfully, it is important to consider the feedback of the consumers and listen to all the complaints of the consumers. The lack of communication among the consumers and the organizational management may lead the organization to face many crises in coming years. This is one of the major responsible areas of the organizational management. The organizational management of BHP Billiton has taken various CSR initiatives to maintain healthy relation with the local community. They take part in several social awareness campaigns, such as- free health check up, blood donation camp. The organizational management of BHP Billiton provides monetary help to the poverty stricken people of the society. The organization is known for actively participating in the community development. The organizational management of BHP Billiton maintains a strong supply chain management with the suppliers and distributors. They rely on the contractual agreement to maintain transparency with the suppliers (Schrempf-Stirling & Wettstein, 2015).
Political factors play crucial role in the development of the organization. The growth of the BHP Billiton is highly dependent on the stable political condition of Australia. It has led the organization to adopt new and efficient techniques to earn desired position in the industry (Salvioni & Astori, 2015).
Financial condition of the country plays vital role in the development of every business organization. The price of the raw materials and other important equipments depends on the economic condition of the country. BHP Billiton may face various difficulties due to unstable financial condition of Australia.
Relation with the local community and people around the organization plays crucial role in establishing a better future for the organization. Being one of the lading names in the mining industry of Australia, BHP Billiton must maintain healthy relation with the society. It is often evident that mining companies often faces various social barriers, as according to some people mining industry is a major villain that plays a significant role in increasing global warming. In order to carry out any business venture and run the business organization successfully, the organizational management of BHP Billiton needs to participate actively in community building (McPhail & Adams, 2016).
The emergence of modern and innovative technologies has given a tough competition to BHP Billiton. The rapid growth of new technologies has increased the competitive nature of the mining industry. In order to survive in the competition, every business organization is incorporating modern technologies. This works as a threat for the BHP Billiton (Rendell, 2016).
Mining companies often faces various legal issues. This acts as a threat for the BHP Billiton to earn the desired target.
Environmental is one of the biggest concerns of the mining companies. It is often termed as a villain for increasing the level of Carbon Dioxide in the environment and the effect of global warming. This is one of the major threats for BHP Billiton. It may ruin the reputation of the organization.
The growth of various rival companies has increased the competitive environment in the market. It works as a major threat for BHP Billiton.
There are various contingencies for BHP Billiton, such as-
Due to rise of rival companies the demand of BHP Billiton’s products and services are fluctuating. This is one of the biggest threats for BHP Billiton. It has increased the market competition for the organization. The organizational management often faces difficulties to maintain the profit margin of the organization (Mayes, Pini & McDonald, 2013).
The price of the raw materials and other important equipments are increasing day by day. It has increased the production cost of the organization. The organizational management of BHP Billiton faces difficulties to maintain balance (Mayes, 2015).
There are several opportunities for BHP Billiton as well, such as-
Due to rise of modern technologies the global expansion has become very easy for every business organization. It has become easy for organizational management of BHP Billiton to carry out any global venture and put a strong footprint in the international market.
Due to rise of various social networking sites and other forms of communication has provided a great opportunity to BHP Billiton to promote their brand name among a large number of consumers. They can promote their products to the every corners of the world (Liu, 2014).
Change management refers to a process in which the organizational structure is transformed by the organizational management to achieve desired target and reputation in the society. In this case, it can be stated that although, the leaders of BHP Billiton always embrace new techniques to improve the organizational performance, there are some communication gap among the consumers and organization and between the employees and employers of BHP Billiton. To run any business organization successfully, the organizational management must maintain healthy and interactive relation with the consumers as well as the employees. Communication plays vital role in the growth of every business organization. The organizational management of BHP Billiton must consider the fact while designing organizational structure (Linnenluecke, Birt & Griffiths, 2015).
Fig: Change Management Process
Created by: (Lucas & Knights, 2014)
Communication plays vital role n the development of the organization. Delivery of the right message to the right person at the right time stimulates the organizational growth. It is often evident that many business organizations face various difficulties due to lack of communication (Kirsch, 2014).
The primary objective of BHP Billiton is to earn huge profit by providing quality service to the consumers. In order to achieve the desired target the organization needs to follow some efficient steps, such as- Planning, Implementation, review and improve (Garcia et al., 2017).
Fig: Organizational Framework
Created by: Author
However, due to weak communication between the employees and employers, the organizational management of BHP Billiton often faces various difficulties to implement any business plan to improve the organizational performance. The organizational management often fails to communicate their vision with the employees and it decreases the scope of generating creative ideas for the betterment of the organization. By involving employees in the decision making process of the organization the organizational management of BHP Billiton can stimulate the employees as well as the organizational performance. At the same time, the organization fails to improve the organizational structure due to lack of communication. It often increases misunderstanding within the organization (Jordan, 2016).
On the other hand due to weak communicational structure the organizational management of BHP Billiton faces difficulties in listening to the complaints of the consumers and their feedbacks. It leads the organizational management to take any wrong step which is unsuitable for the organizational structure. The organization often fails to identify the loopholes in their service and review their performance (de Villiers, Low & Samkin, 2014).
Thus it can be stated that the organizational management of BHP Billiton faces difficulties to maintain the organizational function. It is important for the organizational management to follow previously mentioned steps.
The organizational management may fail to achieve the desired position in the industry due to lack of communication. It harms the productivity level of the organization, as the organization is unable to share their vision and plan with the employees. At the same time, they are unable to listen to the issues of their staff members. They cannot provide effective support to their employees, as they are unable to identify the requirements of their employees due to lack of communication. It leads the organization to lose many efficient employees (de Villiers & Alexander, 2014).
It is important for every business organization to provide uninterrupted service to the consumers to maintain healthy relation with them. To provide flawless service to the consumers, the organizational management must scrutinize their own service often and listen to all the feedback and complaints of the consumers. However, BHP Billiton is unable to listen to the issues of their consumers. The organizational management may face many future crises, such as- financial crises, lack of potential and loyal consumers (Clay, 2014).
To improve the communication structure of the organization, the organizational management must incorporate some efficient strategies in the organizational rulebook, such as-
The organizational management must implement strategic communication in the organization. The organizational management must make an effective plan regarding the communication structure of the organization. They must consider all the factors related to communication, such as- the effect of communication, the requirement of effective communication while designing the organizational structure. The management must meet with the higher authority to discuss about the pan and implement it in an appropriate manner.
The organizational management of BHP Billiton must often meet with their employees to discuss about various issues related to organizational structure. They must involve employees in the organizational decision making process. It will provide a sense of importance among the employees and stimulates them to work together to achieve the organizational goal. The organizational management of BHP Billiton must provide a strong platform to their employees where they can share their opinion about the organizational structure and organizational policies. They must be provided an opportunity to share their suggestions with the organizational management to improve the organizational structure and performance.
The organizational management must promote the use of various modern communication tools to enhance the interaction among the employees and employers, such as- blog, intranet, podcasts and group discussion. It will help the organizational management to share any news with the staff members easily. At the same time, the employees will be able to share their views over an issue. It will strengthen the boding between the employees and employers.
The organizational management must use all the forms of new media like social networking sites, blog to maintain interactive relation with the consumers. In this online era, it has become easy for the business organization to maintain healthy relation with the consumers of various parts of the world. The organizational management of BHP Billiton must use social networking sites to share important information; on the other hand purchasers will be able to share their feedback and complaints regarding the product and service quality. The organizational management must scrutinize their performance on the basis of consumer’s feedback often to ensure that the organization is providing flawless service to the loyal consumers. The organizational management must consider the feedback of the consumers while establishing organizational structure.
The organizational management must monitor the performance graph of the organization to observe the impact of new and improved communication structure. They will be able to identify their responsible areas where they need to put more effort to achieve the desired target (Bluszcz & Kijewska, 2015).
Conclusion:
As per the previous discussion it can be stated that the organizational management of BHP Billiton always embrace modern techniques to ensure the growth of the organization and maintain transparent relation with the suppliers. The primary objective of the organization is to provide quality product and services to the consumers and put a significant impression on the mining industry. In order to achieve the target the organizational management always appoints skilled and experienced employees. Under the supervision of the experienced leaders the organization has become successful to earn organizational goal to some extent. However, there are some issues in the organizational structure of the BHP Billiton which can ham the growth of the organization, such as- lack of communication among the employees, lack of communication between the employee and employers and lack of communication with the consumers. The organizational management must consider these factors while designing organizational structure. The organizational must introduce effective strategies and promote the use of modern communication tools, such as- group discussion, blog, intranet to maintain healthy relation with the employees and consumers. The organizational management must not neglect the issue of communication and must observe the importance of effective communication in the growth of the organization.
Reference:
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