Assignment 01

Course Code: MGT 201

Course Title: Principles of Management

Topic: A Case Study on the Management Styles in the Oil and Gas
Industry

Prepared By: Lasna Monzur Mimu
ID: 131009102
Section: 1

Prepared For: Ms. Samina Afrin
Lecturer
School of Business Administration
Date of Submission: 2
nd
January 2014
Assignment 01


What are said to be the main tasks of any manager?

Managers are responsible for combining and coordinating various kinds of resources to
achieve the organizations goals. They have to work with a diversified workforce and face
many interesting and challenging situations. The oil and gas industry contains many layers
of management within many types of organization. To work their way towards achieving
the organizational goals by carrying out the five primary functions stated below:

Planning: Planning involves the process of defining goals, establishing strategies for
achieving those goals and developing plans to integrate and coordinate activities.
Planning helps to maintain effectiveness and reduce uncertainty by forcing managers
to look ahead, anticipate change, and consider the impact of change and providing
with appropriate responses. Therefore, managers must evaluate future contingencies
affecting the organization, and shape the future operational and strategic landscape of
the company.

Organizing: Organizing involves determining how activities and resources are to be
grouped. It involves the task of determining what tasks are to be done, who is to do
them, who should report to whom and where decisions are to be made.

Commanding: Managers must supervise subordinates in their daily work, and inspire
them to achieve company goals. Likewise it is the responsibility of managers to
communicate company goals and policies to subordinates. The commanding of
subordinates should always be consistent with company policies, and every manager
should treat subordinates in line with the standards of the company.

Coordinating: Coordination involves bringing activities together in to a common
approach. Managers must harmonize the procedures and activities performed by the
company, meaning that every activity of each organizational unit should complement
and enrich the work of another.

Controlling: After the goals are set and plans are formulated, the structural
arrangements determined and the people hired, trained and motivated, there has to be
some evaluation of whether the things are going as planned. To ensure that things are
going as it should, managers must monitor and evaluate performance. Actual
performance is compared with the previously set goals. It is also the responsibility of
the manager to observe and report deviations from plans and objectives, and to make
initiatives to correct potential deviations.




Assignment 01

Why do different management styles have an effect on workers?
Management is about getting things done. Proper management styles contribute to the
organizations growth. They help solve organizational problems, enhance employee satisfaction
and loyalty and increase productivity. Managers can only achieve their objectives through
their staff. As Fayol suggested, managers will need to instruct workers and organize
resources to ensure objectives are met. To get the best out of the employees a manager has
to adopt different management techniques. This is because different employees have
different approach, different mindset and might need to be handled in ways that differ from
the other members of the organization. Theorists have tried to find out many ways of
getting most out of workers by studying their work pattern and focusing solely on
efficiency or by considering the human side of workers or studying the behavioral aspects
and the effects of the work environment. As Fredrick Taylor observed, few workers were
primarily motivated by money but soon this form of incentive became ineffective as few
workers worked not only for money but mostly for a sense of self-satisfaction and
completeness. There were human factors involved. Theorists like Maslow and McGregor
presented managers with a complete different outlook of workers where the behavioral
aspect of workers was highlighted.
According to Maslow people are motivated in order to achieve certain needs, such as
safety needs or esteem needs etc. He introduced a hierarchy of needs that suggested the
basic needs that motivates people
















Figure 1 Maslow's Hierarchy of needs
Assignment 01

On the other hand another theorist Maslow grouped people into two groups namely
Theory X and Theory Y and these two differing positions would have effect upon the
style a manger adopted.


Figure 2 McGregor's Theory X and Theory Y Model

So, due to the presence of diversified workforce with diverse attitudes, ambitions and
incentives of motivation different management style have different effect on a particular
group people. Managers need to think through the effects of adopting a particular
management style and thus is a major contemporary challenge facing them today.

Analyze the ways the ways in which management styles are used in
different contexts in the oil and gas industry. Why does this happen?
There are several different types of management styles when it comes to managing in the
workplace and choosing the right type of style to lead with could have a big impact in
terms of how the staff produces for the organization. However, picking up any one style
would not help; the traits of the staff that a manager is managing will help to define the
management styles one will use, something blending a combination of the different
categories. Discussed below are the two management styles used in different contexts in
the oil and gas industry:
Autocratic style: An autocratic manager makes decisions without the consultation of
others, instead serving as a dictator type in communicating orders because they like
to be in control of situations. This style of management leads to work getting done on
time because there are less people involved in the decision making process. In the oil
and gas industry, an autocratic style of management is often necessary. This occurs
especially when the matters of safety are taken into concern. A manager working
offshore might be overseeing important and risky high voltage maintenance work.
Though the work might be hazardous, both managers and employees hands are tied
since being in the offshore sector they have to take the risks. What they do is, they
work adhering to the Minimum Industry Standard (MIST), which deals with
assessing risks, manual handling, working safety, working at heights etc and also
specifies the hazards in the offshore environment. Employers consider these as the
safety principles critical to working before imposing the work on them.
Assignment 01

There is a manager called the Offshore Installation Manager (OIM) who plays a vital
role in the oil and gas industry. His/her primary responsibility is to look after the
safety and well being of everyone on-board with the installation of specific
equipment.
Democratic style: A democratic manager is willing to share work with his staff by
delegating it to get the job done. Communication flows in a two-way direction,
thereby improving job satisfaction and productivity. Employees feel they are part of
the process and are motivated to live up to the companys expectations. Certain
matters can be decided through discussions and consultations. For example, an oil
company is thinking of shutting one of its equipments. Now this is a decision that
cannot be taken alone because here the workers can provide the OIM with
information that can aid him in taking this complex decision. Workers can also better
tell the effects of the shutting of the equipment on other production systems.
Moreover, another employee could come up with benefits of shutting down the
equipment. So for assessing the pros and cons of the situation it is important for the
managers to adopt a participative attitude rather than imposing the decisions on
workers. Again, another situation can be for an employee working onshore
responsible for the coordination of LPG or oil from the fields to suppliers. Here also
the manager can be more democratic with his subordinated for consulting about the
best ways to proceed.

In your view, what are the advantages for staff and for management in
having OPITO-The Oil and Gas Academy?
Following are the advantages of staff and management in OPITO:
The Academy and the oil and gas industry respond to the individual learning and
development needs of employees.
OPITO helps to encourage young people to consider oil and gas industry as an exciting career
choice.
OPITO also makes sure that the industry standards which are critical to workforce safety and
competence reflect the need of the workplace.
OPITO grooms its trainees in a way that they can directly apply their already acquired
knowledge about oil and gas industry on the field efficiently.
OPITO also helps their trainees to see the bigger picture.
OPITO motivate their trainees by letting them know the benefits of being a part of oil and gas
industry, such as enjoying generous onshore leave when one works offshore, having brilliant
opportunities of travelling the world, taking as much responsibility as one wants, enjoying
the rewards of meeting challenges efficiently and so on.
OPITO trains its trainees to work as a part of a tight-knit team.
It helps to create the kinds of life that employees want.
Assignment 01