Halliburton was founded in1919 and is one of the world’s largest
providers of products and services to the energy industry (Halliburton, 2011).
Halliburton has operations in 80 countries and employs over 60,000 people. Its
operations consist of two subdivisions, Completion and Production and Drilling
and Evaluation that distribute cementing, stimulation, intervention and
completion services. The Drilling and Evaluation subdivision provides field and
reservoir modeling, drilling, evaluation, and well construction solutions that
allow customers to model, measure, and optimize their well placement permanence
(Halliburton, 2011). This includes drilling services, wireline, fluid services,
drill bits, software asset solutions, and project management services. Halliburton
offers an assortment of products and services, therefore, making production and
development of oil and gas profitable.
Planning function of management
Management is the process of working with people and resources to
accomplish organizational goals (Bateman & Snell, 2009). Halliburton is
managed by a Board of Directors who are responsible for the planning functions
at all levels within the business. The Board of Directors believes that the
primary responsibility of the Directors is to provide effective governance over
Halliburton’s affairs for the benefit of its stockholders (Halliburton, 2011).
Halliburton’s action plans are focused on clients, customers, stockholders and
employees that oversee business development. Our goal is to provide products and
services that have the smallest environmental impact, are safe in their
intended use, consume energy and natural resources efficiently and can be
recycled, reused or disposed of safely (Halliburton, 2011). Therefore,
contingency plans and risk management are essential in the planning process to
achieve their worldwide objectives.
Legal Issues
The aim of ethics is to identify both the rules that should govern
people’s behavior and
the “goods” that are worth seeking (Bateman & Snell, 2009).
Halliburton sub-contracts with numerous companies in over 80 countries and was
recently found guilty on bribery charges by the Securities Exchange Commission
with Nigerian government officials for violating the Foreign Corruption
Practices Act. Halliburton paid officials $182 million dollars in exchange for
four contracts worth $6 billion dollars for natural gas. They also had to pay
$402 million criminal fine. KBR and Halliburton also paid $177 million to
settle civil complaints related to the bribery (CNN, 2011). The companies’
policies and procedures were reviewed for future compliance. Therefore,
Halliburton needs to make sure they are properly planning before making
decisions preventing any further court convictions resulting in large
penalties.
Ethics
An ethical issue is a situation, problem, or opportunities in which an
individual must choose among several actions that must be evaluated as morally
right or wrong (Bateman & Snell, 2009). Since the beginning of the war in
Iraq, Halliburton has negotiated and received several contracts to provide
support and assistance to the United States Army. For example,
Halliburton claimed costs for laying concrete pads and footings that the
Iraqi Oil Ministry had "already put in place"(CNN, 2011). These
allegations have Halliburton properly maintaining their accounting records and
correctly reporting their earnings to their investors. Therefore, to prevent
confusion Halliburton’s contracts should state the cost of their services.
Social Responsibility
In 1965, Halliburton established a foundation for charitable giving
through employee matching gifts, direct grants and scholarships for all levels
of education. Since they are in many areas of the world, charities benefiting
the communities accept donations through their respective offices. In addition,
college scholarships are also awarded to the children of employees, based on
financial need. The foundation board of trustees also makes a limited number of
grants to health and health-related charities (Halliburton, 2011). The Halliburton
Foundation donated around $2 million to support these charities in 2010.
Strategic planning involves making decisions about the organization’s
long-term goals and strategies (Bateman & Snell, 2009). Safety in every
corporation has its guidelines and due to Halliburton’s varied projects and the
hazards they entail, safety is a main concern for their employees. Proper
planning procedures and practices are needed to be in place as accidents occur
any time. Unfortunately, every situation is not the same. On April 20, 2010 the
Deepwater Horizon exploded in the Gulf of Mexico killing 11 workers and
threatened the economy and environment. Although Halliburton has negative
history, they still uphold their values. These values are present during
formulation and execution of their contracts. During the planning stage of a
project, it is important to make sure that Halliburton completes their projects
with safety being a top priority. They also need to follow up on all scheduled
maintenance and support as needed by the project requirements. Therefore,
making decisions and using resources benefits the organization and its
investors but most importantly, the environment.
Influencing Factors
To be fully effective, the organization’s strategic, tactical, and
operational goals and
plans must be aligned that is, they must be consistent, mutually
supportive, and focused on achieving the common purpose and direction
(Halliburton, 2011). The three factors that influence Halliburton’s strategic,
tactical, operational and contingency planning are safety, environmental
considerations, and workforce diversity. Halliburton has a strong
responsibility to the communities in which they live and work. As a result,
Halliburton has guiding principles of “standards that represent the minimum
level of acceptable performance for Halliburton’s operations” (Halliburton,
2011). In addition, Halliburton will share their “best practices with customers
and other contractors require all subcontractors and supplies to meet their
standards” (Halliburton, 2011). Using the calculations established by the
Environmental Protection Agency and appropriate emissions of carbon dioxide,
Halliburton has identified their total direct emission affecting the
environment and they continue looking into energy-efficient and saving
approaches. With a diverse workforce, Halliburton believes it creates a
“high-performing organization” (Halliburton, 2011) therefore, making them a
stronger competitor and employer.
Conclusion
Halliburton has been in the oil and gas business for more than 90 years
resulting in various contracts and profits worth billions. Today, Halliburton
offers the world's broadest array of products, services and integrated
solutions for oil and gas exploration, development and production (Halliburton,
2011). Despite the organization’s longevity as a provider to the petroleum and
energy industries, the company has experienced a depression. Halliburton
continues to focus their goals and achievements on improving how the
organization functions, paying particular attention to the safety of their
customers and employees. They also are reducing their carbon footprint by
seeking best practices and approaches in reducing carbon dioxide emissions and
provide a diverse work environment “fostering the insights and vitality of many
points of view” (Halliburton, 2011).
References
Bateman, T. S., & Snell, S. A. (2009). Management: Leading &
Collaborating in a Competitive World (8th ed.). New York, NY: McGraw-Hill.
CNN World. (2011). Retrieved from http://www.cnn.com
Halliburton. (2011). Retrieved from http://www.halliburton.com
Microsoft Corporation. (2011, July). FundingUniverse. Retrieved from
http://www.fundinguniverse.com
Microsoft Services. (2011, July). Retrieved from http://www.microsoft.com
Microsoft Web Matrix. (2011, July). Retrieved from
http://www.microsoft.com
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