Hallibuturon

MGT/330 Halliburton was founded in 1919, and is now one of the largest providers of product and services to the energy industry. This company consists of two divisions: Drilling and Evaluation and Completion and Production. With more than 60,000 employees in 80 countries these two divisions accounted for an estimated 18.0 billion in revenue as of December 2010.Halliburton which is now a global company was originated in Duncan, Oklahoma, but now operate out of Texas. Like many of the other American based businesses this company has expanded internationally, however its operations are still governed by the U.S. The planning functions of management consist of six steps. These steps can be incorporated into large or small business plans. This company has chosen to globalize and expand all over the world while following these basic steps. It has capitalized on the market by identifying the problem, evaluating the problem, and last implementation. During the global transition Halliburton has strengthen it presence in the eastern hemisphere and established a second headquarters in on Dubai, United Arab Emirates. They have expanded eastward to provide new manufacturing capacity, get closer to key markets, and reduce cost. This is an example of situational analysis. Management has identified alternative goals and devised an alternative plan to achieve these goals because the gas and oil business has shifted from the difficult reserves in the west to the bounty available in the east. In the planning process the first goal is to find out what the problem is. Management should use all resources and time wisely to gather, understand, and communicate all data that is relevant to the issue being addressed. The next step in the planning process is to research an alternative goal for the company. When seeking out an alternative the planning process should generate options that may be perused in the future. Manager and employees are both encouraged to use creativity in the planning process to come up with new ideas that can fix the problem and transition into the next level which is evaluation Halliburton has been criticized due to some decisions made by management. This company is a service company and to provide a service an organization must compete with the competitor. Smaller companies undercut Halliburton during the bidding process for jobs in the industry. Halliburton used monetary force to influence its way into the market. This could have been viewed as unethical but in this for profit business sometimes this is the only way. Management was to blame for this hasty decision and with in management was some controversy. Halliburton, the energy giant formerly run and still largely influenced and controlled by Vice-President Dick Cheney was involved with some legal and rather unethical business processes with the Bush Administration. It was discovered that it had grossly overcharged for the meals it supplies to the US military in Iraq. The company agreed to repay the US government over $27.4 million. Halliburton is also responsible for overcharging the military $6.3 million for fuel delivered to bases in Iraq and Kuwait. These practices are rather common by management from this company. This company is dedicated to providing world class service to its customers, but with such negative scandals in the media it is hard to believe management has any ethical standards at which they abide by. Halliburton in an attempt to take the negative spot light off the company has become committed to developing a diverse and global network of qualified suppliers. In order to achieve a high standard of unethical business practice Halliburton has requested all suppliers conduct business in a manner that would not compromise ethical principles required by personnel. The company tries to display its raised standards by implementing strict guidelines for its business partners. According to "Halliburton Solving Challenges" (2011), “In return this organization has decided through the relationships they build, they will support social and economic growth in the communities where they do business. Technologies are assessed for their potential to deliver sustainable benefits not only to the company and customers but also to the energy-using world. In everything, they validate their progress through transparency and reporting, with thorough documents such as our Corporate Sustainability Report.” This is a great way to practice and prepare for what is to come in the future. The next step in the planning process of management is searching for the alternative goals. As discussed previously Halliburton has made a major business move by shifting location. This company is not limited to one service it offers alternatives such drill bits and sand control. This will ensure that future business is just as profitable as the past. This organization has displayed clear and concise understanding of the planning process of management. They have implemented strategic goals, measured those goals, and determined which goals were attainable. Next, they have come up with a plan of action. This plan of action is used to complete the goals. A successful management team will know the importance of evaluation. This allows room for the plan to be tweaked in case some of the plan doesn’t work out. Advantages and disadvantages are determined by real time scenarios. Each scenario should have a contingency just incase the original is a fail. Management is responsible for making the final decisions and determining the potential affects of the alternative or contingency plans. No plan is necessarily final but mangers must begin to implement. Implementing the new procedure or plans it’s important that management is knowledgeable and has a complete understanding of the final goal. Available resources are also vital to the success of the company. Not having the proper resources can cause a plan to fail just as fast as not having a plan at all. An employee’s success is measured by how well they do and this is also used to determine rewards such as bonus, commission, salary increase, and job promotion. On a managerial level there has to be a system in place to reward this group as well. It is sometimes based on the performance of there team, or how well they manage the company budget. Large and small corporations have incorporated the incentive plan to attract quality team members. Managers have many roles to fulfill in this process from hiring select candidates to termination when a candidate is not following the business plan. When a manager has provided his /her team with the tools to be successful and this team is a top performing team with in the company there must be an incentive plan in place for the managers. This will help continue to drive quality performance. One plan does not fit every organization so therefore during this planning process a company will take three planning methods and determine which one best meets the company needs. Strategic planning with strategic goals is a plan that can be used. When a company uses tactical planning the process is to translate broad goals into more specific strategic goals. Lastly, the operational planning identifies the specific procedures and processes required at lower levels of the organization. For Halliburton or any company to lead in the industry all three of the processes need to collaborate while being consistent with the main goal of the corporation. In conclusion the sixth step in which the management team will implement is monitor and control. This will determine if the goals and plans are successful. Like some of the other important steps in the planning process this can appear to be a repeat but is very necessary in monitoring success. In this stage companies are now able to view the plan full circle and remove any issues. In this stage if issues are present managers will take corrective action. Halliburton is a leading company in the oil industry providing a variety of services. This company success is powered by a management team who fully under stands and abides by the planning functions of management. References: Halliburton Solving Challenges (2011) Retrieved from http://www.halliburton.com