HALLIBURTON ORGANIZATION AND MANAGEMENT STYLE

Halliburton Organization and Management Style

Abstract

Halliburton considers that Organizational Behavior is about studying and understanding people's behavior within organization. In order to be success in an organization, people need to be effectively trained and manage the behavior that occurs within the organization. Factors influencing Halliburton's strategic, tactical, operational, and contingency planning include political instability, rising steel prices, and environmental regulations. Halliburton operated in countries such as Iran, Iraq, Nigeria, Afghanistan, Indonesia, and Russia, which are currently experiencing unstable political and social climates.

Halliburton Organization and Management Style

Halliburton: History and Background

Originally an oil well services and equipment manufacturer, Halliburton today is a multinational corporation with diverse operations in over 120 countries. Vice President Dick Cheney is the company's former CEO.

Halliburton was founded by Erle Halliburton in 1919 as the Halliburton Oil Well Cementing Company. It was first listed on the New York Stock Exchange in 1948. In 1962, the company acquired Brown and Root, now known as Kellogg Brown and Root (KBR), a construction company. Starting with projects to secure Iraq's oil wells during the 1991 Gulf War, Halliburton began taking on a more significant role in combat zones.

Founded in 1919, Halliburton is one of the world's largest providers of products and services to the oil and gas industry. Halliburton employs more than 55,000 people in nearly 70 countries. When Halliburton was first looking into the move to Dubai, David Lesar, Chairman of the Board, President and Chief Executive Officer, stated that the Middle East would be the seat of their operations. The whole transition was part of the strategic plan to focus Halliburton's customer relations with national oil companies. Within 2006, Halliburton's 38 percent of their 13 billion dollar oil field revenue was generated by the Eastern Hemisphere. David Lesar took over the office after the departure of Vice President Dick Cheney (George & Jones, 2005).

Halliburton Organization and Management Style

An example of a legal issue that impacted planning would be in September 2001, investors accused four former officers of misleading them. A court ordered Halliburton to pay 130 million dollars. “Halliburton told investors that the case was going well, but three months later, the company's stock price dropped forty-two percent on the day that news of the judgment became public. The former employees told investigators that the company did not keep legitimate records of its sales and costs from 1998-2001. The company declared more income and expected employees to alter records to make Halliburton appear more profitable. The charges cover two years when Dick Cheney was its Chief Executive Officer (George & Jones, 2005).

Halliburton was under scrutiny do to unethical business practices with countries with which trades were prohibited by the United States government. Halliburton's secondary company KBR was involved in overcharging of oil and food supplies to the United States Army during the Iraq was in 2003. William Reinch, president of the National Trade Council states, Sanctions can “destroy your reputation as a reliable supplier, and it's something that your foreign competitors will pay up shamelessly with their ...