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Contents

Executive Summary.............................................................................................................2

Introduction..........................................................................................................................2

Culture of seven characteristics in BHP..............................................................................3

Innovation and risk-taking...............................................................................................3

Attention to detail.............................................................................................................3

Outcome orientation.........................................................................................................3

People orientation............................................................................................................4

Team orientation..............................................................................................................4

Aggressiveness.................................................................................................................5

Stability............................................................................................................................5

Analysis of the organizational culture.................................................................................5

Conclusion...........................................................................................................................8

References............................................................................................................................9
Executive Summary

The assignment makes an effort to define BHP’S organizational culture and examines


how it affects employee behavior. Innovation and stability are among the BHP’S major
interests, and the company has a high view of people, teamwork, and outcome
orientation. Such cultures tend to make businesses more profitable and provide them a
competitive edge.

Introduction

BHP or Broken Hill Proprietary Company is an international mining, metal, and


petroleum corporation with its headquarters in Melbourne, Victoria, Australia, and was
established in1885 in New South Wales. In terms of market capitalization, BHP is the
third biggest mining corporation in the world by 2018 and the third-largest corporation in
Melbourne in terms of revenue (Mining Technology, 2018). They utilize resources, such
as iron ore, copper, nickel, potassium, and coal, to generate important commodities for its
customers BHP is the sole owner and operator of its operating assets, or BHP and another
party are joint owners and operators.

Because a company's culture sets expectations for how employees should behave,
interact, and work as a team, organizational cultural analysis is crucial. The primary
objective of the analysis is to evaluate the attitudes and beliefs that the company and
those associated with it promote. This can be done using the seven criteria of
organizational culture which is founded on the Theory of Organizational Culture. The
organization can assume that the analysis will help the employees and leaders get along
and strive towards success of the company.
Culture of seven characteristics in BHP

Innovation and risk-taking

When it comes to innovating at its workplaces and mine sites, BHP is using an
efficient approach and be more daring, adapt quicker, and accept change to take
advantage of the opportunities and resources. The company believes that Technological
innovation will surely change things for the better for the mining sector and the
individuals who work in it, and also new and interesting prospects. The company has
appointed Eastern Ridge as its testing area for new technology, which will be providing
an exciting opportunity for both the staff and the community (Moore, 2019). To improve
operations better and more effectively, BPC is delving deeply into its systems to see what
data they might generate, capture, monitor, analyze, and modify.

Attention to detail

The business gives thoughtful consideration to every area of its commodities so that they
can generate maximum revenues and help the company succeed. BHP has been
relentlessly concentrated on increasing operational advantage into its business through a
strong attention on costs and efficiency for almost ten years. Its efforts largely succeeded
in producing a first-half outcome that was very strong. Two prominent metrics which
highlight how much power and influence has been built into the performance of the
company by the years of meticulous attention to detail were obscured by the rise of 57%
in fundamental earnings to $US9.7 billion and the most recent cash infusion for
shareholders (Bartholomeusz, 2022).

Outcome orientation

The ultimate goal of BHP is to utilize resources, such as iron ore, copper, nickel,
potassium, and coal, to generate important commodities for its customers. For BHP, 2021
has been a very successful year as they were outcome oriented. BHP’Ss future is being
shaped by the actions that they have undertaken, which have resulted in very positive
operational and financial outcomes. In the coming years, it is anticipated that the ability
to produce good outcomes and expand more potential for all of the stakeholders will be
made possible by a mix of a strong strategic view, rising operational efficiency, and
increased exposure to products with a bright future (BHP, 2021).

People orientation

The company strives to hire and keep the best employees to carry out the strategy and
manage its business operations in a safe and effective manner. It has almost 80,000
workers and independent contractors working for them worldwide. The safety and
welfare of the employees come first as they foster an atmosphere that is inclusive and
diversified. BHP makes significant investments in technology and cutting-edge
approaches to risk management, process simplification, and productivity enhancement to
allow its person to participate at their highest levels. They also ensure the development of
its employees to increase competence and improve results, and provide compensation and
benefits that recognizes competence (BHP, 2021b).

Team orientation

At BHP, the leaders and coworkers work together and value each other be able to reach
their full capacity, and be motivated. Abuse and harassment of employees are not
tolerated here, nor is the illegal treatment of an individual based on characteristics of their
personality unrelated to work performance. BHP does not accept any type of
discriminatory practices and will only hire, develop, and advance people based on their
merits. All current and potential employees get equal treatment and be judged based on
their abilities, credentials, and competencies. Personnel decisions are not influenced by
personal connections. Fair treatment is supported by their procedures, systems, and
policies.
Aggressiveness

The corporation uses aggressive tactics to maintain its market share, which has concerned
other businesses and provided BHP with a competitive advantage over its rivals. One of
the examples of their aggressive behaviour is when they announced that they would aim
to expand aggressively in India, where growth momentum is exceeding China, its other
booming market. BHP said there have been unexplored prospects for mining in India's
iron ore and bauxite operations, which it targeted $20 billion for (Reuters, 2007). With a
view of selling products there, the company aggressively expanding into India.

Stability

Being the largest mining company in Australia, BHP is highly stable in face of
adversities. The BHP Foundation collaborates with businesses doing transformative work
all throughout the world. They are always collaborating to develop, adjust, and negotiate
the upcoming challenges so that they may continue to produce in a responsible and
healthy manner. During the pandemic, they resolved to bring stability in their projects.
They were committed to their partners and assisted them as they adjusted in the volatile
market, even if many initiatives would take years to complete (Chakraborty, 2022).

Analysis of the organizational culture

One of Australia's most forward-thinking companies, BHP, appears to be mindful of the


demand for simple new commodities. The BHP Group has expanded, changed, and
continued to develop alongside the rest of the world. To foster an inventive culture at
work requires a lot of work. The capacity to accept losses and learn from it is one of the
most crucial components of developing an organizational culture wherein taking chances
is appropriate and where innovation may prosper (Joseph & Kibera, 2019). The
implications of this shift and change on organizations and their new projects are more
favorable. Every business must alter its organisation culture over time because changes
are an inevitable part of existence. The strong message that taking chances and accepting
failure are acceptable must come from leaders of BPH. BHP will undoubtedly stay at the
top of the mining market if they continue operating at this level.

The culture of an organization of a corporation determines how much attention to detail is


expected of its personnel. Employees are required to carry out their duties competently
when working in a setting that places a high value on attention to detail. The company
does not thrive when it does not place much attention and focus. Businesses like BHP
that value reliability and pay close attention to detail emphasize on consistency. Such a
culture has given it in the mining industry the ability to stand out from the competitors
and a strategic advantage. Due to its better logistics management and properly thought
out supplier as well as partner arrangements, which ensure that projects are delivered on
time, BHP has established a competitive edge over its rivals.

Organizations that often focus on accomplishments instead of how those outcomes are
reached highly appreciate the organizational culture idea of outcome orientation. A
company with a culture that prioritizes result features would urge its personnel to go
above and beyond to secure customer order. An outcome-oriented professional is driven
and enthusiastic to succeed, maintain a high standard in their operations, and meet the
predetermined goals. These businesses consistently strive to improve both their output
and customer experience. This can be advantageous for a company like BHP, but success
should not depend solely on outcomes and results.

Companies like BHP that emphasize organizational culture take into account how their
decisions affect the individuals who make up their business. Such companies value
treating their employees with dignity and respect. BHP employees are made to feel safe
and at home, and treatment of an individual based on characteristics of their personality
unrelated to work performance is highly discouraged. The organization puts a lot of effort
into fostering a workplace that is really inclusive, where everyone is accepted and
welcomed without bias or prejudice. By building an inclusive environment, BHP can
anticipate an improvement in its prospects of recruiting, keeping, and motivating high-
performing employees from its trained workers. People who are diverse and inclusive are
generally able to innovate, address problems, and reach more informed decisions, which
eventually increase profitability (O’Reilly et al., 1991).

In businesses that place a high value on the organizational culture attribute of team
orientation, teams, are the center of work processes. These businesses usually have
employees who work well with their managers and coworkers. Operating as a team to
achieve a common goal while playing a range of important roles entails being team-
oriented. It demonstrates how staff team members work together to accomplish a
common objective. The personnel of BHP represent a range of cultural origins,
contributing a diverse range of expertise, viewpoints, and ideas to everyday activities.
The workforce has been one of the organization's most significant assets, and as a result,
they frequently outperform their competitors in terms of profitability.

Based on the aggression part of organizational culture, the organization individuals are


likely to be either aggressive or laid back when dealing with companies that competes
with them over their products and services. In firms with competitive cultures,
competition and outperforming the competition are considered valuable. Employees are
indirectly or directly required to perform any duty aggressively in order to keep their
status and stability. Their aggressive behaviour is seen from the instance when expanded
aggressively in India, where growth momentum was exceeding China, its other booming
market (Reuters, 2007). This aggressiveness has allowed them to establish a strategic
advantage, but it could also have adverse effects because an extremely aggressive
company culture may hurt other businesses and even themselves.

Organizations that place a high importance on stability typically have a rule-oriented,


predictable, and managerial culture. These companies often provide output levels that are
consistent and sustainable, and they thrive in contexts with stable markets. In order to
maximize effectiveness, these teams attempt to organize and manage individual activities.
By providing steady and sustainable levels of output in a safe and stable environment,
these cultures can enhance the results of the organization. In the previous years, BHP has
consistently been reliable and effective at increasing sales.

Conclusion

It is evident from the analysis of all the organizational culture components that BHP
strongly values organizational culture in each of the seven areas. It ensures that the
company considers each of these variables seriously and acquires an edge over other
businesses. To continue boosting efficiency, it can focus on its aggression and stability
traits.
References

Bartholomeusz, S. (2022, February 15). BHP’Ss decade of discipline leads to flood of

cash for shareholders. The Sydney Morning Herald.

https://www.smh.com.au/business/companies/bhp-s-decade-of-discipline-leads-

to-flood-of-cash-for-shareholders-20220215-p59wj5.html

BHP. (2021a). Annual report 2021. Bhp.com. https://www.bhp.com/investors/annual-

reporting/annual-report-2021

BHP. (2021b). People. Bhp.com. https://www.bhp.com/sustainability/people

Chakraborty, R. (2022). BHP: 2 Basic Materials Stocks That Can Survive a Recession.

StockNews.com. https://stocknews.com/news/bhp-sqm-2-basic-materials-stocks-

that-can-survive-a-recession/

Joseph, O. O., & Kibera, F. (2019). Organizational Culture and Performance: Evidence

from Microfinance Institutions in Kenya. SAGE Open, 9(1), 215824401983593.

Sagepub. https://doi.org/10.1177/2158244019835934

Mining Technology. (2018, June 21). The world’s biggest mining companies in 2018.

Mining Technology. https://www.mining-technology.com/analysis/worlds-

biggest-mining-companies-2018/

Moore, P. (2019, May 31). BHP on its Eastern Ridge mine innovation proving ground in

the Pilbara. International Mining. https://im-mining.com/2019/05/31/bhp-eastern-

ridge-mine-latest-technology-proving-ground-pilbara/
O’Reilly, C. A., Chatman, J., & Caldwell, D. F. (1991). PEOPLE AND

ORGANIZATIONAL CULTURE: A PROFILE COMPARISON APPROACH

TO ASSESSING PERSON-ORGANIZATION FIT. Academy of Management

Journal, 34(3), 487–516. https://doi.org/10.2307/256404

Reuters. (2007, August 24). BHP Billiton Seeks to Grow Aggressively in India.

Www.cnbc.com. https://www.cnbc.com/id/20420225

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