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THE ENVIRONMENT AND STRUCTURE - ROYAL DUTCH  SHELL COMPANY
THE ENVIRONMENT AND STRUCTURE - ROYAL DUTCH  SHELL COMPANY
THE ENVIRONMENT AND STRUCTURE - ROYAL DUTCH  SHELL COMPANY
THE ENVIRONMENT AND STRUCTURE - ROYAL DUTCH  SHELL COMPANY
THE ENVIRONMENT AND STRUCTURE - ROYAL DUTCH  SHELL COMPANY
THE ENVIRONMENT AND STRUCTURE - ROYAL DUTCH  SHELL COMPANY
THE ENVIRONMENT AND STRUCTURE - ROYAL DUTCH  SHELL COMPANY
THE ENVIRONMENT AND STRUCTURE - ROYAL DUTCH  SHELL COMPANY
THE ENVIRONMENT AND STRUCTURE - ROYAL DUTCH  SHELL COMPANY
THE ENVIRONMENT AND STRUCTURE - ROYAL DUTCH  SHELL COMPANY
THE ENVIRONMENT AND STRUCTURE - ROYAL DUTCH  SHELL COMPANY
THE ENVIRONMENT AND STRUCTURE - ROYAL DUTCH  SHELL COMPANY
THE ENVIRONMENT AND STRUCTURE - ROYAL DUTCH  SHELL COMPANY
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THE ENVIRONMENT AND STRUCTURE - ROYAL DUTCH SHELL COMPANY

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  • 1. BUMGT2615 – Designing Effective Organisations GROUP PRESENTATION The Environment and Structure “Royal Dutch Shell” GROUP MEMBERS: SITI RIZKY MARDHANI 30109011 NURUL FARHANA 30109077 NUR FARIDA 30109154 RITHANYA 30109108
  • 2. COMPANY OVERVIEW Royal Dutch Shell is a multinational oil and gas company Second largest company in the world One of the six oil and gas super majors Vertically integrated and active in every area of the oil and gas industry
  • 3. HISTORY/OWNERSHIP Ownership of Royal Dutch Shell is centralised Decision making has made by top management Highly BureaucraticSIZE Large organisation with 90,000 employees and more than 80 countries operating Highly formalisation Highly centralisation Vertical differentiation
  • 4. TECHNOLOGY As a technology leader, Shell is the world’s biggest distributor They provide innovative way to bring more efficient energy for their customer Invest in developing vital technologySTRATEGY Generate profitable growth Aims to deliver benefits by making more energy efficient products by reducing the impact of their operations To improve the way they design, build and run their operations
  • 5. ENVIRONMENT Shell Company attract and deliver profitability in an environmentally and socially responsible ways. They work closely to their customers and partners To advance more efficient and sustainable use of energy and natural resources.PEOPLE Their people are working steadily around the world The varied skills and experience of people from different cultures benefits business in Shell Company. Helping them to better understand their customer across the world
  • 6. BURNS AND STALKER Two structure that can be define:-  Mechanistic structure  Organic structure Mechanistic structure has relate to Shell because:-  Large company  Have many employees It is also known as bureaucratic organisation
  • 7. DUNCAN’S COMPLEXITY AND CHANGE FRAMEWORK Two dimension of work :  The rate of change of environments  Environmental complexity Shell  combination of a stable environment and low complexity leads to low uncertainty for organisation Nature of the environment they face permits them to centralize their operations
  • 8. Key Considerations Of Designing Structures  Shell  really large organisation with enormous size  Large organisation is usually bureaucratic  2 out of 6 key considerations of designing structures in Shell  Formalisation  Centralisation  Formalisation of Shell  Highly formalised because it is a large organisation  Used mechanistic structure that characterised by high complexity, formalisation and centralisation
  • 9. Key Considerations Of Designing Structures  Centralisation of Shell  Decision making concentrated in a single point, usually the top management  Highly centralised because Shell applying formal structure which only concerned by the centralisation  Top management of Shell used formal authority to make discretionary choices to permit employees minimum input to their work
  • 10. Impact On Organisational Effectiveness Large organization applying bureaucracy like Shell hardly to be effective but can be effective Shell less complex but high in formalization and centralization Less complexity, Shell has few forces in environmental changing Still can be effective even centralised because of less complexity Highly formalized, all job descriptions and rules are clear stated to be followed  Employees producing products and services day to day and try to be close to customers, which lead to the company effectiveness
  • 11. Conclusion Shell Company is a large size organisation Once government owned and highly bureaucratized, it had become one of the world’s most dynamic, profitable, and widely admired oil majors Stability of Shell environment leads to centralisation and high formalisation Operations are mechanistic in nature, Shell differentiates itself into many different departments to meet the environmental elements as Shell has more than 80 countries operating the organisation
  • 12.  Based on Burns & Stalker  Shell used mechanistic structures in their organisation  Characterized by high complexity, formalisation and centralisation Duncan’s complexity theory  Dimension identified is environmental complexity. The greater the number of elements there are in environment, the more complex the environment  Oil companies like Shell face a complex environment because of the large number of environment elements they face  Shell Company has a stable environment combined with a low level of complexity leads to low uncertainty

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