Sample Management Essay: Management: Halliburton

Management: Halliburton

1. Introduction

Halliburton is one of largest oilfield Service Corporations in the world. Halliburton is an American Company whose head quarters are in North Belt office in Houston,Texas. Erle Halliburton started the company in 1919 under the name New Method Oil Well Cementing Company (NMOWCC). Since the company has experience steady growth to achieve its prestigious status. The company has numerous subsidiaries that operate in over 70 countries. Due to its diversified nature, the corporation has employed over 500,000 staffs globally.

Halliburtonmanagement has an integral role of running the organization by controlling and distributing physical assets, money, human resources, knowledge, and technology. The management aims to optimize the allocation of the resources at their disposal to ensure efficiency and effectiveness in operations. To enhance competitive advantage, the management combines these resources in their right proportions to maximize production capacity. To understand the role management better, this article considers how Halliburton utilizes two management functions: human resources and technology to gain competitive advantages.


2. Human Resources

Human resource is the most essential asset in the running and operation of any organization. Human resource management is a term used in business to mean "getting things done through people.” Apart from offering direct services, the human resources also provide entrepreneurial services, controls, and direct other resources to increase production. At Halliburton, human resources department has the discreet role of unifying the diverse organization resources under a single control. Moreover, the human resources supply the organization with skills, information and work competencies that help to produce the best out of the existing resources.

Human resources department works tirelessly behind the scenes to carrying our observations and analysis. At Halliburton, the human resources carries out market surveys, observes market trends, and analyzes viability of new market opportunities; the function is also known as crunching of resources. In other words, crunching of resources involves compiling composite data and metrics tracked from each employee, point out inherent inefficiency, and provide adequate remedial measures. Once the human resource department addresses individual employee’s weaknesses, the company’s is able to revive sagging profit margins on incremental basis.

By being a global operating company, Halliburton enjoys from large scales operations and resources outlay. However, controlling and assembling these resources efficiently requires the human resources to carry out an in-depth research operation to generate the right modernity to use. The human resources needs to survey and compile market trends, political parameters, social and technological dynamics that affects affect business on continuous basis. Prevalence of these forces not only presents some challenges to the business but they also hold back organization grow momentum. According to Salvendy (2001), ability of human resource department to adapt to the external forces positions the business strategically to meet the long-term goals. However, since most of these forces are dynamic, the human resources department needs to adjust strategies to accommodate current environmental situation. In addition, since Halliburton has gone global, external forces in each country are unique and highly differentiated, therefore, there is need to analyze each market separately to yield more returns.

The human resource department designs and implements the organization structure that suits its operations. In this case, Halliburton combines several organization structures within its huge organizational matrix structure to meet the need of each operating branch. Operation structure determines the flow of information, delegation, and chain command within the organization. At Halliburton, the CEO David J. Lesar together with the board of directors formulates organization strategies and disseminates them to the regional managers for implementation. The respective regional managers pass the strategies to through the line managers who enforce them and report to their senior promptly.


3. Technology

Organizations adopt technology as a tool to make work easier as well as enhancing efficiency in their operations (Bateman and Snell, 2010). Technology helps Halliburton to track processes, administer data flow, preserve employee records, monitor cash flows, and track communication. With adoption of the appropriate technology, Halliburton has managed to keep operation costs low by reducing the employees. In addition, technology integrates organization operations to enhance easier administration, control, and regulation of resources. Similarly, technology connects business with customers, suppliers, shareholders, and other stakeholders. By adopting technology, Halliburton enjoys a wide pool of information that emanates from global linkage and connections. Thus, the firm is able to enjoy increased productions, to offer superior customer services, and to offer affordable pricing for their commodities without compromising on quality.

Halliburton operates ecommerce where clients are able to see products in offer, purchase, and pay them online. Once an online transaction is completed, the organization arranges for delivery of the products as per the customer’s specifications. Online market has been useful for Halliburton since it allows customers to see products compare prices, and purchase without travelling to the organization depots. According to economic survey done in US the value of e-commerce sales increased from 3.6% to 3.7% (Marketing Charts, 2009). Owing to this fact, the organization will reap much benefit from participating in e-commerce a great deal. Similarly, products which are produced in other regions are also made available, accessible, and with universal prices. Therefore, consumers are able to utilize products and services produced at distant places without incurring higher charges.

Apart from the e-commerce, technology has effectively helped Halliburton to ease communication among its operation regions. The CEO use telecommunication technology to relay information to specific regional office immediately. Similarly, regional managers send their operation reports to the head office in a timely manner. Despite its wide geographical outlay, management information system (MIS) helps to integrate the composite operation to ease management. Thus, Halliburton board of directors’ follow organization operations, compares outputs against subsequent financial periods and makes strategic amendments to keep the operations on track in case of any observable deviations.

Recently, Halliburton introduced CleanStim hydraulic technology that extracts material from food industries. This technology is the first-of-its-kind that ensures access, production, and utilization of unconventional resources. The technology uses UV light to deal with bacteria rather than using additives. The process recycles water and allow it for reused, thus, hence preserve water wastage and environmental degradation.

Halliburton engineers use the simulators-Geo Tap: IDS Sensor to collect vital information concerning the fluid elements available underground. The system helps the company to assess, oil deposit and location. This technology has been useful compared to the traditional trial and error method that was cumbersome and very expensive. With the ever increasing competition, Halliburton is determined to use the available resources to ensure that the organization remain ablest of competitors in acquiring and utilizing latest technology.

Apart from increasing efficiency, technology has helped Halliburton to leverage its production system. The organization now uses mechanized production systems, which are more reliable, uniform, and devoid of human weaknesses, such boredom, demoralization, and error prone. Conversely, rapid dynamic in technology poses threat to any organization, thus, continuous investment in latest technology is mandatory of any organization to remain a competitive force.

 

Reference List

Bateman, T., S. and Snell, B. (2010). Management: Leading and Collaborating in the Competitive World, New York: McGraw-Hill Higher Education

Salvendy, G. (2001). Handbook of Industrial Engineering: Technology and Operations Management. New Jersey: Wiley-IEEE.

Marketing charts. 20089. Retail ecommerce sales rise in Q309. [US census Bureau] Retrieved from < http://www.marketingcharts.com/interactive/retail-e- commerce-sales-rise-in-q309-11125/us-census-bureau-ecommerce-percentage-retail-sales-november-2009jpg/>

 

 

 

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