The U.S. Government named BP as the responsible party in the incident and held the company accountable for all cleanup costs resulting from the oil spill. BP accepted responsibility and started to look into what brought about the disaster. On September 5, 2014, a federal judge ruled that BP was "grossly negligent," and fined the company a record $18 billion under the Clean Water Act. He ruled that BP repeatedly cut corners to boost profits. If this ruling sticks, the spill will cost BP $58 billion in court fees, penalties and clean-up costs. (Source: WSJ, Judge Hammers BP for Gulf Disaster, Sep 5, 2014).
The objective of this research is to find the major Organizational Behaviors issues that contributed to the BP Oil Spill disaster. The above objective was expressed in terms of a set of questions that are appropriately reflective of the situation:.
Q1.What organizational changes needed to be made to prevent or limit the effect of future crisis?.
Q2.What organizational flaws existed that contributed to BP's response regarding the oil spill?.
Q3.What decision making process might BP be able to put in place to balance profit and corporate responsibility?.
Leadership Style .
According to (Robbins & Judge; 2014). There are different types of leadership that contribute to the success of an organization job performance and productivity.
- Transformational Leader.
- Participation Leader.
- Charismatic Leader.
Studies shown that the CEO of the company fail to take responsibility that led to the crisis, ultimately it appears the organization culture ignored taking risk and expert's advice that was informed earlier to the leaders of Bp. Failure on the part of the leader to transform the organizational culture and dysfunctional management led to the spill.
Lack of Accountability.
Leaders must take full responsible for their action in decision making since they are the ultimate targets when it comes to the achievement or failure for progression.
