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Using The Relevant Concepts, Theories And Models,Describe And Analyse A Company's Organisational Culture And Discuss,Whether Organisational Culture Can Be Managed

4844 words - 20 pages

IntroductionOrganisations have been in existence for a number of years and they are ever evolving due to the constant changes taking place in the business environment. A lot of research culminating in a number of theories has been undertaken looking at how organisations function. Organisation theory places a lot of emphasis on organisational culture since it is central to everything that a company does. Empirical evidence suggests that corporate culture is directly linked to an organisation's performance, growth and success (Alvesson, 2002). Organisation wide activities revolve around a company's culture (University of Leicester, 2008). There have been a number of contrasting ideas regarding ...view middle of the document...

Its history dates back to 1933, when it was known as the California Arabian Standard Oil Company [CASOC], a company affiliated with the Standard Oil Company of California, now widely known as Chevron Texaco. In the same year that it was founded, the Kingdom of Saudi Arabia gave CASOC exclusive oil concessions and prospecting began on the east coat of Saudi Arabia. Three years later, Texaco acquired a fifty percent stake in CASOC, which later changed its name to the Arabian American Oil Company in 1944. Exxon Mobil would later buy a stake in Aramco, resulting in massive oil infrastructure being developed. The government of Saudi Arabia also acquired a twenty five percent stake in the company and spearheaded the building and development of local oil refineries. In the early 1990s, the company started investing in certain oil companies located outside the Kingdom of Saudi Arabia, resulting in the acquisition of a forty percent interest in a Philippine based oil refining company known as Petron.The company would later enter into a strategic alliance with Texaco and Shell, resulting in the formation of Motiva Enterprises LLC, whose main line of business was the refining and marketing of oil products across the United States. The success of Aramco was widely acknowledged and it has been ranked the number one oil company in the world for 11th consecutive years by the Petroleum Intelligence Weekly. The company continues to experience phenomenal growth and has expanded its business interests outside the oil industry. The King Abdullah University of Science and Technology, a $10 billion world class graduate research university, was commissioned in 2007 . Saudi Aramco currently employs over 51,000 people located in sixty six different countries. The company continues to produce close to one million barrels of oil per day and is considered a leader in the oil industry. Saudi Aramco comprises 1 President, 7 Senior Vice Presidents, 30 Vice Presidents and more than 160 Mangers. Its mission as an integrated international company is to engage in all activities related to the hydrocarbon industry on a commercial basis and for the purpose of profit.Saudi Aramco's Organisational CultureCulture can be defined as the way things are done in an organisation (University of Leicester, 2008). (Randlesome et al., 1990) see that organisational culture determines a company's development, while (Magala, 2005) refers to culture as "the way we do things around here." Research indicates that there is a clear distinction between corporate culture and organisational culture. While organisational culture encompasses all cultures within an organisation, corporate culture is specifically concerned with how managers behave and act in an organisation (University of Leicester, 2008). However, (Lessem, 1990) is of the view that it should not be limited to managers only since it has an organisation wide purpose. Saudi Aramco's organisational culture is based on basic assumptions which...

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