Baker Hughes: A Large Company in Oil Services and Industry

956 Words2 Pages

BAKER HUGHES

Introduction

Baker Hughes, one of the largest companies in oil services and industry that is well known for oil and gas industry with products and services for drilling, production and reservoir consultancy. It also provides assistance to operators in making the most out of their reservoir.

The incorporation was formed when the two, Baker International and Hughes Tool Company merged in 1987. The story behind this merge is Baker and Howard Hughes's breakthrough inventions that transformed the whole fledging petroleum industry. In 1907, Baker produced a casing shoe that restructured the cable tool drilling. In 1909, while Howard Hughes introduced the first two-cone drill bit that radically improved the rotary drilling process.

Currently, the company has more than 60,000 employees who work in more than 90 countries to help customers in finding, evaluating, drilling , producing, transporting and processing their resources. The company is also organized into four regions which are Europe, Africa, and Russia Caspian (EARC), Middle East and Asia Pacific(MEAP), North America, and Latin America, with head Quarters in Houston, TX, United States of America.

Explain the organizational structure of the firm (drawing is obligatory). Which type are they adopting?

• Chart

Baker Hughes has a strong organizational structure, due to its competitive workforce, that is broken down into diverse departments like HR, finance, operations, and marketing departments. inside these departments all workers have a subtitle such as HR Analyst, Controller of Finance, Department Administrator, and Operations Marketing Account Manager.

Baker Hughes has its large vertical structure with emphasizing ...

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...ts in case it needs more information to make a better decision

• 5. Refer: The project can be transferred and referred to a group that is best associated with its application. The most important stage is approval/refusal of the product/service. The difference between the past and Nowadays in Baker Hughes Stage and Gate process is that in the past, they used to approve a project if it is attractive regardless whether the have sufficient resources or not. But this created the problem of having too many projects in the pipeline that needs to be executed, and it eventually slowed down the progress of innovation in the company. This issue has been resolved by providing the management with extra information about the resources necessary to complete a project and according to the resources they take the decision of whether to execute or kill the project.

Conclusion

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