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Shells Authoritative Structure Essay Example

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Shells Authoritative Structure

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Shells Authoritative Structure. An authoritative structure, however, may result in a strong culture that may not be receptive to change (Mullins, 1999; Schein, 2004). The fact that Shell could transform themselves into their new structure is because of the already flexible and decentralized structure they had before the changes were enforced. A strong central authority may pose the danger of excessive manipulation from the corporate executives in terms of decision-making, which may cripple the lower operating units by giving them less autonomy. This is especially problematic as the operating units are the vital entities that deal with the end users, the customers, on a daily basis, and not having the power to make decisions may ultimately result in customer dissatisfaction.

This is true particularly for the new millennium due to increasing globalization, and the subsequent increase in demand to satisfy a global customer base. Hence the notion that the Shell Group ‘is a prisoner of its own illustrious past’ holds true, as the organization seems unwilling to change the way they operate at the corporate level.
As the case suggests, while their competitors have effectively managed structural changes, mergers, and acquisitions according to the demands of the industry, Shell is still in the act of catching up because of its relatively slow progression into the future, which is probably due to possible complacency at the corporate level. This may call for a deeper analysis into the corporate centers’ environments, both internal and external. The case confirms that after the successful restructuring, every business unit has been encouraged to be competitive with respect to its own product range in its own environment. This can be done through various strategic concepts like PEST analysis, which analyses the political, economic, sociological and technological aspects of any given environment that influence how a business emerges or operates in that environment (Kotler et al, 2008). Shells Authoritative Structure.

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preview essay on Shells Authoritative Structure
  • Pages: 11 (2750 words)
  • Document Type: Essay
  • Subject: Management
  • Level: Undergraduate
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