Organisational Behaviour Assignment 1
Steven Craigie (19411081)
BHP Billiton is a large multinational corporation, with profits in the range of
$A3.5bn last year (Beveridge, 2005). The company has formed as a result of the
merger between BHP, an Australian mining company, and Billiton, a South African
mining company. There are two major environmental influences that are currently
impacting upon BHP Billiton: globalisation, changing social responsibility and
changing workforce. These environmental influences have impacted on range of
organisational behaviour issues and concepts within the organisation including:
motivation, managing a diverse workforce and equal opportunity.
Globalisation is defined as “The gradual reduction of regional contrasts at the
world scale, resulting from increasing international cultural, economic and political
changes” (de Blij & Muller, 1996). It has been a major environment impact on BHP
Billiton and in fact the two organisations merged in order to compete more effectively
in a global marketplace. Due to globalisation, BHP Billiton has had to deal workplace
diversity. Formerly, over half of Australia’s immigrants came from the UK in the
1960s whereas today they make up only 12% with 25% coming from the various parts
of Asia (McShane et al. 2005, pg 9). Furthermore with “China and India, the
developing world looking for the opportunity to move into a higher level of economic
opportunity” (Lanham, 2005, pg1), the workforce BHP Billiton employs is now more
diverse than ever before. As Mclenahen (2005) puts it, “Businesses now operate in an
environment in which long-standing societal concerns-in areas from diversity to equal
opportunity”. The company is now committed to developing a diverse workforce
(“Employment Principles”, 2005) and in fact perceives this as a positive, “drawing on
diverse experience, perspectives and approaches encourages innovation and is a
source of competitive differentiation for BHP Billiton (“Employment Principles”,
2005).
A diverse workforce may lead to increased workplace conflict, especially in
team based environments. According to BHP Billiton’s employment principles,
employees must be able to thrive in a team based environment (“Vacation
Employment”, 2005). With a diverse range of employees working together, team
members may have stereotypical views and prejudices about other members.
Unfavourable stereotypes often lead to unfair discrimination (“Stereotypes and
Predjudices”, 1990). With different views and stereotypes, this is likely to lead to
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Organisational Behaviour Assignment 1
Steven Craigie (19411081)
conflict between group members. Differing values and beliefs is often the cause of
conflict. Employees from diverse backgrounds will often fight over which way to
accomplish tasks due to their unique experiences (McShane & Travaglione, 2005).
Furthermore, along with diverse backgrounds there are diverse personalities that can
create conflict in a group environment. The Big 5 model: conscientiousness,
emotional stability openness to experience, agreeableness and extraversion (McShane
& Travaglione, 2005) indicates that some personalities handle different situations
better than others, which can cause conflict in a team based environment.
Changing social responsibility is another major environmental factor that has
impacted on BHP Billiton. In the past, there was very little social responsibility
exhibited by organisations. However, the times have changed and now “Business has
obligations to ensure that people under its employ, either directly or indirectly, are
able to earn a wage and that it be done not under threat of abuse, not using children
[and] not using extended working hours”(McClenahen, 2005). Moreover,
organisations have a social responsibility not to harm the environment in which their
business operates. BHP Billiton was previously involved in a situation where for
approximately two decades, they were slowly damaging the environment surrounding
it’s Ok Tedi mine in Papua New Guinea, which resulted in damaged waterways and
impacted tens of thousands of people’s livelihood’s downstream from the mine
(Burton, 2002). An organisation that does not adhere to its social responsibilities is
likely to result in employees experiencing cognitive dissonance, which is apparent
inconsistencies between people’s beliefs, feelings and behaviour (McShane &
Travaglione, 2005). Employees will try to reduce these inconsistencies and if they are
unable to, it can result in undue stress and lack of motivation. Futhermore, if
employees are unable to significantly reduce these inconsistencies, it leads to
emotional dissonance, the conflict between required and true emotions (McShane &
Travaglione, 2005). Emotions influence the way employees act. For example, those
who were experiencing cognitive dissonance about the environment impacts of the Ok
Tedi operation, may be inclined to resign, or develop anxiety and negative feelings
towards the organisation resulting in lower motivation and a lack of workplace
harmony. In order to deal with this issue, the company has altered its management
policies to deal with this situation. It’s management policies state “Activities and
operations are conducted in an ethical manner, that supports fundamental human
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Organisational Behaviour Assignment 1
Steven Craigie (19411081)
rights, respects the traditional rights of indigenous people and supports their cultural
heritage” (“HSEC Management Standards”, 2002).
BHP Billiton has also had to deal with an increasing number of women
entering the workforce. Only a few decades ago, only 20% of women in Australia and
New Zealand participated in the workforce, whereas today this number is well over
50% (McShane & Travaglione, 2005). The company specifically states in its
employment principles that discriminating against hiring someone based on gender is
strictly prohibited (“Employment Principles”, 2005). However there is still the issue
of women being paid more than men, which according to former U.S. Presidential
Candidate John Kerry, women are paid only 76c for every $1 a man earns in the same
job (Leo, 2005). If women feel that they are being paid less than men for doing the
same job, then they would be likely to feel an inequity in the workplace. According to
the equity theory, workers that feel under rewarded would likely reduce their effort
and performance to bring their rewards in line with their effort (McShane &
Travaglione, 2005).
In conclusion, BHP Billiton has and is currently dealing with a range of
environmental factors that effect organisational behavioural issues. It has been able to
learn from past experiences, as well as altar its company charter, employment and
management policies, in order to assist in dealing with these issues, which have
impacted greatly on the organisation.
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Organisational Behaviour Assignment 1
Steven Craigie (19411081)
Reference List
Beveridge, J. (2005). BHP Billiton digs out $3.5b. Australasian Business Intelligence,
Feb 17, 1
BHP Billiton > Employment Principles. Retrieved March 23, from
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.jsp
BHP Billiton > Vacation Employment. Retrieved March 24, from
http://www.bhpbilliton.com/bb/peopleAndEmployment/vacationEmployment
.jsp
Burton, B. (2002). The big ugly at Ok Tedi. Multinational Monitor, 23(1), Jan/Feb, 6
De Blij, & Muller.(1996). Physical geography of the global environment (2nd Ed.).
John Wiley and Sons, Publishers.
Grobman, G. Stereotypes and Prejudices. Retrieved March 30, from
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http://www.bhpbilliton.com/bbContentRepository/Policies/HSECManagement
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Lanham. (2005). BHP Billiton - CEO Interview [Electronic version]. CEO Wire,
15 Mar, 1
Leo, J. (2005). Of men, women, and money. [Electronic version]. U.S News & World
Report, 138(10), 21 Mar, 64
McClenahen, J. S. (2005). Defining social responsibility [Electronic version]. Industry
Week, 254(3), Mar, 64-65
McShane, S., & Travaglione, T.(2005). Organisational Behaviour on the pacific rim
(Enhanced Ed.). Australia, NSW: McGraw Hill Australia Pty Ltd.
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