Organizational culture is fundamental in determining the direction that an organization takes in terms of behavior, beliefs, and values. A group of people working in the same organization depicts certain personality that enables it to meet organizational expectations. Chevron Corporation has succeeded in its operations due to its strong organizational culture, which guides employees on how to regulate their behavior to attain perceived set of values. Such culture has also contributed in the establishment of its leadership style, which encourages innovation and inclusivity.
Chevron and Organizational Culture
Chevron is a multinational corporation that deals with mainly in exploration, refining, marketing and transportation of oil and gas. Other activities that Chevron Corporation undertakes include geothermal energy production and chemical manufacturing. The corporation has spread its products and services to more than 180 countries, with its headquarters being based in San Ramon, California. The corporation also engages in manufacturing and trading of lubricant additives, plastics for industrial purposes, fuels, and commodity petrochemicals as downstream operations (Jargosch & Jurich, 2014). The corporation is a workplace of about 62,000, who are employed in different branches worldwide.
The company’s culture depicts how thing are done within the company’s facilities. ‘The Chevron Way’ expresses the company’s vision, which is to become the global energy firm most accepted due to its people, partnership, and performance (“Operational Excellence Management System,” 2010). The corporate culture corresponds with the Operational Excellence management System (OEMS), which places priority on excellent performance to sustain the competitive edge. The company also endeavors to minimize risks associated with its operations to enhance safety within its facilities, as well as the surrounding area.
Organizational culture determines employees’ behavior and, consequently, their productivity. According to Patel (2015), Chevron’s employees respond positively towards the company’s culture, which support their wellbeing. The corporation offers health and fitness centers with its facilities or through membership. Although Chevron Corporation had gained a bad reputation earlier due to safety issues and environmental interference, its employees appreciate how the company handles issues concerning safety, equality in opportunities, and team motivation.
Chevron’s Leadership Style
Although oil companies rarely receive accolade from the media, Chevron has been termed as one of the best employers based on employee satisfaction, pay, and recreation. Such recognition can rarely occur without an effective leadership style. The corporation emphasizes on employee wellbeing in its leadership to realize the best outcomes. The corporation has always been ahead in the promotion of global health. In 2008, Chevron developed into The Global Fund to eradicate AIDS, Tuberculosis, and Malaria, where it committed $30 million to Global Fund activities with an aim of eradicating such diseases in Asia and Africa (“Leadership Style,” 2011).
The corporate strategy is to invest in people, undertake its operations with excellence, and expand profitably. Its management believes in value-driven leadership where every employee is valued for his/her contribution. Chevron is lead by great leaders who adjust their leadership style to fit the business environment. They exercise their competence through the company’s vision, which underlines recognition and performance. Being a partner of choice for many investors requires leaders to be revolutionary in their support for corporate social responsibility. The corporation has also adopted a strategy of recruiting and promoting women within its workforce.
Philanthropy is enshrined in the company’s leadership, as it places people at the core of its operations. Leaders in Chevron Corporation have taken part in the development of science and mathematics in school with an aim of developing innovative future generation. The company has established a global women’s mentoring plan to facilitate inclusivity and to motivate women to fight for their position in organizational leadership.
How Culture Affects Leadership Styles
Organizational culture plays a crucial role in development of leadership styles within organizations, as successful companies are bound by their perceptions on culture. In Chevron, activities are carried out through teamwork, which makes it easier for managers to achieve results. Through the corporate’ vision, managers are able to commit their efforts in delivering exceptional performance. The OEMS assist in the identifying and managing risks that the corporate encounters at the global level. Leaders are involved in the training of new employees to ensure that such employees understand the company’s values and norms. Through policies and training, leaders in Chevron Corporation contribute in instilling the sense of safety and health, which are the pillars of the corporate culture. If leaders fail to recognize the need for safety, they cannot succeed in the promotion of a healthy workforce.
Leaders in Chevron Corporation decide on the activities and behaviors that should be applied to specific organization roles, where they take action to incorporate them into the corporate culture. The quality of decision making within the company has remained high even when there is a change of leadership because the company executives understand the significance of culture in the workplace. The leaders strive to maintain operational excellent performance without interfering with the culture. Leaders hardly change organizational culture because a change in culture would necessitate a complete overhaul of every department (Alexandra & Fort, 2015). Hence, culture influences the style of leadership that a company assumes.
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Jargosch, R. E., & Jurich, J. (2014). Chevron Corporation Patent Landscape Analysis – January 1, 1994 to December 2013. Pensacola, FL: IP Genix LLC.
Operational Excellence Management System (2010). Chevron.
Patel, S. (2015, Aug. 6). 10 Examples of Companies With Fantastic Cultures. Entrepreneur, Company Culture.
Shetty, N. (2011, May 12). Leadership Style at Chevron Corporation Management Paradise.com.