The Halliburton Chronicles
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The Halliburton Chronicles
For almost a century, Halliburton also known as Big Red has made an indelible impression on the world. Founded in 1921 as the first oil rigging and cement pouring company also responsible for developing cutting edge technologies, oil production and equipment, constructing monumental infrastructure products and managing logistics for military operations. Halliburton has two major operating groups: the Energy Services Group (ESG) with 35,000 employees and Kellogg-Brown-Root (KBR) with 65,000 employees. Halliburton has been the leader in energy services and engineering and construction industries. Halliburton is one of the largest corporations in the United States, with a workforce of 100,000 people in over 120 countries. Halliburton has also been a major contributor to the war in Iraq and has had considerable legal, ethical, and moral issues on a global scale with government and citizens in the countries of operation. This global corporation with tentacles spanning around the world affects anyone who uses any form of petroleum or has anything to do with American military.
The objective of this article is to describe the planning of functional management, legal issues, ethics and corporate social responsibility of the Halliburton Company. Planning is a crucial function of management that enables an organization to achieve its maximum potential. It is also the primary management function, which formalizes an organizations goals. Halliburtons unique approach to management is a system that leaves no stone unturned. Halliburton uses a system known as Knowledge Based Management or (KM). The basic elements of this management system include, making sure all levels of management are well informed and supported from the start, stay in touch with issues that are most important, and to make sure no one overlooks the real value of the objective or goal.
Michael Behounek is the director of KM at Halliburton. A graduate of Pepperdine University and former global quality manager for the Energy Services Group, he was responsible for improving service quality, customer satisfaction and quality cost management. He has a history of leadership and vision. Michael has been a part of KM since its inception (mid 2001) and is responsible for strategic planning, project development and deployment. The main objective of KM at Halliburton is on using formal communities of practice to solve complex business issues. KM system has been tested on at least 17 communities and all have had measurable success. Halliburton has also won several achievement awards for their success using the KM system.
Michael makes it clear to the employees and core teams that KM must be deployed in a consistent methodical procedure as the rules set out. Employees and core teams that have tried to use the KM system skipping important procedures have failed and must start from the beginning at the KM core training program.
Halliburton has not been without there share of serious legal and ethical issues since the Iraq war began. The Halliburton Corporation is the largest private contractor in the war on Iraq. They provide shelter, food, water, transportation and just about everything else that goes with the business of war. They have also announced that they will be moving their corporate offices from Houston, Texas to Dubai, a region of The United Arab Emirates (UAE) in Saudi Arabia. This will completely absolve the corporation from income taxes in the United States of America. This issue has The President and Congress in a difficult situation. The United States and Allies made the conscious decision to hire Halliburton as the primary contractor to the war in Iraq and has serious questions as to the reason for this move.
The Code of Business Conduct of Halliburton Company contains specific corporate policies adopted by the board of directors that relate to the legal and ethical standards of conduct of employees and agents of the company. It is difficult to apply all the applicable laws set forth by Halliburton in other countries. It is the personal responsibility of each employee to adhere to the standards and restrictions, whether imposed by law or Halliburton.
Three factors that impact legal, ethical and corporate