22,The greatest deficiency of BP plc's decentralized,performance management system based upon performance contracts for individual managers that was implemented by CEO John Browne at during 1995-2007,was
A)Power was not really decentralized because of Browne's dominant influence
B)As a former state-owned oil company,BP's culture could not adapt to a performance management system that emphasized individual initiative
C)Decentralized,performance management is not appropriate to an oil and gas major where time horizons are long term,key strategic decisions must be centralized,and risk management is critical
D)Oil and gas companies must be rum by engineers and technical specialists who do not respond well to performance targets.

Question

Quizplus · Accepted Answer

The greatest deficiency of BP's decentralized,performance management system was that it was not appropriate to an oil and gas major where time horizons are long term, key strategic decisions must be centralized, and risk management is critical. In an industry where safety and risk management are of utmost importance, a centralized approach to decision making is necessary to ensure that all aspects of the business are considered and risks are properly managed. BP's decentralized approach left room for errors and misjudgments that led to the Deepwater Horizon disaster in 2010.

22,The Greatest Deficiency of BP Plc's Decentralized,performance Management System Based