Halliburton Management Planning

Management Planning

University of Phoenix

Management Planning

Halliburton has become one of the largest providers in the energy sector for products and services and has provided services to the United States government. In the past two decades, Halliburton has come under fire for its operational habits. The scrutiny stems from reports of possible interactions with terrorist states to reports of possible accounting fraud. Many issues such as ethics, corporate social responsibility, and legal issues can effect management planning. External and internal influences can shape companies strategic, tactical, operational, and contingency planning.

Within the life cycle of a company the planning process becomes an important part in propelling the company forward in order to achieve its goals. Planning is defined as "the conscious, systematic process of making decisions about goals and activities that an individual, group, work unit, or organization will pursue in the future. Planning is not an informal or haphazard response to a crisis; it is a purposeful effort that is directed and controlled by managers and often draws on the knowledge and experience of employees throughout the organization" (Bateman & Snell, 2009, p. 132). The planning function can be responsible in setting goals as well as making sure those goals are being met.

Halliburton had to explain their actions in the past and defend the company from accusations stemming from the SEC, I.R.S., and the U.S. Military. "The aim of ethics is to identify both the rules that should govern people's behavior and the "goods" that are worth seeking. Ethical decisions are guided by the underlying values of the individual. Values are principles of conduct such as caring, being honest, keeping promises, pursuing excellence, showing loyalty, being fair, acting with integrity, respecting others, and being a responsible citizen" (Bateman & Snell, 2009, p. 168). Unethical behavior occurred overseas when KBR, a Halliburton subsidiary, had contracts to provide U.S. troops with an array of logistic services from laundry to entertainment, and housing. In 2006 a former Halliburton employee came forward with allegations of the company supplying the U.S. troops with contaminated water which was hazardous and contained fecal matter. "Captain Michelle Callahan, M.D., a U.S. army surgeon in Iraq with the 101st Sustainment Brigade, told the committee in an e-mail message that water containing human fecal matter and other human waste was being re-circulated by Halliburton back into the non-potable water supply used by the troops for showering, brushing teeth, shaving, washing clothes and preparing food and coffee. According to Callahan, "concentrate reject was being used to fill the water tanks."

After finding coli form bacteria and e-coli in the water, Callahan said a Halliburton official informed employees that, "there's not a problem with it" (Donahue, 2006, p. 8). Preventative measures could have been taken and been put in place which could have kept U.S. troops from becoming sick if employees of Halliburton had better ethics and values. These preventative measures could have saved the company from being the center of attention in the media.

There have been many legal issues which have forced the management of Halliburton to operate differently. Shareholders accused Halliburton of using deceptive accounting practices in the 90's, and showed the company reported more revenue than it actually