BP TEXAS CITY

Case Study













Ahmed Tajammal
MBA II
Section A

Human Resource Management
Answer 1
Breakdown in the companys ethical systems played an important role in what happened at BP. Using the
findings of Baker Panel we are able to see that BP did not always allocated resources for process safety
performance, There was no common process safety culture among the refineries, BPs executive
management did not effectively respond to any information it received about process safety deficiencies.
Using the information provided to us in the case e are easily able to conclude that BP created a false sense
of confidence that it was properly addressing process safety risks and that cost-cutting helped compromise
safety at Texas City.
Answer 2

Occupational health and safety operates under general standard clause that each employer shall furnish
to each of his employees employment and a place of employment which are free from recognized
hazards that are causing are likely to cause death or serious physical harm to his employees. So, Yes
OSHA standards are definitely aimed at addressing problems like the ones like existed in BPs explosion
incident. OSHA has legally force able standards that are contained in 5 volumes and seem to cover in
detail just above every conceivable standard. Under OSHA, employees must maintain records of and
record certain occupational injuries and occupational illness.
So under these rules and regulations the BP management was responsible to report the small little
incidents that were taking place at its facility but the problem is that in many cases its not the employers
fault rather its employees fault who often resist. In BP case its evident from BP internal report that
working environment eroded to one characterized by resistance to change and a lack of trust. There
was a poor level of hazard awareness and understanding of safety which resulting in worker accepting
level of risk that were considerably higher then comparable installation. This explaining the reason for
continuity of problems for so many years.
Answer 3
1. In this case the BP Texas City the issue was with the top level and middle level
management that they were so lazy to keep a check and balance on the safety concerns
and there was very low awareness among the employees regarding the safe handling of
the equipment. Moreover the 70% reduction in the rate of injuries just a year before the
explosion made the OSHA to be lazy.
Answer 4
First, all employees need to implement a culture of safety and its importance starting with the
senior leadership of the organization. Second, all staff need to be trained and oriented on the
importance of safety. Last, a reporting Process needs to be implemented where staff can report
safety concerns without the fear of retaliation on the part of the employer. In a culture of accident
prevention, an organization should encourage staff to come forward and express pr report safety
concems at any time.


Answer 5
Yes in addition to the recommendations made by the baker panel and SCB there is one additional
recommendation that I would like to make and that is prohibition in the By-laws of the British Petroleum
that stops any of the future CEOs to cut the expenses on Safety measures. Because this is the only way
that will ensure that no such costs saving policies are adapted that compromise the safety of the people
working in the organization
Annwer 6
BPs human resource management seems to have supported the companys broader strategic aims as the
year before the explosion Texas City achieved a 70% reduction in worker injuries showing that individual
employees were having fewer accidents. BP wanted to cut costs because of which its operators and
maintenance staff worked high rates of overtime This shows that companies should always align its
employees goals with the main strategic aim of the company thus benefiting both.