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Organisational Structure of Union Oil Company of California (Unocal)

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Netra Shetty
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Organisational Structure of Union Oil Company of California (Unocal) - February 7th, 2011

Union Oil Company of California, dba Unocal (pronounced /ˈjuːnɵkæl/) is a defunct company that was a major petroleum explorer and marketer in the late 19th century, through the 20th century, and into the early 21st century. It was headquartered in El Segundo, California, United States.[1][2]
On August 10, 2005, Unocal merged with Chevron Corporation and became a wholly owned subsidiary. Unocal has now ceased operations as an independent company, but continues to conduct many operations as Union Oil Company of California, a Chevron company.


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Should businesses be set up and managed in accordance with democratic principles? Should employees be allowed to vote, either on who gets top jobs or on specific strategic decisions? Organizational democracy has its advocates, but it is really one of those nice ideas that doesn’t really apply to business if you take a hard look at it.

On the surface, it is easy to see why democratic decision making in organizations might appeal to a lot of people. It is well known that involving people in making decisions that affect them has a lot of benefits. It is a means of motivating employees, developing them and fostering ownership or commitment to a course of action. It is pretty obvious that employees are more likely to be motivated if they feel some ownership over plans and outcomes rather than if they are simply told what to do, as if they were robots.

Then there are employee profit sharing and stock ownership schemes that can be a powerful motivational tool. But these ideas don’t quite amount to organizational democracy, because they offer employees a share of business success without giving them a democratic vote in what the business should do. Such schemes can have a constructive impact on employee motivation, however.

No matter how big or small a business, a basic organizational structure has to be in place to give the business direction. The founder of an organization or the person in charge has to structure his or her business in a way so that it can function smoothly and flawlessly. The first step to ensuring this state is creating a basic organizing board that clearly states the functions of each section, department, and the people who run it. This means that there has to be a comprehensive command channel for each executive, manager and employee to follow, thus ensuring sanity and smooth operational flow between each terminal. By terminal is meant any post or posts a person is holding.

The best way to accomplish this task is to have a visible and easy to follow flow chart in between sections, departments and terminals that are paid to fulfill their responsibilities. It is important that the name and post of each staff member is clearly and appropriately indicated on this chart.

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