Examining the Organisational Structure of UK Private Security Companies

Click to increase image sizeClick to decrease image size

Notes

1 This research was funded by the Economic and Social Research Council (ESRC), grant reference number PTA‐026‐27‐0049. The views expressed in this article are the author’s and do not represent those of the ESRC.

2 See Group 4 Falck website ⟨www.g4s.com/home/about/history.htm⟩ (accessed 9 Aug. 2005).

3 Group 4 Falck is a good example of a company that has over the last few years moved into the military security market. The company now provides a range of military skills for its customers for projects around the world. See website ⟨www.group4falcksss.ie/services.php⟩ (accessed 9 Aug. 2005).

4 D. Wilson and R. Rosenfeld, Managing Organisations (London: McGraw‐Hill Book Co. 1990) p.215.

5 Ibid.

6 The ISO 9000 family is primarily concerned with ‘quality management’. To achieve this standard an organisation must fulfill: –

	the customer’s quality requirements, and
	applicable regulatory requirements, while aiming to
	enhance customer satisfaction, and
	achieve continual improvement of its performance in pursuit of these objectives.

7 Christopher Beese, Chief Administrative Officer, ArmorGroup, questionnaire, 10 Nov. 2003.

8 O.E. Williamson, quoted in Stephen Ackroyd, The Organisation of Business: Applying Organisational Theory to Contemporary Change (Oxford: OUP 2002) p.52.

9 O.E. Williamson, Markets and Hierarchies: Analysis and Antitrust Implications (New York: Free Press 1975).

10 Ackroyd, Organisation of Business (note 8) p.63.

11 Ibid. p.54.

12 A. Chandler, The Visible Hand: The Managerial Revolution in American Business (Cambridge, MA: Harvard UP 1977).

13 H. Mintzberg, Structure in Fives: Designing Effective Organisations (London: Prentice‐Hall 1993).

14 Ackroyd (note 8) p.58.

15 Ibid.

16 Not all PSCs that adopt this model will operate with a CAO and CFO, while they all appear to operate with a COO. HART GMSSCO Cyprus Limited for example has a COO but no CAO or CFO. The responsibilities attached to these two posts are in all probability undertaken by other members of staff. Lord Richard Westbury, Chief Executive Officer, HART GMSSCO Cyprus Limited, Interview, 1 April 2004.

17 Michael Grungberg, official spokesperson, Sandline International, personal communication, 5 Feb. 2004.

18 Grunberg, questionnaire, 18 Oct. 2004.

19 Ibid.

20 Erinys Iraq was established in May 2003, see K. Royce , ‘US gives $400m in work to contractor with ties to Pentagon favourite on Iraqi Governing Council’, in Washington Bureau, 15 Feb. 2004.

21 Maj. Gen. John Holmes DSC OBE MC (Retd), Director, Erinys International, interview, 8 July 2004.

22 O. Morgan, ‘Soldiers of fortune hit the jackpot’, The Observer, 26 Oct. 2003.

23 C. Yarborough, ‘British Firm Lays Groundwork for Iraqi Oil Security’, Newhouse News Service, 19 Feb. 2004.

24 J. Ashworth, ‘Ex‐SAS protect firms in Iraq’, The Times, 21 July 2003.

25 K. Peters, ‘Protest of Iraq Security Contract Denied’(online) ⟨www.govexec.com/dailyfed/0904/092704kp1.htm⟩ (accessed 9 Aug. 2005).

26 Ackroyd (note 8) p.47.

27 Ibid.

28 Christopher Grose, Director, Business Development, Control Risks Group, interview, 11 May 2004.

29 The design of the organisational chart of a PSC in Figure 3 has been constructed from data supplied by ArmorGroup and Control Risks Group. The data was supplied through interviews and questionnaires filled in by employees of each company.

30 HART GMSSCO Cyprus Limited operates using five levels of decision‐making authority. The company does not have an Executive Committee or Regional Directors. Westbury, interview, 1 April 2004.

31 Beese, personal communication, 19 Jan. 2004.

32 Grose, interview, 11 May 2004.

33 The names given to these positions vary from PSC to PSC.

34 Grose, interview, 11 May 2004.

35 Beese, personal communication, 19 Jan. 2004.

36 Ibid.

37 Ibid.

38 Grose, questionnaire returned, 8 March 2004.

39 Ibid.

40 Wilson and Rosenfeld (note 4) p.216.

41 ArmorGroup, Group Procedural Manual, Vol.1, Section A‐2, p.2.

42 Grose, interview, 11 May 2004.

43 Westbury, interview, 1 April 2004.

44 Grose, interview, 11 May 2004.

45 ArmorGroup, Group Procedural Manual, Vol.1, Section A‐2, p.3.

46 Grose, interview, 11 May 2004.

47 Ibid.

48 Grose, interview, 11 May 2004.

49 Beese, personal communication, 19 Jan. 2004.

50 Holmes, interview, 8 July 2004.

51 Ibid.

52 Grose, interview, 11 May 2004.

53 Westbury, interview, 1 April 2004.

54 Beese, questionnaire, 10 Nov. 2003.

55 Ibid.

56 Grose, interview, 11 May 2004.

57 D. Kadlec, ‘Enron: Who’s Accountable’(online) ⟨www.time.com/time/business/article/0,8599,193520,00.html⟩ (accessed 12 Aug. 2005).

58 D. Leigh, ‘Who commands the private soldiers’, The Guardian, 17 May 2004.