Organizational Structure and Design - Essay Example

of the of the Organizational structure is characterized as a hierarchical arrangement ofmanagement authorities that define the line of communication, roles, responsibilities, and rights of persons within specific offices of an organization (Business Dictionary, 2013). The structure also clarifies the relations of power and responsibilities that illustrate control and coordination within levels of management (Business Dictionary, 2013). Experts contented that structure is reliant on organizational objectives and strategies. Often the top side of the structure is the decision-making body of the organization and are exercising supervisory control over departments within the organization or its subdivision (Business Dictionary, 2013). In organizations with decentralized operation or are having subsidiaries, the decision-making is autonomously exercised in their respective companies but there is interdependence and collaboration when all departments or subsidiaries are gathered in an assembly to deliberate their respective issues and operations (Business Dictionary, 2013). Proctol and Gamble, a company that sells variegated products have an organizational structure per product. Each of this structure is reflective of their regional location because the organization thrived on the behaviour, culture, politics and environment of the communities served. Like other existing corporation, the organization needed to manage the entire organization using systems, frameworks, and models to ascertain that all systems are coordinated and are contributing to the overall targets and desired outcome of the company. The structure of the company is designed to meet expanding services and delivery of products of its “33 manufacturing facilities in 21 different states or territories and another 103 manufacturing facilities in 41 other countries that produce multiple beauty, grooming, baby and family care, fabric and home care, and health care products (US SEC, 2012, p. 7).” On operation, the company that provides branded and quality products for consumers around 180 countries relied on branding as a business model and creation of new products that would deliver competitive quality in the market. There is evident rigorous marketing and delivery of these products in the market as part of the competitive ability of the corporation (US SEC, 2012). As a conglomerate, it has a centralized decision-making body in its structure that oversees its foreign and domestic operation, human resources, research and development, expenditure, and employees (US SEC, 2012). The company is likewise sensitive on their accountabilities to meet the regulation, environment, tax and intellectual rights that could significantly impact on its corporate operation (US SEC, 2012). They have departments too that are specifically focused on the use of technology, business development, legal matters, human resource management, corporate services, brand building, comptrol and product delivery or supply (US SEC, 2012). These are structurally designed as global business units, operations, business services and for corporate functions (US SEC, 2012). The finance department of the company is its most significant department of the company because its investments and distribution of capital are strategically calculated to meet all the accounting, treasury, external relations, corporate governance, human resources, legal, and other functional support (US SEC, 2012). Its corporate targets too re focused on attaining financial leverage such at least attaining 1% -2% organic sales’ growth in the market in categories and in location where there are fierce competition; doubling its core EPS growth from single digits; and generate an improve cash flow productivity of 90% or greater (US SEC, 2012). The department has maintained its financial transparency based on its annual report; figuring to have attained a net sale of 83.7% and net earnings of $10.8 billion (US SEC, 2012). Its marketing department too have the widest latitude of operation since the company is present in 180 countries around the world and hence, production of products are deliberately planned out to meet the market demands (US SEC, 2012). With the advancement of technology, the company have also used information technology in marketing and supplying products, including the operational transactions of these conglomerates around the world (US SEC, 2012). Of course, the financial department were also keen on enforcing hedging as protective measures in the foreign exchange rates potential fluctuations in the market (US SEC, 2012). With such large operation and production, the company relied on its human resources that are mostly skilled in chemical engineering, pharmaceutical, research, marketing and service delivery. The human resources were managed in accordance to the diverse policies of countries where the corporation is present. While the subsidiaries of the company operates in a decentralized manner, the corporation maintained clarity of its goals and targets through its decision-makers that acted as parent company to the many manufacturing companies they have. Like other companies, the Proctor and Gamble developed a functional structure for administrative development and operational management but others with lesser operation may focus simply on having production, marketing and sales department. This is enough to have functional structure for small business operation although the challenges here are to break down the boundaries between departments to widen the communication in between (Chron, 2013). Other companies have divisional structures to fit with the geographical demands of the operation (Chron, 2013). For instance a car producer company need to have a division devoted for the production of metals required, an engineering division for the construction and modelling; and, a sales and marketing division where the products are targeted to be sold (Chron, 2013). Most of the human resources in these divisions are not communicating because they don’t share the same workplaces and they do not have similar works to do (Chron, 2013). Still other companies use an organizational matrix structure where there is a hydrid division of functional structures, such as those used by other multinational companies (Chron, 2013). This structure posed the challenge of power struggle because of its enforcing dual management (Chron, 2013). Indeed organizational design is reflective of the geographic presence of the company in the region and its functionalities are engineered to meet its targeted outcome (Chron, 2013). Most of them are technically producing services to meet customer demands in the market and may use a hybrid system if its operation is wide and variegated (Chron, 2013). The challenge for the management is how to make its structure reflect its organizational goals and outcomes (Chron, 2013). References Business Dictionary (2013). Organizational Structure defined. BusinessDictionary.com, US: WebFinance Inc. p. 1 http://www.businessdictionary.com/definition/organizational-structure.html#ixzz2X2jagBS7 US SEC (2012). The Procter and Gamble Company, US: Annualreport.pg.com, pp. 1-70. http://annualreport.pg.com/annualreport2012/files/PG_2012_Form_10k.pdf Writing, A. (2013). Different types of Business Structures, US: Chron, p. 1. Retrieved: http://smallbusiness.chron.com/different-types-organizational-structure-723.html Read More