HUL ORGANIZATIONAL STRUCTURE AND CULTURE SUBMITTED TO MRS. SHRIMI SRIVASTAVA
Group 3 Akshay Bahl ( 03 ) Poly Karmakar ( 11 ) Manvendra Singh Chauhan ( 27 ) Praveen Joshi ( 39 ) Pallavi Bakshi ( 40 ) Bhumika Panwar ( 41 )
ORGANIZATIONAL STRUCTURE Organizational Structure is the formal division of tasks, responsibilities and authority in an organization set-up. The framework, typically hierarchical, within which an organization arranges its lines of authority and communications, and allocates rights and duties. Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management. An structure depends entirely on the organization's objectives and the strategy chosen to achieve them. In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions have varying degrees of autonomy. An organizational chart illustrates the organizational structure
BASICS OF ORGANIZATION STRUCTURE Differentiation refers to the breakdown of a work re lated tasks where each individual is
responsible for a set of activities. It occurs in 2 d irections-vertical irections-vertical and horizontal. hor izontal. Integration is the process where coordination and control of peo ple and functions is
excercised so that organizational tasks are undertaken and goals are achieved.
ORGANIZTION STRUCTURES IN USE Line Organization Structure y
This is the oldest as well as the most common type of organization
y
Used
y
The characteristic feature of this kind of organisation is that t he line of authority flows
by many concerns especially small ones
vertically from the top most executive to the t he lowest sub ordinate y
Strict discipline exists in the enterprise
y
Clear
y
Who
lines of accountability
reports to whom is clear
Functional Organization y
In the functional organization, each job becomes the focus point
y
The functional areas will have personnel with w ith varied skills, but those skills are grouped o n their similarities. similarities. The people peo ple who have identical ident ical skills can be grouped easily and they t hey can be placed in separate units and a foresaid organizational structure is formed.
Committee form of O of Organization y
A Committee is a group o f people appointed and entrusted with the task of taking collective decisions on any matter
y
The committee jointly holds authority
y
No
member can exercise his h is authority outside the committee
Matrix Organizational Structure y
The matrix organization structure is a two directional structure where an individual works under both vertical and horizontal line of command.
y
This structure combines functional and project o rganizational structure.
y
This form is identically suited for companies, such as construction, that are ³project-driven´.
ORGANIZATION STRUCTURE AT HUL ± FUNCTIONAL STRUCTURE
WHY FUNCTIONAL STRUCTURE Sk ill ill Development
One benefit of a functional organization structure is the positive atmosphere it provides for skill development. Because a functional structure groups people performing similar tasks that require certain skills, more experienced or talented group members serve as examples and mentors to individuals with less experience. This leads to continuous growth and development within the organization from simple day to day interaction, instead of having to rely on spec ialized seminars or workshops to improve the quality qua lity of work coming out of a department. depart ment. Coherent Chain of C of Command
A functional structure for organizations establishes a very concrete chain of command. For example, a photo department and graphic design department may fall under the purview of a
visual arts department under the purview of o f a marketing department within a larger co rporation. A clear chain of o f command is important because it creates standard operating procedures, established consequences and enhanced accountability. In turn, productivity occurs on a more proficient basis. Expedited Decision Mak ing ing
Functional structures in organizations can speed u p the decision-making process. Usually, group decision-making can slow down progress pro gress on projects because of the diverse perspectives involved. While people will still have differing perspectives under functional structures, similar similar professional and educational backgrounds offer more common ground than not, theoretically making the decision-making process much easier eas ier to navigate. Moreover, the streamlined hierarchy facilitates more authoritative decision-making, which requires far less deliberation most of the time. t ime. Qualified Supervision
Functional structures offer a very specific career ladder for participants. As such, individuals attaining a supervisory role are more likely to have had experience in the tasks they are evaluating their employees on. This gives them better insight and credibility when they make their evaluations, and can allow them to offer more constructive feedback because they have a firsthand understanding of the jobs the individuals being evaluated are performing.
Specialized R esults esults Because everyone in a functional structure is operating in an area of expert ise with peers of similar expertise, their contributions to the overall goals of a co mpany or organization will be more specialized. Unlike teams where members serve in drastically drast ically different capacities, like a graphic designer and copywri cop ywriter ter working wo rking together, group members in a functional structure have expertise in similar areas, and can push eac h other to greater heights. As the saying goes, steel sharpens steel, and coworkers in a functional structure can sharpen each other's ot her's skills. skills.
ORGANIZATION CULTURE Organizational culture is an idea in the field of organizational studies and management which describes the psychology, attitudes, experiences, be liefs and values (personal and cultural values) of an organization. It has been defined as "the specific collection of values and norms that are shared by people and groups in an organization and that control the way they interact with each other and with stakeholders outsi out side de the organization." o rganization." Organizational culture is a set of shared mental assumptions that guide interpretation and act ion in organizations by defining appropriate behavior for various situations. Although it¶s difficult to get consensus about the definition definition of o f organizational culture, several constructs are commonly agreed upo n ± that organizational culture is holistic, historically determined, related to anthropological concepts, so cially constructed, soft, and difficult to change.
CHARACTERISTICS OF HEALTHY ORGANIZATIONAL CULTURES Organizations should strive for what is considered a ³healthy´ organizational culture in order to increase productivity, growth, efficiency and reduce employee turnover and other counterproductive behavior. A variety o f characteristics characteristics describe a healthy cu lture, including: y
Acceptance and appreciation for diversity
y
egard R egard
for and fair treatment of each e mployee as well as respect for each e mployee¶s
contribution to the company y
Employee
pride and enthusiasm for the o rganization and the work performed
y
Equal
y
Strong communication with all employees regard ing policies and company issues
y
Strong company leaders with a strong sense of direction and purpose
y
Ability to compete in industry innovation and a nd customer service, as well as price
y
Lower
y
Investment in learning, training, and employee k nowledge
opportunity for each employee to realize their full potential within the company
than average turnover rates (perpetuated by a healthy culture)
ORGANIZATIONAL CULTURE AT HUL ³Unilever is home to some of the most innovative people in the industry. Our culture is about what we believe in and how we act collectively.´ The important things in life
It varies around the world because, naturally, people have different points of view depending on where they live. But some things are consistent; important things that determine how we interact with colleagues and partners, customers and co nsumers. Most important are our high standards of corporate behavior, which are enshrined in our code of business principles. We also have high ethical standards, both in terms of people and the environment. What's
more, we are proud of this business and what it does ± bringing trusted products to
millions millions across acro ss the globe. In fact we have a phrase for our philosophy: 'doing well by do ing good'. We
value co lleagues as individuals, we're friendly towards each other and we're informal in
terms of corporate behaviour and, to a large extent, dress code. We go out of o f our way to build personal networks throughout the company, not just in our area of responsibility. Finally, we believe in everyone's ability to develop and grow. Whatever our function, role or level, we all have an equal right to take advantage of learning opportunities and progress how we want to in our chosen careers. Be yourself
Our people have a passion pass ion for achievement, strive for outstanding results and are det ermined to get things done. To make sure that happens each and every day, we have created a working environment in which you can be yourself. yourself. After all a ll,, as a business we need to be as diverse as our millions of consumers around the world.
HOW WAS ORGANIZATIONAL CULTURE OF HUL FORMED FORME D AND AND CHANGED? CHANGED? Organizational culture is socially constructed ± it is created and changed through conversations. Each
conversation makes meaning of observable actions and reinforces, builds upon, or challenges the
current cultural norms and beliefs. The concept of social construction of organization culture is vital for leaders and offers them an opportunity and poses two challenges. The opportunity is that if you change the right conversations, you can change the culture for the better. The challenges you need to think about are that y
if you don't change the conversations, the culture will not change and
y
conversations that do not support the desired changes will make progress doubly hard to achieve.
³Organizational cultures are created by leaders, and one of the most decisive functions of leadership made well be the creation, the management, and ± if and when that may become necessary ± the destruction of culture.´ It is through conversations ± talk, observed actions, listening, writing ± that leaders manage, reinforce and create culture.
Leadership
is a social act and a leader¶s greatest tool for shaping culture is
workplace communication.
IMPROVING THE ORGANIZATION¶S CULTURE A workplace culture can enable or hinder success. with the company¶s mission and strategies. How?
Leaders Culture
can impact the alignment of the culture
is socially constructed and leaders need
to initiate great conversations that tie cultural norms to the organization¶s goals. If the current culture is not in alignment with the new reality, leaders need to be the catalysts, or bridges, who create a new understanding and help individuals select new behaviors and, eventually, beliefs. Leaders
must also define, clarify and reinforce understanding of the actions and beliefs that build
the desired culture. The organizational culture is particularly important when implementing organization-wide change. Many organizations are struggling to keep up ± they layer new initiatives onto the work processes before previous initiatives have taken hold. A culture can either enable or be a barrier to nonstop changes. If the culture is nimble (in the habit of being realigned), change will be more fluid and effective.
Leaders
can play a key role in facilitating change by aligning projects and development efforts
to reinforce the desired culture.
