ORGANISATIONAL STRUCTURE
An organizational structure is a mainly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim. Organizations are a variant of clustered of clustered entities. entities. An organization can be structured in clarification ion needed ] many different ways and styles, depending on their o bjectives and ambience.[clarificat The structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch the branch,, department department,, workgroup and individual individual.. There are different type of organizational structure:• • • • • • • •
Departmentation by simple number Departmentation by time Departmentation by enterprise function Departmentation by territory and geography Customer departmentation Process and equipment departmentation Departmentation by product line Matrix organisation
PRODUCT LINE ORGANISATIONAL STRUCTURE
Grouping of activities on the basis of products p roducts or product line is known as PRODUCT LINE ORGANISATIONAL STRUCTURE The structure permits top management to delegate to a divison executives extensive authority over the manufacturing, sales services, and e ngineering functions that relates to a given product or product line
ADVANTAGES:-
DISADVANTAGES:UTILISATION Procter and gamble:•
Corporate Structure Four pillars—Global Business Units, Market Development Organizations, Global Business Services and Corporate Functions—form the heart of P&G’s organizational structure.
pg.com / global careers / corporate info / corporate structure / how the structure works
September 23, 2010
Four Pillars How the Structure Works
The best way to understand how the synergy of our four pillars works to provide a solid structure is by example. We will use the example of Pantene®, one of our international, billion-dollar brands. The example uses a rollout in the U.S. and Latin America to explain how our organizations work separately and together.
Think of a P&G product in your area of the world and see if you can discover how the same or a similar product might have been introduced into the marketplace. Are there any differences? What do you think the involvement of
Click on each pillar below for more information.
Pantene GBU Global Business Units define the equity, or what a brand stands for. Pantene gives you healthy, shiny hair. A Pantene Team within the Beauty Care GBU builds on the equity via:
• Product initiatives or upgrades, ideally launched simultaneously worldwide • A marketing campaign communicating the same fundamental benefits worldwide • Manufacturing product in accordance with global formula and package specifications Close Pantene MDO Market Development Organizations ensure Pantene excels in their region. Overall brand equity is the same, but there are very different executions by region. For example:
• The U.S. might partner with the GBU to develop large-size packaging for club stores to maximize value for their shoppers • Latin America might focus on developing the smallest possible package, like a sachet, as consumers in that region want to minimize their immediate out-of-pocket costs Close Pantene GBS
the four pillar organizations might have been in getting this product to market?
Global Business Services provides support. The GBS Center in Costa Rica serves both the U.S. and Latin America MDO in this example. Services include:
• Accounting • Employee benefits and payroll • Order management and product logistics • Systems operations Close Corporate Functions Corporate Functions support areas are determined by those working directly on business teams. CF interacts as a consulting group, ready to provide service if called upon. Services focus on ensuring each function they are capitalizing on uses the latest thinking or methodologies for each discipline. Close
pg.com / global careers / corporate info / corporate structure / four pillars
Four pillars — Global Business Units, Market Development Organizations, Global Business Services and Corporate Functions — form the heart of P&G's
September 23, 2010
organizational structure. •
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Global Business Units (GBU) build major global brands with robust business strategies. Market Development Organizations (MDO) build local understanding as a foundation for marketing campaigns. Global Business Services (GBS) provide business technology and services that drive business success. Corporate Functions (CF) work to maintain our place as a leader of our industries.
P&G approaches business knowing that we need to Think Globally (GBU) and Act Locally (MDO). This approach is supported by our commitment to operate efficiently (GBS) and our constant striving to be the best at what we do (CF). This streamlined structure allows us to get to market faster. Click on the pillars below for more information:
Global Business Units (GBU) Philosophy: Think Globally General Role: Create strong brand equities, robust strategies and ongoing innovation in products and marketing to build major global brands Our GBU:
• Baby & Family Care • Beauty & Feminine Care • Fabric & Home Care • Snacks & Beverages • Health Care Close Market Development Organizations (MDO) Philosophy: Act Locally General Role: Interface with customers to ensure that marketing plans fully capitalize on local understanding, to seek synergy across programs to leverage corporate scale, and to develop strong programs that change the game in our favor at point-of-purchase Our MDO Regions: • North America • Asia/India/Australia • Northeast Asia • Greater China • Central-Eastern Europe/Middle East/Africa • Western Europe • Latin America Close Global Business Services (GBS) Philosophy: Enabling P&G to win with Customers and Consumers General Role: Provide services and solutions that enable the company to operate efficiently around the world, collaborate effectively with business partners, and help employees become more productive Our GBS Centers: • GBS Americas located in Costa Rica • GBS Asia located in Manila • GBS Europe, Middle East and Africa/Newcastle, England Close Corporate Functions (CF) Philosophy: Be the Smartest and the Best General Role: Ensure that the functional capability integrated into the rest of the company remains on the cutting edge of the industry. We want to be the thought
leader within each CF. Our Corporate Functions: • Customer Business Development • External Relations • Finance & Accounting • Human Resources • Information Technology • Legal • Marketing • Consumer & Market Knowledge • Product Supply • Research & Development • Workplace Services Close
About company:-
Procter & Gamble is a global company that provides consumer products in the areas of pharmaceuticals, cleaning supplies, personal care, and pet supplies. Since 1837, P&G has built a rich heritage of touching consumers’ lives with brands that make life a little better every day. In India Proctor & Gamble has two subsidiaries: P&G Hygiene and Health Care ltd. Procter & Gamble Co.. (P&G) is an American company based in Cincinnati, Ohio that manufactures a wide range of consumer goods.
