What type of organization is procter and gamble

The best structure for a firm was seen to depend on contingency factors such as strategy, technology, size and environment Bartol et al. Miller ; , cited in Bartol et al. A matrix structure fits with an innovative differentiation strategy.

Woodward ; , cited in Bartol et al. As organisations grow, departments and levels need to be added, and structures grow more complex. As organisations grow, decentralizations increases.

This is probably due to the rules and regulation guiding lower level decision making Robbins , cited in Bartol et al. Burns and Stalker , cited in Bartol et al. They found different structural characteristics, depending on whether the environment was stable with little change or unstable with rapid change and uncertainty.

They are also customer oriented and concerned with tailoring their products to meet target market needs. They are defined as follows: 1. The operating core—employees, who perform the basic work related to the production of products and services.

The strategic apex—top-level managers,who are charged with the overall responsibility for the organisation. The middle line—managers, who connect the operating core to the strategic apex. The technostructure—analysts, who have the responsibility for effecting certain Zhangbin 10 forms of standardization in the organisation. The support staff—people who fill the staff units that provide indirect support services for the organisation. Any one of these five parts can dominate an organisation and where each dominates, a different organisational form emerges.

Moreover, a given structural configuration is likely to be used depending on which part is in control. As a result, there are five distinct design configurations and each one is associated with the domination by one of the five basic parts.

The machine bureaucracy has highly routine operating tasks, formalised rules and regulations, tasks that are grouped into functional departments, centralized authority and a decision making that follows the chain of command. And the divisional structure is a set of autonomous self-contained units, each typically configured as a machine bureaucracy.

The dominant part of the divisional structure lies with middle management. They report to, and are administered by, a central headquarters. Stephen P. This structural foundation boosts brand competitiveness. For example, each geographical division adjusts strategies to suit business needs specific to regional or domestic consumer goods markets. The success and growth of the company are partly based on the appropriateness of its organizational structure.

The company is effective in enhancing its products and developing new ones. Thus, a recommendation is to improve this organizational structure to increase the rate of product innovation. We use cookies for website functionality and to combat advertising fraud. See our Privacy Policy page to find out more about cookies or to switch them off.

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