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Topics: Organizational structure, Management, Organization Pages: 3 (626 words) Published: November 20, 2013


Phan Nguyễn Thùy Trang
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Individual assignment

Organization chart

P&G organization chart:

Type of organization:
P&G is a formal organization. This is a type utilitarian organization, which maintains control through bartering. People join utilitarian organizations because they have something to gain. The culture is one of productivity and purpose. Members are compensated for their contributions. People have individual responsibility and receive wages for their contributions.

P&G apply the matrix that is a combination of the functional and divisional structures. The former divides departments within a company by the functions performed, while the latter divides them by products, customers or geographical location (Matrix Organizational Structures in Business Organizations, n.d). P&G is a global multi-national company, so by using matrix organization structure will bring many advantages but also several drawbacks.

Positive and negative consequences to individual and organization:
To organization:
One of the advantages of implementing the matrix organizational structure is that business can efficiently exchange of information. Efficient lines of communication enhance productivity and allow for quick decision-making by dividing operation in term of regions. The specialized information exchange allows managers in each region to respond quickly to the needs of customers and the organization.

The matrix structure encourages a democratic leadership style. This style incorporates the input of team members before managers make decisions. The ability to contribute valuable information before decisions are made leads to employee satisfaction and increased motivation. In P&G, each employee brings his expertise in each market to the table. Managers are involved in the day-to-day operations which allow them to make decisions through the viewpoint of employees.

The drawback in P&G case is that the CEO dose not directly work with...

References: Rose J. (n.d.). Advantages & Disadvantages of Matrix Organizational Structures in Business Organizations. Receive from: http://smallbusiness.chron.com/advantages-disadvantages-
matrix-organizational-structures-business-organizations-26350.html
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