Organizational Structure Paper

Topics: Organizational structure, Organization, Procter & Gamble Pages: 5 (1114 words) Published: March 2, 2015


Organizational Structure Paper

Carly Fader

XMGT/ 230

University of Phoenix

Today, most companies have an organizational structure, which gives a lot of character to the company and allows the consumers to see what the company values. Certain companies may have an organizational structure such as a divisional structure which is basically where functionalities of that company are divided based on the “functional” areas. However, there is also a matrix structure. A matrix structure consists of placing employees in an area based on the functional and divisional area.

The company that I decided to go with is Procter & Gamble—based on my findings about the company, it appears as though Procter & Gamble has somewhat of a matrix type of structure. The company has held a high platform for creating a global market for their products in several countries world-wide. I believe that in order for Procter & Gamble to have been built globally, they had to re-arrange their business strategy and to maximize their potential. The structure that Procter and & Gamble adopted is called global-matrix structure. This type of structure requires a team of people to work not only together but to bond, that way the structure has a transitional function. My understanding of Procter and Gamble is that they take pride on the global scale of their organization. Operating with high standards and integrity is what keeps Procter & Gamble (P & P) local. The way their organization is hierarchized is at Market Development Organizations>Beauty & Grooming> Household Care> Global Business (Shared Services)> Corporate functions. Global Business focuses on consumer, brands, and many of the competitors around the globe. The market development is charged with knowing consumer and retailers in each market. Each function of the organization works off of one another to move the improvements of the company forward for a winning advantage. Also, P&P is focuses on utilizing new innovations in order to better their market.

One company that has a functional type of structure is Johnson & Johnson. Johnson & Johnson has three types of business segments. These segments consist of Consumer Healthcare, Medical Devices & Diagnostics, and Pharmaceuticals. Johnson & Johnson based their structure off of the categories that their company has to offer. For example, consumer healthcare has several businesses under one franchise. Consumer healthcare has baby care, skin & hair care, wound care and topical, women’s health, etc. In other words, this functional avenue of a structure enables the organization and their departments to specialize in a particular area. Whether a company is big or small, a company can have this type of structure. A functional organization has an advantage when it comes to people being grouped based on skills, adaptation of an environment, training, and overall the technicality of understanding the product.

Any organization has functions like marketing, finance, human resources and operations that influence and determine the organizational structure. In a divisional organization, it is run by marketing and finance department in which separate divisions work on their own operations to accomplish the goals for the overall business. These influences provide a proper chain of command on how the organization should be structured. What I have found is that Johnson & Johnson has group of people who coordinate the compliance related risk for certain functions.

Based on the understanding of organizational design including geographic, functional, customer based product, service, hybrid, matrix, marketing channels, and departmentalization, the geographic structure is based on the market or region for that functional group. Geographical focuses on all functions of an area and allows a department to suit local markets and tailor to their marketing. Focusing on trends is a huge aspect for an organization which definitely...

References: Our Management Approach. (n.d.). Retrieved February 23, 2015, from http://www.jnj.com/about-jnj/management-approach
http://www.jnj.com/sites/default/files/pdf/JnJ_RiskMgmt_ERMFramework_guide_v16a.pdf
Our Management Approach. (n.d.). Retrieved February 23, 2015, from http://www.jnj.com/about-jnj/management-approach
The Strategic Development of Procter and Gamble into a Global Giant. (2012, April 29). Retrieved February 23, 2015, from http://wearedevelopment.net/2012/04/29/the-strategic-development-of-proctor-and-gamble-into-a-global-giant/
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