Topics: Management, Strategic management, Organizational structure Pages: 5 (1326 words) Published: May 13, 2013
Managerial Functions: Planning, Organizing, Leading, And Controlling

Case Study: Procter & Gamble


Procter & Gamble (P&G) is America’s leading manufacturer of household products (Degen, 2012). It was instituted by William Procter, an Irish candle manufacturer, who launched Procter & Gamble’s operations in 1837 in Cincinnati, Ohio. The general emphasis of the firm is innovation in product development. It is the first manufacture to conduct direct sales in 1919 and is currently the largest product advertisers. It has over 250 brands of products in the world market. The firm’s core values include leadership, people, ownership, integrity, trust, and passion for winning. Procter & Gamble has 24 products with more than $ 1 billion dollars in net sales. The purpose of this paper is to define and describe managerial functions and provides a brief summary of the activities in reference to the four managerial functions at Procter & Gamble.

Planning Function

Strategic planning is the process by which organizations make plans and decisions that are focused on the long-range performance (Lewis, Goodman, Fanot & Mitchlitsch, 2007). Organizations perform this function through the use of a comprehensive strategic plan which is basically the general direction of the organization. Strategic planning is management process that is done in four phases strategic analysis, strategic formulation, implementation of strategy, and evaluation and control. These phases are linked so that there are avenues for feedback between any two phases. Strategic analysis involves the assessment of the organization’s mission in relation to both the internal and external environments (SWOT analysis). Strategic formulation is the design of strategy and tactics; implementation is the daily routine operations while evaluation and control is the assessment of the routine operations to ensure that they are in line with the mission of the organization.

Fast development at P&G is enhanced through strategies that promote vitality in business and increases the pace of innovations. The company developed global business units whose purpose is to focus on utilization of technology to develop plans and products. Each new business unit within the global business units are tasked with developing new product brands in specific categories. The company has clearly defined strategies with predetermined room for development in each strategy focus area. Strategy strength and structure leads to opportunity and capacity to expand.

Organizing Function

Organizing is the process of establishing what tasks need to be done, persons responsible for each task and the process of management and coordination of the tasks (Lewis, Goodman, Fanot & Mitchlitsch, 2007). Organizing links organizational mission and goals and objectives through the development of the foundation (tasks and work relationships) and organizational design (focus of decision making, organization of members and integration system). The work relationships that exist between the various components of organizational function determined how activities are coordinated and accomplished. The relationships are defined by the chain of command, span of control, line and employee roles, and delegation.

Organizational design is an important aspect of the organizing function. Organizational design is a plan for the arrangement and coordination of activities for the purpose of realizing its mission through achievement of goals and objectives. General design of an organization is determined by three dimensions: organizational structure, integrating mechanism and locus of decision making. Functional structure, divisional structure, matrix structure and network structure are the four forms of structure. P&G’s Organizational Structure

Procter & Gamble is international company with presence in several countries the overall management is led by the Chief Executive Officer with regional president...
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