Organizational Structure of Proctor and Gamble

arrangingal organize of Proctor and take a chanceProcter GambleThe accompany I have chosen for the assignment of managing wobble in organization is Procter Gamble. The company is a Fortune 500 American multinational corporation headquartered in Downtown Cincinnati, Ohio that manufactures a wide range of consumer goods. It is 6th in Fortunes Most value Companies 2010 list. PG is credited with many trading innovations including brand management and the soap opera.History and Background of CompanyIn 1887 PG institutes a pioneering profit-sharing program that gives employees an ownership stake in the Company. This operative innovation helps employees connect their vital roles with the Companys success.In 1924 PG becomes the first company to conduct deliberate, data-based grocery research with consumers. This forward-thinking approach alters us to emend consumer judgment, tarry consumer needs and respond with products that improve their everyday life.In 1994 PG becomes one of the first companies to form ally respond to consumer correspondence by establishing the Consumer Relations department. The addition of toll-free shout numbers in 1973 and e-mail in the 1980s further enhance consumers ability to contact us and keep the consumer at the heart of all we do.In 1995 Crest is co developed with Indiana University. This collaboration delivers a product that is a breakthrough in the use of fluoride to protect against tooth decay, the second-most prevalent disease at the time.In 2002 PG develops Naturella feminine pads specifically to meet the needs of low-income women in Latin America. Based on deep consumer fancying, Naturella responds to consumers desire for freshness with chamomile, a unique sh ar never before used in feminine care products.In 2005 High Frequency Stores common in developing markets emerge as our largest customer channel. Consisting of nearly 20 million stores across the domain, HFS represents a particular opportunity in fast- suppu ration, low-income markets. Through HFS, we connect to consumers with affordable products and packaging specially designed for their needs. investigating Organizational Structure of Procter GambleGeneral definition of Organization anatomical structureOrganizational structure specifies the firms formal reporting relationships, procedures, controls, and authority and decision-making processes. Developing an organizational structure that effectively supports the firms scheme is difficult, especially because of the uncertainty (or unpredictable variation) about cause-effect relationships in the global economys rapidly changing and energetic competitive environments. When a structures elements (e.g., reporting relationships, procedures, and so forth) are properly aligned with one a nonher, that structure facilitates effective slaying of the firms strategies. Thus, organizational structure is a critical component of effective strategy implementation processesTypes of organizational st ructureSimple StructureThe simple structure is a structure in which the owner-manager makes all major decisions and monitors all activities while the ply serves as an extension of the managers supervisory authority.Functional StructureThe functional structure is a structure consisting of a chief executive officer and a limited in bodied staff, with functional line managers in dominant organizational areas, such as production, accounting, marketing, RD, engineering, and human resources.Multidivisional structureThe multidivisional (M-form) structure consists of direct divisions, each representing a classify business or profit center in which the top corporate officer delegates responsibilities for day-to-day trading operations and business-unit strategy to division managers.Procter GambleThe structure of the Procter and Gamble is multidivisional structure. Because the simple structure is used in a small organization where the owner works as a manager and take all the well-favou red decision for the company. Typically, the owner-manager actively works in the business on a daily basis. Informal relationships, few rules, limited task specialization, and unsophisticated information systems tell apart the simple structure. Frequent and informal communications between the owner-manager and employees make it relatively easy to coordinate the work that is to be done. Functional structure is used for the organization which is growing but relatively small organization. This structure allows for functional specialization, thereby facilitating active sharing of knowledge within each functional area. Knowledge sharing facilitates calling paths as well as the professional development of functional specialists. However, a functional orientation can have a negative effect on communication and coordination among those representing contrastive organizational functions. Because of this, the CEO must work hard to verify that the decisions and actions of individual business functions promote the entire firm rather than a single function.Procter gamble is a relatively big organization with a business spread internationally so they are using multidivisional structure. The multidivisional structure of PG consists of operating divisions, each rep-resenting a separate business or profit center in which the top corporate officer delegates responsibilities for day-to-day operations and business-unit strategy to division managers. Each division represents a distinct, self-contained business with its own functional hierarchy. As initially designed, the M-form was thought to have three major benefits (1) it enabled corporate officers to more accurately monitor the performance of each business, which simplified the problem of control (2) it facilitated comparisons between divisions, which improved the resource allocation process and (3) it stimulated managers of poorly perform divisions to look for ways of improving performance. Active monitoring of performan ce through the M-form increases the likelihood that decisions made by managers heading individual units will be in shareholders topper interests.Brands and ProductsBrandsBeauty and GroomingProducts round of the most famous products of beauty and Grooming brands are as underC everyplaceGirlDolce GabbanaPumaGilletteHealth and Well-BeingSome of the most famous products of Health and Well-Being brand are as underVicksOral-BAlways menage CareSome of the most famous products of Household Care brand are as underArielBounceBountyBackground to ChangeIn January 1999, Jager, a PG veteran became the sassy CEO fetching charge at a time when PG was in the midst of a corporate restructuring exercise that started in September 1998.Jager faced the challenging task of revamping PGs operations and marketing practices. Soon after taking over as the CEO, Jager told analysts that he would overhaul product development, testing and launch processes. The biggest obstacle for Jager was PGs culture. Jager realized the need to change the mindset of the PG employees who had been used to lifetime employment and a conservative management style. On July 1, 1999, PG officially launched the Organization 2005 program. It was a program of six-year duration, during which, PG planned to retrench 15,000 employees globally. The equal of this program was estimated to be $1.9 billion and it was expected to generate an annual savings (after tax deductions) of approximately $900 million per annum by 2004.Change in Organization StructureTill 1998, PG had been organized along geographic lines with more than 100 profit centers. Under Organization 2005 program, PG sought to reorganize its organizational structure from four geographically-based business units to five product-based global business units Baby, Feminine Family Care, Beauty Care, Fabric Home Care, Food Beverages, and Health Care.Internal ChangeThe change the PG going to make internally is starting new business unit in the organizational structure. This change probably effects the whole organization. Because it must share the organization sources financial as well as human resources.External changeEnvironment is changing rapidly so the organization also needs to be a dynamic to cater the environment change. PG is the big organization so its new business unit definitely effects the environment and creates a new market.The Mistakes CommittedThe Organization 2005 program faced several problems soon after its launch. Analysts were quick to comment that Jager committed a few mistakes which proved costly for PG. For instance, Jager had made efforts in January 2000 to sustain Warner-Lambert and American Home Products. Contrary to PGs cautious approach towards acquisitions in the 1990s, this dual acquisition would have been the largest ever in PGs history, worth $140 billion.However, the stock market greeted the news of the merger negotiations by selling PGs shares, which prompted Jager to exit the deal.Implementing Strat egies to Revive PGIn June 2000, Alan George Lafley (Lafley), a 23-year PG veteran popularly known as AG, took over as the new President and CEO of PG. The major difference between Lafley and Jager was their style of functioning. Soon after becoming CEO, Lafley rebuilt the management team and made efforts to improve PGs operations and profitability. Lafley transferred more than half of PGs 30 senior most officers, an unprecedented move in PGs history.Building Diversity in the OrganizationAt PG, we believe in taking advantage of all the unique and special differences that our employees possess and leveraging them to the fullest. Since diversity is a business strategy for PG, our efforts are guidanceed on bringing in people from different ethnic and cultural fend forgrounds with remarkably diverse lives and career experiences.Organizations that are in touch are far more capable of understanding consumers from all walks of life. They are far more capable of understanding, appreciating and leveraging their own diversity. They are more capable of tapping the diversity of outside partners.Our recruiting efforts target universities all over Pakistan and are aimed at bringing in people with different leadership and thinking styles. Today, our organization draws from more than 30 schools and universities.We also focus on gender diversity by targeting women at universities for females and holding diversity sessions for female students on campuses. Women offer a different perspective that is crucial to our success. We aim to balance not only organizational diversity but also diversity within the various departments. Women make up about 25 percent of the workforce at PG Pakistan.To stress this goal to our employees, PG Pakistan has introduced many initiatives. To avoid defining our diversity objectives too narrowly and limiting them to percentages and representations of certain groups, PG has made tremendous recruiting efforts and has launched programs such as limber w ork arrangements and the day-care center.Diversity is respected and required across all levels of the company. In fact, diversity action plans are developed in each region of the world to give local diversity strategies the best chance of success.Change Management Model Dealing With Change1. DenialThe first response to a significant change is frequently shock, a general refusal to recognise the information. In this way we protect ourselves from being overwhelmed. Common responses includeDenying This cant be happening.Ignoring Wait boulder clay it blows over.Minimizing It just needs a few minor adjustments.It is possible to continue working in the denial phase, but sooner or later the shock absorber hits home and a personal response is required.Management Approach OF PGBe up front with information to individuals and groups of staff. Let them know that change is going to occur. be intimate their fears of change as legitimate. Explain what to expect and suggest actions they can tak e to adjust to the change. Give them time to let things sink in, and then have a planning session to slop things through.2. ResistanceIn this phase things often seem to get worse. Personal distress levels rise. It is common to spend time smell for someone or something to blame, or to spend time complaining about the new set-up. Resistance is about fear of change. People may become physically ill, feel all sorts of physical, emotional, and/or mental symptoms. Some people may doubt their ability to survive the change. During this phase there is a greater focus on mourning the past, more than preparing for the future. Many people want to avoid the situation or pretend it is not happening, sometimes by moving back into denial. The self-acknowledgement of feelings being experienced, will ready people to move more quickly to the next phase.Management Approach of PGListen, acknowledge feelings, respond empathetically, encourage support. Dont try to talk people out of their feelings, or t ell them to change or pull together. If you accept their response, they will continue to feel they are able to tell you how they are feeling. This will help you respond to some of their concerns. Use questions to stimulate broader thinking and perspective setting.3. ExplorationAfter a period of struggle, individuals and organizations usually emerge from their negativity, blow over a sigh of relief, and shift into a more positive, hopeful, future-focused phase. People realize they are going to make it through OK. It can be as astute as just feeling better, or as obvious as sleeping through the night for the first time since the change started. The timing is different for each person.New directions do not emerge all at once. Rather, what emerges first is the energy to put a search into action. People begin to recognize and explore new ways, to start clarifying goals, assessing resources, exploring alternatives, and experimenting with new possibilities. A motivation to swing into ac tion occurs without trying first to find the right way. It is important to baulk completing the exploration phase too soon by accepting something less than what the person is capable of. This is a period of high energy, with creativity at its peak.Management Approach of PGFocus on priorities and provide any needed training. Follow-up on projects underway. Set short-term goals. Conduct brainstorming, visioning and planning sessions. Foster all learning opportunities to help overcome fear of change.4. CommitmentFinally, the individual has broken through the problems, discovered new ways of doing things and/or adapted to the new situation. The lading phase begins with focus on a new course of action. This could be new ways of doing the job, or finding a new job. The successful commission to a new course of action shows there has been learning growth and adaptation on the part of the individual.Management Approach of PGSet long-term goals. slenderize on teambuilding. Create a missio n statement. Validate and reward those responding to the change. Look ahead.Strategies pursuing by the Procter and Gambledodge 1Delight the consumer with sustainable innovations that improve the environmental profile of our products.Strategy 2Improve the environmental profile of PGs own operations.Strategy 3Improve childrens lives through PGs social responsibility programs.Strategy 4Engage and equip all PG employees to build sustainability thinking and practices into their everyday work.Strategy 5Shape the future by working transparently with our stakeholders to enable continued freedom to innovate in a responsible way.Resistance and its Handling y PGStrong resistance to change is often rooted in deeply conditioned or historically reinforced feelings. Patience and tolerance are required to help people in these situations to see things differently. Bit by bit. There are examples of this sort of gradual staged change everywhere in the living world.PG the Psychological Contract is a si gnificant aspect of change, and offers stabilising models and diagrams in understanding and managing change potentially at a very fundamental level.Also, certain types of people the reliable/dependable/steady/habitual/process-oriented types often find change very unsettling.People who welcome change are not generally the best at being able to work reliably, dependably and follow processes. The reliability/dependability capabilities are directly opposite character traits to mobility/adaptability capabilities.Certain industries and disciplines have a high concentration of staff who need a strong reliability/dependability personality profile, for example, health services and nursing, administration, public sector and government departments, utilities and services these sectors will tend to have many staff with character profiles who find change difficult.Age is another factor. Erik Eriksons fascinating Psychosocial Theory is helpful for understanding that peoples priorities and mot ivations are different depending on their stage of life.The more you understand peoples needs, the better you will be able to manage change.Be mindful of peoples strengths and weaknesses. Not everyone welcomes change. Take the time to understand the people you are dealing with, and how and wherefore they feel like they do, before you take action.