Investigating the organizational structure at Proctor and Gamble and its role in company performance
Mariam Peyton is a professional Financial Analyst. She holds a Masters degree in Economics. She specialises in financial analysis and forecasting. Her expertise includes studying the financial performance of companies, markets and entire industries looking for trends, insights and information that can help you glean rich insights for use in academic and market research.
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In the contemporary world, organizational structure and its importance in attaining successful results or performance by employees are increasingly being recognized. The purpose of the study was to explore the organizational structure of Proctor and Gamble. What does this essay mean by organizational structure? Organizational structure refers to the various ways through which an organization's activities are organized and conducted. It has become very complex and varied in organizations as it determines their overall functioning and productivity. It is reviewed through the attitude that employees have towards work, their motivation, and overall performance.
What is the role of organizational structure on performance? Organizational structures play an important role in businesses because it enables businesses to make and implement efficient decision-making processes which help in attaining their set goals and objectives. By allocating particular roles or duties to subordinates, businesses are bound to make better decisions faster. These structures also make it easy for an organization to monitor and record its human resources.
What organizational structure does Procter and Gamble use? P&G’s organizational structure is a product-type divisional structure also referred to as a divisional structure. Here, the company assigns different divisions which are responsible for determining the decision-making, strategy, and management of an organization. A divisional organizational structure is usually used in companies whose operations extend to wider geographic areas or organizations which have distinct smaller organizations within a larger group to cover several products and market areas. In this structure, various teams work alongside each other in order to attain a specific goal. The structure at P&G has played an important part in its ability to grow and develop globally. The company has six geographic divisions that help in the management of its operations worldwide.
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Investigating the organizational structure at Proctor and Gamble and its Role in company performance Case Study
Key Learning Outcomes
By the end of the case, students should be able to:
- Understand the general meaning of organizational structure and its various significances to an organization
- Understand the organizational structure at Proctor and Gamble and how it has impacted the efficiency and productivity of the company
- Learn how to apply organizational structure to real-life organizations
1.0 INTRODUCTION
The Procter & Gamble Co (P&G) is a producer and dealer in fast-moving consumer goods incorporated in Ohio in 1905. It is dedicated to offering higher value and quality branded products in order to improve the lives of its global consumers, now and for future generations (Annual Report, 2022). The company’s products include conditioners, air fresheners, shampoo, toothpaste, toothbrushes, detergents, male and female blades and razors, surface cleaners, and dish-washing liquids. The primary purpose of undertaking this research is to find out the organizational structure at Proctor and Gamble and its role in company performance.
Organizational structure refers to the various ways through which an organization's activities are organized and conducted. What are the 4 types of organizational structures? There are four types of organizational structure namely matrix, functional, divisional, and flatarchy. Understanding these structures and how each work helps an organization in making informed decisions at the workplace. A matrix structure is one where employees are divided into teams that report to both the product and functional manager, here the employee works under two bosses. Basically, it is a combination of both functional and divisional organizational structures. A functional structure is one where a company is divided into various departments such as finance, marketing, human resource, sales, and production among others. A flatarchy structure is one where there is little or no level of management, it is a combination of the hierarchy and flat organizational structures and it is common with start-ups and small organizations. Divisional structure is where various teams work alongside each other in order to attain a specific goal.
What organizational structure does Procter and Gamble use? P&G’s organizational structure is a product-type divisional structure also referred to as a divisional structure. Here, the company assigns different divisions and they are responsible for determining decision-making, strategy, and management of an organization. A divisional organizational structure is usually used in companies whose operations extend to wider geographic areas or organizations which have distinct smaller organizations within a larger group to cover several products and market areas. In this structure, various teams work alongside each other in order to attain a specific goal. The structure at P&G’ has played an important part in its ability to grow and develop globally. The company has six geographic divisions that help it the management its operations worldwide.
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