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Organizational Structure of GlaxoSmithKline

Mariam Peyton
Latest posts by Mariam Peyton (see all)

    This essay examined the organizational structure of GSK, It answered questions like; What is GSK's organizational structure? A company’s structure and modification is basically a result of how they want to deliver their products or service to the people or consumers. The company is structured by the products it manufactures and the services it provides. GlaxoSmithKline is a pharmaceutical and healthcare company that engages in the manufacture and distribution of medicines and vaccines. The company has over 69,400 employees and it has operations in over 80 countries worldwide. 
    Organizational structure is an important aspect of any organization as it defines its structure, employee engagement, satisfaction and the activities to be taken on by different individuals. Important to note is that most individuals are most likely to settle in organizations that suit their personalities. Organizational structures are essential for businesses of all types and sizes. They outline the roles, and responsibilities of the people within an organization. Additionally, they also facilitate communication, coordination, and collaboration among different units and levels of the organization. Organizational structures can vary depending on the goals, strategies, and culture of each business. However, they all share the common purpose of creating a clear and effective hierarchy inside an organization.
    Organizational structure plays a significant part in the performance of a company. The structure of an organization is a crucial factor that affects its performance and outcomes. While the organizational structure is often associated with the hierarchy and the chain of command that aids in the organization of complex networks of people and resources, the systemization of jobs and roles, it's more than just this. An effective organizational structure is about creating a framework that aligns human resources with business priorities, and strategies, creating a culture that enables people in organizations to understand how things are done or handled as well as distributing and rationing power in a way that empowers people to make certain decisions and control other people’s behavior.
    Founded in 1715, GlaxoSmithKline is a healthcare company operating in the manufacture, research, and development of vaccines, pharmaceutical medicines, and consumer healthcare products. GSK carries out its operations in segments namely; pharmaceuticals, vaccines, consumer Healthcare, and Corporate Executive Team.

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    Organizational Structure of GlaxoSmithKline Case Study


    Key Learning Outcomes

    By the end of the case, students should be able to:

    • Understand and explain the main features of GlaxoSmithKline’s organizational structure
    • Understand how GlaxoSmithKline's organizational structure affects its performance and responsiveness to the external environment.
    • Apply relevant theories and concepts of organizational structure to real-life organizations.

     

    1.0 INTRODUCTION


    GlaxoSmithKline (GSK) is a global pharmaceutical company that operates in three main business segments: Pharmaceuticals, Vaccines, and Consumer Healthcare. The company has a purpose to unite science, technology, and talent to get ahead of disease together. It prioritizes innovation in vaccines and specialty medicines to prevent and treat disease. GSK has a primary listing on the London Stock Exchange and a secondary listing on the New York Stock Exchange. It operates in more than 80 countries. GSK has four R&D centers and 37 manufacturing sites.

    In 2022, the company invested £5.5 billion in R&D and has 69 vaccines and medicines in development. GSK is the leader in the Access to Medicine Index and the second in the S&P Global Corporate Sustainability Assessment. GSK's portfolio includes 20+ vaccines, respiratory, HIV, immuno-inflammation, and oncology medicines, and consumer healthcare products. GSK's mission is to help people do more, feel better, and live longer.

    The Organizational Structure of GSK is a matrix one, which means that it combines functional and divisional structures to achieve both efficiency and flexibility. The functional structure is based on the main functions of the company, such as research and development, manufacturing, marketing, and sales. The divisional structure is based on the geographic regions where the company operates, such as Europe, the Americas, Asia-Pacific, and Emerging Markets. Each business segment has its own president who reports to the CEO, and each region has its own president who reports to the chief operating officer.

    The matrix structure allows GSK to leverage its global scale and expertise, while also adapting to local market needs and opportunities.

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