organizational structure & design

S.Chandramouli – MBA Dept

Identifiable group of people contributing their efforts towards the attainment of goals.

A Group of people united by a common purpose

S.Chandramouli - MBA Dept.

Consideration of objectives Division of work and

specialization Definition of jobs Separation of line and staff

functions Chain of command Parity of authority &

responsibility Unity of command span of supervision Balance of various factors Communication Flexibility continuity S.Chandramouli - MBA Dept.

Organization based on Functions

• Economic• Political• Integrative• Pattern maintenance

Organization based on services

• Mutual benefit• Business organization

• Service organization

Organization based on Authority & Responsibility

Formal Informal

S.Chandramouli - MBA Dept.

V P M arke tin g V P F in an ce

C ou n try A C ou n try B

P rod u c t 1 P rod u c t 2 P rod u c t 3

V P O p era tion s V P R & D V P L eg a l is su es

C E O

S.Chandramouli - MBA Dept.

Authority & responsibility relationships between various positions in the

organization by showing who reports to whom.

1. Clear-cut authority relationships2. Pattern of communication3. Location of decision centres4. Proper balancing5. Stimulation creativity6. Encouraging growth

S.Chandramouli - MBA Dept.

S.Chandramouli - MBA Dept.

Diagrammatic presentation of the Organizational structure is what is

known as organizational chartChart that describes administrative

and functional structures of an organization

S.Chandramouli - MBA Dept.

S.Chandramouli - MBA Dept.

Hierarchical

S.Chandramouli - MBA Dept.

FUNCTIONAL ORGANIZATION

S.Chandramouli - MBA Dept.

S.Chandramouli - MBA Dept.

A d m in /F in an ce

V P fo r th e A m ericas V P E u rop e V P E . A s ia

M arke tin g O p era tion s

A u s tra lia /N Z In d on es ia Is lan d s

V P A u s tra las ia

C E O

D IV IS IO N A L S TR U C TU R E (B Y P R O D U C T L IN E S )

F R A G R A N C E S S K IN C A R E P R O D U C TS H A IR C A R E P R O D U C TS O TH E R P R O D U C TS

C O S M E TIC S C O R P O R A TIO N

M an ag em en t

fin an c in g

p arts

sp orts u tilit ies

lig h t tru cks

au tos

S tra teg ic B u s in ess u n its N . A m erica L atin A m erica E u rop e A s ia

E xecu tive C om m ittee

C h a irm an o f th e B oard

Chair and CEO Vice Chair and COO

General Secretary

Exec VP, Finance

Exec VP, Fresh Dairy

Exec VP, Water

Exec VP, Biscuits and

Cereal Snacks

Exec VP, Asia-Pacific

Exec VP, Intl Strategy