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INTRODUCTION
Organizational structure refers to the way that an organization arranges people and jobs so that its work can be performed and its goals can be met. When a work group is very small and face-to-face communication is frequent, formal structure may be unnecessary, but in a larger organization decisions have to be made about the delegation of various tasks. Thus, procedures are established that assign responsibilities for various functions. It is these decisions that determine the organizational structure. In an organization of any size or complexity, employees responsibilities typically are defined by what they do, who they report to, and for managers, who reports to them. Over time these definitions are assigned to positions in the organization rather than to specific individuals. The relationships among these positions are illustrated graphically in an organizational chart. The best organizational structure for any organization depends on many factors including the work it does; its size in terms of employees, revenue, and the geographic dispersion of its facilities; and the range of its businesses (the degree to which it is diversified across markets). There are multiple structural variations that organizations can take on, but there are a few basic principles that apply and a small number of common patterns. The following sections explain these patterns and provide the historical context from which some of them arose. The first section addresses organizational structure in the twentieth century. The second section provides additional details of traditional, vertically-arranged organizational structures. This is followed by descriptions of several alternate organizational structures including those arranged by product, function, and geographical or product markets. Next is a discussion of combination structures, or matrix organizations. The discussion concludes by addressing emerging and potential future organizational structures. It refers to the framework within which managerial and operating tasks are performed .it specifies the relationship between people, work and resources .The type of organisational structure that is appropriate for an organisation will depend upon many issues. Some issues are fairly obvious. For example, small and medium-sized businesses will have smaller and less complicated organisational structures than very large companies such as Unilever or Procter and Gamble. The number of different country markets and the current size of the company market share in different market swill influence the need for the number and type of people to be employed internationally.
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Centralisation vs DecentralisationCentralistion-Companies centralize or keep key activities with themselves in order to control and coordinate Decentralization provide more auotonomy at local country level the company will need to take account of specialisation across the dimensions of function, product and geography Function is concerned with occupational specialisation. Product is concerned with the co-ordination, integration and control of activities based on the product Geography is concerned with matching the company with its external environment.

1.1 OBJECTIVE 1. To study organisational structure 2. To study the organisational structure of nestle 3. To study the types of organisational structure 1.2 RESEARCH METHDOLOGY This research has been based entirely on secondary data sources which were subject related the source used were books, journals, newspapers and website.

1.3 Factors Affecting Choice of Organisational Structure We have already touched on several factors that will affect the choice of the most appropriate type of organisational structure for international business. In summary the following represent the major factors:

Company size.

Extent of international market spread.

Range and diversity of products/services.

Level and nature of involvement in international business.

Overall corporate and marketing objectives.

Company capabilities and resources.

Organisational culture.

Many of these are self-explanatory but the final two on our list of factors affecting organisational structure, namely organisational culture and company capabilities and resources, need exploring further

1.4 The Importance of a Good Organizational Structure Communication The flow of information is essential to an organizations success. The organization structure should be designed to ensure that individuals and departments that need to coordinate their efforts have lines of communication that are built into the structure. The financial planning and analysis department might report to the Chief Financial Officer and the Senior Vice President of Marketing, because both of these members of the top management team depend on information and reports provided by financial planning. Reporting Relationships Reporting relationships must be clear so all members of the organization understand what their responsibilities are and know to whom they are accountable. These clear relationships make it easier for managers to supervise those in lower organization levels. Each employee benefits by knowing whom they can turn to for direction or help. In addition, managers are aware of who is outside the scope of their authority, so they do not overstep their bounds and interfere with another managers responsibilities. Growth And Expansion Companies that grow rapidly are those that make the best use of their resources, including management talent. A sound organization structure ensures that the company has the right people in the right positions. The structure may suggest weak spots or deficiencies in the companys current management team. As the company grows, the
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organization structure must evolve with it. Many times more layers of management are created, when one department head has too many individuals reporting to him at one time to give each employee the attention and direction needed for the employee to succeed. Task Completion A well-designed organization structure facilitates the completion of projects. Project managers can better identify the human resources available to them if the scope of each departments responsibility -- and each team members capabilities--are clear. A project to develop a new product would require market research. The project manager needs to know who in the organization can provide this research, and whose permission must be obtained for the research to be done. Fits Companys Needs Companies in different industries require different mixes of talent and a relatively greater emphasis on certain management functions. A software company often has a large development staff. Structuring the reporting relationships within the development team so creativity and productivity are maximized, and deadlines are met, is vital to that type of companys success. Companies often have to go through a reorganization phase in which individual positions or even whole departments are repositioned on the organization chart in an effort to better utilize the companys human resources and make the operation run more smoothly. 1.5 Different Types of Organisational Structures.

Traditional Structures These structures are based on functional division and departments. They are the kind of structures that follow the organization's rules and procedures to the T. They are characterized by having precise authority lines for all levels in the management. The various types of structures that fall under traditional structures are:

Line Structure: This is the kind of structure that has a specific line of command. The approvals and orders in this kind of structure come from top to bottom in a line. Hence it is known as a line structure. This kind of structure is suitable for smaller organizations like small accounting firms and law offices. This structure allows easy decision-making and is informal in nature. Merits It is the simplest kind of organizational structure. Strict authority results in a stronger discipline. Prompt decisions result in quick and effective actions. There is clarity in the structures of authority and responsibility.

As the control rests with one superior, it accords him the flexibility to adjust the department. There are good career advancement prospects for individuals who deliver quality work. Demerits There are chances of the department head being biased. Lack of specialization is a persistent problem. The department head may be burdened with lots of work. Communication only happens from top to bottom. Superiors with authority can misuse it for their benefit. Decisions are taken by a single person and can go wrong.

Line and Staff Structure: Though a line structure is suitable for most organizations, especially the small ones, it is not effective for larger companies. This is where the line and staff organizational structure comes into play. Line and staff structure combines the line structure where information and approvals come from top to bottom, with staff departments for support and specialization. Line and staff organizational structures are more centralized. Managers of line and staff have authority over their subordinates, but staff managers have no authority over line managers and their subordinates. The decision-making process becomes
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slower in this type of organizational structure because of several layers and guidelines. Also, there is formality involved.

Merits It enables the employees to perform at a faster rate. It helps employees to accept responsible jobs and specialize in a particular area. It helps line managers to concentrate on the task at hand. Little or no resistance is met when organizational changes take place. It results in less operational wastage and increases productivity. Employees feel that they are given the due credit for their contribution. Demerits Confusion may be created among employees. Employees lack operational knowledge to give result-oriented suggestions. There are too many levels of hierarchy. Employees may have differences of opinions and this may slow down the work. As staff specialists exist, it is costlier than a simple line organization. Decision-making may be time-consuming. Functional Structure: This kind of organizational structure classifies people according to the function they perform in their professional life or according to the functions performed by them in the organization. The organization chart for a functional organization consists of a Vice President, a Sales Department, a Customer Service Department, an Engineering or Production Department, an Accounting Department, an Administration Department, etc. Merits It has high degrees of specialization. It has clear lines of authority. It facilitates easy accountability for the work.
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 It accords a high level of speed and efficiency. The need for duplication of work is eliminated. All the functions command equal importance. Demerits Communication has several barriers which makes coordination difficult. More focus is laid on individuals rather than the organization. The decisions taken by a single person may not always work in favor of the organization. As the organization expands, it gets difficult to exercise control on its operations. There may be lack of teamwork between different departments or units. As all the functions are separated, employees may not gain knowledge about other specializations. Divisional Structure: These are the kinds of structures that are based on different divisions in the organization. They group together employees based on the products, markets and geographical locations covered. Here is a detailed description of a divisional structure. Product Structure: A product structure is based on organizing employees and work on the basis of the different products. If the company produces three different products, they will have three different divisions for these products. This type of structure can be best utilized for retail stores with a number of products. Merits Units which are not working can be closed down easily. Each unit can be operated and treated as a separate profit center. It accords rapid and easy decision-making. It also gives a lot of independence to the decision makers. Individual products get separate attention as per the problems they face. It enables the organization to have a high productivity and efficiency quotient.

Demerits As each unit operates on its own, organizational goals may not be achieved. Unhealthy competition may exist among internal business units. As it has too many managerial levels, it may hamper the business. Accounting work and taxes may increase considerably. All the units may not be considered as equal. Marketing individual products may add up to the cost significantly. Market Structure: Market structure is used to group employees on the basis of the specific market the company sells in. A company could have five different markets they use and according to this structure, each would be a separate division. Merits Employees can communicate with customers in the local language. They are available for the customers, if need is felt. The problems in a particular market can be isolated and dealt with separately. As individuals are responsible for a particular market, tasks are completed on time. Employees are specialized in catering to a particular market. New products for niche markets can be introduced. Demerits There can be intense competition among the employees. Decision-making can cause conflicts. It is difficult to determine the productivity and efficiency. All the markets may not be considered as equal. There may be lack of communication between the superiors and the employees. Employees may misuse their authority.

Geographic Structure: Large organizations have offices at different places, for example, there could be a north zone, south zone, west zone and east zone. The organizational structure, in such a case, follows a zonal structure. Merits There is better communication among the employees at the same location. Customers feel a better connection with local managers who can speak their A record of the work of individual markets and groups can be maintained. Decisions are taken thoughtfully and work when implemented.

New products or product modifications catering to a specific area can be introduced. Demerits It may give rise to a feeling of division among the employees of the organization. There may be unhealthy competition among different zones.

Core company ethics, beliefs and practices may differ from location to location. Tracing the performance and profits of each region may be time-consuming and tedious. There may be poor communication among the employees at different locations. Collaboration and cooperation between employees at different locations may not work out. Matrix Structure: This structure is a combination of function and product structures. It combines the best of both worlds to make an efficient organizational structure. This structure is the most complex structure. It uses teams of employees to accomplish work by capitalizing on their strengths while creating weaknesses which are of functional form. The different types of matrix structures are:

Weak/Functional Matrix: In this type of matrix structure, a project manager is assigned to look over the cross-functional aspects of the project. However, he has

a very limited authority and it is the functional manager who actually controls the inventory, resources and the project. Merits Employees are not attached to temporary staff or temporary work. The functional manager controls the project. The functional manager is responsible in case anything goes wrong. The more the project manager communicates with the employees, the better are the results. The project manager can make things happen without being in control. The decision-making rests in the hands of the functional manager. Demerits The project manager may face strong apathy from his workers. The project manager does not have complete authority. If not supervised, workers can reduce the productivity of the entire unit. The project manager is a weak authority who has no control over the employees. He has no control over workload management and task prioritization. He cannot even give a performance review. There are two more structures namely balanced/functional matrix and strong/project matrix. In the balanced/functional matrix, the responsibility and power is shared equally by both the project manager and the functional head. This may create a power struggle between them. In the strong/project matrix, the project manager is primarily responsible for the work while the functional head gives technical advice and allocates resources. Other Organizational Structures Bureaucratic Structure: This kind of structure can be seen in tall organizations where tasks, processes and procedures are all standardized. This type of structure is suitable for huge enterprises that involve complex operations and require smooth administration of the same. It is highly recommended for industries like food, beverage, etc. as they have to adhere to stringent rules and regulations.
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Merits As the complete control rests in the hands of one person, it is easy to achieve organizational goals. Strict hierarchies ensure timely completion of tasks and quality. It helps in easy cooperation and coordination among the employees. Standardization and the best practices can be implemented easily. Employees have to adhere to policies and procedures. Production takes place efficiently and effectively.

Demerits A centralized authority can discourage employees. It does not encourage innovative ideas. It can lead to employee dissatisfaction and attrition. It cannot adapt to changes in the business environment. One person cannot be responsible for coming up with creative ideas every time. It can trigger a power struggle in the organization. Pre-bureaucratic Structure: This structural form is best-exemplified in organizations where administration and control are centralized, and there is very little, if any, standardization of tasks. This structure is highly recommended for small-scale industries and start-ups. Merits It has a centralized structure with only one decision maker. The founder has complete control on decisions and their implementation. Communication mostly happens on a one-on-one basis. Decisions are made and implemented quickly. Productivity and profits are closely monitored. If an employee works hard, he gets noticed.

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Demerits Decisions taken by one person stand the risk of going wrong. It is only applicable to small businesses and cannot sustain once they expand. Lack of standardization can lead to inconsistencies. Employees are not part of the decision-making process and this can demoralize them. Effective communication may not take place as people do not open up in front of the authority. Due to lack of flexibility, employees may feel frustrated. Network Structure: In this structure, organization managers are required to maintain and coordinate business/professional relations with third parties such as clients, vendors and associates in order to achieve a collective goal of profitability and growth. Most of the time, these relations are maintained and tasks are coordinated via telecommunication and electronic media and, hence this structure is also known as a virtual structure. Merits The employees can be closer to the location of the customer. It helps in optimizing the knowledge potential of the organization. Even if something like a natural disaster occurs, the work of network employees can continue. It can be dynamic and easily adaptive to changes in the business environment. There is a certain level of flexibility for the employees. There can be a collaborative relationship between the supervisor and the employee.

Demerits An employee may have to report to too many supervisors and this may affect his work. As a formal hierarchy is missing, it can lead to conflicts.
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 Too much dependence on technologies like the Internet, phone, etc. can cause problems. As there is no physical place for employees, it affects communication. It can lead to increased work stress among the employees. An intense competition exists among the supervisors, to get a high-performing employee. Team Structure: Organizations with team structures can have both vertical as well as horizontal process flows. The most distinct feature of such an organizational structure is that different tasks and processes are allotted to specialized teams of personnel in such a way that a harmonious coordination is struck among the various teams. Merits It facilitates practical decision-making and implementation. Decisions are taken unanimously and not by an individual. It eliminates traditional scalar chains of command for getting approvals. The relationships and communication between employees improve. If one employee in the team fails to work, the other can take his place. It enables the heads to staff resources which complement each other.

Demerits There is very less contact with teams of other functions. If teams undergo constant changes and alterations, it can affect work. Each team contributes on its own and may not be in alignment with the organizational goals. Team members need to be proactive and incorporate better project management. The need for an effective leader can be felt. As decisions are given by many people, they may take a long time.

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Entrepreneurial Structure: The authority of such organizations oftentimes is heavily centralized and lies with one person. It only comprises two to three vertical levels and the duties of the employees overlap. It is suitable for small or new organizations where the decision of one person matters the most. It also exhibits easy responsiveness and adaptability to change in the business environment.

Horizontal Organization Structure: It is also known as a flat structure. In this type, there is absolutely nil or very less interference from the senior management which allows the employees to conduct their tasks smoothly. Employees are also involved in the decision-making process. As it eliminates the need for middle management, it contributes towards giving a quick response to customer feedback. However, it may not be applicable and practical for big organizations.

Vertical Organization Structure: It relies on the middle management to monitor and control the work of the employees. These structures have well-defined roles and responsibilities for the employees. Hence, delegating tasks to the employees becomes easier. It requires a strong leader at the top of the hierarchy as he is the one to take all the decisions. As a hierarchy exists, it ensures that the work is done in a disciplined manner.

Mechanistic Structure: This is the most formal and the strictest kind of structure with a clear distinction in the hierarchy and roles. Hence, these structures are vertically oriented. The hierarchy of the authority is well-defined. Decisionmaking rests in the hands of the senior management. As a lot of bureaucracy is involved in these structures, the leaders find it difficult to deal with competition. Also, innovation oftentimes is hampered due to red-tapeism. Employees work separately and are specialists of a task.

Organic Structure: It is the exact opposite of a mechanistic organizational structure. In an organization following the organic structure, the authority is delegated and is decentralized. Hence, communication takes place laterally. There is a lot of flexibility in this type of an organization. Employees generally work together and coordinate different tasks. They are highly flexible to adapt to the changes in the external business environment.
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Post-bureaucratic Structure: This is a structure that is not bureaucratic in nature. While bureaucratic organizations are too controlled, post-bureaucratic ones offer more freedom to the employees. Though there is hierarchy, the leaders are open to new ideas. The decisions are taken after discussion and consensus is not dependent on hierarchy. This encourages employee participation, trust, personal treatment, responsibility and empowerment. This type of structure is often used in housing cooperatives and non-profit organizations. It also incorporates techniques like total quality management (TQM) and culture management. Now that you know about the various organizational structures, implement the right one based on its applicability, advantages and disadvantages. It is important to find an organizational structure that works best for the organization as a wrong setup can hamper functioning and be detrimental to organizational success.

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2. Review of literature
1.1 Rodani Ramesh, Management and Organisational Behavior,Tata M.C Graw hill Education Private ltd,New Delhi. Rodani Ramesh Stated that organisation structure are based on distribution of authority and responsibility from top to bottom or from bottom to top in which involve entrepreneurial organ, line organ, line and staff organ, functional organ, committee organ and project organ, matrix organ. Organi design is a plan that leads to specific organisation structure. Organisation structure must fit with existing (internal and external) environment. Environmental forces shape the design of the organisation. Organ must adjust and readjust with outside focus to survive and grow. It is based on the principle survival of the fittest. Information technology and globalisation processes are the key issue of the present environment that affect organisational design
1.2 http://smallbusiness.chron.com/importance-correct-organizational-structure-

3791.html, by Lisa Magloff, Demand Media. Lisa Magloff, Demand Media Stated in his articles that As your business grows, you may need to change the organizational structure. No single correct organizational structure fits every business. Many small businesses have a centralized organizational structure, with the owner making all the decisions. If there are only a few employees, this can work well. Once the business begins to grow larger and more employees are added, a new structure may be needed. Choosing and using the correct organizational structure for your business can ensure you achieve maximum profitability. 1.3http://www.jobdig.com/articles/439/Organizational_structure_can_be_underlyin g_cause_of_workplace_issues.html, By Joan Lloyd. Joan Lloyd stated in his articles that Organizational structure, much like a human skeletal structure, determines what shape an organization will take. We don't spend much time thinking about our skeletal structure until something breaks, and so it goes with organizations. How an organization is structured basically means how the reporting
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relationships and work teams are organized. It reveals a great deal about the culture, function and leadership of a company. When I work with an organization, structure is one of the components I examine, since it can be an underlying cause of problems. Perhaps it is a cause of problems where you work. Here are a few examples I've come across: Too many levels of hierarchy slow decision-making and are a barrier to empowerment. One of the best examples of the impact structure has on operations is the transformation that began in the 1970's and is still going on today: flattening. In the early part of this century, companies had many levels between the worker in the shop or office and the President. Decisions had to pass through many levels of approval before anything got done.

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3. Nestle as Organisation

3.1 PROFILE OF THE COMPANY Nestl with headquarters in Vevey, Switzerland was founded in 1866 by Henri Nestl and is today the world's biggest food and beverage company. Sales at the end of 2004 were CHF 87 bn, with a net profit of CHF 6.7 bn. We employ around 247,000 people and have factories or operations in almost every country in the world.

The Company's strategy is guided by several fundamental principles. Nestl's existing products grow through innovation and renovation while maintaining a balance in geographic activities and product lines. Long-term potential is never sacrificed for shortterm performance. The Company's priority is to bring the best and most relevant products to people, wherever they are, whatever their needs, throughout their lives. 3.2 BACKGROUND
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Nestle was promoted by Nestle Alimentana, Switzerland, a wholly owned subsidiary of Nestle Holdings Ltd., Nassau, Bahama Islands. Nestle is one of the oldest food MNC operating in India, with a presence of over a century. For a long time, Nestle Indias operations were restricted to importing and trading of condensed milk and infant food. Over the years, the Company expanded its product range with new products in instant coffee, noodles, sauces, pickles, culinary aids, chocolates and confectionery, dairy products and mineral water. Nestle was incorporated as a limited company in 1959. In 1978, the Company issued shares to the Indian public to reduce its foreign holdings to 40%. Its name was changed from Foods Specialties Ltd. to the current name in 1981.The parent held 51% stake in the company as at 2000 end. It has FIPB approval to hike stake by 10% and has been gradually acquiring shares from the open market. Parent stake in the company as at 2001 end stood at 53.8%. The parent plans to continue hiking stake through open market purchases. Nestle India Ltd, 51% subsidiary of Nestle SA, is among the leading branded food player in the country. It has a broad based presence in the foods sector with leading market shares in instant coffee, infant foods, milk products and noodles. It has also strengthened its presence in chocolates, confectioneries and other semi processed food products during the last few years. The company has launched Dairy Products like UHT Milk, Butter and Curd and also ventured into the mineral water segment in 2001. Nestles leading brands include Cerelac, Nestum, Nescafe, Maggie, Kitkat, Munch and Pure Life. 3.3 PLANT LOCATIONS Nestle started its manufacturing operations with Milkmaid in 1962 at Moga factory. Manufacturing of Nescafe started in 1964 at the same factory. The company set up another factory at Cherambadi in Tamil Nadu, for manufacture of infant foods, coffee etc. For almost two decades there were no new additions of manufacturing facilities due to restrictive policy environment. The company set up its Nanjangad (Karnataka) factory in 1989 and the Samlakha (Haryana) factory in 1992. The Ponda (Goa) factory started operations in 1995. The Company set up its sixth manufacturing unit in 1997 at Bicholim in Goa

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3.4 BUSINESS PRINCIPLES Since Henri Nestl developed the first milk food for infants in 1867, and saved the life of a neighbors child, the Nestl Company has aimed to build a business based on sound human values and principles. While our Nestl Corporate Business Principles will continue to evolve and adapt to a changing world, our basic foundation is unchanged from the time of the origins of the Company, and reflects the basic ideas of fairness, honesty, and a general concern for people. People first: Employees, people and products are more important at Nestl than systems. Systems and methods, while necessary and valuable in running a complex organization, should remain managerial and operational aids but should not become ends in themselves. It is a question of priorities. A strong orientation toward human beings, employees and executives is a decisive, if not the decisive, component of long-term success. Quality products: Our focus is on products. The ultimate justification for a company is its ability to offer products that are appealing because of their quality, convenience, variety and price -- products that can stand their ground even in the face of fierce competition. Long-term view: Nestl makes clear a distinction between strategy and tactics. It gives priority to the long-range view. Long-term thinking defuses many of the conflicts and contentions among groups -- this applies to employment conditions and relations with employees as well as to the conflicts and opposing interests of the trade and the industry. Of course, our ability to focus on long-term considerations is only possible if the company is successful in the struggle for short-term survival. This is why Nestl strives to maintain a satisfactory level of profits every year. Decentralization: Switzerland is home to Nestl's Swiss subsidiary, its international headquarters and the registered office of Nestl's holding company, but Nestl does not regard its Swiss headquarters as the center of the universe. Decentralization is a basic

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principle of Nestl. Our policy is to adapt as much as possible to regional circumstances, mentalities and situations. By decentralizing operational responsibility, we create strength and flexibility and are able to make decisions that are better attuned to specific situations in a given country. Policies and decisions concerning personnel, marketing and products are largely determined locally. This policy creates stronger motivation for Nestl's executives and employees and a greater sense of identification with Nestl's business. It is not Nestl's policy to generate most of its sales in Switzerland, supplemented by a few satellite subsidiaries abroad. Nestl strives to be an "insider" in every country in which it operates, not an "outsider." Uniformity: A very important concern at Nestl has to do with uniformity: how consistent Nestl's principles, policies, rules of conduct and strategies should be, and to what extent they should differ depending on the country, subsidiary, region, branch or group of products. In general, Nestl tries to limit the uniformity of its policy to a requisite minimum. This minimum is then systematically enforced, unless there are compelling reasons in a given market that justify deviation from policy. Diversification: Nestl does not want to become either a conglomerate or a portfolio manager. Nestl wants to operate only those businesses about which it has some special knowledge and expertise. Nestl is a global company, not a conglomerate hodgepodge. We regard acquisitions and efforts at diversification as logical ways to supplement our business, but only in the context of a carefully considered corporate marketing policy. Nestl is committed to the following Business Principles in all countries, taking into account local legislation, cultural and religious practices:

Nestl's business objective is to manufacture and market the Company's products in such a way as to create value that can be sustained over the long term for shareholders, employees, consumers, and business partners.

Nestl does not favor short-term profit at the expense of successful long-term business development.

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Nestl recognizes that its consumers have a sincere and legitimate interest in the behavior, beliefs and actions of the Company behind brands in which they place their trust and that without its consumers the Company would not exist.

Nestl believes that, as a general rule, legislation is the most effective safeguard of responsible conduct, although in certain areas, additional guidance to staff in the form of voluntary business principles is beneficial in order to ensure that the highest standards are met throughout the organization.

Nestl is conscious of the fact that the success of a corporation is a reflection of the professionalism, conduct and the responsible attitude of its management and employees. Therefore recruitment of the right people and ongoing training and development are crucial.

Nestl continues to maintain its commitment to follow and respect all applicable local laws in each of its

Research and development: The Nestl research and development centers have two main tasks: to create new products and manufacturing processes and to improve those that already exist. These centers play a key role in product safety and quality and also have their role in conserving resources and protecting the environment. Environmental concerns are an integral part of any development process to ensure that our future commercial operations meet the desired criteria. The Nestl Research Center provides the scientific support needed to prevent and solve environmental problems arising in the development groups as well as manufacturing. In addition, studies are carried out to find new ways of using industrial residues to create value added byproducts. This will reduce total emissions and effluents. The Nestl development centers prepare environmental impact studies for new products and manufacturing processes. These cover all aspects, from raw materials, through processing, to the final packed product. These analyses provide additional elements for use in deciding whether to commercialize a new product, or to introduce a new or modified process. Foresight: At present, the world faces daunting questions about its ability to provide enough wholesome food for everyone. Malnutrition and poor eating habits are still serious problems in many developing countries. By 2100, the world's population will
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double. Will it be possible to feed a world with so many inhabitants? At Nestl, the big picture is all about feeding the world and providing food and nutrition for an evergrowing population. Our response to this situation is to intensify research, strive for innovations and improve quality. Flexibility and simplicity: The public's sense of the power and size of a corporation is often inaccurate, for a company's power is limited by a host of factors including legislation, competition, regulatory bodies and publicity. From a business point of view, it is desirable for a firm to achieve the size best suited to a specific industry or mode of production. To be competitive internationally and make significant investments in research and technology, a larger company has an advantage. From a strictly organizational point of view, flexible, simple structures work best and excessively large units should be avoided whenever possible. In both respects Nestl has a natural advantage: Although it is a big company, it is spread out over many countries and each of Nestl's factories has its own management and responsibility. Handling of raw materials: The Nestl Group is in principle not directly involved in primary production of raw materials and other food ingredients. In general we use locally available raw materials and purchase them either directly from producers or through existing trade channels. Raw materials have to meet clearly established quality criteria and are checked for possible contaminants including environmental contaminants. Our purchasing specifications comply not only with legal requirements but go further to ensure highest safety and wholesomeness of our products. Whenever possible we give preference to those goods for which environmental aspects have been taken into consideration. In those cases where the required agricultural raw materials are not available locally, but the natural production conditions exist, we encourage local production and provide assistance for cultivation and dairy farm management. We support plant growing and livestock husbandry methods which:

preserve and improve natural soil productivity and economize and protect water resources

allow the lowest, most appropriate and safe use of agro-chemicals

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use the least energy.

Packaging: Manufacturing comprises all unit operations necessary to transform perishable raw materials into finished products, with the aim to make them safe and convenient for the consumers. The manufacturing activities of the Nestl Group:

respect natural resources by efficient use of raw materials and energy minimize waste generation and emissions ensure environmentally safe disposal of all waste which cannot be recycled.

Regular assessments of processing practices are carried out. These assessments include:

evaluation of individual plant performance with regard to operations which have an impact on the environment

definition of targets for improvement review of plant compliance with local government regulations, company environmental standards, as well as results achieved in comparison with targets for improvement

full investigation of incidents which may affect the environment.

Information on developments in environmental protection technology and practices is disseminated as required to ensure that all plants are using the most effective environmental practices for their type of processing. This applies also for co packers. Marketing and distribution: Marketing is based on the principle of satisfying consumer needs. This is the foundation also for the environmental marketing approach of Nestl. Environmental product claims in advertising, promotional material and on packaging are in accordance with legal requirements, based on solid scientific evidence and used in a serious and reasonable manner. Our aim is to minimize wastage in communication, publicity and promotional material, in particular through more precise targeting of marketing activities. Consumer promotions and merchandising material such as consumer offers, instore promotions, display material, leaflets, printed matter, etc. take environmental aspects into account. This means due consideration of environmental
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impact in selecting both materials and printing methods. In distribution, energy efficient and pollution controlled methods are encouraged wherever possible. Thanks to all these synergies, we can contribute to valuable discussions and be recognized as an active partner in helping authorities to formulate comprehensive strategies in the field of the environment. 3.5 PRODUCTS OF NESTLE MILK PRODUCTS

i. NESTLE EVERYDAY: To meet the requirements of the tea-whitening segment, this product was launched in 1986. On account of aggressive marketing, focused distribution, excellent consumer acceptance and product quality, this brand has shown strong growth and holds good promise for the future.

ii. NESTLE MILKMAID: It is a Partly Skimmed Sweetened Condensed Milk. NESTL MILKMAID is a versatile product and excellent as a dessert ingredient. Lip-smacking desserts can be whipped up in the shortest possible time. NESTL MILKMAID is a globally recognized and popular brand of Nestl. It has been available in India ever since the Company first started importing and selling its products over 90 years ago.

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iii. NESTLE DAHI: Is made from fresh, high quality pasteurised toned milk. It has all the goodness of natural Calcium and the Cultures used in NESTL Dahi help improve digestion. It comes available for your convenience in 85g, 200g and 400g Tubs and 200g and 1kg Pouch packs.

The pouch packs are currently available only in Delhi NCR.

BEVERAGES

i. NESCAF CLASSIC: It is 100% Pure Instant Coffee. NESCAF CLASSIC has the unmistakable taste of 100% pure coffee and is made from carefully selected coffee beans picked from the finest plantations, blended and roasted to perfection. 100% coffee100% pleasure

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ii. NESTEA: New NESTEA Iced Tea with Green Tea brings natural, healthy goodness of Green tea into your glass. Green tea is a good source of NATURAL ANTIOXIDANTS which are known to protect body cells from damage caused by free radicals. Feel good everyday with the refreshingly light taste of NESTEA with Green Tea.

iii. NESCAF CAPPUCCINO: The world's favourite instant coffee brand NESCAF brings two delicious new Cappuccino variants - NESCAF Choco Mocha and NESCAF Vanilla Latte. Treat yourself to its rich coffee taste and delicious froth. Comforting, relaxing - a delicious cup of NESCAF Cappuccino is a great way to enjoy a true caf experience at home.

CHOCOLATES

i. MILKYBAR CHOO: MILKYBAR CHOO - the tasty chewy MILKYBAR - now has power of Calcium! Outdoor champions, grab one now. Also available in yummy Strawberry and Choko flavours!! mm, mm, mmmmmmmmm......

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ii. MILKYBAR ECLAIRS: Introducing a delicious new wave of strawberry flavour in your favourites MILKYBAR clairs.

iii. POLO

Prepared Foods

Maggi merged with Nestl in 1947. Buitoni, the authentic Italian brand, which has been producing pasta and sauces in Italy since 1827, became part of the Nestl Group in 1988.
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4. Organisational Structure of Nestle

Nestl is a highly decentralised organisation which means the lower level managers are eligible to give significant share in the companys development and even make some fast and important decisions. However, they acknowledge that operational efficiencies, as well as the group-wide need for alignment and people development, may also set limits to decentralisation (The Nestl Management and Leadership Principles) meaning there is only a certain extent to which decentralisation in this company is possible. Companys external environment is complex and uncertain and geographical location is dispersed in more than 80 countries in five continents with over 265,000 employees (Our Global Organization).That makes it hard to keep an eye on all departments from Headquarters only. Solution for that is the decentralised power that has been brought to lower level employees. It is stated in Nestls Management and Leadership Principles that they encourage employees to practice open communication and active co-operation in order to contribute to the company and personal development. Nestl also belongs to organic organisation type that is characterised as highly adaptive and flexible. In Nestl employees do not require high number of rules nor high direct supervision. That is achieved by having highly skilled and trained professionals as a part of Nestls team, where even lower level managers are empowered to make their own decisions, due to the complex and unpredictable external environment in which Nestl is in. Nestl is a peoples company because they care about their employees and their opinions (The Nestl Spirit). Teamwork is an important element as Nestl has acknowledged, and their employees are the most important asset that the company has. 4.1 Organizational Structure Organizational structure is the formal framework by which jobs tasks are divided, grouped, and coordinated. Nestl is a Function-based organization. The tasks are divided into separate jobs and then these jobs are grouped together under different departments i.e. fuctional departmentalization is found in organization. Each major area is kept under the manager who is specialist in that concerned field and is responsible for all activities, which that department performs.
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Organizational structure of Nestl is hierarchical.

There is a chain of command that extends from upper organization levels to the lowest levels and clarifies who reports to whom. The orders move from upward to downward and suggestions move downward to upward direction. The continuous improvement section is made for this purpose. It encourages employees to give their suggestions and share the new ideas. The jobs are formalized; there are explicit job descriptions, numerous organizational rules, and clearly defined procedures covering work procedures. But in spite of formal rules and regulations, Nestl keeps on changing to keep a pace with the changing environment. So, it is strict but not rigid organization. In effort to be more flexible and responsive, there has been distinct trend in this organization toward decentralizing decision-making.

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Conclusion
Organizational structure is the formal framework by which jobs tasks are divided, grouped, and coordinated. Nestl is a Function-based organization. To put the pre-going discussion into nut-shell. It can safely be ventured to opine that Nestl company has s much potential at that time but if Nestl use the always differential strategy in proper manner we easily conclude that Nestl will be able to lead the companies in the India and abroad. It encourages employees to give their suggestions and share the new ideas. The jobs are formalized; there are explicit job descriptions, numerous organizational rules, and clearly defined procedures covering work procedures. In Nestl employees do not require high number of rules nor high direct supervision. That is achieved by having highly skilled and trained professionals as a part of Nestls team, where even lower level managers are empowered to make their own decisions, due to the complex and unpredictable external environment in which Nestl is in.

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Bibliography

WEBSITES VISITED:
1. http://smallbusiness.chron.com/importance-correct-organizational-structure3791.html, by Lisa Magloff, Demand Media. 2.http://www.jobdig.com/articles/439/Organizational_structure_can_be_underlying_caus e_of_workplace_issues.html, By Joan Lloyd BOOKS: 1. Rodani Ramesh, Management and Organisational Behavior,Tata M.C Graw hill Education Private ltd,New Delhi.

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