Professional Documents
Culture Documents
Management of Innovation
Nishant Parashar
Sunil Kumar
Khalid Saljoqi
Table of Contents
Types of organizational
structure
Functional Organizational
Structure
Divisional Organizational
Structure
Matrix Structure
The practice of managing individuals with more than one reporting line
(in a matrix organization structure), but it is also commonly used to
describe managing cross functional, cross business group and other
forms of working that cross the traditional vertical business units often
silos - of function and geography.
Organizational Structure
Timeline
Phase 1 (1948-1987)
United States
Europe
1998-Matrix Structure
Problems in Europe
Corporate R&D were completely disconnected
from US Operations
Functional units were also in isolation from Is
counterparts
No standardization
Same product with the different names
R&D expense was doubled
Production became expensive
Phase-4 Organization
Shift
Initial
Final
Consequence of
Organization 2005
Missed Earnings in 2000
In the fourth-quarter profits were flat against
the expectation 15-17% increase
P&G lowered its future quarterly sales growth
estimates to 2-3%
P&G Stock lost 7%, falling to $57 after the
announcement
Loss of US market share in 16 out of 30
categories
Lack of immediate results, job reductions,
reduced employee morale led to reduced profits
and stock price reduced to half in last six months
Our Recommendations
The top management should meet managers and
employee across different levels, functions and
countries to seek feedback and provide
clarification on Organization 2005
Introduction of cross functional team to remove
silo among functional units
Giving freedom and flexibility to local managers
to align their strategy to global standard to bring
synergy
Find the true balance between centralization and
decentralization
THANKS ALL!