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ACKNOWLEDGEMENT
The words put on paper are mere ink marks but when they have a
purpose, there exist a thought behind them. I too have a purpose to
express my gratitude towards the individuals without which the project
would not have been possible.
I owe a deep sense of gratitude to Dr. Himanshu Mohan, for his active
guidance and constant supervision together with time to time providing
of necessary information connected with the project following active
support in the completion of project.
Finally I would also like to express my earnest gratitude to my friends
and family members for their constant support and encouragement
without which the assignment would not have been completed besides
the constant blessings of Almighty.
Pragati Bharti
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Introduction
Procter & Gamble is a Fortune 500 American multinational corporation
headquartered in Downtown Cincinnati, Ohio that manufactures a wide
range of consumer goods (Wikipedia 2010, Procter & Gamble). Procter
& Gamble (P&G) is America’s biggest maker of household products,
with at least 250 brands in six main categories: laundry and cleaning
(detergents), paper goods (toilet paper), beauty care (cosmetics,
shampoos), food and beverages (coffee, snacks), feminine care (sanitary
towels) and health care (toothpaste, medicine). P&G’s famous brands
include Ariel, Pantene, Head & Shoulders, Fabreze, Sunny Delight, and
Oil of Olaz. About half of P&G's sales come from its top ten brands. P&G
also makes pet food and PUR water filters and produces the soap operas
Guiding Light and As the World Turns (Corporate Watch, n.d. Procter &
Gamble). So what has made P&G become what it is today? The answer is
multiple but apparently its organisational structure has played an
important role, which has necessitated this study.
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P&G’s Structure
An organisation is a consciously coordinated social entity, with a
relatively identifiable boundary, that functions on a relatively
continuous basis to achieve a common goal or set of goals. And
organisation structure defines how tasks are to be allocated, areas of
responsibility and authority, who reports to whom, and the formal
coordinating mechanisms and interaction patterns that will be followed
(Robbins & Neil Barwell 2002, pp.6-7).
P&G has undertaken many structural changes over the past century, but
that discussed in this study is the current structure of P&G. The main
structure, partial organisation structure and specific structure of P&G
are shown in Figure 1.1, 1.2 and 1.3.
pdf, p.15)
Any one of these five parts can dominate an organisation and where
each dominates, a different organisational form emerges. Moreover, a
given structural configuration is likely to be used depending on which
part is in control. As a result, there are five distinct design
configurations and each one is associated with the domination by one of
the five basic parts.
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responsibility have full control over their key functions; and fourth the
service functions and corporate functions formed a third and fourth
dimensions in matrix structures over the two key dimensions. The new
structure is a four-dimension front-back hybrid matrix with a top leader,
a coordination council to define priorities and solve disputes, matrix
leaders, and subordinates with the need to coordinate and balance four
influences structure as shown in Figure1.2.
The routines and policies that had created problems to the proper
functioning of the matrix organization also streamlined and adapted to
the new structure. A single business-planning process was created
whereby all budget elements could be reviewed and approved jointly by
the various matrix leaders (Ronald Jean Degen, 2009, pp.34-35).
has achieved what it set out to achieve, rather than how it got there.
Popular goal-attainment criteria include achieving profit objectives or
meeting budgets, achieving certain quality outcomes, helping a certain
number of disadvantaged people, attaining health objectives or winning
a sports competition. Goal attainment approach allows for better
concentration on and dedication to certain objectives of an organisation
and easier assessment of its performance because the number of goals of
the organisation is usually small and countable.
(2) Systems approach is to evaluate an organisation’s effectiveness by
its ability to acquire inputs, process the inputs, channel the outputs and
maintain stability and balance. Systems models emphasise criteria that
will increase the long-term survival of the organisation, such as the
organisation’s ability to acquire resources, maintain itself internally as a
social organisation and interact successfully with its external
environment.
Therefore, systems approach has such advantages: it allows managers
to make decisions that will benefit the organisation’s long-term health
and survival rather than short-goals; besides, the systems approach
increases the manager’s awareness of the interdependence of
organisational activities; moreover, systems approach has higher
applicability where end goals either are very vague or defy
measurement.
(3) Strategic-constituencies approach proposes that an effective
organisation is one that satisfies the demands of those constituencies in
its environment from which it requires support for its continued
existence. This approach is similar to the systems view, yet it has a
different emphasis. Both consider interdependencies, but the
strategic-constituencies view is not concerned with all the organisation’s
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just a few goals for each of the four perspectives and reach the final
decision which should be balanced in terms of every perspective rather
than contributing to one particular perspective.
Conclusion
Through this study, we have looked into the P&G’s organisation
matrix structure and how does its structure facilitate the achievement of
its goals and to some extent, this structure is effective. However, in a
context of complex, rapidly changing and highly competitive global
environments, an organisation has to adapt quickly in order to take
advantage of opportunities that arise anywhere in the world. And the
need for rapid innovation cannot be ignored as well. So turning to a
boundaryless structure which has higher environmental responsiveness
may be a better option for P&G.