Organizational Design Research Worksheet Essay Example

market development organizations (MDOs) were established to focus on specific regions of the world. P&G pursues a global approach using its GBUs to develop strong brands with innovative products, while also supporting local marketing efforts that respond to native preferences.

To enhance cooperation, information flows bi-directionally between the product-oriented and marketing-oriented departments. The corporate staff of the company's global business services group (GBS) incorporates knowledge into the company's businesses. An example of a company structure to study is Starbucks, the world's leading retailer, roaster, and specialty coffeehouse brand, which utilizes a matrix organizational structure.

Within the US, this company has four divisions that operate independently, while support functions are continued internationally. The matrix structure combines both divisional and functional structures. The goals and visions of each division in the US are shared and operated as their own department.

The environment of an organization consists of external institutions or forces that have the potential to impact its performance—suppliers, customers, government, regulatory bodies, competitors, and public pressure groups such as NGOs. The environment is made up of three layers: the general environment (broad elements that affect entire industries, including demographic, social, political, legal, and technological factors), the industry environment (which influences the firm), and the competitor environment (where the company must monitor its rivals and their strategies).

The significance of the environment lies in its impact on managerial decisions and potential for environmental uncertainty, particularly evident in fast-moving consumer goods (FMCG) businesses like P;G. This industry undergoes continual changes from technology, evolving customer lifestyles and demographics, social developments and other influential factors, resulting in instability. Consequently, P;G's organizational structure is designed with consideration towards its environment, facilitating responsive adaptation

to such factors.

The multidivisional approach ensures that each product receives individual attention from appropriate departments such as finance, marketing, HR, and sales. This approach allows complete concentration on a product's market strategy and its goals. Starbucks maintains a relatively stable business environment, with its focus on integrating business values across its international operations. Coffee and beverages are stable products and are consumed widely. The product does not require frequent updates except for packaging and logo changes.

Starbucks adopts the matrix approach, adjusting its organizational design based on the country of operation to meet the needs of locals and achieve business goals. This combination of functional and product-based division requires employees to report to two heads, with project managers taking the lead and functional heads offering expertise and resource allocation. Organizational design plays a crucial role in coordinating business goals within a structure, with technology and talent management being key considerations.

The incorporation of technology and organizational design is an effective means to attain desired outcomes, including the goal of talent management. Talent management is the recognition of employee potential and the enhancement of their abilities towards achieving organizational objectives. Through talent management, employees are guided towards tasks that allow them to excel, resulting in greater focus, motivation, and clarity of expectations.

The use of technology is crucial in maintaining the confidentiality of talent management reviews and enhancing the database. An effective approach to overcoming organizational impediments to change involves educating executives and employees on the process and expected minor changes, as well as incorporating techniques for increasing organizational adaptability through organizational development. Communication and education can also be facilitated by consultants and psychologists who provide support for stressed

employees. Conflicts that arise during this process can be resolved through bargaining and negotiation.

Sensitization training, team building, intergroup training, and organizational confrontation meetings are effective in fostering change among individuals, groups, and the organization as a whole. The companies used here as examples are P;G and Starbucks. Despite their massive networks and global operations, they remain successful due to their practical organizational structure and design, which are tailored to their respective environments and target market. P;G's primary objective is to enhance consumers' lives through the provision of superior quality branded products while reaping the benefits of increased sales and profits. P;G's product-oriented multidivisional approach has enabled it to meet its mission statement.

Starbucks aims to inspire and nurture the human spirit by serving one person, one cup, and one neighborhood. The matrix approach enables the functional and project leaders to unite and incorporate the company's values with the customers' local needs (www.starbucks.com).