CHANGES IN STRUCTURE

IN P&G

General definition of Organization Structure

An

organizational structure of a company is the

infrastructure of its working relationships amongst human
resources to achieve goals.

A strategy should be linked to the design taking into

consideration resources, goals, uncertainty, and complexity

of the organization.

P&G: Organizational Restructuring

In 1998 , P&G started a 6

years restructuring
program Organization
2005 (introduced by
Durk Jager)
Dismantling the matrix

organization into1. GBU

2. MDO
3. GBS

6 year re-structuring plan estimated to cost $1.9 billion

Voluntary separation of 15000 employees by 2001, with

almost 10500 overseas

Reduced management layers from 13 to 7
Dismantling the Matrix organisation into :

GBU primary responsibility of product development, brand design,

business strategy and new business development
MDO with primary responsibility of market
GBS for managing internal businesses processes

The new organization design was intended to improve

speed with P&G innovated and globalized its innovations

THANK YOU