departmentalization organizational structure of nestle

Most companies are concerned with producing a product or service for use by others.Departmentalization by Territory method is followed where; unless to local conditions appear to offer advantages, such as low cost of operation and opportunities to capitalize on attractive local conditions as they arise.No one way of departmentalizing is suitable for all organizations and all situations.Since it is produced for use by others, it must be distributed or marketed;Two particular things need to consider before setting the formal structure of the organization or the Departmentalization. It is the largest food company in the world.

Nestle’s products include baby food, coffee, confectionery, bottled water, breakfast cereals, dairy products, ice cream, pet foods and snacks. The grouping increases efficiency in many organizations and allows workers to specialize in a particular area of the business. It is more preferable, and efficient than maintaining a different planning staff or department.Departmentalization is the efficient and effective grouping of jobs into meaningful work units to coordinate numerous jobs—all for the expeditious accomplishment of the organization’s objectives.As an organization grows, its departments grow and more sub-units are created, which in turn add more levels of management.These types result mainly from such things as the nature and amount of the work to be done, the degree of specialization practiced, and the people and the workplaces available for the work.The organization is a system of integrated parts, and to give undue emphasis to any functional part at the expense of the entire organization creates organizational islands, thus resulting in inefficiency and significant behavioral problems.Matrix departmentalization attempts to combine functional and task force (project) departmentalization designs to improve the synchronization of multiple components for a single activity (i.e., a moon launch), to improve the economics of scale, and to better serve the customer and company.the manager in charge of sales splits advertising and sales promoting activities, and for each, places a subordinate in charge.An organization structure and design are shaped significantly by the Departmentalization followed.Functional departmentalization groups together jobs which are involving the same or similar activities. Organizational structure is the formal framework by which jobs tasks are divided, grouped, and coordinated. //Effective organizational function plays an important role in leaving an impact on the organizational structure. These three additional units appear in the organization structure at the level immediately below that of the fundamental unit of sales.The terminology may vary from firm to firm, and in non-business organizations, the functions may be more obscure (i.e., in churches, “marketing” may be called “evangelism”), but essentially all the three activities must be implemented for the organization to survive.This organizational form is used when the great emphasis is placed on effectively serving different customer types.Departmentalization results from the division of work and the desire to obtain organization units of manageable size and to utilize the managerial ability.Under the fundamental unit of marketing, the scope of the work may be so broad that it is believed advantageous to divide the work into advertising, sales promoting, and selling.The planning task force is most often formed when the organization requires addressing special circumstances. Departmentalization of the organization by customer group. ?Nestle use global matrix structure because Nestle is a global organization. They may determine what is best by looking at the situation they face the jobs to be done and the way they should be done, the people involved and the level of their skill, the technology being used, and other internal and external environmental factors in the situation.A sales manager is appointed to manage the selling work in the field. These departments are created so that tasks can be performed by specialization within the organization. What is Nestle Organizational Structure?It's the Global Matrix StructureExampleA global matrix structure is created by superimposing a product form of departmentalization on an existing functional organizationWhy Nestle use global matrix structure? Nestle provide transparent information about their Corporate Affairs Department, Board of Directors responsibility for Corporate Affairs. 4. Full details of each member and the committees that they operate within can be found in our Board of Directors section.. 3. Nestlé has a Board of Directors, led by our Chairman Paul Bulcke, who was the former Nestlé CEO. Everything you need to know about Nestlé is here: brands, key figures, milestones.Rethinking the future of plastics • Setting a shared vision and common

Organizational Structure of Nestlé is Hierarchical.

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departmentalization organizational structure of nestle