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The essence of organizational design is the manipulation of a series of parameters that determine the division of labor and the achievement of coordination. By all the time keeping in mind the organizational requirements of the Unilever Pakistan I would like to suggest a 'Matrix Organizational Structure' based on the grouping by the market & functions. In this organizational structure no matter what the bases of grouping at one level in an organization, some interdependencies always remain and a different type of grouping can be used at the next level in the hierarchy; staff units can be formed next to line units to advise on the problems. One basis of grouping is favored over the others in each case. This concept of matrix structure is balance between two or more bases of grouping for example functional with market. This is done by creation of deal authority structure- two or more managers, units or individuals are made jointly and equally responsible for the same decision. Limited vertical decentralization will help prompt decision making where managers of market based units are delegated the power to control most of the decisions concerning their line units.
Hence this proposed structure will serve the Unilever Pakistan's end markets and because the workflow interdependencies are the important ones to some extent and the organization cannot easily handle them by standardization adopting this structure will tend to favor the market bases for grouping in order to encourage mutual adjustments and direct supervision.
In a nutshell we can say that the matrix organization structure itself, solves nothing, it is how people work together in the matrix organization that makes it succeed or fail. By adopting the proposed organizational structure the Unilever Pakistan can take advantage of the followings key benefits;
Because key people can be shared, the project cost is minimized
Conflicts are minimal, and those requiring hierarchical referrals are more easily resolved
There is a better balance between time, cost and performance
Authority and responsibility will be shared
Stress is distributed among the team
Improved ability to access resources across the old functional and geographic silos.
better coordination on shared technologies across the organization (such as IT)
Faster decentralized decisions
Improved access to a diverse range of skills and perspectives.
Improved global or regional projects
Broader and more multi-skilled people development
Increased communication and coordination across the business
Reflects the needs of regional customers
P1.2; Develop criteria for reviewing potential options.
An organization is viable if it can survive in a particular sort of environment. Although its existence is separate, so that it enjoys some kind of autonomy, it cannot survive in a vacuum. Hence in my opinion apart from the typical SWOT and PESTL analysis, following benchmarking criteria should also be used for reviewing potential options regarding a management strategy.
Managerial, operational and environmental varieties, diffusing through an institutional system tend to equate; they should be designed to do so with minimal damage to people and cost.
The four directional channels carrying information between the management unit, the operation, and the environment must each have a higher capacity to transmit a given amount of information relevant to variety selection in a given time than the originating sub system has to generate it in that time.
Wherever the information carried on a channel capable of distinguishing a given variety crosses a boundary, it undergoes transduction; the variety of the transducer must be at least equivalent to the variety of the channel.
Further to that to review the potential options for the management strategy and organizational structure we must make sure that the best possible strategy clearly considers the age and size of the organization, technical systems, environment and the governing framework. Since the Unilever Pakistan has a long existence history and it is operating at a multinational level hence the proposed management strategy should more elaborate its structure; that is' the more specialized its jobs and units and the more developed its administrative components.
The prospective strategy must avoid technological uncertainties; it should provide which production and operational technology will prove to be the most efficient? It should be free of strategic uncertainty. It the prospective management strategy should be clearly identified and different firms are groping with different approaches to product/market positioning, marketing, servicing, and so on, as well as betting on different product configurations or production technologies.
Unilever's pressure to develop products to meet demand is so great hence the proposed management strategy should make sure that bottlenecks and problems are dealt with expediently rather than as a result of an analysis of future conditions. Similarly implementing new strategy costs millions to the organization hence it should make sure that reduce operative cost and increase the efficiency of the organization.
P1.3: Construct an agreed strategy and include its resource implications.
Management strategy is a systematic analysis of the factors associated with the external and internal environment to provide the basis for rethinking the current management practices. Its objective is to achieve better alignment of corporate policies and strategic priorities. In case of the Unilever Pakistan the key important points of the proposed mutually agreed strategies are the followings along with their resource implications;
There must be a workflow process in order to achieve results in the form of a product or service.
There must be an Authority Process in order to direct behaviour in the interests of the organization and its participants.
There must be a Reward and Penalty Process to induce people to behave in a way required by the interests of the organization and its participants and / or to behave in a way making associated activity possible.
There must be a Perpetuation Process to maintain, replenish, and make adequate the quantity and quality of social and natural resources utilized by the organization and its participants.
There must be an Identification Process to develop a concept of the wholeness, uniqueness and significance of the organization. This is usually accompanied by efforts to select and define clearly understood emotionally toned symbols, concepts, or other such factors which will help individual participants identify the uniqueness of the organization as a whole, which in turn automatically helps to define the uniqueness of the organization in the larger environment in which it is embedded.
There must be a communication process to provide for the exchange of information, ideas, feelings and values etc utilized in all activities.
There must be an evaluation process which establishes criteria for and defines levels of utility and value for people, materials, ideas, and activities and which rates them and allocates them to these levels.
The key components of a complete Strategic Plan include analyses or discussions of following resource implication:
Human and other Capacity Requirements - The human capacity and skills required to implement the strategy, current and potential sources of these resources. Also, other capacity needs required such as internal systems, management structures, engaged partners and Network NOs and POs, and a supportive legal framework etc.
Financial Requirements - The funding required to implement the proposed management strategy, current and potential sources of these funds, and the most critical resource and funding gaps.
Risk Assessment and Mitigation Strategy - What risks exist and how they can be addressed.
Estimate of Project Lifespan, Sustainability, and Exit Strategy - How long the strategy will stand implemented, after how long and why strategy will require modifications (if feasible to do so), and how it will ensure sustainability of the corporate objective achievements.
Management Strategic Plan' may only be considered complete when these components have been defined, at least in broad terms. As the project moves into Implementation, several of these components are then defined in more detail and tested in reality.
Task 2: Develop vision, mission, objectives and measures
2.1 Consider the organizations ethical, cultural, environmental, social, and business background against current standpoints.
ETHICAL BACKGROUND OF UILEVER PAKISTAN;
The Unilever Pakistan comprises several departmental units. Their ethics part is very important. In the case of Unilever Pakistan organization, they should follow ethics for both individuals and public. As a production firm it should follow social responsibility. Where, it should ensure that they don't make harmful process maintaining against environment. Even it has environment effecting wastages or garbage it should recycle or dispose without harmful. They operate several units. They bring changes in the organization. But change arrive, they have responsibility to job secure of employees. Also there are pressures in management level. Key element of pressure is dissatisfaction of clients. It may cause to lower revenue and higher cost for the firm. Even if they face increased cost they should follow customer loyalty and pay tax to government properly. Those are key roles in ethical background of Unilever. There customer dissatisfaction has been increasing with its product/ service. As a business organization it should satisfy its clients' needs.
Cultural background of Unilever
The Unilever has a culture which is participative management style in the organization. But each unit has general manager. Their management structure doesn't follow functional structure. Here a professional team working going on. Still they found poor staff morale. In order to find solution, they should identify the reasons for poor staff morale.
Organizational environment consist of all factors that in one way or another are affected by the organizational decision.
Unilever Organizational environment refers to the forces that can make an impact. Forces made up opportunities and threats. Organizations dose not exist in isolation. It works with the overall environment. These can be divided into two main parts as, Internal Environment and External Environment
Organizations internal environment refers to the elements within the organization. Internally, an organization can be viewed as a resource conversion machine that takes inputs (labour, money, materials and equipment) from the external environment (i.e., the outside world), converts them into useful products, goods, and services, and makes them available to customers as outputs.
Management- A manager is someone skilled in knowing how to analyze and improve the ability of an organization to survive and grow in a complex and changing world. This means that managers have a set of tools that enable them to grasp the complexity of the organization's environment. A management system describes the organization and the set of significant interacting institutions and forces in the organization's complex and rapidly changing environment that affect its ability to serve its customers. The firm must continuously monitor and adapt to the environment if it is to survive and prosper. Disturbances in the environment may spell profound threats or new opportunities for the firm. The successful firm will identify, appraise, and respond to the various opportunities and threats in its environment.
Share holders-they are the owners of an organization. A shareholder or stockholder is an individual or company (including a corporation) that legally owns one or more shares of stock in a joint stock company. A company's shareholders collectively own that company They invests there recourses to an organization in order to obtain a profit.
It consists of all the outside institutions and forces that have an actual or potential interest or impact on the organization's ability to achieve its objectives:
Competitive-these are the other organizations witch operate in the same field. They share the same customer group of the organizations. They can make an effect on the organization. There price, quality, distribution and other factors affect the overall organizational goals.
Technological- is a broad concept. After the industrial revolution technology became an important factor for organizations. Technology brought the effectiveness to the industries. In modern technology is used also for management to bring the better organizational environment.
Political-can make the worst or the best effect to an organization. The political situations or the system of a country can make the organizations future. Better policies make a good business environment for any organization. Legal-every organization and there resources, including the employees have to act under the legal factor. No one can go beyond the law of a country. Witch ever an organization dose they have to scope with the legal factors.
The Unilever has been introducing a computer technology. But it is a slow progress. Then they should consult with computer experts. If they give on the job training to employees, it would be useful for the organization.. The business needs to survive and retain in the business as a leader with increasing competition for provision of products and services. The company needs to enhance their computer system in way that the stakeholders get the maximum benefit of it. It is essential to make sure that the consumer is at the forefront and offered the best product and service through the enhanced technology.
Here they introducing computer technology for minimise the costs for production. On the other hand they intend to redundancy the employees' volume. Where, it causes to poor staff morale with the change of technology and minimum job secure to employees.
As a business organization , the Unilever Pakistan should identify the customer needs and wants before supply its products. If they did it well the customer will satisfy and retain with them. But here the customer dissatisfaction are being increased in this case. So they need greater strategy to satisfy the customer.
2.2 Develop appropriate vision and mission statements
A vision statement gives a broad, aspiration image of the future that an organization is aiming to achieve. Vision statement is more about the organizational values rather than bottom line measures. Whereas a mission statement is a brief summary of a couple of sentences that provides a bird eye view of the organizational background and purpose of existence.
To develop a vision and mission statement of the Unilever Pakistan first of all I investigated into the idea that will make Unilever stand out from its competitors, then I indentified the key measures of the success, combined these ideas and measures into a tangible and measurable goal and last of all refined the words until the concise and precise statements were made including all the elements of its definition.
UNILEVER'S VISION STATEMENT;
''Validity is at the heart of everything we do. It's in our brands, our people and our approach to business''.
UNILEVER'S MISSION STATEMENT;
''Unilever's products touch the lives of over 2 billion people everyday whether that's through feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack''.
2.3 Agree appropriate objectives and develop measures for evaluation
Objectives are those destinations which ultimately satisfies corporate desires. Different organizations have different objectives, before starting any business, its objectives are defined. Though like many other profit making companies, Unilever Pakistan's ultimate objective is profit maximization. Apart from profit maximization, business may have various other objectives. Before defining objectives, the strategic management must make sure that objectives are not virtually impossible and mutually agreed upon. The objectives which are focused on results consistent, specific, measurable, related to time and attainable are usually mutually agreed upon. To attain such goals different sets of management strategies are implemented. It is less or more true that objectives of management strategy are same as that of the organization as a whole. Following is a brief summary of objectives by Unilever Pakistan;
Understand customers, competition and industry, and meet specific customer requirements.
Improve product / service / channel / customer congruency.
Grow the company by reaching new markets through new channel partners.
Develop company values and culture.
Hire the best people.
Some management strategies might succeed better than others. It depends upon the three key success criteria which can be used to evaluate the viability of strategic options. These three key elements of evaluating the strategic options are, suitability, acceptability and feasibility.
Suitability; is concerned with whether a strategy/objectives address the key issues that have been identified in understanding the strategic position of the organization. In particular this requires an assessment of the extent to which any strategic option would wit with key drivers and expected changes in the environment, exploit strategic capabilities and be appropriate in the context of stakeholder expectations and influence. There are number of tools that can be used to access the suitability of strategic options, i-e: TOWS matrix, relative suitability of options that matters, ranking strategic options, decision tree and scenarios etc.
Acceptability; It is concerned with the expected performance outcomes of a strategy. These can be of three types; returns, risk and stake holders reactions. Returns are the benefits which stake holders are expected to receive from the strategy which may be calculated by financial analysis and cost benefit analysis etc. Risk can be accessed similarly by conducting sensitivity analysis, financial ratios, share holders value analysis and reactions etc.
Feasibility; this is concerned with whether an organization has the resources and competence to deliver a strategy. A number of approaches can be used to understand feasibility; i-e: financial feasibility, resource deployment etc.
Task 3: Plan for the implementation of the strategy
3.1 Develop outline timetable for implementation
Following is the time table for the strategic planning implementation for the Unilever Pakistan stating the starting and finishing date;
Development of Guidance and Pro Forma for Impact Assessment Initial Screening for the strategic change.
7 December 2010
Verbal report to board of directors to outline the proposals for the way forward and to obtain their views regarding the proposed strategy.
8 December 2010
8 December 2010
Update and brief on the agreed proposals
5 January 2011
5 January 2011
Briefing Sessions for Heads of Service and regional Managers.
14 January 2011
14 January 2011
Carry out implementing the agreed strategy and prioritisation for all corporate and task specific functions, policies and procedures.
17 January 2011
4 April 2011
Reviewing and benchmarking the desired and actual status of strategy implementation.
5 April 2011
13 April 2011
Completion of strategy implementation.
30 April 2011
30 April 2011
1 May 2011
3 May 2011
Monitor & Review
3 May 2011
31 March 2012
1 April 2012
15 April 2012
3.2 Create appropriate dissemination processes to gain commitment;
For the organizational development, Unilever Pakistan should often undergo significant change at various points in their development. Change management entails thoughtful planning and sensitive implementation, and all the above. Consultation with involvement of people affected by the changes. If the firm force change on people normally problems arise. Change must be realistic, achievable and measurable. These aspects are especially relevant to managing personal change
3.3 Set up monitoring and evaluation systems
Monitoring and evaluating the planning activities and status of implementation of the plan is -- for many organizations -- as important as identifying strategic issues and goals. One advantage of monitoring and evaluation is to ensure that the organization is following the direction established during strategic planning. I would like to suggest Henry Mintzberg's 'six basic monitoring & evaluation mechanisms' for Unilever Pakistan. According to this model the monitoring and evaluation of any strategic plan can be conducted by following the six formal basis steps that ultimately makes sure that objectives are being oriented and it has an ability to identify any deviation from the desired outcome. Evaluation can be achieved by standardization in effect, automatically, by virtue of standards that predetermine what people do and so ensure that their work is coordinated.
DIRECT SUPERVISION; direct supervision in which one person coordinates by giving orders to others, tends to come into play after a certain number of people must work together. Thus, fifteen people in a war canoe cannot coordinate by mutual adjustment; they need a leader who, by virtue of instructions, coordinates their work, much as a football team requires a quarterback to call the plays
STANDARDIZATION OF WORK PROCESS; it means the specification that is, the programming of the content of the work directly, the procedures to be followed, as in the case of the assembly instructions that come with many children toys.
STANDARDIZATION OF OUTPUTS; it means not of what is to be done but of its results. In that way, the interfaces between jobs is predetermined, as when a machinist is told to drill holes in a certain place on a fender so that they will fit the bolts being welded by someone else, or a division manager is told to achieve a sales growth of 10% so that the corporation can meet some overall sales target. Again, such standards generally emanate from the analysts.
STANDARDIZATION OF SKILLS; as well as knowledge, is another, though looser way to achieve coordination. Here, it is the worker rather than the work or the outputs that is standardized. He or she is taught a body of knowledge and a set of skills which are subsequently applied to the work. Such standardization typically takes place outside the organization for example, in a professional school of university before the worker takes his or her first job. In erect, the standards do not come from the analyst; they are internalized by the operator as inputs to the job he or she takes. Coordination is then achieved by virtue of various operations having learned what to expect of each other. When an anesthetist and a surgeon meet in the operating room to remove an appendix, they need hardly communicate; each knows exactly what the other will do and can coordinate accordingly.
STANDARDIZATION OF NORMS; means that the workers share a common set of beliefs and can achieve coordination based on it. For example, if every member of a religious order shares a belief in the importance of attracting converts, then all will work together to achieve this aim.
MUTUAL ADJUSTMENT; it achieves coordination of work by the simple process of informal communication. The people who do the work interact with one another to coordinate, much as two canoeists in the rapids adjust to one another's actions. Mutual adjustment is obviously used in the simplest of organizations. It is the most obvious way to coordinate. But paradoxically, it is also used in the most complex, because it is the only means that can be relied upon under extremely difficult circumstances, such as trying to figure out how to put a man on the moon for the first time.