Procter and Gamble - Assignment Example

Introduction Organization analysis is the process of reviewing development, personnel, work environment, interaction culture and structural context of business or social institutions. Increased social and cultural complexity due to globalization has resulted to the emergence of varied organization and demand to identify problems for the purpose of an effective solution. Detailed analysis is a useful way for management to gather relevant information for strategic planning and change implementation. Globalization means increased competitiveness among business entities both in the local and international market. There is growing trend to shift from mechanical operation to embrace creativity and quality productions for sustainable growth in market share control. Organizational restructuring to meet these demands requires intensive organization analysis. Burrell and Morgan (1979) developed a matrix scheme to help understand theories and approaches applied by sociological researchers based on four major paradigms. An overview of the sociological paradigm is provided herein and applicability in organizational analysis. This essay is an analysis of Procter and Gamble (P&G) from an interpretive perspective. Interpretive paradigm focuses on rational thinking inducing rational actions for by individual members or elements in an organization. Further P&G organizational context is analyzed objectively highlighting deliberate actions to sustain its competitiveness without compromising quality. Sociological paradigm and organizational analysis The matrix formula suggested by Burrell and Morgan demonstrates interaction by any organization with its internal and external environment. The matrix is summarized into four quadrants representing the four paradigms: radical humanistic, radical structuralist, interpretive and functionalist. All four paradigms are characterized by the researchers approach on two main dimensions: regulation/change and subjective/objective (Burrell & Morgan, 1979). Radical humanist believes that organizations are subject to macro regulation by sociological environment leading to disconnect and conflict. Conflict resolution is mainly achieved through subjective measures targeting individual members/elements of the organization. Radical structuralist researcher analyzes organizations by critical analysis of structural systems which could be cause of stress on operations. To release pressures an overhaul of the structural setups would transform the organization (Burrell & Morgan, 1979). A functionalist researcher believes that the society constitutes of organizations that share civic values on which they base their status quo. Change would be realized by implementing minimal structural adjustment to fit within prevailing external context (Burrell & Morgan, 1979). Interpretive researchers hold that reality is a construct of individuals based on how they interpret their environment. Individual elements and members of an organization influence its competitiveness. Change can be realized as a result of individual reframing of events and other factors in the organizational context. An organizational analysis from this perspective investigates input by individual departments, management decisions, staff members and performance of individual products (Burrell & Morgan, 1979). Its subjective nature allows for creative ideas in crisis resolution and implementing change in organizations. An appreciation of unique strength and weaknesses among members of staff provides insight in responsibility allocations. In market competitiveness interpretive research realize that various regions are defined by unique characteristics which marketers should be aware. In order to penetrate such regions evaluation of specific marketing strategies and their relevance should be conducted by marketers on the basis of the product being handled. This is based on the interpretive view that events are better understood through active observation of on-going processes and better comprehension of individual behavior. The ontological assumption is that reality is a product of individual consciousness giving the individual capacity to determine their situational reality through critical and creative thinking. Rational decisions to act on the specific organization issues changes the context for the making it favorable for competitive operation (Burrell & Morgan, 1979). Empirical information provides epistemological basis for situational analysis differentiating assumptions from reality. Interpretive paradigm assumes that human nature should be on the basis of voluntarism rather that determinism that allows the environment to dictate performance. Each of this assumption influences methodological approach focusing on how individuals create, modify and interpret their surrounding holding relativistic view. Every aspect of the surrounding, which in this case refers to market competitiveness and production, remains vulnerable to modification to suit the organization (Burrell & Morgan, 1979). Methodologies of interpretive paradigm Reality is treated as a nominal construction relative to social interaction defined by names, concepts and labels attached. These factors can subject to modification depending on current needs (Burrell & Morgan, 1979). Organizations therefore have to remain flexible to change in order to cope with changing trends and demands. For instance, with changes in the economic environment due to the current depression organizations should implement production changes to supply affordable products without compromising quality. Any organization that remains rigid to change is likely to lose market for its expensive products despite them being of high quality. The general shift from print media to electronic media for advertising reflects organization flexibility to cope with technological changes that impact on social interaction. Positivist approach seeks to explain and predict current and future behavior through analysis of individual interaction patterns (Burrell & Morgan, 1979). Market hypothesis are developed and tested to generate knowledge through a cumulative process. For instance organizations that intend to remain visible in the market have to research on consumer behavior with the objective of identifying factors that influence consumer trends. Influence by social media, cohort interaction and celebrities on consumer socialization are hypothesis based on detailed analysis of human interactions and their impact on consumer behavior. Ideographic inquiry is implemented through active exploration into real events rather than overreliance on scientific methods (Burrell & Morgan, 1979). Integration of behavioral aspects in business management is developed from qualitative research. Some aspects which are difficult to quantify such as consumer satisfaction, employee motivation, loyalty are integrated in making organization decisions and implementing change. Organization analysis of Procter and Gamble (P&G) Company Ltd Type of organization P&G is a multinational company based in America specializing n production of consumer goods in six main categories: beauty care, food and beverages, laundry and cleaning, paper goods, feminine care and health care products (Devault, 2012). Started in 1837, the company has grown tremendously despite notable changes in consumer trends and competition in the international market (Degen, 2011). This organization is an ideal demonstration of interpretive resilience to changes by high level flexibility adopting to changes and remaining competitive throughout its existence. Organizational culture and structure P&G operates global business units which constituted the global company estimated to be worth above $83 billion (Devault, 2012). These GBU are responsible for its more than 300 brands trade in 160 different countries through franchised operation (Degen, 2011). Considerable percentage of revenue for the company is generated overseas indicating its competitive position. Since it is a publicly owned company through shareholders the executive management of the company is through a board of directors. The company has a total of 52 executives in charge of various product departments (Degen, 2011). The franchised branches operate independently with consultation with the headquarters and other sections that influence their operations (Degen, 2011). These units are in charge of interaction with both consumers and support retailers to gather feedback information about the market (Acito & Lim, 2006). This information is essential since it’s integrated in the overall strategic plan that works in each country. Consumer preferences are subject to cultural influence in the immediate region. Multinational companies have to modify their product packaging and advertisement to appeal to local consumers. For instance, Pamper diaper is brand of P&G marketed globally (Degen, 2011). The advert placed for U.S market varies from that used in Asian market due to the difference in culture so the two regions. While as US has liberal culture that allows free expression Islamic culture in Asian countries is conservative to issue about sanitation hence requiring application of culturally acceptable adverts. This indicates flexibility to embrace difference as an opportunity rather than an obstacle (Burrell & Morgan, 1979). Modification to strategy often calls for changes in organizational structure. Effective structures provide the stability required by an organization to successfully implement its strategies. The development of P&G is based on the strategy of international market which is essential for the company effective competitiveness in contemporary business environment (Degen, 2011). The effects of globalization include opening new market place while increasing competition becomes a major fiscal barrier to any organization (Devault, 2012). P&G product diversification strategy is a creative method to penetrate new market by production of items customized to consumer demand (Burrell & Morgan, 1979). Marketing strategies are based on specialized knowledge of local consumers (Acito & Lim, 2006). Collaboration with local companies ensures that the company saves production cost through local procurement of materials and personnel. Capital that would have been spent in shipment and outsourcing of services from other branches is reduced. Local procurement enhances maintenance of long-term relationships with both consumers and retailers earning their loyalty. An effective communication system between GBUs enhances effective information sharing in regard to market place changes in various regions (Devault, 2012). Market development organizations (MDO) conduct market analysis that informs product improvement to handle rising competition and sustain consumer satisfaction. Free-flowing of information ensures coordination within an organization with the capacity of P&G due to its geographical expansiveness (Degen, 2011). The organization has embraced horizontal communication structure instead of vertical with most of the content created around processes rather than division functions. The hierarchy is considerably flattened with minimal top managers handling finance and human resource functions, and decision making authority is decentralized to the local branch management. Embracing electronic media for advertisement such as social interaction sites has reduced the time taken to introduce a new product in the market. For instance sites such as LinkedIn, Facebook, Google+ and Twitter allow users greater control of the content they consume and geographical barriers are eliminated. Organizations such as P&G and its branches utilize this avenue to collect consumer feedback and also distribute information concerning new products (Acito & Lim, 2006). Advertisement cost is reduced through direct interaction with consumers who suggest modification or improvements of products. Maintaining this close relationship earns the organization consumer loyalty despite high competition. In order to maximize efficiency P&G applies lean corporate functions that ensure on-going functional innovation and capability improvement (Devault, 2012). Global business services (GBS) are shared services which include governance which is done through local branches (Degen, 2011). The human resource base consist of 138000 employees recruited on the basis of company culture to embrace diversity and creating an environment that enhances individual talents regardless personal characteristics and differences. Team building efforts are emphasized through increased employee interaction and collaboration (Azmy, 2012). Self directed teams are treated as fundamental work units in an interpretive organization. Boundaries between departmental functions are eliminated through the creation of teams with membership from several function areas. Ethical conduct within organizational policies and established culture is expected while executives take the role of guiding their organization through efficiency and performance (Burrell & Morgan, 1979). P&G innovativeness stretches beyond product creation into management and marketing. The company removed most of the conservative overlaps that exist in large corporate. The result is speeding up of decision making process such decisions based on early placement of new products in the market (Acito & Lim, 2006). For instance, the company organized to revitalize its marketing strategy during the 2012 London Olympics and Paralympics P&G announced its 10 year partnership with the Olympic committee signed in July 2010 (Degen, 2011).. The company seized the global event as a platform to market its products with successful athletes modeled in the adverts. Some of the athletes contracted for this marketing idea included: Tyson Gay for Gillette, Alicia Sacramine for beauty brands and Michael Phelps for Head and Shoulders among others. The Areal brand launched a campaign aligned to the sport season portraying Olympians as proud custodians of the colors of the national flags (Devault, 2012). Due to this aggressive marketing the company recorded more than $1.5Million in shares sales despite difficult economic times (Degen, 2011). This is a clear demonstration of creativity and rational action with the intent of modifying external business context. Management structure at P&G Company can be described as being multi-divisional with each business component being managed through its individual division which has a unique name. Each unit is the profit-and-loss center since these variables are calculated at the level of each division (Devault, 2012). This type of management structure is monitoring and bonding method for the organization. Board of directors performs macro monitoring functions. Senior executive, corporate staff managers, divisional general managers and liaison managers perform bonding function that sustains the company consistency (Devault, 2012). Human resource management within P&G ensures optimal employee motivation through allowing room for creative innovation and interactive team work. Exclusive internal advancement promotes employee loyalty while sustaining retention of talents and professional skills (Burrell & Morgan, 1979).. This translates to lower recruitment cost with company maintaining appraisal system that recognizance outstanding performance by employees at all levels. Horizontal and vertical promotions motivate employees by increasing job satisfaction index. Personnel retention implies higher corporate ethics in the conduct of all employee since they all started at level1 rising through the scale. The managers embrace the hands-on approach to leadership owing to their conversance to with activities at different points in the production process. Trust between the employee and management is an essential factor to productivity. Implications Due to its large size P&G management is face with the challenges of complexity in managing multinational business organization consistently. There has been commendable movement towards changing the organization bureaucracy increasing flexibility through integration of technological management and communication tools. Increased online marketing through emergent social media and use of internet communication for teleconferencing between divisions is an example of modernization of the organization culture and structure. P&G success can be attributed to its increased reliance on consumer research, advertising and market leader distribution techniques. These factors influence the organization context in terms of geographical expansiveness, sales capacity, personnel competence and business profitability. Reality is defined by activities conducted by the organization through its individual divisions. Defining workloads in terms of manageable projects allocated to effective teams ensures both macro and micro management of the organization. While executive mangers focus on making long-term goals teams and product division simplify these goals in short-term objectives realizable within a limited time. Personnel commitment to service delivery is reflected in sustainable performance reinforcing achievement of overall strategic plans both at branch level and for the company at large. Positivism is demonstrated in P&G detailed analysis of consumer research finding through direct interaction with consumers and retailers (Devault, 2012). This provides insight expected product modification through speedy feedback. For instance consumer complaint on dislike of scented Always sanitary products 2011 received timely communication with relevant branches leading to withdrawal of product replacing it with mild alternative (Degen, 2011). Interpersonal interactions create patterns in the market trends requiring close monitoring in predicting outcome and future behaviour. These trends may also form the basis to formulate hypothesis leading to identification of opportunities presented by gaps in supply or production. Ideographic exploration through consumer research provides up-to-date information of any changes in the market such as entry of supplementary product, consumer interest in your product compared to competition items, changes in need subject to seasonal trends among other elements that characterize specific market (Burrell & Morgan, 1979). Decentralization of decision making power at all levels allows increased freedom for an individual employee to express their ideas and opinions without fear of consequences. Commitment is sustained through creativity which is translated into the final product designs. Individual employee’s appraisal is based on personal productivity and work performance hence motivating individual efforts to maintain quality service. Minimal mechanization of interaction allows divisions, branches, teams and individual employees to define their external environment through implementing what they deem appropriate for overall performance of the company (Azmy, 2012). This further reflects that human being interpret what they see, transform their interpretation into concrete items, label the items and make them reality. Effective communication is therefore recommended minimizing distortions. Any project or organization performs efficiently when people involved comprehend the scope of activities and maintain that understanding through effective communication of any changes on the strategic plan. Conclusion Certain limitations on the interpretive paradigm may arise due to inability to quantify human behavior such as satisfaction, motivation, loyalty among others. These parameters may only be derived indirectly through technical computation that apply scientific investigation of factors such productivity in terms of work completed within specified time, frequency of repurchase by consumer, length of service in an organization by employee (Azmy, 2012). This could be the basis for the argument that interpretive paradigm is an extension of functionalist paradigm. However distinguishing differences exist with the later emphasis on rational thing for minimal adjustment which interpretive allows form in-depth creativity and structural flexibility to change. It is possible for several paradigms to coexist within an organization, but common practice indicates the dominant approach. Similarly, business researchers may incorporate elements from several paradigms in their research method. P&G has managed to sustain growth for almost two centuries now through increased flexibility to the highly dynamic market environment (Acito & Lim, 2006). Globalization and technological development requires creativity for the organization to sustain effective competitiveness through quality work product and detailed investigation of interpersonal interaction (Acito & Lim, 2006). Decentralization of management authority reduces workload handled by organization executives allowing them to monitor performance of different branches within the context of the organization strategic plan (Degen, 2011). Implementation human resource management techniques that support the performance of the organization are recommended. 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