Research Unilever and Proctor and Gamble - Essay Example

The research aims to bring forth the comparison and contrast of the above principles between the two organizations, Unilever and Proctor and Gamble. Major similarities and differences would be brought forth between the two organizations on the two principles. Fayol’s 14 Principles of Management- Comparison and Contrasts between Unilever and Proctor and Gamble (P&G) Division of work Division or specialization of work is chosen as the first topic to compare between the two organizations. In Proctor and Gamble, division of labor has begun right from the beginning of the company.

Since the mid 1850s the company has reinforced division of labor with the initiation of moving operations to Western Row. While Proctor handled the financials and sales, Gamble supervised the factory productions. Now it is seen that the company has four major pillars which account for the main corporate structure of the organization, namely, the global business units, market development organizations, corporate functions and the global business services (P&G, 2011). The division of labour in Unilever can also be seen from the fact that labor is employed in such activities like food production, distribution, and marketing etc.

Its labor division strategies are also seen to be aimed at increasing employment and generating job opportunities. For example, in Indonesia, while the company employs 5000 individuals, an estimate of 300,000 more jobs were supported both in the fields of production as well as distribution (Pfitzer & Krishnaswamy, 2007, p.7). Despite the fact that both organizations demonstrate division of labour as a main component of their corporate structure, however, the degree or extent of specialization and division of tasks is much more in Proctor and Gamble in comparison to Unilever.

This is because it represents a highly bureaucratic structure characterized by an authority hierarchy, explicit rules, clear division of labor and impersonality (Andersen & Taylor, 2010, p.141). On the other hand, there is less labor division in Unilever, which emphasizes more on maintaining a geographical structure where the head in each geographic region is responsible for maintaining profitability in the region while the country managers are responsible for the local sales and marketing of products.

Rather it can be said that Unilever reflects both of a geographic as well as a multidivisional structure. In fact now it is even recommended that the company implements a matrix structure in order to tightly coordinate between the geographic regions and the various specializations or divisions (Hill, 2008, p.197). Centralization According to Fayol centralization is considered essential for all organizations and is said to occur as a natural consequence of the organizat