Discuss about the Organization Structure of the Nestle Company.
Nestle Australia is a great supplier of food and drink products. It consist a wide range of dairy milk products, Chocolates, Coffees and also many flavors of noodles. Instead of this it gives variety of hot and cold drinks, Ice cream and also a wide of confectionary and bakery items. Also to many cafes, hotels and clubs the catering services are provided by Nestle. Nestle brand include Nescafe, kit- Kat, Nestea and crunch. It also gives pet food such as Purina. There is joint venture a company has launched in more than 80 countries. In starting the Henri nestles developed milk for the babies who are not able drink and to feed from their mothers, after five years the product was sold around the world as a food for old people and for babies (Larson & Gobeli, 2008).The Australian market became the second largest market for nestle in 1906 and served many of the sales agent and retailers. When the new product named as MILO was introduced in 1934 that was the biggest achievement in Australian market. Now the product is available in more than 30 countries with the very high sale of more than half billion Australian dollar. The nestle head office is in Sydney which has became the head -quarter for Oceania region which consist of Australia, New Zealand. It is a renowned company of food and drinks. It also deals with nutrition, health and wellness organization in countries (Nestle, 2013).
Organizational structure tells and discuss about task allocation, Coordination and supervision to achieve or to attain organizational aims. By this the individual can access and see their organization and its environment. Nestle organizational chart tells about the relations between people within an organization. There are various types of organizational charts which include hierarchical, Matrix and Flat. The organization is prepared according to the structure of matrix (Sinha, 2009). The company gives permission to subordinate branches for independence. The decisions are made on the headquarter level and the day to day operations are performed and managed by the subordinates to complete it (Colquitt, Lepine & Wesson, 2011). Nestle has achieved its expansion from the small village operation to world’s best leading food company. It has adjusted itself in the environment without losing the values which are essential for long term survival. Matrix is a structure in which reporting relationships are fixed up as a grid or matrix instead of traditional hierarchy. It can manage more than one reporting line but used as managing the cross functional (Mee, 2014).
Nestle company follows the formal structure in the organization. The management of nestle is divided into 3 types top level management, Middle level management and low level management.
In top level of management:
In this it consists of board of directors, chief executive director, Chief technology officer, Chief marketing officer, and Chief operation officer. This level of management is the final stage of authority. More time is consumed in coordinating and planning functions. The top management in nestle company gives broad policies of enterprise and gives the objective. They also have a strong accountability, confidence and are risk bearer. The direction and guidance is also given by them to the subordinates (Wooldridge & Floyd, 2013).The activities are coordinated and controlled by these departments. The directors are also responsible towards the stockholders for the performance. This level of management also maintains a link or a contact with the outside world for the expansion of the business. The budgets and schedule are maintained and prepared by this level of management. The high amount of stress is involved in their work but they motivate other to perform their task in effective and efficient manner. They create the plans for the development without analyzing the core processes of the company (Hofstede, 2011).
Middle level management:
The branch managers and departmental managers of nestle are involved in this level. More time is consumed on directional and organizational functions. The managers of this level have the responsibility to complete and make plans for the units of the organization. Managers are also involved in giving training to the lower level management. They give directions to the subordinates to implement the plans. Middle level managers provide motivation to their subordinate who enhances their skills and develop confidence in them. The managers also participate in training and employment of lower level management. Examples of this level can be general managers, department managers (Cowherd & Levine, 2012).
Low level management:
This level is supervisory level of management. Nestle involves supervisors and offices in this level. The responsibility of these officers is they assign the task to different workers. They give guidance to workers in day to day activities. Complaints of the workers are solved by them and also they maintain good relations with everyone. They focus mainly on completing the task on time and try to do the task as instructed by the middle level management. The managers keep check on the quality and quantity of production. They initiate the plans which are given by the middle level management team. Examples can be section leads, foremen (Ardichvili & Kuchinke, 2002).
Nestle believes that size of the company matters less as compared to behavior and also trust of the consumers is earned in long period of time by fulfilling their promises on time. The behavior can be summarized by the lines which are: “Good food, Good life”. This line gives a summary of the business aspiration. The Nestle model is achieving its objectives today and ensuring to achieve success in future. The organization structure plays an important role in the organization. Proper management can only take place when there is proper communication and relations between the employees. The matrix plays a major role in the organization. The organization is managed by the matrix organizational structure. Nestle focuses on creating and setting strategies in the market which enhances the level of performance of the company (Simons, 2008).
The organization structure of the company should have a flexible communication. Poor communication causes the root of various problems. So it should be there in the organization so that each and every employee can perform effectively and efficiently and also by this the communication barriers do not take place in the organization. There should be proper direction of control by every level of management because by this it motivates employees as well as give efficient results and helps in achieving the objective of the company. Also, Nestle should update the technology and also there should be full utilization of the resources and also of manual operators which will give enhancement of efficiency and increases the dependency of supply chain systems. Nestle can also use manual and automation system by which service and sales can be managed effectively and efficiently. It can also purchase the inventories from other places from other region instead of finding many suppliers. Company should mainly focus on the expanding the business or the company and also customer satisfaction is a main element which should be considered by the company. It helps in expansion of the business and creating good environment in the organization for both the employees and the customer. Nestle should make the plans and procedures in such a way that organizational objectives can be achieved easily.
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