Restructuring P&G

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1. According to Jager, “Organization 2005 marks the most dramatic change to P&G’s structure, work processes and cultures in the history of the company“. Describe what were the changes that the program intented to bring about.? The program was developed with the aim of increasing global earnings, reducing costs and assuring sustainability through the following factors: - Changing culture: P&G was a traditional and conservative company with a Top Down structure and a manager mentality, at the same time P&G showed resistance to change and innovations. To improve the focus of the company Jager realized that the only way to be successful with his “Organization 2005” was changing the whole corporate culture by: • Developing leadership, changing from a manager mentality to a leadership one, where employees are looking for challenges, innovations, changes, to go even further the goals and to motivate others. • Changing the antitrust and penalties police, by offering an atmosphere of trust on delivered work, where employees have more freedom and are empowered to create, take decisions and innovate. • Creating an environment oriented to innovation, new creations, new product development, stretch and greater speed. • Creating an informal work environment that facilitated knowledge sharing among employees. - Organization structure: In the organization structure Jager was looking for efficiency and effectiveness, to reduce costs, eliminate bureaucracy, boost sales and profits, as to operate globally but being global and local at the same time, one of the most important points to care about in a global organization to be able to succeed, some of the main changes in the structure are: • Business Units reorganization, from four business units based on geographic regions to five global business units (GBU) based

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