Organizational Chart

Understanding the organizational structure of a company is important. The structure of an organization outlines how tasks are allocated and coordinated within the organization. The structure can help understand the rules, roles, and responsibilities that help achieve an organization’s strategic goals (Kates & Galbraith, 2010). Nestle has a matrix organizational structure. A matrix structure is a reporting structure that is set as a grid. This kind of organization has different units with leadership structures (Galbraith, 2014). This kind of structure is appropriate for Nestle because it is a global organization that serves very large markets.

Nestle has a Board of Directors responsible for making the major global decisions affecting the company. Paul Bulcke, the Chairman, leads the board. The rest of the board has 14 members (Nestle Website, 2021). However, the day-to-day management of the company is taken care of by the Executive Beard. The executive team members manage various management roles and operations of the diverse global businesses that Nestle has developed. The Nestle Group is divided into several geographical units defined by zones. One of the zones is EMENA, consisting of Europe, the Middle East, and North African operations. Other zones include the Americas, Oceania/Asia/Sub-Saharan Africa (Nestle Website, 2021). Each of the zones has its Executive Directors. Some global Executives are responsible for major organizational roles, such as the Chief Technological Officer, Chief Financial Officer, Head of Operations, and Health of Nestle Health Science (Nestle Website, 2021). The following is a summary of the global leadership structure of Nestle.

Image 1

Image 1: Executive Organizational Chart (Source: Nestle Website, 2021)

Being a matrix structure, each of the organizational units, such as the Zonal divisions, has its own leadership structures. This kind of leadership division is important for a large company. Each of the unit leaders guides the unit to achieve their individual goals. For instance, the needs of the African and European markets are different. Therefore, each zone’s leaders have their own leadership unit to ensure the effective achievement of their goals. The following is a typical leadership structure in a regional unit.

Image 2

Image 2: Regional Sales Unit Leadership Structure

Conclusion

In conclusion, the Nestle organizational structure is well-designed to meet its needs. As a large global organization, this company needs a matrix leadership structure so that every regional unit and important tasks have an allocated leadership structure. This strategy ensures that no unit is ignored in the organizational strategy. Thus, every part of the organization can perform effectively.

References

Galbraith, J. R. (2014). Designing organizations: Strategy, structure, and process at the business unit and enterprise levels. John Wiley & Sons.

Kates, A., & Galbraith, J. R. (2010). Designing your organization: Using the STAR model to solve 5 critical design challenges. John Wiley & Sons.

Nestle Website (2021). Management. https://www.nestle.com/aboutus/management 

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Organizational Chart for Nestle (Management)

Develop and design a current organizational chart for Nestle Company.

Organizational Chart

Explain the different hierarchical levels and how it benefits the company’s operations.