Organizational Choice At Hindustan Lever Essay

1543 words - 6 pages

Analysis of the case.This case is all about the problem faced by Hindustan lever regarding decentralization and reorganization. This case also focuses on the role that outside consultant plays in making management decision in decentralization\reorganization.Hindustan lever is a large FMCG Company, with a huge range of products, in 1962 due to the increase in competition, the growing pressure from the government, changing market trends the company began to consider decentralization as a way of improving the organization's ability to respond to these things.To find a solution they thought of reorganization by combining the three marketing Divisions i.e. soaps, toilet preparations and foods into one.Due to the government control and market fluctuation they wanted to talk to only one person with regards to their three marketing divisions.So a committee was formed to study the problem of reorganization and to recommend whether the three marketing divisions should be integrated or not. The committee consisted of the marketing personnel from the same department. The committee recommended against integration.Due to such recommendations the board members of HLL decided to refer the problem to the organization division of unilever.So Mr. W G Beaton was appointed as a consultant to advice on the sort of technical marketing and services organizations HLL should be working towards over the next few years.All the information regarding the organization structure, roles and responsibilities of each employee were provided to him. A short history of organizational development was provided, much more information was provided related to market; influence of govt, pricing policies and many more, which was asked by him.When Mr. Beaton came to India he had a long discussion with the chairman of HLL and with the board members and then he met individually many members of the organization.After going through the provided information Mr. Beaton suggested new structure where in he said that no functions should be reported to the chairman and to the vice-chairman.He also suggested integration of marketing department. He had recommended a board of management below the vice chairman as a distinct board of directors.The board accepted Mr. Beaton recommendations but felt there is no need for a formal board of management.In December 1965 the Marketing Director got retire form India and a new Marketing Director had joined the company so Mr. Beaton's Recommendations were kept aside so that the new Marketing director can view them before implementing.The new Marketing director was not familiarize with the Indian working culture, so he took some time in analyzing the salutation, he traveled all over India met many marketing personnel and gave his recommendations by suggesting some modifications is Mr. Beatons Ideas. These recommendations were accepted and were implemented.Questions1. What are the advantages and disadvantages of using internal and externalConsultants or resources...

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