Eli Lilly Company/Organizational Structure
Eli Lilly and Company Organizational Structure
Eli Lilly and Company has been in the pharmaceutical business for a long time and has undergone a variety of changes and re-organizations in its management style. This had to happen for the company to grow and expand from a small company in Indiana, to the global Fortune 500 Company it is today!
Starting out, Eli Lilly was clearly a bureaucracy, being a small company and not having many employees. As it grew, its management had to change. In the early 1900’s, it became a more functional organization or U-form structure, where the scientific management concepts were introduced and globalization began.
In looking at the current management structure, I still feel Lilly is a functional design but highly differentiated, due to its massive globalization. Lilly has research and development facilities in Austria, Belgium, Canada, England, Germany, Japan, Singapore, Spain and the U.S. It conducts clinical research in more than 60 countries. Lilly also has manufacturing facilities in Brazil, China, Egypt, England, Germany, Ireland, Italy, Japan, Korea, Mexico, Pakistan, Puerto Rico, Spain and the U.S. The second branch of this corporation, Elanco, an animal healthcare business, markets products worldwide for cattle, chickens and pigs. So, in addition to the functional structure and job departmentalization, we also see location departmentalization as well.
Recently, there is an additional form of management emerging called a Governance structure. Eli Lilly has implemented a way of keeping the CEO, senior executives and directors on the straight and narrow path. In this time of questionable ethics and criminal behavior in the top most strata of corporations, Eli Lilly has created a board of directors, elected by the shareholders, to oversee and observe the outcome of the company’s management as a means of protecting the interests of all the many people involved in the corporation, from the shareholders to patients, doctors
Eli Lilly and Company has been in the pharmaceutical business for a long time and has undergone a variety of changes and re-organizations in its management style. This had to happen for the company to grow and expand from a small company in Indiana, to the global Fortune 500 Company it is today!
Starting out, Eli Lilly was clearly a bureaucracy, being a small company and not having many employees. As it grew, its management had to change. In the early 1900’s, it became a more functional organization or U-form structure, where the scientific management concepts were introduced and globalization began.
In looking at the current management structure, I still feel Lilly is a functional design but highly differentiated, due to its massive globalization. Lilly has research and development facilities in Austria, Belgium, Canada, England, Germany, Japan, Singapore, Spain and the U.S. It conducts clinical research in more than 60 countries. Lilly also has manufacturing facilities in Brazil, China, Egypt, England, Germany, Ireland, Italy, Japan, Korea, Mexico, Pakistan, Puerto Rico, Spain and the U.S. The second branch of this corporation, Elanco, an animal healthcare business, markets products worldwide for cattle, chickens and pigs. So, in addition to the functional structure and job departmentalization, we also see location departmentalization as well.
Recently, there is an additional form of management emerging called a Governance structure. Eli Lilly has implemented a way of keeping the CEO, senior executives and directors on the straight and narrow path. In this time of questionable ethics and criminal behavior in the top most strata of corporations, Eli Lilly has created a board of directors, elected by the shareholders, to oversee and observe the outcome of the company’s management as a means of protecting the interests of all the many people involved in the corporation, from the shareholders to patients, doctors