Nestle Organizational Design Analysis

Organizing is defined as the function of management that creates the organization’s structure. When managers develop or change the organization’s structure, they’re engaging in organization design, which is the process of making decisions about how specialized jobs should be, rules to guide employees’ behaviors, and at what level decisions are to be made (Robbins et al., 2015, p.173). There are 6 key elements in organizational design. Nestle has fulfilled all of them to be successful today.
Firstly, Nestle practices work specialization, which is dividing work activities into different job tasks. In theory, high work specialization will result in high productivity for the company as individual workers only work on their specific tasks. However, when work specialization is carried out too far, the impact of human diseconomies will
The more experience and training employees have, the larger the span of control of the manager. To achieve this, Nestle commits to consistently providing trainings to their employees. They believe that with the right support, employees can play their part in Creating Shared Value. For example, Nestle will have all employees to be trained at least once on the Nutrition Quotient (NQ) Foundation Module by 2015 (“Training and Education, 2015). By doing so, managers can supervise more employees effectively and efficiently due to the familiarity of the company gained from the trainings.
Moreover, Nestle tries to be as decentralized as possible in order to optimally respond to customer’s needs (“The Nestlé Management and Leadership Principles, 2011). Decentralization is the degree to which lower-level managers provide input or make decisions. Nestle can effectively set a shared vision and common goals as lower-level managers are able to decide independently within the company’s fundamental policies, strategic directions and operational