Table of Contents
Introduction
Del Monte Foods is a food distribution and production company based in the United States of America. Its headquarters are situated in California. It was founded as early as 1886 due to the increased production of fruits and vegetables in California. Over the years, the company has grown both in production and size. Its management likewise has grown dynamically, shifting ruling from one owner to another. Therefore, it follows that the organizational structure that the company adopts has evolved (Managementparadise.com, 2011).
Currently, Del Monte Foods is a multinational company with markets in the USA and South America. It adopts a matrix organizational structure. Matrix organizational structure has multiple levels of communication; therefore, an employee can cooperate with more than one manager to implement necessary projects, unlike the traditional functional or divisional organizational structure. This structure confers flexibility in the organization. The tasks can be easily organized without the trouble of managing the flow of commands. The matrix structure has been recently adopted by the company and is undoubtedly responsible for its high ranking in the industry (Managementparadise.com, 2011).
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Organizational Structure
This paper will analyze the organizational structure of the company. As of this date, the organizational structure consists of a Chief Executive Officer in line with the Board of Directors. The board is chaired by a president Neil Harrison, whose predecessor is Richard Woldorf (Managementparadise.com, 2011).
The CEO is in charge of the work of various managers. The Chief Operations Officer is responsible for the day to day activities of the organization. The Chief Financial Officer is in charge of the company’s financial flow, the accountants and all those who are obliged to report to him. The Sales Manager has the responsibility to ensure that the sales activities run smoothly, and the sales targets are met if not exceeded. The Sales Manager has created various channels to sale company’s products on the target markets. He is also in charge of all the sales persons and those who operate and work under this department. The Human Resource Manager is responsible for employee matters, hiring, firing, training, employee relations among other functions. The Legal & Secretary Manager is in charge of the legal aspects of the firm. He ensures that the company runs its activities according to the law and controls any legal charges that are filed against the corporation. The Pet Products Manager is in charge of matters pertaining the production of Del Monte’s pet products. The Strategy Manager is in charge of gathering information and compiling it in a manner that will enable the company to know the way forward. His aim is to find out what would give the company competitive edge over other competitors. The Brands Manager is in charge of the company’s image. He is responsible for marketing Del Monte’s products to the various target markets, establishing new markets, selling Del Monte as a unique brand, and implementing corporate social responsibility (Managementparadise.com, 2011).
The organization is a registered corporation that welcomes investors. Like many American company, the board of directors is less involved in the day to day running of the organization. Most of this work is left to the CEO of the company to oversee, control, and delegates the work to the various managers with functional tasks (Worldbusinessculture.com, 2012).
Communication within the organization is vertical. This gives employees a sense of job security, a form of motivation. The relationship between the employer and the employee resembles a transaction with the employee performing their given tasks. This has been motivated by the communication that is now technology based (Worldbusinessculture.com, 2012).
Such an organizational structure allows for the organization to be aligned in terms of business structure as well as ensuring that the rigidity that comes with functional organizational structures is mitigated. In the latter setting, the employees are expected to report to a specific manager. However, the communication is strained in case of needs to use interdepartmental communication. In addition, there is also the risk of running multiple tasks such as IT in all departments while there could be a single IT person handling the various IT cases that could arise in any department.
Conclusion
The traditional functional, divisional, and product organizational structures have their advantages, which cannot be assumed. For instance, the functional one ensures that all business processes are conducted and controlled by professionals. The company would not hire a sales manager who does not have enough experience to know how the markets operate. The product structure ensures that each product is given enough attention. However, in the case of Del Monte that has a large product assortment, having a department for every product would mean that the company hires too many employees, incurring costs that could be avoided. Hence the matrix structure can allow the corporation to run projects more successfully (Managementparadise.com, 2011).