The Organizational Structure in Kraft Foods Group Case Study

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Updated: Feb 29th, 2024

Structure

The organizational structure of any organization is very important in determining its success. The structure should be in line with the kind of business conducted in that organization. It is imperative to note that the organization structure is the one that influences communication within the organization. Further, communication is a fundamental factor to the success of the organization.

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It is, therefore, important to ensure an effective communication structure is set up (Luca, 2006). At Kraft Foods Group, the organizational structure is decentralized. This is a structure that encourages joint decision making and opens the door for different ideas from different people. This facilitates good decisions being made.

Innovation is also nurtured. However, decision making at Kraft Foods Group is not very decentralized, although some activities are decentralized. There are various divisions, each of which is headed by a director. The director of each division is responsible for all the division’s operations.

He also maintains its income statements and spearheads plans for its marketing strategies as well as other operations. There is a country managing director in every country. It is important to note that the organization has recently revamped its structure in order to make it less or totally non-hierarchical and more decentralized.

The country director communicates to the rest of the directors in the country. The directors, in turn, communicate with the rest of the employees in their respective divisions. There is an overall CEO who heads the group as a whole and communicates to the respective country directors.

The teams at Kraft Foods Group are responsible for all the activities that need to be carried out in the organization. The committees are involved in decision making, while the task forces carry out the day-to-day operations. The teams are divided according to individual areas of expertise. For instance, there is the leadership team that focuses on organizational leadership.

Systems

It is important for organizations to ensure that they have systems that are effective to ensure that all activities are conducted in a timely and precise manner. Effective systems ensure successful budget preparations and proper planning (Luca, 2006). In addition, good systems are effective in ensuring that employees are treated in the right manner and that performance appraisal is fair for all employees.

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In preparing the budget for Kraft Foods Group, leaders of the various divisions are involved in order to present the divisions’ financial needs for the fiscal year in question. The budgeting committee consults various departments to understand the objectives of each team. It is important to note that the organization aims to become employees’ choice and offer high quality products and services to its consumers.

Kraft Foods, therefore, has to consider these objectives in its budget preparation. The company prepares a realistic budget that is also challenging. Its aim in budget preparation is to save costs in order to re-invest the monies and increase its income base.

Planning has to involve each of the departments since the organization has several divisions. The various leaders are contacted in the planning process so that the plans for their divisions can be considered in the master plan. The objectives of each division should be in line with the overall organizational objectives.

Performance appraisal is the duty of the human resource department. The organization aims to become an employees’ choice. As a result, it has to ensure that there is an effective performance appraisal that motivates employees. The performance of employees will determine the overall organizational performance. This is evaluated using the profits made during a given financial year.

People

People make an important part of any organization. No organization can succeed without people. People keep organizations going. The employees of Kraft Foods Group are highly skilled and experienced. They are also knowledgeable and they facilitate organizational innovation. It is important to note that Kraft Foods Group is highly innovative.

This has been a crucial factor to its success in an industry that is characterized by a high level of competition. One of the secrets to the organization’s success is the depth and quality of its employees. Employees are highly qualified, thus they enhance quality production and quality services that attract customers. This helps in maintaining current customers (Garrow & Hirsh, 2008).

The company is committed to making the employees feel comfortable working for it and become the employees’ organization of choice. Kraft Foods Group has plans to invest in people. In doing so, there will be a Kraft Foods Group University.

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Employees feel motivated and have a positive attitude towards the organization and their job. This is important since it improves the general performance of the organization (Heneman, Fisher & Dixon, 2001).

Culture

Culture in an organization is another factor that plays a major role in its success. An organization should have a culture that is flexible since the business environment today is highly dynamic. An organizational culture that is rigid will facilitate the organizational failure since it will be overtaken by others in terms of competitive advantage (Luca, 2006).

The values of the company include customer safety, wellness, as well as people and diversity. The company ensures that the goods sold to customers are safe for their health. It also embraces diversity and employees of all races and ethnicities are not discriminated. These values are widely shared and employees accept them. The company is in the process of changing its culture.

However, there are some things that are expected to remain unchanged. For instance, the value to its customers and employees is not expected to change. The company respects its employees and realizes that its success has been mainly as a result of its very able employees and their dedication. The diversity of people at the company has also resulted in its success (Pryor et al. 2009).

The organization is known for its social corporate responsibility. This is a norm that is highly dominant at Kraft Foods Group. The company is highly concerned about its people and the people surrounding it. For instance, Kraft Foods is committed to fighting hunger. It also promotes good and healthy lifestyles. The company has a diverse group of people; therefore, its management style focuses on managing diversity.

Cross-cultural management is common at Kraft Foods Group. It is important to note that the company is managed by a team of experts who have the ability to oversee the daily operations and unite the team of employees, irrespective of their ethnicities. Solving of conflicts is important in ensuring a good workplace and motivating employees.

Any conflict at Kraft Foods Group is handled by the management and addressed with the deserved seriousness. Proper resolution of conflicts also helps in improving the overall performance of the organization (Pryor et al. 2009).

References

Garrow, V., & Hirsh, W. (2008). Talent management: Issues of focus and fit. Public Personnel Management, 37(4), 389-403.

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Heneman, R. L., Fisher, M. M., & Dixon, K. E. (2001). Reward and organizational systems alignment: An expert system. Compensation & Benefits Review, 33(6), 18-29.

Luca, A. M. (2006). Organizational design. Power Point Presentation.

Pryor, M. G., Singleton, L. P., Taneja, S., & Toobs, L. A. (2009). Teaming as a strategic and tactical tool: An analysis with recommendations. International Journal of Management, 26(2), 320-334

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IvyPanda. (2024) 'The Organizational Structure in Kraft Foods Group'. 29 February.

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IvyPanda. 2024. "The Organizational Structure in Kraft Foods Group." February 29, 2024. https://ivypanda.com/essays/the-organizational-structure-in-kraft-foods-group/.

1. IvyPanda. "The Organizational Structure in Kraft Foods Group." February 29, 2024. https://ivypanda.com/essays/the-organizational-structure-in-kraft-foods-group/.


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IvyPanda. "The Organizational Structure in Kraft Foods Group." February 29, 2024. https://ivypanda.com/essays/the-organizational-structure-in-kraft-foods-group/.

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