Organizational Structure and Improvement of San Miguel Corporation
ORGANIZATIONAL STRUCTURE AND IMPROVEMENT
In this article we choose “SAN MIGUEL CORPORATION” this company shows a good organizational structure and improvement during worldwide recession. The data shows their extensive background characteristics as well as limitations of their company in organizational restructuring. Since organizational structure and staffing is the backbone of success in every company, it is important to dwell into levels and department of a certain company. Putting an individual into a certain position in an office requires certain qualities or qualifications at first hand.
4.1 Company Background – San Miguel Corporation was established in 1890 as a maker of the finest brewery in the Philippines. With over 100 years of continues leadership and services. Today this corporation has diversified into manufacturing of food and beverages, juices, processed meat poultry, dairy products, animal feeds, coffee, and various products of about 400 bestselling items distributed in the entire Southeast Asian region. The company has over 100 offices in the Philippines and Southeast Asia Including Vietnam, Indonesia, Malaysia and Hong Kong. Their partners are World leaders like, Hormel Corporation in USA, Yamamura Glass Japan and Qtel telecommunication of Qatar. In continuous expansion San Miguel Corporation also venture into mining, real-state and power generation, telecommunication and construction.
4.2 Characteristic of current organization – San Miguel Corporation has a strong organizational structure that encompasses the success beyond any other company in the Philippines that is why this corporation has become the leader since the start in the field of manufacturing and beverage distribution in Southeast Asia. The President and Board of director and top rank officers believe that corporate governance is a necessary requirement to continuously create awareness that leads to the success in product market presence as leaders. Therefore they are the one who participate in awareness promotion thereof in all aspect of business. They embodied to appoint highly competent individual with honesty and integrity and passion. They have built a strong foundation of competent employee to assure the finest delivery of products and services. San Miguel Corporation upheld and complies with the provision standard requirement of the government to protect their employees in giving them above industry salary and wages. According to a recent interview in television ABS-CBN their brand and their people are the secret to their success in fact they have set the trends in giving all the benefits higher than as of regulated by the government. While strengthening their vision they also develop social responsibility awareness by giving various livelihood and health program to answer issue of poverty in the Philippines. This is the project of The San Miguel Foundation Team.
4.3 Limitation of current organization structure – During the 90’s the transition changes of their Chief executive officer has somewhat delimit the current organization structure the division of loyalty between employees started to rise. Some implementation of rules and regulations have been changed by the newly appointed CEO which In this large and highly respected company some department have created a controversy of corruption specially in accounting department that causes a dilemma and intrigue in the organization structure therefore many employees are forced to resign and retrench to clean up the department. Another limiting factor of their organization is that nowadays they may still be affected in worldwide recession which causes retrenchment in some branches in other countries, hiring of employees is in the process of a project basis or agency manpower recruitment may somehow delimit the organization flow of the company. Therefore contractual basis have been observed in the rank and file class.
4.4 How to improve the organizational structure- Until now we can say that this corporation still holds a strong foundation and leadership backbone it its entirety however we still recommend the improvement in the provision of organization restructuring. During stock holders meeting the CEO and Corporate Secretary need not monopolize the decision making process and the flow of the meeting. The voting process of appointing top rank position should be generally available for stock holders and not only for the Board of directors. To further strengthen the success of the company the welfare of their employees should be the utmost priority by giving the same benefits and a chance of newly hired rank and file employees for regularization and probationary opportunity which is nowadays have not been given chances to grow as part of this company. Improving organizational structure in a democratic manner should also be observed at hand. The existence of rules and regulation should be focus on Employees welfare and not in hierarchal control.
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