Organizational Choice at Hindustan Lever

Analysis of the case. This case is all about the problem faced by Hindustan lever regarding decentralization and reorganization. This case also focuses on the role that outside consultant plays in making management decision in decentralization\reorganization. Hindustan lever is a large FMCG Company, with a huge range of products, in 1962 due to the increase in competition, the growing pressure from the government, changing market trends the company began to consider decentralization as a way …

…of the organization hierarchy. But as the company was about to implement the change the marketing director got change. So they had to wait to know the views of the new marketing director. So the recommendations of Mr. Beaton were kept aside. The new marketing director again studied the situation and recommended some different organization structure. Then the issue was discussed in the informal meeting and the recommendations of the new marketing director were implemented.