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Structure Of Carlsberg Brewery Malaysia

The purpose of this study was to investigate the partnership between organizational structure of your company and exactly how it could be applied or good for the company that have chosen. Supporting research and statements are evidently explained throughout this report. Here, Carlsberg Brewery Malaysia has been chosen as the main subject of this study.


Carlsberg Group was founded by J. C. Jacobsen in 1847. Since then, it has made its prestigious position to the world's fourth largest brewery group. The headquarters of the Carlsberg Group is at Copenhagen, Denmark.

Carlsberg Group extended their business to others market areas. Currently, there are definitely more than 50 Carlsberg breweries about the world, and Carlsberg Brewery Malaysia is one of computer. Carlsberg Malaysia has incorporated in December 1969. Its expanded brand portfolio includes Jolly Shandy Lemon, SKOL Super beer, Carlsberg Green Label as well as non-alcoholic drinks. Due to the high quality of beer products, Carlsberg Malaysia has led the Malaysia Sales Market and left a powerful effect on the monetary growth.

Organization structure is important to deal with in the organization's development. And yet, a specific and a powerful organization structure is the major factor and force to lead Carlsberg Malaysia in their business's development and growth.

Designing Organizational Structure

Management is the major issue in operating a small business, it involves four functions: planning, organizing, leading and controlling whereas organizing can be an indispensable step to lead an enterprise to grow. Organizing can be an important process for the managers to create a formal organization's structure.

As mentioned by Schermerhorn, Jr. (2011), the way in which the various parts of a business are formally arranged is usually known as the organization structure. Organization structure identifies roles, responsibilities and tasks of each job position and the relationships among these positions. It must be coordinated and grouped in a logical manner in order to attain the organization's objectives.

Organization structure can be shown visually within an organizational chart. Drawing a business chart is beneficial to the very best layer management of Carlsberg Malaysia. When drawing it, those managers are forced to investigate the relationships between each job position and this may help these to make improvements.

Figure 1: Organizational Chart

From: http://carlsbergmalaysia. com. my/web/company/cm_managementteam. aspx

Figure 1 shows the vertical organization chart of Carlsberg Malaysia. This diagram illustrate the relationships and arrangement of work positions within Carlsberg Malaysia.

When managers design or create their organization structure, they must engaged in six key elements: work specialization, departmentalization, span of control, chain of command, centralization and decentralization, and formalization.

Work Specialization

The term work specialization, is to spell it out the procedure of dividing work activities within an organization into separate job tasks. It is also known as division of labor.

Managers of Carlsberg Malaysia have put a great deal efforts on this step to create the effective organization structure. In order to boost the work output, they specialize each employee in doing a particular task rather than entire task. Moreover, there are some tasks that require highly-developed skills whereas some tasks only require lower skills, the managers use work specialization to make efficient use of the difference of skills that the employees or employees own.

This approach is obviously beneficial in the manufacturing department of Carlsberg Malaysia. There are various types of brands created under the business. With this approach, every worker only take part in a single task or aspect of the production. For example, one worker participates in the production of the SKOL Super Beer, another works for the Carlsberg Green Label, etc. Each worker could increase productivity and perform the maximize efficiency because they focus on their job task.


After job tasks have been separated through work specialization, they can be grouped together so that common or related work activities can be carried out in an integrated way. The foundation of how jobs are grouped back together is called Departmentalization. A number of the standard and common kinds of departmentalization used include functional, geographical, product, process, customer and etcetera. The way that Carlsberg Malaysia useful to group activities is by functions and it could be evidently seen in the business chart. The chart shows the functional structure of the organization, with top management followed by the functions of business development, marketing, human resources, financial and so on.

In Carlsberg Malaysia, people who have similar skills or performing the similar job tasks are grouped into work units. Each department will have professionals and the experts will be given the authority to make decisions of their areas of expertise. Following will be the benefits of functional structure towards the business:

High level of efficiency and productivity performed by the employees because they experienced the same job tasks.

Employees are much easier to train because they only focus on specific and narrow areas.

Job tasks have a tendency to be done constantly because common knowledge share within professionals and specialists.

Chain of command

The organization chart that declared before in the report shows the well-structured chain of command, which identifies the relationship between your superior and subordinate. Robbins & Coulter (2012) commented that chain of command is the type of authority extending from upper organizational levels to lower levels, which clarifies who reports to whom. When the organization grow in proportions, the chain of command tend to become taller and you will see more layers of management.

Suppose a worker from Sales Department had a problem. He or she may come up with the question like: Who help her or him to resolve the issues? This question can be solved by the next principle. Chain of command has underlying principle, which is the unity of command. The principle of chain of command states that an employee should are accountable to only 1 manager. Working in Carlsberg Malaysia, each employee understand whom to report or responsible to. They are assigned to the respective managers. For example, salesperson only will report to the top of the Sales Department.

Span of control

Span of control can be defined as the number of subordinates that report right to and effectively manage by a manager. It really is an important consideration in how efficient Carlsberg Malaysia will be. The appropriate span must get worried in management since it influences coordination. Tall organization structure has narrow span of control, while flat organization structure has wide span of control.

Management of Carlsberg Malaysia classified as narrow span of control. Each manager has fewer subordinates to supervise. The managers are able to administer and control the subordinates closely, thus they will have more time to train their underling. However, narrow spans have certain drawbacks such as vertical communication will be are more complex and therefore your choice making will be slow down, higher costs due to higher level of management hierarchy, and more.

Centralization and Decentralization

"Should most decision be made at the very top levels of a business, or as long as they be dispersed by comprehensive delegation throughout all levels of management?" (Schermerhorn, Jr. , 2011, p. 251) Centralization identifies the amount of authority for decision making at top of the levels of a business, decentralization is the distribution of authority for decision making to the lower-level employees. Generally, small businesses or company that started off in the hands of an founding family often use centralized organizational structure. Each conception offers pros and cons for the organization.

Carlsberg Malaysia is a decentralized organization. The most notable management supplies the employees authority to make decision as they are closer to the situation and they have more detailed knowledge and encounters about it in order to act quicker to give means to fix the problem. For example, Carlsberg Malaysia offers their sales department satisfactory authority on choosing what method to promote the new product rather than enforce them to promote in traditional ways. Decentralized structure takes some burden of day-to-day "non-important" problem solving off the very best management, so they may be left absolve to put more effort on the strategic planning, higher-level decision making and important financial decisions. Moreover, decentralization provides low-level employee with crucial experience to make decision. With this experience, they would be well prepared to act decisively after they are promoted into higher-level positions.


Nowadays, employees are anticipated to cope with the same input in exactly the same way and provide a consistent output. That is a highly formalized organization's expectation. As indicated by Robbins & Coulter (2012), formalization identifies how standardized an organization's jobs are and the extent to which employee behavior is guided by rules and procedures. When formalization is high, the organization offers specific job descriptions, many organizational rules, and clear work processes. Conversely, in a low formalized organization, the employee will have more freedom in the way they do their work.

To make a more flexible working environment, Carlsberg Malaysia tends to become low formalized organization although formalization is needed for consistent control. Rules may be too restrictive in some situations. Thus, they give the employees sufficient independence to make decisions that they have the best under the circumstances and wouldn't normally affect the organization's reputation. However, it generally does not mean the employees do not need to obey the organizational regulations since there will be some important staff policies such as never to use company computer to see social network like Facebook.

Employee satisfaction will be increase by employed in this freedom and positive working environment and employee turnover's rate will be reduced.


A well-organized internal structure is important for each and every organization to operate and run their business. Additionally, the size of the organization indicate the amount of work specialization, departmentalization, span of control, chain of command, centralization and decentralization and formalization required. Therefore, the management of Carlsberg Malaysia need to ascertain which structure would be the most effective for the coffee lover.

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