KPMG is a Swiss Cooperative, providing professional services to the global organizations. The company has three major services such as tax, audit and advisory. Previously, the name of the organization was KMG abs after merging up with Peat Marwick; they change the name of KPMG. The company employs total 174,000 employees in global market (kpmg, 2016). Headquarter of the company is at Amstelveen. The company was founded in 1987. The company is known as the best financial service provider in global market. The annual revenue of the company is US$24.44 billion as per 2015.
Level of complexity
When it comes to the level of complexity, KPMG encounters complexity due to governmental regulations. KPMG conduct business in global market. On the other hand, government of different country has different regulations for financial sectors. Therefore, it is difficult for the company to comply with these legislations. The organizational process becomes complex for KPMG due to high regulatory difference (kpmg, 2016). As governments do not have any global framework, the company needs to understand lot of policies and regulation in order to conduct business in global market. Apart from that, information management is another challenge, which makes business of KPMG complex. In order to satisfy global client, the company needs to conduct efficient market research. However, limitation of confidential data increases the level of complexity.
Mintzberg’s configuration model
Organizaiotons dealing with financial services are having hierarchical organizational structure. KPMG conducts business in global market and therefore, the organizational structure of this company has to be hierarchical (Ho, Lai & Lee, 2013). In order to understand the type of organization and its structure, Mintzberg’s configuration model has been evaluated. According to this model, there are five types of organizational structure. Following is the evaluation of these organizational types.
- The machine organization
In such organization, the procedures are formalized. The processes should be aligned with the employees’ roles and responsibility (Tomanek, 2016). Centralized decision-making of this kind of organization helps to avoid uncertainty. However, this kind of structure is only appropriate for the manufacturing company.
- The entrepreneurial organization
In this kind of organization, the processes are simple and flexible as well. There is no standardized system and therefore, the entire process is very informal (Hogan & Coote, 2014). However, KPMG have to follow proper guideline of government in order to conduct business in global market. Therefore, KMPG is not an entrepreneurial organization.
- The divisional organization
This kind of organizations has a range of products or services. The organizational structure of this kind of company is divisional. There will be a central headquarter to support the autonomous sections (Kummerow & Kirby, 2013). This kind of organizational structure can be seen is large and global organization. Therefore, it can be said that KPMG is a divisional organization.
- The professional organization
The basic different between machine organizations and professional organization is, professional organization rely on trained workforce in order to achieve the organizational goal (Schneider, Ehrhart & Macey, 2013). The term professional refers to the attitude of controlling critical situation without taking any assistance. This organizational structure can be seen in manufacturing industry.
- The innovative organization
This kind of organizations relies on innovative strategies in order to achieve organizational goal (Shahzad et al., 2012). The organizations do not have any rigid policy to comply. As KPMG needs to comply with organizational and governmental policies, it can be said that this organizational structure is not appropriate for this context.
According to Schein’s concept of cultural model, organizations do not adopt their culture in one day. The process is lengthy and depends on different situations. In case of KPMG, the company has five different logos such as primary logo, blue logo, black logo, solid blue logo and solid black logo (kpmg, 2016). The purposes of these logos are different and introduced in different organizational situation. Schein’s concept of cultural model suggests that if an organization has strict policies to comply with, then the company is highly professional. As described, KPMG maintains their logo in an appropriate manner. The company uses each logo for different purpose. Therefore, it can be said that the approach of this company is more professional in contrast with other organizations in this field. Following are the logos that KPMG have:
- KPMG primary logo
- KPMG blue logo
- KPMG black logo
- KPMG solid blue logo
- KPMG solid black logo
Figure: Logo of KPMG
(Source: kpmg, 2016)
KPMG is a service-based organization serving to the global consumers. Apart from that, the company is complying with a range of regulations. Therefore, it can be said that the company maintains professionalism, which makes the company different from the competitors.
Aligning Symbolic, HHR and Structural Frame
Figure: Organizational Structure of KPMG
(Source: kpmg, 2016)
According to the organizational structure, KPMG has a hierarchical structure. The top management controls the lower management in order to ensure that the organizational objectives are achieved. According to the Mintzberg’s configuration model, KPMG is divisional organization. In this kind of organization, employees are bound to comply with the organizational policies. Therefore, KMPG maintains the use of different logos in order to maintain their global identify (Ho, Lai & Lee, 2013). The logo designed by the human resource management of the company stands for different purpose. SFor example, the solid black logo is used for signage. However, the background of the signage should be white or light color. It helps the company to display a prominent brand image in global market. According to the organizational structure, the company needs to maintain the professional approach while conducting business in global market. Apart from that, the entire process of this organization is controlled by the headquarters (Hogan & Coote, 2014). Therefore, it can be said that global council, global executive team and global board are responsible for implementing new strategies. As this organization follows a hierarchical approach, the lower level management should maintain the policies framed by the higher management. Therefore, the organizational culture should fall under the professional organization in Mintzberg’s configuration model.
Ho, C. L., Lai, G. C., & Lee, J. P. (2013). Organizational structure, board composition, and risk taking in the US property casualty insurance industry.Journal of Risk and Insurance, 80(1), 169-203.
Hogan, S. J., & Coote, L. V. (2014). Organizational culture, innovation, and performance: A test of Schein's model. Journal of Business Research, 67(8), 1609-1621.
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Kummerow, E., & Kirby, N. (2013). Organisational Culture: Concept, Context, and Measurement (In Two Volumes). World Scientific Books.
Schneider, B., Ehrhart, M. G., & Macey, W. H. (2013). Organizational climate and culture. Annual review of psychology, 64, 361-388.
Shahzad, F., Luqman, R. A., Khan, A. R., & Shabbir, L. (2012). Impact of organizational culture on organizational performance: an overview.Interdisciplinary journal of contemporary research in business, 3(9), 975.
Tomanek, R. (2016). Koleje ??l?…skie as an Example of H. Mintzberg’s Structural Configuration Theory Application in Designing Organizational Structure of a Railway Operator. In Transport Development Challenges in the Twenty-First Century (pp. 231-239). Springer International Publishing.