Medtronic is a large, global company with more than 48,000
employees in 140 different countries. Particularly with the complicated nature
of the health care industry, Medtronic has a complicated leadership structure.
It utilizes a modified M-form with a shared corporate staff. There are
currently three groups, or divisions, with Executive Vice Presidents who report
directly to the CEO, Omar Ishrak. The three groups are Cardic and Vascular,
Restorative Therapies and Diabetes Group; these three are soon to be joined by
the Covidien Group. The structure becomes more complicated with Vice Presidents
of geographical region who have dotted line relationships with counterparts in
each technology division and the CEO. While most companies either organize by product
type or geographic region, Medtronic has a complex structure organized by both.
This is due, in part, to complicated health care regulations that differ in
each country and also varying cost of products due to differing economic
maturities around the globe. Therefore, Medtronic has, for example, a dedicated
employee of spine technology that focuses only on China. That person reports to
the head of Spine and the VP of Asia. Above all of these complicated
structures, there is a group of corporate staff called Quality. These positions
are in human resources, finances, administration and so on. The organization shares these leaders as
common cost centers to centralize the administrative work.
Medtronic’s board of directors is made up of diverse
business leaders, with CEO Omar Ishrak as the Chairmain. While there is some controversy
about whether Chairmans should be internal or external to the organization, Medtronic’s
board structure works quite well.
As far as budget allocation, each group has its own budget
based on their percentage of value of the company. The revenues of the groups
are listed below.
www.medtronic.com
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