By

Mahesh Chitra 215110071Kowsik R 215110072Prabhu Sundar S 215110073Sabyasachi Chowdhary 215110074Taposh Sarkar 215110075

Whirlpool ORGANISATIONAL STRUCTURE AND DESIGN

Contents

Introduction

History

Community Focus

Leading Brands

Vision

Mission

Values

Strategic Execution

Corporate Governance

Human Resource Committee

Environment, Health and Safety

Awards and Recognitions

Code of Ethics

Conclusion

INTRODUCTION:

An organizational structure is a mainly hierarchical concept of subordination of entities that collaborate and contribute to serve one common aim. Organizations are a variant of clustered entities. An organization can be structured in many different ways and styles, depending on their objectives and ambience. The structure of an organization will determine the modes in which it operates and performs. Organizational structure allows the expressed allocation of responsibilities for different functions and processes to different entities such as the branch, department, workgroup and individual. Individuals in an organizational structure are normally hired under time-limited work contracts or work orders, or under permanent employment contracts or program orders.

Whirlpool Corporation is a leader of the $100 billion global home appliance industry. The appliances are marketed in nearly every country around the world.

Whirlpool manufactures appliances across all major categories, including fabric care, cooking, refrigeration, dishwashers, countertop appliances, garage organization and water filtration.

HISTORY:

Whirlpool Corporation today is the world's leading manufacturer and marketer of major home appliances. Whirlpool realizes annual sales of approximately $19 billion in 2008, has 70,000 employees and maintains 67 manufacturing and technology research centers around the world. The corporation markets Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Brastemp, Consul, Bauknecht and other major brand names to consumers in nearly every country around the world.

The beginnings, though, were much more humble, based on a business failure and the vision of one family. In 1908, Lou Upton invested his savings in a venture to manufacture household equipment. When that company failed to materialize, Upton was offered the opportunity to select something of value from the failed venture as a return on his investment. He chose the patents on a hand washing machine that he thought might be electrified.

Lou Upton brought the patents and his innovative vision home to St. Joseph, Michigan. In 1911, Lou joined his uncle Emory and brother Fred to produce motor-driven wringer washers as the Upton Machine Company.

Strong Business Ethics

The company's first major order for 100 washing machines came almost immediately. A problem arose when a cast-iron gear in the transmission

failed — in every single machine. Upon learning of the issue, Lou Upton replaced the defective parts with a new cut-steel gear. Impressed with the fledgling company's business ethics, the customer doubled its order to 200 washing machines.

Upton Machine continued to grow. In order to meet increased customer demand, in 1929 it merged with the Nineteen Hundred Washer Company of New York. Together they formed the Nineteen Hundred Corporation, and business grew steadily, in spite of the Great Depression of the 1930s. They began experimenting with new products, innovative technologies and strong engineering and sales.

 

Whirlpool in the 1940s And 1950s

World War II halted washer production, as factories were modified to provide components for the P-40 Warhawk aircrafts and military equipment. More than two million units of war materials were produced, including aircraft propeller pitch controls, trailing edges for fighter wings, hydraulic steering mechanisms for tank retrievers, carburetor parts, pumps, gears and gear cases.

In the summer of 1945, they began producing washers again, anticipating that within three years demand would be twice that of 1941. This began a period of explosive growth that would take us from a small manufacturer of washers and ironers to a large manufacturer of a full line of major home appliances, including the first fully-automatic washer and electric dryer.

In 1949, company’s name was changed to Whirlpool Corporation to contribute to the recognition of their signature brand. they had grown to lead the industry, achieving $48 million in sales and annual earnings of $3 million.

Commitment to Society

Lou and Fred Upton established the Whirlpool Foundation following the war, making a commitment – a promise – to reinvest in the community. Their intent was to provide financial and leadership support for nonprofit organizations dedicated to improving the quality of life in the communities where Whirlpool Corporation operated.

During the post-war boom years of the 1950s, the company looked for new ways to expand the product offering. In 1955, they merged with the Seeger Refrigeration Company, which provided us with a quality refrigerator line. As part of the merger they also acquired RCA’s air conditioning and range businesses, allowing us to provide customers with exceptional products that met their needs. In 1958, the company took the first tentative step toward

operating in foreign markets by entering a partnership with Brazil’s Brasmotor S.A., parent of appliance maker Multibras S.A. Eletrodomesticos.

Expansion and Dedicated Service

By the start of the 1970s, Whirlpool offered appliances to handle laundry, home heating and cooling, and the full cycle of food preservation, preparation, consumption and cleanup, in the kitchen. They continued introducing innovative products that performed more efficiently and helped make household tasks easier. To support the consumers, the company introduced the Cool Line, the first toll-free consumer service support program in the United States.

The company formed the Office for Environmental Control in 1970, solidifying the focus on social and environmental responsibility. This group allowed us to standardize strong environmental standards across all of the operations. Concurrently, they formed partnerships with environmental advocates, industry representatives and legislators to help craft robust energy and water efficiency standards, test procedures and policies, a commitment that continues today.

The First Space Kitchen

In October 1960, Whirlpool received a government contract to design and build America’s first experimental space kitchen. The kitchen included a miniature thermoelectric refrigerator, freezer, three-cavity oven, self-heated water system, storage space for food and disposal units for both dry and wet waste. This was the first attempt by appliance engineers to cope with the problems of zero gravity, and a number of innovative solutions were developed. the work helped build public knowledge of and confidence in the space effort. Whirlpool continued working with the government to develop food and equipment for space travel, pioneering the development of food, waste management and personal hygiene systems used in all of NASA’s Gemini, Apollo and Skylab missions.

The company began growing international business, expanding into Mexico. it also built a manufacturing plant in Pondicherry, India, and began manufacturing and marketing appliances throughout Europe. In 1986, it purchased the KitchenAid division of Dart and Kraft, allowing us to continue the excellent tradition of major and countertop appliances for which KitchenAid is known.

Whirlpool accelerated global expansion in the 1990s, with an expanded presence throughout Europe, Latin America, Asia and parts of Africa. The company is on the way to becoming a global force in the home appliance industry and the industry’s eventual leader.

Global Appliance Leadership

In 2006, the company took the significant step of acquiring Maytag Corporation, resulting in an aligned organization able to offer more to consumers in the increasingly competitive global marketplace. The transaction enabled us to become a more efficient supplier to trade customers while offering a broader portfolio of innovative, high-quality branded products and services to consumers.

The company’s focus on environmental sustainability continued with an emphasis on consistently offering a full line of energy- and water-efficient products. In 2003, the company became the world’s first appliance manufacturer to announce a global greenhouse gas reduction target, a 3 percent reduction from 1998 levels by 2008. it revised the target in 2007, to a goal of 6.6 percent reduction by 2012. Currently the operations’ release of toxic chemicals in the United States is nearly 90 percent less than the releases compared to the 1987 baseline year, while at the same time production increased approximately 80 percent.

COMMUNITY FOCUS:

One of the ways the company demonstrates the commitment to community and society is through partnership with Habitat for Humanity International, which began in 1999, when the company began donating a range and an ENERGY STAR®-qualified refrigerator to every Habitat for Humanity home built in North America. the commitment has expanded to include support for every Habitat home built globally by 2011, either through product donations, cash or home sponsorship.

Throughout the years, Whirlpool has built a culture of doing the right thing based on living up to the commitments to stakeholders and by quietly working behind the scenes to strengthen the economic and social fabric of the communities in which it operate. the employees live by the values that have made the company the international leader that it is today. They are delivering strong performance, providing an outstanding portfolio of brands, and they are creating better, more innovative products that improve consumers’ lives in and around the home each and every day. Nearly 100 years ago, the Upton family continually improved their washer; they cared about their community, their employees and their customers. They believed that "there is no right way to do a wrong thing." They still believe that today.

LEADING BRANDS:

Whirlpool markets some of the world’s most recognized appliance brands, including Whirlpool, Maytag, KitchenAid, Jenn-Air, Amana, Bauknecht, Brastemp and Consul.

The Whirlpool brand is the world's No. 1 global appliance brand and ranks among the world's most valuable brands identified by Brand Finance, the world’s leading independent brand valuation and marketing metrics consultancy.

VISION:

Every Home… Everywhere… with Pride, Passion and Performance

The vision reinforces that every home is the domain, every customer and customer activity the opportunity. This vision fuels the passion that the company has for the customers, pushing us to provide innovative solutions to uniquely meet their needs.

Pride... in the work and each other

Passion... for creating unmatched customer loyalty for the brands

Performance... that excites and rewards global investors with superior returns

The company bring this vision to life through the power of the unique global enterprise and the outstanding people... working together... everywhere.

MISSION:

Everyone, Passionately Creating Loyal Customers for Life

“The mission defines the focus and what we do differently to create value. We are a company of people captivated with creating loyal customers. From every job, across every contact, we will build unmatched customer loyalty…one customer at a time.”

VALUES: The values are constant and define the way that all Whirlpool Corporation employees are expected to behave and conduct business everywhere in the world.

Respect — “We must trust one another as individuals and value the capabilities and contributions of each person.”

Integrity — “We must conduct all aspects of business honorably – ever mindful of the longtime Whirlpool Corporation belief that there is no right way to do a wrong thing.”

Diversity and Inclusion — “We must maintain the broad diversity of Whirlpool people and ideas. Diversity honors differences, while inclusion allows everyone to contribute. Together, we create value.”

Teamwork — “We must recognize that pride results in working together to unleash everyone’s potential, achieving exceptional results.”

Spirit of Winning — “We must promote a Whirlpool culture that enables individuals and teams to reach and take pride in extraordinary results and further inspire the "Spirit of Winning" in all of us.”

STRATEGY EXECUTION:

Differentiation

“PROSPECTOR and LOW COST LEADERSHIP”

From the information given below, it is understood that the Whirlpool Corporation employs ‘prospector’ (Miles and Snow strategy) and ‘Low Cost Leadership’ strategy (Michael Porter strategy).

What truly distinguishes Whirlpool Corporation is the commitment to building strong brands and a loyal consumer base. Around the globe, the customers trust Whirlpool to make their lives easier. Everything done at Whirlpool contributes to building unmatched levels of loyalty to the brands through lifelong relationships with the customers.

The company is committed to the brand value-creation strategy—focusing on innovation, cost productivity, product quality and consumer value. It continues to improve the global operating platform to ensure the best-cost and best-quality appliance manufacturer worldwide. The supply chain has been transformed to better deliver products to trade customers and consumers. And the company is seeing the benefits of these actions today through a stronger network, increased efficiencies and timely deliveries.

The focus now, and in the future, is on more than just creating great products. The focus is on maximizing the benefits of the worldwide network of resources, which is unmatched in the industry. Its all about creating better, more innovative products that improve consumers' lives—in and around the home—each and every day and committed to being an agile, global consumer products company that creates value through the brands and innovations. The compelling and growing brands, fuelled with innovation, attract and retain loyal customers for life.

INNOVATIVE PRODUCTS OF WHIRLPOOL:

1. WHIRLPOOL brand QUARTZ washing machine

Released to India in Q1, 2009

The Whirlpool brand Quartz washing machine features 6th Sense technology to reduce water and energy consumption while obtaining the best possible cleaning results.   The washing machine’s easy-to-use electronic controls allow consumers to power on, program and start their machine in three simple steps.  And, with its automatic detergent and water selections, washing clothes has never been easier.  The washing machine is available in a variety of colors.

2. CONSUL brand AQUARELA microwave oven

Released to the Latin America Region in Q1, 2009

The Consul brand Aquarela microwave designed to make the kitchen more creative and fun.  Consumers are able to tailor the compartment on the microwave door with one of 12 sheets containing recipe tips – such as fast snacks and desserts – as well as spaces for photographs and telephone numbers. Consumers may customize their own unique cards on the brand’s Web site www.consul.com.br.

And the list goes on.........

Cost The Group’s comprehensive restructuring program will soon be completed, which means that Whirlpool will have a competitive production structure in which approximately 60% of appliances are manufactured in low-cost countries. All production of washing machines is already located in such countries. Costs are being continuously reduced by utilizing the Group’s global reach and strength.Whirlpool strategy is the tool for achieving the long-term goal of an operating margin of 6%. Whirlpool is, therefore, focusing first and foremost on:

Continue strengthening the position of the Whirlpool brand in the global premium segment.

Complete the relocation of production during 2010 to ensure a competitive production structure.

Utilize global reach and strength to reduce costs. Turn around markets and product categories on the basis of the strong brand in the

premium segment.

ORGANISATIONAL STRUCTURE:

The organisational structure followed here is Geographic segmentation based on divisional structure in the top order followed by line and staff organisation

Chairman and CEO

Jeff M. Fettig

Board of directors

Jeff M. Fettig

Samuel R. Allen

Herman Cain

Gary T. DiCamillo

Kathleen J. Hempel

Michael F. Johnston

William T. Kerr

John D. Liu

Miles L. Marsh

William Perez

Paul G. Stern

Janice D. Stoney

Michael A. Todman

Michael D. White

Executive committee

Jeff M. Fettig

David A. Binkley

Marc Bitzer

Bracken Darrell

Jose Drummond

Daniel F. Hopp

David Szczupak

Roy Templin

Michael A. Todman

Line and Staff organisation:

The line and staff organization refers to an organization in which two types of authority relationships co-exists. They are Direct or Line authority and Advisory Authority.

Staff managers advice, support and serve line managers.

Following are the characteristics of the line and staff organization:

Managers are of two types-Line Managers and Staff managers. The line managers perform the functions of decision-making, issuing orders and

controlling while the Staff managers perform the functions of advising, assisting and providing expert and specialized services.

There is a unity of command.

Divisional Organisation:

A division is a collection of functions working together to produce a product.

Geographic structure: divisions based on the area of a country or world served. In Whirlpool, the area is divided into North America and Rest of the World.

STRONG GOVERNANCE: Good governance helps Whirlpool to anticipate the full spectrum of business risks and opportunities – including non-financial ones – and manage them in a transparent way. By addressing financial reporting, transparency, audit, remuneration of directors, conflicts of interest and shareholder rights, traditional governance ensures that Whirlpool builds value and long-term success.

An ethical framework The Board assesses ethical risks and opportunities annually. In 2009, it discussed issues such as responsible sourcing. As well as company law, international conventions, voluntary codes of conduct and stakeholder priorities are important in shaping our governance framework.

Less is more Sustainability at Whirlpool is implemented through four key policies (see table). Whirlpool is focusing on streamlining group-wide policies to ensure strong, coherent messages across the Group. Policies are approved by Group Management and are mandatory, monitored and enforced. They are communicated to provide “simplicity, clarity and understanding for employees. Implementation is achieved through clear lines of accountability

POLICY POLICY HOLDER* REPORTS TOPOLICY APPROVER

Code of EthicsVP, Group Sustainability Affairs

SVP, Communications and Branding

Board of Directors

Workplace Code of Conduct

VP, Group Sustainability Affairs

SVP, Communications and Branding

Board of Directors

Policy on Countering Bribery and Corruption

Corporate Legal Affairs

SVP, Legal Affairs Board of Directors

Environmental PolicyVP, Group Sustainability Affairs

SVP, Communications and Branding

Group Management

WHIRLPOOL CORPORATION HUMAN RESOURCES COMMITTEE CHARTER

I. Purpose:

The purpose of the Committee is to assure the adequacy of the compensation and benefits of the officers and top management of the Company and to comply with any executive compensation disclosure requirements under relevant NYSE listing rules or law.

II. Committee members

The Human Resources Committee of the Board shall be made up of at least three "Independent" Directors as that term is defined in relevant NYSE listing rules and law. Committee members shall be appointed and removed by the Board of Directors in its sole discretion.

III. Committee meetings

The Committee will meet at least two times a year, with authority to convene additional meetings as circumstances require. The Committee will invite members of management and others to attend meetings and provide pertinent information, as necessary. Meeting agendas will be prepared and provided in advance to members, along with appropriate briefing materials. Minutes will be prepared and the Committee will report to the Board the results of its meetings. The Committee may form one or more subcommittees, each of which may take such actions as may be delegated by the Committee.

IV. Duties and Responsibilities

The Committee has the following specific duties and responsibilities, in addition to any similar matters that may be referred to the Committee from time to time by the full Board, the Chairman, or which the Committee raises on its own initiative:

1. Reviews and approves corporate goals and objectives relevant to CEO compensation, evaluates the CEO’s performance in light of these goals and objectives, and sets the CEO’s compensation level based on this evaluation and other relevant business information.

2. Determines and approves the compensation and other employment arrangements for the executive officers of the Company;

3. Determines and approves awards for executive officers under short-term and long-term incentive programs;

4. Makes recommendations to the Board with respect to incentive-compensation plans and equity-based plans that are subject to board approval.

5. Oversees other compensation and benefit matters as appropriate;

6. Determines and approves equity grants for executive officers and each individual subject to section 16 of the Securities Exchange Act of 1934.

7. Has sole authority within the Company to select, retain and terminate any consulting firm assisting in the evaluation of director, CEO, or senior executive compensation. This authority includes the sole authority to approve the consulting firm’s fees and other retention terms.

8. Produces the Committee’s report on executive compensation included in the Company’s annual proxy statement and generally oversees compliance with the compensation reporting requirements of the Securities and Exchange Commission (SEC).

9. Evaluate whether the Company's executive compensation practices and policies create incentives or disincentives that materially affect risk taking or are reasonably likely to have a material adverse effect on the Company.

10. Oversees management's establishment and implementation of standards, guidelines, and policies relating to the identification, assessment, and management of significant potential risks relating compensation and benefits, reporting to the full Board of Directors as appropriate.

11.  Reviews and discusses the Compensation Discussion and Analysis (the CD&A) required by the rules and regulations of the SEC with management, and, based on such review and discussion, determines whether or not to recommend to the Board that the CD&A be included in the company's annual proxy statement and annual report on form 10-K. 

12. Evaluates annually its performance in accordance with relevant NYSE listing rules and law.

WHIRLPOOL CORPORATION’S APPROACH TO ENVIRONMENT, HEALTH AND SAFETY

Whirlpool Corporation is committed to adopting responsible business activities that are consistent with our reputation for integrity and quality. Accordingly, we are committed to protecting the health and safety of our employees, customers and other stakeholders and to minimizing the environmental impact during the design, manufacture, distribution, use and disposal of our products.

CORPORATE COMMITMENT TO ENVIRONMENTAL, HEALTH AND SAFETY RESPONSIBILITY

Whirlpool Corporation practices environmental, health and safety responsibility by:

Making environmental, health and safety considerations a priority in business planning and decision-making processes

Providing a healthy and safe workplace for our employees, visitors, and contractors Managing all aspects of our business to effectively and efficiently utilize natural

resources; to avoid depletion where it is technically and economically feasible Developing and effectively utilizing Whirlpool Corporation’s EHS Global Standards,

including management systems and relevant performance measures, to guide our actions and assure consistency worldwide

Complying with the spirit and intent of all applicable EHS regulatory requirements and Whirlpool Corporation’s EHS Global Standards, as well as ensuring compliance through regular risk assessments

Establishing goals, targets, and objectives in the pursuit of continual improvement of our EHS performance in all activities, including the development of new products and processes

Conducting worldwide employee training related to the applicable regulatory requirements and EHS Global Standards, communicating our EHS expectations, and managing Whirlpool’s operations to meet such requirements and standards

Communicating with our customers, employees, and other stakeholders to ensure alignment of the company’s EHS policies and performance with the needs and expectations of those stakeholders

Proactively participating in the creation of equitable and effective EHS laws and regulations consistent with our stakeholders’ expectations

Responsibility

The approach and corporate commitment to environmental, health and safety responsibility are applicable to all Whirlpool Corporation wholly-owned and majority-owned operations

around the world. Every Whirlpool Corporation employee is responsible for understanding and adhering to the Environment, Health and Safety (EHS) Policy. The senior manager in charge of each business unit, product team or company facility has ultimate responsibility for ensuring compliance within his or her area of influence. Leaders throughout the company are responsible for understanding and communicating the policy and for facilitating action consistent with the policy.

An internal Global EHS Council is responsible for supporting the company's global efforts to comply with EHS Policy requirements. The Council creates, updates and continuously improves the policy and the mechanisms and processes that enable compliance. The Council also has responsibility for leading the management of environmental issues, identifying and recommending measures to reduce or eliminate EHS risk and assisting in the execution of actions to achieve compliance with the policy.

AWARDS AND RECOGNITIONS:

Ranked fifth on Fast Company’s 2010 list of the World’s Most Innovative Companies in the Consumer Products category according to ‘Fast Company’

Ranked sixth on the 2009 "World’s Most Admired Companies" list in the electronics industry according to ‘Fortune’

Named one of the "100 Best Corporate Citizens," ranked 51 in 2009; Whirlpool Corporation has been included in this list eight out of 11 years according to ‘Cro’

Named one of the Top 25 Most Respected U.S. Companies by the Reputation Institute and Forbes in 2008, 2009 and 2010 according to’Reputation Institute’

Named one of the top 50 U.S. companies for Social Responsibility by the Boston College Center for Corporate Citizenship and Reputation Institute; Whirlpool ranked 23nd in 2009 and 32nd in 2008

Recognized with fifth consecutive ENERGY STAR® Partner of the Year award for Sustained Excellence, the company’s 11th ENERGY STAR® award; Whirlpool has been honored with 22 ENERGY STAR awards overall, more than any other appliance manufacturer

Whirlpool Corporation has earned the Human Rights Campaign Foundation’s"Best Places to Work for GLBT Equality" Seal for seven consecutive years (2004-2010). The seal is given to companies that score 100 percent on the Human Rights Campaign Foundation’s Corporate Equality Index, which measures policies and practices implemented to promote fairness and equality in the workplace for Gay, Lesbian, Bisexual and Transgender (GLBT) employees.

CODE OF ETHICS:

Our aim is for Whirlpool Corporation to be known, trusted, and respected as one of the top enterprises in the world.   We have strict guidelines by which we conduct our business and the Whirlpool Code of Ethics requires each of us to act responsibly and maintain the highest levels of personal, business, and legal conduct. 

In all aspects of our business, Whirlpool is continually looking for ways to ensure that we do the right thing.  Whirlpool has undertaken a project to formalize our expectations of suppliers regarding working conditions.  Our new Supplier Code of Conduct is a logical next step in helping ensure that our company's strong values endure.

The Whirlpool Corporation Supplier Code of Conduct sets forth the key principles under which we expect our suppliers worldwide to operate.  Simply put, we expect to work with suppliers and factories that provide safe, lawful and humane conditions for their workers in accordance with applicable local laws.  The Code applies to facilities involved in the production of products and components for Whirlpool or any of our subsidiaries, vendors or agents.

Whirlpool's long-standing reputation for quality, excellence, and integrity demands that our employees and our suppliers make the right choice in all cases.  As you know, there is no right way to do a wrong thing.

Whirlpool Corporation's Global Labour and Employment Guidelines require that each Whirlpool operating unit throughout the world follows consistent principles relative to labour and employment practices.

Labour Laws: Whirlpool Corporation operates in full compliance with all applicable laws and regulations concerning labour issues in each of the countries in which it conducts business.

Fair Compensation and Employment Conditions: Whirlpool Corporation deals with employees fairly and honestly, and with concern for our employees' safety and well being. We pay workers at least the minimum compensation required by local law and provide all legally mandated benefits.

Safe Work Place: Whirlpool Corporation provides a clean, healthy, safe and secure work place for all its employees and contractors.

Communications: Whirlpool Corporation communicates with its employees and whenever possible, partners with them to achieve desirable competitive outcomes.

Diversity and Equal Opportunity:

Whirlpool Corporation values diversity and treats individuals with fairness and equity. We assure equal employment and advancement opportunities for all qualified people. Whirlpool ensures that employment—including hiring, payment, benefits, advancement, termination and retirement—is based on ability and not on beliefs or any other personal characteristics.

Harassment: Whirlpool treats all workers with respect and dignity, and will not tolerate abuse, corporal punishment, and/or harassment of employees, including physical, sexual, psychological or verbal harassment.

Personal Development: Whirlpool Corporation is committed to promoting the personal development and dignity of each employee.

Freedom of Association: Whirlpool Corporation respects the right of employees to join or not join an independent trade union and will bargain in good faith with these associations when they are properly elected.

Forced Labour: Whirlpool Corporation does not accept or condone any aspect of forced labor, including indentured, bonded or prison labor.

Child Labour: Whirlpool Corporation adheres to and strictly enforces child labor laws.

Women's Rights: Whirlpool ensures women workers receive equal treatment in all aspects of employment.

Suppliers: Whirlpool seeks to ensure that its suppliers observe similar standards in their relations with their employees and their own suppliers.

CONCLUSION:

Some systems are effective and efficient whereas others are not. Successful systems may be attributable to the skill exercised in designing the system or to the quality of management practised during operations, or both. Successful systems are characterized by their simplicity, flexibility, reliability, economy, and acceptability. Simplicity, flexibility, and reliability tend to be a function of design, whereas economy and acceptability pertain to both design and operations. Numerous relationships exist among these characteristics; for example, simplicity will affect economy and possibly reliability. Moreover, management must reach a compromise between economy and reliability, and between technical efficiency and organizational climate. The balance reached will determine whether short- or long-run objectives are optimized. In Whirlpool Corporation, the organisational structure, design, strategies are employed in the best manner possible. Besides aiming for a profitable venture, the company is also committed to social, environmental and employee welfare.