ABOUT ARCELORMITTAL

ArcelorMittal is the world's leading steel and mining company, with a presence in 60 countries
and an industrial footprint in 19 countries. Guided by a philosophy to produce safe, sustainable
steel, they are leading supplier of quality steel in the major global steel markets including
automotive, construction, household appliances and packaging, with world-class research and
development and outstanding distribution networks.

With a geographically diversified portfolio of iron ore and coal assets, they are strategically
positioned to serve the network of steel plants and the external global market.

In 2015, ArcelorMittal had revenues of US$63.6 billion and crude steel production of 92.5 million
tonnes, while own iron ore production reached 62.8 million tonnes. ArcelorMittal is listed on the
stock exchanges of New York (MT), Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the
Spanish stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).

ORGANIZATION STRUCTURE

ArcelorMittal has grown through the acquisition of numerous steelmaking and other assets, which
constitute our major operating subsidiaries. The group is managed according to region, with a
product specialization within those regions. Every region is headed by a member of
ArcelorMittal’s executive officers.
ANALYZE HOW YOU EXPECT THE ORGANIZATION TO BE STRUCTURED (FROM
AN IHRM PERSPECTIVE).

As ArcelorMittal is a holding company with no business operations of its own. All of

ArcelorMittal’s significant operating subsidiaries are indirectly owned by ArcelorMittal through
intermediate holding companies. They have to maintain functional organizational units, but they
have to fulfill these functions in different ways, depending on where the business in operating. The
essential challenge is to create differentiated organizational units responsible for the foreign
markets while coordinating operations across the whole company. It Can adopt a combination of
the below mentioned structures:
Functional
As Arelor Mittal is a multinational company, it should use corporate functions as the basis for its
organizational structure. Production, human resources, design and customer service are typical
functional units. If a functionally organized company has a centralized structure, all operations are
based in the home country and individual employees have responsibilities for different national
markets. Larger companies can have this type of organization, but in a decentralized form, where
foreign employees carry out some of the work in their own countries. In this case, companies have
to pay special attention to coordinating activities.

Geographic
A common form of organizational structure for larger companies and businesses that require a
presence in the foreign markets is one that's based in geography. In addition to the home office or
headquarters, semi-independent operations are established in the countries where the company is
active. For larger corporations, these can take the form of subsidiaries, while smaller companies
can have something as simple as an agent or a small office. This structure affords flexibility; the
head office can transfer responsibilities abroad if required by local conditions and if the foreign
operation is competent, but it can also take over local operations if needed.

International Division
One way multinational companies can accommodate foreign operations without disrupting the
organization in their home market is to create an international division. This structure is suited to
larger corporations, but it is also effective for smaller companies that have an established home
market and a rapidly growing international business. It leaves the company free to maintain the
focus on its home market in its main organization while leaving the international division free to
adapt to the foreign markets in which it is active.

Matrix
A matrix organizational structure combines the efficiency of the functionally organized company
with the flexibility of extensive local operations. Foreign workers report to local managers for
questions about their work, while they report to the head office for all other functions. The home
organization retains control of disciplinary matters, pay and promotions, while the employees carry
out the work according to local requirements. This is a suitable organizational form for smaller
companies active in only one or two foreign markets, but it is mainly used by larger corporations
who have extensive foreign operations.

Conclusion:
As a result, it has been managing the business according to region, while also maintaining the
product specialization within those regions. This has enabled the businesses to continue to have
their own dedicated strategy and focus, while capturing all the synergies within the region.