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Course Code: MGN101 Course Title: PPM

Course Instructor: Miss Apoorva


Academic Task No: 2 Academic Task Title: Organizational
Structures
Date of Allotment: 09/10/2014 Date of submission: 25/10/2014
Students Roll no: A22 Students Reg. no: 11403898
Evaluation Parameters:


Learning Outcomes: Came to know about the different Organizational Structures used by Union
Bank of India and Airtel.

Declaration:
I declare that this Assignment is my individual work. I have not copied it from any other students work
or from any other source except where due acknowledgement is made explicitly in the text, nor has any
part been written for me by any other person.
Students Signature:

Evaluators comments (For Instructors use only)
Evaluators Signature and Date:
Marks Obtained: _______________ Max. Marks: ______________





General Observations Suggestions for Improvement Best part of assignment










Banking Industry Overview

India is considered among the top economies in the world, with tremendous potential for its
banking sector to flourish. The last decade witnessed a significant upsurge in transactions
through ATMs, as well as internet and mobile banking.
The country's banking industry looks set for greater transformation. With the Indian Parliament
passing the Banking Laws (Amendment) Bill in 2012, the landscape of the sector has duly
changed. The bill allows the Reserve Bank of India (RBI) to make final guidelines on issuing
new licenses, which could lead to a greater number of banks in the country. The style of
operation is also slowly evolving with the integration of modern technology into the banking
industry.
In the next 5-10 years, the sector is expected to create up to two million new jobs driven by the
efforts of the RBI and the Government of India to expand financial services into rural areas. Two
new banks have already received licenses from the government, and the RBI's new norms will
offer incentives to banks to spot bad loans and take necessary recourse to curb the practices of
rogue borrowers.

Union Bank of India (UBI)
Union Bank of India (UBI) was registered on 11 November 1919 as a limited company in
Mumbai and was inaugurated by Mahatma Gandhi. At the time of India's Independence in 1947,
UBI only had four branches - three in Mumbai and one in Saurashtra, all concentrated in key
trade centres. After Independence UBI accelerated its growth and by the time the government
nationalized it in 1969, it had grown to 240 branches in 28 states. Shortly after nationalization,
UBI merged in Belgaum Bank, a private sector bank established in 1930 that had itself merged in
a bank in 1964, the Shri Jadeya Shankarling Bank. Then in 1985 UBI merged in Miraj State
Bank, which had been established in 1929. In 1999 the Reserve Bank of India requested that UBI
acquire Sikkim Bank in a rescue after extensive irregularities had been discovered at the non-
scheduled bank. Sikkim Bank had eight branches located in the North-east, which was attractive
to UBI.
UBI began its international expansion in 2007 with the opening of representative offices in Abu
Dhabi, United Arab Emirates, and Shanghai, Peoples Republic of China. The next year, UBI
established a branch in Hong Kong, its first branch outside India. In 2009, UBI opened a
representative office in Sydney, Australia.
Business
Personal banking: It provides products and services in area of saving, deposit, retail
loans, cards, insurance, and investment and demat facility.
NRI Banking: Under this it offer a range of services and products in areas like remittance,
saving, deposit, loans and payment to its NRI customers.
Corporate Banking: It offers services like CMS, E-Tax, trade finance, insurance products
and loans to its corporate clients.





Date of Establishment 11-11 1919
Revenue 4894.42 ( USD in Millions )
Market Cap 140570.7006396 ( Rs. in Millions )
Corporate Address Union Bank Bhavan,239 , Vidhan Bhavan Marg , Central
Office,Nariman PointMumbai-400021, Maharashtra
www.unionbankofindia.co.in
Business Operation Bank - Public
Background Union Bank of India (UBI) was registered on 11
November 1919 as a limited company in Mumbai and was
inaugurated by Mahatma Gandhi. At the time of India's
Independence in 1947, UBI only had four branches - three
in Mumbai and one in Saurashtra, all concentrated in key
trade centres. After Independence UBI accelerated its
growth and by the time the government nationalized it in
1969, it had gro
Financials Total Income - Rs. 321709.346 Million ( year ending
Mar 2014)
Net Profit - Rs. 16962.033 Million ( year ending
Mar 2014)












Telecom Industry Overview

Telecom services have been acknowledged globally as an essential tool for the socio-economic
development of a nation. India is currently the worlds second-largest telecommunications
market and has registered exceptional growth in the past few years.
Telecommunications is one of the prime support services needed for rapid growth and
modernization of various sectors of the economy. Driven by strong adoption of data consumption
on handheld devices, the total mobile services market revenue in India will reach US$29.8
billion in2014 and is expected to touch US$37 billion in 2017, registering a compound annual
growth rate (CAGR) of 5.2 per cent, according to research firm IDC.
The rapid strides in the telecom sector have been facilitated by liberal policies of the
Government of India that provides easy market access for telecom equipment and a fair
regulatory framework for offering telecom services at affordable prices. The deregulation of
foreign direct investment (FDI) norms have made the sector one of the fastest growing and a top
five employment opportunity generator in the country.

Airtel
Bharti Airtel Limited,
Commonly known as Airtel, is an Indian multinational telecommunications Services Company
headquartered in New. It operates in 20 countries across South Asia, Africa, and the Channel
Islands. Airtel has a GSM network in all countries in which it operates,
providing 2G, 3G and 4G services depending upon the country of operation. Airtel is the world's
third largest mobile telecommunications company by subscribers, with over 275 million
subscribers across 20 countries as of July 2013. It is the largest cellular service provider in India,
with 192.22 million subscribers as of August 2013. Airtel is the Second largest Asia-Pacific
mobile operator by subscriber base, behind China Mobile.
Airtel is the largest provider of mobile telephony and second largest provider of fixed
telephony in India, and is also a provider of broadband and subscription television services. It
offers its telecom services under the "Airtel" brand, and is headed by Sunil Bharti Mittal. Bharti
Airtel is the first Indian telecom service provider to achieve Cisco Gold Certification. It also acts
as a carrier for national and international long distance communication services. The company
has a submarine cable landing station at Chennai, which connects the submarine cable
connecting Chennai and Singapore.
Bharti Airtel added 5.10 lakh subscribers to take its base to 20.97 crore at the end of July, 2014.
Its market share in India is highest with a value of 28.41%.
Airtel is credited with pioneering the business strategy of outsourcing all of its business
operations except marketing, sales and finance and building the 'minutes factory' model of low
cost and high volumes. The strategy has since been copied by several operators. Its network
base stations, microwave links, etc.is maintained by Ericsson and Nokia Siemens
Network whereas IT support is provided by IBM, and transmission towers are maintained by
another company (Bharti Infratel Ltd. in India). Ericsson agreed for the first time to be paid by
the minute for installation and maintenance of their equipment rather than being paid up front,
which allowed Airtel to provide low call rates of 1/minute (US$0.02/minute).




Products and services offered by the company:
Mobile
Prepaid
Postpaid
Broadband & Internet
Speed on demand
Airtel PC secure
Airtel Net PC
IPTV
Digital TV
Data and IP Solutions
Wireless Internet
Data Card
USB Modem
Email on the go
Windows Mobile 5.0
Airtel Easy Mail
Calling Cards
International Calling Cards
Airtel Call Home
Airtel World Calling Cards





Reason of Selecting Companies
Banking Industry
With the potential to become the fifth largest banking industry in the world by 2020 and third
largest by 2025 according to KPMG-CII report, Indias banking and financial sector is expanding
rapidly. The Indian Banking industry is currently worth Rs. 81 trillion (US $ 1.31 trillion) and
banks are now utilizing the latest technologies like internet and mobile devices to carry out
transactions and communicate with the masses.

The Indian banking sector consists of 26 public sector banks, 20 private sector banks and 43
foreign banks along with 61 regional rural banks (RRBs) and more than 90,000 credit
cooperatives.

Union Bank of India

Union Bank of India (UBI) was registered on 11 November 1919 as a limited company in
Mumbai and was inaugurated by Mahatma Gandhi. At the time of India's Independence in 1947,
UBI only had four branches - three in Mumbai and one in Saurashtra, all concentrated in key

trade centers. After Independence UBI accelerated its growth and by the time the government
nationalized it in 1969, it had grown immensely. It is one the fastest growing PSU bank in India
with a significant growth. That is why I choose this company to be the part of my assignment.

Telecom Industry
Telecom is one of the fastest-growing industries in India. Today India stands as the second-
largest telecommunications market in the world. The mobile phone industry in India would
contribute US$ 400 billion in terms of gross domestic product (GDP) of the country in 2014.
This sector which is growing exponentially is expected to generate about 4.1 million additional
jobs by 2020, as per Groupe Speciale Mobile Association (GSMA).

Bharti Airtel
Bharti Airtel, incorporated on July 7, 1995 is the flagship company of Bharti Enterprises. The
Bharti Group, has a diverse business portfolio and has created global brands in the
telecommunication sector. Bharti Airtel, is Asias leading integrated telecom services provider
with operations in India and Sri Lanka. Bharti Airtel has been at the forefront of the telecom
revolution and has transformed the sector. Airtel has become a big Indian brand thats why I
have chosen this company as a part of my assignment.

Study of different structures of the companies

Organizational Structure Study of UBI
Line and Staff Organisational Structure:
Most large organizations belong to this type of Organisational structure. These organizations
have direct, vertical relationships between different levels and also specialists responsible for
advising and assisting line managers. Such organizations have both line and staff departments.
Staff departments provide line people with advice and assistance in specialized areas (for
example, quality control advising production department).





The line functions are production and marketing whereas the staff functions include personnel,
quality control, research and development, finance, accounting etc. The staff authority of
functional authority Organisational structure is replaced by staff responsibility so that the
principle of unity of command is not violated.
Some advantages are:
(i) Even through a line and staff structure allows higher flexibility and
specialization it may create conflict between line and staff personnel.
(ii) Line managers may not like staff personnel telling them what to do and how
to do it even though they recognize the specialists knowledge and expertise.
(iii) Some staff people have difficulty adjusting to the role, especially when line
managers are reluctant to accept advice.
(iv) Staff people may resent their lack of authority and this may cause line and
staff conflict.



Features:
(i) Line and staff have direct vertical relationship between different levels.
(ii) Staff specialists are responsible for advising and assisting line managers/officers in
specialized areas.
Merits:
(i) Use of expertise of staff specialists.
(ii) Span of control can be increased
(iii) Relieves line authorities of routine and specialized decisions.
(iv) No need for all round executives.
Demerits:
(i) Conflict between line and staff may still arise.
(ii) Staff officers may resent their lack of authority.
(iii) Co-ordination between line and staff may become difficult.

Organizational Structure Study of AIRTEL
Hybrid Organisational Structure:
Used in organizations that face considerable environmental uncertainty that can be met through a
divisional structure and that also required functional expertise or efficiency. This type of
structure is used by multinational companies operating in the global environment, for example,
International Business Machines USA. This kind of structure depends on factors such as degree
of international orientation and commitment. Multinational corporations may have their
corporate offices in the country of origin and their international divisions established in various
countries reporting to the CEO or president at the headquarters. The international divisions or
foreign subsidiaries may be grouped into regions such as North America, Asia, Europe etc. and
again each region may be subdivided into countries within each region.











Advantages:
1. Alignment of corporate and divisional goals.
2. Increased Efficiency
3. Functional expertise and efficiency.
4. Adaptability and flexibility in divisions.
5. Unity Among Staff Members
6. Decentralized Decision-making
7. Optimum Use of Resources


Disadvantages:
1. Conflicts between corporate departments and units.
2. Excessive administration overhead.
3. Slow response to exceptional situations.

Conclusion and Learning
From the above detail study of the companies and their organizational structures, it can be
concluded that UBI is one of the leading and fastest growing bank in India, it has followed Line
and Staff Organizational structure which is very much suitable and perfect matching for it. In
line and staff structure, the organizations have direct, vertical relationships between different
levels and also specialists responsible for advising and assisting line managers. Here in UBI, the
structure consists a Chief Managing Director and two Executive Directors, further there are
numerous General Managers for different departments and geographical zones. This type of
structures are applicable in large organizations having huge operations and nationwide branches
and approachability.
Whereas, from the study it is seen that Airtel is following a hybrid structure, combination of
international and geographical. As it is clear that Airtel is the largest telecom company in India
and has international operations in South Asia and Africa. Being a transnational company
operating in India and Africa and South Asia, it has followed the hybrid structure. Hybrid
structure is used by multinational companies operating in the global environment. This kind of
structure depends on factors such as degree of international orientation and commitment. Airtel
consists of a Chairman and a MD and CEO, and there are different Directors for different
departments in different geographical zones.





References
1. http://yourbusiness.azcentral.com/explain-hybrid-organization-structure-
11311.html
2. http://www.airtel.in/about-bharti/media-centre/bharti-airtel-
news/corporate/pg-bharti-airtel-announces-new-organisation-structure-for+-
its-india-and-south-asia-operations
3. http://www.yourarticlelibrary.com/organization/8-types-of-organisational-
structures-their-advantages-and-disadvantages/22143/
4. http://www.slideshare.net/vikram_dahiya/organization-structure-and-control
5. http://en.wikipedia.org/wiki/Bharti_Airtel
6. http://en.wikipedia.org/wiki/Union_Bank_of_India