Circular Structure

Charateristics:
1. It aimed at creating a structure which retained the informal flow of
information.
2. The structure was non-hierarchical and had concentric circles with senior
managers forming the inner circle, functional managers and their employees
forming the outer circle and the customers were part of the outer environment.

Advantages:
1. It was more customer oriented.
2. It encouraged free flow of information as the structure was non-hierarchical.
3. It was more responsive

Disadvantages:
1. Employees could not relate and understand the structure.
2. It was more towards responsiveness and did not focus on planning.
3. New employees could not understand the delegation of power and the
performance evaluation technique followed.
4. It did not answer any questions raised by the existing structure or achieve
anything.

Functional Structure
Charateristics:
1. They were organised as teams like sales and marketing, software
development, services etc.
2. There was also sub-teams which were created.

Advantages:
1. It had minimum hierarchy in horizontal reporting.
2. It helped the organisation in completion of tasks and also helped in laying out
the system of accountability.
3. Helped in growth of the organisational chart and hence increased control

Disadvantages:
1. Sub-teams lead to polarisation within teams and it restricted the involvement
if other departments.
2. Politics started to creep in with emphasis of titles, desk locations etc.
3. It inhibited working relations and hence that proved to be very costly.

4. People having specialised functional expertise were required who possessed

the skills required in large organisations.

Product Teams
Charateristics:
1. Different teams were made for each product.
2. Product teams and functional teams co-existed together in this structure.

Advantages:
1. More focus was given to each product.
2. It provided a greater control structure.
3. Functional teams got information about different products on a daily basis.
4. The job descriptions became better and hence there was proper allocation of
responsibility.

Disadvantages:
1. There was conflicts with respect to resource allocation among different teams.
2. Acute conflict between operations people and product manager.
3. Conflict of authority between product teams and functional teams.
4.The time spent on meetings increased considerably.

Divisional Structure
Charateristics:
1. Under this structure there were : inter-carrier services, management
information systems, operations, finance and human resource.
2. Functions were grouped based on specific demands of markets, products or
customers.

Advantages:
1. It improved focus on meeting financial targets.
2. It led to increased cooperation among divisions.
3. Ghosh was able to utilise his time in a better fashion focusing more on
strategic decisions.
4. Each division head reported to Ghosh hence eliminating the problems of
authority of decision making in turn improving accountability.

Disadvantages:
1. Problems of resource allocation still existed.

2. Divisions did not want to share resources and wanted full control over the
resources.
3. While there was internal coordination but there existed incoherence among
divisions.
4. Certain products did not develop as they fell in the purview of more than one
division.