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MANAGEMENT THEORY AND PRACTICE (8506)

TOPIC: Select a company and study its organizational structure in detail. PREPARED BY: MUHAMMAD.FAZEEL.AYAZ ROLL NUMBER: AM552472 SIGNATURE:

INTRODUCTION TO TOPIC

Organizational structure

Organizing

controlling

Management

Leading

Planning

Organizational structure and design:

Organizing is the process in which managers arrange and structure work to accomplish organization goals.

Organizational design The process by which managers create formal arrangement of job within an organization.

Six Key Elements of Organization Structure:


An organization structure defines how job tasks are formally divided, grouped and coordinated. . These are : a) Work specialization. b) Departmentalization. c) Chain of command. d) Span of control. e) Formalization f) Centralization & Decentralization.

(a)Work Specialization or division of labor:


Work Specialization
The degree to which tasks in the organization are divided into separate jobs with each step completed by a different person.

b) Departmentalization.

Once the jobs have been divided through work specialization , jobs are grouped together that is called departmentalization.

c) Chain of command.
The continuous line of authority that extends from upper levels of an organization to the lowest levels of the organization and clarifies who reports to whom.

d) Span of control.
The number of employees who can be effectively and efficiently supervised by a manager is called span of control.

e) Formalization
The degree to which jobs within the organization are standardized and employees behavior is guided by rules and procedures.

(f) Centralization and Decentralization : Centralization refers to the degree to which decision making is take place on top management. e.g. Army

Decentralized refers to the degree to which all level of management and employee participate in decision making. e.g. MBO

Two models of Organization design


Mechanistic structure Organic Structure

a. Highly specialized b. Rigid departmentalization c. Clear chain of command d. Narrow span of control e. Centralization f. Highly formulized

a. Functional team work b. No rigid departmentalization c. Free flow of information d. Wide span of control e. Decentralization f. low formulization

Common Organization design:

During construction of organizations structure, managers have multiple options to choose such a structure that can be categorized as:
1. Traditional organization structure:
a)Simple structure b)Functional Structure c)Divisional structure

2. Contemporary organization structure:


a) Team structure: b) Matrix or project structure c) Boundary-free structure:

Practical Study

Select a Multinational company and study its organizational structure in detail

COMSATS ISP
I select COMSATS. It is a multinational and semigovernment organization. COMSATS has number of technical and scientific projects including COMSATS Internet Services (CIS). Air portFM101Punjab college

Introduction to the COMSATS International. Co : Commission on Science and Technology for Sustainable Development in the South(Pakistan)
COMSATS Internet Services (CIS) which started its operations in 1996. CIS is now successfully operating in 7 major cities of Pakistan including:
Islamabad Rawalpindi Peshawar

Lahore

Karachi

Faisalabad

Sialkot

Brief Introduction of Sialkot Branch\node: COMSATS office is located at 1st Floor, Uberoi Building, near HBL Bank, Paris Road Sialkot, Pakistan.

Organization Design of COMSATS


Mechanistic type Clear chain of command Departmentalization: It has mainly five
departments Billing, Customer Support, DSL, Wireless and Technician Departments.

Geographic structure hierarchy OF COMSAT.co

Product or functional Departmental organization structure:

SWOT Analysis
Strengths Weaknesses

Opportunity

Threats

Strengths: Geographic design of COMSAT helps to target major cities business markets. Simple, centralized and clear chain of command don't confuse employees
Weaknesses:

Mechanistic organization design make environment very rigid and tightly controlled. It does not support innovations and creativity No team work and high office politics

Opportunity:
For getting number 1 ISP, COMSAT should adopt Modern and Contemporary organization structure. Like PTCL and Wateen Teamwork and Project design helps to develop employees motivation, that increase the COMSAT value.

Threats: Mechanistic or rigid organization structure is a threat for COMSAT in sense of:
Less supportive to change and innovations. Employee decrease in Moral and motivation. Unbalance authority

According to my conclusion, Organization design is very helpful To divide and assign job task Establish relationship in employees Establish formal line of authority and decision making power Best choice of organization structure make it internally strong , that helps in progress of any company

It is recommended that: It should promote team work within organization. It should adopt modern organization structures.