DEDICATION:-

This report is dedicated to Prof. Dr. NAYYAR RAZA ZAIDI

who provides me such a nice and golden opportunity to show my

capabilities.

ACKNOWLEDGEMENT

I was given invaluable inspiration by many people in the completion

of the project.This is true that I could not have been able to achieve my

target without the valuable suggestions, meticulous attention and friendly

counseling of High Official of Descon Engineering Limited from where I have

advised, guided, furnished with updated literature and practical approach,

methodology and concept of Organization Theory and Design in Descon

Engineering Limited.

2

CONTENTS

DEDICATION

ACKNOWLEDGEMENT

EXECUTIVE SUMMARY

Annexure-A

HISTORY AND BACKGROUND OF THE ORGANIZATION

Annexure-B

STRUCTURE OF THE ORGANIZATION

Annexure-C

STRUCTURAL DIMENSIONS OF ORGANIZATION

Annexure-D

GOALS, STRATEGIES AND EFFECTIVENESS

Annexure-E

THE EXTERNAL ENVIRONMENT

Annexure-F

INTERORGANIZATIONAL RELATIONSHIPS

Annexure-G

TECHNOLOGY

Annexure-H

ORGANIZATIONAL SIZE, LIFE CYCLE AND CONTROL

3

Annexure-I

ORGANIZATIONAL CULTURE

Annexure-J

CONCLUSION AND RECOMMENDATION

Annexure-K

APPENDIX

4

Executive Summary

The purpose of this report is to fulfill partial requirements of my

course “Organization Theory and Design”. I have carried out my project in

keeping with my text and have applied the basic concepts studied.

I have selected an organization named as NESPAK (PVT) LIMITED for

the sake of accomplishment of my project.

I was given an appointment on my request by the General Manager

Business Development Division Mr. KHALID NAWAZ . During my

number of visits to NESPAK I studied its theory, analyzed its design

considering its structure, structural dimensions and contextual dimensions.

Conclusion of this report is that NESPAK is a multi-disciplinary

consultancy company that has evolved a divisional organization structure

suited to its specific needs. NESPAK goal is to attain self-reliance in

engineering consultancy and replace foreign consultants. NESPAK should

start professional training programme for its employees to keep them up-to-

date.

I have tried my best to complete the report and hope that it will be a

guideline for further research on this topic.

5

ANNEX-A

HISTORY AND BACKGROUND

OF

ORGANIZATION .

6

INTRODUCTION

National Engineering Services Pakistan (Pvt) limited ( NESPAK) is

Pakistan’s premier consultancy organization. Its international status is well

established and it enjoys the reputation of being one of the top engineering

consultancy organizations in Asia and Africa and is ranked amongst the

world’s top 200 consulting firms.

There has never been a dearth of competent engineers in Pakistan but,

unfortunately, over the years major development projects in Pakistan were

handed out to foreign consultant at the cost of self confidence of Pakistani

engineers and other professionals. Belatedly, when the Indus Basin project

were nearing completion, the highest authority in Pakistan realized that the

Pakistani engineers must be given practical exposure and responsibility in

this gigantic national development programme. It was realized that any

delay in taking initiative in this respect will be disastrous for the future of

the engineering profession in Pakistan. It was under these considerations

that NESPAK was created in 1973 as a Private Limited Company by the

Government of Pakistan. The objective of its creation was to create a pool

of talented engineers, attain self-reliance in engineering consultancy and

replace foreign consultants. The company has achieved these objectives to

a large extent. NESPAK is registered with a number of international

funding agencies such as IBRD, ADB, IDB, etc. Todate NESPAK has

7

undertaken 2228 projects out of which 1953 are domestic and 275 are

overseas projects located in Afghanistan, Azerbaijan, Bahrain, Benin,

Cameroon, Chad, Gambia, Ghana, Guinea, Iran, Iraq, Kazakhstan, Nepal,

Nigeria, Oman, Republic of Yemen, Saudi Arabia, Senegal, Sierra Leone,

Somalia, Sudan, Syria, Tajikistan, Tanzania and United Arab Emirates.

The cumulative cost of the projects undertaken by the NESPAK is

US$104.5 billion. The company has earned Rs.9778 million from its

domestic operations up to December 2002.

The company’s success lies in the hard work of its highly skilled

employees and commitment to quality in every fact of its operation. It was

this commitment that led it to become the first engineering consultancy

organization in Pakistan to obtain ISO 9001 QMS certificate in 1998.

COMPANY’S MANAGEMENT (BOARD OF DIRECTORS )

The Company is managed by a Board of Directors comprising a

Chairman, a Managing Director and 7 other Directors. The day to-day

functions of the company are looked after by the Managing Director

assisted by Vice presidents/Division Heads. Various divisions headed by

Vice Presidents/General Managers are boldly divided into project

management and specially groups. The project management divisions are

responsible for management of projects and the specialty divisions are

centered of excellence for various disciplines.

8

SERVICES

NESPAK offers a board spectrum of expert consultancy services

ranging from conception to completion and operation of development

projects. The scope of these services covers prefeasibility studies,

surveying and mapping, investigations, design, tender and contract

documentation, construction/installation supervision, contract management

and post-construction services.

FIELDS OF SPECIALISATION

NESPAK , having expertise in almost all engineering disciplines,

specializes in the field of power and mechanical; water and agriculture;

architecture and planning; highways, bridges, airports and seaports;

environmental and public health engineering; engineering for industry;

heating, ventilation and air-conditioning; information technology and

geographical information system(GIS).

HUMAN RESOURCES

NESPAK has on its rolls some of the best professionals in various

fields of engineering. It has also been able to attract a large number of

Pakistani experts from abroad. NESPAK is thus able to offer the services

of highly qualified and experienced professionals. At present, NESPAK has

9

staff strength of 1791 employees including 1197 highly qualified engineers,

architects, planner, geologists, economists and other professionals.

10

ANNEX-B

STRUCTURE OF THE

ORGANIZATION.

11

STRUCTURE:-

Descon Engineering Limited has evolved a flexible Functional

Organization Structure suited to its specific needs. The affairs of the

company are guided by a Board of Directors including a Chairman, a

fulltime managing Director and six directors. The day-to day functioning of

the company is looked by the Managing Director, assisted by Vice

Presidents and a Board of Management.

The project management divisions are cost centres responsible for the

management of projects from conception to implementation stage. They

work within approved budgets and are required to earn profits. Following

are the project management divisions:

LAHORE

Water & Agriculture

Power & Mechanical

Environmental and Public Health Engineering

Highways & Transportation Engineering

Architecture & Planning

Construction Management

Structural Engineering

KARACHI

12

Sports & Harbours

Airports

Industrial Infrastructure

Architecture & Planning

ISLAMABAD

Architecture & Planning

Civil Engineering

The specialty divisions are centres of excellence for various disciplines

and provide specialized technical inputs to project management divisions.

These divisions are manned by highly competent and experienced engineers

who have the capability to tackle problems of intricate nature. Following

are the specialty divisions:

Computer Application

Geotechnical & Geoenvironmental Engineering

Contracts

Economic Studies

Heating, Ventilation and Airconditioning

NESPAK’s mode of operation is such that all i ts recourses in specialty

divisions are made available to different projects and when need arises.

NESPAK project offices, therefore, always have full backing and support

13

of specialty divisions which not only endeavor to undertake the technical

problems but also involve themselves in modern research in their field of

specialization.

Each division in NESPAK is responsible for the quality control of the work

being produced by it . Quality control is achieved by standardization of

work procedures and performance of internal reviews. In case any

particular problem requires an in-depth study, the project manager calls for

a review by the senior staff. Excellence in quality and professional output

is ensured through a well defined, established and implemented Quality

Management System.

14

ANNEX-C

STRUCTURAL DIMENSIONS OF

ORGANIZATION .

15

I. FORMALIZATION :-

In NESPAK Formalization is “High” because policy manuals, job

descriptions of various employees, rules and procedures all are in written

format.

II. SPECIALIZATION :-

In NESPAK organizational tasks are subdivided into separate

jobs. Therefore specialization in NESPAK is “Extensive” .

III. STANDARDIZATION :-

In NESPAK employees perform different types of tasks in their daily

routine; therefore uniformity in work is low, so standardization is “Low” in

NESPAK .

IV. HIERARCHY OF AUTHORITY :-

In NESPAK the span of control is “Narrow” in the divisions,

therefore Hierarchy of authority is “Tall”.

V. CENTRALIZATION :-

In NESPAK decision making or centralization of power is kept at the

top level. The important decision like establishing goals, hiring employees,

choosing contracts are made at the top level, therefore in NESPAK

“Centralization is High” .

16

VI. COMPLEXITY :-

In NESPAK numbers of activities are differentiated among the

divisions. In NESPAK Vertical and Horizontal complexity is “High” , but

Spatial complexity is “Low”.

VII. PROFESSIONALISM :-

In NESPAK formal training and education of employees is very high,

therefore professionalism in NESPAK is “High”.

VIII. PERSONNEL CONFIGURATION :-

In NESPAK deployment of people to various divisions are high,

therefore personnel configuration is “High” in NESPAK .

The table of Structural Dimensions In NESPAK is given below:

17

STRUCTURAL DIMENSIONS

FORMALIZATION HIGH

SPECIALIZATION Extensive

STANDARDIZATION Low

HIERARCHY OF AUTHORITYTall

CENTRALIZATION OR

CONCENTRATION OF POWER

High or Centralized

COMPLEXITY :-

I. Vertical Complexity.

II. Horizontal complexity.

III. Spatial Complexity.

High

High

Low

PROFESSIONALISM. High

PERSONNEL

CONFIGURATION.

High

18

ANNEX-D

ORGANIZATIONAL GOALS,

STRATEGIES AND

EFFECTIVENESS .

19

GOALS :-

Mission Statement :-

To create a pool of talented engineers, attain self-reliance in

engineering consultancy and replace foreign consultants.

Our Believe :-

The believe of NESPAK is the consistent attainment of quality

in all facets of our operations so as to provide consultancy services

with professionalism and to the satisfaction of our clients.

Our Values :-

Excellence in all we do.

Ethical and moral conduct at all t imes and in all our

relationships.

Innovations in all areas of our Designs as a mean of attaining

and sustaining leadership.

Operative Goals :-

To increase profit by 15%.

To retain company’s leading stature in the future by capturing

75% Market share.

To hire top quality engineers and allied professionals.

To capture 80% share of Geographical Information System

(GIS) market.

To increase IT specialists by 50

20

ORGANIZATIONAL STRATEGIES :-

Porter’s competitive strategies :-

Low-Cost Leadership :-

NESPAK is using the “Low Cost Leadership” strategy to increase

market share by emphasizing or low cost compared to competitors.

By using “Low Cost Leadership” strategy, NESPAK also emphasize

on efficient facilities, pursues cost reductions and uses tight controls

to produce services more efficiently than its competitors.

Frame work of Porter’s competitive strategies:-

Competitive Advantages.

LOW COST UNIQUENESS

BROAD

NARROW

Low-cost Leadership.

NESPAK

DIFFERENTIATION.

Focused Low-Cost

Leadership.

Focused

Differentiation.

Co

mp

etit

ive

Sco

pe

21

Miles and S now’s Strategy Typology :-

Defender :-

NESPAK is concerned primarily with internal efficiency and control to

produce reliable, high quality services for clients. According to Mile’s and

Snow’s Strategy Typology. NESPAK is using “Defender” strategy for the

achievement of its goals.

EFFECTIVENESS :-

Contingency Effectiveness Approaches :-

Goal Approach :-

In Contingency Effectiveness Approach NESPAK uses the “Goal

Approach” to effectiveness, because it identifies the profit, client

satisfaction, efficiency and attainment of certain levels of output.

Balanced Effectiveness Approaches :-

Contingency / Stake holder Approach :-

According to Stake holder Approach important stake holder of

NESPAK are Clients, Employees, Creditors, Suppliers, community

and Government. Importance and power of these stake holders are

described in the following framework.

HIGH CREDITORS.Clients and

Governments.

Community and

Suppliers.Employees.22

LOW

LOW HIGH

IMPORTANCECompeting Values Approach:-

NESPAK is well established organization. Its primary goals are

efficiency and profit, therefore open system and human resource models

are not major concerns. Its major concerns are “Rational Goal Model” and

“Internal Process Model” as described below.

23

ANNEX-E

THE EXTERNAL

ENVIRNOMENT .

24

Environmental Domain :-

Environmental Domain of NESPAK is decried into “Task

Environment”, “General Environment”, and “International Control”.

Task Environment :-

Task environment of NESPAK consist of following sectors.

(i) Human Resources Sector :-

NESPAK has on its rolls some of the best professionals in

various fields of engineering; it has also been able to attract a large number

of Pakistani experts from abroad.

(ii) Market Sector :-

NESPAK offers a broad spectrum of expert consultancy

services to its clients. These services range from conception to completion

and operation of development projects.

(iii) Industry Sector :-

NESPAK has to compete with the best in the world both

technically as well as financially. NESPAK faces competition with many

Pakistani and foreign consulting companies. The main Pakistani

competitors of NESPAK are ACE & PES.

25

General Environment :-

General Environment of NESPAK consists of following sectors.

(i) Government Sector :-

NESPAK was established as a Private Limited Company with a

capital of only Rs.0.5 million and all the shares held by the Government of

Pakistan. Therefore federal laws and regulation, taxes political process has

an impact on its policies.

(ii) Economic Conditions :-

The economic recession Prevailing in Pakistan for the last few

years has effected the consultancy profession adversely. This has resulted

in fewer development projects in the country. Realizing the situation,

NESPAK mode hectic efforts to acquire projects not only in Pakistan but

also in foreign countries.

(iii) Technology Sector :-

Keeping in view the phenomenal growth of IT sector

domestically and large allocation of Government funds in two successive

years, NESPAK has taken strategic decision to expand further in this

important sector. NESPAK’s expertise in the field of Geographical

Information System (GIS) is best in the country. NESPAK also has a

“intranet” and Management Information System (MIS) for managerial

decision making.

26

(iv) Financial Recourse Sector :-

NESPAK is registered with a number of international funding

agencies such as International Bank for reconstruction and development

(IBRD), Asian Development Bank (ADB), Islamic Development Bank (IDB)

etc. The cumulative cost of the projects under taken by NESPAK is US$

104.5 Billion.

International Context :-

NESPAK’s international stature is well-established and it

enjoys the reputation of being one of the top engineering consultancy

organization in Asia and Africa and is ranked amongst the world’s top 200

consultancy firms. NESPAK has under taken 275 overseas projects located

in Afghanistan, Azerbaijan, Bahrain, Benin, Cameroon, Chad, Gambia,

Ghana, Guinea, Iran, Iraq, Kazakhstan, Nepal, Nigeria, Oman, Republic of

Yemen, Saudi Arabia, Senegal, Sierra Leone, Somalia, Sudan, Syria,

Tajikistan, Tanzania and United Arab Emirates.

27

Environmental Uncertainty :-

NAESPAK has complex, stable Environment that represents low-

moderate uncertainty. The Frame work for the Environment Uncertainty is

given below.

STABLE

UNSTABLE

SIMPLE COMPLEX Environmental Complexity

ADAPTING TO ENVIRONMENTAL UNCERTAINTY :-

Because NESPAK has complex, Stable Environment, therefore

NESPAK falls in Low-Moderate Uncertainty Environment. Following

frame work well explains the NESPAK’S response to environmental

uncertainty.

Simple + Stable = Low Uncertainty.

Complex + Stable =Low-Moderate Uncertainty.

NESPAK

Simple + Unstable = High-Moderate Uncertainty.

Complex + Unstable = High Uncertainty.

En

viro

nm

enta

l Ch

ange

28

STABLE

UNSTABLE

SSIMPLE COMPLEX Environmental Complexity

Low Uncertainty.

Low-Moderate Uncertainty. (NESPAK)1. Mechanistic

structure:Formal, centralized.2. Many departments,

someboundary spanning.3. Few integrating roles.4. Some planning.

High-Moderate Uncertainty.

High Uncertainty.

En

viro

nm

enta

l Ch

ange

29

ANNEX-F

INTERORGANIZATIONAL

RELATIONSHIPS .

30

INTERORGANIZATIONAL RELATIONSHIPS :-

NESPAK has Interorganizational Relationships with many companies

in and outside Pakistan. These relationships are of different types. Mostly

with Pakistani companies NESPAK has “joint ventures” e.g. ACE, Habib

Rafiq (Pvt) Limited, Mirza Associates etc. and with foreign companies

NESPAK has “collaborative networks” e.g . Engineering and Consulting

Associates Ltd. (Nigeria), Aab Kheez Asia Consulting Engineers Ltd.

(Iran) etc. the framework for Interorganizational Relationship is given

below.

ORGANIZATION TYPE

Dissimilar Similar

Competitive

Cooperative

Resource Dependence.

NESPAK

Population Ecology.

Collaboration Network.

NESPAK

Institutionalism.

OR

GA

NIZ

AT

ION

AL

RE

LA

TIO

NS

HIP

31

ANNEX-G

TECHNOLOGY.

32

Service Technology :-

NESPAK is a consultancy Engineering company. There fore

NESPAK accomplish its primary purpose through the production and

provision of “Services” . So NEASPAK uses “Service Technology” . As

NESPAK is an Engineering company, therefore it uses “Computer-aided

design (CAD)” for drafting, design and engineering of mew parts.

Departmental Technology :-

In NESPAK , task variety and Analyzability is high, therefore it

uses the Engineering Departmental Technology. The Perrow’s Framework

of Departmental Technology is given below.

LOW

HIGH

LOW HIGH

VARIETY

Craft Non routine

Routine Engineering

NESPAK

AN

AL

YZ

AB

ILIT

Y

33

Departmental Design :-

NESPAK has Engineering Departmental Technology; therefore it has

following characteristics of Departmental Design:

1) NESPAK has “Mostly mechanistic Structure”.

2) Formalization is Moderate.

3) Centralization is moderate.

4) Formal training and education.

5) Span of control is Moderate.

6) Communication is written and verbal.

INFORMATION TECHNOLOGY :-

Use of Information Technology is very common in every department

of NESPAK . NESPAK has a private company wide information system,

which is called “Intranet” . NESPAK also has its own”Management

Information System (MIS)” . NESPAK , keeping in pace with latest

technological developments, has a state-of-the art “Geographical

Information System (GIS)” section , equipped with latest GIS hardware,

software and trained professionals.

34

Interdependence Among Departments :-

Pooled Interdependence :-

NESPAK has pooled interdependence among its divisions. According to

Thompson pooled interdependence would exist in firms with “Mediating

Technology” . Thompson’s classification of interdependence and

management implication is given below:

35

Form of

Interdependence

Demands on

Horizontal

Communication,

Decision

Making.

Types of

Coordination

Required.

Priority for

locating

units close

together.

Pooled.

(NESPAK)

Low

communication.

Standardization,

rules, procedures.

Divisional structure.

Low

Sequential. Medium

communication.

Plans, schedules,

feedback.

Task forces.

Medium.

Reciprocal. High

communication.

Mutual adjustments,

team work, cross-

departmental

meetings.

Horizontal structure.

High.

36

37

ANNEX-H

ORGANIZATIONAL SIZE, LIFE

CYCLE AND CONTROL.

38

Organizational Size :-

NESPAK is a “Large” organization. NESPAK has staff strength of

1791 employee including 1197 highly qualified engineers,

architects, planners, geologists, economists and other professionals.

Organizational Life Cycle :-

According to the Organizational Lie Cycle NESPAK is in the

“Elaboration Stage” , because it is large, mature organization and

there is need for “Revitalization” in NESPAK . Organizational Life

Cycle is explained below:

1. 2. 3. 4. Entrepreneur ia l Co l l e c t i v i ty Formal i za t ion E labora t ion S tage S tage S tage S tage

C r i s i s : N eed for l eadersh ip

C r i s i s : N eed for de l ega t ion w i th cont ro l

C r i s i s : N eed to dea l w i th too m uch red t ape

C r i s i s : N eed for rev i ta l i za t i on

Streaml i n ing , sm a l l - company th i nk ingtt

ttth i nk ing

C ont inued mat ur i t y

D ec l i ne

D eve lopment o f t eam work

A ddi t i on o f i n terna l sy s t em

P os i t ion o f c l ear d i rec t i on

C rea t i v i ty

Large

Small

SIZ

E

NE

SP

AK

39

Organizational Control :-

In NESPAK use of rules, policies, hierarchy of authority, written

documentation is high; therefore NESPAK implements the

“Bureaucratic Control System” .

Management Control System :-

According to Management Control System, NESPAK uses the

“Operating Procedure Control System” .

40

ANNEX-I

ORGANIZATIONAL CULTURE .

41

CULTURE :-

NESPAK has a mixture of “Mission and Bureaucratic”

culture, because its goal is profitably as well as internal efficiently,

therefore it implements both cultures.

The framework for organizational culture is given below:

Needs of the Environment.

Flexibility Stability

External

Internal

Adaptability/Entrepreneurial

Culture.

Mission Culture.

(NESPAK).

Clan Culture. Bureaucratic Culture.

(NESPAK).

Str

ateg

ic F

ocu

s

42

ANNEX-J

CONCLUSION AND

RECOMMENDATION.

43

CONCLUSION :-

Now-a-days there is one thing many Pakistani business organizations

agree on it is the deleterious effects of uncertain future on their business.

With the rapidly changing market place owing to breakthroughs in

technologies, lowering of barriers to international competition and

maturing of Pakistani consumers, this uncertainty is only going to increase.

In the ruthless scenario only the nimble and sue-footed who have the ability

to correctly read the changes in consumer preferences before their

competitors do and who have the systems to quickly respond with better

value proposition will succeed. NESPAK is equal to the task; it is

providing a world class professional base in the field of consultancy

engineering to the employees and also introduces the modern technology

and quality improvement programme for the e xperts.

In the end I conclude from this report that NESPAK is a multi-

disciplinary consultancy company that has evolved a divisional

organization structure suited to its specific needs. NESPAK goal is to

attain self-reliance in engineering consultancy and replace foreign

consultants.

Consequently, I can say that NESPAK has an excellent management

system to meet the current challenges.

44

RECOMMENDATIONS :-

1) Engineers and allied professionals should be provided facilities for

their in-service training.

2) Keeping in view the importance of computer technology, all technical

staff should be provided special training of computer.

3) Due to increase competition between engineering consultancy firms, it

is difficult to get new projects without proper marketing strategies,

therefore NESPAK should hire Marketing Professionals for this

purpose.

4) NESPAK should start managerial training programme for its middle

and senior level engineers and allied professionals because just like

other organizations, NESPAK need competent managers to be able to

reach their objectives both effectively and efficiently.

45

ANNEX-K

APPENDIX .

46

Questionnaire: -

Used for the measurement of Departmental Technology.

VARIETY :-

I. How many of these tasks are same from day to day?

II. To what extent would you say your work is routine?

III. People in this unit do about the same job in the same way most of the

time.

IV. Basically; unit members perform repetitive activities in doing their

jobs.

V. How repetitious are your duties?

ANALYZABILITY :-

I. To what extent is there a clearly known way to do the major types of

work you normally encounter:

II. To what extent is there a clearly defined body of knowledge or

subject mater that can guide you in doing your work?

III. To what extent is there an understandable sequence of steps that can

be followed in doing your work?

IV. To do your work, to what extents can you actually rely on established

procedures practices? To what extent is there understandable

sequence of steps that can be followed in carrying out your work?

47