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MANAGEMENT THEORY AND PRACTICE(8506)
TOPIC:Select a company and study its organizational structure indetail.
PREPARED BY:
MUHAMMAD.FAZEEL.AYAZ
ROLL NUMBER: AM552472
SIGNATURE:
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INTRODUCTION TO TOPIC
Organizational structure
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Organizing controlling
Leading Planning
Management
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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.
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Six Key Elements of Organization
Structure:
An organization structure defines how jobtasks 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.
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(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.
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b) Departmentalization.
Once the jobs have been divided throughwork specialization , jobs are grouped
together that is called departmentalization.
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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 amanager is called span of control.
The degree to which jobs within the
organization are standardized and
employees behavior is guided by rules
and procedures.
e) Formalization
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(f) Centralization and Decentralization :
Centralization refers to the
degree to which decisionmaking is take place on top
management. e.g. Army
Decentralizedrefers to the
degree to which all level ofmanagement and employee
participate in decision
making. e.g. MBO
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Two models of Organization design
Mechanistic structure
a. Highly specialized
b. Rigid
departmentalization
c. Clear chain of command
d. Narrow span of control
e. Centralization
f. Highly formulized
Organic Structure
a. Functional team work
b. No rigid
departmentalization
c. Free flow of information
d. Wide span of control
e. Decentralization
f. low formulization
C O i ti d i
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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:
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Practical Study
Select a Multinational companyand study its organizational
structure in detail
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COMSATS ISP
I select COMSATS. It is a
multinational and semi-
government
organization.COMSATS has number of
technical and scientific
projects including
COMSATS InternetServices (CIS).
Air portFM101Punjab
college
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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 1stFloor, Uberoi Building, near HBL Bank,
Paris Road Sialkot, Pakistan.
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Organization Design of COMSATS
Mechanistic type
Clear chain of command
Departmentalization: It has mainly fivedepartments Billing, Customer Support, DSL,Wireless and Technician Departments.
Geographic structure hierarchy OF COMSAT co
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Geographic structure hierarchy OF COMSAT.co
P d t f ti l D t t l i ti
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Product or functional Departmental organization
structure:
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SWOT Analysis
Strengths Weaknesses
Opportunity Threats
St th
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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
O t it
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Opportunity:
For getting number 1 ISP, COMSAT should adopt Modernand Contemporary organization structure. Like PTCL and
Wateen
Teamwork and Project design helps to develop employeesmotivation, 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
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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
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It is recommended that:
It should promote team work within
organization.
It should adopt modern organizationstructures.
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