1/5/2012

A COMPARATIVE ANALYSIS TWO DIVERSE ORGANISATIONS

1/5/2012

AGENDA

Team Introduction Objective of the Study

Background Approach & Relevance Problem Statement Critical Analysis of Organization Structure Conclusion Q&A

1/5/2012

OBJECTIVE OF STUDY

To Study and Analyze Organization Performance from Work Organization Structure

1/5/2012

BACKGROUND APPROACH & RELEVANCE

APPROACH:
Comparative Study of apparently dissimilar issues in two Modern Corporations

&

Japanese Auto Giant Global Rev USD 102 bn Top 50 in Fortune 500

Indian PSU Rev USD 72 bn Top 100 in Fortune 500

RELEVANCE:
Most of us work either for a home grown or, foreign MNC Organizations go through different trajectories of performance DWO Structure allows a generic understanding of organizational issues

1/5/2012

COMPARATIVE STATEMENT

S. No.

Loss of Market Share

Able to retain market share in regulated pricing scenario Delays in installation of new facilities/projects Delays in decision on introduction of new technology

Long lead time in crucial decision making Indecision in crucial technology introduction

Erroneous capacity planning

Govt. influence on capacity expansions

Wrong Price Positioning of Products

Government regulated pricing

1/5/2012

CRITICAL ANALYSIS OF ORGANIZATION STRUCTURE

L-1 L-2 L-3 L-4 L-5 L-6 L-7 L-8 L-9 L - 10 L - 11 L - 12 L - 13 L - 14 L - 15 L - 16 L - 17 L - 18 L - 19 L - 20 L - 21 L - 22 L - 23 DIVISION NO OF FUNCTIONS Production Marketing 16 13

GLOBAL CEO HEAD: ASIA CHAIRMAN PRESIDENT DIRECTOR SR. VICE PRESIDENT VICE PRESIDENT ASSO. VICE PRESIDENT GENERAL MANAGER DYGENERAL MANAGER ASST GENERAL MANAGER SENIOR MANAGER MANAGER I MANAGER II DY MANAGER ASSISTANT MANAGER SENIOR EXECUTIVE EXECUTIVE JUNIOR EXECUTIVE STAFF LINE ASSOCIATES III LINE ASSOCIATES II LINE ASSOCIATES I Purchase 7 F&A 6 After Sales 8 R&D 1 Spare Parts 7 Admin 7

Total Employees: 1884

Tall Organization Structures in both Corporations causes Delay in Decisions

1/5/2012

CRITICAL ANALYSIS OF ORGANIZATION STRUCTURE

OPERATING HEAD
REGION HEAD

OPERATING HEAD

DIVISION HEAD DEPARTMENT HEAD SECTION HEAD SUPERVISOR EMPLOYEE

UNIT HEAD BASE HEAD SECTION HEAD STATION HEAD DEPT. HEAD SUPERVISOR ENGINEER EMPLOYEE

Approval of Official Tour Bill up to Rs.10,000/-

Approval of Capital Investment of Rs.10,000/-

CENTRALIZATION

10

11

12

13

14

15

16

17

DELEGATION

Highly Centralized Decision Making

Senior Management is Occupied with Routine Work due to High Centralization

1/5/2012

CRITICAL ANALYSIS OF ORGANIZATION STRUCTURE

SECTION NAME SECTION NAME Product Planning Sales Planning Sales Planning Corporate Sales Corporate Sales Field Sales Field Sales Sales Training Sales Training Sales Quality Sales Quality

FUNCTION PURPOSE OF THE FUNCTION

To decide product specifications & price & To decide product specifications

DIVISION SECTION NAME

price
Product Planning Marketing

FUNCTION PURPOSE OF THE FUNCTION

Distribution & Sale of Products
To process Crude & produce Petrol, Diesel etc.

To administer sales target & prod. plan To administer sales target and production plan

Refineries Sales Planning Pipelines Corporate Sales R&D Field Sales

HR,

Totarget bulk sales and corporate To target bulk sales and corporate To focus retail target achievement To focus on on retail target achievement Totrain dealer sales personnel To train dealer sales personnel

Transportation of Crude Oil & Products Formulation of new products & tech.

Toensure sales within set quality standards stds To ensure sales with set quality

Finance, Operations, Maintenance, Engineering, Technical Services within Divisions & Economic Studies, Business Development Functions at Corporate Level Petrochemicals, Gas, Renewables etc. Business functions

Corporate Planning

Overseas Operations, Diversification- E&P,

DIFFERENTIATION

10

11

12

13

14

15

16

17

SPECIALISATION

Highly Specialized Job Profile

Very High Level of Specialization results in Pockets of Excellence

1/5/2012

CONCLUSION

Two great organizations having in existence for over five decades. Both the organizations are having multi divisional structure with tall hierarchy and relatively small span of control. However, these structures are having certain inherent shortcomings as exemplified in this case study.

Hence we can conclude that organization structure need to evolve with time to absorb new technology as well as assimilate the changing culture and value system of society.

1/5/2012

Q&A

We will be happy to answer your Questions!

10

1/5/2012

11