Assinment 2

Assignment #2: Organization structure 1

DEDICATION

I dedicate this report to my parents and friends in recognition
of their worth and to my teachers who are the guiding force
for me and i t is t heir e ff ort and har d wor k that showe d
me t he pat h of success and prosperity which would be there for
me for the rest of my life.
My life motto is;

“Keep your dreams alive, understand to achieve anything requires
faith, belief, vision, hard work, determination and dedication.
Remember all things are possible for those who believe.”

Prepared by: M Fazeel Ayaz Company: COMSATS International. Co


ACKNOWLEDGEMENT TO ;

First of all to the praise is for Allah, the most merciful and beneficent, who
blessed me with the knowledge, gave me the courage and allowed me to
accomplish this task.

After ALLAH, is the last prophet Muhammad (S.A.W) who brought for us
exposure and unlimited knowledge.

I am especially indebted to all my teachers for instilling in me enough
knowledge to be able to carry myself efficiently during that assignment.
Secondly, I am bound to thank all the staff of Comsat. In particular I
am grateful to Mr. Nadeem akthar (General Manager), Mr. Arshad anjum
(Account Officer) and specially thanks to Mr. Shahzaib (Customer Support
Reprehensive), Mr. Mohsin shrez (Sales and Marketing) and Muhammad saeed
their inspiringguidance, remarkable suggestions, constant encouragement,
keen interest, constructive criticism and friendly discussionhelped me to learn a
nd enabled me to complete this report efficiently…..

Muhammad Fazeel Ayaz



Executive summary

According to my roll number my topic of assignment #2 is ” Select a
multinational company and study its organizational structure in detail”.

So, I select COMSATS. It is a multinational and semi-government organization.
COMSATS has number of technical and scientific projects including COMSATS
Internet Services (CIS)

COMSATS Internet Services (CIS) is one of the leading Internet Service providers
(ISP) in Pakistan. CIS started its operation in 1996 in multi-cities of Pakistan and
now successfully operating 10 major cities of Pakistan and providing Internet
products and services to people of Pakistan. CIS headquarter is in Islamabad. It
provides a variety of Internet services like dial up, ISDN, leased line and
Broadband connectivity through wireless & DSL media along with value added
services to corporate and residential users.

COMSATS Internet Services now a premier Internet backbone provider is linked
with world’s major Internet access point which provides high speed and
uninterruptible Internet access to subscribers.

CIS clients include reputed national and international organizations and
companies; technology and business companies, foreign missions, consulates
and embassies, NGO’s, social development and research organizations coupled
with good percentage of residential user. Till date CIS has 65000 customers in
its list.



Objective of the Study

The primary objective of an organization is to set up relationships and
procedures in such a way that employees can obtain the best results from their
efforts. In an organization, jobs are generally organized into teams, units,
departments, divisions, and so forth thereby combining individual efforts and
producing more than individuals could produce separately. The more
appropriate the structure supporting relationships and procedures governing
employee actions, the smoother and more efficiently the organization will
operate. The framework of an organizations structure is created through a
process called organizational design that defines the six key design decisions,
which include division of labor, departmentalization, span of control, chain of
command, formulization and delegation of authority.
Organizational structure is a business' skeleton. Organizations are alive and
breathing, so they require something to give them shape and support their life
functions. Organizational structures help everyone involved in a company to
clarify and understand everyone else's role and scope.
Study of organization and organization structure helps in;

 Coordination
 Reporting procedures
 Showing Responsibilities of individuals
 Improving communication orders
 Improving decision making easy.



Introduction to the topic
Topic: Organizational structure and design:
Organizing the process by which
managers establish working relationships among employees to achieve goals.
Organizational structure refers to the way tasks are divided up, how the work
flows, how this flow is coordinated and the forces and mechanisms that allow
this coordination to occur. The framework of an organizations structure is
created through a process called organizational design that defines the
six key design decisions, which include division of labor,
departmentalization, span of control, Chain of command, formulization
and delegation of authority.
Organizational design is a process by which managers create a specific type of
organizational structure and culture so that a company can operate in the most
efficient and effective way



Six Key Elements of Organization Structure:
An organization structure defines
how job tasks are formally divided, grouped and coordinated. There are
six elements that mangers need to address when they design their
organization’s structure. These are :- a) Work specialization. b)
Departmentalization. c) Chain of command. d) Span of control. e) Centralization
& Decentralization. f) Formalization

1. Work Specialization or division of labor:
It refers to the degree to which
tasks in the organization are subdivided into separate jobs. The essence of work
specialization is that, rather than an entire job being done by one individual, it is
broken down into a number of steps, with each step being completed by a
separate individual. Most managers today see work specialization as neither
obsolete nor an unending source of increased productivity rather managers
recognize the economies it provides in certain types of jobs and the problems it
creates when it’s carried too far. You’ll find, for example, high work
specialization being used by McDonald to efficiently make and sell hamburgers
and fries, and by medical specialists in most health maintenance organizations.
On the other hand, companies like Saturn Corporation have had success by



broadening the scope of jobs and reducing specialization.

Figure 1.1: Work Specialization or division of labor

2. Departmentalization:
Once the jobs have been divided through work
specialization, these jobs have to be grouped together so that common tasks
can be coordinated. The basis by which jobs are grouped together is called
departmentalization.



The activities can be grouped by functions performed. A Manufacturing
manager might organize his plant by separating engineering, accounting,
manufacturing, personnel and supply specialists into common departments.

Functional
Departmentilazation

Geographic
Departmentilazation

organization Product
Departmentilazation
Structure Departmentilazation

Process
Departmentilazation

Coustomer
Departmentilazation

Figure 1.5: Types of Departmentalization



(i) Functional Departmentalization:
A method for separating the activities performed within
an organization into groups differentiated by the function they perform. For
example, a business employing functional departmentalization would tend to
group together workers that perform a particular function, such as accounting.
Every organization must perform certain jobs in order do its work. For example,
key functions of a manufacturing company include production, purchasing,
marketing and accounting.

(ii): Geographic Departmentalization:
Departmentalization by geographical
regions groups jobs on the basis of territory or geography. For example, Merck,
a major pharmaceutical company, has its domestic sales departmentalized by
regions such as Northeast, Southeast, Midwest, Southwest, and Northwest. If
an organization's customers are geographically dispersed, it can group jobs
based on geography. Organizations that are spread over a wide area may find
advantages in organizing along geographic lines so that all the activities
performed in a region are managed together.



(iii) Product Departmentalization:
Large, diversified companies are often organized
according to product. All the activities necessary to produce and market a
product or group of similar products are grouped together. The advantage of
this type of structure is that the personnel in the group can focus on the
particular needs of their product line and become experts in its development,
production, and distribution.



(iv) Process Departmentalization:
Departmentalization by process groups jobs on
the basis of product or customer flow. For example: Manufacturing processes
are the steps through which raw materials are transformed into a final product.
The manufacturing process begins with the creation of the materials from which
the design is made. Manufacturing processes can include treating (such as heat
treating or coating), machining, or reshaping the material. departments.

(v) Customer/Market Departmentalization:
An organization may find it advantageous to
organize according to the types of customers it serves. For example, a
distribution company that sells to consumers, government clients, large
businesses, and small businesses may decide to base its primary divisions
on these different markets.

3. Chain of Command
It is an unbroken line of authority that extends from the top
of the organization to the lowest level and clarifies who reports to whom. It
answers questions for employees such as” To whom do I go if I have a
problem?” and ‘To whom am I responsible?”
The unity of command principle helps preserve the concept of an unbroken line
of authority. It states that a person should have one and only one superior to
whom he or she is directly responsible. If the unity of command is broken, an
employee might have to cope with conflicting demands or priorities from
several superiors.
4. Span of control:
It refers to the number of subordinates a manager can
efficiently and effectively direct. Span of control is important because, to a large
degree, it determines the number of levels and managers and organization has
all things being equal the wider or larger the span, the more efficient the
organization.
5. Centralization and Decentralization :
Centralization refers to the degree to which
decision making is concentrated at a single point in the organization. "A
decentralized system is one which requires multiple parties to make their own



independent decisions" In such a decentralized system, there is no single
centralized authority that makes decisions on behalf of all the parties.
6. Formalization:
It refers to the degree to which job within the organization
are standardized. If a job is highly formalized then the job incumbent has a
minimum amount of discretion over what is to be done, when it is to be done
and how it is to be done. Employees can be expected always to handle the same
input in exactly same way, resulting in a consistent and uniform output.

Centralization Decentralization

 Mechanistic and Organic Organizations


Mechanistic organization
The bureaucracy; a structure that is high in specialization, formalization, and
centralization. A mechanistic organizational structure works well for manufacturing
organizations and those in industries with very low tolerance for variation. The structure
creates a hierarchical chain of command with directions orally passed from manager to
subordinate. Mechanistic organizations do not allow a free flow of information between
departments, according to the management website Values Based Management. For this
reason, the structure does not work well for organizations with frequently changing
objectives, high creativity or the need for extensive information exchange.
Organic organization
An adhocracy; a structure that is low in specialization, formalization, and
centralization. Business owners and managers will often implement an organic
organizational structure because economic markets rarely stay predictable.
Companies must respond quickly to changes in the market, whether local,
regional or national. Allowing multiple individuals to make decisions can
improve the company's flexibility. Organizational structures need not be
singular in nature. Owners and managers can create a hybrid structure that
separates the company along functions or product lines while still retaining the
organic structure. Using a hybrid style can further enhance the company's
effectiveness in the market.



Common Organization design:
During construction of organization’s structure, managers have multiple options
to choose such a structure that helps there organization’s nature. It should be
concise in to two main categories:

1. Traditional organization structure:
2. Contemporary organization structure:

Traditional organization structure:
Common or traditional structures are
mostly useable organization structure. These structures are mechanistic in
nature. These structures can be divided in to three types:

i. Simple structure
ii. Functional Structure
iii. Divisional structure

i. Simple structure:
Simple organizational structures are characterized by a low degree of
differentiation of subtasks, and the leaders often have a very wide span of
control. The authority is oftentimes heavily centralized in a single person, who
will oftentimes be the owner of the company. Formalization will also be low,
and work will oftentimes be structured through direct control and supervision.
The simple structure is also often referred to as a "flat structure".
The simple organizational structure often only has 2-3 vertical levels, a rather
low amount of highly flexible workers, who will be able to perform several
different kinds of tasks.



ii Functional Structure:
Functional structures are useful for relatively big companies. Employees within
the functional structure are differentiated to perform a specialized set of tasks.
For example, the marketing department would be staffed only with responsible
for the marketing of the company's products. Functional structures are
characterized by a large degree of formalization, making each function reliant
on standardized ways of operating. Decision-making power is mostly
centralized at the top level.

Figure 7: Organization according to Function

iii Divisional structure:
A divisional structure can group employees by product
divisions, geographic divisions or market divisions. The advantages of divisional
structures include higher quality products and customer service because of
specialization, facilitated communication and teamwork within divisions and
encouragement of hands-on problem-solving. In addition, it is easier for upper



management to evaluate and reward employees through the increased job
accountability inherent in divisional organizational structures.

2. Contemporary organization structure:
Contemporary organizational
structures include matrix, virtual, lattice and networked organizations. The
networked organization is the most contemporary of them all because it
represents the complete antithesis of the traditional hierarchical structure.

Information and ideas flow in all directions in the contemporary
organizational structure.

The team structure, matrix structure, the boundary-free structure are the main
types of contemporary organization structure.

Team structure:
As an organization grows, its structure becomes increasingly
important. A large organization can't be managed properly unless it has a
strong internal structure. There are several ways to structure an organization,
including by function or by department. One of the most common is a team
structure. A team is composed of employees who work together on a specific
project. A team structure has the advantage of speeding up the work flow and
lowering costs. It also generally improves employee motivation and eliminates
unnecessary layers of management.



(ii) Matrix organization
A matrix organization structure introduces, or at least recognizes, the
real life complexity of our business environment. Geography, function,
technology, business unit and technology (among others) are important, so why
not recognize this reality in our matrix organizations structure.
However, a matrix organization structure also introduces a higher level of
internal complexity and some additional people management challenges, so
there must be significant advantages to a matrix organization structure that
outweigh the matrix people management challenges.
Matrix organization structures were introduced in the airspace industry in the
50s to cope with complex projects. Since then many thousands of organizations,
often prompted by the large strategy consultancies, have adopted the matrix
organization structure to help deal with internal and external complexity.



(iii) Boundary-free structure:
The term "boundary less" has come to describe the
business organization of today and the future as well as its employees. A boundary less
organization is the opposite of a bureaucracy with numerous barriers and divisions. In
contrast, the organization without boundaries offers interaction and networking among
professionals inside and outside the organization. The organizational model is fluid and
highly adaptive, much like an open system in biology. The form of the business is ever-
changing. Professionals inside the organization form networks and links and emphasize
collaboration on projects centered on technology, information, and expertise.



(iii) Practical Study of Organization With Respect to Topic

Introduction to the COMSATS International. Co :
COMSAT is an international, inter-
government science organization, aiming at socio-economic uplift of the third
world through useful applications of science and technology. COMSATS internet
services (CIS) is one of its projects which started its operation in1996. CIS is
pioneer ISP of Pakistan when it launched internet services for the first time in
the country then and is now successfully operating in 10 major cities of
Pakistan. CIS headquarter is in Islamabad. It establish in Sialkot is 1998. It
provides a variety of Internet services like dial up, ISDN, leased line and
Broadband connectivity through wireless & DSL media along with value added
services to corporate and residential users. CIS specialty in LAN & WAN



connectivity coupled with Sun, Microsoft, Intel, Compaq and Cisco System’s
certified engineers distinguish us from our competitors.
Mission / Vision
Our Vision
Our vision is to provide innovative quality Internet services and customer
support to Internet users in Pakistan including consumers and corporate
customers. CIS will also contribute to COMSATS mission of using technology for
the benefit of society through programs such as tele-health and e-learning.

Our Mission

To provide innovative Internet services that fulfills new needs of Internet
users.
To provide quality Internet services that is reliable and highly valuable.
To provide Internet services that is secure and safe.
To provide responsive customer support that resolves customer issues in a
short time.
To use Internet for social benefit in the form of tele-health and e-learning.

Brief Introduction of Sialkot Branchnode:
COMSATS office is located at 2, 1st Floor,
Uberoi Building Paris Road Sialkot, Pakistan. It has mainly five departments
Billing, Customer Support, DSL, Wireless and Technician Departments. The CSA,
DSL and Billing Department where I survey to collect data were so airy, clean
and organized. The Server room which controls all Sialkot Client connectivity is
also located in this office in his office.
Sialkot

S No. Exchange Sectors & Areas Covered Tel No. Prefixes
1 CTX Paris Road, Rangpura 458, 459, 460
Cantt, Ketchery Road, Kashmir road, murad
2 BLT pur 429, 426, 427
3 SIEX Small Industrial Estate 325, 355, 356, 324
3510, 3511, 3512, 3513,
4 UGX Ugoki 3514
5 GUX Guenke 6526, 655



6 PRX Pasrur Road 354, 361
6520, 6521, 6522, 6523,
7 SMB Sambrial 6524

Organizational Structure
COMSATS is a multinational company.
Organization structure is widened to many countries or regions and their
districts. A simple Divisional organization structure is shown in figure no 10.
COMSATS Internet Services (CIS) is one of its projects which started its operations in 1996. CIS
is the pioneer ISP of Pakistan when it launched Internet services for the first time in the
country then and is now successfully operating in 7 major cities of Pakistan including:

 Islamabad
 Rawalpindi
 Peshawar
 Lahore
 Karachi
 Faisalabad
 Sialkot



Figure no 10: Divisional Organizational structure of COMSATS. Co

Product or Departmental organization structure:

CIS provides a variety of Internet
services including dialup, ISDN, Wi-Fi DSL, Point-to-point wireless links,
LAN/WAN setup, and video conferencing. CIS has a data center also backed up
by two generators and five UPSs which hosts domains and websites of more
than 3000 customers. CIS provides data center-related services also including
domain registration, website hosting, collocation, and web development

The following seven brands form “The colors of CIS”:

 Freedom™ (Wi-Fi DSL)
 Tornado™ (Wireless P2P links)
 Hurricane™ (On-demand broadband)
 Hawaii™ (Domain and hosting)
 Comtrain™ (IT training)
 Viacon™ (Video conferencing)



 Prism™ (Web development)
Product or Departmental organization structure of COMSATS Company is in
following Figure;

Management Team

Asim Shahryar Husain
Chief Executive Officer

Muhammad. Hassan



General Manager (Administration & Planning)

Abid.Shah
General Manager (Accounts)

Quddus.Qazi
General Manager (Sales & Marketing)

Abdul.Rehman
General Manager(Operations), Islamabad

Muhammad.Junaid
General Manager(Operations), Faisalabad

Nadeem.Akhtar
General Manager(Operations), Sialkot

Khawaja.Farrukh.Arshad
Deputy General Manager(Operations), Lahore

Syed.Ghulam.Muhammad.Sajjad
Deputy General Manager(Operations), Karachi

Gul.Rauf.Afridi
Manager(Operations), Peshawar

Naeem.Rose
Manager (Operations), Multan

 Merits, Demerits, deficiencies or strength of COMSATS.CO’s
Organizational Structure:

Merits:
COMSAT Company has adopted divisional and product oriented
organization structure. Under these organizational structures company is
successfully conducting its managerial and inter-organization communication.
Merits of COMSAT Company’s organizational structures (Divisional and product)
are following:
These adopted structures divide the COMSAT according to the type of work,
region, and product. Because of these divisions, it is very easy for management
or super-authorities to check and manage each region or divisions; they can
plan better strategies and plans to get maximum progress. Divisional structure
divides the employees based on the product/customer segment/geographical
location and each division is responsible for certain product and has its own
resources such as finance, marketing, equipments, maintenance...Etc. These



structures allows for flexibility and quick response to environmental changes in
Pakistan.
COMSAT employees and managers can easily focus upon a single product or
service, with a leadership structure that supports its major strategic objectives.
Having its own president or vice president makes it more likely the division will
receive the resources it needs from the company. Also, a division's focus allows
it to build a common culture and esprit de corps that contributes both to higher
morale and a better knowledge of the division's portfolio.
Demerits:
A divisional structure also has weaknesses. COMSAT structure has disadvantage
that allow office politics instead of sound strategic thinking to affect its view on
such matters as allocation of company resources these divisions bring
compartmentalization that lead to incompatibilities. These structures result in
duplication of resources because, for example we need to have equipment, for
each division. Obviously, it does not support the exchange of knowledge
between people working in the same profession because part of them is
working in one division and the others are working in other divisions.
Deficiencies of COMSAT. Co:
Because or COMSAT’s divisional structure, team working is minimum.
Weak promotional activity
Less financial resources
Late Decision Making
Less advertising
No formal training programs

Lack of negotiating power
Relying on business to customer approach and not paying attention to
importance of business to business approach

Strengths of COMSAT.CO’s organization structure:

Strong Security System
Better telecommunication system
Usage of latest and advanced technology
Well organized departments
Strong interdepartmental relationship
Upgrading on a regular bases
On Door Billing
Computerized billing System



Efficient Customers support
Three Services on a single modem
Compensation for downtime
Highly motivated workforce
Friendly environment
Cheap labor
It will be easy to understand that COMSATS should need proper attention to
improve its strength like skilled workforce by analyzing above mention
SWOT. Workforce on regular bases needs training and motivational
programs. It is doing upgrading on regular bases but there is a gap in regular
bases so it should pay attention to minimize that gap.

If we analyze weaknesses then it should be clear that COMSATS increase
number of permanent employees and also make sure of participation of
employees in decision making process.

If we analyze opportunities then it should be quite clear the COMSATS should
concentrate more attention to corporate clients as well as the home users.

If we analyze identified threats then we realize few of them are out of its
control like taxes, laws, regulations, economical conditions, and availability
of basic facilities but few of them like competing with competitors is in its
access so it has to fight and make sure its success.

According to my conclusion, COMSATS Internet Services is the oldest internet
provider in Sialkot and also in Pakistan were moving so fast and hopefully it will
be in a top list of respected internet provider in near future. IT usage has opened
new horizons for the business world and is creating a lot of opportunities and
strength throughout the organization. Advance technology, machinery
compatible organization structures, inter-organization better communication
prove competitive edge over its competitors. The thinking approach towards


betterment of managerial skills by adoption of favorable organization structure
increase COMSAT’s value in mind of employees as well as in costumers.

There are following recommendations:

It should promote team work within organization.
It should try to establish its own brand name.
It should hire skilled workers.
It should increase salaries to the existing employees so that they should
work with devotion
It should diversity business and educational information available on the
Internet and the web
It should increase its workforce capabilities.
It should use its workforce say in decision making in order to get their
participation and confidence.

Reference and Sources Used

Mr. Shahzaib (Customer Support Reprehensive), Mr. Mohsin shrez (Sales and
Marketing) and Muhammad saeed (technical supervisor) helped me a lot in the
completion of my Assignment report.

I used different sources and references and few of them are listed here:

Literature Sources:

AIOU Text Book:

Management (10th edition) by Stephen. P. Robbins and Mary coulter

E-Books: Information System


Strategic Management www.comsats.net.pk

Data Base Management System www.skt.comsats.net.pk

Principles of ma www.google.com

www.yahoo.com

Online Portals: www.wikipedia.com

Annexes:
I have used the following supportive material for the preparation of my report.

Questionnaires:

Department Name
Employee Name
Employee Designation
Employee Performance
Employee Responsibilities
Employee Suggestions


Assinment 2

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