Project on the Effectiveness ofOrganizational Structure inEureka Forbes Presented by: Krishna Kumar Ritesh A Shukla Ankit Vashishth Nitin Kumar Pankaj Giri
INTRODUCTION ABOUT EUREKA FORBES company was incorporated in 1931 and is based in Mumbai, India.Eureka Forbes, Ltd. offers water purification systems, vacuum cleaners, andair purifiers.The company, regarded as the pioneer of direct marketing, was planning tofocus more on the retailing business in the future.Eureka Forbes is one of the first direct selling companies in India.Eureka Forbes gave a lot of importance to Customer RelationshipManagement (CRM) and tried to maintain high level of post-sale customercontact.
In 2001, with a customer base of 3 million,Eureka Forbes sales turnover stood at Rs. 3.68bn, 32% of which came from vacuum cleaners and45% from water purifiers.By 2002, the company was the undisputedmarket leader in the vacuum cleaner segmentwith 75% market share and water purifiersegment with 85% market share.Winner of the Frost & Sullivan Award for theBest Company from the domestic point of use,Water treatment systems and Customer ServiceLeadership Award.
ORGANIZATIONAL STRUCTUREThe way in which job tasks are formally divided,grouped, and coordinated. SIX ELEMENTS OF AN ORGANIZATION’SSTRUCTURE1. Work specialization2. Departmentalization3. Chain of command4. Span of control5. Centralization and decentralization6. Formalization
Objective of researchTo know which type of organization structureprevailing in the organizationTo know the satisfaction level of employees workingin their organization.To understand about the working environmentTo understand the reporting pattern of theemployees.
Research MethodologyPrimary Data : Primary Interviews and Sample QuestionnaireType of Research: Exploratory ResearchSample Unit: Middle level managersSecondary Data: Books and internetSize of Sample: 30Type of collection of primary data: QuestionnaireSample Area: Eureka Forbes( Okhla)
How well do you feel that the organization is able to provide value additionfor the employees. Very high high moderate low very low 7% 10% 10% 20% 53% Interpretation: As 37% of the employees are showing a high (positive)response, which generally means that nearly half of the sample mean are not satisfied with the organizational inputs towards the employees.
How well the organization is able to cope with the current market scenariowith respect to the competitive technology advantages? Very high high moderate low very low 10% 7% 10% 20% 53%Interpretation: As 17% of the employees are feeling high towards theencouragement of the newer and updated technologies and the larger % ofemployees are against , which generally resembles that company should checkout for the loopholes in the case of technology advancement.
How effective would be the decision making when comes to thecustomer focus and satisfaction level? Very high high moderate low very low 17% 13% 7% 20% 63%Interpretation: As 63% of the employees are showing low response, whichgenerally means that half of the sample mean are not satisfied with theorganizational inputs towards the focus on customer and increasing theirsatisfaction level.
Employees Suggestions in the case of work issues are taken to the extentof: Very high high moderate low very low 10% 7% 10% 20% 53%Interpretation: As 53% of the employees are feeling that theorganization is not participative in terms of work relatedsuggestions which generally means that autonomy of the work ismissing over there.
With how much effectively does the organization is able to communicateand pursue clear operational guidelines and operational strategies. Very high high moderate low very low 10% 7% 10% 20% 53%Interpretation: As 30% of the employees are showing a positiveresponse, which generally means that half of the sample mean are notsatisfied with the communication regarding to clear operational guidelinesand operational strategies.
•Do you get ample opportunities to innovate and show your creativity:a) Yes b) No Response of People 20 18 16 14 12 10 19 Response of People 8 6 11 4 2 0 Yes NoInterpretation:It is clearly visible from the above data that almost 63 percent people in thesample agreed that they do not get enough opportunities to come up with newideas and that the organization structure limits their creative bent of mind fromcoming into play.
• Achieving your team goal is a higher priority than any individual objective to an extent of: a) Very High b) High c) Very low d) Low e) Not at all Very high high low very low not at all 3% 3% 10% 20% 64%Interpretation:As the organization is promoting a team activity due to which higher priority is givento the team objective than to the individual objective.
FindingsMost of the employees are not satisfied with their work.Work specialization or division of labor is specified.Departmentalization is strict.Chain of command (clarifies who reports to whom) is clear. Butthe communication from the top management is distorted atvarious levels.Span of control is narrow.Only few of top managers got chance to innovate.
SuggestionsCompany is more of mechanistic model they shouldadopt an mix of mechanistic and organic model atmiddle level management.Company is operating in this business from 1931 andhas been following the mechanistic model wherebythe employees are not getting enough chances toinnovate.
limitationsLimited timeCompany was not allowing us to take data.Cost constraints.Low sample size.
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