Assinment 2


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Assinment 2

  1. 1. Assignment #2: Organization structure 1DEDICATIONI dedicate this report to my parents and friends in recognitionof their worth and to my teachers who are the guiding forcefor me and i t is t heir e ff ort and har d wor k that showe dme t he pat h of success and prosperity which would be there forme for the rest of my life.My life motto is;“Keep your dreams alive, understand to achieve anything requiresfaith, 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
  2. 2. Assignment #2: Organization structure 2ACKNOWLEDGEMENT TO ;First of all to the praise is for Allah, the most merciful and beneficent, whoblessed me with the knowledge, gave me the courage and allowed me toaccomplish this task.After ALLAH, is the last prophet Muhammad (S.A.W) who brought for usexposure and unlimited knowledge.I am especially indebted to all my teachers for instilling in me enoughknowledge to be able to carry myself efficiently during that assignment.Secondly, I am bound to thank all the staff of Comsat. In particular Iam grateful to Mr. Nadeem akthar (General Manager), Mr. Arshad anjum(Account Officer) and specially thanks to Mr. Shahzaib (Customer SupportReprehensive), Mr. Mohsin shrez (Sales and Marketing) and Muhammad saeedtheir inspiringguidance, remarkable suggestions, constant encouragement,keen interest, constructive criticism and friendly discussionhelped me to learn and enabled me to complete this report efficiently….. Muhammad Fazeel AyazPrepared by: M Fazeel Ayaz Company: COMSATS International. Co
  3. 3. Assignment #2: Organization structure 3Executive summaryAccording to my roll number my topic of assignment #2 is ” Select amultinational 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 COMSATSInternet 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 andnow successfully operating 10 major cities of Pakistan and providing Internetproducts and services to people of Pakistan. CIS headquarter is in Islamabad. Itprovides a variety of Internet services like dial up, ISDN, leased line andBroadband connectivity through wireless & DSL media along with value addedservices to corporate and residential users.COMSATS Internet Services now a premier Internet backbone provider is linkedwith world’s major Internet access point which provides high speed anduninterruptible Internet access to subscribers.CIS clients include reputed national and international organizations andcompanies; technology and business companies, foreign missions, consulatesand embassies, NGO’s, social development and research organizations coupledwith good percentage of residential user. Till date CIS has 65000 customers inits list.Prepared by: M Fazeel Ayaz Company: COMSATS International. Co
  4. 4. Assignment #2: Organization structure 4 Objective of the StudyThe primary objective of an organization is to set up relationships andprocedures in such a way that employees can obtain the best results from theirefforts. In an organization, jobs are generally organized into teams, units,departments, divisions, and so forth thereby combining individual efforts andproducing more than individuals could produce separately. The moreappropriate the structure supporting relationships and procedures governingemployee actions, the smoother and more efficiently the organization willoperate. The framework of an organizations structure is created through aprocess called organizational design that defines the six key design decisions,which include division of labor, departmentalization, span of control, chain ofcommand, formulization and delegation of authority.Organizational structure is a business skeleton. Organizations are alive andbreathing, so they require something to give them shape and support their lifefunctions. Organizational structures help everyone involved in a company toclarify and understand everyone elses 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.Prepared by: M Fazeel Ayaz Company: COMSATS International. Co
  5. 5. Assignment #2: Organization structure 5Introduction to the topicTopic: Organizational structure and design: Organizing the process by whichmanagers establish working relationships among employees to achieve goals. Organizational structure refers to the way tasks are divided up, how the workflows, how this flow is coordinated and the forces and mechanisms that allowthis coordination to occur. The framework of an organizations structure iscreated through a process called organizational design that defines thesix key design decisions, which include division of labor,departmentalization, span of control, Chain of command, formulizationand delegation of authority.Organizational design is a process by which managers create a specific type oforganizational structure and culture so that a company can operate in the mostefficient and effective wayPrepared by: M Fazeel Ayaz Company: COMSATS International. Co
  6. 6. Assignment #2: Organization structure 6 Six Key Elements of Organization Structure: An organization structure defineshow job tasks are formally divided, grouped and coordinated. There aresix elements that mangers need to address when they design theirorganization’s structure. These are :- a) Work specialization. b)Departmentalization. c) Chain of command. d) Span of control. e) Centralization& Decentralization. f) Formalization1. Work Specialization or division of labor: It refers to the degree to whichtasks in the organization are subdivided into separate jobs. The essence of workspecialization is that, rather than an entire job being done by one individual, it isbroken down into a number of steps, with each step being completed by aseparate individual. Most managers today see work specialization as neitherobsolete nor an unending source of increased productivity rather managersrecognize the economies it provides in certain types of jobs and the problems itcreates when it’s carried too far. You’ll find, for example, high workspecialization being used by McDonald to efficiently make and sell hamburgersand fries, and by medical specialists in most health maintenance organizations.On the other hand, companies like Saturn Corporation have had success byPrepared by: M Fazeel Ayaz Company: COMSATS International. Co
  7. 7. Assignment #2: Organization structure 7broadening the scope of jobs and reducing specialization.Figure 1.1: Work Specialization or division of labor2. Departmentalization: Once the jobs have been divided through workspecialization, these jobs have to be grouped together so that common taskscan be coordinated. The basis by which jobs are grouped together is calleddepartmentalization.Prepared by: M Fazeel Ayaz Company: COMSATS International. Co
  8. 8. Assignment #2: Organization structure 8The activities can be grouped by functions performed. A Manufacturingmanager 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 DepartmentilazationFigure 1.5: Types of DepartmentalizationPrepared by: M Fazeel Ayaz Company: COMSATS International. Co
  9. 9. Assignment #2: Organization structure 9(i) Functional Departmentalization:A method for separating the activities performed withinan organization into groups differentiated by the function they perform. Forexample, a business employing functional departmentalization would tend togroup 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 geographicalregions groups jobs on the basis of territory or geography. For example, Merck,a major pharmaceutical company, has its domestic sales departmentalized byregions such as Northeast, Southeast, Midwest, Southwest, and Northwest. Ifan organizations customers are geographically dispersed, it can group jobsbased on geography. Organizations that are spread over a wide area may findadvantages in organizing along geographic lines so that all the activitiesperformed in a region are managed together.Prepared by: M Fazeel Ayaz Company: COMSATS International. Co
  10. 10. Assignment #2: Organization structure 10(iii) Product Departmentalization: Large, diversified companies are often organizedaccording to product. All the activities necessary to produce and market aproduct or group of similar products are grouped together. The advantage ofthis type of structure is that the personnel in the group can focus on theparticular needs of their product line and become experts in its development,production, and distribution.Prepared by: M Fazeel Ayaz Company: COMSATS International. Co
  11. 11. Assignment #2: Organization structure 11(iv) Process Departmentalization: Departmentalization by process groups jobs onthe basis of product or customer flow. For example: Manufacturing processesare the steps through which raw materials are transformed into a final product.The manufacturing process begins with the creation of the materials from whichthe design is made. Manufacturing processes can include treating (such as heattreating or coating), machining, or reshaping the material. departments.(v) Customer/Market Departmentalization: An organization may find it advantageous toorganize according to the types of customers it serves. For example, adistribution company that sells to consumers, government clients, largebusinesses, and small businesses may decide to base its primary divisionson these different markets.3. Chain of Command It is an unbroken line of authority that extends from the topof the organization to the lowest level and clarifies who reports to whom. Itanswers questions for employees such as” To whom do I go if I have aproblem?” and ‘To whom am I responsible?”The unity of command principle helps preserve the concept of an unbroken lineof authority. It states that a person should have one and only one superior towhom he or she is directly responsible. If the unity of command is broken, anemployee might have to cope with conflicting demands or priorities fromseveral superiors.4. Span of control: It refers to the number of subordinates a manager canefficiently and effectively direct. Span of control is important because, to a largedegree, it determines the number of levels and managers and organization hasall things being equal the wider or larger the span, the more efficient theorganization.5. Centralization and Decentralization : Centralization refers to the degree to whichdecision making is concentrated at a single point in the organization. "Adecentralized system is one which requires multiple parties to make their ownPrepared by: M Fazeel Ayaz Company: COMSATS International. Co
  12. 12. Assignment #2: Organization structure 12independent decisions" In such a decentralized system, there is no singlecentralized authority that makes decisions on behalf of all the parties.6. Formalization: It refers to the degree to which job within the organizationare standardized. If a job is highly formalized then the job incumbent has aminimum amount of discretion over what is to be done, when it is to be doneand how it is to be done. Employees can be expected always to handle the sameinput in exactly same way, resulting in a consistent and uniform output. Centralization Decentralization Mechanistic and Organic OrganizationsPrepared by: M Fazeel Ayaz Company: COMSATS International. Co
  13. 13. Assignment #2: Organization structure 13Mechanistic organizationThe bureaucracy; a structure that is high in specialization, formalization, andcentralization. A mechanistic organizational structure works well for manufacturingorganizations and those in industries with very low tolerance for variation. The structurecreates a hierarchical chain of command with directions orally passed from manager tosubordinate. Mechanistic organizations do not allow a free flow of information betweendepartments, according to the management website Values Based Management. For thisreason, the structure does not work well for organizations with frequently changingobjectives, high creativity or the need for extensive information exchange.Organic organizationAn adhocracy; a structure that is low in specialization, formalization, andcentralization. Business owners and managers will often implement an organicorganizational 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 canimprove the companys flexibility. Organizational structures need not besingular in nature. Owners and managers can create a hybrid structure thatseparates the company along functions or product lines while still retaining theorganic structure. Using a hybrid style can further enhance the companyseffectiveness in the market.Prepared by: M Fazeel Ayaz Company: COMSATS International. Co
  14. 14. Assignment #2: Organization structure 14 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 Structureiii. 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. Prepared by: M Fazeel Ayaz Company: COMSATS International. Co
  15. 15. Assignment #2: Organization structure 15 ii Functional Structure: Functional structures are useful for relatively big companies. Employees withinthe functional structure are differentiated to perform a specialized set of tasks.For example, the marketing department would be staffed only with responsiblefor the marketing of the companys products. Functional structures arecharacterized by a large degree of formalization, making each function relianton standardized ways of operating. Decision-making power is mostlycentralized at the top level. Figure 7: Organization according to Functioniii Divisional structure: A divisional structure can group employees by productdivisions, geographic divisions or market divisions. The advantages of divisionalstructures include higher quality products and customer service because ofspecialization, facilitated communication and teamwork within divisions andencouragement of hands-on problem-solving. In addition, it is easier for upperPrepared by: M Fazeel Ayaz Company: COMSATS International. Co
  16. 16. Assignment #2: Organization structure 16management to evaluate and reward employees through the increased jobaccountability inherent in divisional organizational structures.2. Contemporary organization structure: Contemporary organizationalstructures include matrix, virtual, lattice and networked organizations. Thenetworked organization is the most contemporary of them all because itrepresents the complete antithesis of the traditional hierarchical structure. Information and ideas flow in all directions in the contemporaryorganizational structure.The team structure, matrix structure, the boundary-free structure are the maintypes of contemporary organization structure.Team structure: As an organization grows, its structure becomes increasinglyimportant. A large organization cant be managed properly unless it has astrong internal structure. There are several ways to structure an organization,including by function or by department. One of the most common is a teamstructure. A team is composed of employees who work together on a specificproject. A team structure has the advantage of speeding up the work flow andlowering costs. It also generally improves employee motivation and eliminatesunnecessary layers of management.Prepared by: M Fazeel Ayaz Company: COMSATS International. Co
  17. 17. Assignment #2: Organization structure 17(ii) Matrix organization A matrix organization structure introduces, or at least recognizes, thereal life complexity of our business environment. Geography, function,technology, business unit and technology (among others) are important, so whynot recognize this reality in our matrix organizations structure.However, a matrix organization structure also introduces a higher level ofinternal complexity and some additional people management challenges, sothere must be significant advantages to a matrix organization structure thatoutweigh the matrix people management challenges.Matrix organization structures were introduced in the airspace industry in the50s to cope with complex projects. Since then many thousands of organizations,often prompted by the large strategy consultancies, have adopted the matrixorganization structure to help deal with internal and external complexity.Prepared by: M Fazeel Ayaz Company: COMSATS International. Co
  18. 18. Assignment #2: Organization structure 18(iii) Boundary-free structure: The term "boundary less" has come to describe thebusiness organization of today and the future as well as its employees. A boundary lessorganization is the opposite of a bureaucracy with numerous barriers and divisions. Incontrast, the organization without boundaries offers interaction and networking amongprofessionals inside and outside the organization. The organizational model is fluid andhighly 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 emphasizecollaboration on projects centered on technology, information, and expertise.Prepared by: M Fazeel Ayaz Company: COMSATS International. Co
  19. 19. Assignment #2: Organization structure 19(iii) Practical Study of Organization With Respect to TopicIntroduction to the COMSATS International. Co : COMSAT is an international, inter-government science organization, aiming at socio-economic uplift of the thirdworld through useful applications of science and technology. COMSATS internetservices (CIS) is one of its projects which started its operation in1996. CIS ispioneer ISP of Pakistan when it launched internet services for the first time inthe country then and is now successfully operating in 10 major cities ofPakistan. CIS headquarter is in Islamabad. It establish in Sialkot is 1998. Itprovides a variety of Internet services like dial up, ISDN, leased line andBroadband connectivity through wireless & DSL media along with value addedservices to corporate and residential users. CIS specialty in LAN & WANPrepared by: M Fazeel Ayaz Company: COMSATS International. Co
  20. 20. Assignment #2: Organization structure 20connectivity coupled with Sun, Microsoft, Intel, Compaq and Cisco System’scertified engineers distinguish us from our competitors.Mission / VisionOur VisionOur vision is to provide innovative quality Internet services and customersupport to Internet users in Pakistan including consumers and corporatecustomers. CIS will also contribute to COMSATS mission of using technology forthe 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 departmentsBilling, Customer Support, DSL, Wireless and Technician Departments. The CSA,DSL and Billing Department where I survey to collect data were so airy, cleanand organized. The Server room which controls all Sialkot Client connectivity isalso 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, 655Prepared by: M Fazeel Ayaz Company: COMSATS International. Co
  21. 21. Assignment #2: Organization structure 21 6 PRX Pasrur Road 354, 361 6520, 6521, 6522, 6523, 7 SMB Sambrial 6524Organizational Structure COMSATS is a multinational company.Organization structure is widened to many countries or regions and theirdistricts. 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. CISis the pioneer ISP of Pakistan when it launched Internet services for the first time in thecountry then and is now successfully operating in 7 major cities of Pakistan including: Islamabad Rawalpindi Peshawar Lahore Karachi Faisalabad SialkotPrepared by: M Fazeel Ayaz Company: COMSATS International. Co
  22. 22. Assignment #2: Organization structure 22Figure no 10: Divisional Organizational structure of COMSATS. CoProduct or Departmental organization structure: CIS provides a variety of Internetservices including dialup, ISDN, Wi-Fi DSL, Point-to-point wireless links,LAN/WAN setup, and video conferencing. CIS has a data center also backed upby two generators and five UPSs which hosts domains and websites of morethan 3000 customers. CIS provides data center-related services also includingdomain registration, website hosting, collocation, and web developmentThe 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)Prepared by: M Fazeel Ayaz Company: COMSATS International. Co
  23. 23. Assignment #2: Organization structure 23  Prism™ (Web development)Product or Departmental organization structure of COMSATS Company is infollowing Figure;Management TeamAsim Shahryar HusainChief Executive OfficerMuhammad. HassanPrepared by: M Fazeel Ayaz Company: COMSATS International. Co
  24. 24. Assignment #2: Organization structure 24General Manager (Administration & Planning)Abid.ShahGeneral Manager (Accounts)Quddus.QaziGeneral Manager (Sales & Marketing)Abdul.RehmanGeneral Manager(Operations), IslamabadMuhammad.JunaidGeneral Manager(Operations), FaisalabadNadeem.AkhtarGeneral Manager(Operations), SialkotKhawaja.Farrukh.ArshadDeputy General Manager(Operations), LahoreSyed.Ghulam.Muhammad.SajjadDeputy General Manager(Operations), KarachiGul.Rauf.AfridiManager(Operations), PeshawarNaeem.RoseManager (Operations), Multan Merits, Demerits, deficiencies or strength of COMSATS.CO’s Organizational Structure:Merits: COMSAT Company has adopted divisional and product orientedorganization structure. Under these organizational structures company issuccessfully 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 managementor super-authorities to check and manage each region or divisions; they canplan better strategies and plans to get maximum progress. Divisional structuredivides the employees based on the product/customer segment/geographicallocation and each division is responsible for certain product and has its ownresources such as finance, marketing, equipments, maintenance...Etc. ThesePrepared by: M Fazeel Ayaz Company: COMSATS International. Co
  25. 25. Assignment #2: Organization structure 25structures allows for flexibility and quick response to environmental changes inPakistan.COMSAT employees and managers can easily focus upon a single product orservice, with a leadership structure that supports its major strategic objectives.Having its own president or vice president makes it more likely the division willreceive the resources it needs from the company. Also, a divisions focus allowsit to build a common culture and esprit de corps that contributes both to highermorale and a better knowledge of the divisions portfolio.Demerits:A divisional structure also has weaknesses. COMSAT structure has disadvantagethat allow office politics instead of sound strategic thinking to affect its view onsuch matters as allocation of company resources these divisions bringcompartmentalization that lead to incompatibilities. These structures result induplication of resources because, for example we need to have equipment, foreach division. Obviously, it does not support the exchange of knowledgebetween people working in the same profession because part of them isworking 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 approachStrengths 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 SystemPrepared by: M Fazeel Ayaz Company: COMSATS International. Co
  26. 26. Assignment #2: Organization structure 26 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 internetprovider in Sialkot and also in Pakistan were moving so fast and hopefully it willbe in a top list of respected internet provider in near future. IT usage has openednew horizons for the business world and is creating a lot of opportunities andstrength throughout the organization. Advance technology, machinerycompatible organization structures, inter-organization better communicationprove competitive edge over its competitors. The thinking approach towardsPrepared by: M Fazeel Ayaz Company: COMSATS International. Co
  27. 27. Assignment #2: Organization structure 27betterment of managerial skills by adoption of favorable organization structureincrease 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 UsedMr. Shahzaib (Customer Support Reprehensive), Mr. Mohsin shrez (Sales andMarketing) and Muhammad saeed (technical supervisor) helped me a lot in thecompletion 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 coulterE-Books: Information SystemPrepared by: M Fazeel Ayaz Company: COMSATS International. Co
  28. 28. Assignment #2: Organization structure 28Strategic Management Base Management System of ma Portals: www.wikipedia.comAnnexes: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 SuggestionsPrepared by: M Fazeel Ayaz Company: COMSATS International. Co
  29. 29. Assignment #2: Organization structure 29Prepared by: M Fazeel Ayaz Company: COMSATS International. Co