Eureka Forbes is an Indian company established in 1931 that offers water purification systems, vacuum cleaners, and air purifiers. It has historically been a leader in the Indian market with over 75% market share for vacuum cleaners and 85% for water purifiers. The study examined Eureka Forbes' organizational structure and found that it primarily uses a mechanistic structure with strict departmentalization and chains of command. However, communication breaks down at lower levels and employees feel there are insufficient opportunities for innovation or creativity. The researchers suggest adopting a hybrid mechanistic-organic structure to give middle managers more flexibility while maintaining core processes.

1. Project on the Effectiveness of
Organizational Structure in
Eureka Forbes
Presented by:
Krishna Kumar
Ritesh A Shukla
Ankit Vashishth
Nitin Kumar
Pankaj Giri

2. INTRODUCTION
ABOUT EUREKA FORBES
 company was incorporated in 1931 and is based in Mumbai, India.
Eureka Forbes, Ltd. offers water purification systems, vacuum cleaners, and
air purifiers.
The company, regarded as the pioneer of direct marketing, was planning to
focus 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 Relationship
Management (CRM) and tried to maintain high level of post-sale customer
contact.

3.  In 2001, with a customer base of 3 million,
Eureka Forbes sales turnover stood at Rs. 3.68
bn, 32% of which came from vacuum cleaners and
45% from water purifiers.
By 2002, the company was the undisputed
market leader in the vacuum cleaner segment
with 75% market share and water purifier
segment with 85% market share.
Winner of the Frost & Sullivan Award for the
Best Company from the domestic point of use,
Water treatment systems and Customer Service
Leadership Award.

4. ORGANIZATIONAL STRUCTURE
The way in which job tasks are formally divided,
grouped, and coordinated.
SIX ELEMENTS OF AN ORGANIZATION’S
STRUCTURE
1. Work specialization
2. Departmentalization
3. Chain of command
4. Span of control
5. Centralization and decentralization
6. Formalization

5. Objective of research
To know which type of organization structure
prevailing in the organization
To know the satisfaction level of employees working
in their organization.
To understand about the working environment
To understand the reporting pattern of the
employees.

6. Research Methodology
Primary Data : Primary Interviews and Sample Questionnaire
Type of Research: Exploratory Research
Sample Unit: Middle level managers
Secondary Data: Books and internet
Size of Sample: 30
Type of collection of primary data: Questionnaire
Sample Area: Eureka Forbes( Okhla)

8. How well do you feel that the organization is able to provide value addition
for 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.

9. How well the organization is able to cope with the current market scenario
with 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 the
encouragement of the newer and updated technologies and the larger % of
employees are against , which generally resembles that company should check
out for the loopholes in the case of technology advancement.

10. How effective would be the decision making when comes to the
customer 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, which
generally means that half of the sample mean are not satisfied with the
organizational inputs towards the focus on customer and increasing their
satisfaction level.

11. Employees Suggestions in the case of work issues are taken to the extent
of:
Very high high moderate low very low
10% 7%
10%
20%
53%
Interpretation: As 53% of the employees are feeling that the
organization is not participative in terms of work related
suggestions which generally means that autonomy of the work is
missing over there.

12. With how much effectively does the organization is able to communicate
and 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 positive
response, which generally means that half of the sample mean are not
satisfied with the communication regarding to clear operational guidelines
and operational strategies.

13. •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 No
Interpretation:
It is clearly visible from the above data that almost 63 percent people in the
sample agreed that they do not get enough opportunities to come up with new
ideas and that the organization structure limits their creative bent of mind from
coming into play.

14. • 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 given
to the team objective than to the individual objective.

15. Findings & suggestions

16. Findings
Most 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. But
the communication from the top management is distorted at
various levels.
Span of control is narrow.
Only few of top managers got chance to innovate.

17. Suggestions
Company is more of mechanistic model they should
adopt an mix of mechanistic and organic model at
middle level management.
Company is operating in this business from 1931 and
has been following the mechanistic model whereby
the employees are not getting enough chances to
innovate.

18. limitations
Limited time
Company was not allowing us to take data.
Cost constraints.
Low sample size.

19. Thank you for your kind patience listening.
You are most welcome for any query.