semester 2 assgn. 2, bureaucratic vs matrix structure
TRANSCRIPT
[ T Y P E T H E C O M P A N Y A D D R E S S ]
ASSIGNMENT 2
MANAGEMENT &
ORGANIZATION
BUREAUCRATIC
VS
MATRIX STRUCTURE
ZAHID NAZIR
Roll No. AB523655
MBA Executive
2nd Semester , Spring 2009
A L L A M A I Q B A L O P E N U N I V E R S I T Y , I S L A M A B A D
C O M M O N W E A L T H O F L E A R N I N G E X E C U T I V E M B A P R O G R A M M E
Zahid Nazir
Roll No. 523655
2
ORGANIZATIONAL STRUCTURE
Introduction
Organization is two or more people who work together to achieve
organizational goals and objectives efficiently and effectively. Also it can
identify as nonrandom arrangement of components or parts interconnected in
a manner as to constitute a system identifiable as a unit. In an organization,
they use organizational structures for their works. We can identify there are
three traditional organizational design such as simple, functional, divisional.
Organizations face more strength and weakness in these structures. Nowadays
they try to ignore that weakness and develop these organizational designs as
Team structure, Matrix structure, Project structure, Boundaryless structure and
Learning structure.
Using those contemporary organizational designs organizations gain there are
many advantages. Employees are more involved and empowered, Reduce
barriers among functional areas, fluid and flexible design that can respond to
environmental changes, faster decision making, highly flexible and responsive,
draws on talent wherever it’s found, organization can cope with environmental
changes and employees feel free to make decisions are advantages. So,
contemporary organizational designs are better than traditional organizational
structures to the organizations.
“Organizational structure is the formal framework by which job tasks are
divided, grouped, and coordinated”. When managers develop or change and
organization’s structure, they are engaged in organizational design, a process
that involves decisions about six key elements:
Stephen P.Robbins & Mary Coulter
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Roll No. 523655
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• Work Specialization
• Departmentalization
• Chain of Command
• Span of Control
• Centralization and Decentralization
• Formalization
Organizational design is engaged when managers develop or change an
organization's structure. Organizational Design is a process that involves
decisions about the following six key elements:
i). WORK SPECIALIZATION
Describes the degree to which tasks in an organization are divided into
separate jobs. The main idea of this organizational design is that an
entire job is not done by one individual. It is broken down into steps, and
a different person completes each step. Individual employees specialize
in doing part of an activity rather than the entire activity.
ii). DEPARTMENTALIZATION
It is the basis by which jobs are grouped together. For instance every
organization has its own specific way of classifying and grouping work
activities.
There are five common forms of departmentalization:
a). Functional Departmentalization. As shown in the Figure, it groups jobs
by functions performed. It can be used in all kinds of organizations; it
depends on the goals each of them wants to achieve.
Figure
Different aspects on this type of departmentalization:
Positive Aspects
• Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientations
• Coordination within functional area
• In-depth specialization
b). Product Departmentalization
manager is responsible of an area within the organization depending of
his/her specialization
Different aspects on this type of departmentalization:
Positive Aspects
• Allows specialization in particular products and services
• Managers can become experts in their industry
• Closer to customers
Manager
Engineering
4
Figure - Functional Departmentalization
Different aspects on this type of departmentalization:
Positive Aspects Negative Aspects
Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientations Coordination within functional area
depth specialization
• Poor communication across functional areas
• Limited view of organizational goal
Product Departmentalization. It groups jobs by product line. Each
manager is responsible of an area within the organization depending of
his/her specialization.
Different aspects on this type of departmentalization:
Positive Aspects Negative Aspects
Allows specialization in particular products and services Managers can become experts in their industry Closer to customers
• Duplication of functions • Limited view of
organizational goals
Plant Manager
Manager
Accounting
Manager
ManufacturingManager HR
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Roll No. 523655
Negative Aspects
Poor communication across functional areas
organizational goals
. It groups jobs by product line. Each
manager is responsible of an area within the organization depending of
Aspects
Duplication of functions
organizational goals
Manager HRManager
Purchasing
c). Geographical Departmentalization
territory or geography.
Figure: Geographical Departmentalization
Different aspects on this type of departmentalization:
Positive Aspects
• More effective and efficient handling of
Sales Director
Punjab Region
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Figure : Product Departmentalization
Departmentalization. It groups jobs on the basis of
territory or geography.
Figure: Geographical Departmentalization
Different aspects on this type of departmentalization:
Positive Aspects Negative Aspects
More effective and efficient handling of
• Duplication of functions • Can feel isolated from
Vice President
for Sales
Sales Director
Sindh Region
Sales Director
NWFP Region
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Roll No. 523655
. It groups jobs on the basis of
Negative Aspects
Duplication of functions Can feel isolated from
Sales Director
Balochistan
Region
specific regional issues that arise
• Serve needs of unique geographic markets better
d). Process Departmentalization
customer flow.
Figure: Process Departmentalization
Different aspects on this type of departmentalization:
Positive Aspects
• More efficient flow of work activities
e). Customer Departmentalization
customers.
Different aspects on this type of departmentalization:
Positive Aspects
• Customers' needs and problems can be met by specialists
Engineering
Manager
Production
Manager
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specific regional issues that arise Serve needs of unique geographic markets
other organizational areas
Process Departmentalization. It groups on the basis of product or
Figure: Process Departmentalization
Different aspects on this type of departmentalization:
Positive Aspects Negative Aspects
More efficient flow of work activities
• Can only be used with certain types of products
Customer Departmentalization. It groups jobs on the basis of common
Different aspects on this type of departmentalization:
Positive Aspects Negative Aspects
Customers' needs and problems can be met by
• Duplication of functions • Limited view of
organizational goals
Site Director
Production
Manager
Quality
Manager
Logistics
Manager
Procurement
Manager
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Roll No. 523655
other organizational
. It groups on the basis of product or
Negative Aspects
Can only be used with certain types of products
groups jobs on the basis of common
Duplication of functions
Procurement
Manager
Finance
Manager
Figure: Customer Departmentalization
iii). CHAIN OF COMMAND
It is defined as a continuous line of authority that extends from upper
organizational levels to the lowest levels and clarifies who reports to
whom. There are three important concepts attached to this theory:
• Authority: Refers to the rights inherent in a
tell people what to do and to expect them to do it.
• Responsibility
• Unity of command
should report to only one manager.
iv). SPAN OF CONTRO
It is important to a large degree because it determines the number of
levels and managers an organization has. Also, determines the number
of employees a manager can efficiently and effectively manage.
Manager
Accounts
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Figure: Customer Departmentalization
CHAIN OF COMMAND
It is defined as a continuous line of authority that extends from upper
organizational levels to the lowest levels and clarifies who reports to
whom. There are three important concepts attached to this theory:
: Refers to the rights inherent in a managerial position to
tell people what to do and to expect them to do it.
Responsibility: The obligation to perform any assigned duties.
Unity of command: The management principle that each person
should report to only one manager.
SPAN OF CONTROL
It is important to a large degree because it determines the number of
levels and managers an organization has. Also, determines the number
of employees a manager can efficiently and effectively manage.
Director of
Sales
Manager
Retail
Accounts
Manager
Wholesale
Accounts
Manager
Government
Accounts
Zahid Nazir
Roll No. 523655
It is defined as a continuous line of authority that extends from upper
organizational levels to the lowest levels and clarifies who reports to
whom. There are three important concepts attached to this theory:
managerial position to
tell people what to do and to expect them to do it.
: The obligation to perform any assigned duties.
: The management principle that each person
It is important to a large degree because it determines the number of
levels and managers an organization has. Also, determines the number
of employees a manager can efficiently and effectively manage.
Manager
Government
Accounts
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Roll No. 523655
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v). CENTRALIZATION AND DECENTRALIZATION
More Centralization More Decentralization
• Environment is stable • Lower-level managers are not as
capable or experienced at making decisions as upper-level managers.
• Lower-level managers do not want to have say in decisions
• Decisions are significant. • Organization is facing a crisis or
the risk of company failure. • Company is large. • Effective implementation of
company strategies depends on managers retaining say over what happens.
• Environment is complex, uncertain.
• Lower-level managers are capable and experienced at making decisions.
• Lower-level managers want a voice in decisions.
• Decisions are relatively minor. • Corporate culture is open to
allowing managers to have a say in what happens.
• Company is geographically dispersed.
• Effective implementation of company strategies depends on managers having involvement and flexibility to make decisions
vi). FORMALIZATION
It refers to the degree to which jobs within the organization are
standardized and the extent to which employee behavior is guided by
rules and procedures.
Zahid Nazir
Roll No. 523655
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TYPES OF ORGANIZATIONAL STRUCTURES
In making organizational design decisions, managers have some common
structural designs from which to choose. Most commonly we consider about
two organizational designs. These are:
� Traditional organizational structure
� Contemporary organizational structure.
TRADITIONAL ORGANIZATIONAL STRUCTURE
When we consider the traditional organizational design, especially there are
three major types of structures. They are can be listed out:
• Simple structure
• Functional structure
• Divisional structure
Disadvantages
• Lack of flexibility to changing mission needs/rapidly changing world
• Internal and external communication barriers (ideas are not
communicated)
• Slow/Poor in responding to customer requirements
• Failure to get things done
• Customers/Vendors have a hard time dealing with the organization
(multiple/unknown contacts)
Due to above reasons they need to move in creative ways to structure and
organize works and to make their
of customers, employees and other organizational constituents.
In this century, there are more favorable concepts that have being generated,
especially due to global village concept most of organizations have to
their organizational structures in order to achieve their overall objectives
through making employees’ job satisfaction. Therefore the contemporary
structure is used by organizations.
SIMPLE STRUCTURE
A simple structure is defined as a design with
spans of control, centralized authority, and little formalization. This type of
design is very common in small start up businesses. For example in a business
with few employees the owner tends to be the manager and controls a
functions of the business. Often employees work in all parts of the business
and don’t just focus on one job creating little if any departmentalization. In this
type of design there are usually no standardized policies and procedures. When
the company begins to expand then the structure tends to become more
complex and grows out of the simple structure.
Sales
Person
Sales
Person
10
Due to above reasons they need to move in creative ways to structure and
organize works and to make their organizations more responsive to the needs
customers, employees and other organizational constituents.
In this century, there are more favorable concepts that have being generated,
especially due to global village concept most of organizations have to
their organizational structures in order to achieve their overall objectives
through making employees’ job satisfaction. Therefore the contemporary
structure is used by organizations.
A simple structure is defined as a design with low departmentalization, wide
spans of control, centralized authority, and little formalization. This type of
design is very common in small start up businesses. For example in a business
with few employees the owner tends to be the manager and controls a
functions of the business. Often employees work in all parts of the business
and don’t just focus on one job creating little if any departmentalization. In this
type of design there are usually no standardized policies and procedures. When
mpany begins to expand then the structure tends to become more
complex and grows out of the simple structure.
Simple Structure
Owner
Dept. Store
Sales
Person
Sales
Person
Sales
Person
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Roll No. 523655
Due to above reasons they need to move in creative ways to structure and
organizations more responsive to the needs
customers, employees and other organizational constituents.
In this century, there are more favorable concepts that have being generated,
especially due to global village concept most of organizations have to revise
their organizational structures in order to achieve their overall objectives
through making employees’ job satisfaction. Therefore the contemporary
low departmentalization, wide
spans of control, centralized authority, and little formalization. This type of
design is very common in small start up businesses. For example in a business
with few employees the owner tends to be the manager and controls all of the
functions of the business. Often employees work in all parts of the business
and don’t just focus on one job creating little if any departmentalization. In this
type of design there are usually no standardized policies and procedures. When
mpany begins to expand then the structure tends to become more
Sales
Person
FUNCTIONAL STRUCTURE
The functional organization, shown in Figure
rests with the functional heads; the structure is sectioned by departmental
groups. Staff members are divided to groups (e.g. financial, planning, public
relations, engineering, legal etc) according to their specialized
Some of these groups can be further subdivided into smaller functional groups.
For example, the Engineering Department may be further subdivided into
Mechanical Engineering and Electrical Engineering Units.
The main advantage of this organiz
group has complete control over its segment of the project, enforcing in this
way the application of standards across projects.
The disadvantages of the functional organization are that of speed, flexibility
and communication when attempting cross
functional organization the work is divided between the departments, any
query or request must be passed among department heads for approval,
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STRUCTURE
The functional organization, shown in Figure, is a structure in where authority
rests with the functional heads; the structure is sectioned by departmental
groups. Staff members are divided to groups (e.g. financial, planning, public
relations, engineering, legal etc) according to their specialized
Some of these groups can be further subdivided into smaller functional groups.
For example, the Engineering Department may be further subdivided into
Mechanical Engineering and Electrical Engineering Units.
The main advantage of this organizational structure is that each functional
group has complete control over its segment of the project, enforcing in this
way the application of standards across projects.
The disadvantages of the functional organization are that of speed, flexibility
ommunication when attempting cross–functional projects. Since in a
functional organization the work is divided between the departments, any
query or request must be passed among department heads for approval,
Zahid Nazir
Roll No. 523655
is a structure in where authority
rests with the functional heads; the structure is sectioned by departmental
groups. Staff members are divided to groups (e.g. financial, planning, public
relations, engineering, legal etc) according to their specialized knowledge.
Some of these groups can be further subdivided into smaller functional groups.
For example, the Engineering Department may be further subdivided into
ational structure is that each functional
group has complete control over its segment of the project, enforcing in this
The disadvantages of the functional organization are that of speed, flexibility
functional projects. Since in a
functional organization the work is divided between the departments, any
query or request must be passed among department heads for approval,
causing in this way delays. In addition, the re
project is shared among the functional managers (head of the departments)
and this may cause lack of ultimate responsibility for project management.
DIVISIONAL STRUCTUR
A divisional structure is made up of separate, semi
divisions. Within one corporation there may be many different divisions and
each division has its own goals to accomplish. A manager oversees their
division and is completely responsible for the success or failure of the
division. This gets managers to focus more on results knowing that they will
be held accountable for them.
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causing in this way delays. In addition, the responsibility of managing the
project is shared among the functional managers (head of the departments)
and this may cause lack of ultimate responsibility for project management.
DIVISIONAL STRUCTURE
A divisional structure is made up of separate, semi-autonomous units or
divisions. Within one corporation there may be many different divisions and
each division has its own goals to accomplish. A manager oversees their
division and is completely responsible for the success or failure of the
ts managers to focus more on results knowing that they will
be held accountable for them.
Zahid Nazir
Roll No. 523655
sponsibility of managing the
project is shared among the functional managers (head of the departments)
and this may cause lack of ultimate responsibility for project management.
tonomous units or
divisions. Within one corporation there may be many different divisions and
each division has its own goals to accomplish. A manager oversees their
division and is completely responsible for the success or failure of the
ts managers to focus more on results knowing that they will
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CONTEMPORARY ORGANIZATIONAL DESIGNS The flexible structural methods that job tasks are divided, grouped, and
coordinated for response to dynamic environmental factors.
To face highly dynamic and complex environment the contemporary
organizational structure is very important. In response to market place
demands for being lean, flexible and innovative current organization s use
these contemporary structures.
• Team structure
• Matrix structure
• Project structure
• Boundary less organizations
� Network organizations
� Modular organizations
� Virtual organizations
• Learning organizations
TEAM STRUCTURE
In the team base structure, the entire organization is made up of work groups
or teams that perform the organization’s work. In the team base structure,
employee’s empowerment is crucial because there is no line of managerial
authority from top to bottom. Rather, employee teams are free to design work
in the way think is best. However, the teams are also held responsible for all
work activity and performance results in their respective areas.
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In large organizations, the team structure complement what is typically a
functional or divisional structure. This allows the organizations to have
efficiency of a bureaucracy while providing the flexibility that team provide to
improve productivity at the operational level. Examples for team structure
• In marketing field sales force is use this team based structure. Also forces
use this team structure.
• Team based structure usually practice in unbranded products, like
furniture, electric equipments, and cosmetics.
Advantages Easy Integration. Since it is the most popularly used form of team organization
it is easy to integrate. This is so, because every developer is experienced with
such a structure and understands their role within it.
Better Management, More Control. Since the entire team is physically within
the same building, communication is at its peak, since face-to-face
communication is by far the best method in all situations. The physicality of this
team structure typically means it is easier to find and solve issues together. It is
also easier to spawn a team spirit, particularly in crunch periods, which can
spark increased motivation.
Greater productivity, in a team based structure there are various skills and
ability persons give their contribution produce a great output.
Disadvantages Significant Overheads. Of course hiring a full team and owning or renting office
space with all that goes with it (i.e. electricity, computers) a studio is going to
run high overheads. In fact, overheads can amount to a quarter of the budget
on some productions, which is an incredibly high ratio of cost.
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Arising conflicts, team based structure lead to opinion conflicts among team
members.
MATRIX STRUCTURE The matrix structure of contemporary organizational structures assigns
specialist from different functional departments to work on one or more
projects.
In matrix structure one employee should report to two managers. So the
employee faces conflict when they address their superiors. To whom should I
report firstly, and to whom should I obey or directly responsible. Their
functional departments manager and their product or project manager who
share authority. The project managers have authority over the functional
members who are part of their project team in area relative to the project’s
goals. However decisions such as promotions, salary recommendations and
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annual reviews remain the functional manager’s responsibilities. To work
effectively, project and functional managers have to communicate regularly,
coordinate work demands on employees and resolve conflicts together.
Matrix Organizational Structure
11-14
On the other hand the two managers influence to the employee so the
employee should want to their works in correct way. By using matrix structure
can establish high control and greater supervision throughout the project
period. It may helps to increase project performance and effectiveness.
In matrix structure we can easily get high performance because there is skilled,
ability full and experienced employees come from different functional
departments.
This structure is most effective to achieve overall organizational goals. It leads
to increase job satisfaction, experience and knowledge of the employees.
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PROJECT STRUCTURE
An organizational structure in which employees continuously work on projects
is a project structure. In a project structure has no formal departments to
which employee return at the completion of a project. Instead employees take
their specific skills, abilities and experience to other work project.
In addition, all work activities in project structures are performed by teams of
employees who become part of a project team because they have the
appropriate work skills and abilities.
Project structure tends to be fluid and flexible organizational designs. There is
no departmentalization or rigid organizational hierarchy to slow down decision
making or taking actions.
Ex-: Information Systems build by using project structure, Constructions
Project structure reduces job boredom, because they work different projects,
and less work specialization. Although the matrix structure work well and
continued to be effective structure design choice for many organizations are
using more advance types project structure, in which employees continuously
work on projects. Unlike the matrix structure, a project structure has no formal
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departments to which employees return at the completion of a project.
Instead, employee take there specific skills, abilities and experiences to other
work projects. In addition, all work activities in project structures are
performed by teams of employee who become part of a project team because
they have the appropriate work skills and abilities.
In this types of structures managers serve as facilitators, mentors and coaches.
They “serve the project teams by eliminating or minimizing organizational
obstacles and by ensuring that team has the resources they need to effectively
and efficiently complete their work.
BOUNDARYLESS ORGANIZATIONS
In a boundaryless organization, the boundaries that divide employees such as
hierarchy, job function, and geography as well as those that distance
companies from suppliers and customers are broken down. A boundaryless
organization seeks to remove vertical, horizontal, and external barriers so that
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employees, managers, customers, and suppliers can work together, share
ideas, and identify the best ideas for the organization.
What are the boundaries? Vertical - Boundaries between layers within an organization
Classic Example: Military organization
Problem: Someone in a lower layer has a useful idea; "Chain of command"
Mentality
Horizontal - Boundaries which exist between organization functional units.
Each unit has a singular function.
Problem: Each unit maximize their own goals but not the overall goal of the
Organization
External - Barriers between the organization and the outside world (customers,
suppliers, other government entities, special interest groups, communities).
Customers are the most capable of identifying major problems in the
organization and are interested in solutions.
Problem: Lose sight of the customer needs and supplier requirements Geographic - Barriers among organization units located in different countries
Instead of being organized around functions with many hierarchical levels, the
boundaryless organization is made up of self-managing and cross-functional
teams that are organized around core business processes that are critical for
satisfying customers such as new-product development or materials handling.
The traditional vertical hierarchy is flattened and replaced by layers of teams
making the organization look more horizontal than vertical. Some believe that
the boundaryless organization is the perfect organizational structure for the
21st century.
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Types of boundary less Organizations
Network Organizations
In a network organization, various functions are coordinated as much by
market mechanisms as by managers and formal lines of authority.
Emphasis is placed on who can do what most effectively and
economically rather than on fixed ties dictated by an organizational
chart. All of the assets necessary to produce a finished product or service
are present in the network as a whole, not held in-house by one firm.
Virtual Organizations
The most interesting networks are dynamic or virtual organizations. In a
virtual organization an alliance of independent companies share skills,
costs, and access to one another’s markets. It consists of a network of
continually evolving independent companies. Each partner in a virtual
organization contributes only in its area of core competencies. The key
advantage of network and virtual organizations is their flexibility and
adaptability.
The Modular Organization
A modular organization is an organization that performs a few core
functions and outsources noncore activities to specialists and suppliers.
Services that are often outsourced include the manufacture of parts,
trucking, catering, data processing, and accounting. Thus, modular
organizations are like hubs that are surrounded by networks of suppliers
that can be added or removed as needed. By outsourcing noncore
activities, modular organizations are able to keep unit costs low and
develop new products more rapidly. They work best when they focus on
the right specialty and have good suppliers.
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LEARNING ORGANIZATIONS
The concept of a Learning Organizations doesn’t involve a specific
organizational design. Learning Organizations is an organization that has a
developed the capacity to continuously adopt and change because all
members take an active role in identifying and resolving work related issues. In
a Learning Organizations, employees are practicing knowledge management
continually acquiring and sharing new knowledge and are willing to apply that
knowledge in making decisions or performing works. Some organizational
designs theorists even go so far as to say that an organization’s ability to do
this-that is, to learn and to apply that learning as they perform the organization’s work
may be the only sustainable source of competitive advantage.
In a Learning Organization, it is a critical for members to share information and
collaborate on work activities throughout the entire organization, across
different functional specialties and even at different organizational levels. This
can be done by minimizing or eliminating the existing structural and physical
boundaries. In this type of boundaryless environment, employees are free to
work together and collaborate in doing the organizations work the best way
they can and to learn from each other. Because of this need to collaborate,
teams also tend to be an important feature of a learning organization’s
structural design. Employees work in teams on whatever activities need to be
done, and these employee teams are empowered to make decisions about
doing their work or resolving issues.
With these empowered employees and teams, there’s little need for “bosses”
to direct and control. Leadership plays an important role as an organization
moves to become a learning organization. Leaders should facilitate the
creation of a shred vision for the organization’s future and then keeping
organizational members working towards that vision.
Also organizational culture is an important aspect of being a learning
organization. A learning organization’s culture is one in which everyone agrees
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on a shared vision and everyone recognizes the inherent interrelationship
among the organization’s process, activities, functions and external
environment. In learning organizations, employees feel free to openly
communicate, share, experiment, and learn without fear of criticism or
punishment.
Learning can’t take place without information. For a learning organization to
“learn”, information must be shared among members, that is organizational
members must engage in knowledge management.
BUREAUCRATIC STRUCTURE
A structure with highly routine operating tasks achieved through specialization,
very formalized rules and regulations, tasks that are grouped into functional
departments, centralized authority, narrow spans of control, and decision
making that follows the chain of command.
In large organizations and under well defined conditions, organization
structure may be bureaucratic. The essential elements of a bureaucratic
organization are:
• the use of standard methods and procedures for performing work; and
• a high degree of control to ensure standard performance.
Mintzberg (1981) has identified two types of bureaucracies. They are standard
and professional bureaucracy. Standard bureaucracy is based on efficient
performance of standardized routine work. Professional bureaucracy depends
upon efficient performance of standardized but complex work. Thus, it
requires a higher level of specialized skills. The structure of standard
bureaucracy is based on functions, large technical staff and many mid-level
managers. In contrast, professional bureaucracy has few mid-level managers.
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Director
Admin
Accounts
Personnel
Purchase
Research
Livestock
Seeds
Pesticides
Extension
Consumers
Agri-
Processing
Producers
BUREAUCRATIC ORGANIZATIONAL STRUCTURE
Strengths
• Functional economies of scale
• Minimum duplication of personnel and equipment
• Enhanced communication
• Centralized decision making
Weaknesses
• Subunit conflicts with organizational goals
• Obsessive concern with rules and regulations
• Lack of employee discretion to deal with problems
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PRACTICAL STUDY
OF ORGANISATION
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WATEEN TELECOM
COMPANY’S OVERVIEW
Wateen Telecom UK Ltd embarks on providing leading international voice retail
and wholesale communication services to its esteemed customers through its
ability to seamlessly connect and enable smarter, faster, cost-effective and
flexible solutions.
Wateen continues to build on the heritage of its parent company - The Abu
Dhabi Group. We believe in leadership through people. Our technology and
service-delivery strengths stems from our valued employees who have joined
Wateen from all over the world to earn customer trust and loyalty with a
continuing commitment to the deployment of innovative products and
services, reliable, high-quality service and excellent customer care.
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MISSION STATEMENT
• To provide affordable communication services that meets and exceeds customers' requirements
• To deliver high-quality, flexible and innovative solutions that are cost effective and conducive
• To provide complete customer satisfaction on time, every time
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VISION
To introduce Wateen Telecom in the European and North American markets and provide the leading telecommunications international voice services through a world-class cutting-edge network to deliver a broad range of reliable, affordable and quality customer-centric services.
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CORPORATE VALUES
Simplicity :Practical and easy-to-use
Satisfaction: Customer satisfaction is foremost
Quality : Premier services; no compromises
Innovation : Always at par with the latest technology
Honesty : Practice what we preach: integrity, ethics and open communication
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WATEEN’S ORGANIZATIONAL STRUCTURE
As shown in Figure , Wateen’s organizational structure can be divided into 2
parts: one is Business Units where the sub-units are separated based on
Product Departmentalization, and the Administrative Units are categorized
based on Functional Departmentalization.
Business Units are the "money-making" departments or divisions that are
directly involved with the products of the company; and the Administrative
Units are the departments that coordinate Wateen’s daily business operation
activities.
Wateen
Telecom
Figure : Wateen’s Organizational Structure Chart
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Within the Business Units, there are 8 sub-units:
• QCT (Wateen CDMA Technologies) develops and suppliers CDMA-based
integrated circuits and system software for wireless voice and data
communications, multimedia functions and global positioning system
product.
• QTL (Wateen Technology Licensing) grants licenses to use Wateen's
intellectual property, including certain patent rights essential to or useful
in the manufacturing, sale and use of CDMA-based products.
• QSI (Wateen Strategic Initiatives) makes strategic investments in
ventures that focus on worldwide adoption of 3G wireless
communications technologies (voice and data) and products serving
consumers, the enterprise and all members of the wireless value chain
such as wireless network operators, device and equipment
manufacturers, and application and content providers.
• QIS (Watee Internet Services) provides technology to support and
accelerate the convergence of wireless data, Internet and voice services.
• QWBS (Wateen Wireless Business Solutions) provides companies
around the globe with industry-leading mobility platforms, applications
and services that accelerate business. These products serve a variety of
industries, including transportation and logistics, third-party logistics,
construction, petroleum, retail, food and beverage, and healthcare.
• QTV (Wateen Technology and Ventures) offers the MediaFLO™ system
enabling wireless multimedia services and supports Wateen’s mission of
enabling and fostering CDMA and wireless Internet markets through
strategic investments in privately-owned startup ventures.
• QGOV (Wateen Government Technologies) provides the Unites States
government with secure wireless communications solutions using CDMA,
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Wimax and other Wateen technologies. Through government funded
R&D, QGOV is creating leading-edge security technology with the
development of the QSec®-2700, a 3G secure phone.
• QCTest™ and Deployment Products. Wateen's focus is the creation of
products that ultimately lower licensee and carrier operator costs while
enabling the quickest deployment of the latest technology.
The Administrative Units consist of the following departments:
• Human Resource Department
• Marketing Department
• Financial Department
• Global Development Department Those departments coordinate the company's business operations worldwide and provide necessary resources to the production operations.
CONCLUSION
At first glance, Wateen seems to employ two types of traditional designs in
its structure. One is Functional Structure that applies to its Administrative
Units in which departmentalization is based on the function of the
departments. The other is Divisional Structure which applies to its Business
Units where each division's teams are responsible for performance and have
strategic and operational authority while the top management acts as an
external overseer to coordinate and control the various divisions.
However, Wateen also demonstrates signs of Contemporary Organizational
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Design. By exhibiting the characteristics of a team structure, a design in
which an organization is made up of teams that work toward a common
goal, Wateen was able to provide expertise in every specific field. Also,
characteristics of a Learning Organization are thrown into the mix. Wateen
was named Organization of the Year by the American Society for Training
and Development in 2000. By receiving this award, Wateen demonstrated
that they are a company that builds on learning and development. This
recognition highlights Wateen's commitment to employee development
and their focus on supporting learning with their overall business objectives.
Although Wateen does show some kind of traditional organizational design
characteristics, their website states: "We encourage teamwork while
reinforcing the importance of individuality to enhance our inclusive
atmosphere and to leverage creativity. Despite our rapid growth, we work
hard to avoid the chains of bureaucracy and retain our entrepreneurial, free-
spirited culture," which indicates that Wateen has evolved into a semi-
contemporary organizational design.
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