Organisational Theory, Structure and Design

April 2022 Examination

Question- 1. 1. ‘Flora Medicals’ is a pharmaceutical company which had a line

organisational structure. Now it wants to change its structure to a matrix organisation. As
their, HR head, which important principles of organisational structure will you keep in
mind while making this change. Explain these principles, in the context of a
pharmaceutical company. Justify whether it is the right decision or not.
(10 Marks)

Ans 1.

Introduction
Organizational shape plays a critical function in setting up any corporation. It is an
administrative shape through which the staff, control, facilities, and assets get assigned to their
required positions. It enables to satisfy all the purposes for the fast improvement of a company.

There are numerous sorts of organizational systems that we can find. These are- Line structures,
structure, Horizontal shape, Hierarchical shape, community-based shape, Divisional structure,
pleasing shape, and so on. Each of those structures has its own sets of principles that the
corporations decide according to their desires and observe their structure.

Right here, in this document, the pharmaceutical corporation named ‘flora Medicals’ wants to
make a trade of their organizational shape from line shape to a matrix organizational shape.
Thus, because of the HR of the agency, all the concepts of the organizational shape can be
discussed in the following record, and the specified adjustments could be accomplished hence.
Picture- 1: Organizational structure of Flora Medicals

Concept and analysis

Correlating the primary component, it's been highlighted that the aforesaid pharmaceutical
enterprise will have a structural change for the company's betterment. The employer already has
a line organizational shape. Consequently, earlier than beginning the desired evaluation, it's
critical to understand the ideas of the line organizational structure so that HR may also alternate
it for this reason.

Line Organizational structure

In this shape, the energy flows from the topmost position to the decreased role. In this situation,
all of the body of workers comes beneath the supervisor’s (CEO) direction. That is one of the
best structures that a company can comply with.
Picture- 2: Line Organizational Structure

Principles

• The procedure of controlling the body of workers and sources. The organization's CEO is
responsible for manipulating and leading the whole workforce and assets in a desire to improve
flora Medicals.

• In this technique, the CEO desires to divide the position of the group of workers so that
the all-over work may float unexpectedly. CEO allows to set up the coordination between the
workforce and offerings.

• Right here, the CEO is also accountable for configuring the entire structure in step with
the organization's wishes.

Matrix Organizational Structure

In this structure, there may be no such unmarried chief is accountable to handle all the team of
workers and assets which we have visible in the line shape. In a Matrix shape, all personnel is
accountable to cope with their work to their extraordinary leaders so that numerous
improvements can be made at extraordinary tiers of the organization.
Picture- 3: Matrix Organizational Structure

In this situation, if the organization desires to go together with the matrix organizational
structure, the enterprise may comply with the underneath concepts:

Principles
Clarification of the objectives

All the goals concerning the projects get cleared because of the usage of the matrix
organizational shape. Here, the employer is infused with numerous styles of tasks. Therefore, the
matrix structure enables the determination of the goals and functions. Every challenge has its
exceptional needs and principles. As a result, it is very a whole lot essential to clear all of the
targets at the beginning, which includes vegetation Medicals deals in the production of
vildagliptin drug that is used as an anti-diabetic medicinal drug.

Integration of the projects

The matrix organizational shape enables to unite all the projects to establish a link between them
and meet the organization's necessities. By operating on the present shape, the agency can
increase a brand new matrix structure and combine the tasks towards the development of the
employer.

Resources get the perfect utilization

Here, the organization can utilize its assets in ideal order to meet the company's goals. The
workforce, the gadget, the machinery, and the opposite required stuff have been used flawlessly
so that various improvements may be derived from the enterprise to lead the enterprise to be
highly successful.

Conclusion

As the head of HR, it can be concluded that the above-noted ideas of the matrix shape may be
very a great deal beneficial in converting the entire structure, and it also proves that the shape has
been aptly selected for the organization. Furthermore, the record has been saying that this new
structure will help the employer adjust to its growing competitors inside the marketplace, and the
organization can develop swiftly. Apart from that, she also has given significance to the previous
shape to find out the new modifications and quantify the result. HR has executed splendid work.

Question- 2. Marzari, the CEO of Speedy Automobile Limited, is not happy with the
current departmentation system in the organisation. Therefore, he has approached
XYZ Business solutions for help. Explain what options XYZ Business Solutions can give to
Marzari for selecting an appropriate departmentation strategy. Which option do you think
is best suited for an automobile company? (10 Marks)

Ans 2.

Introduction
To reach the tempo of achievement, every corporation wishes to restoration its departments first.
By putting the departmentation techniques, the employer can divide the set of works to the group
of workers in step with the agency's desires. This method is infused with six extraordinary sets of
methods. Those are- Departmentation regarding the capabilities and operations of the
organization, Departmentation regarding the products wherein the company is dealing with,
Territorial-based in which locations the corporation intends to do its work, system-primarily
based, customer-based totally, and the final one is a combined form.
In this document, the CEO of the auto business enterprise named, Marzari has shown a
dissatisfactory method towards the current departmentation machine of the enterprise. As a
result, the enterprise has been looking for assistance from the XYZ business solution to shape a
fixed of departmentation strategies to remedy its problems, creating barriers closer to its charge
of achievement. Consequently, the strategies might be mentioned in the following report
correlating the organization, Marzari.

Picture- 1: Departmentation Strategy

Concept and analysis

Here, in this scenario, XYZ enterprise solutions have displayed every department in brief to
undergo all departmental strategies.

Functional

In this method, the departments get grouped according to different functions, including
financing, selling, and manufacturing-based totally, shopping, and so forth. The whole
department has depended on the corporation's size and the establishment. With the in addition
development of the company, the variety of departments additionally may be increased as a
result.
In the state of affairs of Marzari Company, the CEO can divide its departments based on the
promotion and production of the automobiles they use to deal in. it'll help him lower the load of
work from a single branch.

Product-based

On this approach, the grouping may be executed based totally on the company's goods. As we
will say, all the sports assigned with a single product may be placed beneath a branch. That
department might be led via a product-based departmental manager.

In this state of affairs, the Marzari Corporation can organize the activities based on automobiles
or the variety of companies they sell.

Territorial-based

In this approach, the complete work can be divided into an exclusive set of zonal departments. In
this situation, the company can also divide the zones according to where it extends its business.
The zones also are assigned below the supervision of the exceptional zonal managers.

In this scenario, the Marzari agency can group its subsidiary companies primarily based at the
zones and make special departments for leading those zones.

Client-based totally

On this approach, the employer can divide the departments based on its customers. The clients
are also divided consistent with their regularity, agencies, governmental, big or small farm, etc.
Because of this kind of departmentalization, the organization can get into the customers' desires
and might take selections thus.

In this scenario, the Marzari enterprise can institution its consumer primarily based on the
regularity and the firms with which the organization deals regularly. Subsequently, can make
departments on that basis.

Gadget-primarily based
Correlating the thorough manner in this approach, various departments can be divided.
Moreover, to hold the enterprise's workflow, the departments may also help take duty for only
types of procedures.

In this method, the Marzari enterprise cans organization its department primarily based on the
procedure that the organization intends to follow.

SMART Criteria

Specific

XYZ solutions have determined to combine the mixed shape to alternate it consistent with its
desires.

Measurable

Allowing this method, the corporation can meet its purpose by 2030.

Achievable

The organization can enforce this approach properly away. The departments are needed to the
organization in just.

Relevant

That is absolutely a practical approach as it has been infusing numerous departments.

Time-based totally

While using this approach, the result can be seen inside six months of its utility.

But, in this reality, the Marzari agency can combine the strategies they want to use as an entire
unit.

Conclusion

To finish the document, it could be stated that XYZ solutions has performed justice with every
departmental strategy and has aptly selected the best one for Marzari car company which has
been visible at the same time as discussing the record. This approach may best apply to one's
companies wherein all of the previously cited techniques can't be applied in another way. In this
scenario, one or every technique can be mixed and applied within the gadget. This has been
referred to as the blended shape of the departmentalization approach.

Question- 3. ‘Shanghai Noodle Express’ is a popular fast food company in China. The
Business head, Xu Kitang wants to open the company’s subsidiary in India, as it is a
popular destination for Chinese cuisine. However, previous attempts of expansion have
failed. Therefore, this time they have hired an experienced Market Research Expert like
you for suggestions. Keeping the above scenario in mind,

a. Explain which aspects of socio-cultural environment do you think should be kept in mind
before venturing into India. Give examples. (5 Marks)

Ans : Part- A

Introduction
Before starting a challenge in a brand new location, it's far crucial to test the socio-cultural
elements of that location. Socio-culture aspects constantly play the primary function in the in
addition improvement of that business. The socio-cultural component of a country enables the
professionals to increase the business model for the corporation.

Concept and analysis

India is an assorted country. Here people love to test their food and accept any new
developments gracefully. As in keeping with the state of affairs advised in the question, Xu
Kitang, the Business Head of the well-known Shanghai noodles company from China, wants to
increase its enterprise in India and desires to search for records concerning the socio-subculture
elements of this nation. Before the analysis, the researcher needs to point out that the Indians like
to have Chinese food. If the owner wants to open a franchise of his company in this country, the
populace will gracefully accept it.
Socio-Cultural Aspects of India

In the terms of Population

Greater than 138 crore people live in India, so it's far a golden opportunity for the company to
penetrate the marketplace of India.

In the terms of Mobility of the society

The country could be very tons superior in terms of its cultural values. Many people like to try
whole food and have a unique attraction for Chinese cuisines.

In the terms of Age gaps

Here, humans of all ages love to eat the food of the correct variety. They always like to
experiment with their meal habits and try new dishes. From kids to antique-aged people,
everybody loves to eat Chinese delicacies.

In the terms of Religion and Caste

India is very wealthy with its diversity in religion and castes. Every religion has a distinctive
community, and every community includes specific units of meals habits. Thus, the variation of
foods can be highlighted right here. Therefore, the corporation has a viable threat to success in its
new venture.

Conclusion

The Shanghai Noodles organization has to maintain the aforesaid socio-tradition factors before
starting the new project in India, and it's been seen inside the preceding dialogue that the
employer has numerous probabilities of getting success within the extension of its business in
India. For that reason, the company must watch for some time to manipulate the ongoing
situation, after which start the brand new venture.
Qb. Briefly explain the different approaches that you would suggest for an effective
external environmental analysis of a fast food company. (5 Marks)

Ans: Part- B

Introduction

It is very a whole lot vital to specify the tactics earlier than starting any new assignment. The
external environmental evaluation for fast food gadgets could be done by using the company.
Consequently, the Shanghai Noodles organization can check on the following factors to evaluate
their commercial enterprise.

Concept and analysis

External Environmental Analysis for fast food company (using PESTEL)

Political Scenario
In this scenario, the organization should allow numerous facts, such as hygiene, packaging, great
of the food, the standard of the wages, etc.

Economic scenario

Because of the hikes inside the expenditure, various restaurants authorities have been curtailing
down the high-quality meals and increasing the price for reducing their finances. For this reason,
in this scenario, the fast-meals agencies are getting opportunities to provide desirable
satisfactory-based food at a price range-friendly rate. Therefore, the Chinese company can prick
the market in the speedy-meals item region.

Social scenario

On this element, the customers have shown distinct units of attitudes closer to the choice of the
food items. A number of them have proven their options for healthy food items and liquids, and a
number of the others have shown alternatives for instant-food items to please their flavor buds.

Technological scenario
In this factor, the social media platform (FB, Instagram) has been given the again of the short-
meals objects. The younger people of the society mainly use the social media platform, and they
may be very keen on fast-food gadgets. Accordingly, by supplying appealing mouth-watering
advertisements on the social media platform, the organization can get its customers beforehand
and attract more people into their business.

Environmental scenario

Due to the recent pandemic trolls, people have come to be very much conscious concerning their
fitness and have cut down the consumption of rapid-food objects. Even the authorities have set
several guidelines to lessen the short-food selling items.

Legal scenario

Because the authorities have been converting its regulations for fast-food gadgets because of the
excessive fee of unhygienic troubles and many different matters, it has become hard to start a
new undertaking, and aside from that, the growing opposition inside the market is likewise the
purpose of having the hazard of starting a new challenge inside the speedy-meals gadgets.

Consequently, the corporation has to undergo all of the scenarios and also has to take a look at
the tactics that have been set inside the discussion above.

Conclusion

To conclude part- B, it can be stated that the company needs to test all the minute details and
statistics regarding the marketplace of India at the dialogue described above. The above-stated
report also has been proceeding that the organization can start its assignment in India.