Organization Analysis

Organization Analysis
Assignment 1
Organization structure for EGPC
Egyptian General Petroleum Corporation
Supervised By : Prof. Dr. / Amani Shahen

Prepared By : Hany Fawzy Abbas Darwish
First: Organization Chart Types
1) Hierarchical structure
Also known as a line organization, is the most common type of organizational structure.
These are some advantages of a hierarchical structure:
• It clearly defines reporting relationships, project organization and division of authority.
• It details your company’s corporate ladder and promotional structure, thereby encouraging
high-quality work.
There are also some drawbacks of choosing a hierarchical structure:
• Bureaucratic hurdles could delay project completion and discourage employees from
taking risks.
• It may encourage employees to prioritize their own department and direct supervisors
instead of the whole company.
2) Functional structure
Is a centralized structure that greatly overlaps with the hierarchical structure. However, the
role of a staff director instead falls to each department head – in other words, each department
has its own staff director, who reports to the CEO.
These are some advantages of a functional structure:
• It helps employees develop specific, specialized roles.
• It boosts individual departments’ and employees’ self-sufficiency and innovation.
• It scales easily to work for companies of all sizes.
These are some disadvantages of a functional structure:
• It doesn’t encourage communication and interaction among different departments.
• It hides key details of departmental processes and strategies from employees outside that
department.
•
3) Divisional structure
The centralized structure, known as a divisional organization, is more common in enterprise
companies with many large departments, markets or territories. For example, a food
conglomerate may operate on a divisional structure so that each of its food lines and products
can have full autonomy. In the divisional structure, each line or product has its own chief
commanding executive. Large companies of any sort, but especially in manufacturing
industries, are the best fit for this structure .
These are the main advantages of a divisional organization:
• The different departments have some flexibility to operate separately from the company at
large.
• It’s more adaptable to customer needs.
• Individual departments have more autonomy and room for innovation.
These are some disadvantages of a divisional structure:
• It risks accidental duplication of resources.
• It encourages poor communication and low interaction among different departments.
• It encourages internal competition across departments rather than uniting the company
against outside competitors.
4) Flat structure
A decentralized organizational structure in which almost all employees have equal power. At
most, executives may have just a bit more authority than employees. This organizational
structure is common in startups that take a modern approach to work or don’t yet have
enough employees to divide into departments. That makes flat structures especially well
suited to the tech industry, which is home to many small startups with flexible work
arrangements.
These are some advantages of a flat structure:
• Employees have more responsibility and independence.
• It improves communication and interaction among employees.
• It’s faster to implement new practices or ideas, with less risk of error.
These are the main disadvantages of a flat structure:
• Employees lack supervision.
• There could be confusion around reporting procedures.
• Employees lack or don’t develop specialized skills.
• It has poor scalability as the company grows.
5) Matrix structure
Is a fluid form of the classic hierarchical structure, This centralized organization structure
allows employees to move from one department to another as needed. You might encounter
this structure in industries home to highly skilled employees who might be their company’s
only experts in their field.
These are the main advantages of a matrix organization:
• Supervisors have the flexibility to choose the best employees for a project.
• It allows a dynamic org chart with varying responsibilities for employees.
• Employees have the opportunity to learn and foster skills outside their primary roles.
These are some disadvantages of a matrix organization:
• There could be conflicts of interest between the needs for project organization and
department organization.
• The organizational chart is prone to regular changes.

Second: Hierarchical Organization Chart for EGPC:
• This chart helps in controlling the work flow for EGPC activities as
follows:

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Organization Analysis

Egyptian General Petroleum Corporation

Supervised By : Prof. Dr. / Amani Shahen

These are some advantages of a hierarchical structure:

• It clearly defines reporting relationships, project organization and division of authority.

There are also some drawbacks of choosing a hierarchical structure:

instead of the whole company.

has its own staff director, who reports to the CEO.

These are some advantages of a functional structure:

• It helps employees develop specific, specialized roles.

• It boosts individual departments’ and employees’ self-sufficiency and innovation.

• It scales easily to work for companies of all sizes.

These are some disadvantages of a functional structure:

• It doesn’t encourage communication and interaction among different departments.

The centralized structure, known as a divisional organization, is more common in enterprise

commanding executive. Large companies of any sort, but especially in manufacturing

industries, are the best fit for this structure .

These are the main advantages of a divisional organization:

• It’s more adaptable to customer needs.

• Individual departments have more autonomy and room for innovation.

These are some disadvantages of a divisional structure:

• It risks accidental duplication of resources.

• It encourages poor communication and low interaction among different departments.

against outside competitors.

• Employees have more responsibility and independence.

• It improves communication and interaction among employees.

These are the main disadvantages of a flat structure:

• Employees lack supervision.

• There could be confusion around reporting procedures.

• Employees lack or don’t develop specialized skills.

• It has poor scalability as the company grows.

only experts in their field.

These are the main advantages of a matrix organization:

• It allows a dynamic org chart with varying responsibilities for employees.

These are some disadvantages of a matrix organization:

• The organizational chart is prone to regular changes.

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