UNIVERSITY OF CENTRAL PUNJAB

SPRING 2024
Course Title: Fundamentals of Management
Course Code: BAMG1823

Assignment 3
Course Instructor: Ms. Madiha Bint e Riaz

Section: BA2 Program: BSBA Date: 9th June, 2024

Submission Date: 20th June, 2024 Maximum Marks: 10

Program Objective: PO1,
Course Objective: CO1 Course Learning Objective: CLO4, CLO6
PO1
TO BE FILLED IN BY THE STUDENT
Student Name: Registration No: Sr. No:

Instructions:

1. Use this page as the cover page for your assignment.

2. Assignment should be submitted in word (soft-form) on CMS and also in Hard form, keeping
the following points in consideration:
Font style: Times New Roman
Font Size: Main heading (14), Sub heading and paragraph (12)
Paragraphs: Justified
Line spacing: 1.5
Font color: black
3. Length of the text would be 12-15 pages excluding table of contents, list of tables in the text,
list of figures drawn in the text and appendices if any.
4. Pages with table of contents, list of tables in the text, list of figures drawn in the text should
be numbered in Romans e.g. I, ii, etc. whereas all subsequent pages should be numbered in
normal digits e.g. 1, 2, etc.
5. No color prints.
6. Nothing bookish; just confine to actual situation of your company.
7. Plagiarism will lead to zero marks.

Page 1 of 7 Assignment
 Organizational Chart and Analysis of a Local Company in Pakistan

Engro Corporation

1. Introduction:

Engro Corporation, a prominent conglomerate in Pakistan, operates in multiple sectors, including

agriculture, energy, food, and chemicals. This analysis focuses on Engro Corporation’s
organizational structure to provide insight into its hierarchical design and various structural
components.

2. Organizational Chart:

The organizational chart for Engro Corporation is structured as follows:

Key Positions:

a) Chairman

b) CEO

c) Chief Financial Officer (CFO)

d) Chief Operating Officer (COO)

e) Directors (for each division: Agriculture, Energy, Food, Chemicals)

f) Division Managers

g) Department Heads (HR, Marketing, R&D, etc.)

h) Team Leaders

i) Staff and Workers

Page 2 of 7 Assignment
3. Structural Components of Organizational Design:

i) Work Specialization:

Engro Corporation practices a high degree of work specialization, where tasks are divided
into distinct roles. For instance, the agriculture division focuses solely on activities related
to agribusiness, while the energy division deals with energy solutions. Each division has
specialized departments such as finance, marketing, and R&D, dedicated to enhancing
efficiency and expertise.

• Advantages: Enhanced efficiency, expertise in tasks, increased productivity.

• Disadvantages: Potential for employee boredom and reduced innovation due to repetitive
tasks.

ii) Job Design and Departmentalization:

Engro utilizes a functional departmentalization approach, where similar tasks are grouped
together into departments such as finance, marketing, and operations. Each department is
responsible for its functional area across all divisions.

• Advantages: Facilitates specialization, improves efficiency, clear reporting lines.

• Disadvantages: Can lead to solo mentality, reduced flexibility across departments.

iii) Chain of Command:

Engro Corporation has a clear and defined chain of command that supports a hierarchical
structure. Decision-making authority flows from the Chairman down to the CEO, and
subsequently to division directors and department heads.

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 • Advantages: Clarity in authority and responsibility, streamlined decision-making process.

• Disadvantages: Can slow down decision-making, reduce flexibility, and stifle creativity.

iv) Span of Control:

The span of control at Engro varies at different levels. At the top, the span is narrower with
the Chairman overseeing the CEO and key directors. Lower down, the span widens, with
department heads managing several team leaders and employees.

• Advantages: Effective management control, easier supervision at higher levels.

• Disadvantages: Potential for overburdened managers at lower levels, can slow down
communication.

v) Formalization:

Engro Corporation exhibits a high level of formalization, with extensive policies and
procedures governing operations. Each department follows standardized guidelines to
maintain consistency and compliance with regulatory standards.

• Advantages: Consistency in operations, clear expectations, easier compliance.

• Disadvantages: Can create rigidity, stifle innovation, and reduce adaptability.

vi) Centralization:

Decision-making at Engro is primarily centralized, with key decisions made by top

management and filtered down through the hierarchy.

• Advantages: Consistent decision-making, easier implementation of strategic goals.

Page 4 of 7 Assignment
 • Disadvantages: Slower response to local issues, potential for disconnect between top
management and lower levels.

4. Structural Elements:

i) Hierarchical Structure:

Engro Corporation’s hierarchical structure is characterized by multiple layers of

management, each with specific roles and responsibilities. This ensures a clear path for
authority and communication.

• Advantages: Clear reporting lines, structured progression, effective management.

• Disadvantages: Can lead to bureaucracy, slow response times, reduced flexibility.

ii) Functional Structure:

Engro’s functional structure groups similar functions into departments, facilitating

specialization and expertise in each functional area.

• Advantages: Efficient use of resources, specialized skill development.

• Disadvantages: Functional silos, potential for inter-departmental conflict.

iii) Matrix Structure:

In addition to functional departmentalization, Engro employs a matrix structure for specific

projects, allowing for cross-functional collaboration. This structure helps in optimizing
resources and fostering innovation.

• Advantages: Flexibility, improved coordination across departments.

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 • Disadvantages: Complexity in management, potential for power struggles.

5. Mechanistic vs. Organic Structure:

Based on the analysis of Engro Corporation’s organizational structure, it can be categorized as

mechanistic.

Mechanistic Characteristics:

• Rigid hierarchical relationships: Engro’s clearly defined hierarchy with multiple

management layers.

• Fixed duties: Employees have specific, well-defined roles with little flexibility.

• Many rules: High level of formalization with strict policies and procedures.

• Formalized communication channels: Communication follows formal pathways through

the hierarchy.

• Centralized decision authority: Key decisions are made at the top management level.

• Taller structures: Engro’s structure includes multiple layers of management from the
Chairman down to the operational staff.

Why Not Organic?

• Lack of horizontal collaboration: Unlike organic structures, Engro's collaboration is

primarily vertical, with limited horizontal interaction.

• Limited adaptability: The rigid structure and centralized decision-making reduce

adaptability.

Page 6 of 7 Assignment
 • Few informal communication channels: Communication is formalized, with fewer
opportunities for informal, spontaneous interaction.

6. Conclusion

Engro Corporation’s organizational design, with its high degree of work specialization, formalized
processes, centralized decision-making, and well-defined hierarchy, reflects a mechanistic
structure. While this structure supports efficiency, clarity in roles, and consistent decision-making,
it may limit flexibility and innovation. Understanding these dynamics helps in appreciating how
Engro Corporation effectively manages its diverse operations within a structured and formalized
framework.

References:

i) Engro Corporation Official Website - Engro Corporation

ii) Organizational Theory Texts on Mechanistic and Organic Structures

Appendices:

Appendix A: Detailed Organizational Chart

Page 7 of 7 Assignment