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Organizational Structure & Design of Confidence Group PDF

The document discusses organizational structure and design of Confidence Group. It begins with an introduction to key concepts of organization including common goals, division of labor, authority structure, and importance of effective organization. It then discusses Confidence Group's organizational structure, portfolio of companies, and relationship between its organizational structure and culture. It emphasizes the importance of an organization being adaptable to change over time.
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0% found this document useful (0 votes)
122 views20 pages

Organizational Structure & Design of Confidence Group PDF

The document discusses organizational structure and design of Confidence Group. It begins with an introduction to key concepts of organization including common goals, division of labor, authority structure, and importance of effective organization. It then discusses Confidence Group's organizational structure, portfolio of companies, and relationship between its organizational structure and culture. It emphasizes the importance of an organization being adaptable to change over time.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Organizational Structure & Design of Confidence Group

Organizational Structure & Design of


Confidence Group

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Organizational Structure & Design of Confidence Group

Acknowledgement
We would like to start by expressing our profound gratitude and
appreciation to our honored course instructor Professor S.M. Zakaria
air for his overall leadership during our course's (Leadership &
Management Skill) term in the American International University -
Bangladesh (AIUB) of Executive Master of Business Administration
(EMBA) program.

Working on the topic of "Organizational Structure" for the


corporation Ericsson was a great learning experience for us because
it taught us a lot about the corporate world. We would want to take
this occasion to express our gratitude to the Ericsson authority for
their assistance with this task.

With Sincere Compliments from.

Md Rashik Anzum Shohan [23-92932-1]


Bably Akter [ 23-92838-1]
Md Kamrujjaman Riad [ 23-92969-1]

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Organizational Structure & Design of Confidence Group

Table of Contents

Topic Page No
What is Organization …………….. 4
Concept of Organization …………….. 4
Nature of Organization …………….. 5
Importance of organization …………….. 5
Organization Design …………….. 6
Types of Organization Design …………….. 6
Principles of Organization Design …………….. 7
Organizational Design Decisions …………….. 8
Mechanistic and Organic Organizations …………….. 8
Contingency Factors …………….. 9
Common Organizational Designs …………….. 10
Company Introduction & History …………….. 13
Confidence Group Portfolio …………….. 15
Organizational Structure of Confidence Group …………….. 16
Relationship between Organizational structure …………….. 18
and culture of Confidence Group
Adaptability and Change of Approach with …………….. 19
Time
The Last Speech …………….. 20

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Organizational Structure & Design of Confidence Group

What is Organization:
Organization is the backbone of management because without an efficient organization no management
can perform its functions smoothly. In the management process this organization stands as a second
state which tries to combine various activities in a business to accomplish pre-determined goals. It is the
structural framework of duties and responsibilities required of personnel in performing various functions
with a view to achieve business goals.
In other words, organization is simply people working together for a common goal. It is a group of
people assembling or congregating at one place and contributes their efforts to achieve a common goal.
Hence, it is coordinates different activities for running the business enterprise efficiently so that the
common goal can be achieved.
Organization is “the process of identifying and grouping the work to be performed, defining and
delegating responsibility and authority, and establishing relationships for the purpose of enabling people
to work most effectively together in accomplishing objectives.” — Louis A. Allen
Organizing is a “process of defining the essential relationships among people, tasks and activities in
such a way that all the organization’s resources are integrated and coordinated to accomplish its
objectives efficiently and effectively.”— Pearce and Richard B. Robinson
Organization defines the part which each member of an enterprise is expected to perform and the
relations between such members, to the end that their concerted endeavor shall be most effective for the
purpose of the enterprise.” — Alwin Brown

Concept of Organization:
An organization refers to a structure in which people come together to attain some common goals.
People feel that they can fulfill their needs more effectively when they become part of a group. In an
organization, the individual goals are foregone for the group goals and the group goals are compromised
for organizational goals so the maximum benefit can be derived by using limited available resources.

An organization is influenced by many external and internal factors. External factors include politics,
country’s economy, and legal rules and regulations; whereas internal factors include plans, objectives,
and policies of an organization. Internal factors can be controlled by an organization; however, external
factors are beyond the organization’s control. An organization requires constant caution and adaptability
to effectively manage situations arising due to such factors.

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Organizational Structure & Design of Confidence Group

Nature of Organization:
1. Common goal – The main reason for the existence of an organization is to accomplish some common
goals. The structure of the organization is bound by a common purpose.
2. Division of labour – The work needed to accomplish the goals is divided into a number of functions
and sub-functions. These, functions are organized in the form of departments. Each department is headed
by a specialist. Such a division of function on specialty basis infuses specialization.
3. Authority structure – There is an arrangement of positions into graded series. Such an arrangement
creates a series of superior and subordinate relationships called chain of command. Authority and
responsibility associated with various positions are defined.
4. Group – It is people who constitute the dynamic element of an organization. They work in groups in
the various departments of an organization.
5. Communication – There is free flow of communication through various official channels among the
people across various departments. Most of the communication is in a written form. However, grapevine
communication is also in vogue.
6. Coordination – The diverse efforts of various functional departments are integrated towards the
common objective through the process of coordination.
7. Environment – No organization is functioning in a vacuum. Social, political, economic and legal
factors exert influence on the environment. Beside it is influenced by internal factors like materials,
machines, level of technology, economic resources, human resources, etc.
8. Rules and regulations – Every organization is governed by a set of rules and regulations for the orderly
functioning of people.

Importance of organization:
Once A. Carnagie, a famous American industrialist said, “Take away our factories, take away our trade,
our avenues of transportation, our money. Leave nothing but our organization, and in four years we shall
have re-established ourselves.” Every word of Carnagie’s thundering is important. Each word speaks
and spells out the need and importance of an effective and fruitful organization.
Mark Carnagie’s leave nothing but our organization. How confident he was about his managerial skill
and organization structure. No factory, no money, no trade even no transport but organization and only
organization.
An effective organization –
 Makes the management simple and efficient
 Encourages specialization
 Improves techniques
 Encourages constructive thinking
 Increases productivity, and
 Accelerates the progress.

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The management asks the organization to accomplish the tasks set-forth before it which an effective
organization is capable of achieving through its fruitful organizational framework. This is why it is said
that organization is a foundation upon which the whole structure of management can be successfully
built.

Organization Design:
Organization Design is a process for shaping the way organizations are structured and run. It involves
many different aspects of life at work, including team formations, shift patterns, lines of reporting,
decision-making procedures, communication channels, and more. Organization Design – and redesign
– can help any type of organization to achieve its goals. Sometimes, a large-scale reorganization is
necessary. At other points, more subtle shifts in structures and systems can ensure that an organization
continues to thrive.
Organizational design involves implementing organizational structures and systems that align to an
organization's core strategies. Often organization redesign happens because a business is growing or
needs to downsize. However, it may also be because of a change in leadership, strategy, or due to
changes in the organizations wider environment in which it operates.

When organizational design is effective it can have a number of benefits, including:


 Increased effiency.
 Faster and more effective decision making.
 Improved quality of goods and services.
 Higher profits.
 Better customer relations.
 Safer working conditions.
 A happier, healthier and more motivated workforce.
 Greater preparedness for future challenges.

Types of Organization Design:


Organization Design is often divided into two distinct styles:
 Hierarchical.
 Organic.
The table below shows some of the key features of hierarchical and organic designs – examined in terms
of complexity, formality, levels of participation, and communication styles

Characteristic Hierarchical Structure Organic Structure


Usually lower – less
High – with an emphasis on
Complexity differentiation and functional
horizontal separation into
separation.
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Organizational Structure & Design of Confidence Group

functions, departments and


divisions.
Lower – no real hierarchy, and
High – lots of well-defined lines
Formality less formal division of
of control and responsibility.
responsibilities.
Low – employees lower down Higher – ower-level employees
Participation the organization have little have more influence on decision
involvement in decision making. makers.
Downward – information starts Lateral, upward and downward –
Communication at the top and trickles down to information flows through the
employees. organization with fewer barriers.

Principles of Organization Design:


 Declare amnesty for the past.
 Design with DNA
 Fix the structure last not first
 Make the most of top talent
 Focus on what you can control
 Promote accountability 7. Benchmark sparingly, if at all
 Let the lines and boxes fit your company's purpose
 Accentuate the informal
 Build on your strength

Figure 01: Example of organizational structure chart

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Organizational Structure & Design of Confidence Group

Organizational Design Decisions:


Organizations are not all structured in exactly the same way. A company with 30 employees isn't going
to look like one with 30,000 employees. But even organizations of comparable size don't necessarily
have similar structures. What works for one organization may not work for another. How do managers
decide what organizational design to use? That decision depends upon certain contingency factors. In
this section, we'll look at two generic models of organizational design and then at the contingency factors
that favor each.

Mechanistic and Organic Organizations:


The mechanistic organization is a rigid and tightly controlled structure. It's characterized by high
specialization, rigid departmentalization, narrow spans of control, high formalization, a limited
information network (mostly downward communication), and little participation in decision making by
lower-level employees.
Mechanistic Organization Organic Organization
A rigid and tightly controlled structure Highly flexible and adaptable structure
 High specialization  Non-standardized jobs
 Rigid departmentalization  Fluid team-based structure
 Narrow spans of control  Little direct supervision
 High formalization  Minimal formal rules
 Limited information network (downward)  Open communication network
 Low decision participation  Empowered employees

Mechanistic types of organizational structures tend to be efficiency machines, well-oiled by rules,


regulations, standardized tasks, and similar controls. This organizational design tries to minimize the
impact of differing personalities, judgments, and ambiguity because these human traits are seen as
inefficient and inconsistent. Although no pure form of a mechanistic organization exists in reality,
almost all large corporations and governmental agencies have at least some of these mechanistic
characteristics.
In direct contrast to the mechanistic form of organization is the organic organization, which is as highly
adaptive and flexible a structure as the mechanistic organization is rigid and stable. Rather than having
standardized jobs and regulations, the organic organization is flexible, which allows it to change rapidly
as needs require. Organic organizations have division of labor, but the jobs people do are not
standardized. Employees are highly trained and empowered to handle diverse job activities and
problems, and these organizations frequently use employee teams. Employees in organic-type
organizations require minimal formal rules and little direct supervision. Their high levels of skills and
training and the support provided by other team members make formalization and tight managerial
controls unnecessary.

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Contingency Factors:
Top managers of most organizations typically put a great deal of thought into designing an appropriate
structure. What that appropriate structure is depends on four contingency variables: the organization's
strategy, size, technology, and degree of environmental uncertainty.
Structural decisions are influenced by:
 Overall strategy of the organization
 Size of the organization
 Technology use by the organization
 Degree of environmental uncertainty

Strategy and Structure:


An organization's structure should facilitate the achievement of goals. Because goals are
influenced by the organization's strategies, it's only logical that strategy and structure should be closely
linked. More specifically, structure should follow strategy. If managers significantly change the
organization's strategy, they will need to modify the structure to accommodate and support the change.
Size and Structure:
There's considerable evidence that an organization's size significantly affects its structure.13 For
instance, large organizations—those with 2,000 or more employees—tend to have more specialization,
departmentalization, centralization, and rules and regulations than do small organizations. However, the
relationship isn't linear. Rather, size affects structure at a decreasing rate; that is, size has less impact as
an organization grows.
Technology and Structure:
Every organization has at least one form of technology to convert its inputs into outputs. The
three categories, representing three distinct technologies, had increasing levels of complexity and
sophistication. The first category, unit production, described the production of items in units or small
batches. The second category, mass production, described large-batch manufacturing. Finally, the third
and most technically complex group, process production, included continuous-process production.
Unit Production Mass Production Process Production
Structural  Low vertical  Moderate vertical  High vertical
Characteristics differentiation differentiation differentiation
 Low horizontal  High horizontal  Low horizontal
differentiation differentiation differentiation
 Low  High formalization  Low
formalization formalization
Most effective Organic Mechanistic Organic
structure

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Organizational Structure & Design of Confidence Group

Environmental Uncertainty and Structure:


The organization's environment and the amount of uncertainty in that environment as constraints
on managerial discretion. Why should an organization's structure be affected by its environment?
Because of environmental uncertainty! Some organizations face relatively stable and simple
environments; others face dynamic and complex environments. Because uncertainty threatens an
organization's effectiveness, managers will try to minimize it. One way to reduce environmental
uncertainty is through adjustments in the organization's structure. The greater the uncertainty, the greater
the need for the flexibility offered by an organic design. On the other hand, in stable, simple
environments, mechanistic designs tend to be most effective.

Common Organizational Designs:


In making organizational design decisions, managers have some common structural designs
from which to choose. We'll first look at some traditional organizational designs and then at some more
contemporary designs.
 Traditional Organizational Designs
 Team-Based Structures
 Matrix and Project Structures
 The Boundaryless Organization
 The Learning Organization
Traditional Organizational Designs:
In designing a structure to support the efficient and effective accomplishment of organizational
goals, managers may choose to follow more traditional organizational designs. These designs the simple
structure, functional structure, and divisional structure tend to be more mechanistic.
1) Simple Structure
2) Functional Structure
3) Divisional Structure

Simple Structure:
Most organizations start as entrepreneurial ventures with a simple structure consisting of owners
and employees. A simple structure is an organizational design with low departmentalization, wide spans
of control, authority centralized in a single person, and little formalization. This structure is most
commonly used by small businesses in which the owner and manager are one and the same.

Functional Structure:
A functional structure is an organizational design that groups similar or related occupational
specialties together. It's the functional approach to departmentalization applied to the entire
organization. For instance, Revlon, Inc. is organized around the functions of operations, finance, human
resources, and product research and development.

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Divisional Structure:
The divisional structure is an organizational structure made up of separate units or divisions. In
this design, each unit or division has relatively limited autonomy, with a division manager responsible
for performance and who has strategic and operational authority over his or her unit. In divisional
structures, however, the parent corporation typically acts as an external overseer to coordinate and
control the various divisions, and it often provides support services such as financial and legal.
Strengths Weaknesses
Simple Structure Fast; flexible; inexpensive to Not appropriate as organization
maintain; clear accountability grows; reliance on one person is
risky
Functional Structure Cost-saving advantages from Pursuit of functional goals can
specialization (economies of scale, cause managers to lose sight of
minimal what's best for
duplication of people and overall organization; functional
equipment) and employees are specialists become insulated and
grouped with others who have have little understanding of what
similar tasks other units are doing
Divisional Structure Focuses on results—division Duplication of activities and
managers are responsible for what resources increases costs and
happens to their reduces efficiency
products and services

Team-Based Structures:
In a team-based structure, the entire organization is made up of work groups or teams that
perform the organization's work. Needless to say, in a team-based structure, employee 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 they think is best. However, the teams are also held responsible for all
work activity and performance results in their respective areas. Let's look at some examples of
organizations that are organized around teams.

Matrix and Project Structures:


Other popular contemporary designs are the matrix and project structures. The matrix structure
is an organizational structure that assigns specialists from different functional departments to work on
one or more projects being led by project managers. Along the top are the familiar organizational
functions. The specific projects the firm is currently working on are listed along the left-hand side. Each
project is managed by an individual who staffs his or her project with people from each of the functional
departments. The addition of this vertical dimension to the traditional horizontal functional departments,
in effect, "weaves together" elements of functional and product departmentalization hence, the term
matrix. One other unique aspect you need to know about the matrix design is that it creates a dual chain
of command.

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Figure 02: Basic Structure of Matrix and Project Structures

The Boundaryless Organization:


Another approach to contemporary organizational design is the idea of the boundaryless
organization, an organization whose design is not defined by, or limited to, the horizontal, vertical, or
external boundaries imposed by a predefined structure. Think of the horizontal boundaries imposed by
work specialization and departmentalization, the vertical boundaries that separate employees into
organizational levels and hierarchies, and the external boundaries that separate the organization from its
customers, suppliers, and other stakeholders. By removing vertical boundaries through such structural
approaches as cross-hierarchical teams and participative decision making, the hierarchy is flattened.
Managers can remove horizontal boundaries by using cross-functional teams and organizing work
activities around work processes instead of around functional departments. And external boundaries can
be minimized or eliminated by using strategic alliances with suppliers, or value chain management
customer-organization linkages, concepts.

The Learning Organization:


The concept of a learning organization doesn't involve a specific organizational design per se
but instead describes an organizational mind-set or philosophy that has significant design implications.
What is a learning organization? It's an organization that has developed the capacity to continuously
adapt and change because all members take an active role in identifying and resolving work-related
issues. In a learning organization, employees are practicing knowledge management by continually
acquiring and sharing new knowledge and are willing to apply that knowledge in making decisions or
performing their work. Some organizational design 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.

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Company Introduction & History:


Confidence Group is one of the largest local conglomerates in Bangladesh. Since this
organization does not belong under FMCG industry, very few people know about this organization.
Starting from 1991 till present, confidence group is contributing a lot in the economic, social and
infrastructural development of Bangladesh.
Confidence Group is a local conglomerate in Bangladesh involved in the manufacturing of mid-tech
engineering products, it was founded in 1991. It is successfully expanding its operation in international
market after fulfilling domestic demands. From the year of its conception, the motto of confidence group
is to come up with such products which are elegant and innovative and which can add some different
value. That’s why all the products under Confidence Group are a mixture of best material, innovative
design and the best quality. Since beginning till today,
Confidence Group is proudly and successfully providing the best products to its customers.
Moreover, Confidence Group believes that their investors are investing in a promise of better experience
and better and innovative quality. Confidence Group is a pioneer in Bangladeshi conglomerate industry
and that’s why it always believes that it can expand its glory beyond the border and can shine the name
of our country. And that’s why Confidence Group uses “Lets Believe” as their tagline. Because only
believing in each and every aspects associated with a products can make it a BRAND.
Currently Confidence Group is directly operating 8 subsidiaries including two joint ventures with
renowned foreign brands in Bangladesh. As a pioneer mid-tech engineering product industry, it has
Cement, steel, power generation, electric transformer and battery in its product line. Moreover, emerging
International Gateway operator (IGW), DigiCon is also under Confidence’s product line.

Mission:
As a prominent conglomerate in Bangladesh, the current mission of Confidence
Group is to ensure top most customer satisfaction and to do the best for the betterment of the organization
and industry. Its current mission statements are-
 Let's commit to our customers so that our products and services shall ensure the best value for
their money
 Let's adopt 'Can do' attitude in targeting every Goal.

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Vision:
As Confidence Group has become a pioneer in engineering product industry and it is
stepping into international market, the organization set up a long term plan to get into that market
position. The vision on which Confidence Group is focusing on are given below-
 Let's Believe in our Brand
Confidence Group has to be among the top 3 (three) most valued and revered conglomerates in
Bangladesh. Each of the brands under Confidence Group has to be the most respected in its respective
market sphere in Bangladesh
 Let’s Believe in our Business
Confidence Group has to be a conglomerate of BDT 10,000 Core within 2020.
 Let’s Believe in our Society
Confidence Group has to be among the top 3 (three) most socially and environmentally compliant
conglomerates in Bangladesh
 Let’s Believe in our Self
Every member of Confidence Group is chosen because of their uniqueness and competence. So be proud
being a part of Confidence. Confidence has to be a preferred brand of employment.

Goals and Objectives:


Confidence Group believes in its people who are associated with the organization,
process of its entire operation and products that they create. By adding all three key components of
Confidence Group, it sets its goal to be the market leader in the entire Asia. Its prime objective is to
provide quality products and services to its customers and to provide the best possible return to everyone
who is internally and externally related to the organization.
Strategic Objectives of Confidence Group are-
 To ensure high quality product and service
 To provide innovative product within budget and to create a value
 To ensure best possible return to its stakeholder and employees.

Values:
The values that confidence Group follows and believes in achieving its vision are-
 Leadership
 Respect
 Cooperation
 Integrity
 Innovation

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Confidence Group Portfolio:


As a market leader in an unconventional industry, Confidence Group is operating ten
subsidiaries currently including three joint ventures. Its core business is related to engineering
manufacturing and service equipment such as battery, transformer, tower, electric pillar and pole etc. A
glimpse of different subsidiaries of Confidence Group is given below:
 Confidence Cement Limited (CCL)
 Confidence Steel Limited (CSL)
 Confidence Power Limited (CPL)
 Confidence Steel Export Limited (CSEL)
 Electropac Industries Limited (EPL)
 Confidence Electric Limited (CEL)
 DigiCon Telecommunication Limited
 Confidence Batteries Limited (CBL)
It also introduced several international brands in Bangladesh through Joint ventures or share acquisition.
Currently Confidence Group is operating three different subsidiaries through joint ventures and share
acquisition. Current ventures of Confidence Group are-
 Energypac-Confidence Power Venture Limited (ECPL)
 Energypac-Confidence Chittagong Power Venture Limited (ECCPL)
 Asian Paints Bangladesh Limited
Products and Services:
All the products and services offered by Confidence Group belong to mid tech
engineering industries. Its products and services are:
 Cement
 Screw and Nuts
 Transformers
 Battery
 Electric Pole and Pillars
 Steel and Recast Concrete
 Tower
 Paints
 Telecommunication Network Services
Customer of Confidence Group:
As the products under Confidence Group’s name are not under FMCG, so their target and potential
customers are very unconventional and niche. Regular customer of Confidence Group are-
 Power Grid Company of Bangladesh (PGCB)
 Dhaka Electric Supply Company Limited (DESCO)
 Bangladesh Power Development Board (BPDB)
 Dhaka Power Distribution Company (DPDC)
 Bangladesh Rural Electrification Board (BREB)
 Polli Biddyut Shamiti (PBS)

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 Grameenphone, Banglalink, Airtel, Robi, Teletalk and other telecom operators in Nepal,
Pakistan, Bhutan

Organizational Structure of Confidence Group:


The company's operating system is at its core, according to the chairman. Under him, the Chief
Operational Officer, Managing Director, and numerous Head Strategic Business Units are in charge of
the company's overall business operations. They are in charge of the organization's operations,
marketing, sales, finance, R&D, and human resources departments. We may therefore conclude that
Confidence Group uses the functional design because it introduces its business using a functional
approach. Confidence Group adopts novel items for their clients and frequently uses a matrix
organizational structure.
According to the goods, Head of Strategic Business Units are allocated and are in charge of overseeing
the production of the product or service. The subordinates who are employed by various department
under their line manager.

Finance Cash
Human
Resource
IT Business
Development
Admin

Accounts Commercial

Procurement
Production/ Research &
Service Development
Audit

Figure: Core Departments of Confidence Group

According to the definition of organizational structure, Confidence Group maintains a decentralized


organizational structure with varying degrees of freedom for its departments and divisions.

The operation of the company's several sections forms the basis of its function. The strategic method of
effectively managing an organization's workforce to give the company a competitive edge is known as
human resource management.

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The several sections of Confidence Group that operate internationally are listed above. Confidence
Group is a multinational corporation with numerous business divisions and market segments. At the
moment, the following market sectors are active: Pakistan, Nepal, and Bhutan.

Chairman
Assistant Officer

Managing Director
Officer

Chief Executive Officer


Senior Officer

Head Strategic Business Unit


Executive

General Manager
Senior Executive

Deputy General Manager Assistant Manager

Assistant General Manager Deputy Manager

Senior Manager Manager

Figure: Basic Organizational Structure Confidence Group

Confidence Group has a distinctive structure dependent on market area in addition to the basic structure
depicted above. As a decentralized company, Confidence Group must adhere to a special structure
because it makes its functional point more approachable. For Confidence Group to operate with greater
purpose and agility, generating more chances, greater customer centricity, and greater income, a
different structure based on the market region is essential. Confidence Group is streamlining its
organizational structure in line with its business strategy by eliminating the two-tiered leadership
structure, Executive Leadership Team and Global Leadership Team, and creating a single Executive
Team. Also, the geographical setting.

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Relationship between Organizational structure and culture


of Confidence Group:
Culture and organizational structure are intertwined. An organizational structure establishes the
mindset, rules, framework, tactics, and moral principles that ultimately shape the workplace culture.
Confidence Group is comparable to any other well-known, sizable firm in this sense. For instance, if a
business has a rigid structure and the power to make decisions is set or given to the top management,
there won't be much employee involvement or flexibility, and the culture would be less successful. The
culture will be more creative, fascinating, accountable, and independent if the organizational structure
is decentralized, which implies that authority, responsibility, and decision-making power are shared with
the employees at all levels.
The structure of the Confidence Group is decentralized, and as a result, decision-making authority is
distributed among managers. The staff now feel more liberated, allowing them to take on more
responsibility and be more proactive when working on a task or assignment.

Head of Strategic Business Unit

Head of HR & Admin Head of Sales & Marketing

Head of Procurement Head of Accounts & Finance

Head of Manufacturing Head of R&D

Production Manager R&D Manager

Quality Manager Finance Manager

Maintenance Manager Accounts Manager

Sales Manager
Procurement Manager

Marketing Manager
HR & Admin Manager

Executives & Officers

Figure: Basic Organization Structure of Confidence Group Business Strategic Unit

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The distribution of power and responsibility inside an organization shapes how its personnel behave.
The organizational culture is determined by these structural choices. The manner through which a firm
controls its operations and authority hierarchy is through its organizational structure. It outlines the
functions, means of communication, levels of authority, and other guidelines for the organization. Most
organizational structures take the shape of a pyramid, with the chairman at the top and the top
management at the base.
In Confidence Group, each SBU Heads responsibility is defined by the top management, which includes
the Chairman / Managing Director at the apex of the pyramid structure. The pyramid displays the various
management levels, which can vary from firm to organization depending on the goals of various
organizations. The Managing Director is the highest-ranking official. It regulates how every
organization is run. Employees at different levels also have different levels of authority and power to
complete the tasks that have been given to them. The pyramid is arranged from upper to lower levels of
management and moves downward.
According to Confidence Group's organizational structure, if the chairman or chief executive wants to
delegate decision-making authority to someone else, it becomes the CEO. This indicates that the CEO
has direct authority after the chairman, everyone reports directly to him, and he has the greatest power
and authority at that time.
Organizational structure and culture have a significant impact on employee performance levels. If the
organizational structure is rigid or centralized, employee performance is average, normal, or not
excellent. This is because rigid structures do not allow employee’s freedom and participation in business
operations, making them less motivated and less efficient. A decentralized structure, on the other hand,
allows employees to communicate and participate in the business and decision-making process. This
encourages employees to perform better and remain loyal to the organization. Such employees
demonstrate improvement, innovation, and excellence in their assigned tasks.

Adaptability and Change of Approach with Time:


Confidence Group recognizes that we must be able to meet the ever-changing needs of our
customers. Confidence Group has two business divisions of products and services. There are also
operations. Each of these divisions is divided into geographical regions. By enabling decision-making
at a more local level, organizations can respond more quickly to changing market needs and higher-
level management can focus more on long-term planning. Certain business functions such as finance,
human resources, innovation, marketing, strategy, and planning are concentrated in the company's
corporate divisions.
Some of these functions are performed at the lower level of the company's individual regions. However,
most decisions are made at the top of the hierarchy. In addition to using Teams and meetings, the intranet
was revamped to provide a source for real-time information sharing. Organizations seem to be aiming
for a hybrid structure that takes advantage of both bureaucratic and behavioral models while trying to
minimize the negative effects of both.
The strategic structural changes that organizations have undergone in recent years have had a much-
needed positive impact on their business. The organization seeks to create a more innovative culture by
promoting decentralization. Therefore, it can be clearly said that Confidence Group's model is a mixture
of bureaucratic and behavioral models.

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Organizational Structure & Design of Confidence Group

The Last Speech:


Structure and design are like the DNA of an organization. Human nature, like tissue, can be
explained by the genetic information stored in DNA. Organizational structure and design are directly
proportional to long-term success. No organization in the world can succeed without properly crafting
and using its structure and design. Working on the organizational structure and design of Confidence
Group, one of the world's oldest and leading providers of telecommunications equipment and services,
was a very enjoyable and educational experience.

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