Organizational Structure & Design of Confidence Group PDF
Organizational Structure & Design of Confidence Group PDF
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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.
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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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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.
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Organizational Structure & Design of Confidence Group
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
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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.
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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.
Values:
The values that confidence Group follows and believes in achieving its vision are-
Leadership
Respect
Cooperation
Integrity
Innovation
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Grameenphone, Banglalink, Airtel, Robi, Teletalk and other telecom operators in Nepal,
Pakistan, Bhutan
Finance Cash
Human
Resource
IT Business
Development
Admin
Accounts Commercial
Procurement
Production/ Research &
Service Development
Audit
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
General Manager
Senior Executive
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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Sales Manager
Procurement Manager
Marketing Manager
HR & Admin Manager
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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.
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