Organisational Structure Change Management In Harihar Store Business Essay


1. Introduction

Harihar Store Pvt. Ltd. is foods supply wholesale Company involved in the foods sale in large scale in the local retail market. This company established in 1990 in Chitwan District of Nepal. In the starting time the store do the retail business of daily usage foods, after 1995 the company start wholesale business of common food. After the 2005 this company has lose its business profitability continuously because the other company also start the same type of business in same area. Till date Harihar Store did not increase its business scope from their old area. Now the company is in critical situation of their business. Other new competitor has start their business in same market.

Where Hari har store Pvt.Ltd. operating its business in that area other competitor is come. Mahakali food Suppliers Pvt. and Everest Traders are main competitors of Harihar stores. Mahakali food supplier's and Everest traders has own food product industry so they product their all of goods of their own industry and sale in the cheap price. As well as the Mahakali and Everest are increase their business all over the major city of Nepal. In this situation Harihar store business is going to down. The compotator success to seal in the large scale so they earn more perfect even they sale in cheap price. Their market scope is large and they product their food in their own industry. They established their branch office in the major city of Nepal. By the branch office they monitor and research of the market demand and their own business position. So their business is effective. Harihar Store's all goods are purchase of other industry so the store can not to decrease their goods price. Comparatively Harihar stores's more goods price is high then other company's goods. So there must be need to managing change of Harihar store as soon as fast to save of its business.

2. Alternative forms of organizational development to manage changes effectively

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Any organisation cannot conduction long times in same organisational process and forms. All organisations affected by their current macro environment issues and trying to adopt change management strategies. In organisation has a bureaucratic structure that called functional structure also. Functional structured is dividing in many areas. For example a business organisation has marketing , production, financial etc. functional area. To made the organisation change first we need to SWOT ( strength , weakness, opportunity and threat) and PEST ( Political environment, Economy environment, Social environment, Technical environment) analysis. When we do SWOT and PEST analysis then only we can develop form of organisation.

To do the managing change there should be need to made the alternative forms of organisation. There are three main types of organizational structure: functional structure, Divisional structure and Matrix structure. Each structure has its own strong and weak points.

Functional Organisational Structure:

In functional structure there is divided of organisation main fuctional area they are marketing functional area, operatint functional area, marketing functional area etc. under the every functional area there is some worker do work. Every functional area have a functional manager. The figure of functional organisational structure is in appendix -1. The advantage and dis advantage of functional organisational structure is this following:


Worker are responsible of their dudy.

Show the way to operational efficiencies in group.

There is more product sale and fast distribution at low cost.

Employees are motivated their career development in the organisation.


This type of organisation is slow and inflexible

There is conflict between different functional area.

There is problem of coordinating between different functional area.

Some function is that kinds which are hard to divide

Divisional organisational structure

In divisional organisation there are autonomous units, or divisions, and each units will have all necessary resources and can function within it. Which organisation does their business in different geographical area and different type of business and service operating that is divisional organisational structure. According to this structure, under the CEO there is divisional depart that divided according to geographical area or different types of product or service area and under every division there is functional manager and under the functional manager there is other worker work. The figure of functional organisational structure is in appendix -2. The advantage and disadvantage of divisional organisational structure is following:


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This organisational structure is decentralise so quick response and flexibility in this organisation.

All employees are feeling motivated to involvement in decision making process.

In this organisation there is easy to improve customer relation.

It also enhances modernization and differentiation strategy.


There is different functional under the different division so the operation cost is high in this structure.

In this structure, employees have highly focused in their divisional goals then organisational goal.

There is conflict between divisional unit about the use of resource

Matrix Organizational Structure

Matrix organisation is mix model of functional and divisional organisation. This structure takes the advantage of both other structure and removes the disadvantage. The figure of functional organisational structure is in appendix -3.The main advantage and disadvantage of this organisational structure is following:


This structure has clear project focus.

This structure has handling of various projects at the same time.

Any environment change quick reaction affecting the organisation

There is flexible staffing in this structure.

Adaptability to management needs and skill.

There is various staff development opportunity in this organisation.

Adaptability to management changes.

Horizontal co-ordination and communication is possible due to Project teams.


There is conflicts and confusion in organizations which actually results in inefficiency in matrix organisation

The conflict and vagueness in high level will increase feelings of stress among worker of organisation.

There is complex command and authority relationship in this organisation

3. Compare with Harihar Store Pvt.Ltd.

After the analysis of alternative forms of organisation development we can use one type of organisational structure in the Harihar Stores. The organisation structure of Harihar Store is not clear. Every organisation has developed their one clear bureaucratic structure that called functional structure as well. Where not clear bureaucratic structure in their organisation's employee is has not individual responsibility of their work and all work doing randomly so there is not effecting management. So Harihar store also made a clear organisation structure to do following work:

To give the clear work responsibility of all employees.

Every functional area has need to a functional manager and other subordinates.

Clear identify of company product and service process and policy.

To control the working environment.

Every worker aware their job role and profiles.

Skilful worker in special work.

To simplify the communication process in top to bottom.

According to Harihar Store present macro and micro environment situation we can say this organisation also need to adopt the matrix organisational structure because there should be need to reengineering of that organisation in present context. Many compotator are introduce in the market and Harihar store need to enlarge their busniss scope. The company need to enlarge it business over the main city of Nepal like Kathmandu, Pokhara, Birjunja, Butwal, Baglung , Beni ect. And other side company need to establish of their own product industry to computation the other compotator. We need to adopt matrix organisation structure in the Harihar Store because:

The key person can shared all company activity so the cost is going too minimized.

Inner company conflicts cannot affect the company because it can easily resolve.

There is better balance between cost, time and performance.

all Authority and responsibility are shared

Stress is distributed among the team


Appendix -1 Function Structure

Managing Director

General Management

Director Marketing

Director Engineering

Director Procurement

Director Project

Director Personnel

Director Finance

Head Engineering

Engineering Manager

Engineering Executive

Head Project

Project Manager

Project Executive

Head Procurement

Procurement Manager

Procurement Executive

Head Marketing

Marketing Manager

Marketing Executive

Head Personnel

Personnel Manager

Personnel Executive

Head Finance

Finance Manager

Finance Executive

Adapted from

Appendix -2

Divisional Structure

Managing Director

Senior Management

Country Head Scotland

Country Head Europe

Country Head Ireland

Country Head England

North Region

North Region

North Region

North Region

East Region

East Region

East Region

East Region

South Region

South Region

South Region

South Region

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