Frame Of Organizational Structure Commerce Essay

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Work specialization is a key factor of organization structure. In the organization there are several jobs along their workers. So the workers perform individually their tasks so they are performing that activity again and again then they are trained to work on specialized field. This factor is gives an advantage and disadvantage both e.g. In a Toyota company these are many portions every worker is specialize on their portion by doing one job. He could be more accurate, and he takes less time In less input will give more output and the disadvantage is that if the work specialized person is absent so the production would be stop. By doing the same job he might be bore so the moral will begin to fall down.


The departmentalization jobs are divided into the specialize work and they perform the tasks in a groups the following are the forms of departmentalization

Customer Departmentalization

Geographical Departmentalization

Functional Departmentalization

Product Departmentalization

Process Departmentalization

Chain of Command

Chain of command is the responsibility, proper line of authority in the organization. Classical theory explains who reports to whom, and it also tells about the duties, responsibilties assign to that person in the organization. In some of the organization it is based on it like pakistan Air Force.

Span of Control

It explains the actual position of the general manager or manager in the organization that how he or she manages his or her sub co-ordinates. we have two types of spin of control, Tall and narrow and the other one is Flat and wide.

Tall and narrow

In this type of organization higher ups have all the authorities and they give commands to their juniors and it goes down word and again from the down ward the response go's up wards so its more time consuming and as well as it cause the lack of opportunities at the same time and the best example for this type of organization is Pakistan air force.

Flat and Wide

This type of organization is totally opposite to the tall and narrow. There are many managers under the same CEO. So it would be easier to the lower staff to get connected with the higher ups easily. Like in Toyota there are different departments so if there is any problem in any department the manger can easily communicate with CEO and could get the issue solved with out the wastage of time.

Centralization and Decentralization

It tells about the organization structure that who is the decision maker in the organization. Who has the power and the authority to make a decision for the firm? In the centralization decision making is done by the single person and the decision making is done in higher manager with no interaction from the lower level and in the decentralization decision making is changed throughout the organization due to the benefits of the organization and decisions are taken more quickly and more confident. Every employee is the decision maker and he feels him self to be the important a part of an organization.

Matrix Structure

Matrix structure is the combination of the product customer, functional departmentalization. An organization which has a matrix structure, the team work of the business and based for the project. Every department is responsible for their section. This team work is up to the project time if the project time is over then they divert to another project given to them. Here the project manager is responsible after the completion of the project and budget.


Supports inter-disciplinary co-operation and multi-function working

Combines the benefits of specialization of the product/project structure

Develops tolerance of flexibility


There is a big disadvantage of the loyalty between the managers and the project manager over the location of funding, budget and recourses

Costs of added management positions, meetings

Slower decision making

Possible competition between dual managers

Organizational Culture

Organization culture is the set of values, rules, beliefs, attitudes and regulations these factors can help the members of the organization to know how we will Work. To whom we will report? What we would do? Why is this important?

Cultures are like the backbone for the organization because it is the internal environment it play an important role to success of the firm

Types of Culture

There are four major types of cultures

Power Culture

Power culture is centralized form of cultures, this type of culture may be found in the small kinds of business, and the control is the basic element for decision maker. In alone there is no consultancy to the organization and it may react quickly to the danger. Some times more consultancy can lead to staff or members to feel undervalued and de-motivated, which can also lead to high staff turnover.

Welfare/ Person culture

This kind of culture is a welfare non profitable, charities and for the social activities. This kind of culture can be in the group or it may be an individual aim.

Task Culture

It is a team work task approach to complete a particular task. This culture is more common in the business where the organization will establish a project team to complete the project in the particular time. Employee's feels motivated because they are in power to make decisions within their team, they will also feel good and valued because they may have been selected within that team and given the responsibility to bring the task.

Role Culture

Role culture Is Common in most of organizations today, organizations is split into various departments and each individual within the department is assigned a particular role. The role culture has the benefit of specialization. Employees focus on their particular role as assigned to them by their job description and this should increase productivity for the company. This culture is quite logical to organize a large organization into its departments.

Task for P2

Culture and structure is working like a backbone in the organization. It creates a new concepts and strategies which can affect any level of planning. When it applies on any organization. So then implications of organizational culture and structure will be implemented to the government companies etc.

Organizational structure and culture can affect the work progress of organization in the positive and in the negative way. In the positive way it differentiate the organization to the another one which don't have a culture and structure. It explains the limitation of the organization. It provides a sense among the employees to know each other for the success and achievement of goals. It can bring stability and social system in the organization. An organization having culture and structure they would also provides appropriate standards of working environment.

Every organization has different policies rules and regulations that how to communicate with the staff. The organization also shows about the responsibilities that who will report to whom, it means who will be responsible to whomes work in this kind of organization tasks a good decision for the company, Culture and structure has also some drawbacks on the business progress. If the organization culture is too much complex then in the organization decision will be very slow and also there will be centralized decision making in which the lower level staff would not be apart of that decision.

Task for P3

Individual Behavior at Work

All individuals are different and behave differently to people over time.

Interpersonal behavior is different from individual behavior

There are many factors which influence the behavior. But the most important one is personality and Perception. Personality will be defined as the distinctive traits, thinking and the characteristic of a person and the relation to the others there are two main factors which affect personality are his own thoughts and environment. It includes five factors of personality known as OCEAN which influences behavior at work.


Personality dimension

High level

Low level


Sensitive, nervous

Secure, confident

Outgoing, energetic

Shy, withdrawn

Openness to experience

Inventive, curious

Cautious, conservative


Friendly, compassionate

Competitive, outspoken


Efficient, organized

Easy-going, careless

Neuroticism It tells about the effectiveness and emotional control in a body. If neuroticism is high in a body then it shows nerviness', sensitivity and instability where it is low levels,it shows the confidence, emotional stability and activeness. In high level its shows energetic or if it is in low level may be described as quite, shyness and unsocial, penne's to experience High openness to experience have broad interest and having a wide imagination. On other side low openness are conservative and conventional. Agreeableness Its good to have high agreeableness because its brings kindness friendly and a team worker. Conscientiousness Individual with a high a level are original and effective. their focus is just on their job and if this level is low in some one there that person will be very slow, careless and undutiful

Task for M1

Culture and Structure of PSO

Every organization has its own culture and structure it's very important for every organization in a culture there are many people belonging to the different casts, religion or area. Every organization needs good culture, good social norms, valves and ethical behavior.

PSO Company is the biggest multinational company with many product lines. Employees are functional specialists trained according to the product or market distribution. Now PSO in Pakistan is divided into the five functional locations for example operations, commercials, retail, finance and the human resources. Through the use of horizontal linkages and committees management attempts to find divisional activities. The decision impacts result from strategic plan made by the organizational staff it explains that in PSO company there is centralization system.

The culture of the PSO organization is based on commitment of the top level management for the sake of employs, performance, quality and local community. Culture also pushes the member to behave in a way that is counter to the formal mission and goals of organization but it can be changed through inter personal skills and good behavior. In organization good, positive and progressive culture and structure is shared among the people.

Culture and Structure of Habib Bank Limited

Culture and structure are important in organization but each organization has their own structures and cultures. According to this organization, there is not a specific culture in organization. They develop their own culture according to their own requirement. Culture controls the behavior of the staff according to their nature which accepts the efforts to that culture. This develops the behavior of staff that they develop culture which they need. Culture depends upon the nature of employees it's according to that culture. Culture does not remain the same but the unwanted culture is changed according to new environment. In organization culture is made when employees share their own cultures.

In such type of organization the bureaucratic structure is used .Employees are not involved during taking of the decision they are totally depended upon the orders of their bosses. Through structure it is easy for the organization for placement of employees, staffing and they also know how many employees are required for the jobs in organization.

Factors Influencing in Both Organization

Culture and structure is important in each organization because through good culture there is friendly environment between the manager and the lower staff and as well as with there sub-co-ordinates. And through good structure the organization can runs fast towards its objectives and can achieve goals easily. In both organization culture developed by sharing their own culture which is very effective for both organization because by communication with each other and sharing their own views will least conflict occurs between the employees and manager.

Through a friendly environment organization can run as high as they want. In organization the bureaucratic structure should be avoided and during decision making employees should involved because under this structure employees cannot work by their heart and with there full energy. They take their work as a burden. Under this structure organization cannot run towards there goals as fast as they need for their success because employees are not motivated by this structure they do not share their views and their ideas among themselves. This structure can have negative effect on organization. It can be good thing especially in tackling issues that would become recurring in large businesses. Through good structure and culture employees are motivated and they share their new ideas. They help each other and they also tries to solve the problems of organization.

Task for D1


The major problems of habib bank is at time facing more than a few dissatisfied customers of credit cards as other banks are offers lower rates and fees. These customers are having are bad experience with this bank. The department at present is facing a major problem of continues hiring and firing. This is resulting in greater difficulty of coordination and the motivation level that may exist in a stable environment. Being a client of habib bank from past 3 months I saw at least 3 people who left their job, 2 who were fired and approximately 7 employees who were hired .Apart from this there is also the problem that time has to be taken out to induct the new employees and train them . There is however no designated trainer and therefore the BDE's have to carry out the training setions.

The management environment of this department promotes fear and on the other hand it adopted leadership approach to treat staff. It's resulting in a certain extent of dissatisfaction and also promoting a greater sense of insecurity amongst the staff. The result is that have lack of productivity that exists due to the difference between complete commitment of the staff and the approach of "just surviving" that they have adopted at present. The limited numbers of firms that are on the approved list of companies and are banned of self employed professionals are not being eligible for personal loan. This is also limiting the business in Peshawar market.


The organization should focus on participative and pre active work of management through which the organization can easily analyze the problems and issues. The participative approach will also be effective in keeping relationship among the staff and as well among the different units of organization. When there will be a strong relationship between staff and different units then the decision making process will also be as fast as required by the organization.

The organization should focus on training and development in order to guide the staff regarding the culture and structure of the organization. Through training and development the employees will come to know about the norms, values, beliefs and symbols which should be adopted during his working period at the organization.