5. Present the structure of your organization and explain the name of it at various levels

Structure at Organization level: Multi-divisional

Reason: Chart is self-explanatory

1. Presence of centralized support departments2. When Functional specialists from centralized support departments are allocated to specific project, they report to the Project director3. Each Project is self-sufficient for executing the project from the start to the end4. Cluster Project Director role is created only to reduce the span of control of CEO. He does not play any major integrating role.

Structure at Project site level: Product Division Structure

1. Each execution manager has to coordinate extensively with the support functions. Hence the structure is organic2. Functional differentiation is high3. Hierarchy is not strictly followed

Q6. Explain the reason for above mentioned structure based on 5 contingency factors

1. Environment: at site levela. Customer: L&T’s highest value is customer satisfaction and continuous improvement. So

while executing any activity, quality and safety are given prime importance. So execution managers have to coordinate with safety and quality functions at every point of time.

b. Suppliers: For paying the suppliers execution managers have to coordinate with finance function

c. Sub-Contractors: For Sub-contractor billing planning has to coordinate with all execution managers

d. Each execution manager need not be given full self-sufficiency as coordination between execution team and support functions can be managed efficiently

e. Depending on the size of the project, the decision making could be centralized or de-centralized. But in all projects there will be good amount decentralization.

Environment: at organization level

a. Along with specific environment, CEO along with corporate managers have to deal with the general environment like economic, political, technological, environmental and in-ternational forces

b. For the corporate managers to concentrate on long term goals of the company, they are relieved of the coordination activities with project directors. So the project directors are given functional managers, report to the directors.

2. Goals and strategya. At site level, there is high level of interaction with the customer and the focus of the em-

ployees is customer satisfaction and faster execution. So there is high level of decentral-ization. The organic structure paves the way for better provision of services

b. At the organizational level the goal is to get more projects and devising ways to improve the efficiency of execution. Since they are not involved in day to day execution of pro-jects, they get a lot of time to concentrate on their long term goals.

3. Culturea. Culture is the same at both the organization and site level. b. Same terminal and instrumental values namely high quality, excellence, continuous im-

provement and lean executionc. Change in CEO may affect the culture of whole company including the facilities available

for site based employees. 4. Technology at site level

a. At site level, power plant operations employ continuous process technology due to its high technical complexity. Ratio of engineers to field operators is 1 to 3 and there are 5 hierarchical levels. The processes are mostly automated and require human intervention only during start-up or shut down. The processes are monitored through computers and distributed control systems.

b. Erection and commissioning activities cannot be automated and the work depends en-tirely on skills, knowledge and procedures and hence employ small batch and unit tech-nology. The ratio of engineers to supervisors is 1 to 10 and there are 2 or 3 hierarchical levels.

c. All the departments performing the activities mentioned above follow organic structure.

Technology at organization level

a. At organization level, the company always tries to increase the level of technical complexity and to increase the efficiency of functioning. To increase the monitoring and control over the work process and make it predictable, they implement tailor made software for each process. But still the work done at corporate level cannot be automated. Knowledge and skills are the most desired qualities and work depends a lot on them. So the work employs small batch technology with a little bit of technical complexity.

b. Ratio of managers to non-managers is 1 to 5 and there are 3 or 4 hierarchical levels.

5. Size

a. Each site has an average strength of 50 employees. Ideal for organic structure. Integration is possible and increases efficiency of employees.

b. Corporate office houses more than 2000 employees. Best suited structure is mechanistic structure where integration is low and centralized decision making increases efficiency.