A Brief ReportonFactors Influencing OrganizationStructureIn view ofHCL and TCSByAvinash BhaveJN170024PGDM A DefiningOrganization StructureOrganization Structure isa system consisting of a set of rules, norms and policies that define the variouswork roles and responsibilities and how they must be controlled andcoordinated. In other words, Organization Structure defines the hierarchywithin an organizationKeyfactors affecting Organizational StructureThe structure ofhierarchy should be such that the works flows smoothly from one managementlevel to the next. There are 5 important factors that affect the OrganizationStructure i.e.· StrategyHow can an Organization work in accordance to its vision and mission?· EnvironmentHow are changes, decisions and coordination handled by the employees throughwork culture?· Size of the organizationThe number of employers working in an organization indicates its size.
It isobserved that different organizations differ structurally with respect to labormanagement, rules and regulations, performance appraisal and budgets.· Age of the organizationLike its employees, an organization also develops through its life cycle –birth, youth, midlife and maturity. Every stage has a different requirement of standardizedsystems, procedures and regulations. E.g.
CEOs usually have the core decisionmaking power for their startups but as the firm grows, this power may bedistributed among CFOs, CTOs, Board Members, etc. · TechnologyTechnology is used to obtain certain desired output. Sometimes technologyreplaces the manpower previously needed. It also facilitates work flow and canbe used to streamline the entire hierarchy. HowThese Factors Affect Organization Structures of HCL and TCSHCL is a 41-year-old ITservices and consulting company employing more than 1,17,00 employees. ItsOrganization Strategy is the Mode 1-2-3 Strategy which is essentially productdriven courses of action. HCL aims at delivering customizable product as perevery customer demand. This is done by maximum customer interaction andbuilding partnerships with companies like IBM.
HCL’s strategyessentially calls for hardcore research and development and the ability toanticipate and understand the needs of various customers so that they can holdtrue to their strategy. Hence, the organization structure for HCL is theInverted Pyramid Structure. The inverted pyramid is a term for a reversal oftraditional management practices first used by United States Postal Services. Employeeswho are closest to customers are placed at the top and managers at the bottom.The employee is empowered with greater decision-making authority and freedom ofaction. The manager becomes a facilitator spearheading a team effort.TCS is a 50-year-old ITservices and consulting company with close to 4,00,000 employees. TheirOrganization Strategy is a long-term growth strategy consisting of· Customer-centricity· Full Services Capability· Global Network Delivery Model™ (GNDM™)· Strategic Acquisitions· Non-linear Business Models TCS’s customer centricand unique solutions strategy calls for a divisional organization structurewhere the departments function based on the products the firm provides.
Thisapproach makes it much easier to assign responsibility for actions and results.TCS uses this structure to create a culture at the divisional level that mostclosely meets the needs of the local market i.e. increase the level of serviceto customers. The divisional structure allows decision-making to be shifteddownward in the organization, which may improve the company’s ability torespond to its customers
