Organizational Structure

[Type the document title]

PakLite Electrical Industries (Pvt.) Ltd.

Introduction to Business (Group Project)

Organizational Structure

ACKNOWLEDGEMENT
A work is never a work of an individual. We owe a sense of gratitude to the intelligence and cooperation of those people who had been so easy to let us understand what we needed from time to time for completion of this special project. We want to express our gratitude towards Mr. S Mohammad, our teacher for giving us an opportunity to do this project. Last but not the least, we would like to forward our gratitude to our friends who always endured us and stood by us and without whom we could not have imagined the completion of our project.

Introduction to Business (Group Project)

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Organizational Structure

TABLE OF CONTENTS
ACKNOWLEDGEMENT ............................................................................................................................ ii EXECUTIVE SUMMARY .......................................................................................................................... 1 INTRODUCTION ........................................................................................................................................ 2 Company name ......................................................................................................................................... 2 Major industry........................................................................................................................................... 2 Certification: ............................................................................................................................................. 2 Headquater: ............................................................................................................................................... 2 Board of directors ..................................................................................................................................... 2 History ...................................................................................................................................................... 2 Products .................................................................................................................................................... 3 Vision ........................................................................................................................................................ 3 Mission statement ..................................................................................................................................... 3 ORGANIZATIONAL STRUCTURE........................................................................................................... 5 Departmentalization .................................................................................................................................. 5 Work specialization .................................................................................................................................. 6 Chain of command .................................................................................................................................... 6 Span of control .......................................................................................................................................... 6 Centralization or decentralization ............................................................................................................. 6 Formalization ............................................................................................................................................ 7 RECOMMENDATIONS/CONCLUSION ................................................................................................... 7

Introduction to Business (Group Project)

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Organizational Structure

EXECUTIVE SUMMARY
The project assigned to us was the analysis of organizational structure of an organization. We choose the PAKLITE Electrical Industries (Pvt.) Ltd. for our project. The reason for choosing this company was that, it is a well known electrical company having 2nd rank in PAKISTAN after Phillips. We visited the factory and collected data of our concern. We conducted a meeting with the Manager Mr. Mushtaq who provided us a lot of information which we needed. We spent almost 2 hours during our visit to the factory. We find that management at PakLite is very co-operative to all the visitors. All staff-members are also very co-operative and devoted to their job. Management is using the Management Information System (MIS) which enhance the performance of management.

Introduction to Business (Group Project)

Organizational Structure

INTRODUCTION
Company name: PAKLITE Electrical Industries Limited (PEIL) Major industry: Manufacturing, distribution Certification: ISO 9001, 2000 Headquater: PAKLITE Electrical Industries (Pvt) Ltd. Sheikhupura Road, Gujranwala TEL: (+92 055) 4272890 FAX (+92 055) 4272894 Board of directors Chairman & Managing director: Mr. Javaid Iqbal Directors: Mr. Muhammad Tahir Khokhar Ms. Shahida Iqbal Mr. Muhammad Hanif Mr. Zaib Zahoor History PakLite Electrical Industries (Pvt) Ltd (PEIL) was incorporated as a private limited company in May 1994. With a paid up capital of Rs. 2 million, which was further increased to Rs. 8.6 million and it now stands for Rs. 20 million. Before that, this business was started in 1987 as a soleproprietorship and started manufacturing of 40-Watt Ballasts (Chowk) and Strip Lights of 4-Ft. size. Soon after this, Company added 20-Watt Ballasts and 2-Ft. Strip light in the line of production. Within a short period, Company started production of many other quality items such as Double Light, Batten Light, Street Lights, and Office Lights etc. PEIL manufactures a range of different Electric fittings and fixtures. It has a wide distribution network across Pakistan comprising 12 distributors, 3,000 dealers. It has over 200 employees

Introduction to Business (Group Project)

Organizational Structure working in the production and other departments. It also has a very trained and professional team of around 25 marketing personnel. Company possesses 21045 Sq. Ft. of land with 23151 Sq. Ft. covered area including ground and 1st Flours. PEIL is one of the fastest growing Private Ltd Electric and Fitting Industry in the Pakistan. It is certified as an ISO9001 company by BVQI in 2004. It has the highest number of selfmanufactured products range in Pakistan. PEIL has complete manufacturing expertise and does not take any vendor services from outside parties. The company has a very low level of sales returns. PCSIR has approved the quality of the Ballast of the company. Now-a-days the company is providing a wide and complete range of electrical fixtures and ballasts through country's wide distributors. The market force of the company is fully equipped with modern facilities of communication, mobiles, fax, and email etc. After 25 year of success the company has 2nd rank in the market after Philips. Products The PEIL is making following products: Strip Lights. Batten Lights. Industrial Lights. Street Lights. Diffuser Lights. Road Lights. Ballasts (ranging from 40 to 400 watts) Flood Lights. Poles for High Way Lights. Canopy Lights

Vision In a world where technology increasingly touches every aspect of our daily lives, we will be a leading solutions provider in the areas of healthcare, lifestyle and enabling technology, aspiring to become the most admired company in our industry as seen by our stakeholders. Mission statement The companys mission statement is as follows: Our basic mission is to provide the Lighting Fixtures & Ballasts of International quality at affordable prices for Pakistani customers and to safeguard them from Multinational exploitation. We also look forward to explore International Markets in order to generate Foreign Exchange for their country.

Introduction to Business (Group Project)

Organizational Structure

Introduction to Business (Group Project)

Organizational Structure

ORGANIZATIONAL STRUCTURE
Formal arrangement of job tasks is called organizational structure. It can be represented as organizational chart.

Departmentalization Different tasks are assigned to the different departments. Basis of forming departments is to increase the efficiency of the organization. The set process is applied in the every department to check the performance of the employees. PAKLITE has the following departments: Production Department Marketing Department R & D Department Sales Department Accounts Department Finance Department Inventory Department Human Resource Department Quality Control Department

Introduction to Business (Group Project)

Organizational Structure

Work specialization Work specialization is defined as the degree to which activities in an organization are divided into separate jobs. PEIL uses high work specialization to efficiently make products. Managers at PEIL see work specialization as an important organizing mechanism but not as a source of everincreasing productivity and profits. Chain of command At PEIL it is rule that the employees must reports only to their group leader manager and did not response to any other person because may be the other manager will misguide the employee due to insufficient knowledge about that department(if he is from other dept.), jealousy factor or may be the other personal reasons. So, there is unity of command. But in the upper level of management there is no delegation of authority. Span of control It is the amount of employees that are efficiently and effectively managed by a single employee. The managers can handle the worker according to their ability. In PakLite a manager can handle round about 25 to 30 workers at a time easily. The managers of PakLite are qualified and well trained, so they control workers very easily. Centralization or decentralization The management structure for operation possesses both characteristics of centralization and decentralization. Strategic decisions are made by top management and middle management tries to achieve targets set by the top management. As a whole it is more centralized. Any worker, any manager can share his problem with top-level management. There is no restriction about that. An organizations size significantly affects its structure. Large organizations tend to have more specialization, centralization and rules and regulations than do small organizations. However this relationship is not linear. PEIL is a small organization having 200 plus work force but it is more centralized and follows the rules and regulations strictly.

Introduction to Business (Group Project)

Organizational Structure Formalization Formalization is defined as how standardized an organizations jobs are and to what extent employee behaviour is guided by rules and procedure. PEIL is an organization with not very high level of formalization. But there are explicit job descriptions, numerous organizational rules, and clearly defined procedures which cover up the work processes, therefore, behaviours of employees at job place are structured. And also the degree of formalization varies within the company.

RECOMMENDATIONS/CONCLUSION
We learnt the concept of departmentalization. It increases the efficiency of the organization. We learnt the structural importance of the organization. It is important because it makes the works of the organization easier and organization can easily find out mistakes and where these mistakes have been done by which department. Being a manufacturing organization it is good to be centralized, as centralization may facilitate the ability to monitor several manufacturing locations. The organization is not highly formalized. So, being centralized it should improve the formalization level. Jobs should be standardized and employee behavior should be standardized by implementing rules in order to increase the effectiveness of centralization.

Introduction to Business (Group Project)