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Introduction

There is no one definite organizational structure and design that works for all businesses, but
almost all types of businesses have some degree of organizational structure and design that
divides, groups, and coordinates job tasks in that business.


This group report is on Beximco Pharma Ltd. Ltd. which is one of the leading and most
diversified trading companies in Bangladesh. This report includes details of the Organizational
structure and design of Beximco Pharma Ltd.. Details of the companys management process
was obtained from Official Website of Beximco Pharma Ltd. The report contains the company
background, company SWOT analysis, Organizational structure and design.
Six Key Elements in Organizational Design

Organizational design is engaged when managers develop or change an organization's structure.
Organizational Design is a process that involves decisions about the following six key elements:
I. Work Specialization
Describes the degree to which tasks in an organization are divided into separate jobs. The main idea of
this organizational design is that an entire job is not done by one individual. It is broken down into steps,
and a different person completes each step. Individual employees specialize in doing part of an activity
rather than the entire activity.
II. Departmentalization
It is the basis by which jobs are grouped together. For instance every organization has its own specific
way of classifying and grouping work activities.

There are five common forms of departmentalization:
1. Functional Departmentalization. As shown in the Figure 2-1, it groups jobs by functions performed.
It can be used in all kinds of organizations; it depends on the goals each of them wants to achieve.

Figure 2-1Functional Departmentalization example

Different aspects on this type of departmentalization:

Positive Aspects Negative Aspects
o Efficiencies from putting together
similar specialties and people with
o Poor communication across
functional areas
common skills, knowledge, and
orientations
o Coordination within functional area
o In-depth specialization
o Limited view of organizational
goals

2. Product Departmentalization. It groups jobs by product line. Each manager is responsible of an area
within the organization depending of his/her specialization

Figure 2: Product Departmentalization example
Source: Bombardier Annual Report

Different aspects on this type of departmentalization:
Positive Aspects Negative Aspects
o Allows specialization in particular
products and services
o Managers can become experts in
their industry
o Closer to customers
o Duplication of functions
o Limited view of organizational
goals

3. Geographical Departmentalization. It groups jobs on the basis of territory or geography.

Figure 2-3: Geographical Departmentalization example








Different aspects on this type of departmentalization:
Positive Aspects Negative Aspects
o More effective and efficient
handling of specific regional issues
that arise
o Serve needs of unique geographic
markets better
o Duplication of functions
o Can feel isolated from other
organizational areas

4. Process Departmentalization. It groups on the basis of product or customer flow.

Figure 2-4: Process Departmentalization example

Different aspects on this type of departmentalization:
Positive Aspects Negative Aspects
o More efficient flow of work
activities
o Can only be used with certain types
of products

5. Customer Departmentalization. It groups jobs on the basis of common customers

Figure 2-5: Customer Departmentalization example

1. Different aspects on this type of departmentalization:
Positive Aspects Negative Aspects
o Customers' needs and problems can
be met by specialists
o Duplication of functions
o Limited view of organizational
goals


III. Chain of command
It is defined as a continuous line of authority that extends from upper organizational levels to the lowest
levels and clarifies who reports to whom. There are three important concepts attached to this theory:
Authority: Refers to the rights inherent in a managerial position to tell people what to do and to
expect them to do it.
Responsibility: The obligation to perform any assigned duties.
Unity of command: The management principle that each person should report to only one
manager.

IV. Span of Control
It is important to a large degree because it determines the number of levels and managers an organization
has. Also, determines the number of employees a manager can efficiently and effectively manage.


V. Centralization and Decentralization

More Centralization More Decentralization
Environment is stable
Lower-level managers are not as
capable or experienced at making
decisions as upper-level managers.
Lower-level managers do not want to
have say in decisions
Decisions are significant.
Organization is facing a crisis or the
risk of company failure.
Company is large.
Effective implementation of company
strategies depends on managers
retaining say over what happens.
Environment is complex, uncertain.
Lower-level managers are capable
and experienced at making decisions.
Lower-level managers want a voice in
decisions.
Decisions are relatively minor.
Corporate culture is open to allowing
managers to have a say in what
happens.
Company is geographically dispersed.
Effective implementation of company
strategies depends on managers
having involvement and flexibility to
make decisions


VI. Formalization
It refers to the degree to which jobs within the organization are standardized and the extent to which
employee behavior is guided by rules and procedures.




Beximco Pharma Ltd. Ltd.: Brief History and Achievements
Beximco Pharma Ltd. Ltd. is a leading edge pharmaceutical company and is a member of the Beximco
Group, the largest private sector industrial conglomerate in Bangladesh. The firm started operation in
1980, manufacturing products under the licenses of Bayer AG of Germany and Upjohn Inc. of USA and
now have grown to become nation's one of the leading pharmaceutical companies, supplying more than
10% of country's total medicine need. Today Beximco Pharma Ltd. Ltd.manufactures and markets its own
`branded generics' for almost all diseases from AIDS to cancer, from infection to asthma, from
hypertension to diabetes for both national and international markets.

Beximco Pharma Ltd. Ltd. manufactures a range of dosage forms including tablets, capsules, dry syrup,
powder, cream, ointment, suppositories, large volume intravenous fluids, metered dose inhalers etc. in
several world-class manufacturing plants, ensuring high quality standards complying with the World
Health Organization (WHO) approved current Good Manufacturing Practices (cGMP). They also contract
manufacture for major international brands of leading multinational companies.

Beximco Pharma Ltd. : Organizational Structure
BP operates its business through extensive departmentalization as needed. This is for specified
effectiveness of the tasks. The business activities of BP, BIL and PCL are directed, controlled
and monitored from the head office of Beximco Pharma Ltd located at 7A, Dhanmondi, Dhaka.
Being a leading Pharmaceutical company in the country it employs good number of people in
different departments to keep its business thriving. The following major departments coordinate
the activities of BP, BIL and PCL:
Central product management (CPM) department
Planning department
Purchase Department
Sales department
Sales education and training department
Medical services department
Business Research & Development department
International marketing & fine chemicals department
MIS department
Finance and Accounts department
CPM
CPM stands for Central Product Management that takes care the total marketing of a product. It
includes
i. selection of new product
ii. design of new product
iii. design of packaging
iv. Introduction of the product to the market and others
Planning Department
The planning department ensures smoothness of total operation of BPL. It is concerned with the
following:
i. The production planning and
ii. Raw material procurement.
iii. Inventory Planning
Based on sales forecast from the CPM planning department breaks up the yearly sales forecast to
monthly basis and develop the planning of production, purchase and stock maintenance. It also
initiates the negotiation of purchase. It refers the suppliers quotations to the purchase
departments.
Planning department try to ensure buffer stock of three months of all the raw materials to meet
any untoward events or circumstances in market.
Purchase Department
The purchase department is concerned with all the purchases of BPL. Apart from purchasing it
keeps the record for tracking the costs of the company. This department works in coordination
with planning department for negotiation and price fixing.
Sales Department
To follow the recent management of the business world the sales department has been
completely separated from marketing department. It sets the forecast in coordination with
marketing department and upon fixation of the sales it is the responsibility of the sales
department to realize the yearly sales volume forecasted.
Medical representatives are farthest unit of the organization. They are to generate demand for
products. They are trained before sent for field.
Training Department
Training department is to provide the training to the medical representatives of the company.
This training is necessary to improve the quality of job-related function. The curriculum of
training varies from group to group. The department basically offers 4 types of training
programs:
Induction Training Programs (for MRs )
Supervisory Management Programs (for FSs)
Advanced Supervisory Management
Refresher Training Programs (for everyone in sales in as and when basis).
The MRs are virtually the direct product of this training department. The selling skill of the MRs
are dig out through the training session on that ultimately BPL depends for attaining its target
sale.
MIS Department
The MIS department is the department that takes care of total automation of BPL. It supports the
hardware and network of the company and the factory. It maintains the automation regularly and
keeps the pace with the global IT. The MIS department also maintains the radio-link between the
factory and the head-office.
Though separately dealt before, recently software department has been incorporated with MIS
department. This software section is to work for developing software solutions as per
organizational requirements. It also supports the other companies requirements of the chemical
division. The facilities of MIS department are available round the clock for 24 hours.
MSD
MSD stands for Medical Services department. It is a unique department in this industry as BPL
established this first ever in order to create easy relationship through using the professional
linkage with the doctors, the ultimate customer of the pharmaceutical companies.
This is a supporting department that provides services (e.g., slide preparation, providing different
journals, books etc.) to the health professional on different issues and receives feedback from
them. It arranges seminars on different issues such as diseases and their cures in different parts of
the country. It publishes a special Medical Newsletter quarterly and sends the current issues to
the enlisted doctors at free of cost. The newsletter consists of important, recent medical articles.
It also provides news gathered from Internet and allows free browsing facility for the doctors.
Thus it helps the medical community and at the same time increases the company image outside.
Business Research & Development Department
The department began its operation for the purpose of working on market development both
domestic and international. It assists product development and marketing of new products. The
product development process is as follows:
Quality Assurance (in each stage in factory) and Quality Control improvement is another
concern of this department. It suggests the SOP (Standard Operating Guideline), which is the
biggest part of GMP (Good Manufacturing Practices). It is mention that by practice BPL follows
the highest standard of quality suppose as suggested by WHO. Purchase and material
management coordination is also included within responsibilities of this department.
International Marketing
It is note that BPL has started marketing its product internationally. This department is
concerned with the international promotion and marketing of BPL finished products and basic
chemicals. It analyzes country analysis in terms of health status, economy, market and its
growth, legal bounds of entering the market with its product etc to find the feasibility to market
its products. So far it has 18 export outlets.
Multimedia Department
BPL is the only pharmaceutical company that has a multimedia department. This department is
helping in the promotional activities of BPL. It designs medical videos for the doctors. The color,
size, shape, lettering etc. of the text are carefully selected to attract the target audience easily.
It has designed some Kiosks that have been placed in some medical colleges for the students to
learn and be trained.
The department also provides audio-visual aids to other departments of the company and also
assists to decorate the publications.
Finance and Accounts Department
There are three sections in this department.
Treasury section
Accounts section
Cost and budget section
Treasury section deals with banks and bills. It also looks after the cash planning and
management.
Accounts section is there to maintain all records and transactions. it is automated with aid of the
software named MAPICS (Manufacturing Accounting Planning Information Control System).
Cost and budget section identifies the cost centers and prepares the budget. Cost section
calculates the product cost and cost of goods sold. The annual budget preparation starts at
October. Budget review is done quarterly (internally) and half-yearly (by the top management).
It compares the budgeted and actual sales and expenses and prepares reports on them.
Evaluate and Analyze Beximco Pharma Ltd.'s Organizational Structure
Let's examine Beximco Pharma Ltd.'s organizational structure with the Six Key Elements
mentioned in Section 2.

I. Work Specialization
As we can recall from the Organizational Structure Chart in the previous section, different jobs
and tasks are grouped and assigned to different divisions or departments based on the skills or
specialties in that department. That is:
1. Employees in Administrative Units may not have the skills to work in Business Units or vice-versa.
2. Most of Beximco Pharma Ltd.'s top managers are promoted from or within the departments or divisions that
have similar functions and responsibilities.
Is work specialization high in Beximco Pharma Ltd.? Yes, indeed, but not in the sense of
assigning a specific and repetitive task to a particular unskilled worker. BEXIMCO PHARMA
LTD. LTD. delegates its tasks and jobs to workers on a larger scale. It is on the departmental
level: each department or division has teams comprised of very skillful employees that
concentrate on their own line of products and responsibilities.

II. Departmentalization:
BEXIMCO PHARMA LTD.'s departmentalization is mixed with Functional and Product
Departmentalization. As seen in the Organizational Structure Chart, after separating the
organization into 2 big parts, the Business Units and the Administrative Units, each part is
divided into different departments and divisions:
Business Units has sub-units that are separated based on Product Departmentalization. BEXIMCO PHARMA LTD.
LTD. has separated this part into eight different areas to research and develop their own specialized field to
successfully meet the needs of consumers.
Administrative Units consists departments that are departmentalized by Functions such as Marketing, Financial,
Human Resource, and Global Development.
III. Chain of Command
The chain-of-command, as the textbook indicated, has far less importance today in many
organizations including BEXIMCO PHARMA LTD.. The evidences are:
The authority managers impose upon their teams is kept to a minimum because employees of BEXIMCO PHARMA
LTD..are experts at what they do. Instead of handing orders from top to bottom, managers in each of the different
business units merely "oversee" their progress and performance.
"The obligation or expectation to perform" falls on individuals or teams. That is, while the top managers only "oversee"
the operations without actually assigning tasks to each individual, the teams take on the responsibilities to divide work
among themselves and carry out operations in order to attain BEXIMCO PHARMA LTD.s objectives.
As a result, unity of command is almost non-existent since the majority of employees are working in teams (they
report to each other, report to the manager who oversees them, and may report to other managers when different
resources are needed from other departments), so it may not be the case that each person only reports to only one
manager.
Because the responsibilities mainly fall on teams in BEXIMCO PHARMA LTD., the authority is
not strongly emphasized and results in an irregular line of authority. Therefore, Chain of
Command is not very significant in BEXIMCO PHARMA LTD..



IV. Span of Control
The trend in recent years has been toward larger spans of control because it reduces costs, speeds
up decision making, increases flexibility, gets closer to customers, and empowers employees.
Our research indicates that BEXIMCO PHARMA LTD. LTD. is a part of this trend as well. Here
are some hints:
Hint 1: Many of BEXIMCO PHARMA LTD.'s top executives are in charge of many divisions or have a wide range of
responsibilities.

Hint 2: It seems that workers have to be very skillful and well trained for working in BEXIMCO PHARMA LTD.'s
departments and divisions. Evidence as follows:
Especially in BEXIMCO PHARMA LTD.'s business units, employees seem to be able to work in teams, make
decisions, and execute operations without direct supervision from top management.
It is pretty remarkable that a company has almost 2,800 employees over the country with a tremendous amount of
business operational activities, yet its Administrative Units have only 4 departments. If the employees are not well-
trained, it would be hard to maintain smooth operation and communication throughout the company.
One must understand that every managers cannot attend to all of the different divisions that are
assigned to them and make all of the decisions for them. Therefore, they must entrust teams at
the division level with the power to make decisions that are fitting to BEXIMCO PHARMA
LTD.'s goals.
Furthermore, while we suspected that BEXIMCO PHARMA LTD. LTD. may have wide span of
control from reading about top managers' roles (from hint 1), hint 2 confirmed our assumption
because skilled workers are required for a company that takes this approach. BEXIMCO
PHARMA LTD. LTD. can't possibly operate so efficiently and effectively with a wide span of
control if their employees are not very skilled or well-trained.

V. Centralization or Decentralization?
From what we have seen so far, BEXIMCO PHARMA LTD. LTD. appears to be a fairly
decentralized company. As mentioned for several times, QUALCOM has the following qualities
that make it appear to be decentralized:
Teams in each department/division make their own decisions in their projects based on their knowledge and skills
while fulfilling divisions and/or company's goals
Managers may rely on teams' expertise and experiences during departmental or divisional decision making such as
setting goals. Managers also oversee the teams and offer suggestions when needed
All departments and divisions may need resources from each other and therefore organizational level decisions cannot
be made by just one department or an individual
Since the decision making is not concentrated at a single point in the organization, it makes
BEXIMCO PHARMA LTD. LTD.a decentralized company.

VI. Formalization in BEXIMCO PHARMA LTD. LTD.
BEXIMCO PHARMA LTD. LTD.spent great effort to make it's employees' working
environment flexible without many boundaries. Simultaneously, every employee is persuaded
and encouraged to live life as a learning process. With this approach, BEXIMCO PHARMA
LTD. LTD.has created a highly intelligent and highly skilled workforce that is expected to
achieve company goals with great deal of freedom. It is just like the textbook says: "Where
formalization is low, job behaviors are relatively unstructured and employees have a great deal
of freedom in how they do their work."

















COMPANY SWOT ANALYSIS

A planning tool used to analyze an organizations Strengths, Weaknesses, Opportunities and
Threats. Such factors of Beximco are summarized in the following table:



Strength
High Employee Empowerment
Capability to Bring Innovation
&high product differentiation
Outstanding Product Quality
World Class Professional Service

Weakness
Insufficient Working Capital
Not Operating in Low Cost Market
Corruption within the organization
Opportunities
Ability to Retain Growth & Market
Focus in Difficult
Operating Situations
Ability to Exploit Opportunities of
Patent Law as an LDC in
International Market.

Threat
Strong Competitors in Domestic &
International Market.
Political Instability
Government & International
Regulations.
Rising Trend of Material Price.

Conclusion -- Is BEXIMCO PHARMA LTD. traditional or
contemporary?

At first glance, BEXIMCO PHARMA LTD. seems to employ two types of traditional designs in
its structure. One is Functional Structure that applies to its Administrative Units in which
departmentalization is based on the function of the departments. The other is Divisional
Structure which applies to its Business Units where each division's teams are responsible for
performance and have strategic and operational authority while the top management acts as an
external overseer to coordinate and control the various divisions.

However, BEXIMCO PHARMA LTD. also demonstrates signs of Contemporary Organizational
Design. By exhibiting the characteristics of a team structure, a design in which an organization is
made up of teams that work toward a common goal, BEXIMCO PHARMA LTD. LTD. was able
to provide expertise in every specific field. Also, characteristics of a Learning Organization are
thrown into the mix. Beximco Pharma Ltd. Rabbur Reza, chief operating officer, has won the
prestigious 'Australian Alumni Excellence Awards-2014' in the category of business and
leadership. By receiving this award, BEXIMCO PHARMA LTD. LTD. demonstrated that they
are a company that builds on learning and development. This recognition highlights BEXIMCO
PHARMA LTD.'s commitment to employee development and their focus on supporting learning
with their overall business objectives.















Works Cited
Internet Resource:
BEXIMCO PHARMA LTD. LTD.Annual Report:
www.beximco-pharma.com/financial-reports.html
BEXIMCO PHARMA LTD. LTD.Company Information:
www.beximco-pharma.com
BEXIMCO PHARMA LTD. LTD.Press Release Archives:
www.beximco-pharma.comour-products.html
Textbook
Robbins, Stephen P. and Coulter, Mary. Management. 11th Global Edition. Prentice Hall. Upper
Saddle River, New Jersey.