ORGANISATIONAL STRUCTURE OF TATA STEEL

The entire structure of the organization of Tata Steel can be broadly divided into 3 levels,each level
having separate roles and responsibilities. These 3 levels are uppermanagement, senior management
and the middle management. Each of these lower levelsis responsible to perform its functions and
thereby report to the next higher level in theorganization on a periodic basis. Overall, we can say that
the company has a flatstructure, beginning from the top management to the lowest level of
management.The Upper Management of the company has designation like the Managing Director
of the entire company and the Group Executive officer. The Senior Management has thevarious Vice
Presidents of the different departments which come directly under theManaging Director. Under the
Vice Presidents we have the Chiefs of the variousfunctions who coordinate the activities of its
function along with the other departments.There can be more than one chief in a department
depending upon the number of line of the products. This is seen in the Long Products Departments.
The Chiefs are alsoaccompanied by the Heads in some of the departments. Under these Chiefs and
Heads,we have the various Sectional Heads who are the Unit Leaders, the Managers or theOfficers.
This structure is prevalent in the entire organization on a national scale.In the Finance and Accounts
Department of Tata Center, Kolkata, the functions arehandled by the Head of Marketing and Finance.
Then, there are the various ManagerAccounts who handle the different aspects of the department.
Under these Managers arethe officers who carry out the actual accounting work of the department

Definition
A divisional organizational structure usually consists of several parallel teams focusing on a single product or
service line. Examples of a product line are the various car brands under General Motors or Microsoft's software
platforms. One example of a service line is Bank of America's retail, commercial, investing and asset
management arms.
Unlike departments, divisions are more autonomous, each with its own top executive--often a vice president-and typically manage their own hiring, budgeting and advertising. Though small businesses rarely use a
divisional structure, it can work for such firms as advertising agencies which have dedicated staff and budgets
that focus on major clients or industries.

Advantages
Divisions work well because they allow a team to focus upon a single product or service, with a leadership
structure that supports its major strategic objectives. Having its own president or vice president makes it more
likely the division will receive the resources it needs from the company. Also, a division's focus allows it to
build a common culture and esprit de corps that contributes both to higher morale and a better knowledge of the
division's portfolio. This is far preferable to having its product or service dispersed among multiple departments
through the organization.
Related Reading: Advantages & Disadvantages of Vertical Organizational Design

Disadvantages
A divisional structure also has weaknesses. A company comprised of competing divisions may allow office
politics instead of sound strategic thinking to affect its view on such matters as allocation of company resources.
Thus, one division will sometimes act to undermine another. Also, divisions can bring compartmentalization
that can lead to incompatibilities. For example, Microsoft's business-software division developed the Social
Connector in Microsoft Office Outlook 2010. They were unable to integrate Microsoft SharePoint and Windows
Live until months after Social Connector could interface with MySpace and LinkedIn. Some experts suggested

that Microsoft's divisional structure contributed to a situation where its own products were incompatible across
internal business units.

Alternatives
Large organizations that want the focus of a division could instead spin off into a free-standing subsidiary.
Smaller organizations can work through major projects via dedicated departments or ad-hoc cross-functional
work teams.

Making It Work
To be successful, divisions must be well managed. Executive leadership is the single most important
determinant of success for a company using a divisional structure. The top leaders need to understand what each
division is doing and provide leadership to the division chiefs on how to accommodate new strategic directions
or more effectively partner across divisions. In addition, the executives should have a solid grasp of resource
use. Having a shared pool of centrally-managed resources like administrative support or office equipment can
reduce costs and organizational complexity.