Dr. Swati Agrawal
An organizational structure defines
how activities such as task allocation, coordination, supervision are directed toward the
achievement of organizational aims.
Organization structure differs from organization to organization in the
form of size, technology, strategy and environment.
Size: The structure of an organization mainly
depends upon the size i.e. the no. of employee size.
Larger the size of the employee larger complex
More level of division will be required to
allocate the human resource optimally.
Airtel has an employee size of 25,400
(2016) so they can effectively work in tall structure
Vodafone has an employee size of 111,556 (2017)
so they also follow the tall structure to work efficiently.
organization’s strategy affects the organizational structure, A company may decide to be always the
first on the market with the newest and best product or it may decide that it
will produce a product already on the market more efficiently and more cost
Airtel strategy is hunger to win customer for life, so they want to excel and
hence have structure that helps them to achieve their mission.
strategy is to be most loved telecom service in India and they have made their
structure likewise to achieve their mission.
The environment is the world in which the
organization works, and includes conditions that influence the organization
such as economic, socio cultural, legal, political, technological, and natural
things are whether the environment is dynamic or stable.
environment is when the customers demands are not changing and is well
understood by the organization while Dynamic environment is when the customers
demand is changing and they want something new.
in stable environment the organizational doesn’t need to update their
technology but in dynamic environment the organization need to update their
technology to fulfill their customer demand.
with the introduction of Reliance Jio the telecom sector took the drastic
change and affected the telecom companies.
introduction of cheaper plans and unlimited data Airtel and Vodafone both had
to change their plans and bring cheaper plans to retain the consumers.
even signed the 5G deal.
is undergoing merger with Idea telecom.
have appointed Indian CEO Sunil Sood.
Age of the organization: At the outset of a company’s life, its small size
enables the organic structural qualities which promote flexibility and
responsiveness. As it ages and grows, a business starts to mechanize, adding rules,
procedures and policies; closely defined tasks; extensive internal systems of
control and command chains. In a nutshell, maturity brings about bureaucracy.
In the maturity stage, rules, regulations, budgets, a refined division of labor
and control systems have established.
E.g. Airtel and Vodafone are their
midlife stage and have attained a good success and they have huge human
employment, so they follow the formal and tall format for their organization
we can conclude that organizational structure depends upon how the company
wants to run its business, its size and its objective.