A are closest to customers are placed at the

A Brief Report


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Factors Influencing Organization

In view of



Avinash Bhave




Organization Structure

Organization Structure is
a system consisting of a set of rules, norms and policies that define the various
work roles and responsibilities and how they must be controlled and
coordinated. In other words, Organization Structure defines the hierarchy
within an organization

factors affecting Organizational Structure

The structure of
hierarchy should be such that the works flows smoothly from one management
level to the next. There are 5 important factors that affect the Organization
Structure i.e.

How can an Organization work in accordance to its vision and mission?

How are changes, decisions and coordination handled by the employees through
work culture?

Size of the organization
The number of employers working in an organization indicates its size. It is
observed that different organizations differ structurally with respect to labor
management, rules and regulations, performance appraisal and budgets.

Age of the organization
Like its employees, an organization also develops through its life cycle –
birth, youth, midlife and maturity. Every stage has a different requirement of standardized
systems, procedures and regulations. E.g. CEOs usually have the core decision
making power for their startups but as the firm grows, this power may be
distributed among CFOs, CTOs, Board Members, etc.

Technology is used to obtain certain desired output. Sometimes technology
replaces the manpower previously needed. It also facilitates work flow and can
be used to streamline the entire hierarchy.

These Factors Affect Organization Structures of HCL and TCS

HCL is a 41-year-old IT
services and consulting company employing more than 1,17,00 employees. Its
Organization Strategy is the Mode 1-2-3 Strategy which is essentially product
driven courses of action. HCL aims at delivering customizable product as per
every customer demand. This is done by maximum customer interaction and
building partnerships with companies like IBM.

HCL’s strategy
essentially calls for hardcore research and development and the ability to
anticipate and understand the needs of various customers so that they can hold
true to their strategy. Hence, the organization structure for HCL is the
Inverted Pyramid Structure. The inverted pyramid is a term for a reversal of
traditional management practices first used by United States Postal Services. Employees
who 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 of
action. The manager becomes a facilitator spearheading a team effort.

TCS is a 50-year-old IT
services and consulting company with close to 4,00,000 employees. Their
Organization Strategy is a long-term growth strategy consisting of


Full Services Capability

Global Network Delivery Model™ (GNDM™)

Strategic Acquisitions

Non-linear Business Models


TCS’s customer centric
and unique solutions strategy calls for a divisional organization structure
where the departments function based on the products the firm provides. This
approach makes it much easier to assign responsibility for actions and results.
TCS uses this structure to create a culture at the divisional level that most
closely meets the needs of the local market i.e. increase the level of service
to customers. The divisional structure allows decision-making to be shifted
downward in the organization, which may improve the company’s ability to
respond to its customers