NARSEE MONJEE INSTITUTE OF MANAGEMENT STUDIES

SCHOOL OF BUSINESS MANAGEMENT

MBA CORE, 2022-24

Organizational Behavior 2

Organizational Structure &Design

Submitted By:

Group Member

Irram Loladia I018

Vidit Sood I019

Kishlay Bhojwani I029

Rishab Jakhar I054

Tanisha Sarraf I062

INTRODUCTION........................................................................................................................... 3
Pictorial Representation of Organizational Structure ................................................................. 3
How has the structure influenced and has been instrumental in the company’s growth. ....... 4
In accordance with future business plans, Design and justify the most effective
Organizational Structure. ............................................................................................................... 6

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 INTRODUCTION

Iksula is a leading e-commerce solutions provider for brands and retailers globally, led by a team
with over four decades of experience. The company assists over a dozen billion dollar companies in
managing their commerce operations seamlessly. It also helps brands and retailers realize superior
economic performance by transforming their supply chain and retail operations for digital era. This
includes engineering cutting-edge tech for creating engaging experiences for their customers and
automating business processes for their stakeholders. Since Iksula’s inception in 2007, it has been
reckoned as a benchmark brand in the space of e-retailization. Over the years it has developed
many successful landmarks and there has been no looking back ever since. Their forward-looking
leadership team is made up of dedicated, focused, and experienced executives. Working with each
other and with all their employees worldwide, their knowledge and experience come together to
make a difference for all their stakeholders. At Iksula, they leverage their own expertise alongside
partnerships with industry-leading platform providers to design an infrastructure that meets ever-
increasing expectations and enables their clients to meet their overarching business objectives. The
solutions that the company provides to its clients are omnichannel management, omnichannel tech
stack, customer data management, merchandizing management, seller management, supply chain
management, customer experience management, product catalog and intelligence, and iReco
among others. The industry which Iksula caters to includes consumer brands, retail and
marketplace, B2B and wholesale, and financial services, and provides top-notch services to all their
clients which fall under these categories

Pictorial Representation of Organizational Structure

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How has the structure influenced and has been instrumental in the company’s growth.

Iksula has always been a company which has consistently focused on growth and in its initial
period after inception, company focused on building up an organizational structure which would
support their business growth strategy. The company opted for functional structure as the
company provides specialized solutions and providing these solutions frequently with top notch
quality demands the business to have a stable organizational structure. Iksula follows two
functions of organizational structure – coordinated capabilities and coordinated activities to meet
their specific set of organizational and individual needs. A functional organizational structure is a
common type of business structure that organizes a company into different departments based on
areas of expertise, grouping employees by specialty, skill or related roles. Functional
organizational structure best suited because the company was in its initial stage and expanding and
this structure brings predictable stability. The size of the company was such that it followed
narrow chain of command as clear communication used to take place which resulted in direct
supervision, faster conflict resolution and clear instructions being passed down to the fellow
employees, this resulted in increased productivity due to close monitoring of employee’s
performance. This structure helped in classifying the employees by skill, speciality, or related
roles. Operating under this structure helped the company to group workers who possess similar
knowledge, and when this is implemented in a team environment, it helps in achieving company
goals efficiently.

The advantage of this structure is that grouping employees by specialization helps in ensuring that
a dependable level of departmental competence. This helps the company to ensure that any
support issues which arise, move up to the follow-up group are handled by fully qualified
personnel which would ultimately help increase the customer satisfaction and retention.
Operational speed also plays a very big role for any organization to grow at a rapid rate so a
related benefit of a functional structure is the operational speed it offers that is any support
problem is solved faster by a senior executive than someone with less experience. Employees have
unique skills that allow them to work more efficiently which adds to increased productivity.
Operational clarity helps in better functioning of an organization, segregating the workforce
according to functions helps in clarifying responsibilities and allocation of tasks in an
organizational structure. This definitely eliminates duplication of assignments that waste time and
effort and makes it easier for the management of the organization to direct work to appropriate
employees. When anybody within the company requires any kind of high-level information
regarding human resources, marketing, customer service or operations, it is very clear who they
can contact to get the right information. Employees with high levels of experience and knowledge
like senior and experienced managers have the opportunity to extend their knowledge of their
skillsets they possess to their team members, this results in an enhanced skill set for all the
members involved. The hard skills and soft skills of the employees involved may improve over
time as teams work together to find unique solutions and overcome any work-related challenges
that may arise. For any organization, it is vital that the organization manages its cost of operations
because that plays a very important role in managing an organization finance. This structure helps
in decreased cost of operation and helps the company save money in multiple ways. By organizing
the staff or classifying the staff according to the area of specialization, departments have their
unique tasks and that definitely contributes towards the greater organization goals. Assigning tasks
to employees based on their skills can also save money because the work gets done more
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efficiently. This structure influenced the company in a very positive manner and definitely helped
in the growth and expansion of the organizations targets.

But as the magnitude and size of the company grew, discrepancies started to arise and a change
in the structure was needed. In an organization, having a common organizational purpose
improves employee morale and performance and is an crucial predictor of organizational success
but when each group of specialists in any functional structure is isolated comparatively, the
common bond that emphasizes a single overarching organizational purpose is almost inevitably
weaker than any other organization where different kinds of employees regularly interact and this
leads to weakening of common bonds. It than leads to lack of coordination as well as
communication becomes increasingly important and crucial in organizations, such groups may
underperform or even fail because they have no institutionally recognized way of communicating
needs and issues to other functional groups that might have helped at some important juncture in
important times. There might be times when managers of other functional groups may not respond
helpfully or on time because it not their problem. By the time the need for cooperation has been
established, the moment when this kind of cooperation would have been most helpful may already
have passed and become a huge disadvantage. And added to this another disadvantage is closely
related to the failure of functional groups to cooperate with one another is the possibility of
territorial disputed. These kinds of disputes arise with disagreements over goals, budgetary
cooperation or any number of issues that might stem from a clash of egos that occur when each
department has its own separate functional structure or where a strong sense of a common purpose
might be lacking. All this leads to usually low morale among employees and that ultimately leads
to productivity level and leading to a fall behind the target. This can negatively affect the morale
of the employees and further lowers efficiency, ultimately setting back innovation

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In accordance with future business plans, Design and justify the most effective Organizational
Structure.

Contacting senior leaders from the organization, the following are a few of the future business
plans of the organization that it wants to implement. The business goals have been categorized into
the different aspects mentioned below:

Retention of Talent - It will place a greater emphasis on providing staff with ongoing challenges
and chances to collaborate with other high-performing people on engaging projects. These
initiatives will increase their employee marketability and resume, which will help them attract and
keep top people.
People - The organization has introduced a plan for diversity and inclusion and has the intention for
women to occupy at least 33.33% of leadership roles by 2025. Also, the development of guidance
is ongoing for member firms which will help them ensure that their processes meet human rights
commitments.
Building on Tech capabilities - There is a focus on implementing cutting-edge technologies and
innovative business practices in the upcoming year. It will continue to come up with different
solutions.

In alignment with the company’s future plans to extend its business and also add new services to
the company portfolio as the digital transformation is growing and a lot more companies will
require more e-commerce solutions and also take up more projects in the solutions they provide, we
would suggest the company have a matrix structure to divide its projects into sections of solutions
they provide which will help them to develop more expertise in the projects and also different
functional departments are utilized to have a better flow of internal communications. A matrix
structure also helps the company with other goals for employees to enhance efficiency, and
productivity, and also work closely with the solutions provided to enhance their performance.
Through the matrix system, the manager level gets more involved in the decision making which
will help with higher performance and more engaging
This hybrid organizational structure example aims to combine a functional organizational structure

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with a matrix-based one. In this case, the company is project-based as well, but the team adheres to
a functional organization.
- Resource planning is made easier since it permits the exchange of resources between functional
units and projects.
-Better team cooperation and cross-functional communication are fostered, which results in a more
dynamic company.
-Greater utilization of material and human resources aids businesses in achieving their objectives
more quickly. For employees who want to diversify their experience and skill sets, this framework
works brilliantly. It places them in a setting that encourages learning and provides them with a
chance to further their careers.
The following are the benefits of a matrix structure that also align with the company’s future
growth plan :
• Decentralization of power
• Increase in Specialisation
• Productive exchange of information
A representative or team from each conventional functional area that might be relevant to the
project and its team is allocated to each team leader. This member of the team reports to both the
project manager and the Program manager responsible for their area of expertise.
Making sure that personnel and operations adhere to the organization's standards and rules is the
responsibility of the Program manager. Making ensuring the team completes the project according
to plan is the responsibility of the team leader. A balanced Organizational structure should be
followed where the project manager has more authority but the program manager still acts as the
authoritative management. The company has a centralized decision-making power which will get
distributed through the matrix structure and this will provide faster decisions for the company and
provide a better flow of ideas. A decentralized structure helps the company with quick decisions
and develops managers with independent decision-making. Working in a decentralized structure
will also help the employees at the lower level to be more involved in the decision-making along
with the top management.

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References.

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https://iksula.com/about-iksula/
https://studiousguy.com/organizational-design-structure/
https://tallyfy.com/organizational-structure-examples/
https://www.toppr.com/guides/business-management-and-entrepreneurship/organizing/formal-organization-functional-
organization/
https://smallbusiness.chron.com/describe-three-major-types-organizational-structure-10765.html