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Organizational Structure Essay

In modern times, the one of its greatest competency that sometimes become its competitive advantage is its management efficiency. The term management here encompasses the whole range of activities covering planning, leading, organizing and controlling of not only human resources, but the financial resources as well as information resources. The 21st century organization needs to be efficient in all of these functions to enable it to gain an edge over its competitors.

This paper is intended to analyze the organization function of ABC insurance company, with particular emphasis on organizational structure and its efficiencies and draw backs. Insurance companies largely base their strategies on personal selling. Thus, major part of their workforce comprises of sales persons. In our organization, the head of the organization is the CEO, his is reported by Director Human Resource, Director IT, Director Sales, Director Marketing, Director Finance. Director Human Resource has a manager HR under him.

He is supported by separate assistant managers for recruitment and HR admin, and training and development. Director IT heads the network administrator and a project manager. Likewise, director finance supervises manager treasury and fund management, manager budgeting and manager auditing. Under marketing director, there is one manager marketing responsible for creating

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the awareness about the insurance solutions among masses, creating publicity, making sales promotions etc. Under sales director, there is sales manager. He has three regional managers under him.

Each regional manager has several zonal managers and each zonal manager leads various branch manager, followed by assistant branch managers and team leaders. There is also a product development team which is cross functional in nature, including people from marketing, sales, finance, and sometimes IT. Nothing is perfect in this world, rather making a never ending effort towards attaining perfection. So is the organizational structure here at my organization. It has several merits, besides some areas of improvement. Let’s start from the positive note.

The cross functional team for product development reflects the true potential of the organization, where people from diverse backgrounds sit together and generate new products. Likewise, in HR, the assistant managers handle respective areas like training and organizational development, and recruitment etc. and are quite empowered with relatively flat organizational structure. This ensures smooth and quick flow of information. However, on contrary, the structure for sales is very tall and has many hierarchies, leading to delays in communications and decisions.

Employee empowerment is also quite low for the sales person. Moreover, there is also lack of communication, coordination and collaboration between the sales people and the marketing people. This is so because of the fact that both sales and marketing have separate hierarchies, even at the director level. Instead, there should have a ‘sales and marketing director’ having sales and marketing manager under him and the marketing director being responsible to ensure coordination, collaboration and communication between sales and marketing strategies.

Another issue with the structure of sales is that, many positions like brand manager and assistant brand manager are made are attaining certain performance level and not the need in the organization. Thus, within one physical branch, there may be three or four assistant branch managers. To sum up, it order to achieve efficiency, having an organizational structure that ensures smooth flow of information and sufficient employee empowerment is essential to achieve operational excellence. REFERENCES Jackson, J. , & Mathis, R. (2007). Human Resource Management. Mason, OH: South-Western College Pub.

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