What is our organizational structure that we have chosen?

Product Division structure is the organizational structure that we have chosen. This structure is mainly
used when the products are similar in nature and aimed at similar market. It also has a centralized
support function to support the different product divisions. There is sharing of knowledge between the
centralized function and this in turn helps to create value across product division.

Why have we chosen this?

We cater to three main different products. We decided that we needed to create a centralized support
function that services the needs of our different products. Our different products in broad classification
are oil, gas and polyester. The products are similar and focus on same market. The marketing, finance
and the R&D department will support the operations department and in turn help the product division.
Each product manager is responsible for the production activities. This increases the horizontal
differentiation as each product division has its own hierarchy. The general manager adds a level to the
authority and increases the vertical differentiation.

What roles will different people perform?

• Operators- They are the technicians who control the machine and produce the product.

• Shift In charge- They come in shifts and assign the jobs to the operators.

• Shift Manager- They come in shifts and looks after the requirements of the shifts.

• Shift superintendent- They make the whole schedule of the shifts and assign a job.

• Product manager- Looks up after his specific product and its production.

• General Manager- Plans for future and make arrangement accordingly. Assigns job and target to
the product manager. Coordinates the work between the department and solves any issue
when it arises.
We tried to compare the task analyzability and task variability. Under craftsman, we have the role of
contract workers who are specialized in one single kind of job and are expert in it. They can adapt
techniques and come up with unique solution. They have a low task analyzability and low task variability
and have a narrow range of task.

Under non-routine research, we have the role of R&D. They have a low task analyzability and high task
variability. This is because the tasks are complex and have to come up with different solutions for each
different situation. Since it is research and development there isn’t a well-defined path to the solution to
the problem.

Under routine manufacturing, we have the role of maintenance department. They have a high task
analyzability and low task variability. They generally have a routine job of maintaining the machinery
and when sometimes exceptional issue occurs with the machinery, little searching is required to deal
with it. This will also give us a cost advantage.

Under engineering production, we have the role of plant operators. They have a high task analyzability
and high task variability. They are the people who operate the machine on a continuous basis and the
chances of occurrence of any exception is high. But due to the well defined standard operating
procedures, solution to these exceptions is easy.

Since it is a petrochemical plant, the production has to happen in a particular sequence and it can’t be
stopped. Each and every step has an interdependence on one another. Hence the work goes on 24*7
which is manned by shift managers, shift in charges and operators. The plant functions in 3 shifts that is
morning, evening and night shift. The planning and scheduling of the process is done by the shift in
charges. It has to be carefully coordinated between the departments.