Organization Structure and Man Power Requirement

CONTENT

PRINCIPLES OF ORGANIZATIONS
HIERARCHY
ORGANIZATION HIERARCHY CHART
THREE FACTORS OF ORGANIZATION STRUCTURE
MANPOWER REQUIREMENT

ABSTRACT
An organizational structure has been developed simulating various other big chemical industries in
India. Various principles of organization, hierarchy structure with organization chart have been
discussed.
Various sections within a plant have been described along with total manpower
requirement.
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ORGANIZATIONAL STRUCTURE AND MANPOWER REQUIREMENT

The organization structure of any major organization basically revolves around two key types of staff
members:
Outsourced Staff

In-house Staff

In business, outsourcing is the contracting out of a business process to a third-party. Outsourcing

sometimes involves transferring employees and assets from one firm to another, but not always.
Outsourcing is also used to describe the practice of handing over control of public services to for-
profit corporations. Two organizations may enter into a contractual agreement involving an exchange
of services and payments. Outsourcing is said to help firms to perform well in their core
competencies and mitigate shortage of skill or expertise in the areas where they want to outsource.
In-house structure includes conducting an activity or operation within the company, instead of relying on
outsourcing. A firm may try to keep the entire transaction in-house. For a brokerage, the firm may try to
match a client's order with another customer, creating an in-house transaction. This allows the firm to
benefit from both the buy- and sell-side commissions .

Introduction
Organization is a structured process in which individuals and groups of people interact, that is, act
and react continuously to achieve stated objectives. It is a structure as well as a process or a group of
on-going activities. Interaction and interrelationship of members in an organization to achieve some
purpose represents human aspect of an organization.
Principles of Organization are following-
1. There should be a clear line of authority from top to bottom. Though each individual should be
responsible to one person only, he should have an access to his higher authorities.
2. Responsibility must be allied with the authority.
3. The span of control of an executive must be limited to the number of subordinates whose activities
can be coordinated effectively.
4. Over organization must be avoided.
The organization structure of our unit can be classified into:-
a) Top management organization
b) Operating line management
The top management organization of the company is of the staff type with level
of managements differing with the functions and responsibility of the individual.
It consists of the general management or administrative personnel who in turn
control and manage the divisional or departmental management personnel. In
the top management, the board of directors is to represent, safeguard, and
further the stock holders interests, determine the basic policies and the general
course of business appraise the adequacy of overall results and in general
protect and make most effective use of the company assets.
The organization must have certain principles:-

1. All functions and tasks should be properly allocated to different persons and the points of action
should be clearly made known to them.
2. The points of actions and decisions should be as clear as possible.
3. Grouping of functions reduces the delay in execution of work.
4. The duties, responsibilities and discretionary limits of each person should be
made quite clear.
The number of supervisory level must be as small as possible.
DEPARTMENTS
General Administration
The organization will be headed by a general manager. He will perform a number of duties:
a) Take prompt and important decisions so as to simplify the execution of work.
b) Ensure smooth running of the factory with maximum profit.
c) Plan and implement diversification program.
d) Keep coordination between various departments.
He will have broad, overall responsibility for the business or organization.
Whereas, the manager may be responsible for one functional area, the General
Manager is responsible for all areas. General Managers manage through
subordinate managers. However, a General Manager may have individuals
reporting to him/her who are not managers. He has the power to hire, fire, or
promote employees. The General Manager will be responsible for higher level
planning. A General Manager is often responsible for the overall strategic
planning and direction of the company or organization and leaves the day-to-
day management of the various functions to the managers.
Production Division
This department is headed by production manager. He must be a technical
person and is responsible for overall production and smooth functioning of the
plant. Production is the section responsible for turning inputs into finished
outputs through a series of production processes. The production manager is
responsible for making sure that raw materials are provided and made into
finished goods effectively. He/She must make sure that work is carried out
smoothly and must supervise procedures for making work more efficient and
more enjoyable. In a manufacturing company the production function may be
split into five sub-functions:
Production and Planning Department
The production and planning department will set standards and targets for each
section of the production process. The quantity and quality of products coming
off a production line will be closely monitored in businesses focusing on lean
production, quality will be monitored by all employees at every stage of
production, rather than at the end as is the case for businesses using the quality
control approach.
Purchasing Department
The purchasing department will be responsible for providing the materials,
components and equipment required to keep the production process running
smoothly. A vital aspect of this role is to ensure that the stocks arrive on time
and of the right quality.
Stores Department
The stores department will be responsible for stocking all the necessary tools,
spares, raw materials and equipment required to service the manufacturing
processes. Where sourcing is unreliable, buffer stocks will need to be kept and
the use of computerized stock control system helps keep stocks at a minimal but
necessary level for production to continue unhindered.
Design and Technical Support Department
The design and technical support department will be responsible for researching
new products or modifications to existing ones, estimating costs for producing in
different quantities and by using different methods. It will also be responsible for
the design and testing of new product processes and product types, together
with the development of the prototypes through to the final product. The
technical support department may also be responsible for work study and
suggestions as to how working practices can be improved.
Works Department
The works department will be concerned with the manufacture of products. This
will include the maintenance of production line and other necessary repairs. The
works department may also have responsibility for quality control and
inspection.
Marketing Division
One of the most important functions of marketing division is to design a set of
written goals, objectives and strategies for marketing activities of the
organization. This means establishing rules and business concept of how the
organization will conduct itself on the market, what marketing instruments will
be used, what goals will be set and what strategies should be applied to attain
effective advertising campaigns. This marketing department develops a market
based business strategy that provides unique value to the customers on all
services and products of the organization. This department is headed by a
marketing engineer. He is responsible for the development of new marketing
strategies and also the publicity, advertising, sales and complaints related to the
product.
Finance Division
When it comes to the overall scope and duties of a finance department, there are many functions
to be fulfilled. For the most part, the duties include all things related to budgeting.
From appropriations to control of expenditure and auditing duties, the finance department of any
given company has an array of duties.
A finance department basically has five main functions:
1. Book keeping procedures
Keeping record of the purchases and sales made by a business as well as capital spending.
2. Creating a balance sheet and profit and loss account
Financial statements need to be produced at given intervals for example at the end of each
financial year. Trial balances are extracted from the ledger entries to create a balance sheet
showing the assets and liability of the business.
3. Providing management information
Managers require ongoing financial information to enable them to make a better decision. For ex.
They will want information about how much it costs to produce a particular product or service,
in order to assess how much to produce and whether it might be worthwhile to switch to make
the alternate product.
4. Management of wages
The wages section of the finance department will be responsible for calculating the wages and
salaries of employees and organizing the collection of income tax and national insurance for the
Inland Revenue.
Human Resources
Human Resources of personnels main responsibility is the recruitment,
selection, training and development of the staff. This will involve developing
staff to maximise their potential in a manner that furthers the organizations
objectives. Human Resources often adapts a welfare role which includes looking
after employees whilst they are at work. They may also create policies that
balance organizational needs with those of the employees. They will also
interpret employee welfare legislation and ensure that the organization is
complying with the applicable legislation.

Manpower Requirement
In general the requirement of plant is as follows
The strength of the corresponding departments is as follows:
Designation Requirement salary Qualification
President 1 35 Engineer + MBA
with 15 yrs of
experience
Vice President 1 18 MBA with 10
years of
experience
Manager 1 MBA with yrs of
Adminstration experince
Manager 1 MBA
Personal
Deputy 1 MBA
Manager
Security
Deputy 1 MBA
manager PR

Operating labor is usually the second largest direct expense item on the
manufacturing expense. Almost all plants are operated on a shift-work basis (even
batch plants), with typically 4.8 operators per shift position with five 8-hour shifts a
week. This gives a fourshift rotation with allowance for weekends, vacations, and
holidays and some use of overtime. More shift positions are needed when handling
highly toxic compounds and using more mechanical equipment. Operating labor can
be estimated by multiplying number of operators per shift with 4.8 operators per
shift.
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