Organizational Design and Change | Assignment

ORGANIZATIONAL DESIGN AND CHANGE
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Organizational design and change
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ORGANIZATIONAL DESIGN AND CHANGE
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Introduction
The paper looks at Saudi Aramco organizational structure. Saudi Aramco is among the greatest
company in Saudi by revenue and is located in Dhahran, Saudi. The article critically analyses its
organizational structure having established a strong structure which facilitates and prepares it to
future growth.
The organizational structure adopted by Saudi Aramco
Saudi Aramco Company uses a Line Organization structure. At the top position of this
organization, we have the company's board of directors with the CEO as the head of the board
(Pick et al 2015 p.89). Below the CEO, we have six senior vice presidents heading different
departments. Other management positions follow down the organogram.
Advantages of the organization structure
The organizational structure allows for a quick decision-making process.
Responsibilities are Fixed and well defined hence increased responsibility and accountability.
Disadvantages of the organization structure
The structure causes an overload of duties and responsibility at each level of management.
There is a lack of specialization, as one executive may supervise different types of jobs.
Organizational structure decision-making process.
The line organization structure of Saudi Aramco Company enhances a proper decision-making
process. The appropriate flow of information and reporting lines up the organogram facilitate
recommendations of every employee to reach the board of directors who make vital decisions