Evaluation of CelCorp's Organizational Structure and Recommendations

This assignment provides an analysis of CelCorp's current functional organizational structure, highlighting its limitations in managing a growing business operating in multiple countries and manufacturing diverse products like mobile phones, satellite communication systems, and internet routers. The report recommends a shift to a divisional organizational structure, which segregates the business into self-functioning groups based on product lines. This proposed structure aims to improve the manufacturing process, facilitate cost and revenue identification for each product, and enhance the overall management of the company by enabling better decision-making at the top-level management.

Running head: ORGANIZATIONAL STRUCTURE
Organizational Structure
Name of the Student:
Name of the University:
Author’s Note:

1
ORGANIZATIONAL STRUCTURE
Executive Summary
The main purpose of this assignment is to analyze the present organizational structure of
CelCorp Company and also suggest a new organizational structure which can be suitable for the
business. The assignment deals with the organizational structure of an organization and how it is
effective in the smooth running of the overall business.

2
ORGANIZATIONAL STRUCTURE
Table of Contents
Introduction......................................................................................................................................3
Organizational Structure of CelCorp...............................................................................................3
Recommendations............................................................................................................................3
Reference.........................................................................................................................................5

3
ORGANIZATIONAL STRUCTURE
Introduction
Organizational structure refers to the structure in which the duties are performed,
operations of the business supervised and controlled and overall management of the company. In
other words, important activities of the business such as task management, coordination and
controlling and supervisions which are carried out in order to achieve the organizational goals
(Fan, Wong and Zhang 2013). In the assignment CelCorp is engaged in operations in 6 countries
and manufactures mobile phones, satellite communication system and internet routers. There are
four types of organizational structure which are functional structure, divisional structure, matrix
structure and projected organizational structure.
Organizational Structure of CelCorp
The company is currently using functional organizational structure where the activities of
the business are grouped by specialization of activities such as marketing, operations, finance
and other activities. The basic limitation which functional organizational structure faces is that
when the business is expanding, the management faces difficulties in controlling the activities of
the business under this structure. The top-level management faces decision making problems as
the organization grows and expands to new markets.
Recommendations
The top management of the company should implement divisional organizational
structure as such a structure focuses on segregating the large business into self-functioning
groups and this is generally done on the basis of a particular aspect of the company such as
product or services (Tran and Tian 2013). This structure is suitable for the company as the
company manufactures three main products which are mobile phones, satellite communication
system and Internet Routers. This will segregate the business on the basis of the products and

4
ORGANIZATIONAL STRUCTURE
further better the manufacturing process of the products. In addition to this, the management can
easily identify the costs and revenues which are associated with the products. Thus with the
adoption of divisional organizational structure the overall management of the company can
improve tremendously.

5
ORGANIZATIONAL STRUCTURE
Reference
Fan, J.P., Wong, T.J. and Zhang, T., 2013. Institutions and organizational structure: The case of
state-owned corporate pyramids. The Journal of Law, Economics, and Organization, 29(6),
pp.1217-1252.
Tran, Q. and Tian, Y., 2013. Organizational structure: Influencing factors and impact on a
firm. American Journal of Industrial and Business Management, 3(2), p.229.