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A PROJECT report on

Study of the structure of organization & implication for system design at

Reliance industries, TCS& L&T Infrastructure
Submitted by

Registration Number

K. Subramanyam

(I. B., 1226115120)

Saidweswar Rao

(I. B., 12261151)


(G.L.S.C.M, 12263151)

Ch. Srinivas

(I. B., 12261151)

Rajeev Annepu

(I. B., 1226115132)

Under the esteemed guidance of

Dr. M. Subramanyam
Professor, GSIB

An organizational structure defines how activities such as task allocation, coordination and
supervision are directed toward the achievement of organizational aims. It can also be considered
as the viewing glass or perspective through which individuals see their organization and its
The organizational structure of an organization tells us the character of an organization and the
values it believes in. Therefore, when one does a business with an organization or getting into a
new job in an organization, it is always a great idea to get to know and understand their
organizational structure.
Depending on the organizational values and the nature of the business, organizations tend to
adopt one of the following structures for management purposes. Although the organization
follows a particular structure, there can be departments and teams following some other
organizational structure in exceptional cases.
Sometimes, some organizations may follow a combination of the following organizational
structures as well.
Bureaucratic Structures
Bureaucratic structures maintain strict hierarchies when it comes to people management. There
are three types of bureaucratic structures:
1 - Pre-bureaucratic structures
This type of organizations lacks the standards. Usually this type of structure can be observed in
small scale, start-up companies. Usually the structure is centralized and there is only one key
decision maker.
The communication is done in one-on-one conversations. This type of structures is quite helpful
for small organizations due to the fact that the founder has the full control over all the decisions
and operations.
2 - Bureaucratic structures

These structures have a certain degree of standardization. When the organizations grow complex
and large, bureaucratic structures are required for management. These structures are quite
suitable for tall organizations.
3 - Post-bureaucratic Structures
The organizations that follow post-bureaucratic structures still inherit the strict hierarchies, but
open to more modern ideas and methodologies. They follow techniques such as total quality
management (TQM), culture management, etc.
Functional Structure
The organization is divided into segments based on the functions when managing. This allows
the organization to enhance the efficiencies of these functional groups. As an example, take a
software company.
Software engineers will only staff the entire software development department. This way,
management of this functional group becomes easy and effective.
Functional structures appear to be successful in large organization that produces high volumes of
products at low costs. The low cost can be achieved by such companies due to the efficiencies
within functional groups.
In addition to such advantages, there can be disadvantage from an organizational perspective if
the communication between the functional groups is not effective. In this case, organization may
find it difficult to achieve some organizational objectives at the end.

Divisional Structure
These types of organizations divide the functional areas of the organization to divisions. Each
division is equipped with its own resources in order to function independently. There can be
many bases to define divisions.
Divisions can be defined based on the geographical basis, products/services basis, or any other
As an example, take a company such as General Electrics. It can have microwave division,
turbine division, etc., and these divisions have their own marketing teams, finance teams, etc. In
that sense, each division can be considered as a micro-company with the main organization.

Matrix Structure
When it comes to matrix structure, the organization places the employees based on the function
and the product.
The matrix structure gives the best of the both worlds of functional and divisional structures.
In this type of an organization, the company uses teams to complete tasks. The teams are formed
based on the functions they belong to (ex: software engineers) and product they are involved in
(ex: Project A).

Tata Consultancy Services Limited (TCS) is an Indian multinational information technology (IT)
service, consulting and business solutions company headquartered in Mumbai, Maharashtra. It is
a subsidiary of the Tata Group and operates in 46 countries. TCS is one of the largest Indian
companies by market capitalization ($80 billion). TCS is now placed among the Big 4 most
valuable IT services brands worldwide. In 2015, TCS is ranked 64th overall in the Forbes
World's Most Innovative Companies ranking, making it both the highest-ranked IT services

company and the first Indian company. It is the world's 10th largest IT services provider,
measured by the revenues. As of December 2015, it is ranked 10th on the Fortune India 500 list.
Products and services
TCS and its 67 subsidiaries provide a wide range of information technology-related products and
services including application development, business process outsourcing, capacity planning,
consulting, enterprise software, hardware sizing, payment processing, software management and
technology education services. The firm's established software products are TCS BaNCS and
TCS MasterCraft.
Service lines
TCS' services are currently organised into the following service lines (percentage of total TCS
revenues in the 2012-13 fiscal year generated by each respective service line is shown in
Application development and maintenance (43.80%) value;
Asset leverage solutions (2.70%);
Assurance services (7.70%);
Business process outsourcing (12.50%);
Consulting (2.00%);
Engineering and Industrial services (4.60%);
Enterprise solutions (15.20%); and
IT infrastructure services (11.50%).
TCS is one of the largest private sector employers in India, and the second-largest employer
among listed Indian companies (after Coal India Limited). TCS had a total of over 335,620
employees as of October 2015, of which 31% were women. The number of non-Indian nationals

was 21,282 as at March 31, 2013 (7.7%). The employee costs for the FY 2012-13 were US$4.38
billion, which was approx. 38% of the total revenue of the company for that period. In the fiscal
year 2012-13, TCS recruited a total of 69,728 new staff, of whom 59,276 were based in India and
10,452 were based in the rest of the world. In the same period, the rate of attrition was 10.6%.
The average age of a TCS employee is 28 years. The employee utilisation rate, excluding
trainees, for the FY 2012-13 was 82%. TCS was the fifth-largest United States visa recipient in
2008 (after Infosys, CTS, Wipro and Mahindra Satyam). In 2012, the Tata group companies,
including TCS, were the second largest recipient of H-1B visas. As of June 2014, TCS has over
300,000 employees. It is world's third largest IT employer behind IBM and HP.
Subramaniam Ramadorai, former CEO of TCS, has written an autobiographical book about his
experiences in the company called The TCS Story...and beyond.
Heritage and Values
Established in 1968, Tata Consultancy Services has grown to its current position as the largest IT
services firm in Asia on the basis of its outstanding service record, collaborative partnerships,
innovation and corporate responsibility.
TCS feels proud that their heritage as part of the Tata Group, which founded by Jamsetji Tata in
1868 is one of Indias most respected institutions today.
TCS mission reflects the Tata Group's longstanding commitment to providing excellence:
To help customers achieve their business objectives by providing innovative, best-in-class
consulting, IT solutions and services.
To make it a joy for all stakeholders to work with us.
Values: Leading change, Integrity, Respect for the individual, Excellence, Learning and sharing.
Their ability to deliver high-quality services and solutions is unmatched. They are the worlds
first organization to achieve an enterprise-wide Maturity Level 5 on CMMI using SCAMPISM,
the most rigorous assessment methodology. Additionally, TCS Integrated Quality
Management System (iQMS) integrates process, people and technology maturity through

various established frameworks and practices including IEEE, ISO 9001:2008, CMMI, ISO
27001, ISO 20000, ISO 14001, OHSAS 18001 and Six Sigma.
TCS Sustainability Initiatives The Three Pillars
Sustainable Operations: Being an organization of more than 353,000 employees, their
infrastructure, facilities, and associates have a large impact on the society and environment. They
aim to run our operations in a socially and environmentally sustainable manner. For instance, a
large portion of the infrastructure for our operations in this decade is being built or yet to be
built. They aim to build these as greener infrastructure.
Corporate Social Responsibility: The guiding principle of TCS CSR programs is Impact
through Empowerment. TCS has a diverse range of global CSR initiatives in the areas of
education, health and environment: volunteering, funding and pro bono leveraging of our IT
Solutions for Customers: With a dedicated eco-sustainability team working across industry
verticals, they aim to provide next-generation sustainability services to our customers. They
integrate sustainability into their business strategies and unlock environmental efficiencies in
their entire value chain.
Organizational Structure of TCS:

TCS Follows Flat Organizational Structure

Building a digital learning platform:

The TCS Digital Learning Platform (DLP) is driving the reimagination of talent development at
TCS. Through DLP, our entire workforce can access rich and fresh content anytime, anywhere,
on any device and can learn at their own pace. Today, 90% of learning is delivered through

digital channels. Infusion of domain-specific content, curated journeys, case studies and
engaging methods such as gamification, role play and hackathons has made it easy for
employees to update their skills and learn new ways of working such as Agile & DevOps. TCS
iclass infrastructure is delivering global, real-time immersive learning experience for expertfacilitated sessions. Our approach to align Digital learning to transformative programs of our
customers is gaining strong mindshare amongst our customers as well.
Digital Learning By Numbers
15 iclasses across 9 cities
VLabs on TCS Cloud with 25,000 concurrent user capacity with most Digital
technologies already enabled
o Big Data & Next gen data platforms & processing engines, covering Hadoop and

ecosystem of tools, MongoDB, Spark

Data science, covering popular tools like R, Python
Mobility engineering, covering IoS, Android, Hybrid mobile apps and more
Modern web frameworks covering Angular.js, node.js, ext.js, Grails, UX technologies
Cloud technologies covering AWS, Azure and platforms such as Bluemix, & Pivotal

Cloud Foundry
o Digital commerce solutions covering ATG, Hybris, Sterling OMS, Solr search and more
o Composite Digital technologies including Internet of Things
Digital Hiring Pipeline:
TCS uses social media and gamification tools to hire and engage the best talent from around the
world. Campus Commune, the student engagement platform, is used to nurture potential talent
from engineering and management institutions. More than 8, 00,000 students from 1,000+
Institutions participate actively on it. They use contests such as TESTimony, EngiNx, Game On
and CodeVita, the largest one which drew 1, 97,000 registrations across 18 countries, to spot and
hire top talent. About 10% of the specialized campus recruitment for niche skills happens
through such contests. After joining TCS, employees use the internal social networking platform
Knome to collaborate and share knowledge. Knome helps break down organizational silos,
encourages exchange of ideas amongst different teams and facilitates social learning.

Larsen & Toubro is a major technology, engineering, construction, manufacturing and financial
services conglomerate, with global operations. L&T addresses critical needs in key sectors Hydrocarbon, Infrastructure, Power, Process Industries and Defense - for customers in over 30
countries around the world.
L&T is engaged in core, high impact sectors of the economy and our integrated capabilities span
the entire spectrum of design to deliver. With over 7 decades of a strong, customer focused
approach and a continuous quest for world-class quality, They have unmatched expertise across
Technology, Engineering, Construction, Infrastructure Projects and Manufacturing, and maintain
a leadership in all our major lines of business.
Every aspect of L&T's businesses is characterized by professionalism and high standards of
corporate governance. Sustainability is embedded into our long-term strategy for growth.
The Companys manufacturing footprint extends across eight countries in addition to India. L&T
has several international offices and a supply chain that extends around the globe.
L&T's HR policies and practices are designed to enable employees to realize their full potential.
The underlying objective is to provide individuals the platform to perform at peak potential, a
safe and secure workplace and a stimulating environment to innovate and experience the pride of
a job well-done.
Labor Practices and Human Rights
Compliance with ethical and human rights standards and the applicable local laws and regulatory
requirements such as conventions of the International LaborOrganization (ILO), the Factories
Act 1948, Building & Other Construction Workers (Regulation of Employment & Conditions of
Service) Act 1996, Central Rules 1998 and Industrial Disputes Act 1947, are considered as
minimum essential requirement.
Dedicated IR, HR and EHS managers ensure effective implementation of policies. Regional
complaints committees exist to deal with cases of sexual harassment at the workplace, if any.
Workmen and safety-related issues are reviewed at manufacturing units and project locations in
Safety Management Committee meetings.
Employee Benefits

From Mentor Buddy Systems to well-defined Leadership Development Programs, l&t

continually innovate and institutionalize HR Practices that are on par with the best in the world.
l&t follow a policy of strict adherence to statutory & regulatory norms for payment of wages &
benefits for Workmen. The minimum wages compliance is 100%. Statutory benefits like PF and
medical facilities are also provided for employees well-being.
Occupational Health & Safety
Occupational Health and Safety is an integral part of our business philosophy. It is viewed as
protecting our most valuable assets. They aim to be a leader in OHS performance through
continual measurable improvements.
Our Environmental and Safety Management System Encompasses:

Detailed environment and safety manuals

Workplace safety training programs that equip employees to mitigate risks and minimize

Use of safety protective gear

Daily toolbox talks

First aid & emergency evacuation processes

Preventive practices for specific high-risk activities

Insurance schemes and employee safety policies

Periodic audits and safety reviews

Recognition & reward programs for safety performance

Study of best practices from external agencies such as British Safety Council, National
Safety Council, safety consultants and other government agencies
L&T's businesses also engage with leading safety consultants to strengthen the safety culture.
They continue to initiate safety awareness programs like celebration of National Safety Day at
our locations to reinforce the spirit of safety among L&T employees.
Identifying hazards and shortcomings at every step is crucial at L&T. Our dedicated team of
safety personnel monitor, record and investigate activities on a daily basis. The information thus
collected is analyzed at various levels, remedial steps recommended and implemented. Monthly
sector management committee meetings and site management committee meetings review all
issues pertaining to monitoring.

Leadership Development & Training

Various career growth options are offered to young aspiring professionals for development and
for achieving operational excellence. To cater to changing technology landscapes and new
business paradigms, They continually customize and revise our training and development
modules, adding new, innovative programs year-on-year.
Over and above in-house training programs, They actively expose our employees to domain
experts & raining faculty from across the world. The operating philosophy is to learn from the
best. Powered by our strong information technology backbone.
L&T deploy interactive and participatory methodologies which are in line with the language of
the new world. Our various e-learning tools like virtual classrooms, high-end work stations and
digital library enable focused training with lesser resources, diminish geographical barriers and
facilitate employees to learn - any time, any place, at their own pace.

Talent Acquisition & Retention
The companys HR approach commences by seeking out high caliber talent and continues
through the employment lifecycle with strong emphasis on retention. It helps us build a strong
foundation based on competitive differentiation, propels performance and creates value.
They focus on all facets of our investment in human capital and have institutionalized integrated
initiatives to achieve employee delight. Competitive pay packages matching the best industry
standards accelerate our employees professional growth, periodic training enhances
competencies and healthy & cohesive work environment fosters excellence.
Talent Management

With over 55% of the workforce below the age of 30, L&T is a young engineering conglomerate.
They stimulate and leverage this young intellectual capital by offering a healthy mix of
opportunity, responsibility, growth and purpose. Our integrated talent management framework is
established on a robust model that enhances employee capabilities and nurtures both professional
and behavioral competencies. Our work culture empowers individuals with the freedom to think
beyond the conventional, innovate out of the box and raise performance levels.

Manufacturing Units & Project Site Practices

L&T goes beyond compliance by implementing practices that improve our work environment
and embed health and safety consciousness among all team members.
Safety committees with more than 50% participation of the workers are operational at our
manufacturing locations. Safety Review Committees, which also comprise union office bearers,
oversee safety at manufacturing facilities and project sites.
Workforce is trained in various safety programmes such as:

Importance of EHS

Defensive driving

Legal requirements

Construction hazards and preventive measures

Precautionary measures during radiography

Safety while working at height

Safety during material handling

Confined space entry requirements

L&T Organizational Structure:

L&T follows Functional Organizational Structure:

L&T Reporting Hierarchy

Reliance Industries Limited:

At Reliance, the focus on growth is continuous and relentless.
RILs motto Growth is Life aptly captures the ever-evolving spirit of Reliance. Its activities
span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals,
retail and telecommunications. In each of these areas, RIL are committed to innovation-led,
exponential growth. The vision has pushed us to achieve global leadership in many of our
businesses including our position as the largest polyester yarn and fibre producer in the world.
Reliance Industries Limited is a Fortune 500 company and the largest private sector corporation
in India.
As Reliance sets sights on even more ambitious goals, RIL remain inspired and guided by the
story and philosophy of our founder chairman Dhirubhai Ambani. Hailing from modest means,
he followed his dream to create India's largest company. Reliance as an organisation has adopted
this ethos of converting adversity into opportunity and making the impossible possible by
challenging conventional wisdom.The ultimate aim has always been and will always be to
touch the lives of people in a positive way.
Reliance Industries Limited (RIL) is an Indian conglomerate holding company headquartered in
Mumbai, Maharashtra, India. Reliance owns businesses across India engaged in energy,
petrochemicals, textiles, natural resources, retail and telecommunications. Reliance is the second
most profitable company in India, the second-largest publicly traded company in India by market
capitalization and the second largest company in India as measured by revenue after the
government-controlled Indian Oil Corporation. The company is ranked 215th on the Fortune
Global 500 list of the world's biggest corporations as of 2016. RIL contributes approximately
20% of India's total exports. It is ranked 14th among the Top 250 Global Energy Companies by
RIL contribute to the well-being of people by introducing sustainable measures and providing
assistance to institutions and welfare organizations. Our activities are spread across India and
reach well beyond our business locations, impacting the lives of marginalized communities. Our
initiatives have reached millions over the years and nearly 1, 50,000 people benefit from our
continuing programs every month.

Sustainable Development
The industry has always considered sustainable development the cornerstone of business
strategy. RIL seek to achieve sustainable and profitable growth, creating thriving eco-systems
around all businesses. Their strategy includes fostering close and continuous interaction with the
people and communities around manufacturing divisions, bringing qualitative changes in their
lives and supporting the underprivileged.
Community Infrastructure & Environment
A large number of initiatives are focused on developing community infrastructure and protecting
the environment. Reliance has developed infrastructure for water conservation and constructed
community halls, schools, and health centers in various locations.

Some of Reliance's initiatives to promote environment protection include investing in renewable

energy sources, promoting green plantations and spreading environmental awareness.
Reliance Foundation
Reliance has always made sustainable development the cornerstone of its business strategy to
achieve sustainable and profitable growth, creating in its wake thriving eco-systems around all its
businesses. To provide impetus to various philanthropic initiatives of RIL, Reliance Foundation
(RF) was set up in 2010 as an expression of its vision towards sustainable growth in India.
India is a nation of a billion dreams, a billion aspirations and above all great opportunities. To
turn these dreams into reality, especially for the vulnerable sections of the society, Reliance
Foundation has taken the path of inclusive development to address their basic needs. Reliance
Foundation has cumulatively touched the lives of 4 million people in over 5000 villages and
various urban locations.
Reliance Organizational Structure

Reliance Board

It matrix organizational structure where in the communication happens in a hierarchical manner.

The matrix structure combines aspects of the functional and divisional structures. Organizations
using a matrix structure divide themselves by both function and division. As in the divisional
structure, the divisions can be based around products, markets, or geographic region. Employees
in a matrix structure simultaneously report to a functional manager and a divisional supervisor.
Membership in a functional area is usually relatively static, while employees are often reassigned
to new divisions upon the completion of a specific project or task.
Difference between Functional and Divisional Organizational structures followed by TCS,
L&T and RIL:
When businesses get large enough to need an organized company structure, they traditionally
segregate personnel by work function. This setup lets people with similar jobs communicate
easily and share resources. A divisional structure, meanwhile, puts employees together to serve a
common cause -- a certain product or service, customer type or geographical location. Both
structures are vertical, stacking a middle- and upper-management hierarchy atop a base of
employees, and having characteristics such as a tendency toward rigidity. The two structures also
have important differences.
The marked management hierarchy of vertical structures means an established, powerful
bureaucracy. Bureaucracies stifle adaptability and responsiveness, resulting in rigid, mechanistic
companies with tight controls and clear chains of command. This is most true of the functional
structure. The divisional structure is less rigid. Being organized around a common market focus
increases the structure's responsiveness, with the vertical structure still retaining some of the
strong controls evident in the functional structure.
Organizational Flexibility
Organizing around a common market focus also means each division may be arranged according
to the needs of its particular focus. Once divisions are created, work is often further subdivided
by functions, but that isnt required. A division may, for instance, group personnel into teams to
accomplish work. The functional structure locks in organization, this stability allowing it to build

a strong momentum toward a desired end. This lets companies mass-produce and standardize
services and products.
Management Focus
Middle management has a chance to shine in the divisional structure. That's because each
division operates as if it were an autonomous business; divisions often are known as strategic
business units, or SBUs. Upper management continues to oversee things at the parent company,
leaving middle managers in charge of the divisions. In effect, managers run SBUs as if they were
business owners or CEOs. Divisions thus serve as a training arena for future company
executives. This strategic training is lacking in the functional structure, where upper management
holds the reins.
Efficiency and Cost-Effectiveness
Sharing expertise and resources within departments makes the functional structure highly
efficient and cost-effective. It also allows for job specialization, repetition and assembly line
operations. These features give companies the opportunity to capitalize on economies of scale
that diminish in the divisional structure. That structure must spend to duplicate personnel and
resources for each division -- workspace, support staff and supplies, for instance.
Coordination, Cooperation and Communication
Interdepartmental communication, cooperation and coordination can become problematic in the
functional structure. The segregated workers may not understand the issues and priorities of
other functional areas. The problem isnt as acute within a divisional structures SBUs because,
regardless of function, everyone is devoted to the market or product around which the division is
formed. The divisional structure doesnt avoid problems altogether, though. Communication,
cooperation and coordination between SBUs may develop problems that are exacerbated by
RIL is purely Matrix combination of both divisional and functional where L&T is functional
organizational structure.

TCS has a flat organizational structure which also is called horizontal organizational structure.
The following are the advantage of flat organizational structure, that contrast with other two ie.,
flat and matrix organizational structure Flat organizations are defined by few management layers with a wider span of authority. When
implemented correctly, this structure leads to faster decisions, satisfied customers and happier
employees. Incorrectly used, however, flat organizations can be magnets for job confusion and
decreased customer loyalty. Flat organization is most practical in small businesses and within
smaller departments of large organizations since the few management layers make running a
large company nearly impossible.
Since the chain of command in a flat organization is small or even only one layer,
communication is often faster and more effective. Direct input and control of business operations
means that staff is less likely to disagree and fight in secret; they can debate their points of view
in public. However, workers may end up with more than one boss and their functions can
become confused with those of another worker or department.
Decision Making and Authority
Fewer levels of management means less gerontocracy and more flexibility in decision making.
However, it also means that more underlings are reporting to a single manager, which leads to
confusion about the chain of command. When the staff can make decisions quickly, they keep
customers happy instead of forcing them to wait while they hunt down a manager. When all the
subordinates are reporting to a single (or few) chief executives, it's hard for the execs to be team
leaders and keep their employees organized and productive. Finally, most of the subordinates
suspect that peers are pulling strings behind the scenes and have more of the chief executive's
attention than they do, advises "The New York Times" in "Managing Without Hierarchy."
When flat organization works correctly, it can save on employer costs, decrease employee
turnover and increase profit margin. Since manager compensation is typically more than other
employees, fewer management levels means fewer managers to pay, which saves you money.

The bottom-up structure focuses on highly qualified staff who are generally happier at work and
less likely to quit their job or perform poorly. The longer your employees remain with the
company, the less training you have to pay for and the more competent and productive they
Flat organization is most effective in small organizations or when used for small sections of
larger organizations. For small businesses, giving staff the authority to make quick decisions
leads to better customer interaction and increased flexibility. Those same qualities become
counterproductive in large organizations because the offices are too different and have trouble
meshing. The "Business Plan" explains, There have been instances where customers were given
a discount on an item in one store, but not in the same store in a different location. This does not
promote good customer relations.
Flat organizations rely on highly trained employees who have a voice in decisions. The idea is
that when employees feel that they have power and are responsible for company operations and
progress, they work harder since they have a personal interest in seeing the firm succeed.
However, they sometimes get discouraged trying to be the first with a new idea. By the time
they get to see the top person, they have spent an inordinate amount of time checking with
everyone in their department to make sure they are not duplicating efforts, reports "The New
York Times."