Theories Related with Incepta

Company Structure

The organization structure is basically the form of an organization that is evident in the way divisions, departments, functions, and human resources link together and interact with each other and reveal vertical operational responsibilities, and horizontal linkages. Organizations are structured in a variety of ways, dependant on their objectives and culture.

The structure of an organization will determine the manner in which it operates and it’s performance. Structure allows the responsibilities for different functions and processes to be clearly allocated to different departments and employees. An organization may have any of the two organization structure, either Tall or Flat. The tall structure refer to narrow span of control and the other one refer to wide span of control and decentralized decision making.

Tall/Hierarchical Structure:

There is a “long chain of command” running from the top of the organization eg. Chief Executive down to the bottom of the organization eg shop floor worker.

Features of Tall Structure:

 Narrow Span of control

 Top-down decision making and centralized

 In-house training

 Wages are given to employees

 Single skills needed and highly specialized

 Quantity is important than quality

Flat Structure:

In contrast to a tall organisation, a flat organisation will have relatively few layers or just one layer of management. This means that the “Chain of Command” from top to bottom is short and the “span of control is wide”. Due to the small number of management layers, flat organisations are often small organisations.

Features of Flat Structure:

 Wide Span of control

 Both way decision making and decentralized

 Both in-house and external training

 Compensations are given to employees

 Knowledge, skills, ability and adaptability

 Quantity is important than quality

 Flexibility is very important

Incepta Pharma:

 On the other hand, after talking with the management, it has been found that they prefer to have to way communication with their employees. That means, in term of decision making both the top-down and bottom-up feedback is appreciated. Sometimes, situation arises when the executives can suggest something new to the top management and then the management arranges meeting with all the department managers and also with the board members if needed, where they discuss all the factors and analyze the suggestion came from the employee. If it is possible and beneficiary for the company then they take decision to implement the suggestion. However, suggestion can come from only the corporate employees not from the factory employees.

 This company does not follow cost effective strategy and at the same time their motto is to manufacture quality medicine and supply them into the local market and international market as well. From these aspects, it can be said that the organization is flat structured.

 The salary is structured (a range is given) in Incepta and given on the basis of employees’ standard and his capabilities but in the range. At first he/she is graded based on his skills and efficiency and then decided how much he would be paid monthly. The mid-level employees and workers are provided employee benefit depending on the position and the performance. Most of the benefits are given to the corporate executives to upper level employees only.

 In Incepta although the important decision making are centralized and span of control is big and it take long time, but in some extend and some level of work decision making is easy and take less time as decision is taken by each department head depending on the situation and the employees are empowered in their field. Usually the empowerment starts from mid-level.

 They provide training to the lower and bottom-mid level employees. All the employees are given on the job training whether they are corporate employee