Informs Limited is an Indian multinational company which provides information technology services, business consulting and software engineering services. The company was started with a mere capital of LOS$ 250 in 1981 and is now worth a staggering ISIS 9. 53 billion. Informs has always been the priceless jewel of the information technology industry in India. Powered by intellect and driven by values is the sworn slogan of Informs Limited. The company’s work ethics has inspired numerous entrepreneurs in the information technology field in the past three decades.
Since my college says every information technology aspirant knew wanted to be hired by Informs in the future. This was the stellar reputation created by this company. Given the chance Of analyzing the organizational structure Of a company I had no second thoughts before picking Informs. The main aim of this paper is to study and analyses the bureaucratic organizational structure of Informs Limited through the concepts of centralization, formalization and complexity.
The chain of command, the organizational channels , task deployment , future goals and the coordination mechanisms deployed by Informs will be analyses via in-depth research in this paper. BUREAUCRATIC ORGANIZATION PURPOSE Informs Limited specializes in providing information technology services to the insurance and finance industries. The company’s main aim is to decrease manual labor in whichever industry they provide their services to by automation of processes, intelligent task creation and auto-referrals.
Informs has the reputation of attracting the best technical talent from the top universities around the country who are trained very well via intensive regimes. The quality of services provided is the epitome of Informs and the recruitment team makes sure that it stays that way my hand picking the best individuals. The main task of Informs Limited is to create sound software applications for their business clients. Their main goal is to help their clients reduce their bottom line. So Informs caters only to companies who feel that having a technological edge is a major factor in improving their market share.
Their clients rely heavily on them to provide systems that support their industry strategies and provide greater operational activity. Informs aims to provide an absolutely professional work environment, exhaustive on and off the field training and make sure that their employees follow a process oriented execution of projects leaving no room for error. ORGANIZATIONAL STRUCTURE OF INFORMS Complexity “Complexity is the division and grouping of work and activities” (Reveler 2015). Informs follows a functional structure in terms of horizontal differentiation.
The company functions by grouping together individuals in the organization who share the same specific skill set. Informs is basically a information technology service providing company and all the departments in the organization work towards providing exceptional technological services to numerous other industries. Under the executive director, who works under he command of the managing director, come three departments that form the backbone of the organizational structure of Informs Limited. These three departments include Sales & Maintenance department, Training & Development department and the Research & Development department.
Under the Sales & Maintenance department there are Marketing Executives, Technicians and Networking officers who all report to the Sales and Maintenance department head. Under the Training & Development department come the Training Executives, who specializes in either Hardware, Software or Networking training, the Senior System Analyst, the Junior System Analyst and the Web Developer or programmer. Under the Research and Development section come the R & D Personnel, CIT Personnel, Statistician, Sociologist, Economist and the Legal Advisor.
This Horizontal Functional Differentiation facilitates specialization which helps Informs get the best out of each department. It is because of this organizational structure along with their consistent work culture that have helped them grow their market share in leaps and bounds over the past three decades. In terms of Vertical Differentiation the organizational structure has a high vertical integration. The narrow span facilitates closer supervision of employees. It also provides the basis for a clear promotion structure which is solely performance based. It also provides clear structure and responsibilities at each level.
As the size of the company and its employees increase the tallness Of the organizational Structure also increase. It sometimes becomes a handful to handle very tall organizational structures but in the case of Informs they have always managed to maintain their professionalism irrespective of the company’s expansion which is solely due to the company’s work culture. Centralization Centralization is the locus of decision making and control”(Reveler 2015). Informs has a centralized organizational structure. The power to make critical decisions lie in the hands of very few top level executives who are the key decision makers of the company.
This helps the company in having a focused vision which shows in their work culture. The board of directors with inputs from the Managing Director act as the main players who control the output of the company which reduces conflict among mid-level employees. Formalization “Formalization is the standardization of tasks through written rules, policies and procedures” (Reveler 2015). Informs maintains a highly formalized organizational structure as they are mainly a software company which requires the same level of output at all levels in order to maintain the quality of their services rendered.
This is one of the reasons why Informs always has an exhaustive training schedule before a professional starts working on client projects. It helps maintain uniformity of products and services. Information and Communications Technology (CIT) companies have to maintain a high degree of formalization to make sure that the employees are adhering to the specifications of the client. COORDINATION MECHANISMS The coordination mechanism at Informs is pretty clear cut as the company is highly centralized. The orders come from the higher level authority and the lower levels have to abide to the required criteria listed.
Also the employees hired by Informs are technically very sound making the coordination process a whole lot easier. The Sales & Marketing department makes sure that the company is regularly getting new customers to add to their existing clientele through marketing strategies. This department also makes sure that the hardware and software functionality from the bottom of the pyramid to the top is smoothly functioning at all times. The Training & Development Department makes sure that every new employee is trained uniformly and are ready to work on projects that really matter in the real world.
Intensive training is provided in the hardware, software and networking departments in order to make sure the individual is all round ready leaving no room for error. The Research & Development department is the heart and soul of Informs Limited. Billions of dollars are pumped into this department so that the company is always at par with its competitors in terms of cutting edge technology. This department is also the most diverse one of the company as t includes the highest and the lowest paid employees of the company.
There are employees in this department who directly report to the Executive Director due to their involvement in economic and legal affairs of the company. For example lets say an insurance company approaches Informs for the development of a task minimization application. The board of directors after consulting the members of the Research and Development department will analyses how much time, money and man power should be pumped into this project keeping in mind the expected returns. The Statistician will give inputs n the expected returns on investment.
The legal advisor will make sure that there are no loop holes in the paperwork between the two companies. The Sociologist will make Sure that there is no harm done to the society, environment and that Corporate Social Responsibility is maintained. The economist will analyses all the data regarding the deal and will provide inputs on the feasibility of the project. Once there is a green signal from all the members of the Research and Development team a budget is drafted and sent through to the insurance company. If the insurance company approves of the budget the project takes if. This is when the Development department comes into the picture.
The Senior system Analyst creates a blue print of the application after trials. The Junior System Analysts, Web Developers and programmers manage the show from here. From first stage trail and errors to the finished product, the Development team makes sure the insurance company gets what had been promised to them by Informs without any compromise on quality. CONCLUSION Informs Limited is Indian’s 3rd largest IT services company and is rated as one of the best office environments to work in India. This incredible growth and insistence over the past 30 years has been possible because of the company’s relentless work culture.
The backbone of any company is its organizational Structure and Informs has a pretty solid one. The highly formalized, centralized and horizontally differentiated organizational structure of Informs stands tall in comparison to other Indian IT companies. The chain of command is fluent and the hierarchy is respected within the company making it an indestructible fortress.