Saturday, September 25, 2010

When structure hinders your speed

Winning Strategies for

Rajat Kanti Baisya
Rs 375; Pp 288

Organisational structure has a direct relationship with its cost and effectiveness, writes Rajat Kanti Baisya in ‘Winning Strategies for Business’ ( It becomes imperative for large companies to design, at optimum cost, an effective organisation in line with the realities of the present business environment, he urges, because one of the significant cost elements in any organisation is its manpower cost, which varies from 10 to 15 per cent of net sales in a typical manufacturing enterprise.

Slow response
As for organisational effectiveness, the author reminds that response time cannot be quick when the number of layers is high. He rues that when an organisation has more people than required, it tends to increase the layers and grades in order to keep the people motivated and interested in the company’s business.

Full review here Hindu

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