UNIVERSITY OF CENTRAL PUNJAB

SPRING 2024
Course Title: Fundamentals of Management Course Code:
BAMG1823

Assignment 3
Course Instructor: Ms. Madiha Bint e Riaz

Section: BA2 Program: BSBA Date: 9th June, 2024

Submission Date: 20th June, 2024 Maximum Marks: 10

Program Objective: Course Learning Objective: CLO4,
Course Objective: CO1
PO1, PO1 CLO6
TO BE FILLED IN BY THE STUDENT
Group Members:
Rana Muhammad Nabeel
Faraz Ahmad
Shahwaiz Niazi Registration No: Sr. No:
Abdullah Zaman
Rayyan

Instructions:

1. Use this page as the cover page for your assignment.

2. Assignment should be submitted in word (soft-form) on CMS and also in Hard form,
keeping the following points in consideration:
Font style: Times New Roman
Font Size: Main heading (14), Sub heading and paragraph (12)
Paragraphs: Justified
Line spacing: 1.5
Font color: black
3. Length of the text would be 12-15 pages excluding table of contents, list of tables in the text,
list of figures drawn in the text and appendices if any.
4. Pages with table of contents, list of tables in the text, list of figures drawn in the text should
be numbered in Romans e.g. I, ii, etc. whereas all subsequent pages should be numbered in
normal digits e.g. 1, 2, etc.
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5. No color prints.
6. Nothing bookish; just confine to actual situation of your company.
7. Plagiarism will lead to zero marks.

Assignment Topic & Details:

Select a local company of your choice. Prepare an organizational chart detailing the
hierarchy of the company. Critically analyze the following elements of organizational
design:
Structural components
 Work specialization
 Job design departmentalization
 Chain of command
 Span of control
 Formalization
 Centralization
 Structural Elements

Identify the company as mechanistic or organic based on the characteristics discussed in

class.

Topic: GOURMET
Introduction:
FOODS
Gourmet bakers and sweets is the top food retail chain of Lahore. Lahore is the second largest
city of Pakistan fabled for its customer aliment and amorousness for eating. Gourmet is the
number one brand in the market of bakers and sweets due to its quality and valuable services.
Before 1984, Mr. Nawaz Chattha was the employee of the Shezan bakers at the post of manager.
While he was doing his job, he decided to start his own business separately because he was
proficient dealer, a technical supporter and maintained check and balance in every branch. Mr.
Nawaz Chattha started his business from one out let in Muslim Town with bakers in 1987. After

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seeing the profitable result he decided to introduce new product like sweets, milk, and ice-cream
and gourmet cola.
In continuous success of gourmet in providing quality service and products for the health and
happiness of all family, Gourmet also started a family restaurant. Since the emergence of
Gourmet bakers, it has shown explosive annual growth of more than 25% in its business. It has
1700 employees working in its all departments. It has around 120 branches and will enhance its
coverage to two hundred branches making it The Largest Bakers and Confectionaries of the city
as well as the country.
Organizational Chart of Gourmet Foods:

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 DIRECTOR

GM PRODUCTION

GM MARKET

ASSISTANT GENERAL MANAGER

AREA MANAGER

COMPLAINT MANAGER/AUDITOR

BRANCH PURCHASE
SUPERVISOR MANAGER

ASSISTANT BRANCH
SUPERVISOR
PURCHASER

STORE SUPERVISOR

GATE
SALESMAN
KEEPER

Work Specialization at Gourmet Foods Pakistan

Introduction to Work Specialization:

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Work specialization, also known as division of labor, refers to the process of dividing work into specific
tasks and assigning these tasks to employees who become skilled at performing them. At Gourmet Foods
Pakistan, work specialization is a fundamental aspect of their operational strategy. This concept ensures
that each employee focuses on a specific set of tasks, leading to greater efficiency and expertise within
the organization.

Production Department:
The Production Department at Gourmet Foods is highly specialized. This department is responsible for
the creation and preparation of food products. Here’s how work specialization is implemented:

1. Production Line Workers:

Employees on the production line are responsible for specific tasks, such as mixing ingredients, baking,
or packaging. Each worker becomes highly skilled in their particular task, increasing production speed
and quality.

2. Quality Control Specialists:

These employees focus solely on inspecting the products to ensure they meet Gourmet Foods' quality
standards.Their specialized knowledge in quality assurance helps maintain the high standards of the
company's products.

3. Maintenance Technicians:

Responsible for the upkeep and repair of production machinery.Their specialized skills ensure that
machinery runs smoothly, reducing downtime and increasing efficiency.

Retail Operations Department:

In the Retail Operations Department, work specialization is evident in the roles assigned to store
employees. Each role has a distinct set of responsibilities:

1. Store Managers:

Oversee the overall operations of the store, including staff management, inventory control, and customer
service. Their leadership and organizational skills ensure that the store runs efficiently.

2. Cashiers:

Handle transactions, manage cash registers, and assist customers with purchases. Specialized training in
customer service and cash handling ensures smooth and accurate transactions.

3. Stock Clerks:

Responsible for stocking shelves, managing inventory, and ensuring that products are displayed
attractively. Their focus on inventory management helps maintain stock levels and product availability.

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Finance Department:
The Finance Department is another area where work specialization is crucial. Employees in this
department focus on different financial aspects of the company:

1. Financial Analysts:

Analyze financial data, prepare reports, and provide insights for decision-making. Their expertise in
financial analysis helps the company make informed strategic decisions.

2. Accountants:

Manage bookkeeping, prepare financial statements, and ensure compliance with financial regulations.
Their attention to detail and understanding of accounting principles ensure accurate financial records.

3. Payroll Specialists:

Handle employee compensation, benefits administration, and related financial transactions. Their focus
on payroll ensures that employees are paid accurately and on time.

Marketing Department:
In the Marketing Department, work specialization helps in effectively promoting Gourmet Foods'
products and brand. The roles are divided as follows:

1. Marketing Managers:

Develop marketing strategies, plan campaigns, and oversee marketing activities. Their strategic thinking
and planning skills drive the company’s marketing efforts.

2. Content Creators:

Produce marketing materials, such as advertisements, social media posts, and promotional content. Their
creativity and communication skills help engage customers and promote the brand.

3. Market Researchers:

Conduct market analysis, gather customer insights, and track market trends. Their specialized knowledge
in market research helps the company understand customer needs and preferences.

Human Resources (HR) Department:

The HR Department at Gourmet Foods ensures that the company attracts, retains, and develops the best
talent. Specialization within this department includes:

1. Recruitment Specialists:

Focus on attracting and hiring new employees. Their expertise in recruitment strategies ensures that the
company hires qualified and capable staff.

2. Training and Development Coordinators:

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Design and implement employee training programs. Their focus on training helps improve employee
skills and performance.

3. Employee Relations Officers:

Manage employee relations, handle conflicts, and ensure a positive work environment. Their skills in
conflict resolution and communication contribute to a harmonious workplace.

Benefits of Work Specialization at Gourmet Foods:

1. Increased Efficiency:

Employees become highly skilled at their specific tasks, which speeds up production and improves
accuracy.

2. Higher Quality:

Specialization ensures that tasks are performed by employees who are experts in their areas, leading to
better quality products and services.

3. Employee Development:

Focused training and development in specific roles help employees master their jobs and progress in their
careers.

4. Cost Savings:

Efficiency and expertise reduce errors and waste, leading to cost savings for the company.

Challenges of Work Specialization:

1. Monotony:

Performing the same tasks repeatedly can lead to boredom and reduced job satisfaction among
employees.

2. Limited Flexibility:

Employees with highly specialized roles may find it difficult to adapt to different tasks or roles within the
company.

3. Dependency on Specific Employees:

The company may become overly reliant on certain employees with specialized skills, making it
vulnerable if those employees leave.

Centralized Decision-Making in Gourmet:

The multilevel business operated by Gourmet Foods Pakistan, a prominent national retailer,
includes additional channels, restaurants, GICOH, and a 12% investment in Silk Bank. A
balanced approach to centralization and decentralization is necessary due to the company's wide
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operations. Goods sourcing and procurement are centrally managed, with consolidated functions
guaranteeing uniform quality throughout about 200 retail locations. To ensure consistent
execution throughout all units, including restaurants and GICOH, strategic choices, including
product selection and reordering, are consolidated following company goals.
Additionally, the company’s autocratic management style centralizes decision-making among
managers, with limited employee consultation. This top-down approach ensures swift and
cohesive implementation of strategic decisions, which is critical in maintaining high
formalization through standardized procedures and uniform policies, enhancing brand
consistency and operational efficiency. Despite this centralized control, the work environment
remains dynamic and friendly, fostering a supportive atmosphere for employees while ensuring
consistent quality and customer experience.

Formalization within Gourmet Hierarchical Structures:

Major national store Gourmet Foods Pakistan runs a multilevel organization that includes
restaurants, GICOH, and a 12% ownership in Silk Bank. The company's 200 retail locations all
follow consistent regulations and standard operating procedures, which stress strong
formalization. When staff members wear uniforms, Gourmet Foods stands out from the
competition by improving professionalism and brand consistency. This structured method
guarantees uniform client interactions and operational effectiveness, which is essential for
overseeing a sizable staff of more than 10,000 workers.
Gourmet Foods uses marketing that takes advantage of this formalization to improve brand
recognition. Consistent application and standardized store designs uphold brand identification
and guarantee a consistent consumer experience overall sites. Industry statistics demonstrating a
33% revenue boost from brand consistency attest to the fact that consistency builds client loyalty
and confidence (Lucidpress, 2021). Ad campaigns place a premium on consistency and quality,
appealing to a wide range of consumers who favour well-known brands while making new
purchases (Nielsen study). Gourmet Foods' approach demonstrates its dedication to upholding a
robust and consistent brand identity within Pakistan's fiercely competitive retail sector.
Structural Elements of Gourmet Pakistan:

1. Strategic Structural Influences:

Gourmet Foods Pakistan’s corporate structure is shaped by its demand-driven strategy, high
formalization, and adaptability to sociocultural and economic conditions. In a highly competitive
and price-sensitive market, the company’s decentralized decision-making at store and regional

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levels allows for swift responses to local market demands and economic fluctuations, such as
fuel price volatility and electricity shortages. This flexibility is complemented by a high level of
formalization, with standardized procedures and uniforms ensuring brand consistency and
operational efficiency across approximately 200 retail outlets. The company’s formalized
approach, particularly evident in its largest market, Lahore, enhances customer trust and loyalty
by providing a reliable and professional customer experience
Adapting to the increasing health consciousness among Pakistan’s youth and stringent
regulations like the Food and Drug Act, Gourmet Foods integrates centralized quality control to
maintain high standards and compliance. Technological advancements in IT further bolster the
company’s efficiency, enabling real-time market trend analysis and streamlined supply chain
management. By leveraging digital marketing and e-commerce platforms, Gourmet Foods
effectively reaches a broader audience, catering to the tech-savvy demographic. These strategies
collectively ensure resilience against economic challenges and regulatory requirements,
solidifying Gourmet Foods' market leadership and supporting its continued expansion across
Pakistan.
2. Size Structural Influences:
The substantial size of Gourmet Foods Pakistan, with approximately 200 retail outlets and over
10,000 employees, significantly influences its corporate structure by necessitating high
formalization and efficient management systems. The large scale of operations requires
standardized procedures and uniform policies to ensure consistent quality and customer
experience across all locations. This formalization aids in maintaining operational efficiency and
brand consistency, crucial for a company with such a vast workforce. Additionally, the size
enables economies of scale, reducing costs and enhancing profitability, but also demands
effective communication channels and centralized oversight to align diverse operations with the
company’s strategic goals. Consequently, the structure is a blend of centralized strategic control
and decentralized operational flexibility, allowing for both cohesive management and
responsiveness to local market conditions.
3. Technological Structural Influences:
Technological advancements, including improvements in IT development, AI integration, and
governmental initiatives in nuclear power, significantly influence Gourmet Foods Pakistan’s
corporate structure. The adoption of advanced technology streamlines operations, enhances data
management, and improves customer engagement. Centralized information systems enable real-
time inventory control, market trend analysis, and efficient supply chain management, ensuring

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operational consistency and responsiveness. AI-powered analytics offer insights into consumer
behaviour, aiding in demand forecasting and personalized marketing strategies. Governmental
improvements in technology infrastructure support these initiatives, further enabling digital
transformation across the company. Consequently, Gourmet Foods’ structure incorporates both
centralized tech-driven oversight for strategic coherence and decentralized tech-enabled
flexibility at the operational level to adapt swiftly to market changes.
4. Environmental Structural Influences:
Gourmet Foods Pakistan’s corporate structure is profoundly influenced by both internal and
external environmental factors. Externally, economic challenges like fuel price fluctuations,
electricity shortages, and regulatory pressures such as the Food and Drug Act necessitate a
flexible and adaptive structure. Decentralized decision-making at regional levels allows for swift
responses to these economic and regulatory changes, ensuring compliance and operational
continuity. Internally, the company’s autocratic management style centralizes decision-making
among managers, with limited employee consultation. This top-down approach ensures cohesive
implementation of strategic decisions and aligns with high formalization through standardized
procedures and uniform policies, maintaining consistent quality and brand experience across all
locations. Despite the centralized decision-making, the work environment is dynamic and
friendly, fostering a supportive atmosphere. This balance enables Gourmet Foods to navigate the
complex socio-economic landscape efficiently while maintaining market competitiveness and a
positive workplace culture.

The Mechanistic Structure of Gourmet:

Gourmet Foods Pakistan has a mechanical structure, which is evident from its key features:
1. High Formalization: The company maintains consistent and efficient operations by having
uniform policies and standardized procedures across all its functions. This level of formalization
is typical of mechanistic structures that have clearly defined roles and processes.
2. Centralized Decision-Making: Managers are primarily responsible for making strategic
decisions such as product sourcing, purchasing, and setting operational guidelines. Lower-level
employees have minimal or no involvement in these choices. This top-down approach helps
ensure the effective execution of company strategies.
3. Specialization: Gourmet Foods most likely operates with a high degree of specialization,
where individuals are assigned specific tasks and responsibilities based on their expertise. With
around 10,000 employees and 200 retail stores, this specialization contributes to improved
productivity and efficiency.

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Why Gourmet Foods Pakistan is not organic:

1. Limited Decentralization: While there is some decentralization at the store level for
operational decisions, the overall decision-making authority remains centralized among
managers. Organic structures typically emphasize decentralization and empowerment of
employees at various levels, which fosters flexibility and innovation.
2. Formal Communication: The presence of formalized procedures and centralized decision-
making indicates a structured communication hierarchy. Organic structures, in contrast, often
emphasize informal communication

Span of Control in Gourmet Foods Pakistan

Understanding Span of Control
One of the most important aspects of organizational structure is the span of control, which
affects productivity overall, communication efficacy, and managerial efficiency. It falls into two
general categories:
1. Narrow Span of Control: This indicates that a manager is in charge of a limited group
of workers. It makes more direct communication and tight oversight possible. This is
frequently observed in positions that call for close supervision and rigorous
management, including quality control or technical positions where accuracy and
standard-abiding behavior are crucial
2. Broad Span of Control: A manager in this situation is in charge of a bigger workforce.
This method is more prevalent in settings where work is routine and standardized and
doesn't require constant supervision. It can result in cost savings in managerial staffing
and encourage employee autonomy.
Factors Influencing Span of Control at Gourmet Foods
Several factors determine the appropriate span of control at Gourmet Foods:
1. Task Characteristics: The breadth of control is greatly impacted by the tasks'
complexity and variety. For example, a larger breadth of control is possible in Gourmet's
bakery manufacturing lines because the processes are standardized and repetitive. In
contrast, a smaller span of control is required in their quality assurance departments to
guarantee that product standards are followed because these areas demand rigorous
attention to detail.

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 2. Experience and Skill in Management: Managers with greater experience and skill
have the ability to exercise more authority. They can effectively lead larger teams by
utilizing their experience to ensure seamless operations management. Conversely,
managers with less experience may be more productive with a smaller scope since they
can concentrate on fewer direct reports and offer more detailed guidance.S
3. Employee Competence: An employee's degree of expertise and freedom are also very
important. There is more room for control because highly qualified and experienced
workers need less supervision. Conversely, newer or less seasoned workers may
require more hands-on guidance and assistance, which calls for a more constrained
level of authority.
4. Organizational Culture: The organizational culture of Gourmet Foods affects the
company's sphere of influence. In order to uphold stringent oversight and protocol
compliance, a hierarchical and structured culture can prefer a limited scope of
responsibility. A culture that encourages creativity and autonomy, on the other hand, can
allow for a greater degree of control, enabling staff members to assume greater
accountability for their work.
Span of Control in Different Departments of Gourmet Foods
1. Production Department: Activities in the production facilities are frequently
standardized and
systematic, especially in the baking and beverage industries. More control is supported in this
setting. Because processes are well defined and workers operate equipment or adhere to
established protocols, supervisors are better able to oversee larger teams. Meeting market
needs and sustaining large production quantities depend on this efficiency.
2. Quality Assurance: Because careful monitoring is necessary, the quality assurance
division
needs a limited scope of authority. Managers and inspectors of quality control must make sure
that goods fulfill strict requirements for quality, which calls for exact measurements and in-depth
inspections. Increased oversight contributes to the preservation of Gourmet Foods' exceptional
standards.
3. Retail Stores: Depending on the size of the location and the volume of customers,
Gourmet
Foods' retail stores may have varying spans of control. In order to maintain efficient inventory
management and customer service, larger stores with higher client volumes can need a tighter

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range of control. Smaller businesses may run more effectively and with greater control because
they have fewer staff members and clients.
4. Company and Administrative Functions: Marketing, finance, and human resources
divisions
may have different levels of authority at the company headquarters. A smaller sphere of
influence can help HR and marketing departments concentrate on intricate and innovative work
since they deal with personnel management and strategic planning. When it comes to managing
everyday financial operations, finance departments may have more authority.
Challenges and Strategies for Optimizing Span of Control
1. Balancing Efficiency and Supervision: One of the main challenges is balancing the
need for effective supervision with the desire for operational efficiency. Gourmet Foods
needs to ensure that supervisors are not overwhelmed by too many direct reports, which
could lead to decreased productivity and oversight quality.

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