MBM 411

Organizational Structure and

Teamwork: Capco

Presentated By:
Ritika Swaroop Madhulika Sharma
Aman Agarwal Rahul Bhatia
Chetana Shivali Chauhan
Kritika Malhotra Shweta Bharati
 Introduction to Organisation
• Capco is a leading global business and technology management
consultancy firm with a focus in financial services and a
dedicated energy division.
• Capco was founded in 1998 as The Capital Markets Company
N.V. and currently employs 5000+ professionals globally.
• Capco's global headquarters are in London, UK, and the
company has 27 offices in leading financial centers across the
Americas, Europe, and Asia Pacific.
• In 2010, Capco was acquired by FIS (Fidelity National
Information Services).
• in 2017, Capco was acquired by CD&R(Clayton, Dubilier & Rice),
a Private Equity firm.
 What is an Organisational
Structure?
• An organizational structure is a system that outlines how certain
activities are directed in order to achieve the goals of an
organization. These activities can include rules, roles,
and responsibilities.
• The organizational structure also determines how information
flows between levels within the company. For example, in a
centralized structure, decisions flow from the top down, while in a
decentralized structure, decision-making power is distributed
among various levels of the organization.
• Having an organizational structure in place allows companies to
remain efficient and focused.
Organisational Structure
 Types of Organisational
Structure
Hierarchical / Tall Structure
Horizontal / Flat Structure
Matrix Structure
 Hierarchical / Tall Structure
• It is the oldest and simplest form
• Also known as military,
departmental and line
• Authority flows from top to
bottom vertically in a straight
line manner
• Responsibilities and
accountability flows in an
opposite, but equally direct
vertical manner
• This may be of 2 types:
o Pure line
o Departmental Line
 Hierarchical / Tall Structure
Advantages
• Employees recognize defined levels of
leadership within the organization;
authority and levels of responsibility are
obvious.
• Opportunities for promotion motivate
employees to perform well.
• Hierarchical structures promote
developing employees as specialists.
Employees may narrow their field of focus
and become experts in specific functions.
• Employees become loyal to their
departments and look out for the best
interest of their area.
Disadvantages
• Communication across different
departments tends to be less effective than
in flat organizations.
• Rivalry between departments may inflame
as each department makes decisions that
benefit its own interests rather than the
organization's as a whole.
• Increased bureaucracy often hinders an
organization's speed to change. Increased
time may be required to respond to clients.
• Salaries for multiple layers of management
increase an organization's costs.
 Horizontal / Flat Structure
• Also known as horizontal organization
• Few or no levels of intervening management between staff and
managers
• Well-trained workers are more productive when directly involved in the
decision making process (promotes decentrelised decision making)
• Not closely supervised by many layers of management.
• Possible only in smaller organizations or individual units within larger
organizations
 Horizontal / Flat Structure

Advantage Disadvantages
• It elevates the employees' level of • Employees often lack a specific boss to
responsibility in the organization. report to, which creates confusion and
possible power struggles among
• It removes excess layers of management.
management and improves the • Flat organizations tend to produce a lot of
coordination and speed of generalists but no specialists. The specific
communication between employees. job function of employees may not be
• Fewer levels of management clear.
encourage an easier decision-making • Flat structure may limit long-term growth of
process among employees. an organization; management may decide
against new opportunities in an effort to
• Eliminating the salaries of middle maintain the structure.
management reduces an
• Larger organizations struggle to adapt the
organization's budget costs. flat structure, unless the company divides
into smaller, more manageable units.
 Matrix Structure
• Hybrid organisation structure
• Combination of project and
functional organisational
structure
• Permanent structure designed
to accomplish a specific project
• Team of specialists drawn from
functional departments within
the organisation
• There are functional managers
and project managers
• Team members are
accountable to both managers
 Matrix Structure

• The matrix structure is different in

striking ways:
1. Employees are generally accountable to more than one boss

2. There are usually two separate chains of command

3. The matrix structure is designed to be partially impermanent
4. There are two kinds of managers: functional managers and project
managers
5. Managerial roles are fluid, not fixed
6. The balance of power between functional and project managers isn't
organizationally defined
 Matrix Structure
Advantages Disadvantages
• Clear articulation of project • Two-boss problems, leaving
objectives project members caught in the
• Workable way of integrating project middle 
objectives with functional objectives • Project members playing bosses
• Efficient use of limited human against one another
resources • Increases organizational
• Rapid (often interdisciplinary) complexity
information flow through the project • Requirement for high degree of
• Retention of expert teams through cooperation between functional
the life of the project and project management
 Matrix Structure
Advantages Disadvantages
• Rapid dispersion of team members • Potential for conflicting
back into the functional organization management directives
upon project completion without • Difficulty of establishing priorities
organizational disruption suiting both functional and project
• Project management trains managers management
to become leaders in the functional • Possible slowdowns in
organization management reaction to events
when two structures required for
• Project structures develop team spirit
solution 
and high morale
• Possible structural collapse in
• Possibility of conflicts arising during "crunch time"
the project carrying over to functional • Increase in management overhead
management costs