Cugl Organisation Structure

Organisation structure-

The structure of an organisation is a hierarchy of its people and functions
Organisations have structures, unique to them depending on their objectives. Organisation structure is the foundation on which standard operating procedures rest and determines the extent of participation of individuals in the decision making process.

Figure 1 below shows the structure of CUGL-

CUGL is a small organisation with just 45 employees. As can be seen from the figure above the organisation employs a Functional structure, typical of small firms in starting phases. Every department has 2-3 managers working under their respective directors who are in turn under the governance of the Board of Directors.

An interesting phenomena is observed in the appointment of Directors on the Board-

• The post of Chairman of the Board is reserved for a GAIL(Gas Authority of India Limited)  employee. Currently it is held by the Executive Director-Corporate Internal Audit of GAIL
• BPCL(Bharat Petroleum Corporation Limited)  is represented on the board by two of its directors-one of whom is on deputation from BPCL  since 2014 .
• IGL (Indraprastha Gas Limited),the sole supplier of CNG, bought  a fifty percent stake in CUGL in 2013 and is currently represented on board by three directors.
• 2  of the directors are independent.

The above distribution of the board of directors serves well to emphasise the amalgamation of  the cultures of the three firms-GAIL,BPCL and IGL into CUGL.

Mechanistic Vs Organic

Mechanistic structures tend to be more standardized and less flexible than organic structures. The structure of CUGL is quite mechanistic when considered in terms of the division of  responsibilities amongst specializations.However,since the number of employees is very less, the interdepartmental interaction is high leading to a very informal atmosphere.