Presentation Case 2

8/6/2019 Presentation Case 2

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Restructuring of Descon Engineering Private Limited


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Presented By:Taimur AliJahanzeb Haider

Ahmed Ali

Hafiz Mujahid

Abdul waheed Zafar

Ahsun RaufAbdul Mateen yahya

Fahad Ejaz Keen

Rizwan shoukat

Asma Mukhtar


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Mission

Be the first integrated

engineering company


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Companys Background

Descon engineering private limited was set up by

Razzaq S Dawood in 1977. Initial fields:

y mechanical manufacture

y electrical installation

y instrument installation

Also engaged in plant management service 1982

In 1985 DEW was established.


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Organizational skeleton

DESCON

Descon Engineering Services

Designing of mechanical equipments,

piping, pressure vessels and Steel

structure.DPSIndustrial

Projects E&I services

Electrical and

instrumentation

DEW

Industrial

Equipment

Descon

Construction

Services

Mechanical andCivil Construction

Water &Effluent

Treatment

Service

(WETS)


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Market served:y Domestic market

y Overseas market

Major industries:y Power

y Cement

y Hydrocarbon

Other industries:y Textile

y Edible oil


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Human Resource pool

formed with the initial team offive people that

A mechanical engineer

An electrical engineer Two chemical engineers

A finance manager


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In 1978 it wanted to expand the human resourcewhen company won contracts.

Manpower status in 1990:

y permanent manpower had reached 350.y Total manpower was about 3756.

Engineering personnel came from mechanical,chemical, electrical and civil fields.

Other workers include scientists, industrialengineers, metallurgical engineers and numberof females engineers.


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HR concerns and policies

High importance as to the nature of business

High training costs involved

policy of objectivity and standards Job security (avoidance to formal dismissal)

Workers are employed on contractual bases.


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Organizational Structure

Descon started its business with a minimum

structure in 1977.

In 1981 a project manager was appointed to

look after the area of operations.

Descon encourage unity in work and prevent

obstructing interaction among different levels.


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Organizational Chart in 1980

Managing Director

Finance ManagerProject Manager

(Mechanical)

Project Manager

(Electrical andInstrumentation

installation)

Project Manager

(Engineering)

Finance

Procurement

Administration

Personnel


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The change beginning


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Structural evolution phase 1

Separate marketing department was

established in 1982.

Design fabrication and technical functions

were added in 1983.

Post of technical director was created.

Overall coordination of activities was

responsibility of an executive committee.

growth= it gets big= control and communication issues


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In 1986

Change:

Functional units & Department

Marketing dept. (under

Tech. director)

Triggers of change:

Workload

Size

increase in Number of contractsLine of command

Functional unit General Manager

Departments Managers


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New challenges in 1986

Highly diverse operations

y Geographic expansion

y Overseas investments

y Domestic growth

New divisions:

y Descon mechanical products

y Descon electro systemy Water and effluent treatment service


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Change phase: 1987

Change initiatives:

y Decentralization administration

y Centralized policy

New issues = new change triggers:

y Lack of coordination

y Procurement redundancies

y Untimely decisions

y Extra burden and strain on responsible position holders

RIGHT HAND DIDNT KNOW WHAT THE LEFT HAND WAS DOING


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Actions taken

New Solutions for coordination problem:

y Regular meetings among managers

Ineffective coordination efforts resorted

to:

y New change effort in structure,

Target audiences = Unit Heads

Level of change = Functional Nature of change = Incremental


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Change phase 3 in 1988

Reconsideration of Decentralization

Plan

New division of the organization

y Engineering

y Manufacturing

Change objective:

y Improve the coordination

y Control between divisions


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Concluding the change efforts!


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Stages of change on the whole

Embryonic phase

Inception andincorporation

Informal controlsystems

Cumbersomedocumentation

Formative phase

Expansion

New layers in

structure Coordination issues

Formal systems

Accountability

concerns Different change

phases


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Change phase: new round of

restructuring, 1990

Change triggers:

y Retirement of tech. director

y Coordination and Accountability concerns

y Cultural concerns

Changes:

y GM of Business Development (S. Tahir Jan)

y Promotion ofAnsari as DMDy And their cooperation willingness

y Adding new Post regarding control.


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New functional changes by the

new management

Profit and cost centers

Professional culture inside

New control system Eradication of personal loyalty &

informal systems


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Proposals!


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Core issues to be addressed

(diagnosis)

Following are the core issues prominent:

y Coordination among major positions and units

y Communication issues

y Accountability standards and procedures

y Cultural concerns

external environment:

y Potential in existing and new business sectors

y Huge sum of money on stake

y Diversified product portfolio


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Diagnosis cont

Internal assessment:

y Major changes chained to major triggers

y Narrow unit performance goals

y Manipulated control systems

y Informal culture + a divide of employees


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plan

Presentation Case 2

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