Question

In: Operations Management

What kind of organizational structure and hierarchy does the company L&T have ?

What kind of organizational structure and hierarchy does the company L&T have ?

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Expert Solution

Solution:

L&T is a huge organization that has multiple business units under its belt. The company operates in engineering space and has undertaken a related diversification strategy for most of its business units. The organizational structure that is generally adopted in all of these business units is the functional organization structure. Similar activities are broadly categorized into multiple categories and converting them into different functions and then operating them separately. This is the organizational structure that is adapted by L&T as well. The hierarchy is vertical and strong. There is a high power distance and highly centralized decision making is also observed.

Hence, this is how the organization structure and hierarchy L&T has.

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