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Parco Pakistan's Centralized Decision-Making Structure

The organization discussed has a divisional structure owned by 335 executives. Decision making is centralized with the Board of Directors and Executives determining prices. Centralized decision making helps the organization manage its 21-day fuel stock requirements to avoid fines, though a pandemic reduced demand by 51%. To achieve goals, the organization implemented risk management, compliance, internal reporting, and related party transaction systems through centralized leadership.

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Subhan Ahmad
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0% found this document useful (0 votes)
8 views1 page

Parco Pakistan's Centralized Decision-Making Structure

The organization discussed has a divisional structure owned by 335 executives. Decision making is centralized with the Board of Directors and Executives determining prices. Centralized decision making helps the organization manage its 21-day fuel stock requirements to avoid fines, though a pandemic reduced demand by 51%. To achieve goals, the organization implemented risk management, compliance, internal reporting, and related party transaction systems through centralized leadership.

Uploaded by

Subhan Ahmad
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

What type of structure and corresponding decision making prevails in the organization

and how does it help the organization in achieving its goal and objectives?

Answer: Our organization is Parco Pakistan and it is owned by total 335 executive. Their

organizational structure is Divisional as seen in this chart.

The decision making in Parco is centralized and usually it is performed by Board of Directors

and Executives because it is a system of corporate governance and the prices of things are

predetermined by the government itself.

Well in the case of Parco the decision making is centralized it does not have to with demand.

In case of Parco they have to manage the stock of 21 days and have to complete that cycle

otherwise they could be fined by OGRA demand if we talk about the current pandemic it

dropped to 51 % after the severe lockdown and we have observed shortage because they didn’t

maintain the that level of stock and so the decision making can help them in private projects so

these projects require a lot of investments so the decision making in Parco has always been

centralized and to achieve the goals they have made the following systems which includes

 Risk Management system

 Compliance System

 Internal reporting system

 Related Party transactions

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