An organizational structure defines how activities such as task allocation,

coordination and supervision are directed toward the achievement of organizational

aims. It can also be considered as the viewing glass or perspective through which
individuals see their organization and its environment.

Types of organisational structure

Organisational structures
Organisations can be structured in different ways:

by function, for example, operations, marketing, finance, fundraising, etc

by region

by product, for example, books, support, consultancy, delivery

in work teams, for example, client/customer groups.

Hierarchical structures
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Many organisations structure themselves in a traditional and recognisable way using a

hierarchy. The dictionary definition of hierarchy is a series of ordered groupings of
people or things within a system. Hierarchy describes reporting levels and the status of
people in the structure.
Diagram of hierarchical structures

Description of the diagram

The hierarchical organisation structure is pyramid-shaped. At the top of the structure is
a single person, who has a small number of people reporting directly to them. Each of
these people has several people reporting into them and the number of people at each
level increases as you move down the structure.
Advantages of hierarchical structures

A hierarchical structure uses clear reporting lines. It is easy to see what each
team is called, how many people there are in each team and how they relate to
other people in the system.

Disadvantages of hierarchical structures

People can feel stuck in a silo and miss opportunities for co-operation, both
for themselves and the organisation.

Flat structures
Taking out levels of hierarchy creates a flatter organisation structure.
Diagram of flat structures

Description of the diagram

There are fewer levels in the flat structure organisation. In this example structure,
there is one person at the top with everyone else reporting into them on an equal level.
Advantages of flat structures

people feel more involved and can take on more responsibility

greater communication

better team spirit

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less bureaucracy and easier decision making

lower costs

Disadvantages of flat structures

Decisions can get stuck as a result of consulting with many people.

People may have 'matrix management', with more than one manager.

Limited to smaller organisations.

The function of each department gets blurred as roles merge.

Informal structures
Many organisations develop informal, sometimes invisible structures. These are based
on the reality of day-to-day interactions at work. They are very important, as they can
pass on communications (or rumours), they can be friendly and supportive (or form
cliques). They can also influence decisions, as there is knowledge and discussion at an
informal level. The influence of these networks is significant.
No structure
It is difficult to imagine any organisation without a structure. Even groups of young
children start to establish a network or informal hierarchy. In the beginnings of a new
organisation there may be no formal structure but often this changes over time.
Example of an organisation with no structure.
Changing structure
If you are considering a structural change, you need to recognise that any formal
change in the way an organisation operates will work only if consistent changes
happen at the informal level of interpersonal relationships and social expectations. See
organisational culture for more information.

INTRODUCTION
Reliance Retail, Ltd. operates retail outlets in India. Its retail outlets offer foods,
groceries, apparel and footwear, lifestyle and home improvement products, electronic
goods, and farm implements and inputs. The companys outlets also provide
vegetables, fruits, and flowers. It focuses on consumer goods, consumer durables,
travel services, energy, entertainment and leisure, and health and well-being products,
as well as on educational products and services. The company was founded in 2006
and is based in Mumbai, India. Reliance Retail, Ltd. operates as a subsidiary of
Reliance Industries, Ltd.

INTRODUCTION TO THE COMPANY :

Reliance Fresh is the convenience store format which forms part of the retail business
of Reliance Industries of India which is headed by Mukesh Ambani. Reliance plans to
invest in excess of Rs 25000 crores in the next 4 years in their retail division. The
company already has in excess of 560 reliance fresh outlets across the country. These
stores sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy
products.
A typical Reliance Fresh store is approximately 3000-4000 square. feet and caters to a
catchment area of 1-2 km

HISTORY :
Post launch, in a dramatic shift in its positioning and mainly due to the circumstances
prevaling in UP, West Bengal and Orissa, it was mentioned recently in news Dailies
that, Reliance Retail is moving out of stocking fruits and vegetables. Reliance Retail
has decided to minimise its exposure in the fruit and vegetable business and position
Reliance Fresh as a pure play super market focusing on categories like food, FMCG,
home, consumer durables, IT and wellness , with food accounting for the bulk of the
business.
The company may not stock fruit and vegetables in some states. Though Reliance
Fresh is not exiting the fruit and vegetable business altogether, it has decided not to
compete with local vendors partly due to political reasons, and partly due to its
6

inability to create a robust supply chain. This is quite different from what the firm had
originally planned.
When the first Reliance Fresh store opened in Hyderabad last October, not only did
the company said the stores main focus would be fresh produce like fruits and
vegetables at a much lower price, but also spoke at length about its farm-to-fork
theory. The idea the company spoke about was to source from farmers and sell directly
to the consumer removing middlemen out of the way.
Reliance Fresh, Reliance Mart, Reliance Digital, Reliance Trendz, Reliance Footprint,
Reliance Wellness, Reliance Jewels, Reliance Timeout and Reliance Super are various
formats that Reliance has rolled out.
In addition, Reliance Retail has entered into an alliance with Apple for setting up a
chain of Apple Specialty Stores branded as iStore, starting with Bangalore.

Growth through Value Creation

With a vision to generate inclusive growth and prosperity for farmers, vendor partners,
small shopkeepers and consumers, Reliance Retail Limited (RRL), a subsidiary of
RIL, was set up to lead Reliance Groups foray into organized retail.

With a 27% share of world GDP, retail is a significant contributor to overall economic
activity across the world. Of this, organized retailing contributes between 20% to 55%
in various developing markets. The Indian retail industry is pegged at $ 300 billion
and growing at over 13% per year. Of this, presently, organized retailing is about 5%.
This is expected to grow to 10% by 2011. RRL has embarked upon an implementation
plan to build state-of-the-art retail infrastructure in India, which includes a multiformat store strategy of opening neighbourhood convenience stores, hypermarkets,
specialty and wholesale stores across India.

RRL launched its first store in November 2006 through its convenience store format
Reliance Fresh. Since then RRL has rapidly grown to operate 590 stores across 13
states at the end of FY 2007-08. RRL launched its first Reliance Digital store in April
2007 and its first and Indias largest hypermarket Reliance Mart in Ahmedabad in
August 2007. This year, RRL has also launched its first few specialty stores for
apparel (Reliance Trends), footwear (Reliance Footprints), jewellery (Reliance
Jewels), books, music and other lifestyle products (Reliance Timeout), auto
accessories and service format (Reliance Autozone) and also an initiative in the health
and wellness business through Reliance Wellness. In each of these store formats,
RRL is offering a unique set of products and services at a value price point that has not
been available so far to the Indian consumer. Overall, RRL is well positioned to
rapidly expand its existing network of 590 stores which operate in 57 cities.

During the year, RRL also focused on building strong relationships in the agribusiness value chain and has commenced marketing fruits, vegetables and staples that
8

the company sources directly to wholesalers and institutional customers. RRL

provides its customers with high quality produce that has better shelf life and more
consistent quality than was available earlier. RRL has made significant progress in
establishing state-of-the-art staples processing centres and expects to make them
operational by May 2008.

Through the year, RRL also expanded its supply chain infrastructure. The Company is
fully geared to meet the requirements of its rapidly growing store network in an
efficient manner.

Recognizing that strategic alliances are going to be a key driver to its retail business,
in FY 2007-08, RRL established key joint ventures with international partners in
apparel, optical and office products businesses. Further, RRL will continue to seek
synergistic opportunities with other international players as well. This year, RRL will
continue its focus on rapid expansion of the existing and other new formats across
India.

Retailing formats in India

Malls:
The largest form of organized retailing today. Located mainly in metro cities,

in proximity to urban outskirts. Ranges from 60,000 sq ft to 7,00,000 sq ft and above.

They lend an ideal shopping experience with an amalgamation of product, service and
entertainment; all under a common roof. Examples include Shoppers Stop, Piramyd,
Pantaloon..
Specialty Stores:

Chains such as the Bangalore based Kids Kemp, the Mumbai books retailer
Crossword, RPG's Music World and the Times Group's music chain Planet M, are
focusing on specific market segments and have established themselves strongly in
their sectors.

Discount Stores:
As the name suggests, discount stores or factory outlets, offer discounts on the
MRP through selling in bulk reaching economies of scale or excess stock left over at
the season. The product category can range from a variety of perishable/Nonperishable goods
Department Stores:
Large stores ranging from 20000-50000 sq. ft, catering to a variety of
consumer needs. Further classified into localized departments such as clothing, toys,
home, groceries, etc.
Hypermarts/Supermarkets:
Large self service outlets, catering to varied shopper needs are termed as
Supermarkets. These are located in or near residential high streets. These stores today
contribute to 30% of all food & grocery organized retail sales. Super Markets can
further be classified in to mini supermarkets typically 1,000 sq ft to 2,000 sq ft and
large supermarkets ranging from of 3,500 sq ft to 5,000 sq ft. having a strong focus on
food & grocery and personal sales.examples Big Bazar, Reliance hypermart.
Convenience Stores:
These are relatively small stores 400-2,000 sq. feet located near residential
areas. They stock a limited range of high-turnover convenience products and are

10

usually open for extended periods during the day, seven days a week. Prices are
slightly higher due to the convenience premium.
MBOs :
Multi Brand outlets, also known as Category Killers, offer several

brands across

a single product
category. These usually do well in busy market places and Metros.

PROFILE OF COMPANY :
Reliance Retail, Ltd. operates retail outlets in India. Its retail outlets offer foods,
groceries, apparel and footwear, lifestyle and home improvement products, electronic
goods, and farm implements and inputs. The companys outlets also provide
vegetables, fruits, and flowers. It focuses on consumer goods, consumer durables,
travel services, energy, entertainment and leisure, and health and well-being products,
as well as on educational products and services. The company was founded in 2006
and is based in Mumbai, India. Reliance Retail, Ltd. operates as a subsidiary of
Reliance Industries, Ltd.

Headquarters : Mumbai Area, India

Industry

: Retail

Type

: Public Company

Status

: Operating Subsidiary

Company Size: 10,001 or more employees

Founded

: 2006

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Organizational structure:
ZONAL
MANAGER

CLUSTER
MANAGER

AREA MANAGER

STORE MANAGER

ASSISTANT STORE
MANAGER

SUPERVISOR

12
COMMERCIAL
CUSTOMER SERVICE
ASSOCIATE
ASSOCIATE

Popular Profiles at Reliance Retail :

Madhumita Mohanty : Deputy General Manager

Abhijit Sanyal : EVP & CE - Reliance Home Products Pvt Ltd
Prashant Narula : General Manager
Devendra Chawla : Vice - President - Business Head , Merchandising Head
Prasun Bhadani : Manager - Store operations and NSO
Sriram Mahadevan : Concept Head - Reliance Marts & Supers
Rakesh Mehta : Commercial Head North
Nageswaran c k : VP, Operations
Kanwar Bhawani Singh : Business Head Reliance Wellness Stores

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PRODUCT MIX AT RELIANCE FRESH :

PRODUCT MIX OF RELIANCE FRESH

FRUITS &VEGETABLES
STAPLE
STAPLE

PF, BEVERAGE, F&V

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NON-FOOD FMCG

Food Retail Chain at Reliance Fresh:

15

COMPETITORS OF RELIANCE FRESH :

16

1. BIG APPLE

2. MORE

3. SABKA BAZAAR

4. FAIR PRICES

5. SUBHIKSHA

6. SPENCERS

Future Plans :

17

The company's flagship chain Reliance Fresh sells staples and food items under
Reliance Select
Nearly 30 months ago, Reliance Industries announced an ambitious plans to invest Rs
25,000 crore (Rs 250 billion) to expand its stores in the country to take the advantage
of organised retail in the country.
Initially, the company was planning to open 2,000 stores by 2008, and 5,000 stores by
2010, but due to a delay in delivery of properties, economic downturn and demand
slump the company had to scale back its expansion plans.
Reliance Retail runs over 850 stores, which include stores for food and grocery,
consumer durables, beauty and wellness, jewellery, footwear, among others.
Its formats such as apparel chain Reliance Trends, beauty and wellness format
Reliance Wellness, consumer durable chain Reliance Digital have private labels or are
in the process of launching private labels.
"The whole idea of private labels is based on pricing and retailers get enough volumes
on their shelf at marginal costing. Retailers have an opportunity to sell their private
labels to kirana stores.
But it depends on their strategy on pricing and marketing right products," said
Naimish Dave, a director with OC & C Strategy Consultants.

Challenges facing the Indian Organized Retail sector :

The challenges facing the Indian organized retail sector are various and these are
stopping the Indian retail industry from reaching its full potential.

I) Changing Consumer Purchasing Patterns:

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The behaviour pattern of the Indian consumer have undergone a major change. This
has happened for the Indian consumer is earning more now, western influences,
women working force is increasing, desire for luxury items and better quality. He now
wants to eat, shop, and get entertained under the same roof. All these have lead the
Indian organized retail sector to give more in order to satisfy the Indian customer.

II) Lack of Retail Space:

With real estate prices escalating due to increase in demand from the Indian organized
retail sector, it is posing a challenge to its growth. With Indian retailers having to shell
out more for retail space it is effecting there overall profitability in retail.

III) Shortage of Trained Man Power:

The Indian retailers have difficultly in finding trained person and also have to pay
more in order to retain them. This again brings down the Indian retailers profit levels.

IV) Poor Supply Chain

It is the supply chain that ensures to the customer in all the various offerings that a
company decide for its customers, be it cost, service, or the quickness in responding to
ever changing tastes of the customer.
The infrastructure in India in terms of road, rail, and air links are not sufficient. This
make a poor supply chain and companies have to depend upon warehousing.
Power and Politics in Organizational
There are few business activities more prone to a credibility gap than the way in which
executives approach organizational life. A sense of disbelief occurs when managers
purport to make decisions in rationalistic terms while most observers and participants
know that personalities and politics play a significant if not an overriding role. Where
does the error lie? In the theory which insists that decisions should be rationalistic and

19

nonpersonal? Or in the practice which treats business organizations as political

structures?
Whatever else organizations may be (problem-solving instruments, sociotechnical
systems, reward systems, and so on), they are political structures. This means that
organizations operate by distributing authority and setting a stage for the exercise of
power. It is no wonder, therefore, that individuals who are highly motivated to secure
and use power find a familiar and hospitable environment in business.
At the same time, executives are reluctant to acknowledge the place of power both in
individual motivation and in organizational relationships. Somehow, power and
politics are dirty words. And in linking these words to the play of personalities in
organizations, some managers withdraw into the safety of organizational logics.
As I shall suggest in this article, frank recognition of the importance of personality
factors and a sensitive use of the strengths and limitations of people in decisions on
power distributions can improve the quality of organizational life.
Political Pyramid
Organizations provide a power base for individuals. From a purely economic
standpoint, organizations exist to create a surplus of income over costs by meeting
needs in the marketplace. But organizations also are political structures which provide
opportunities for people to develop careers and therefore provide platforms for the
expression of individual interests and motives. The development of careers,
particularly at high managerial and professional levels, depends on accumulation of
power as the vehicle for transforming individual interests into activities which
influence other people.
Scarcity & competition
A political pyramid exists when people compete for power in an economy of scarcity.
In other words, people cannot get the power they want just for the asking. Instead,
they have to enter into the decisions on how to distribute authority in a particular
formal organization structure. Scarcity of power arises under two sets of conditions:

20

1. Where individuals gain power in absolute terms at someone elses expense.

2. Where there is a gain comparativelynot literally at someone elses expense
resulting in a relative shift in the distribution of power.
In either case, the psychology of scarcity and comparison takes over. The human being
tends to make comparisons as a basis for his sense of self-esteem. He may compare
himself with other people and decide that his absolute loss or the shift in proportional
shares of authority reflects an attrition in his power base. He may also compare his
position relative to others against a personal standard and feel a sense of loss. This
tendency to compare is deeply ingrained in people, especially since they experience
early in life the effects of comparisons in the family wherein an absolute sense
time and attention, if not love and affection, go to the most dependent member.

PERFORMANCE APPRAISAL TECHNIQUES USED BY RELIANCE

360 DEGREE FEEDBACK EVALUATION
A common approach to assessing performance is to use a numerical or scalar rating
system whereby managers are asked to score an individual against a number of
objectives/attributes. Employees are also allowed the opportunity to assess the
person(manager) at the same time. This is known as 360 appraisal. The biggest risk
with 360 degree feedback is confidentiality. The information is very sensitive and in
the wrong hands, could impact careers.
FACT: Used by 90 percent fortune 500 companies.
Also used by hp and IBM.

Rating Sacles
A widely used appraisal method that rates employees according to defined factors. The
scale includes several categories, normally five to seven in number, defined by
21

adjectives such as outstanding, meets expectations or needs improvement. One reason

for the popularity of the ratings scale method is its simplicity, which permit quick
evaluation of many employees. The factors chosen for evaluation are typically of two
types job related and personal characteristics. The rater(evaluator) completes the form
by indicating the degree of each factor that is most descriptive of the employee and his
or her performance. Evaluators total and then average the points in each part . Then
they multiply this average by a factor representing the weight given each section. The
final score for the employees is the total of each sections points.
CRITICAL INCIDENTS
A performance appraisal technique that requires a written record of highly favourable
and highly unfavourable work behaviour. When such an action a critical incident
affects the department significantly, either positively or negatively, the manager writes
it down. With this method, the appraisal is more likely to cover the entire evaluation
period and not focus on the last few weeks or months.
WORK STANDARDS
A performance appraisal method that compares each employees performance to a
predetermined standard or expected level of output. Several methods are available to
determine work standards, including time study and work sampling. An obvious
advantage of using standards as appraisal criteria is objective, they should understand
clearly how the standards were set. Management must also explain the rationale for
any changes to the standards.

Health and Safety

Health, Safety & Environment

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Reliances endeavour to create a culture of safety, health and environment saw a new
light with the implementation of Change Agents for Safety, Health and workplace
Environment (CASHe). This project has garnered enough strength to make safety and
health a priority in the workplace, and improved occupational safety and health
significantly. Reliances HSE Management System has established company-wide
safety management objectives and processes for improving operational discipline and
evolving inherent safety measures for plant operation. In addition, the Central HSE
audit programme a critical component of the HSE governance process is
designed to ensure that the HSE Management Standards are implemented, and best
practices followed and shared across the Reliance Group.
Reliance is also committed to ensuring environmentally sustainable and responsible
operations to achieve highest standards of excellence. Our manufacturing divisions
have not only instituted internationally accepted Environmental Management System
based on ISO-14001, but the major sites are also integrated with Quality Management
and Occupational Health & Safety Management Systems.
For instance, we have set up Occupational Health Centres for emergency and curative
services and are also focusing on emotional well-being through our "Work-Life
Project". We continuously standardise and upgrade systems to reach our target of zero
injuries and incidents. We also remain deeply committed to the cause of
environmental protection, and have rainwater harvesting programmes and three-tier
environmental audits in place, among other systems.

23

24

25

Corporate Sustainability
Our commitment to sustainable development goes beyond our operating boundaries,
as we continuously aim to add value to our stakeholders by advancing knowledge and
improving lives.
We seek internal and external perspectives to identify and help us better understand
the risks and opportunities associated with new and emerging issues. The issues
identified are evaluated for their relevance to Reliance and their impact on economic,
environmental and social aspects. This exercise is performed annually to ensure its
relevance to the changing business environment, and the disclosure through reports is
aimed at our stakeholders like investors, customers, employees, JV partners, business
partners and the community. We have worked with key stakeholders and focused our
efforts towards our strategic pillars for sustainable development: energy management,
environment, product stewardship, occupational health and safety, and social
institution building.
Our Strategic Pillars, Trends and Stakeholder Needs
Our focus on the five strategic pillars ensures that we grow our business while
responding to global trends and stakeholder needs. The key activities undertaken
against each of the strategic pillars build on the progress we have already made in
order to reduce our environmental impacts, and contribute to society by investing in
meaningful endeavours.

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Conclusion

Reliance is very large company of India

Reliance Founder Is Mr. Dhirubhai Ambani.
Reliance Industries Ltd. Current Chairmen is Mr. Mukesh Ambani.
Reliance have veri good open door policy.
In current time RIL have launch 4G network for the customer with idea of Mr.

Mukesh Ambani.
Reliance fresh very large shopping market in retail business.
They also try for the give best to customer.
In RIL is very carefull for safety and health policy.
RIL have big profit organisation in India.
RIL use open door policy for all like trainee also meet to the director or

manager.
Reliance in all ways is good, just that it needs to provide more and better

services and fast services to the customers

Still in the city the brand name (Reliance life) needs to be emphasized on,

while marketing & selling the product.

Still the market is not 100% fully aware that what Reliance life is. There are so

many potential customers for Insurance industry.

Still Business man and professionals are investing their money in other
components. So company has to make more marketing and try to convert their
investment in insurance policy and make a more customer. So company not
only focuses to their present customer but also focus on other potential
customers.

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from_action=save
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