Organizational Structure & Culture in Lanka Bell and Etisalat

M.F.M.M.Fazlan Colombo, Sri Lanka

1.1 The organizations structure and culture Lanka Bell and Etisalat
Etisalat and Lanka bell both are running in the telecommunication industry so most of the factors in the culture and structure are same. They both are using functional organizational structure 1.1.1 Organization structure of Lanka Bell Services (PVT) (LTD)

1.1.2 Organization structure of Etisalat Lanka (PVT) (LTD

1.1.3 Organizations culture at Lanka bell and Etisalat

There are many definitions for organizational culture but a popular and simple way of defining culture is how things are done around here A more detailed definition is : The collection of traditions, values, policies, beliefs, and attitudes that constitute a pervasive context for everything we do and think in an organization(Atkinson) There are four g types of culture such as: Power culture, Role culture, Task culture and person culture. As both companies are in the telecommunication industry and also both companies are larger companies in Sri Lanka they are following the Role culture. What is Role Culture? Role culture stereotyped as a bureaucracy and works by logic and rationality. Role culture rests on the strength of strong organizational pillars the functions of specialists in, for e.g.; finance, purchasing and production. The work of, and interaction between the pillars is controlled by procedures and rules and coordinated by the pediment of senior managers. Role or job description is more important than the individual and position is the main source of power. (Laurie J. Mullins 8th edition) So role culture is Common in most organizations today. In a role culture, organizations are split into various functions and each individual within the function is assigned a particular role. The role culture has the benefit of specialization. Employees focus on their particular role as assigned to them by their job description and this should increase productivity for the company. This culture is quite logical to organize in a large organization.

Different dimensions of organizations culture in Etisalat and Lanka Bell

Profit Orientation In Etisalat and Lanka Bell profit orientation is law because their main target is to give a best service to their customers, they are concerning highly on customer satisfaction and delight People Orientation People orientation is high in Etisalat because they are paying high salary to their staffs and they are also paying special incentives according to their performance, their working environment is very pleasant, they are organizing get to gather parties and motivational programs for their employees but in Lanka Bell People orientation is Law. Team Orientation Team Orientation is high in Etisalat because its employees prefer to work in groups rather in individuals to achieve their sales targets. So team orientation will lead the company to increase their sales. But in Lanka Bell team orientation is Low where their employees are prefer to work as individuals Innovation Innovation is high in Etisalat they are coming with new products quickly, they starts with prepaid connection, after that came with postpaid, launched 3G, broadband and they are going to launch Etisalat TV. But in Lanka Bell it is very low they are rely only in CDMA connection

1.2 Impacts and relationships of two companies through their structure and culture

Relationships Both companies have technical departments in their structure. Two companies are customer oriented. There are sales teams in both companies Leadership styles are almost same. The both companies have the same Human resource structure

Performance for two companies through their structure and culture Etisalat have good performance because of their culture and structure, where Lanka Bell have less performance because thats small company comparing with Etisalat. Here are some main reasons for their performance They have two main departments such as: sales department and marketing department. There are different marketing managers for prepaid and post paid where they are introducing new products/services to their customers day by day. And sales department is taking quick action to increase the sales by dealers / direct sales executives. Etisalat is focusing highly on innovation where Lanka Bell rely only CDMA connection. Good customer service in Etisalat. Etisalat have outsourced their direct sales department where they will bring lots of sales through commission basis and they have outsourced their IT department as well, so company could reduce some costs through outsourcing. Etisalat is giving high motivation, salary and other benefits for their employees so it will lead the company. These are the main factors for the performances of Etisalat where Lanka Bell should consider these factors for future growth.

1.3 How organizational theories underpins the practice of management

There are many management theories and organizational theories in every business industry but many people are not following that when it comes to practice. Reason is that they have to sacrifice personal principles to succeed.

One example would be when a marketing manager who sets the sales target and planed to increase the sales by a different plan. In addition human resource manager have to plan the schedule of employees in the company. Another reason for this is there are huge competitions in the market in every industry as a whole, there are lots of software to measure the performance of employees and also due to the development of marketing activities companies are giving high commitments and pressure to their employees. When comes to theory there are lots of employee motivational theory for employees but when it comes to practice its different because of above mentioned reasons.

1.4 The different approaches used by the management of both companies

There many approaches used by the both companies those are : Human relations approach Systems approach Contingency approach

Human Relations approach The main emphasis of the classical writers was on structure and the formal organization, but during the 1920,s the years of the great depression, greater attention began to be paid to the social factors at work and to the behavior of employees within an organization that is, to human relations. Human relations approach Emphasized importance of human attitudes, values and relationships for the efficient and effective functioning of work organizations. Systems approach The classical approach emphasized the technical requirement of the organizations and its needs-organizations without people the human relations approaches emphasized the psychological and social aspects, and the consideration of human- needs- people without organizations Attention is focus on the total work organization and the inter relationships of structure and behavior. In the systems approach Organization is an open system complex social and technical that require human and financial resources, and physical Productivity is seen as a function of the interaction between people and building, and the environment Contributions of Systems Approach To Management: Importance is given to the interdependence of the different parts of an organization and its environment with the help of systems approach, where the managers have a good view of the organization and its environment in systems approach Systems approach will foretastes plans actions and consequences This approach warns managers against adopting piecemeal approach to the problemsolving Contingency Approach The contingency approach to organization developed as a reaction to the idea that there are universal principles for designing organizations, motivating staff etc. newer research suggested that different forms of organizational structure could be equally successful.

(Class Notes) The contingency approach, which can be seen as an extension of the systems approach, highlights possible means of differentiating among alternative forms of the organization structures and systems of management. (Laurie J. Mullins 8th edition) To increase the performance of the company there structure should match with its environment The best form of an organization is contingent on the situation faced by that organization including patients, third-party payers, regulators, and personnel.