Organizational structure with Telenor Structure

Presented By

Muhammad Zeeshan BalochSabir HussainHafiz Muhammad MajidRashid LatifUsama Nawaz

Introduction about Telenor

Telenor acquired the license for providing

GSM services in Pakistan in April 2004.

Telenor is the 2nd largest network of

Pakistan after Mobil ink.

It had a reported subscriber base of 26.7

million, and a market share of 24% .

Vision & ValuesWe're here to help.

How Telenor contributes In Pakistan Economy

DefinitionHow job tasks are divided, grouped and coordinated.

Why organization needs structureOrganisational structure describes:

Who is responsible for whatPatterns of communication and knowledge exchangeSkills required to move up the organisationFrom whom they can take help for their problemsStructure tells how to address with company’s issues and problems.It tells what behaviours should be and are accepted.It defines norms and roles.

Whether structure is designed for first time or it is redesigned for this we engage with organization structural design.

Work SpecializationThe degree to which tasks in an organization are subdivided into separate jobs.Division of Labor

Makes efficient use of employee skillsIncreases employee skills through repetitionLess between-job downtime increases productivitySpecialized training is more efficientAllows use of specialized equipment

Can create greater economies and efficiencies – but not always…

Specialization can reach a point of diminishing returnsThen job enlargement, job enrichment and job rotation gives greater efficiencies than does specialization

Functional Grouping jobs by

functions performedProduct

Grouping jobs by product line

Customer Grouping jobs by type

of customer and needs

Geographical Grouping jobs on the

basis of territory or geography

DepartmentalizationThe basis by which jobs are grouped together.

Basis by:

By GeographicaL and FunctionaL:::

Pros And Cons

By Functional By Geographical

• Advantages

•More effective and efficient handling of specific regional issues that arise

•Serve needs of unique geographic markets better

• Disadvantages

•Duplication of functions

• Advantages

• Increase efficiency

• Co ordination within functional area

• In depth specialization

• Disadvantages

• Poor communication across functional areas

• Limited view of organizational goals

By product

+Allows specialization in particular products and services+Managers can become experts in their industry+Closer to customers– Duplication of functions(loss of economies of scale

stemming from the duplication of various departments within operating units.)

-- Cost will be high– Limited view of organizational goals

By Customers

+ Customers’ needs and problems can be met by specialist

- Duplication of functions

COM is the line of authority extending from upper organizational levels to lower levels, which clarifies who reports to whom.

Chain of Command

Span of ControlThe number of employees a manager can

efficiently and effectively manage.

Factors influencing span of control

Advantages and DisadvantagesWider Span of Control Narrow Span of Control

There are less layers of management to pass a message through, so the message reaches more employees faster

It costs less money to run a wider span of control because a business does not need to employ as many managers

A narrow span of control allows a manager to communicate quickly with the employees under them and control them more easily

Feedback of ideas from the workers will be more effective

Less management skill required

Centralization & DecentralizationDecision making is done at top levelEmployees are not capable to take decisions

+: Uniformity in action+: Personal leadership-: No loyalty-: Remote Control-: Delay in work

Decision making flow is downwardEmployees are capable

+:concentrate on strategy on higher level decision making, and coordinating activities

+: vital experience in making decisions

Formalization

+:It makes employee behavior more predictable

+: reduces ambiguity and provides direction to employees

+: reduced innovativeness-: reduced motivation and job satisfaction

How standardized an organization’s jobs are and the extent to which employee behavior is guided by rules and procedures.

Mechanistic

Organic

High work Specialization

High departmentalization

Narrow span of control

High level of centralization

High level of complexity

High level of formalization

Low work Specialization

High

departmentalization

Wide span of control

Low level of

centralization

Low level of complexity

Low level of

formalization

Why structure differs

Strategy

TechnologyIt refers to how an organization transfers its inputs into outputs.

Classification of Technology

1.Long linked technology2.Mediating technology3.Intensive technology

Work Specialization 

Both specialist people and multi skill people

require at Telenor Pakistan.

If specialist person have some extra skills he

will preferable given job at Telenor Pakistan.

Like the IT department requires specialized

person but Customer Relation department

doesn’t necessary require a specialized person.

DepartmentalizationTelenor structure is functional.Telenor Pakistan has several departments.

Commercial DivisionCustomer Service DivisionFinancial DivisionCorporate affairsFinancial service

Chain of CommandClear line of authority7 layers

Span of control

It varies department to department.

HRM and Finance has narrow spans of

control.

Marketing and customer relationship

department has wider span of control

Centralization & Decentralization

Centralization is there but you can say to

some extent there is decentralization.

Employees gives ideas but last action require

the agreement of top management.

Standardization

Rules and procedures are present to control

the behavior of employees and to facilitate

smooth working of the organization

Mechanistic or Organic

Mechanistic

Structure & StrategyTelenor wants to make an image in the mind of customers.Telenor has differentiating strategy.Structure support strategy somehow:

ConclusionStructure of Telenor Pakistan is Mechanistic and

functional.Decision-making is highly centralized and

empowerment is not appreciated as much but to some extent.

The important success factor for Telenor is differentiation.

Because the environment is becoming tougher with each Passing day so to enhance their competitiveness & profitability it is providing excellent service, giving top priority to meeting customer requirements and charge low operating cost from their customer

RecommendationTelenor must have organic structure.Motivating employees through giving them empowerment.