Organizational Structure & Culture in

Lanka Bell and Etisalat

M.F.M.M.Fazlan

Colombo, Sri Lanka

1.1The 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 Organization’s 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

1.2Impacts 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 that’s 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.

1.3How 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 problem-

solving

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.