Telecom Planning and Management

Telecom Management Crash Course

(Chapter 2)
Book by P. J. Louis

Presented
by

Dr. Sibaram Khara

 Organization structure
Organizational structure is not just a picture of boxes; rather it is a
patern of interfactions and coordination that links tasks, technology, and the
Human components of an organization together to ensure that the
Organization accomplishes its purpose.

Characteristics:
Speciization and division of labour
According to Max Weber,
Bureaucracy contains,”a specified sphere of competence. This in volves;
a. A sphere of obligations to perform functions that have been marked of as part of a systematic division of labor.
b. the provision of the incumbent with the necessary authority, and
c. that the necessary means of compulsion are clearly defined and their use is subject to definite conditions.

Positions are arranged in a hierarchy

Responsibility and accountability

System rules
Flow of communication and the function

Impersonal relationship
 Classic organizational structure

Board of Directors

President and CEO COO

CTO VP-Mktg VP-Sales CFO VP- VP-

Network Customer
Operation care
Decision-control process and organizational structure

Issues of decision-control process:

-The management-cimpleyee relationship

- management policies
- human resouces policies
- the benefits plan
- organizational structure
- public relations
 Centralized decision making

-Marketing
- Sales
Headquarter - Operations
- Network
- Accounting

Region Region Region Region

Centralized companies-headquarters controls all key elements of the business

 De-centralized decision making

Headquarter

Region Region Region Region

-Marketing -Marketing -Marketing -Marketing

- Sales - Sales - Sales - Sales
- Operations - Operations - Operations - Operations
- Network - Network - Network - Network
- Accounting - Accounting - Accounting - Accounting

De-centralized companies maintains autonomous regional operations

Advantages of Centralized decision control

- A single set of order is issued

- There is a single set of standards: operational, financial, human resource,
and management
-Rapid decision making is possible
- management is focussed
Single set of instruction

Advantage of single set instruction can be understood by understanding

The disadvantage of multiple sets of instructions.

- Unfavorable public perceptions

- strained company resources
- poor execution leading to failure to meet goals and objectives
- confusion among exployees

- Confusion reduced
- proper management of resources
- public perceptions can be better managed
- company resources will not be strained
- likelihood of poor execution is reduced

-A single authority or source of direction

is important to the overall health of a
company
- telecommunications carriers are
organized like army
Single set of standards: operational, financial, human resource, and
management
The areas operational

- Overall quality of the product and the performance of the employees

- enabling and facilitating communication between departments

- Consistency in product quality

- consistency in interdepartmental communication

- consistency in intradepartmental communications

- inventory management

-Product management-translating customers’ needs into technical requirements toward which the factory can build

- product development – building the product to the customers’ requirements

- marketing – idenfifying the correct market segments, defining the product, and creating the message

-Sales – creating a consistent message to the customer means making sure you are selling what you are making

A set of performance criteria needs to be maintained for every department area

Single set of standards: operational, financial, human resource, and
management
Areas of financial standards
-Purchase of supplies

-Travel and entertainment (T &E) expenses for employees,especially the sales force

- Purchasing and T&E approval authorities – only a handful of managers are entitled to approve certain
purchases and T&E expense reports

- approval levels – employees should be able to trust managers to approave expenditures at specific
dillar values

- overall cost controls for the the expenditure of money – This does not mean that the finance
department decides what can or cannot be purchased; rather it means that criteria are put in place tl assist
managers in deciding how much to buy

- approved vendor lists- The approved endor list is a short list of vendors from whom the company
purchases services and equipment (parts). Every company has its own criteria for determining which
vendors are placed on the list. Most companies forbid employees to purchange even office supplies from
any company not in the approved list
Single set of standards: operational, financial, human resource, and
management
Issues of human resource HR department

- Health benefits
- life insurance
- disability insurance
- vacation
- sick leave
- payroll taxes
- reference checks
- employee aptitude testing
- Training administratrion
- storage of employee personal files
- code of conduct
- managing interview
- salary administration
- legal aspect
- employee safety
Single set of standards: operational, financial, human resource, and
management

Rapid decision making is possible

● Rapid decision making is a result of a centrally managed organization

● Fewer people involved in the decision

Responsibility to a central authority

● Consensus is not a required element

Focused management
Staff group
-Staff group oversees special projects
- reviews technology
- Establishes organizational standard
- Solves problems that impact the entire organization
- Oversees multi-departmental activities

Personnel management

- In-fighting is minimized
- Crisis management is not nurtured
- Slackers are not tolerated
- Leadership is converted
- Management skills are nurtured
Disadvantages of Centralized decision control
- Can stifle creativity
- can easily lead to “kingdom creation”
- can lead to poor communications because of the chain of command
- can lead to slow decision making because of fear reprisal from upper management

Stifling Creativity
- Stifling creativity can occur when a centrally managed company does not balance its goals
with the needs of the employees
-Employee suggestions are ignored
- managers dictate
- employees feel as if they are considered unimportant to the company
- employees feel as if management wants to only dictate
- employees no longer serve as an avenue of promoting the company

kingdom creation
-Founders want help but want total control
- Power struggle between the founders and the professional executives hired
- founders need professional management help

poor communications

- Chains of command abused leave employees disgruntled and angry

-Corporate chains of command need to maintain a balance between control and compassion for the employee
- listen to employees
- consider suggestions
- acknowledge employee contributions
- managers should Consider suggestions but must remember they must ultimately make the decision
 Advantage and disadvantage of decentralized decision-making

Advantage:
-Rapid decision making
- facilitates the creative process
- highly dynamic and reactive to changes in the market environment

Disadvantage
-Can lead to anarchy among management and the rank and file
- Can impact a company’s overall image
- Can lead to bad decisions because the various business units are making decision without sufficient information