1.1Background of the Study
At present, Nepal Telecom has two main issues which are in implementation phase, they are issuing of share to employees and restructuring of organization. Both these motions have got importance from the time of corporation to the company. The corporation got converted into company as per privatization policy. This policy has come in light to foster the communication sector. It has brought the competition breaking the prevailing monopoly of Nepal Telecom. Specifically, in this context the matter of restructuring the organization is too relevant and meaningful from the employee's point of view, organizational and shareholder's point of view. But the restructuring should be in such direction that would enhance the productivity, profitability along with motivation to employees. To increase the productivity, the one most important thing is to mobilize the human resources, to drive or induce them as per organization's willingness in order to get the job accomplished effectively and efficiently. As it is long-term strategy and this perspective most be in the way of getting favorable employee behavior; not in the way of imposing upon them. In Nepal, operating any form of telecommunication service dates back to 94 years in B.S. 1970. But formally telecom service was provided mainly after the establishment of MOHAN AKASHWANI in B.S. 2005.Later as per the plan formulated in First National Five year plan (2012-2017); Telecommunication Department was established in B.S.2016. To modernize the telecommunications services and to expand the services, during third five-year plan (2023-2028), Telecommunication Department was converted into Telecommunications Development Board in B.S.2026. After the enactment of Communications Corporation Act 2028, it was formally established as fully owned Government Corporation called Nepal Telecommunications Corporation in B.S. 2032 for the purpose of providing telecommunications services to Nepalese People. After serving the nation for 29 years with great pride and a sense of accomplishment, Nepal Telecommunication Corporation was transformed into Nepal Doorsanchar Company

from urban areas to the economically non. technologies best meeting the interest of its customers has always been selected. business oriented. To achieve this goal. 2061. market growth due to increase in standard of life and finally by healthy competition. Vision & Goal 2 .viable most remote locations. Nepal Telecom has always put its endeavors in providing its valued customers a quality service since its inception. it is felt that milestones and achievements of the past are not adequate enough to catch up with the global trend in the development of telecommunication sector and the growth of telecommunication services in the country will be guided by Technology. as telecommunications is one of the most important infrastructures required for development. Declining equipment prices. Definitely Nepal Telecom's widespread reach will assist in the socio-economic development of the urban as well as rural areas. Converting NT from government owned Monopoly Company to private owned. Mission. Accordingly in the era of globalization.Limited from Baisakh 1. Nepal Telecom invites its all-probable shareholders in the sacred work of nation building. . customer focused company in a competitive environment. The nationwide reach of the organization. is the result of organization efforts. Nepal Doorsanchar Company Limited is known as Nepal Telecom by general public.

2 Research Issue 3 .Mission "Nepal Telecom as a progressive. political and economic development of the Country" Vision "Vision of Nepal Telecom is to remain a dominant player in telecommunication sector in the Country while also extending reliable and cost effective services to all" Goal "Goal of Nepal Telecom is to provide cost effective telecommunication services to every nook and corner of country" 1. customer spirited and consumer responsive Entity is committed to provide nation-wide reliable telecommunication service to serve as an impetus to the social.

How can restructuring enhance productivity? 4. Has privatization brought change in organization structure? 3. it is now the necessity of the organization to find out its strength and weaknesses in order to cope with the opportunities and threat in the environment. It mainly looks the solution of the following points.Present era is the era of globalization. The world is getting so small due to globalization. also their effect on employee motivation and dedication towards work. NTC possess the most part of market share but no tie remains same for a long in the field of investment. How can organization be restructured? 2. After the conversion of corporation into company. 1. The government of Nepal has adopted the policy of privatization in the light of economic liberalization and globalization. innovation and emergence of the borderless concept in the field of investment and trade bring both opportunity and threat to the existing enterprises in the economy. So.4 Objective of the Study The main objective of the Study is 4 . As Nepal is member of WTO. Nepali enterprises can reap the lots of benefits an grasp the opportunities but at the same there will be the threat of international business houses. Up to this time frame.3 Statement of the Problem The problem towards which the study is directed is to identify and analyze organizational structure and its effect on the company image and performance. 1. What are the factors for missing in prevailing structure? 1. Technology. number of service provider has come in the market and they are in the way of getting better position in market.

To analyze the impact of organizational structure in NTC productivity. 3. Higher authority can clearly assign jobs to their subordinates through effective line of control. It plays a major role in increasing the productivity of an organization.6 Limitations of the Study The limitations of the current study are as follows. sms. It is based on opinion survey and may not free from biasness. 2. Organizational structure can be divided into six groups which are responsible for the effective communication in an organization. It segregates the job according to their nature and types which helps to carry out the daily operational activities of an organization. To identify the lacking and deficiencies of NTC. 1. cdma. To determine the factor that reduces cost of an organization through restructuring. Objective of the company is to provide quality service to the costumer with updating the technology. and internet. 1. The study is confined in Pokhara only. This is a case study so we can’t argue the findings to other situations too. 1.5 Significance of the Study NTC has been the highest tax payer in our country and the first company to start telecommunication in Nepal. Its income is mainly through various services provided by the company such as mobile services. 2. Due to time constraint the study may not cover all the necessary facts. Formalization binds the employee in a code of conduct designed by the organization. 3. CHAPTER-II LITERATURE REVIEW 5 . It clearly defines the span of control.1. limitations and authority of an employee. 4.

to a large degree it determines the numbers of levels and managers an organization has. the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. Span of control indicates the number of subordinates a manger can efficiently and effectively direct. and allocates rights and duties. The study was based on the survey 6 . Organizational structure determines the manner and extent to which roles. In a centralized structure. In a decentralized structure.2 Review of the Related Study One broad study was done by Mr. with each steps being completed by a separate individual. lots of organizational rules and clearly defined procedures covering work processes in organization When the correlated tasks are assembled together it gives the job and if the jobs get grouped together. power. The essence of work specialization is that. the decision making power is distributed and the departments and divisions have varying degrees of autonomy. within which an organization arranges its lines of authority and communications. and coordinated. and how information flows between levels of management. and responsibilities are delegated. rather than an entire job being done by one individual. The research title was “Organization Structure of NTC”. Chain of command is an unbroken line of authority that extend from the top of the organization to the lowest echelon and clarifies who reports to whom. it is broken down into a number of steps. The span of control is important because. This structure depends entirely on the organization's objectives and the strategy chosen to achieve them. 2. If there are explicit job descriptions. Formalization refers to the degree which jobs within the organizations are standardized. Sandip Kumar Jha. the underlying basis for grouping the job is departmentalization.1 Conceptual Review Formal and informal framework of policies and rules. controlled.2. employee of Nepal Telecom.

Research identified six factors namely Specialization. Chain of Command. span of control was found the most effective and most stable. CHAPTER-III RESEARCH METHODOLOGY 7 . Formalization. consultants and stakeholders. Span of Control. Results showed very consistent findings with theoretical assumption. It shows less the span of control more effective and productive will be the organization. Departmentalization. researchers. policy makers. The research was an introductory attempt of scientific investigation on Nepalese general business environment therefore it has implication to students.conducted in the company and his personal experiences. Centralization and Decentralization. Among these six.

Descriptive statistical tool such as mean.3.3Tools and technique Questionnaire set was developed in an attractive manner to find out the information about the company. articles and cases were analyzed to facilitate the study. articles and annual report. 3. For primary data interview was provided to the staffs of NTC. annual report. The source of data is interview. Some data were obtained from internet. Data were derived from the tables and graph available in internet. Case study enables us to explore and understand problems.2Sources of Data Both primary and secondary data are used in this sturdy. Organization Structure NEPAL TELECOM Board of Directors 8 . observation. articles etc. Some meeting was held with few staffs formally as well as informally. cases. percentage are used for data analysis. For secondary data. Microsoft word was used to prepare the report.1Research Design Present study pursues the case study research design. issues and relationship in particular situation. 3. A case study is a fairly intensive examination of a single unit. annual report.

Human Resource Mgmt. Khadga Basnet MWRD. Bhagat Man Singh Pradhan Director Mobile Service Directorate Mr.Operation & Maint. Amarnath Singh REGIONAL DIRECTORATE Director . Nara Manandhar DMD-Business Mr. Shiv Bhushan Lal Director PSTN Service Directorate Mr.Company Secretariat Mr. Jeevan Ratna Shakya Director Wireless Directorate Mr. Lok Raj Sharma Director Telecom Training Center Mr. Madhusudan Karmacharya Director WRD. Internal Audit Mr. Amrit Prasad Shrestha Director Nepalgunj Mr. Hiranya Kumar Bhattarai DMD. Buddhi Prasad Acharya DMD-Planning Mr. Anoop Ranjan Bhattarai DMD . Mr. Kanhaiya Lal Gupta DMD Change Management DMD . Dev Narayan Yadav Director ERD. Sundhara Mr.CRD. Dhangadi Mr. Karmacharya Rameshwar Director IT Directorate Mr. Vishwanath Goel DMD-Development Mr. Sudhir Prasad Aryal Service Narayan Director Satellite Service Directorate Mr.MANAGING DIRECTOR Mr. Bishnu Dhakal CHAPTER-IV PRESENTATION AND ANALYSIS OF FACTS Basics of organizational structure 9 . DMD. Bhairahawa Mr. Bishnu Prasad Kasaju Director FWRD. Birgunj Mr. Shyam Sunder Yadav Director KRD. Biratnagar Mr. Bahadur CORPORATE OFFICE FIELD OFFICE DMD-Finance Mr.

1 Work Specialization The essence of work specialization is that. it is broken down into a number of steps. If we count these factors they can be addressed as 1. the management should understand the economy it provides in the certain types of jobs and problems it creates when it is carried too far. In such cases. Departmentalization 3. they often achieved significantly higher output with increased employee's satisfaction. Centralization and Decentralization 6. Designing organizational structure is specifically a management's job. stress. poor quality. There are numbers of factor which should be addressed while designing the organization's structure. low productivity. 4. So. rather than an entire job being done by one individual. fatigue. But in some jobs it also brings boredom. the scope of job activities. Span of Control 5. One of the most 10 . rather than narrowing. Formalization 4. By giving a variety of activities. productivity could be increased by enlarging. Chain of Command 4. To some extent work specialization increases efficiency and productivity. increase absenteeism and high turnover.Simply organizational structure indicates how the job tasks are formally divided. the underlying basis for grouping the job is departmentalization. with each steps being completed by a separate individual.2 Departmentalization When the correlated tasks are assembled together it gives the job and if the jobs get grouped together. allowing them to do a whole and complete job and putting them into teams with interchangeable skills. Specialization 2. grouped and coordinated.

If the unity of command is broken and employee might have to go with conflicting demands or priorities from several supervisors. Likewise. and customers. process.4 Span of control It indicates the number of subordinates a manger can efficiently and effectively direct.3 Chain of Command It answers question fro employees such as "To whom do I go if I have problem?" and "To whom am I responsible?" so it is an unbroken line of authority that extend from the top of the organization to the lowest echelon and clarifies who reports to whom. All things being equal the wider the span.popular ways to group activities is by functions performed. unity of command preserves the concept of an unbroken line of authority. geography. This department can find the way by which the whole organization could take the competitive advantages from environment. 4. 4. The span of control is important because. the more efficient the 11 . Authority refers to the rights inherent I a managerial position to give orders and to expect the orders to be obeyed. It states that a person should have one and only superior to whom he or she is directly responsible. Jobs also are departmentalized by the type of product. It comprises two complementary concepts: authority and unity of command. to a large degree it determines the numbers of levels and managers an organization has. In our organization there is a need of R&D department to bring out the quality products and services by finding innovation.

The formal one is highly centralized and latter decentralized. speed of decision making. lots of organizational rules and clearly defined procedures covering work processes in organization. The global trend in recent years has been towards wider span of controls. Consistent with recent management effort to make organization more flexible and responsive there has been a marked trend towards decentralizing decision making. 4. it can be said there is a high formalization. In contrast the more that lower level personnel provide input or are actually given the discretion to make decisions the more decentralization there is.5 Centralization and Decentralization In some organizations top managers make all decisions and at other extreme there are organizations in which decision making is pushed down to the managers who are closest the action. If a job is highly 12 . cut overheads. it becomes too large in shape and size. They are consistent with recent efforts by companies to reduce cost. lower level managers are close to 'the actions' and typically have more detailed knowledge about problems than top managers.6 Formalization It refers to the degree which jobs within the organizations are standardized. As organization's services . 4. Robbins). get closer to customer and empower employees. If there are explicit job descriptions. At present this key element has given a high priority in Nepal Telecom.organization. increase flexibility. (Stephen P. If the top management makes the organization's key decisions with little or no input from lower level personnel the organization is said centralized. In large companies.increasing day by day.

Employees can be expected always to handle same input in exactly the same way resulting in a consistent and uniform output. job description and systematic job evaluation. So. 4.7 Findings 1.formalized. the job incumbent has a minimum amount of discretion over what is to be done. the management should find which job needs what degree of formalization. But in practice the job is not placed by the right is not clear. when it is to be done and how he or she should do it. No all tasks are well coordinated to give a specific job. they possess job description and job specification. What is to be performed by whom. they lack clearly defined job specification. 13 . Few jobs are well defined.

3. 5. 8. 7. 4. Team work. There must be the common basis for grouping the job in order to form a department. work group and group dynamics should be clearly defined. No all jobs are formalized in order to get the standardized one. A missing department in Nepal telecom is R & D department. But one thing is clear that how many levels and managers our organization has. It needs to be practiced for better outcome. jobs should be departmentalized by the type of product. CHAPTER-V SUMMARY. There is no any specific span of control in our organization. process and customers. geography. But the lower level manager are those people in who are "close to action" and face problems with customer as well as employee. CONCLUSIONS AND RECOMMENDATIONS 5. Corporate Restructuring as a solution.2. hence. In Nepal Telecom. 6The Company should clearly state which jobs are core and which are secondary one. they must be participated in decision making. There is a lack of clear cut line of authority of who reports to whom. The non core job should be identified.1 Summary 14 . All power and authority are resumed by top level and decisions are made by them. Our company has followed the quite traditional technique for granting the authority.

2 Conclusion As mentioned earlier. it should cover the all levels. our company will have its journey through a restructuring process-a longterm strategy. departments and directorates including training centre. outdated frameworks and rethink to remove all those by getting policies and plans for new structure. increasing motivation and lowering the absenteeism and employee turnover. finding the lacking. it is irrevocable for a long duration. In Nepal telecom. So. restructuring is an hot issue. deficiencies. drawbacks. In this way" 15 . But only the issue of increment in level is not a basic factor for it. Once it has been adopted. Rather it will increase the customer satisfaction and customer delightment. Organizational restructuring has simple meaning of thinking of existing organizational structure. It leads to cut down the overheads without deteriorating the quality of service. when two or more employee gather they generally discuss about it. it should cover the all dimension of organizational structure to fulfill the motive of corporate restructuring.It is a long term strategy. It should fill all the gaps and correct the deviations. This "restructuring" has got importance mainly for one issue whether they get one promotion for upper level or only the people at top level get the chance. It addresses all the missing in prevailing structure and finally finds company in a new shape. Hence. It is adopted not only to change the structure but in order to foster productivity enhancing efficiency. 5.

The management should adopt that structure which will reduce the cost. For any job right employee should be selected to complete the task systematically. The management should consider the basic element such as span of control. whose status is somehow contradictory and controversial in the prevailing structure. goal oriented. job description and job specialization should take care properly.Restructuring" refers to the dismantling or replacing the existing structure by relevant. The jobs should be well defined. decentralization etc. Company should be able to detect the basic and non basic job of an organization. 5. cut the overheads and finally increase the productivity making the employees morale high. Jobs should be departmentalized by the type of product. provided they have some degree of permanence. The great challenge to the management is to address the all key elements for designing the structure. formalization. competitive structures satisfying the people within the organizations. This pattern pertains to both reporting and operational relationships.3 Recommendation An organizational structure is the pattern or arrangement of jobs and groups of jobs within an organization. 16 . so that emphasis can be given to core job.

There should be a clear line of authority to perform a job effectively. Corporate restructuring should be done. group work should be emphasized to practice better outcome. process and customers. Team work.R& D department should be established in NTC as it is the technology based industries which requires much innovation. Currently power is on the hands of top management only. All the jobs should be formalized to get standardized outcome. Authority is centralized it needs to be decentralized so that power is granted to all level of managers.geography. 17 . team esprit. That will lead to customer satisfaction and retention.

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