Inroduction To Companies Etisalat Lanka Business Essay

As a specialist of leading management consultancy I am going to do a simple research on the organizations and tendencies section. To get this done assignment I have decided on two companies in the telecommunication industry. You are Etisalat Lanka PVT LTD which is situated in Abu Dhabi and working in 18 countries including Sri Lanka and second company is Lanka Bell Services PVT LTD which is controlled only in Sri Lanka. So in this project I am going to discuss briefly in their organizations framework and culture areas, and also I am going to discuss about the current leadership varieties of the firms.


Etisalat Lanka (PVT)(LTD)

Sri Lanka's first Cellular sites, then called Celltel inaugurated its businesses in 1989. A brand name change was done on the 25th of January 2007 and thereafter called "Tigo" and this was changed with Milicom disposing its Asian operations. They are now a company fully owned and handled by the gigantic Emirates Telecommunication Company in UAE. They have extended procedures to Asian markets such as India, Pakistan, Afghanistan, Indonesia and now Sri Lanka, saving over 100 million clients across 18 countries offering opportunities for synergy using their other operations in the region. Etisalat officially commenced its functions in Sri Lanka on the 25th of February 2010.

Lanka bell limited

Lanka Bell is a telecommunication operator that delivers full selection of telecommunication service to business and residential customers in Sri Lanka. While using recent introduction ground-breaking low priced CDMA (Code Section Multiple Access) technology, Lanka Bell is constantly on the expand its sturdy modern digital network that currently specializes in internet, data and tone of voice services. Lanka Bell was created in 1997 as the single major BOI Company in Sri Lanka. It had been subsequently acquired by the privately organised diversified conglomerate Milford Holdings (Private) Small in 2005. Lanka Bell remains firmly rooted in Sri Lanka as a telecommunications giant that continues to task the industry through its unrivaled portfolio of services.


The organizations structure and culture Lanka Bell and Etisalat

Etisalat and Lanka bell both are working in the telecommunication industry so most of the factors in the culture and structure are same. They both are using useful organizational structure

1. 1 Firm composition of Lanka Bell Services (PVT) (LTD)

Finance Director


Board of Directors


Managing Director

Customer Service Depart.

Technical Mang.

HR & Admin

GM Technical Operation

Assistant manager

Senior manager

General Director -HR

Marketing manager

Business Analysis

Manager - HR

Manager- Earnings Assurance

DGM control /MIS

Area Sales Managers

Sales Executives

HR Assistants

Billing staff Director

Internal accountant Director

Manager- credit control Director

Senior service executives Director


GM IT teams

Associates clerical

Supervisors Director

Customer care Executives Director

Internal accountant Director

Billing personnel Director

Organization composition of Etisalat Lanka (PVT) (LTD)

1. 3 Organization's culture at Lanka bell and Etisalat

There are numerous definitions for organizational culture but a favorite and simple way of defining culture is 'how things are done around here' A far more detailed classification is

The collection of traditions, values, insurance policies, beliefs, and attitudes that constitute a pervasive framework for everything we do and think within an organization (Atkinson)

There are four g types of culture such as: Vitality culture, Role culture, Task culture and person culture. As both companies are in the telecommunication industry and also both companies are greater companies in Sri Lanka they are simply following the Role culture.

What is Role Culture?

Role culture stereotyped as a bureaucracy and functions by reasoning and rationality. Role culture rests on the strength of strong organizational 'pillars' - the functions of specialists in, for e. g. ; financing, purchasing and creation. The work of, and relationship between your pillars is manipulated by steps and rules and coordinated by the pediment of mature professionals. Role or job description is more important than the average person and position is the primary source of ability.

(Laurie J. Mullins 8th model)

So role culture is Common in most organizations today. In a job culture, organizations are put into various functions and each individual within the function is designated a specific role. The role culture has the benefit of field of expertise. Employees focus on their particular role as assigned to them by their job information and this should increase efficiency for the business. This culture is quite logical to organize in a sizable organization.

Different dimensions of organizations culture in Etisalat and Lanka Bell

Profit Orientation

In Etisalat and Lanka Bell income orientation is legislation because their main focus on is to give a best service with their customers, these are regarding highly on client satisfaction and delight

People Orientation

People orientation is saturated in Etisalat because they're 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 arranging get to collect get-togethers and motivational programs for his or her employees but in Lanka Bell People orientation is Laws.

Team Orientation

Team Orientation is high in Etisalat because its employees choose to work in categories rather in individuals to achieve their sales goals. So team orientation will lead the business to increase their sales. But in Lanka Bell team orientation is Low where their employees are choose to are individuals


Innovation is high in Etisalat they can be coming with services quickly, they starts with prepaid interconnection, after that was included with postpaid, launched 3G, broadband and they are going to start Etisalat TV. But in Lanka Bell it's very low they may be rely only in CDMA connection


Mission affirmation of Etisalat Lanka PVT LTD

To extend people's reach. At Etisalat, our company is actively producing advanced systems that will permit people to develop, to learn and to grow

Vision declaration of Etisalat Lanka PVT LTD

A world where people reach is not limited by matter or distance. People will naturally move around the earth, residing in touch with family, making new friends as they go, as well as producing new interests. Businesses of all sizes, no more tied to distance, will be able to reach new market segments. Innovative technologies will open up fresh opportunities throughout the world, allowing the way to obtain new goods and services to everyone who wants them.

Vision affirmation of Lanka Bell

"Be Sri Lanka's top next era communication & IT solutions provider

Mission affirmation of Lanka Bell

"To provide innovative next era technological alternatives by determining and meeting customer needs better than another industry player, while maximizing the growth of our own business for the power if our stakeholders"

Impacts and interactions of two companies through their composition and culture

Performance for two companies through their framework and culture

How organizational ideas underpins the practice of management

The different methods employed by the management of both companies

There many methods used by the both companies those are

Human relationships approach

Systems approach

Contingency approach

Human Relations approach

The main emphasis of the classical freelance writers was on structure and the formal group, but through the 1920, s the years of the great depression, higher attention commenced to be paid to the communal factors at work also to the habit of employees in a company - that is, to individuals relations.

Human relations approach Emphasized importance of human attitudes, principles and relationships for the effective and effective working of work organizations.

Systems approach

The classical way emphasized the technological requirement of the organizations and its own needs-'organizations without people' the human relations methods emphasized the internal and social aspects, and the awareness of individuals- needs- 'people without organizations'

Attention is concentrate on the full total work group and the inter romantic relationships of structure and action.

Productivity can be regarded as a function of the interplay among people, structure, and the surroundings.

The company is a intricate social and technical open system that requires human being, financial, and material resources.

Contributions of Systems Approach To Management:-

Under systems deal with, professionals have a good view of the organization. It offers importance to interdependence of the different parts of a business and its environment.

It foretastes results and plans actions.

A system thinking warns professionals against implementing piecemeal approach to the problem-solving

Contingency Approach

The contingency method of organization developed as a a reaction to the idea that there are 'universal ideas' for creating organizations, motivating personnel etc. newer research advised that different types of organizational structure could be evenly successful.

(Class Records)

The contingency methodology, which is often viewed as an extension of the systems approach, highlights possible method of differentiating among substitute forms of the organization set ups and systems of management.

(Laurie J. Mullins 8th model)

The organization's framework must be matched to its environment to improve performance.

The optimum form of a business is contingent on the circumstances encountered by that company including patients, third-party payers, regulators, and workers.

Section 02

Different command styles that Etisalat and Lanka Bell are pursuing:


Leadership style is how the functions of control are carried out, how typically behaves towards participants of the group.

Both companies are using the Democratic style, and Laissez- faire (Genuine) style because of marketing growth and due to the size of the business, that the autocratic style is not ideal to check out in the telecommunication industry.

Democratic style is where in fact the emphasis is more with the group as a whole, and there is better relationship within the group. The leader dispatch functions are distributed to the people of the group and the manager is more part of a team.

Laissez- faire (Genuine) style is where in fact the administrator observes that customers of the group will work well on their own. The manager consciously makes a decision to cross the target of capacity to members, to allow them independence of action 'to do as they think best, ' rather than to interfere but is easily available if help is necessary. There exists often confusion over the style of command behavior.

Analysis of different leadership styles and their effectiveness

The democratic innovator works with the group to help people to come quickly to their own decisions, the Laissez- faire leader leaves the group alone to do whatever it wishes. Both styles are best for both the companies, because there are number of groups, and departments, in both companies.

Therefore the democratic style will suite certain departments and groups, when there's a situation where in fact the team members cannot make a great decision, set alongside the Laissez- faire style which will be relevant to departments and teams who are able to make effective decisions alternatively than relying on the manager's decisions.

Effectiveness of Democratic Style

Risk is low. Professionals have experience to make effective decisions; therefore this reduces the risk of earning bad or incorrect choices.

If the ideas are going to be open for everyone, then everyone must feel safe enough to place their ideas on the table. So are there a lot of ideas will generated

It takes good thing about the knowledge and expertise of individuals in various areas, for high quality, adaptable decision making.

Keeps staff prepared about everything that impacts their work and shares decision making and problem dealing with responsibilities.

Staff loves the trust they acquire and answer with assistance, team soul, and high morale increasing.

Develops projects to help staff evaluate their own performance.

Allows staff to establish goals

Encourages staff to grow on the job and become promoted

Effectiveness of Laissez- faire (Genuine) style

The manager provides little or no direction and gives staff the maximum amount of freedom as it can be so that it motivates employees.

In the telecommunication sector there are several sales force so, those groups can do their own works to achieve their own goals, this will improve the sales

All power or power given to the staff plus they determine goals, make decisions, and fix problems on their own.

Employees get excited about decisions. This stimulates motivation through increased interest and involvement so new ideas are produced.

The free reign methodology can prove a highly effective type of leadership when the team has achieved id and cohesion, resulting in motivated and resourceful associates. In such situations, the sharing of specialist and minimal direction empowers associates.

Impact that different leadership styles may have on desire of employees of Etislat and Lanka Bell when they face the scientific breakthrough

When there is a technological discovery that has occurred last week affecting the firms, and the industry as whole, a democratic style leader could consider the following actions to inspire the employees

Introducing the key goal of the given project

Encourage associates to converse openly, frankly and continuously

Members should be made aware of the company's economical composition and expansion to help them think and produce ideas that are definitely more applicable to the business.

Arranging a brainstorming treatment to acquire new ideas to compete with the discovery.

The ideas accumulated through the brainstorming session have to undergo the new product development process to be able to face the new scientific breakthrough.

Increasing the working hours, and pay the employees more for working overtime.

Should produce special incentives according with their performance



Maslow's hierarchy of need theory

A useful starting point is the work of Maslow and his theory of specific development and determination published formerly in 1943. Maslow's basic preposition is that folks hoping beings. They always want more, and what they need is determined by what they already have. He suggests that individual needs are established in a series of levels, a hierarchy worth focusing on. (Mullins, pg 257, 8th Ed. 2007).

In this drive theory Maslow has determined the real human needs in five main levels. From at the lowest level physiological needs, through protection needs, love needs and esteem needs, to the necessity for self-actualization.

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Image 01. Maslow's hierarchy of need model

Herzberg's two-factor theory

The Two-factor theory (also known as Herzberg's motivation-hygiene theory and Dual-Factor Theory) says that we now have certain factors in the office that cause job satisfaction, while another set of factors cause dissatisfaction.

Herzberg's original review consisted of interviews with 203 accounts and engineers, chosen for their growing importance available world from different companies in the Pittsburgh part of America. He used the critical occurrence method. Subjects were asked to associate occasions when they felt exceedingly good or very bad about their present job or any earlier jobs, they were asked to provide reasons and a explanation of the sequence of events supplying rise to that feeling. Responses to the interviews were generally regular and exposed that there were two different collections of factors affecting drive and work. This resulted in the two-factor theory of motivation and job satisfaction. (Mullins, pg 261, 8th Ed. 2007).

images. jpg

Vroom's expectancy theory

The style of determination of Vroom's expectancy theory, especially as it was long by Porter and Lawler and supplemented by several other ideas. Expectancy theory is a wide theory of drive that attempts to explain the determinants of work place attitudes and habits. The three major principles underline expectancy theory are those of Valence, Instrumentality and Expectancy, which form VIE theory.


Valance is a way of measuring the attraction confirmed outcome retains for a person, or the satisfaction the individual anticipates acquiring from a particular outcome.


Instrumentality is someone's belief about the partnership between doing an action and experiencing an result. Deciding people's instrumentalities is important because their desire to execute a specific action may very well be strong only once both valance and instrumentality are perceived as acceptably high.


Expectancies are values regarding the website link between working and actually doing well whereas knowledge about valances and instrumentalities instructs us what a person wishes to do. We can not know what the average person will try to do without knowing the individuals expectancies.


Expectancy theory thus defines motivation in terms of desire and effort whereby the achievement of desired effects results from the conversation of valances, instrumentalities, and expectancies. Desire happens only once both valance and instrumentality are high, and work comes about only once all three are high. 4. "Theory X and Theory Y" of Douglas McGregor

McGregor, in his publication "The Human area of Venture" states that folks inside the organization can be supervised in two ways. The foremost is quite simply negative, which falls under the category X and the other is basically positive, which falls under the category Y. After viewing the way in which the manager handled employees, McGregor figured a manager's view of the type of humans is based

Under the assumptions of theory X

Employees inherently do nothing like work and whenever you can, will attempt to avoid it.

Because employees dislike work, they need to have no choice but, coerced or threatened with consequence to accomplish goals.

Employees avoid tasks and don't work fill formal guidelines are given.

Most workers place a greater importance on security over all other factors and display little ambition.

In comparison under the assumptions of theory Y

Physical and mental work at work is as natural as recovery or play.

People do exercise self-control and self-direction and if they're focused on those goals.

Average human beings are prepared to take responsibility and exercise creativeness, ingenuity and creativeness in solving the problems of the business.

That the way the things are sorted out, the average individuals being's brainpower is merely partially used.

On research of the assumptions it can be discovered that theory X assumes that lower-order needs dominate individuals and theory Y assumes that higher-order needs dominate individuals.

An business that is operate on Theory X lines is commonly authoritarian in dynamics, the word "authoritarian" suggests such ideas as the "capacity to enforce obedience" and the "right to command. " In contrast Theory Y organizations serves as a "participative", where in fact the aims of the business and of the individuals in it are included; individuals can achieve their own goals best by directing their attempts to the success of the organization. However, this theory has been criticized generally for generalization of work and individual behavior.


From the ideas mentioned above it is understandable that managers need to choose one or two theories that are definitely more applicable for his or her own company to work better and make higher numbers of positive benefits Therefore predicated on this assignment supervisor of Lanka bell needs to pick out a suitable motivational theory to be able to run the business with great success. Understanding the needs of Lanka bell it might be highly recommended that the supervisor should initially opt for Herzberg's two-factor theory because of the pursuing reasons.

Why Herzberg's two-factor theory is important? And effectiveness of using Herzberg's two-factor theory

Herzberg (1968) saw two basic needs of people, and he suggests two factors.

The need to avoid unpleasantness, satisfied (temporarily, and in a fairly negative way) by 'environmental factors'

The dependence on personal expansion, satisfied at the job only by 'motivating factors'

Environmental Factor or Hygiene factor

In this factor Herzberg has explained about the working environment which is company policy and supervision, Salary and job security, in this factor he brought up the main needs of the employers.

Motivator factor

Motivator factors, on the other hand, create job satisfaction and can encourage a person to superior performance and effort. These factors match the individual's higher dependence on a sense of self-actualization or personal progress, and include



Gaining recognition

Being given responsibility

Challenging work


Growth in the job

Effectiveness of using Herzberg's two-factor theory

Herzberg encouraged professionals to study the work itself (aspect of tasks, levels of responsibility) alternatively than conditions of work. ' Dissatisfaction happen from environment factors-satisfaction can only arise from the job'. When there is sufficient challenge, opportunity and involvement in the job, you will see a lasting upsurge in satisfaction and the worker will work well; productivity will be above' normal' levels. the level to that your job must be challenging or creative in order to provide drive will depend on every individual, his potential, his expectation and tolerance for postponed success.


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