Direct Telecommunications Pls (DT) has gone from being one of the most successful telecommunications companies, to a position, where it has accumulated to an enormous dept. Responsibility for this dreadful decline has been attributed to the Chairman of DT, David William.
Report will analyse the differences between leaders and managers, explaining why David William should be more of a leader than a manager. Short definition of leadership will be given followed by the characteristics of successful leader.
Explanation of Hierarchical organisation structure and its disadvantages will be provided following the benefits of more appropriate organisation construction, also suggestions how Direct Telecommunications could achieve it followed by conclusion and recommendations for the company.
Characteristics of successful leader
Frequently the group leaders appear in a large organisation, they are very enthusiastic, they encouraging and helping others toward achieving company's goals. According to the book writer organisation without leaders would be only the group of confused people. In every organisation where is at least one leader who is leading the others. Thereto leadership is the ultimate act that identifies, develops and uses the potential that is in the organisation and its people.
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People tend to use the term leadership and management, then they talk about company's management structure as its leadership or than they talk about individuals who are actually manager as the leaders of various teams.
One of the most important characteristic of successful leader is intention to lead and decision to become a leader. Leader has to provide a vision of the future of organisation and to be able to inspire others to successes. The vision must be aimed throughout the organisation. Second important thing to be a successful leader is to be able to see the goals and objectives of organisation, follow the vision, to provide direction and to guide other employees. Personal characteristics such as intelligence, courage, inspiration, competence and honesty are also very important for the leader of organisation.
Why David should be more leader than a manager?
Undoubtedly leadership is an important part of management. Managers are required to plan and organise, but the leader role is to influence others to seek defined objectives enthusiastically. This means that the person can be a strong leader, but the poor manager, if they poor planning orient the group to the wrong direction. Sometimes its opposite person can be a very weak leader but at the same time be a relatively effective manager. In real business organisation people expect excellent managers to have reasonably high leadership ability. According to business analysts David Williams does not have the leadership skills that modern companies require, he is more concerned about controlling and maintaining the organisation, these skills are more suited to the organisation of the past. Nowadays then telecommunication market is so competitive, he needs more of the leader skills to respond quickly to the changes in the market place. As competition responded to the changes in the market, David did not bring any changes in the organisation, which is one of the reasons why company faced the downturn. Leader is usually role model of the organisation and other employees tend to follow them. David was not open for new changes, did not have a clear vision and promptly set goals of the future. It may be a lot of reasons of that, such as, lack of resolution and courage, motivation deficiency, which cost the failure of all business. David should me more initiative, courageous with a clear vision of changes and to inspire others to success, not just plan and control the organisation.
Disadvantages of Hierarchal structure
A proper organisation structure it's very important to a company as it helps management to achieve its objectives.
According to business analytics DT is still organised in a traditional Hierarchical structure. Decision making is still made by the committees, which takes far too long
to make the necessary decisions in a rapidly changing environment. Hierarchical structure is usually used and still usable in a big organisation such as DT.
In Hierarchy employees are arranged at the various levels within the organisation, where each level is above the other and at each level one person has a number of workers directly under their control (see the picture below)
Always on Time
Marked to Standard
(Hierarchical Organisation Structure)
Usually is centralised with a highest role, where the most important decisions being taken by top managers, most clearly defines each workers position within the organisation and shows their relationship with other employees.
A traditional hierarchical structure clearly defines each employee's role within the organisation and defines the nature of their relationship with other employees. Hierarchical organisations are often tall with narrow spans of control, which gets wider as we move down the structure. As organisation grow bigger hierarchical organisation is practical, because management could ensure command and control of the organisation. Nonetheless this organisational structure has quite a few disadvantages. First of all organisation can become bureaucratic and respond slowly to the changes, which are essential for organisation and for customer needs.
Secondly is disadvantageous because of communication between the various sectors can be poor, as they apart from each other. Another disadvantages is that department can make decisions which are more beneficial to them rather than to the company and business.
In some way it is good for a highest management, but is it suitable for the company, especially nowadays then widespread use of technologies downsize and reduce the workforce. Technologies took over the functions previously carried by the humans. Analysing DT situation we can see that David did not introduce any new technology and did not adapt to the changes in the consumer telecommunications market, while the competitors did. That was another reason of DT failure.
The Matrix Structure
Another alternative to DT could be the matrix organisation structure, which been used by big organisations such as hospitals, government agencies, universities, management consulting firms, laboratories and construction companies.
The strength of the matrix is that individuals with highly specialised skills are lodged together in one functional department or product group. The structure has two different grouping, each function and project has a manager, and each subordinate is a member of each group, usually having two supervisors. Matrix system improves company's coordination by allocating project responsibility to a single coordinator rather than spreading it among the number of heads of functional department. Furthermore it could improve the communication between employees, because they have the opportunity to talk about the project or work plan with both colleagues in their project team and in the functional department.
There is no doubt that changes need to be introduced in DT as soon as possible on purpose to save the organisation and be able to respond to the increased competition.
One of the most important tasks for David, would be reorganisation of the company's structure, as we know people who perform the work is the base of success and grow of the business. First of all proper organisation structure, such a matrix, should be used and the plan of systematic arrangement of work should be made.
By using the matrix the better plan could be made such as, for example financial department would be in one axis and department of geographical areas would be on the other, it might be beneficial to have each of its geographic units interlaced with its finance section. The matrix structure would allow DT to decide if they have a capital necessary to purchase the license and develop the particular area or if it should take advantage of an opportunity in another region. It would help DT improve the work efficiency because people from different departments would cooperate closely, they would share the data and it would help them to achieve common goals.
Matrix organization may use the recourses more efficiently than other organic structures because of speed and flexibility. Moreover matrix management system will improve motivation in the DT, because decision making within groups becoming more democratic and participatory, because each member is able to bring specialized knowledge and skills to the table and usualy when people have a direct impact on decisions, they are more likely to experience higher levels of motivation. Furthermore become more responsible, they work harder and seeking to reach the common goals.
To sum up the report above we could state that is essential to introduce some major changes in the Direct Telecommunication, starting from the chairman David Williams. It is obvious that he is more of manager than a leader, but there is no doubt that he should become more of the leader on purpose to save the business. Report shows that good leader has to have and provide a vision of the future of organisation and to be able to inspire others to successes. In the other hand you can not save the organisation by being just a good leader, you also have to have a good organisational structure, in this case it would be changing the old hierarchical structure to a new, more effective matrix organisation, which would help introduce the new technologies and improve employees efficiency. Properly structured organisation will release energy and creativity, rationalise productivity and will improve morale. After implementing all these changes in DT, company will be able to grow, to return to their previous market position and compete with other telecommunication companies.
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David Williams should be more of the leader, rather being just a manager. Be more responsible for the organisation, set the clear goals, spread it throughout the organisation and inspire other to success.
Liquidate the old inefficient hierarchical organisation structure and introduce more responsive, such as matrix.
Introduce new technologies.
Respond faster for the new changes in the market.