Structure And Culture Portugal Telecommunication Commerce Essay

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The following report discusses about the structure and culture Portugal Telecommunication and Lanka Bell. Includes the comparison of structure and culture of both organizations. Report also discusses how organization structure and culture have performance of both Portugal telecommunication and lanka bell. This report will also explain different approaches to management used by Portugal Telecommunication and Lanka Bell. Moreover it will discuss different leadership's styles in both companies and how it Can effects to company's performance. Report has been discussed about in different leaderships styles have on motivation of both companies' employees in certain circumstance. At last Different Motivational theories within work place lanka bell have been discussed and motivational theories for mangers in lanka bell been discussed.

Introduction to report

Organization is defined as two or more people work toward to achieve certain objects. There are many type of organization exists in the environment. It can be sole trader ship. Public organization or private organization. To be a leading and good organization it's a big challenge in modern world. As many writers believe that to be successfully in the market, organization need good structure and culture which can be very effective among all the employees. Main purpose of this report is to discuss and talked about Portugal telecom and lanka bell.

1.1 Introduction of Portugal telecom (LO)

Portugal telecom is one of the leading communication operators in Portugal.

Founded in 1992 Lisbon, Portugal. Services provide by PT includes long distance and international telephone services, hiring of circuits, mobile, data and internet communications, cable television, information systems and contents, corporate solutions and entertainment.

"To deliver telecommunications and multimedia services of recognized value to our customers, technologically updated on a permanent basis through qualified and motivated resources, and respecting the environment and society"1.1.1 Mission

1.2 Introduction to Lanka Bell

Lanka Bell is 100% Srilanka owned communication provider in Srilanka.

Lanka bell was founded in 1997.

"Be Srilanka premier Next generation communication & Information Solution Provider"The service provided by Lanka Bell includes, Internet service, Post paid service, prepaid service, As well as IDD service.

1.2.1 Mission

Production Group

IT Dept.







HR. Department

Project Y

Project X

Project Z

Structure of Portugal Telecommunication (PT)

As above the structure shows that PT is following matrix structure. As this structure include many layers. When look at some Strength or advantages of matrix structure, includes;

Through Matrix structure PT allows employees from different department to come together temporarily to work on special projects, in that short time period employees will work together for the project. Example; if there is a new communication service launched, then the management will choose different people from each department who are having good experienced and they will work like as one family and the project will finish as fast.

As well Matrix structure open up for communication. As when the employees work together they get to know each other's and they can also exchange knowledge with each other employees as well they can also teach the new things to the employees.


Task culture is based on to complete particular task.

There is no specific leader.

Task Culture helps employees to motivate and get chances to work people with different knowledge and beliefs.

Employees also get a chance to take decision.

Employees also feel that they are also very important part of organization.Portugal Telecom is following task culture in their organization.

1.4 Organization Structure of Lanka Bell

Board of Directors

Managing Director

IT Dpt

Credit Control Dept

Enterprise & Business

Technical Operations


Admin & Logistic Dept

Legal Dept

Divisional Heads, Asst.Managers, Executives, Laborers


It's assumed that in the lanka bell company uses the above structure as for the second level managers and below.

Structure of Lanka Bell

In the Above structure identifies that Lanka Bell is practicing functional structure. Functional Structure is most common structure founds in organizations. In the structure can see there are few layers. This structure is very much difference form above Portugal Telecom structure. In Portugal Telecom structure they were following to Matrix Structure, which is having more layers than Lanka Bell structure. Moreover this structure helps each department focus on their own work. As look at some advantages of this structure includes;

Each Department Can focuses on its work - As Legal department can be focus in all the legal issues in the organization. Furthermore they can get more experience day by day.

Accountability- Lanka Bell has appointed a manager for each department. Manager will be heading or controlling the department overall. As all the employees in the department will report to the manager. This also helps the department to reach their goals as early as possible.

Clarity-In lanka bell, Employees are very much aware about their tasks and roles in this structure. They are well trained in their roles. An example; Employees are having lot of information about the department and they are also having capability to train other employees as well. Because of this there is good communication among the employees in the department.

In another hand look some disadvantages of this structure includes;

Since there is no sharing information and decisions among the department which will affect lack of communication among each department. An example if the IT department didn't understand what exactly HR department needs. In this process there will be error in communication process, between both departments and will end up with arguments among the departments.


As Lanka Bell has been Following Role culture. As it's very different from culture of Portugal Telecom. When it comes to role culture in every department has its own roles and their own responsibilities to do. In these types of culture each individuals are assigned for particular role, as organization is split in to various function which helps employees to specialize in their own field. As lanka bell believes that adopting this culture can motivate their employees in certain field and as well as they can make good relation with each other in the organization.

Comparison Structure between PT and LB

Portugal Telecom

Lanka Bell

Uses matrix structure

Uses Functional Structure

Wide Span of control

Narrow Span Of control


Relatively decentralized

High Formalization

Relatively low formalization

Comparison of organizational culture

Role Culture Of Lanka

Task Culture of Portugal telecommunication

Team work is poor

Team Work is good

Communication is weak

Communication is good

Tasks by individual

Tasks done by groups/teams

LO 1.2 Impact relation between structure and culture can have on their performance in PT and Lanka Bell

Organization structure and culture is one of the most important things in every organization. Culture and structure play major role in organization to achieve their target and goals. As we can see in both organizations use different type of structure and Culture. Having good structure and culture will show right way to company in both organizations use it in the best way as they can. In another hand weak culture is most probably to have weak and less efficient organizational structure. Both organization use division of labor or work specialization defines the scale to which tasks in an organization are divided into separate jobs. The main purpose of this idea is that an entire job is not done by one employee. When looking at the structure and culture of PT it shows that they can work together to achieve their goals and objectives through their structure. As it's matrix structure which all employees work together in team that can help them to improve their performance by following these Ways. Moreover having good team work among the staff's will helps organization to success in their business easily as well can improve the strength and performance of the company. Furthermore communication skills will get better, as there is effective communication then the performance of PT staff will be better and they will deal with customers in a professional way. When going through lanka bell culture and structure, they were following to functional structure and role culture, which helps all the employees to specialize or experienced in particular field that they need. Practicing this type will have good effect on performance, because in over all structure and culture of lanka bell shows the ways to employees by selecting a head of department who controls.

LO 2.2How Organization theory underpins the practice of management

Classic Administration Approach- this approach has been following commonly by lanka bell. Lanka Bell employees are allowed to be specialized in particular field that they are willing as per their capability. Company also gives importance to give proper training to their employees from the day they join to the company. These trainings are conducted by trainee supervisors which are appointed by each department. Furthermore lanka bell always welcomes to people who are having lot of year experience and having good education back ground. Lanka bell managers are given high authority and responsibility. Managers have significant powers that he can influence to he's staff's. An employee shouldn't receive orders from more than one boss inside the company. It basically means that for any activity or task that employees have to be done must receives order from one boss. This theory also says that decision making process will be based on highest to lower rank top to lowest rank, it has been practicing by Lanka Bell management. While lanka bell always provide reasonable salary to their employees as per this approach.


This approach has been following by Portugal telecom, as it found that in the Portugal telecom all the employees work with impersonal rules. As this is one of the element that has been explained by max Weber (Founder of bureaucracy). Further more in lanka bell gives priority to train all of their employees. As there is high degree of specialization of employees in the company. Each department or division is separated they are specialized in particular work and should do according to the rules and procedure that have mention. This can very helpful factor for the organization, as it will be easy them to take decisions and reach their goals. In bureaucracy there is strict rules that implemented by top management. Following to bureaucracy in Portugal telecom it also founds that selection and promotion is highly depend on employee's technical qualification. In Portugal telecom also can see that for every branch there is a manager or office which appointed, to controlled all the power in the branch and has the right to take decisions. Portugal telecom followed great extent of select employees based on qualification. Portugal telecom hired employees who are only having good qualification and experienced. Now a day's organization which follows to bureaucratic provides good salary and some other benefits to the employees.

LO 2.3Different Approach To management Used by PT and LB (Lanka Bell)


Human Relation Approach = According to Elton Mayo he defines that human relation approaches based on working conditions and productivity. Elton Believe that working conditions effects to productivity. Both Portugal telecom and Lanka Bell follows human relation approaches in their management. Portugal Telecom always allows employees to enjoy with subordinates, managers and colleagues more than LB. Employees are flexible to work in any country that they are interested to work. As Portugal telecom has a law that every employee must rotate within the branches and departments .Trained, which effects for motivation of employees. Each department will work on the unit to achieve their goal, often employees may come out of organizational goals as they operate as separate divisions. Portugal Telecom always respects each other employees that can motivate them.

Contingency theory

Contingency approach represents that there is no best way to organize. In practice, the contingency approach empowers management to create specific, integrated solutions to solve workplace issues and meet the project goals of clients. Portugal telecom has been following to this approach. This approach depends on the environment of the work place where employees work. Applying this theory to Portugal telecom managers has to find best way and be unique result of the situation they need to manage and Asses appropriate ways of handling them. This approach also supports mangers to deal in different situation in the organization.

LO2.1Different leadership styles in PT and LB and analyses the effectiveness of them by comparing

Leadership style in Portugal Telecom

Portugal Telecommunication (PT) is following democratic style in their company. As they consider it as their best leadership style. Democratic leadership is kind of style which consider employee as the part of decision making. In this type of leadership always senior management or manager keeps informing all the information to employees, Related in working environment. Management always shares information with employees and they discuss among all the employees before taking action. This helps employees to work together with all and it make strong the team work in the company. Hence we look at some effectiveness of democratic leadership includes;

Employees get chance to improve their performance and can work to get promotion or higher position.

Company recognizes employees and they recognize them and give achievements by looking at the performance of the employees eg: Employee of the month, the best working employee in that month.

Leadership style in Lanka Bell

Lanka bell is following to Autocratic leadership style in their company. Autocratic leader ship is a leader ship which influence manager. Manager will be their person who will give orders and take decision. In Leader ship style leader ship, manger never ask advice from employees to take decision or manger never give chances employees to be in part to take decision. Moreover in autocratic style employees need to obey the order of manager. As this type of leadership is strict leadership style.

Comparing Leadership style of Portugal Telecommunication and Lanka Bell

When we look through the leadership of both companies we found that both companies are using different types of leadership styles. After going through both leadership styles found that Portugal telecommunication is practicing most effective leadership. There is lot of reason that we can say democratic leader ship is most effective leadership. Democratic leadership can be considered as the best leadership that a company can adopt. Employees are one of the most important parts in any organization. Hence, In Portugal Telecommunication the democratic leadership helps all the employees to be part of decision making as earlier mentioned. As always mangers encourage and suggest employees to come up with decisions. However the decision will be made by the manager, by including the ideas form employees. Because of this employees get strength to work and they are able to work for long hours and they will try their best to achieve goals. In another hand the autocratic will be not much effectiveness to the company. As mentioned earlier this will be strict. In autocratic style manager has all the power to take decisions. Manger will be very strict and he will give orders to employees always, and they need to follow those orders. Employees also need to finish their task on time. This leadership is difficult to adopt in the organization now a days. As the department head will give the right directions to the employees, employees will work hard to achieve and improve the performance in the company. Many people believe that because of autocratic style leadership employees get bored to work and they are not interested in their working environment.

LO3.1Significant Technological Breakthrough has taken place in last week affect the both A&B also in the industry. Discuss the impact that leadership style may have on motivation of employees A&B


It's assumed that 4.5G Technology has been introduced to the market.

Portugal Telecommunication

Since the company employees are encouraged to share ideas and opinions they can engage more in decision making process, so they are motivated in the sorting out process.

Since the employees are feel more engage in decision making process, this will motivate them to make decisions for the significant changes.

After the break through, employees will come up to create more creative ideas among them. This will be motivated for them As Mentioned earlier that Portugal Telecom is following democratic leadership style in their company.

Lanka Bell

Lanka Bell is following autocratic leadership.

Autocratic leadership does hardly get any idea from employees, only the leaders make decisions, leaders do every process and the methods and employees hardly trusted by the leaders. Hence the employees are hardly motivated in this significant change.


LO3.2 Apply different Motivational theories within work place Of Lanka Bell and compare them


Hertzberg two factors, it's basically based on two factors which can helps to motivate in the work place. Which is Hygienic factor includes employee's salary, job security, Working Conditions and organizational policies. While motivate factors or satisfiers factor includes; Responsibility, achievement, growth opportunities. Maslow's theory consists basic needs, safety needs and social needs.

Lanka bell pay the wage structure or salaries that are appropriate and reasonable. Also lanka bell policies are flexible and equal to all employees. LB also provides flexible working hours to their employees. Working condition is one of the most important priorities given by lanka bell as always they maintaining working environment is safe for employees, by providing safety kit. As in this point company provides job security to all the employees. They always do their best to provide job security for the employees.furtehrmore they always recognize hard work of employees by nominating employee of the month and gives away valuable gifts. This can motivate lanka bell employees. Company managers also analyze jobs and to make sure that workers have challenging job, to motivate them moreover they also provide a fund that can be benefit for employee's future. Employees get promotions as per their capability and work. Mangers also praise for the good job if the employees have done .Furthermore, Lanka Bell practices in job enlargement, job rotation and job enrichment in order to motivate employees as well as to create high level of performance which leads to more profit to the company.

Abraham Maslow's Theory

As move on to Abraham Maslow's certain factors which are known as physiological needs, safety needs belonging needs, esteem needs and self actualization. Safety needs can be identified as job security; as the employed has guaranteed of he's job and the company should provide safety and protection for all employees. Furthermore company can also adopt an insurance scheme that can be benefit all the employees which can obviously motivate them. As it comes to social needs it company provides a retreat room or lunch room to the employee this can make good relation among the employees that they can share their ideas to each other employees in their break time, which can motivate them. At last status needs can be by providing signs of recognisition visible to others like special parking space only for company employees.

Compare both theories

After comparing about these two motivational theories used in lanka bell, founds that Herzberg two factors motivation theory can be the best theory Lanka Bell is following. Maslow's theory is basically based on the human need that includes five factors that he believes that a person can motivate. Hertzberg theories consist of hygienic factors and motivate factors. Maslow's theory is fairly basically and easily understands theory. It contain about needs of human throughout history. Hertzberg theory can be more complicated as this theory effectively can helpful more than Maslow theory because it recommend motivational factors. Hertzberg theory some factors like salary of employees is very helpful factor for every organization. Factors like job security in Maslow's theory obviously factor that can motivate employees. As well as its very important factor for every organization. Researches show that Maslow's theory is one of the famous theories that are used by many organizations and in another hand Hertzberg theory is using among few organization. As both theories are dependable on the environment that the employee work as there is chances that both theories not be effectible.

LO3.3 Select Suitable motivation theory for managers of B and evaluate its usefulness in carrying out their responsibility


McClelland's Theory

After go through different motivational theory view of a consultant found that the best suitable theory for lanka managers would be McClelland's theory, which based on three factors knows as; need for achievement, Need for power and need for affiliation. In view of consultant these factors will be very usefulness to the managers in lanka bell. There is lot of reasons behind this. Need for achievement is basically dependent on how a normal person can achieve something which is totally differentiate from others. In this point that lanka bell managers can be motivated as they can come up to achieve different things, obvisouly there will be lot of challenges among department mangers this can be very useful. Managers who follows needs of affiliation would always looking for good relationship with each other's and people are also very much interested to deal with them in right way, if we applied this to lanka bell managers it will give chance to build relation among their clients and other stake holders. Hence, this will motivate managers and it will be easy them to manage handle their roles.


This report is based on how Organizational structure and culture are most important factors of any organization. Both if these can influence the activities of the business. When we analyze the report it seems that the structure and culture of Portugal Telecommunication are much better compared to Lanka Bell. Also founds that both companies practicing different leadership styles in their company. Autocratic leadership style and beaurartic leader ship style is totally difference, hence this study's also shows some Management theory's and management approaches which can applied or used by both companies. These theories are very important for any organization to be successfully. This theory's helps organization to achieve both company's target and goals as easy as possible. Motivation theories are most important factor in working environment. Maslow's motivation theory's has been one of the famous theories but Hertzberg urges with some factors in Maslow's theory. There are so many factors which can influence working environment in both theories. Motivating employee is not enough for a company to survive; employees subordinate also needs to be motivated. This study's clearly shows that McClelland's motivation theory can be useful for manager in lanka bell. Leadership styles for both company has been explained and compare through its characteristics. Finally the impact that leadership style may have on motivation of employees of both companies has been further explained as it also founds that lanka bell leadership style is difficult to adopt.