Ufone Organizational Development

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Introduction of Organisation
PTML is a subsidiary of PTCL (Pakistan Telecom Company Limited), the largest operator in Pakistan. PTML was established to operate cellular telephony. The company commenced its operations, under the brand name of Ufone from Islamabad on January 29 2001.Since Etisalat took over PTCL in 2006, during the year as a consequence of PTCL’s privatization, 26% of its shares were acquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been handed over to Etisalat. In September 2006, Ufone selected Huawei to deploy the nationwide GSM network at a contract value of above USD550 million. Ufone adopted Huawei's new-generation GSM solution, including All-IP core network and BTS, to construct a GSM network covering 1,500 cities and towns of Pakistan. Ufone has a subscriber base of 20.23 million as of September 2010.  

During2006 Ufone successfully completed the network expansion of Phase 4 in existing as well as in new cities and towns which amounted to more than US Dollar 170 million. As a result the asset base of the Company has increased from Rs. 20 billion to Rs. 27 billion. Ufone adopted the policy of simplified tariffs with no hidden charges, which resulted in positive impacts on total subscriber base, Ufone currently caters for international roaming to more than 195 live operators across 119 countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal and Kuwait with lowest rates, featuring no security deposit and activation charges. GPRS roaming facility is available with more than 75 Live Operators across 59 countries. The Company has also been awarded a new License for providing cellular services in Azad Jammu & Kashmir and the Northern Areas. 

Organization structure
Organizational structure defines how job tasks are formally designed, grouped and coordinated. Ufone is a decentralized structured organization at branch level but overall the whole setup is centralized. The organizational structure is horizontal or lean. In this way flow of communication becomes very easy and simple. It is divided into different departments and each department has a head which take decisions. All departments are interlinked.

The concept of departmentalization is effectively practiced at ufone. All departments contribute to the overall goal of the organization. Ufone has 7 departments. 1. Finance
2. Marketing
3. Information technology department
4. Customer operations department
5. Engineering dept
6. Sales dept
7. Human resource dept.

Formal Structure or Informal Structure?
When a company wants to compete in innovation, it needs to maximize flexibility. Flexibility is maximized by aggregating work into larger, holistic pieces that are executed by teams of higher wages, high skilled workers. Giving the units their own support systems and decision-making authority to take advantage of local opportunities in regional or specialized product markets also enhances flexibility. Keeping in view of all these factors the structure of Ufone is designed i.e. the overall Structure of the Ufone is Divisional (More flexible and innovative). Mainly Ufone has four regions and within those regions the structure is functional .The decision making authority is centralized at the top but within the regions it is decentralized i.e. regional heads have to inform top management before making any decisions. This is what Ufone looks from the organizational hierarchy point of view. There are 7 different departments each headed by a Project Director. They report directly to the CEO. There are four BU (Business Unit) each Project Director is responsible for these eight divisions. BUs are divided geographically into three divisions: * BU North (Peshawar to Jehlum, including Islamabad)

* BU Central-1 (Gujranwala till Sialkot)
* BU Central-2...
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