Telkomsel Organizational Design

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1. Executive Summary
The aim of this assignment is to determine better understanding in organization behaviour of PT Telekomunikasi Selular (Telkomsel). As a national-wide cellular telecommunication provider, Telkomsel in which the shareholders consist of two companies, which is PT Telekomunikasi Indonesia and Singapore Telecom Mobile, was the first telecommunications service provider that offers a 3G service. Its structure is developed as a divisional structure that consists of Directorate of Finance, Directorate of Commerce, Directorate of Operations and Directorate of Planning and Development. These divisions are divided again into several functions. The general type of culture in Telkomsel is constructive. Other is from its working facilities, well-designed office space and high-speed internet that provided by Telkomsel. It values employee satisfaction and customer loyalty over corporate profits. For Telkomsel, employees come first, because if the employees satisfied, they will dedicate their work for the customer. The customer service officers are well trained and friendly. Employees were encouraged to be friendly and work closely to exceed customer expectation. Telkomsel also reinforce its employees by given a variety of performance and service-based awards. Every year, Telkomsel will celebrate its birthday and conduct a nation-wide company gathering for its employees in the same time. These recognizitions are not far away from Telkomsel effort to keep maintaining and motivating its employees. Each division also conduct employee gathering every year resulting better communication and work-relationship within the division. Other main condition that also motivate the employees is the career path system that offered by Telkomsel. Looking at Telkomsel’s well managed organization, there is not much organization conflicts that could arises or emerge within the company. Telkomsel is already in the correct culture by focusing its organizational identity on people or its employees in order to satisfy its customer.

2. Company Background
Telkomsel is a national-wide cellular telecommunication provider. It is a subsidiary of PT TELKOM. Telkomsel shareholders consist of two companies, which is PT Telekomunikasi Indonesia and Singapore Telecom Mobile. Telkomsel began their operations service on 26 May 1995 and then became the first telecommunication cellular in the Asia that introduce rechargeable GSM pre-paid service and the biggest GSM provider in Indonesia with 53% of market share in the industry telecommunications and also with the large customer member about 44.5 million at the end of September 2006. In the same month, Telkomsel was the first telecommunications service provider that offers a 3G service. With headquarters in Jakarta and 10 regional offices across Indonesia, the company provides network coverage to over almost 80% of the population. It is also have a partner in 155 countries through the 268 international roaming so it is mean that everyone can use Telkomsel’s services everywhere and every times. Telkomsel has their own nationwide network dual band 900/1800 MHz GSM and internationally. Telkomsel offers both prepaid and postpaid plans, in the pre-paid they have SimPATI and Kartu AS and for postpaid they have Kartu HALO each of them have their own benefit and disadvantages. Telkomsel vision is to be the best primary national-wide cellular telecommunication provider in Indonesia and its mission is together with the shareholders and its partners, to be the primary solution provider in the cellular telecommunication industry and to reinforces value added for its investors, employees and the country (Telkomsel, 2006).

3. Organization Structure
Based on Appendix 1, Telkomsel’s organization structure is a flat organizational structure that has the distribution of authority and responsibility of decision makings to all managers at all levels. Telkomsel organization structure is developed as a divisional...
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