DiGi Demonstrates Organizational Structure and its Importance to a Corporation.

http://www.thestar.com.my/Business/Business-News/2013/11/12/DiGi-revamps-organisational-structure-management.aspx

Most consumers never come in direct contact with the entity behind their favourite and most essential products. In the case of telecommunications, a service we use almost every minute of every day, it is interesting to study how organizational structure actually affects the consumer experience.

DiGi, is one of the largest cellular providers in Malaysia. The article attached discusses how the company looks to “re-vamp” its organizational structure, so that the company is able to provide a better service to its customers. This policy, effective in the start of 2014 aims to re-shuffle current leadership and create a new division. The image below depicts two types of  organizational structures.

DiGi’s latest move makes it more like the wider-base model, meaning that there will most likely be a shorter chain-of-command between leaders and employees. This will promote efficiency– due to shorter chain as well as more specialization in tasks. This also fosters closer relationships between employees and their leaderships. Some criticism of Organizational structure A, is that as time goes on, employees feel demotivated and more alienated from the core mission of the company and its value statements. Thus, I believe this move from DiGi is a positive one, and it remains to be seen if DiGi customers will ever feel a difference in approach translated into their lives.

           Organizational Structures 

 


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