CHAPTER-I INTRODUCTION

1.1Background of the Study

At present, Nepal Telecom has two main issues which are in implementation phase, they are issuing of share to employees and restructuring of organization. Both these motions have got importance from the time of corporation to the company. The corporation got converted into company as per privatization policy. This policy has come in light to foster the communication sector. It has brought the competition breaking the prevailing monopoly of Nepal Telecom. Specifically, in this context the matter of restructuring the organization is too relevant and meaningful from the employee's point of view, organizational and shareholder's point of view. But the restructuring should be in such direction that would enhance the productivity, profitability along with motivation to employees. To increase the productivity, the one most important thing is to mobilize the human resources, to drive or induce them as per organization's willingness in order to get the job accomplished effectively and efficiently. As it is long-term strategy and this perspective most be in the way of getting favorable employee behavior; not in the way of imposing upon them. In Nepal, operating any form of telecommunication service dates back to 94 years in B.S. 1970. But formally telecom service was provided mainly after the establishment of MOHAN AKASHWANI in B.S. 2005.Later as per the plan formulated in First National Five year plan (2012-2017); Telecommunication Department was established in B.S.2016. To modernize the telecommunications services and to expand the services, during third five-year plan (2023-2028), Telecommunication Department was converted into Telecommunications Development Board in B.S.2026. After the enactment of Communications Corporation Act 2028, it was formally established as fully owned Government Corporation called Nepal Telecommunications Corporation in B.S. 2032 for the purpose of providing telecommunications services to Nepalese People. After serving the nation for 29 years with great pride and a sense of accomplishment, Nepal Telecommunication Corporation was transformed into Nepal Doorsanchar Company
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Limited from Baisakh 1, 2061. Nepal Doorsanchar Company Limited is known as Nepal Telecom by general public. Nepal Telecom has always put its endeavors in providing its valued customers a quality service since its inception. To achieve this goal, technologies best meeting the interest of its customers has always been selected. The nationwide reach of the organization, from urban areas to the economically non- viable most remote locations, is the result of organization efforts. . Definitely Nepal Telecom's widespread reach will assist in the socio-economic development of the urban as well as rural areas, as telecommunications is one of the most important infrastructures required for development. Accordingly in the era of globalization, it is felt that milestones and achievements of the past are not adequate enough to catch up with the global trend in the development of telecommunication sector and the growth of telecommunication services in the country will be guided by Technology, Declining equipment prices, market growth due to increase in standard of life and finally by healthy competition. Converting NT from government owned Monopoly Company to private owned, business oriented, customer focused company in a competitive environment, Nepal Telecom invites its all-probable shareholders in the sacred work of nation building.

Mission, Vision & Goal

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Mission
"Nepal Telecom as a progressive, customer spirited and consumer responsive Entity is committed to provide nation-wide reliable telecommunication service to serve as an impetus to the social, political and economic development of the Country"

Vision
"Vision of Nepal Telecom is to remain a dominant player in telecommunication sector in the Country while also extending reliable and cost effective services to all"

Goal
"Goal of Nepal Telecom is to provide cost effective telecommunication services to every nook and corner of country"

1.2 Research Issue

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Present era is the era of globalization. The world is getting so small due to globalization. Technology, innovation and emergence of the borderless concept in the field of investment and trade bring both opportunity and threat to the existing enterprises in the economy. The government of Nepal has adopted the policy of privatization in the light of economic liberalization and globalization. After the conversion of corporation into company, number of service provider has come in the market and they are in the way of getting better position in market. Up to this time frame, NTC possess the most part of market share but no tie remains same for a long in the field of investment. As Nepal is member of WTO, Nepali enterprises can reap the lots of benefits an grasp the opportunities but at the same there will be the threat of international business houses. So, it is now the necessity of the organization to find out its strength and weaknesses in order to cope with the opportunities and threat in the environment.

1.3 Statement of the Problem

The problem towards which the study is directed is to identify and analyze organizational structure and its effect on the company image and performance, also their effect on employee motivation and dedication towards work. It mainly looks the solution of the following points. 1. How can organization be restructured? 2. Has privatization brought change in organization structure? 3. How can restructuring enhance productivity?
4. What are the factors for missing in prevailing structure?

1.4 Objective of the Study

The main objective of the Study is
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1. To analyze the impact of organizational structure in NTC productivity.

2. To identify the lacking and deficiencies of NTC. 3. To determine the factor that reduces cost of an organization through restructuring.

1.5 Significance of the Study

NTC has been the highest tax payer in our country and the first company to start telecommunication in Nepal. Objective of the company is to provide quality service to the costumer with updating the technology. Its income is mainly through various services provided by the company such as mobile services, cdma, sms, and internet. Organizational structure can be divided into six groups which are responsible for the effective communication in an organization. It plays a major role in increasing the productivity of an organization. It clearly defines the span of control, limitations and authority of an employee. It segregates the job according to their nature and types which helps to carry out the daily operational activities of an organization. Higher authority can clearly assign jobs to their subordinates through effective line of control. Formalization binds the employee in a code of conduct designed by the organization.

1.6 Limitations of the Study The limitations of the current study are as follows.
1. This is a case study so we cant argue the findings to other situations too.

2. It is based on opinion survey and may not free from biasness. 3. The study is confined in Pokhara only.
4. Due to time constraint the study may not cover all the necessary facts.

CHAPTER-II LITERATURE REVIEW

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2.1 Conceptual Review

Formal and informal framework of policies and rules, within which an organization arranges its lines of authority and communications, and allocates rights and duties. Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management. This structure depends entirely on the organization's objectives and the strategy chosen to achieve them. In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions have varying degrees of autonomy. The essence of work specialization is that, rather than an entire job being done by one individual, it is broken down into a number of steps, with each steps being completed by a separate individual. Chain of command is an unbroken line of authority that extend from the top of the organization to the lowest echelon and clarifies who reports to whom.
Span of control indicates the number of subordinates a manger can efficiently and effectively

direct. The span of control is important because, to a large degree it determines the numbers of levels and managers an organization has.
Formalization refers to the degree which jobs within the organizations are standardized. If there

are explicit job descriptions, lots of organizational rules and clearly defined procedures covering work processes in organization When the correlated tasks are assembled together it gives the job and if the jobs get grouped together, the underlying basis for grouping the job is departmentalization.

2.2 Review of the Related Study

One broad study was done by Mr. Sandip Kumar Jha, employee of Nepal Telecom. The research title was Organization Structure of NTC. The study was based on the survey
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conducted in the company and his personal experiences. Results showed very consistent findings with theoretical assumption. Research identified six factors namely Specialization, Departmentalization, Chain of Command, Span of Control, Centralization and Decentralization, Formalization. Among these six, span of control was found the most effective and most stable. It shows less the span of control more effective and productive will be the organization. The research was an introductory attempt of scientific investigation on Nepalese general business environment therefore it has implication to students, researchers, policy makers, consultants and stakeholders.

CHAPTER-III RESEARCH METHODOLOGY

3.1Research Design
Present study pursues the case study research design. A case study is a fairly intensive examination of a single unit. Case study enables us to explore and understand problems, issues and relationship in particular situation. The source of data is interview, observation, annual report, articles etc.

3.2Sources of Data
Both primary and secondary data are used in this sturdy. For primary data interview was provided to the staffs of NTC. Some meeting was held with few staffs formally as well as informally. For secondary data, annual report, articles and cases were analyzed to facilitate the study. Some data were obtained from internet.

3.3Tools and technique

Questionnaire set was developed in an attractive manner to find out the information about the company. Microsoft word was used to prepare the report. Descriptive statistical tool such as mean, percentage are used for data analysis. Data were derived from the tables and graph available in internet, cases, articles and annual report.

Organization Structure
NEPAL TELECOM Board of Directors 8

MANAGING DIRECTOR Mr. Amarnath Singh REGIONAL DIRECTORATE Director - CRD, Birgunj Mr. Dev Narayan Yadav Director ERD, Biratnagar Mr. Shyam Sunder Yadav Director KRD, Sundhara Mr. Madhusudan Karmacharya Director WRD, Bhairahawa Mr. Amrit Prasad Shrestha Director Nepalgunj Mr. Khadga Basnet MWRD, Bahadur

CORPORATE OFFICE

FIELD OFFICE

DMD-Finance Mr. Karmacharya

Rameshwar

Director IT Directorate Mr. Lok Raj Sharma Director Telecom Training Center Mr. Bhagat Man Singh Pradhan Director Mobile Service Directorate Mr. Jeevan Ratna Shakya Director Wireless Directorate Mr. Nara Manandhar

DMD-Business Mr. Vishwanath Goel DMD-Development Mr. Kanhaiya Lal Gupta DMD Change Management DMD - Operation & Maint. Mr. Hiranya Kumar Bhattarai DMD,Company Secretariat Mr. Buddhi Prasad Acharya DMD-Planning Mr. Anoop Ranjan Bhattarai DMD - Human Resource Mgmt. DMD, Internal Audit Mr. Sudhir Prasad Aryal

Service Narayan

Director Satellite Service Directorate Mr. Shiv Bhushan Lal Director PSTN Service Directorate Mr. Bishnu Prasad Kasaju

Director FWRD, Dhangadi Mr. Bishnu Dhakal

CHAPTER-IV PRESENTATION AND ANALYSIS OF FACTS

Basics of organizational structure

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Simply organizational structure indicates how the job tasks are formally divided, grouped and coordinated. There are numbers of factor which should be addressed while designing the organization's structure. Designing organizational structure is specifically a management's job. If we count these factors they can be addressed as 1. Specialization 2. Departmentalization 3. Chain of Command 4. Span of Control 5. Centralization and Decentralization 6. Formalization

4.1 Work Specialization

The essence of work specialization is that, rather than an entire job being done by one individual, it is broken down into a number of steps, with each steps being completed by a separate individual. To some extent work specialization increases efficiency and productivity. But in some jobs it also brings boredom, fatigue, stress, low productivity, poor quality, increase absenteeism and high turnover. In such cases, productivity could be increased by enlarging, rather than narrowing, the scope of job activities. By giving a variety of activities, allowing them to do a whole and complete job and putting them into teams with interchangeable skills, they often achieved significantly higher output with increased employee's satisfaction. So, the management should understand the economy it provides in the certain types of jobs and problems it creates when it is carried too far.

4.2 Departmentalization
When the correlated tasks are assembled together it gives the job and if the jobs get grouped together, the underlying basis for grouping the job is departmentalization. One of the most
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popular ways to group activities is by functions performed. Jobs also are departmentalized by the type of product, geography, process, and customers. In our organization there is a need of R&D department to bring out the quality products and services by finding innovation. This department can find the way by which the whole organization could take the competitive advantages from environment.

4.3 Chain of Command

It answers question fro employees such as "To whom do I go if I have problem?" and "To whom am I responsible?" so it is an unbroken line of authority that extend from the top of the organization to the lowest echelon and clarifies who reports to whom. It comprises two complementary concepts: authority and unity of command. Authority refers to the rights inherent I a managerial position to give orders and to expect the orders to be obeyed. Likewise, unity of command preserves the concept of an unbroken line of authority. It states that a person should have one and only superior to whom he or she is directly responsible. If the unity of command is broken and employee might have to go with conflicting demands or priorities from several supervisors.

4.4 Span of control

It indicates the number of subordinates a manger can efficiently and effectively direct. The span of control is important because, to a large degree it determines the numbers of levels and managers an organization has. All things being equal the wider the span, the more efficient the
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organization. (Stephen P. Robbins). At present this key element has given a high priority in Nepal Telecom. As organization's services - increasing day by day, it becomes too large in shape and size. The global trend in recent years has been towards wider span of controls. They are consistent with recent efforts by companies to reduce cost, cut overheads, speed of decision making, increase flexibility, get closer to customer and empower employees.

4.5 Centralization and Decentralization

In some organizations top managers make all decisions and at other extreme there are organizations in which decision making is pushed down to the managers who are closest the action. The formal one is highly centralized and latter decentralized. If the top management makes the organization's key decisions with little or no input from lower level personnel the organization is said centralized. In contrast the more that lower level personnel provide input or are actually given the discretion to make decisions the more decentralization there is. In large companies, lower level managers are close to 'the actions' and typically have more detailed knowledge about problems than top managers. Consistent with recent management effort to make organization more flexible and responsive there has been a marked trend towards decentralizing decision making.

4.6 Formalization
It refers to the degree which jobs within the organizations are standardized. If there are explicit job descriptions, lots of organizational rules and clearly defined procedures covering work processes in organization, it can be said there is a high formalization. If a job is highly
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formalized, the job incumbent has a minimum amount of discretion over what is to be done, when it is to be done and how he or she should do it. Employees can be expected always to handle same input in exactly the same way resulting in a consistent and uniform output. So, the management should find which job needs what degree of formalization.

4.7 Findings
1. No all tasks are well coordinated to give a specific job. Few jobs are well defined; they possess job description and job specification. But in practice the job is not placed by the right employee, they lack clearly defined job specification, job description and systematic job evaluation. What is to be performed by whom- it is not clear.
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2. There must be the common basis for grouping the job in order to form a department. In Nepal Telecom, jobs should be departmentalized by the type of product, geography, process and customers. A missing department in Nepal telecom is R & D department. 3. There is a lack of clear cut line of authority of who reports to whom. 4. There is no any specific span of control in our organization. But one thing is clear that how many levels and managers our organization has. Our company has followed the quite traditional technique for granting the authority. All power and authority are resumed by top level and decisions are made by them. But the lower level manager are those people in who are "close to action" and face problems with customer as well as employee, hence, they must be participated in decision making. 5. No all jobs are formalized in order to get the standardized one. 6The Company should clearly state which jobs are core and which are secondary one. The non core job should be identified. 7. Team work, work group and group dynamics should be clearly defined. It needs to be practiced for better outcome. 8. Corporate Restructuring as a solution.

CHAPTER-V SUMMARY, CONCLUSIONS AND RECOMMENDATIONS 5.1 Summary

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It is a long term strategy. Once it has been adopted, it is irrevocable for a long duration. It is adopted not only to change the structure but in order to foster productivity enhancing efficiency, increasing motivation and lowering the absenteeism and employee turnover. It leads to cut down the overheads without deteriorating the quality of service. Rather it will increase the customer satisfaction and customer delightment. It addresses all the missing in prevailing structure and finally finds company in a new shape. In Nepal telecom, restructuring is an hot issue, when two or more employee gather they generally discuss about it. This "restructuring" has got importance mainly for one issue whether they get one promotion for upper level or only the people at top level get the chance. But only the issue of increment in level is not a basic factor for it. So, it should cover the all dimension of organizational structure to fulfill the motive of corporate restructuring. Hence, it should cover the all levels, departments and directorates including training centre. It should fill all the gaps and correct the deviations.

5.2 Conclusion

As mentioned earlier, our company will have its journey through a restructuring process-a longterm strategy. Organizational restructuring has simple meaning of thinking of existing organizational structure, finding the lacking, deficiencies, drawbacks, outdated frameworks and rethink to remove all those by getting policies and plans for new structure. In this way"
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Restructuring" refers to the dismantling or replacing the existing structure by relevant, goal oriented, competitive structures satisfying the people within the organizations. The great challenge to the management is to address the all key elements for designing the structure. The management should consider the basic element such as span of control, formalization, decentralization etc. whose status is somehow contradictory and controversial in the prevailing structure. The management should adopt that structure which will reduce the cost, cut the overheads and finally increase the productivity making the employees morale high. Company should be able to detect the basic and non basic job of an organization, so that emphasis can be given to core job.

5.3 Recommendation

An organizational structure is the pattern or arrangement of jobs and groups of jobs within an organization. This pattern pertains to both reporting and operational relationships, provided they have some degree of permanence. The jobs should be well defined; job description and job specialization should take care properly. For any job right employee should be selected to complete the task systematically. Jobs should be departmentalized by the type of product,
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geography, process and customers. That will lead to customer satisfaction and retention.R& D department should be established in NTC as it is the technology based industries which requires much innovation. There should be a clear line of authority to perform a job effectively. Authority is centralized it needs to be decentralized so that power is granted to all level of managers. Currently power is on the hands of top management only. All the jobs should be formalized to get standardized outcome. Team work, team esprit, group work should be emphasized to practice better outcome. Corporate restructuring should be done.

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