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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 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 function, for example, in Directorate of Commerce, there are 4 (four) functions such as Customer Service Sub Directorate, Corporate Account Management Sub Directorate, Sales Sub Directorate and Marketing and Mobile Data Sub Directorate.
This structure is giving the supervisors or managers of each division good position to monitor and provide feedback to its subordinates. The Corporate Secretary Sub Directorate, Human Resources Management Sub Directorate and Internal Audit Sub Directorate is also part of the functions, however, it has direct contact to the President Director. Another function is connecting to each Area Managers to handle the regional offices that also have direct contacts to president director. In order to achieve its goals, cross-functional teams are usually developed to maintain and provide new services to the market.
For example, Marketing & Mobile Data Sub Directorate, Procurement & Logistic Sub Directorate, Network Support & Implementation Sub Directorate and Information Technology Sub Directorate are working together to maintain and provide services of mobile content management. 4. Organization Culture Organization culture includes the values, norms, rites, rituals, ceremonies, heroes, and scoundrels in the organization’s history (Champoux, JE 2006, p. 72). The general type of culture in Telkomsel is constructive. It value employees which set and accomplish their own goals.
Every employees are expected to set challenging goals, establish plans and pursue them with enthusiasm. The Telkomsel’s type of culture endorses normative belief associated with achievement which is pursuing standard of excellence. The physical and observable artifacts from Telkomsel’s culture are several awards and recognizition, such as the Best GSM Operator of The Year, the Indonesian Customer Loyalty Award in 2006 and many more. Other is from its working facilities, well-designed office space and high-speed internet that provided by Telkomsel.
There are four functions of Organizational Culture which is: organizational identity, collective commitment, social system stability and sense-making device. (Kinicki, A & Kreitner, R 2006). The following section will show how each of them has taken shape at Telkomsel: Organizational identity. Based on the yearly research conducted by SWA Magazine in 2007, Telkomsel noted as one of top employer in Indonesia. This show that Telkomsel’s organizational identity is people-focused. It values employee satisfaction and customer loyalty over corporate profits.
Every new employees are required to attend 10 days of company’s orientation to show what the new employees needs to learn to become an accepted organization member. For Telkomsel, employees come first, because if the employees satisfied, they will dedicate their work for the customer. Collective commitment. Telkomsel is committed to dedicate the best well-provide customer service to its customer with the slogan “So close, so real”. The customer service officers are well trained and friendly. Employees were encouraged to be friendly and work closely to exceed customer expectation.
The SWA Magazine reported Telkomsel was ranked number one in 2007 as the most valuable and the best telecommunication company that provide the best service in its customer service. Social system stability. Social system stability reflects the extent to which the work environment is perceived as positive and reinforcing, and the extent to which conflict and change are effectively managed (Kinicki, A & Kreitner, R 2006, p. 47). Each regional offices, department or division are given a budget for celebration of employees’ birthday and promotion.
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. Sense-making device. To maintain its leadership position, Telkomsel always seeks to take advantage of the best technology in order to improve the productivity of all its employees and the growth of its organization culture. It provides the latest gadgets to all their middle-level employee and continuous IT management-program to keep upgrading its employees’ skills.
It helps employees to understand the company’s intention to accomplish its long term goals. Employees come to understand that the company’s primary vision is to be the best primary national-wide cellular telecommunication provider with low-fare, best plans, best connection in Indonesia. Therefore, the employees must achieve exceptional performance, such as keep coming up with the new idea of product brand with provide the customer of low-fare and best service to compete again its competitors. In returns, the company reinforces will provide them with performance and service-based award.
The organization cultures will be discussed and identified more in the next section. 5. Motivation Being awarded as the Best GSM Operator of The Year, Best Innovative Products, Best Multimedia Services, the Best Indonesian Telecommunications Call Center, and the Indonesian Customer Loyalty Award in 2006 and close to 27 million active subscribers, the success of Telkomsel come from its well-trained and professional employees. These recognizitions are not far away from Telkomsel effort to keep maintaining and motivating its employees.
Motivation come from the working facilities and condition that provided by Telkomsel. Along with a very well-designed office space and high-speed internet, the company also provides employees with catering service that serve lunch for free at the office pantry. Office’s transportation also provided by the company in case any field trip business need to be done by any employee. 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.
Telkomsel has designed a well-planned, transparent and objective career path system for its employees. The career path system carry clear structure of merit pay, such as bonus plan and employee promotion based of employees’ performance. For example, Telkomsel working plan is divided by quarters each year, Q1 to Q4. Each quarter, the company will give out bonus to its employees. It is mean that each employee of Telkomsel will obtain five times bonus pay in a year; bonus pay for each quarter and holiday pay. This system is regulated by Telkomsel based on government legislation for Indonesian Labors and Workers Union.
The career path system, stated in the agreement between Telkomsel Workers’ Union and PT. Telekomunikasi Selular, carry full chapters of how the company will give salary, rewards, merit pay or promotion based on the employees’ performance. Therefore, anyone who works in Telkomsel will be sure their rights are protected by law and their good performances are accurately assessed and well compensated. 6. Conflict in Organization Looking at Telkomsel’s well managed organization, there is not much organization conflicts that could arises or emerge within the company.
Poor communication between department or division is one of the traditional conflicts that are mentioned when we gathered the information from interviewing one of Telkomsel’s employees. This lack of communication is a dysfunctional conflict, because it can hinder group performance, however, the poor communication between departments or divisions arise because of differences in functional orientation or goals. For instance, the lack of communication between marketing division and mobile data services division is caused by their functional differences.
Telkomsel’s marketing division function to communicate their product through event management and advertising, almost directly reaching the end user of Telkomsel’s product and service. Partner and vendors to organize and developing new value added services or content management for Telkomsel’s product. While actually these divisions has to communicate each other with current information that could develop company’s performance. 7. Technique in managing Conflict Based on what have been discussed above, Telkomsel organization’s structure is consisting of several different directorate.
Each directorate consists of several different sub-directorates that consist of several different departments. Besides yearly employee’s gathering, one of the simpliest techniques in managing conflict is by conducting once a week meeting to discuss every topic and current issues to keep everyone updated within department or division. One function to another is very dependable, even though they are not in the same directorate or division, their work is still connected each other very closely. For example: Mobile Data Service function is under Directorate of Commerce.
Mobile Data Service is working with external partners and vendors who want to have business in mobile content management, such as SMS (Short Messaging Services), Ringbacktone services, 3G and so on. In order for those partners and vendors to have direct connection with Telkomsel, Mobile Data Service have to work together with other functions from the same and even other directorate or division, such as: •Procurement & Logistic Sub Directorate; to open new agreement letter •Information Technology Sub Directorate; to set up technical connection. •Treasury Sub Directorate; to order to be able to manage billing and payment statement. Marketing Sub Directorate; to promote the services •Corporate Account Management Sub Directorate; in order to have work with them for public relation stuff, including for new product launching. These cross-functional teams’ regular meetings and communication is helping Telkomsel to minimize conflict that might occur within the organization. Each employee would be able to communicate, negotiate or bargain over current issues or topics. Other way to manage conflict is handled by Human Resources Management Sub Directorate in role of mediator, conciliator, arbitrator and consultant within the company. . 0 Conclusion Telkomsel is already in the correct culture by focusing its organizational identity on people or its employees in order to satisfy its customer. It has a flat organizational structure with cross-functional teams that minimize conflicts and increase commitment, loyalty and job satisfaction through good management of function. In conclusion, to maintain its positive growth and market leader position, Telkomsel must keep focusing on upgrading their human relation or employees issues by developing their organizational culture; therefore, they can achieve great customer satisfaction.