Principles of management report


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Principles of management report

  1. 1. Rennes International School of Business ESC RENNESExecutive Master of Business Administration EMBA COHORT 1 (2003 - 2004) Principles Of Management Conducted by: Dr. Donald Minday Principles Of Management By Magdy A. Sattar May, 2003 Cairo, Egypt
  2. 2. TABLE OF CONTENTSExecutive Summary IIIntroduction & Objective IIIChapter 1. Presentation of Menatel 2 1-1 What Is Menatel 2 1-2 Menatel Vision and goals 2 1-3 Menatel Structure and Organization 2 1-4 Delta Branch 3Chapter 2. General Management Issues 7 2-1 Management 7 2-2 Managerial Skills and Roles 7 2-3 Organization Culture 8Chapter 3. Planning 10 3-1 General 10 3-2 Objectives 10 3-3 Strategy 10Chapter 4. Organization 13 4-1 Personal Organization and Time Management 13 4-2 Delegation 13 4-3 Structure 13Chapter 5. Leadership 16 5-1 Theory 16 5-2 Decision-Making 16 5-3 Motivation 16 5-4 Communication 17 5-5 Power and Politics 17 5-6 Conflict Management 17 5-7 Change Management and Innovation 18Chapter 6. Controlling 20 6-1 Preliminary Controls 20 6-2 Steering Controls 20 6-3 Feedback Controls 21Chapter 7. Conclusion 23Chapter 8. Recommendation 25Annexes 27 1. Menatel Organization Chart 27 2. Map of Delta Region 28 3. Map of Menatel distribution In Delta 29 4. Delta Branch Organization Chart 30References 31EMBA Cairo IRennes International School of Business
  3. 3. EXECUTEVE SUMMARYTo sum up, this report deals with the practical application of management generalprinciples taking for example, Menatel –a joint stock company invest in payphonesbusiness – specially, dealing with my own experience as the Delta Branch manager.The environment affects the branch management where it is located. A matrix formcorresponding with functional directors at the head office manages it. As a branchmanager, I am responsible to manage the branch team in accordance with thecompany strategy to achieve the planed objectives of Menatel, concerning thecommercial, production and maintenance aspects.Management as a technical term has a varying definitions from different viewpoints.The manager‟s personality and surrounding elements, such as co-workers, superiors,organization structure and organization culture, affect his success at full filling hisrole effectively. Planning, organization, leadership and controlling are the mainprinciples of management. A branch manager is to achieve these functions inaccordance with his own skills, the teamwork‟s nature and the organization system asa whole.Planning, as a term includes identifying goals, objectives, methods and resourcesneeded to carry out the tasks assigned. Delta branch is managed by objectives set in amonthly plane- along with some agreed upon backup plans. This monthly plane mustmeet with general one emanating from Menatel‟s strategy and objectives concerningproduction, commercial and other aspects of business.Organization is the use of resources to enhance goals in the optimum way. Time andself-organization are the most important topics to me in achieving successfulmanagement. Delegating certain tasks to specific and proper persons is one of themethods I use to manage, motivate and coach my staff. The delta branch is organizedas well by a certain flexible structure, that of four sectors, each with assigned tasksworking together to reach profitability to business.A third principle of management is leadership policy and style. Democracy withdiscipline and commitment is my style to lead my team efficiently. Internal andexternal communication of the branch is Avery vital aspect of successful leadership.Management conflicts either in-between staff or with other managers are one of thedaily activities of the branch manager which are solved quiet smoothly in most cases,so, new procedures, some changes in business divisions and training plans for staff aretaken to reach innovation and more motivation to move ahead.The fourth, and last principle of management is controlling. That is monitoring andadjusting the resources to achieve goals efficiently and effectively. That is howMenatel could reach its unique and highly strict terms of material and equipmentsquality. In delta branch, controlling is fulfilled in the three main objectives,production, commercial, and maintenance by monitoring, following up or progressingreports and adjusting performance of the branch members. At last Menatel being acentralized organization, all feed back reports are related and generated by head officeand the functional directors. Thus, annual reports are given out to improve weakpointes and reach maximum management success.EMBA Cairo IIRennes International School of Business
  4. 4. INTRODUCTION & OBJECTIVEThe purpose of this report is to relate the principles of management covered in theseminar to my professional situation as Branch Manager in Menatel. The objective isto analyze the management principles in Delta branch as a sample, in light of theconcepts that have been covered or what is to be the most relevant points with respectto general management issues, planning, organizing, leadership, and controlling. Iwill try through the coming chapters to meet the objective putting on an auditor hat.Despite the difficulties of how the subjects are highly integrated and interlocked, andall the main titles are interlaced, I will try to present this paper in short and simplesentences. Brief definitions to some terms will be inserted in order to have good andclear communication.As, for the period starting from 1st of March till 30th of June 2003, in which theeconomic situation in Egypt was facing obstacles, such as the local currency floating-policy and the fluctuation & devaluation of the exchange rate of the local currencyagainst the foreign currency, that affected the status of firms and institution‟s positionin the Egyptian market, consequently the whole economy, and the businesscommunity climate those days was shaded with uncertainty and its decisions withcaution. In Menatel we have frozen every thing. In my report I shall bypass thisperiod.EMBA Cairo IIIRennes International School of Business
  5. 5. EMBA Cairo 1Rennes International School of Business
  6. 6. 1. PRESENTATION OF MENATEL1.1 WHAT IS MENATELMenatel is a joint stock company under investment low number 8/1997 registered in1998 under number 314030. Menatel is granted a ten years; renewable license, toinstall, operate, and manage a telecommunication network of at least 33,000 publicpayphone. Menatel is determined to achieve this target by the end of 2004. Egyptianshares are 51% and foreign shares are 49%. France Telecom (FCR) “providingMenatel with the know-how technology and management” holds the main foreignshares, which is 44 %. The main Egyptian company with 18% share is the NationalBank of Egypt (NBE).1.2 MENATEL VISION AND GOALSMenatel vision is to be the leaders in Egypt in the field of public payphone service,through achieving our goals which are exceptional customer satisfaction, inspired,innovative and empowered employees, and superior financial results.1.3 MENATEL STRUCTURE AND ORGANIZATIONWith a centralized management style Menatel structured into five main divisionsheaded by corresponding Director and five Branches allocated all over Egypt, to formsimple flat functional organizational structure. (Annex I)1.3.1 TECHNICAL DIVISIONThe objectives for this division are:1-Payphone-management system2-Payphone installations3-Laboratory & technical help desk4-Maintenance supervision5-Payphones maintenances.6-Value added services development.7-Subcontractors coordination8-Branches management1.3.2 MARKETING & COMMERCIAL DIVISIONThe objectives for this division are:1-External communication2-Advertising3-Payphone location determination & authorization4-Sites owner management5-Cards direct distribution management6-Cards indirect distribution management7-Telecome Egypt relationship (JWC)8-Customer hot line9-Commercial reportingEMBA Cairo 2Rennes International School of Business
  7. 7. 1.3.3 ADMINISTRATIVE & FINANCIAL DIVISIONThe objectives for this division are:1-General reporting & payments2-Accounting & balance sheet3-Business plan & budgets4-Billing invoices & suppliers5-Cach & contract management6-Internal network management7-Recruitment & training8-Payroll & salary policy9-Social, litigation, and legal matters1.3.4 LOGISTIC DIVISIONThe objectives for this division are:1-Security management2-Premises management3-Purchases4-Custom clearance5-General procurement6-Warehouse7-Card distribution8-Transportation9-Vehicels management1.3.5 BUSINESS DEVELOPMENT DIVISIONThe objectives for this division are:1-Handel assignments and projects to improve organization performance2-Improvement of the interface with major suppliers3-Tuning of HR tools4-Defining and building major business indicators5-Managing auditor1.3.6 MENATEL BRANCHESMenatel established five branches allocated all over Egypt, (Alex. And north cost,Port Saeed and Saina, Delta, Middle Upper Egypt and New valley, South UpperEgypt and Red Sea. The objective for all the branches is to achieve all Menatel fivedivision‟s objectives through the matrix and centralize Menatel organization as per thebranch assigned area.1.4 DELTA BRANCH1.4.1 ENVIROMENTThe green triangle occupying the north of Egypt‟s map we call it Nile Delta (annex 2),as it occupies the landscape in which the two branches of the Nile (Damiatte andRasheed) flows with all their sub-branches. This landscape occupies 16411Km.*,divided into 6 governorates, 31 City, 45 Town and 3000 Village and small village,EMBA Cairo 3Rennes International School of Business
  8. 8. shaping a percentage of 30% urban and 70%rural. Delta population is 20 Million theirmain source of income is agriculture and some small industries related to it. There is ahigh percentage of illiteracy among Delta population especially females, which isconsidered a great obstacle on the way of social and economical development.1.4.2 OBJECTIVE.Delta branch objective is to install, operate, and manage a telecommunication networkof 4170 public payphone by the end of 2003 all over the assigned area, most of thisarea is rural inhibited by more than 20,000,000 people, 33 % of them inhibit urbanand the remaining inhibits rural. (Annex 3).1.4.3 ORGANISATIONIn a centralized management environment, the branch manager in the matrix heads thebranch organization with functional managers in the head office. The branch manageris responsible to manage the branch team to meet the objectives planned by MenatelManaging Director in accordance with company strategy and guidelines given by thefunctional directors. The branch team is organized in a simple flat structurecorresponding to the nature of the activities, which are technical activities(production, maintenance, and Payphone Management System “PMS”), commercialand customer service activities, financial and administrative activities, and finallypublic relations and logistic activities. As for the sales team they are supervised by alocal sales supervisor who is reporting technically to Menatel cards distributionmanager and administratively to the branch manager in matrix organization (annex 4).1.4.4 RESULTS COMMERCIALThe commercial results in the branch, putting into account the branch situation andenvironment is considered very good results, the charts bellow show the commercialprogress in the last four years till the end of July 2003. Net Sales Million 4.5 7.6 7.9 LE  No. Of Location 1.4 2000 2001 2002 2003 Location 2237 1982  Line Return 1481 427 2000 2001 2002 2003 Line 4158  Total Revenue 3384 458 1795 2000 2001 2002 2003EMBA Cairo 4Rennes International School of Business
  9. 9. Revenue Million 25.5 41  Cards Net Sales LE 27 8 2000 2001 2002 2003 PRODUCTIONExcellent results achieved by the branch in production activities, the charts bellowshow the production progress in the last four years till the end of July 2003. Location 800 1600  Civil Done 750 120 2000 2001 2002 2003 1650 Booth 600  Booth installed 780 75 2000 2001 2002 2003 Location 800 1600  PP In Operation 750 120 2000 2001 2002 2003 MAINTENANCEThe maintenance results was not as good as targeted to be, changing maintenancesupervisor and re-organizing the maintenance team the results improved as the chartsbellow show the last five months till the end of July 2003. 96.8 Percentage 95.5 96.7  PP Q.S. 96.2 96.2 MAR 03 APR 03 MAY 03 JUN 03 JUL 03 98.1 Percentage  Booth Q.S. 97.2 97.1 97.3 97.4 MAR 03 APR 03 MAY 03 JUN 03 JUL 03  Cleaning Q.S. 89.3 Percentage 91.2 90.1 90.4 88.1 MAR 03 APR 03 MAY 03 JUN 03 JUL 03EMBA Cairo 5Rennes International School of Business
  10. 10. EMBA Cairo 6Rennes International School of Business
  11. 11. 2. GENERAL MANAGEMENT ISSUES2.1. MANAGEMENTWhat is management? The term “management” has different senses, traditionally theterm “management” refers to the activities involved in the four general functions(planning, organizing, leadership, and controlling or coordinating) these fourfunctions recur throughout the organization and are highly integrated. Another view“management” is getting things done through others. Yet another view“management” is to support employee‟s efforts to be fully productive members of theorganization. Most of the employees refer to the term “management” as the group ofpeople (executives and other managers) who are primarily responsible for makingdecisions in the organization.2.2. MANAGRRIAL SKILLS AND ROLESA successful management depends on a lot of things, the manager personality andbehavior, his superior, subordinate, co-workers, the organization culture and structure;all of this affects the four main functions of management (planning, organization,leading, and controlling). In my case I am to coordinate the efforts of individuals fromdifferent functional departments in a matrix form. My role and responsibilities aredetermined as follows:1-Represent Menatel in my area2-Responsible for improving the revenue by coordinating aspects concerning: -Maintenance, cleanliness and quality of service of the existing payphones -The deployment of new payphones in appropriate locations -The cards distribution in coherence with the payphones locations3-Preparation of the regular reports to reflect an accurate image concerning all theactivities in the area covered by the branch4-Problem solving of any occurrences that might affect the branch‟s activities5-Handling the resources (personal, budget, equipments) allocated to the branch6-Follow-up market changes7-Suggest new ideas related to the market that might be useful for the company aswell as for other branches8-Solve any problems pertaining branch‟s staff and report back to the head office9-Establishing good contacts with exchange managers and governmental peoplewithin the area covered by the branchAlthough my responsibilities are determined they still may not be carried out asintended to, as not all the managers are skilled enough or have the potential to workwithin a matrix organization, and being an engineer -myself- in the field oftelecommunication my expertise is mainly in technical issues, and according to MyersBriggs Type Indicator (MBTI) I am introvert, sensing, thinking, and judging. I amsurely in need to develop my conceptual skills. As for the staff, with the professionalhelp of the H/R department and my recommendations we are executing a training planto develop the skills required to achieve Menatel objectives.EMBA Cairo 7Rennes International School of Business
  12. 12. 2.3 ORGANIZATION CULTURECulture is the system of shared values, beliefs, and behaviors that gives a companyidentity and “atmosphere”. In delta branch, as in all Menatel, we have a strongculture, which inspired, innovate, and empowered all Menatel employees. We havevalues, such as customer first, integrity in all we do excellence through quality andrespect for others. In order to achieve total customer satisfaction we anticipate,perceive, fulfill and exceed our customer‟s needs and expectations. Menatel service isavailable all over delta area even in small villages and poor locations. In all our dailyactivities we individually and collectively use Menatel quality standerds to achieveexcellence as a branch. As Delta branch is the number one branch in productiontarget, for the last three years we have achieved our annual target two to three monthsprior to schedule. We care for our branch, our work, and our customers as well as wecare for each other. But what distinguish the branch culture are organization anddiscipline. The team in delta branch is known by its organizational and disciplinalbehaviors.EMBA Cairo 8Rennes International School of Business
  13. 13. EMBA Cairo 9Rennes International School of Business
  14. 14. 3. PLANNINGSimply planning is selecting priorities and results and how those results will beachieved. It includes identifying goals, objectives, methods, resources needed to carryout methods, responsibilities and dates for completion of tasks. Such as strategicplanning, business planning, project planning, staffing planning, advertising andpromotions planning, etc.3.1 GENERALDelta branch is managed by objectives, a monthly meeting in the first of each monthattended by the branch manager, production engineer, maintenance engineer, PMS(payphone management system) engineer, and the commercial agent to define andanalyze last month results and achievements, the needs and resources (people, time,and equipments) of the branch for this month in order to plan and schedule the processin which we shall achieve the monthly target. At the end of each meeting we have asmall exercise, we assume different scenarios or cases, or try to find different answersto the question “what if??” in order to have a back-up plan; normally we end up withtwo or three back-up plans, to the planed process agreed upon.3.2 OBJECTIVESThe branch objectives are clear, specified, and challenging. Delta branch is assignedto put 4179 payphone by the end of year 2003 with quality of service 97 %. Toachieve these objectives we are to1-Cover all delta area and put payphones everywhere needed.2-Have top technical service quality3-Open point of sales around each payphone and in public areas elsewhere4-Obtain Menatel average revenue5-Maintain Menatel imageThe branch team is responsible along with the branch manager to set the branchobjective, which emanates from Menatel objective, by which the branch teamdetermine a monthly measurable, challengeable, but not impossible objective. Theteam are responsible for generating a reporting system (weekly and monthly) tomeasure and test the whole operation process, they know exactly what to do and whatthey are aiming to as they are up to their responsibilities to achieve the objective theyhave shared in setting it, by this way they are motivated and enthusiastic about theirjobs.3.3 STRATEGYMenatel `s strategy is that to ensure payphones wherever needed and reachable pointsof sales distributed around our pay phones to ensure an effective availability to ourcustomers. As for the technical services needed we are targeted to achieve totalsatisfaction to our customers by achieving service quality not less than 98%, also byresponding to their needs (information, cards, and P.P. request‟s) through our welltrained employee. This strategy is passed clearly to every employee in MenatelEMBA Cairo 10Rennes International School of Business
  15. 15. As for delta branch‟s strategy it emanates from Menatel`s and it is implemented bythe branch staff in a way responding to the region needs and culture. Also this strategydidn‟t experience major changes except lately the increase in the plan of payphones toreach up to 33000 PP.EMBA Cairo 11Rennes International School of Business
  16. 16. EMBA Cairo 12Rennes International School of Business
  17. 17. 4. ORGANIZATIONOrganization or organizing resources is to achieve the goals in an optimum way, suchas organizing new departments, new activities, human resources, office and filesystems, re-organizing businesses, etc.4.1 PERSONAL ORGANIZATION AND TIME MANAGEMENT„Time is life „this simple definition of time explains every thing about time meaningand how important it is for us to optimize the use of time properly. Because of this,time management or self-management is one of the important topics in managementand maybe the key to any success. As for me, personal organization and managingtime is the core of my daily work through determining and categorizing my priorities,knowing what to do and when to do it, filtering my calls, mails and visits through mysecretary, using annual planer, delegate tasks and also having a filing system all thesetechniques to manage time and organize my work.4.2 DELEGATIONIn Delta branch one of the important tools I am using is delegation, in order tooptimize my use of time and to coach and motivate my team. For the branchorganization structure I have delegated specified tasks per activities to the properpersons through assigned missions for each one of them, I have one engineer per eachmain technical activities (maintenance, production and PMS.), the commercial agentfor commercial tasks (line request, chose locations), the accountant for all financialand administrative tasks. Each one of them has the power and authority to achieve hisobjective with the quality and quantity needed and on time. Also I am supporting,guiding and coaching them all the way till the end of the assignment.4.3 STRUCTUREDelta branch activities are distributed among the staff based on one target set byMenatel – by its four sectors (technical-commercial-financial and logistic)- that is toexecute the assigned tasks efficiently to achieve profitability to the business.The commercial agent along with the customer service representative is a teamassigned to follow up and execute all commercial activities such as choosing goodlocations, request payphones lines, analyze the average revenue and on top of it attendto customer needs and requests to ensure customer satisfaction.The three engineers along with a team of technician and cleaning controller areassigned to execute efficiently all technical activities. Such as follow up the qualityservice of the network in the region to achieve 97% Q.S., follow up cleaning andbooth maintenance, follow up all sub-contractors activities (civil work, boothinstallation and maintenance, cleaning). Also to follow up all PMS activities such asnew installation, updating and downloading new software, ensure successfulcommunication (the DUMP) between the main sever PMS 300 and all other PMSsinstalled in every exchange in the region.EMBA Cairo 13Rennes International School of Business
  18. 18. The accountant along with the secretary is assigned to follow up and execute allfinancial and administrative activities. Such as: monthly and quarterly inventory (subcontractors store, sales custody and customer service representative custody), all banktransactions, employees expenses claims, branch daily attendance reports, branchneeds and supplies and accurate filling for all branch correspondences in and out.The P.R. team is assigned to follow up and handle all branch relation withgovernmental institution or representatives such as Police stations, city councils anddistricts. Also they are in charge of all logistics activities following up with the H.Q.Sales force are supervised by one sales supervisor reporting directly to the CardDistribution Manger in H.Q. the team target is to cover efficiently the whole region.All are reporting to the branch manager in matrix with a functional manager in theH.Q. and it depends on the functional manager and the corresponding divisiondirector whether it is a weak or strong matrix.EMBA Cairo 14Rennes International School of Business
  19. 19. EMBA Cairo 15Rennes International School of Business
  20. 20. 5. LEADERSHIPLeadership or leading is to set direction for the organization, groups and individuals;more important is to influence people to follow that direction (vision, values, missionand goals). As for teamwork, both leaders and managers should be represented, inorder for this group to perform as an efficient and effective body.5.1 THEORYBy the end of 2001 Menatel have had a leadership change; a new Managing Directorassigned by France telecom is on board. The wheel of Menatel success story is aboutto change direction. Depending on his intelligence, and self-confidence, the new MDvision was “It is time to change”. He started to communicate different terms likeMenatel profit not Menatel revenue, effective with efficiency, managing by projectsnot by centralization. He has taken big steps in directing the organization towards hisvision, he implemented a new division “Business Development Division” to handleassignments and projects to improve organization performance, and he also started acomplete training plan to all Menatel staff to insure that Menatel will go through thechanging process smoothly with the effectiveness and efficiency required in thisstage. As for delta branch group they are directed by-me- the branch manager. Ibelieve that leadership depends on the situation, the power I have, me-my teamrelations and the tasks structure. There is no such thing as the best leadership style;leadership needs to be adaptive that is why my style depends on my subordinates‟capabilities. Being organized and disciplinal- as I am- increases my team performancequality and efficiency.5.2 DECISION-MAKINGBelieving in democracy along with discipline I share decisions with my team. In ourregular meetings- monthly, weekly, or even daily if necessary- we identify andanalyze all characteristics of a problem (volume, value, time, cause.), get all theinformation needed, develop and evaluate alternative, analyze them and then decidethe most effective alternative we have, after deciding we implement the decision withthe available tools and resources, during the implementation we monitor theperformance, measure the achievements, and adjusting the process if needed. In allour decisions we follow the analytical style, which I believe it to be the mostappropriate style.5.3 MOTIVATIONFor the time being the staff in the branch (and may be in all Menatel) are notmotivated as they used to be. Knowing my staff characteristics active, hard workers,responsibility- seekers, initiative and have the need for achievements, I believe thatthey are not motivated as they have no challenging objectives to achieve in additionalto the fact that the organizational structure in Menatel have no room for promoting. Sothe problem is traced to the fact that the staff need for achievements and careerdevelopment is not satisfied.EMBA Cairo 16Rennes International School of Business
  21. 21. 5.4 COMMUNICATIONTo motivate people you have to communicate with them, to control people you haveto communicate with them, to influence people you have to communicate with them,to manage people you have to communicate with them. As communication is the wayto link people, In the branch we communicate via all methods of communications(Verbal and Orals) and in all directions, but the most important aspect of ourcommunications inside the branch is how we listen to each other and how we provideour feedback to each other in order not just to communicate but to have effectivecommunication between each other, this makes the branch`s organization flexible andorganic. As for the external communication, the branch is in link with two main ends Menatel(H.Q. and branches) and Menatel customers. For Menatel the branch staff is on dailybasis connected with the other branches or the H.Q. to control objectives andcoordinate the branch daily activities. For Menatel customers we communicateMenatel image to the customers in a way that benefits Menatel objectives. A noisesignal is detected only when the branch communicates with commercial divisionconcerning the daily follow up of the sales reps. Both ends of this line ofcommunication are not listening to each other any more, in a trial to avoid any moreconflicts5.5 POWER AND POLITICSThere are two main reasons for the high power distance culture, which distinguishesMenatel‟s style of management, which appears in formalities, titles, and less interaction between staff. These two reasons are the French style of management importedfrom (France telecom) And the Egyptian business community in which Menatel isbased and from which Menatel is recruiting its staff.In delta branch this high power distance culture is implemented in a way –my way-As I have been vested the legitimate authorities to manage the staff in delta .I use boththe culture of the organization in formality, tittles and a bit limited social interactionwith the staff along with my personal skills in discipline accuracy and sense of duty Itry to communicate to my staff the image of a firm but a fair mangerAs for politics, when Menatel first started 5 years ago till now it had a measurable andclear objective, which is to install, operate and manage a network of pay phonesNow Menatel`s staff all in all is no more than 400 employee in H.Q. and branches allof them is putting this target ahead of them and their annual appraisal is detectingmainly how much they contributed towards achieving this target. This is mainly whypolitics behavior cannot be traced. As actions speak better than words or in Menatelcase Productivity speaks for itself.5.6 CONFLICT MANAGEMENTIn a matrix organization environment such as Mantel‟s, conflict is one of the aspectsof the branch manager‟s work activities either by facing or resolving. In Egypt mostEMBA Cairo 17Rennes International School of Business
  22. 22. managers are not familiar with the new style of management and for most of them theone-man show style is the core of any management style. In delta branch I have twokinds of conflicts, staff conflict among each other and my conflict with otherfunctional managers. Most of the staff conflicts are solved using a compromising wayas short-term solution; in parallel with short-term solution I am using my authority asbranch manager trying to have a collaborative or integrative solution through internalrotation and job redesign. As I consider people as assets, as people are the key to anymanagement success. As for my conflict with the functional managers, I think it ismainly due to the fact that most of the managers are not familiar with the matrix styleof management, I believe that this kind of conflict is healthy one, it encouragesmanagers to be creative and challenge their innovation. The only unsolved conflict isthe one between all branch managers and the cards distribution manager overmanaging the local sales force in the branches. This conflict is caused by personalvariables, as the cards distribution manager is an authoritarian leader type and veryaggressive person when it comes to confronting.5.7 CHANGE MANAGEMENT & INNOVATIONSince 1989 when Menatel started till now, one main strategic decision has been takenin 2001 that is to increase our target by 10.000 PP reaching up to 30.000PP. One mainobstacle appeared at the time, which is the technology needed to achieve the target.As the installed payphone management system (PMS) `s capacity could notSatisfy this stage needs efficiently. Menatel `s management has taken another steptowards achieving its target that is to change into more modern technology whichsatisfies the needs of the stage. The new technology (PMS 300) has been identified asthe answer to our needs and it called for some alteration in premises concerned suchas laboratories and warehouses also people concerned such as engineers andtechnicians. Providing premises with the equipment, people with the skills needed tobe adapted to operate the new technology; Menatel was ready to achieve its target.Now due to the fluctuating economic situation and according to Lewil 3 steps ofchange Menatel is now in the unfreeze stage. We identified the problem (decrease ofrevenue), developed and communicated new model (effectiveness more thanefficiency) finally identified the main obstacle for change that is people resistance tochange.With procedures such as redesigning some jobs, implementing new division in thebusiness and executing training plan for the staff to enhance their skills Menatel hastaken some steps towards the next step of change that is Movement.EMBA Cairo 18Rennes International School of Business
  23. 23. EMBA Cairo 19Rennes International School of Business
  24. 24. 6. CONTROLLINGThe term “controlling” means coordinating the organization‟s systems, processes andstructures to achieve effectively and efficiently the organization goals and objectives.This includes on going collection of feedback and monitoring or adjusting of systems,processes and structures accordingly. Simply controlling is monitoring and adjustingresources and processes to achieve goals and objectives in a highly effective andefficient way.6.1 PRELIMINARY CONTROLSIn Menatel we allow no deviations in terms of quality through controlling all ourmaterial and equipments from suppliers (local or over seas). One of the main tasks ofthe technical team along with the logistics team is to ensure that all the equipmentsand materials used in Menatel math exactly Mantel‟s quality standards. As Menatel has its unique dimensions and technical specifications of all theequipments and materials used (Payphones, cards, cables, booths, civil work…).Menatel even have its unique color (certain shade of yellow), actually in the marketthis color is known by Menatel name now.6.2 STEERING CONTROLSDuring the operation process in Menatel almost the same controlling methods areused. But each branch implements these methods according to the area -coveredcircumstances. In Delta we have three main objectives production, maintenance andcommercial. The production objective is to reach 4170 payphones by the end of 2003.One engineer is dedicated for production; he is controlling two contractors for civilwork, booth install and payphone install. He is coordinating with the commercialagent, PMS engineer and maintenance engineer lines requesting, creating andreceiving in order to achieve effectively and efficiently the goals set to him. He ismonitoring this process and measuring the achievements through weekly and monthlyprogress reports to monitor and adjust the available resources he has.The maintenance objective is to reach 97 % quality service that is to say at least 97 %of all the payphones installed in Delta region should be in operation for customers tobe used daily. One engineer is dedicated for maintenance; he is controlling twentytechnicians and seven cars assigned for the technicians to solve daily payphonesincidents. He is coordinating with the PMS engineer, production engineer, customerservice agent and public relation team in order to achieve effectively and efficientlythe goals set to him. He is monitoring this process and measuring the achievementsthrough out daily PMS report to monitor and adjust the technicians‟ performance andthe available resources he has.The commercial objective is to maintain average revenue (25LE/day/payphone) andcustomer satisfaction. Both the commercial and customer service agents arededicated for commercial activities; they are coordinating with the productionengineer, maintenance engineer and public relation team using their experience andthe data available about Delta region to achieve effectively and efficiently the goalsset for both of them. They are monitoring this process and measuring theEMBA Cairo 20Rennes International School of Business
  25. 25. achievements through weekly and monthly analysis reports to monitor and adjust theavailable resource they have. The sales objective is to achieve 25 % of total Menatelnet sales. A local sales supervisor is dedicated for sales target. He is controllingtwelve Menatel sales representatives, coordinating with Menatel dealers and sub-dealers to achieve effectively and efficiently the goals set to him. He is monitoringthis process and measuring the achievements through daily and monthly analysisreports to monitor and adjust the available resource he has.6.3 FEEDBACK CONTROLSMenatel being a centralized organization, all the financial reports (balance sheet,income statement, cash flow), and ratios (liquidity, debt/equity, profitability) aregenerated at the head office to be presented to the board of directors quarterly to beanalyzed in order to monitor and adjust Mantel‟s performance. As for Mantel‟sannual appraisal performed at the end of June to evaluate Mantel‟s employees. Wehave four forms for the annual appraisal per job description, in all forms Menatelanalyze and monitor three areas of employees‟ performance, which are, businessobjectives, personal performance and profile and the weak areas to be developed.EMBA Cairo 21Rennes International School of Business
  26. 26. EMBA Cairo 22Rennes International School of Business
  27. 27. 7. CONCLUSIONLooking at the result we shall notice two points in the charts 2001 the peak and 2003the drop. The year 2001 was the peak of the production and operation phase. The year2002 was the peak of the revenue phase as Menatel started to harvest its productionfruits. The year 2003 or the drop is actually more of a stop for two main reasons. Firstthe fluctuation of the Egyptian economic situation occurring from March 2003 till theend of June 2003 was causing a state of uncertainty and caution leading the decisionmakers in Menatel to freeze everything. Second Menatel is almost in the end of theproduction phase as Menatel `s target 33,000PP is to be accomplished by the end of2004. Due to the organic organization in the branch and its flexibility Delta branchhas participated actively to the success of Menatel; the branch was always there to fillthe gap in production.Menatel organization management style is centralized and its culture is the highpower distance structured into a simple flat functional organizational structure. Deltabranch is organized in a simple flat structure corresponding to the nature of activity.The branch manger heads the matrix of the branch with functional mangers in H.Q thesales force in the branch reports to him administratively but functionally reporting tothe card distribution manger in H.Q., which is weakening the branch matrix andcausing miscommunication with the corresponding functional manager.Except for sales force, the branch manager is responsible for all Menatel activities inhis area. Those include but not limited to the following; representing Menatel in frontof the Governmental entities, Menatel production plan, Menatel quality of service,Menatel image, etc.The branch the main objectives are; Production objective, to have 4170 payphones inoperation end 2003 through all the required production activities. Maintenanceobjective is to achieve quality service more than 97% through all the requiredmaintenance activities. Commercial objective is to maintain the achieved revenue andcustomer satisfaction. These are the objectives need to be controlled, measured andmonitor, the results is not what it was expected and planed as a result of the lake ofsome skills for the staff and also shortage in some resources.It is clear that when a decision is made in the branch all aspects of the currentsituation are taken into account, which mean that the branch is managed by thecontingency theory of management.The authorities vested to the branch manger is not only his source of power over hissub-ordinates it is more his awareness of himself his social, conceptual and technicalskills along with equal awareness of his staff advantages and disadvantages.It is this sense of authority and power which every manger should seek to develop sothat he can decide how or to what degree to use his power and exactly which kind ofpower to use legitimate, reward or even coercive power.Menatel is reaching the end of the production phase, and going into maximizing profitphase, which requires a new perspective for the job duties of the branch manager, ashis main target and objective will not be adding new payphones or new cities to theservice and maintaining quality of service above 97 %, the main objective will befocused on payphone revenue. Menatel is on the doors of a new phaseEMBA Cairo 23Rennes International School of Business
  28. 28. EMBA Cairo 24Rennes International School of Business
  29. 29. 8. RECOMMENDATIONNew branch functionSince the revenue elements are quality of service, payphone distribution and cardsavailability and the branch manager is responsible for the first and the secondelements, it will not be possible for him to manage and control his recourses unless heis responsible for all the elements. That is why it is time to reorganize the branchmanager‟s job. I recommend that the branch should be a strategic business unit, whichhas an organic matrix organization and the branch manager `s responsibilities shouldbe: optimize payphones revenue, maintain Menatel image and develop Menatelbusiness within company new objectives and strategies. The recommended newresponsibilities of the branch manager require a clear line of reporting and certainlevel of authority to achieve them. For that we need to:First, reporting: the branch manager will be reporting in matrix to the technicaldirector generally and to the concerned directors for the other functions.The proposed org. chart for the branch MD Business Commercial Technical Financial & Logistic Development Director Director Adminstration Director AGM Business Financial & Development Commercial Technical Adminstration Logistic Activities Activities Activities Activities ActivitiesSecond, Delegation: A budget should be assigned to the branch and to be managed bythe branch manager directly considering the branch as a SBU, with a separate costcenter and profit/loss account.Third, Title: The branch manager‟s title is not reflecting the real job responsibilities,thus I recommend changing the title to be Area general manager.EMBA Cairo 25Rennes International School of Business
  30. 30. .EMBA Cairo 26Rennes International School of Business
  31. 31. ANNEXES1. MENATEL ORGANIZATION CHART MD D5 D4 D1 D2 D3 B1 B2 B3 B4 B5D1: Technical divisionD2: Marketing & Commercial divisionD3: Administrative & Financial divisionD4: Logistic DivisionD5: Business Development DivisionB1: Alex BranchB2: Canal & Sinaï BrancheB3: Delta BranchB4: Middle Upper Egypt & New Valley BranchB5: South Upper Egypt & Read Sea BranchEMBA Cairo 27Rennes International School of Business
  33. 33. 3. MAP OF MENATEL DISTRIBUTION IN DELTAEMBA Cairo 29Rennes International School of Business
  34. 34. 4. DELTA BRANCH ORGANIZATION CHART Branch Manager In Matrix with Menatel Secretary Functional Managers 1Engineers Commercial Customer Accountant Sales Agent Service Supervisor3 1 1 1 1Technicians Cleaning Public Sales Controllers Relation Reps19 3 2 12 Office Boy 2 EMBA Cairo 30 Rennes International School of Business
  35. 35. References  Annual Report, Menatel, 1999.  The Statistical Year Book 1994 - 2001, Central Agency for Public. Mobilization & Statistics – June 2002.  http://www.managementhelp.orgEMBA Cairo 31Rennes International School of Business