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Running head: EVALUATION OF ORGANIZATIONAL STRUCTURE: VERIZON |
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EVALUATION OF ORGANIZATIONAL STRUCTURE: VERIZON |
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Evaluation of Organizational Structure: Verizon Wireless
Evaluation of Organizational Structure: Verizon Wireless
Introduction
A company's structure plays a vital role in what will be the company's life. Although many factors determine what will make success, there are key elements that determine if an organization's structure is effective. An analysis of Verizon Wireless' structure will identify three of the elements and their role in effectiveness. The analysis of the elements will determine what strategies should Verizon Wireless implement to improve structure effectiveness and overall company performance.
Current Structure and Strategy
Verizon Wireless has changed over the years. In the past, they were focused on growing their customer base by providing an extensive digital voice network. As technology changed, so did Verizon Wireless. The mission of Verizon Wireless is to be a global leader delivering innovative communications and technology solutions that improve the way our customers live, work and play ("Company Policies - Verizon Wireless", n.d.). Verizon Wireless uses a code of business conduct to help guide their strategy. It is a huge part of their culture. They understand that their customers are their most precious assets, and part of their credo is focusing outward on the customers, making things easy for their customers to do business with them. They do this through listening, anticipating and responding to their needs.
Verizon Wireless uses their business structure to help meet their strategic goals in many ways. Within their organization, there are several departments, all of which are streamlined to support the customer. They have customer service, technical support, sales, and operations. They also have a separate business support center, which allows them to provide specialized support to their business and government customers. Verizon Wireless has a Chairman and Chief Executive Officer, Lowell McAdam, along with several other key executive leaders at the top of their organizational structure. Beneath that, are several layers of area Presidents, which trickles down into Directors. These layers end with the front line customer service, technical support and sales representatives. While the structure of Verizon Wireless is that of bureaucratic organization, it does flatten out throughout the different markets, which are north, south, east and west areas. By centralizing their work, it allows them to be in a better position to respond swiftly to events of national disasters, supporting the section of their credo that states they run to disaster, not away from it ("Company Policies - Verizon Wireless", n.d.).
Metrics used to determine the Effectiveness of the Organizational Structure
To evaluate Verizon's effectiveness, we must in understand the function, structure, and the focus of the organization. Verizon's current organizational structure is a functional structure or bureaucratic structure. This structure divides the organization based on specialty-focused functionality. For any organization, measures of effectiveness vary, depending on their mission, environmental context, products or services produces, and customer demands. Organizational effectiveness is "the degree to which an organization realizes it goals" (Daft, 1995, p. 98)
There are four key approaches that can be used to measure the effectiveness of organizational structures. Goal Approach focuses on identifying organizations output goals, and assessing how well goals are met. Resourced-Based Approach focuses on the input with the assumption the organization successfully obtains and manages valued resources that will create a competitive edge. Internal Process Approach is focused on the internal organizational health including employee satisfaction, and efficiencies, which create economical efficiencies. Lastly, the Strategic Constituents Approach is focused on measuring the satisfaction of key stakeholders, who are critical to the organization's ability to succeed (Daft, 2016).
Verizon using a bureaucratic organizational structure can benefit from the Goal Approach, the Internal Process Approach, and the Strategic Constituents Approach. The Goal Approach will be effective for Verizon to ascertain the achievement of being a top company in the telecommunications industry, with a specialization in operating a wireless telecommunications network.
The Internal Process Approach will be effective for measuring the success of the internal health of the organization. Verizon conducts contract negotiations that bargain with wage increases, job security provisions, and healthcare savings for the life of the contracts. Verizon also negotiated Service Excellence Plans with the unions, which are designed to monitor and improve employee productivity.
The third effective metric would be the Strategic Constituent Approach. This approach can be used by Verizon to ensure they remained aligned with their mission statement “As a leader in communications, Verizon’s mission is to enable people and businesses to communicate with each other. We are also committed to providing full and open communication with our customers, employees, and investors.”
Three areas of ineffectiveness
One area of particular ineffectiveness is in the retail aspect of the company. Retail interactions and the opportunity to work with customers directly is a challenge for most businesses, but especially at wireless service providers where the options for both equipment and services are numerous. In the retail sector for Verizon Wireless, those interactions can require the personal attention of a retail associate for an extended period. Depending on the proficiency of the associate, and the combined impact of the lack of familiarity of the customer, the ability to accurately predict workflow and completion rates is a challenge. Changes that involve more automation to the retail experience, as well as simplified explanations to plans and offers, may help customers serve themselves on the front end of the transaction, versus requiring human assistance throughout the transaction. Making changes to this area may enable Verizon to not only make the shopping experience more efficient for customers, but also lower customer wait times and enhance the overall experience. Improving the experience customers get in the retail store may also be an important point of differentiation between Verizon and their competition.
Another area of potential ineffectiveness is related to the human-centered customer service experience post-sale. For most questions and needs, a Verizon customer must either walk into a retail store or call customer service via phone call or the web. While the high level of human interaction may be a benefit to a segment of the customer population, there are segments emerging that rely more on chat, web-based self-service, and mobile apps to accomplish what they need to (Roesler, 2015). With innovation in mind, and with the demographic shift of millennials and others fully embracing technologies like wireless services, Verizon would do well to revamp customer service to meet those needs. Embracing and developing new technologies and customer service tools will likely result in radical shifts related to how human resources are allocated, and ultimately how the organization is designed.
A final area of ineffectiveness at Verizon is again related to the retail segment of the business and the size and capability of stores within a market. Presently, there are more than 1700 retail stores in the United States (Verizon, 2016). With a significant store presence, Verizon is able to cover the major population centers of the United States. Given some of the challenges posed by operating a retail location and staffing cost effectively, there can be issues with lines, time per transaction, and the overall experience at retail locations for customers. Instead of sparsely staffed small stores dotting the country, Verizon should consider larger stores with a larger staff to manage the high volumes of weekends and evenings. Doing so may speed up transaction times, improve the customer experience and potentially maximize profit per customer while ensuring customer satisfaction.
Recommend changes to the structure that would improve the effectiveness of Verizon Company
For Verizon Company to improve its effectiveness, there is a need for the company to make changes in its market structure. This is because the market structures in business tend to play a very important role in the shaping of the business landscape to make it more competitive at all the levels of the business operations. There is, therefore, a great need for the company to employ some strategies that will enable it to increase its dominance in the telecommunications industry. One of the recommendations regarding the change of the structure of the business, to increase its effectiveness, is to offer a single time decline in the prices for the new customers who are entering into a contract with the company for the first time. A discount system for new customers can be an effective tool as it will help the company to lure customers especially those who are dissatisfied with the services offered by competitors in the industry. The ability of the Verizon Companies to retain its customers for an extended period will also assist it to increase its profit margin and also the market share (Cummings, & Worley, 2009).
The second recommendation for the changes in the structure of the company so that it can be in a position to increase its effectiveness is coming up with an innovative strategy. The company can achieve this through the provision of new features as well as other enhancements to their products thus making it easy for them to be differentiated from those offered by their competitors. This is because the company is operating in the technology industry where the customers are always looking for the products that are great and the latest in the market. The ability of the company to fulfill the desires of is consumers of handling the new and the latest technology will assist the company by increasing its growth prospects in the long-term.
The last recommendation that the company needs to put in place is a strategy to achieve excellence in service through customers oriented employees. This will greatly assist the company in the retention of the existing customers, attract new ones and in overall creating a wide base of the loyal customers. To achieve this, there is a need for the company to partake research on customer needs and also implement changes to answer customer requests. For example, the company can conduct research on what the customers likes and what that they do not like about the company. The company can thus use the results obtained from the survey to improve the perceptions of the customers and thereby increase their retention in the long-term.
Conclusion
Verizon Wireless is an example of how structure plays an important part in any company. The combinations of a bureaucratic structure and a flat contemporary approach throughout its different markets have allowed the company to be a leader in the telecommunication network industry. Verizon Wireless’ structure has contributed to the company to succeed in providing customers with excellent service and innovations. In the past, the company’s structure has been modified to meet expectations and consumer needs. Although more changes are recommended and will come with time, the company’s structure will allow different departments to develop new strategies that will help expand Verizon Wireless. The new strategies will aim the company in fulfilling its mission of enabling communications.
References
Daft, R. L. (2010, July). Linking Organizational Culture, Structure, Strategy, and Organizational Effectiveness: Mediating Role of Knowledge Management. Journal of Business Research, 63(7). DOI: 10.1016 1j:jbusres.2009.06.005
Daft, R. L. (2016). Organizational Theory and Design (12th Ed.). Boston, MA: Cengage Learning.
Company Policies - Verizon Wireless. (n.d.). Retrieved from http://www.verizon.com/about/responsibility/policies
Cummings, T. & Worley, C. (2009). Organization development & change. Australia Mason, OH: South-Western/Cengage Learning.
Roesler, Peter. (April, 2015) Why millennials want self service customer service. Retrived from http://www.bizjournals.com/bizjournals/how-to/growth-strategies/2015/04/why-millennials-want-self-serve-customer-options.html
Verizon (2016) Verizon at a glance. Retrieved from: http://www.verizon.com/about/our-company/verizon-glance/