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Etisalat Company: Organization Theory and Design Case Study


Etisalat is the largest provider of telecommunication services in the UAE. It is a part of Etisalat Group that operates in numerous countries of Asia, the Middle East and Africa (“Company Profile” par. 1). The company has more than eleven million residential customers and more than 300, 000 enterprises of different sizes and government clients (“Company Profile” par. 3). Currently, the company covers 86.4 percent of the country’s area with Fiber-To-The-Home (FTTH) network (“Company Profile” par. 3). Therefore, the UAE is a leading country in the world in terms of a fiber connection. Moreover, Etisalat “has the widest coverage of 3G and 4G mobile technologies in the country” (“Company Profile” par. 3).

According to the last company’s annual report it had revenue of AED 51,73 billion in 2015 which is significantly higher than AED 48, 50 billion it consolidated in 2014 (“Annual Report 2015” par. 3). Therefore, it could be argued that Etisalat has a fairly successful approach to organizational management that helps it to gain competitive advantage and maximize functional performance. The aim of this paper is to explore the company’s organizational structure in terms of the hierarchy of authority. It will also discuss Etisalat’s activities at divisional and functional levels. The final section of the paper will review the company’s customer support efforts at different dimensions of its operation.

Hierarchy of Authority

The company is a part of Etisalat Group corporation that is headquartered in Abu Dhabi, UAE (“Company Profile” par. 1). Etisalat’s board of directors consists of eleven members who have been elected to represent interests of the stockholders of the corporation. They are responsible for developing management-related policies that help to ensure that the organization achieves its strategic business objectives. In addition to performing fiduciary duty, the board of directors is also responsible for ensuring that company succeeds in benefiting their customers through superior services. The board of directors is chaired by Eissa Mohamed Ghanem Al Suwaidi and has “all the power required to carry out Company’s business as mandated in its objects” (“Corporate Governance” par. 4).

Seven members of the board have been appointed, and other four have been elected by shareholders owning 40 percent of Etisalat’s shares (“Corporate Governance” par. 4). The company has established three committees that help to discharge some of the responsibilities of the board of directors: Audit Committee, Nomination and Remuneration Committee, and Investment and Finance Committee. Audit Committee is responsible for performing the following tasks: verifying the company’s financial statements, monitoring the company’s adherence to the laws and regulations, and contracting external auditors among others (“Corporate Governance” par. 5). Nomination and Remuneration Committee has been created in order to perform some of the management functions of the board of directors. Specifically, it is responsible for ensuring that all board members are independent. Moreover, the committee monitors the actions of the board in order to guarantee that it complies with the discipline standards and the rules of governance (“Corporate Governance” par. 5).

Another function of Nomination and Remuneration Committee is to develop policies “for granting remunerations, incentives, and salaries” to the board (“Corporate Governance” par. 6). Investment and Finance Committee was established in 2009 (“Corporate Governance” par. 6). It manages tasks related to internal and external investments of Etisalat. The team of the company’s top managers includes the following members: Hatem Dowidar (Acting Chief Executive Officer, Etisalat Group), Saleh Al Abdooli (Chief Executive Officer, Etisalat UAE), Serkan Okandan (Chief Financial Officer, Etisalat Group), Abdulaziz Al Sawaleh (Chief Human Resources Officer, Etisalat Group), Khalifa Al Shamsi (Chief Digital Services Officer, Etisalat Group), Hazem Metwally (Chief Executive Officer, Etisalat Group), Obaid Bokisha (Chief Procurement Officer, Etisalat Group), Javier Garcia (Chief Internal Auditor, Etisalat Group), Dr. Kamal Shehadi (Chief Legal and Regulatory Officer, Etisalat Group), John Wilkes (Chief Internal Control Officer, Etisalat Group) (“Management Team” par. 1). Appendix A shows the organizational structure of Etisalat.

Divisional and Functional Management Activities

The company’s functional activities are coordinated by the top level of management (Surbhi par. 4). Etisalat has been divided into numerous functional units that help to ensure a higher level of control of the company’s activities and a greater degree of specialization. Due to the complicated nature of the company’s operations, its activities have been divided into both divisional and functional levels. Numerous divisions such as Finance, Corporate Strategy and Business, Commercial Division, and Human Resources Division among others have been created. They are supervised by the general managers who control overall business activities. This type of structure allows the company’s CEO Saleh Al Abdooli to have better control over operations of each division (“Management Team” par. 1). Independent departments at the functional level are separated by the activities and functions they perform. It provides them with a higher level of autonomy thereby stimulating better performance. Activities of all departments are controlled by department managers who are experts in their respective fields (Surbhi par. 4). The department managers are responsible for the performance of their departments and have to report to the top management of Etisalat.

Customer Support

According to the Director General of Telecommunications Regulatory Authority (TRA), a recent annual benchmarking survey of Etisalat proves that the company is committed to continuous improvement of its telecommunication services (“TRA Discusses” par. 1). Etisalat’s customer support efforts at different levels of its operation have been recognized by Trace Media. In 2014, the company won TeknoTel Award for ‘Best Customer Care 2014’ (“Etisalat Bags” par. 1).

According to the Vice President of Customer Experience Hassan Hussain, in order to ensure the high quality of customer support, the company has hired over 2000 professionals that “work around the clock and handle millions of calls per month” (“Etisalat Bags” par. 5). The company’s toll-free line provides callers with information on special offers, allows them to make quick subscriptions, register complaints, and obtain general information on mobile, TV, and Internet services (“Etisalat Toll Free” par. 2). Etisalat regularly increases the number of customer support languages in order to provide a better quality of customer support for its ever-increasing customer base. Moreover, the company has launched a mobile app called Etisalat UAE. It allows its customers to enjoy numerous services such as mobile account tracking, parking, and bill payments (“Etisalat Bags” par. 9). Furthermore, it provides clients with an option of instant subscription to different services and bundles.

Conclusion

The analysis of the company’s organizational structure in terms of the hierarchy of authority, as well as its activities, at divisional and functional levels has revealed that Etisalat is an extremely effective company. Its success stems from the implementation of proper operational strategies that have helped the company to increase its customer base and become the largest provider of telecommunication services in the UAE. Moreover, superior quality of the customer service that is provided by thousands of trained professionals helps Etisalat to ensure that it caters to its clients’ needs in the most efficient manner.

Works Cited

Etisalat, Web.

“Company Profile.” Etisalat, Web.

Etisalat, Web.

“Etisalat Bags Best Customer Care Award.” Etisalat, Web.

“Etisalat Toll Free 101 Service to Handle All Customer Care Requirements.” UAEinteract, Web.

Etisalat, Web.

TRA, Web.

Surbhi, Sam. Key Differences, Web.

Appendix A: The Organizational Structure of Etisalat

The Organizational Structure of Etisalat
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IvyPanda. (2020, October 27). Etisalat Company: Organization Theory and Design. Retrieved from https://ivypanda.com/essays/etisalat-company-organization-theory-and-design/

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1. IvyPanda. "Etisalat Company: Organization Theory and Design." October 27, 2020. https://ivypanda.com/essays/etisalat-company-organization-theory-and-design/.


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IvyPanda. 2020. "Etisalat Company: Organization Theory and Design." October 27, 2020. https://ivypanda.com/essays/etisalat-company-organization-theory-and-design/.

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IvyPanda. (2020) 'Etisalat Company: Organization Theory and Design'. 27 October.

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