Principles of management report

Rennes International School of Business

ESC RENNES

Executive 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

TABLE OF CONTENTS
Executive Summary II
Introduction & Objective III
Chapter 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 3
Chapter 2. General Management Issues 7
2-1 Management 7
2-2 Managerial Skills and Roles 7
2-3 Organization Culture 8
Chapter 3. Planning 10
3-1 General 10
3-2 Objectives 10
3-3 Strategy 10
Chapter 4. Organization 13
4-1 Personal Organization and Time Management 13
4-2 Delegation 13
4-3 Structure 13
Chapter 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 18
Chapter 6. Controlling 20
6-1 Preliminary Controls 20
6-2 Steering Controls 20
6-3 Feedback Controls 21
Chapter 7. Conclusion 23
Chapter 8. Recommendation 25
Annexes 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 30
References 31

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EXECUTEVE SUMMARY
To sum up, this report deals with the practical application of management general
principles taking for example, Menatel –a joint stock company invest in payphones
business – specially, dealing with my own experience as the Delta Branch manager.
The environment affects the branch management where it is located. A matrix form
corresponding with functional directors at the head office manages it. As a branch
manager, I am responsible to manage the branch team in accordance with the
company strategy to achieve the planed objectives of Menatel, concerning the
commercial, 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 his
role effectively. Planning, organization, leadership and controlling are the main
principles of management. A branch manager is to achieve these functions in
accordance with his own skills, the teamwork‟s nature and the organization system as
a whole.
Planning, as a term includes identifying goals, objectives, methods and resources
needed to carry out the tasks assigned. Delta branch is managed by objectives set in a
monthly plane- along with some agreed upon backup plans. This monthly plane must
meet with general one emanating from Menatel‟s strategy and objectives concerning
production, commercial and other aspects of business.
Organization is the use of resources to enhance goals in the optimum way. Time and
self-organization are the most important topics to me in achieving successful
management. Delegating certain tasks to specific and proper persons is one of the
methods I use to manage, motivate and coach my staff. The delta branch is organized
as well by a certain flexible structure, that of four sectors, each with assigned tasks
working together to reach profitability to business.
A third principle of management is leadership policy and style. Democracy with
discipline and commitment is my style to lead my team efficiently. Internal and
external communication of the branch is Avery vital aspect of successful leadership.
Management conflicts either in-between staff or with other managers are one of the
daily 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 are
taken to reach innovation and more motivation to move ahead.
The fourth, and last principle of management is controlling. That is monitoring and
adjusting the resources to achieve goals efficiently and effectively. That is how
Menatel could reach its unique and highly strict terms of material and equipments
quality. In delta branch, controlling is fulfilled in the three main objectives,
production, commercial, and maintenance by monitoring, following up or progressing
reports and adjusting performance of the branch members. At last Menatel being a
centralized organization, all feed back reports are related and generated by head office
and the functional directors. Thus, annual reports are given out to improve weak
pointes and reach maximum management success.

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INTRODUCTION & OBJECTIVE
The purpose of this report is to relate the principles of management covered in the
seminar to my professional situation as Branch Manager in Menatel. The objective is
to analyze the management principles in Delta branch as a sample, in light of the
concepts that have been covered or what is to be the most relevant points with respect
to general management issues, planning, organizing, leadership, and controlling. I
will 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, and
all the main titles are interlaced, I will try to present this paper in short and simple
sentences. Brief definitions to some terms will be inserted in order to have good and
clear communication.

As, for the period starting from 1st of March till 30th of June 2003, in which the
economic situation in Egypt was facing obstacles, such as the local currency floating-
policy and the fluctuation & devaluation of the exchange rate of the local currency
against the foreign currency, that affected the status of firms and institution‟s position
in the Egyptian market, consequently the whole economy, and the business
community climate those days was shaded with uncertainty and its decisions with
caution. In Menatel we have frozen every thing. In my report I shall bypass this
period.

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1. PRESENTATION OF MENATEL
1.1 WHAT IS MENATEL
Menatel is a joint stock company under investment low number 8/1997 registered in
1998 under number 314030. Menatel is granted a ten years; renewable license, to
install, operate, and manage a telecommunication network of at least 33,000 public
payphone. Menatel is determined to achieve this target by the end of 2004. Egyptian
shares are 51% and foreign shares are 49%. France Telecom (FCR) “providing
Menatel with the know-how technology and management” holds the main foreign
shares, which is 44 %. The main Egyptian company with 18% share is the National
Bank of Egypt (NBE).
1.2 MENATEL VISION AND GOALS
Menatel 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 ORGANIZATION
With a centralized management style Menatel structured into five main divisions
headed by corresponding Director and five Branches allocated all over Egypt, to form
simple flat functional organizational structure. (Annex I)
1.3.1 TECHNICAL DIVISION
The objectives for this division are:
1-Payphone-management system
2-Payphone installations
3-Laboratory & technical help desk
4-Maintenance supervision
5-Payphones maintenances.
6-Value added services development.
7-Subcontractors coordination
8-Branches management
1.3.2 MARKETING & COMMERCIAL DIVISION
1-External communication
2-Advertising
3-Payphone location determination & authorization
4-Sites owner management
5-Cards direct distribution management
6-Cards indirect distribution management
7-Telecome Egypt relationship (JWC)
8-Customer hot line
9-Commercial reporting

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1.3.3 ADMINISTRATIVE & FINANCIAL DIVISION
1-General reporting & payments
2-Accounting & balance sheet
3-Business plan & budgets
4-Billing invoices & suppliers
5-Cach & contract management
6-Internal network management
7-Recruitment & training
8-Payroll & salary policy
9-Social, litigation, and legal matters
1.3.4 LOGISTIC DIVISION
1-Security management
2-Premises management
3-Purchases
4-Custom clearance
5-General procurement
6-Warehouse
7-Card distribution
8-Transportation
9-Vehicels management
1.3.5 BUSINESS DEVELOPMENT DIVISION
1-Handel assignments and projects to improve organization performance
2-Improvement of the interface with major suppliers
3-Tuning of HR tools
4-Defining and building major business indicators
5-Managing auditor
1.3.6 MENATEL BRANCHES
Menatel established five branches allocated all over Egypt, (Alex. And north cost,
Port Saeed and Saina, Delta, Middle Upper Egypt and New valley, South Upper
Egypt and Red Sea. The objective for all the branches is to achieve all Menatel five
division‟s objectives through the matrix and centralize Menatel organization as per the
branch assigned area.
1.4 DELTA BRANCH
1.4.1 ENVIROMENT
The 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 and
Rasheed) flows with all their sub-branches. This landscape occupies 16411Km.*,
divided into 6 governorates, 31 City, 45 Town and 3000 Village and small village,

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shaping a percentage of 30% urban and 70%rural. Delta population is 20 Million their
main source of income is agriculture and some small industries related to it. There is a
high percentage of illiteracy among Delta population especially females, which is
considered 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 network
of 4170 public payphone by the end of 2003 all over the assigned area, most of this
area is rural inhibited by more than 20,000,000 people, 33 % of them inhibit urban
and the remaining inhibits rural. (Annex 3).
1.4.3 ORGANISATION
In a centralized management environment, the branch manager in the matrix heads the
branch organization with functional managers in the head office. The branch manager
is responsible to manage the branch team to meet the objectives planned by Menatel
Managing Director in accordance with company strategy and guidelines given by the
functional directors. The branch team is organized in a simple flat structure
corresponding to the nature of the activities, which are technical activities
(production, maintenance, and Payphone Management System “PMS”), commercial
and customer service activities, financial and administrative activities, and finally
public relations and logistic activities. As for the sales team they are supervised by a
local sales supervisor who is reporting technically to Menatel cards distribution
manager and administratively to the branch manager in matrix organization (annex 4).
1.4.4 RESULTS
 COMMERCIAL
The commercial results in the branch, putting into account the branch situation and
environment is considered very good results, the charts bellow show the commercial
progress 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 2003

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Revenue Million
25.5
41
 Cards Net Sales

LE
27
8
2000 2001 2002 2003

 PRODUCTION
Excellent results achieved by the branch in production activities, the charts bellow
show 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

 MAINTENANCE
The maintenance results was not as good as targeted to be, changing maintenance
supervisor and re-organizing the maintenance team the results improved as the charts
bellow 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


 Cleaning Q.S. 89.3
Percentage

91.2
90.1 90.4
88.1

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2. GENERAL MANAGEMENT ISSUES
2.1. MANAGEMENT

What is management? The term “management” has different senses, traditionally the
term “management” refers to the activities involved in the four general functions
(planning, organizing, leadership, and controlling or coordinating) these four
functions 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 the
organization. Most of the employees refer to the term “management” as the group of
people (executives and other managers) who are primarily responsible for making
decisions in the organization.

2.2. MANAGRRIAL SKILLS AND ROLES

A successful management depends on a lot of things, the manager personality and
behavior, 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 from
different functional departments in a matrix form. My role and responsibilities are
determined as follows:
1-Represent Menatel in my area
2-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 locations
3-Preparation of the regular reports to reflect an accurate image concerning all the
activities in the area covered by the branch
4-Problem solving of any occurrences that might affect the branch‟s activities
5-Handling the resources (personal, budget, equipments) allocated to the branch
6-Follow-up market changes
7-Suggest new ideas related to the market that might be useful for the company as
well as for other branches
8-Solve any problems pertaining branch‟s staff and report back to the head office
9-Establishing good contacts with exchange managers and governmental people
within the area covered by the branch
Although my responsibilities are determined they still may not be carried out as
intended to, as not all the managers are skilled enough or have the potential to work
within a matrix organization, and being an engineer -myself- in the field of
telecommunication my expertise is mainly in technical issues, and according to Myers
Briggs Type Indicator (MBTI) I am introvert, sensing, thinking, and judging. I am
surely in need to develop my conceptual skills. As for the staff, with the professional
help of the H/R department and my recommendations we are executing a training plan
to develop the skills required to achieve Menatel objectives.

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2.3 ORGANIZATION CULTURE

Culture is the system of shared values, beliefs, and behaviors that gives a company
identity and “atmosphere”. In delta branch, as in all Menatel, we have a strong
culture, which inspired, innovate, and empowered all Menatel employees. We have
values, such as customer first, integrity in all we do excellence through quality and
respect for others. In order to achieve total customer satisfaction we anticipate,
perceive, fulfill and exceed our customer‟s needs and expectations. Menatel service is
available all over delta area even in small villages and poor locations. In all our daily
activities we individually and collectively use Menatel quality standerds to achieve
excellence as a branch. As Delta branch is the number one branch in production
target, for the last three years we have achieved our annual target two to three months
prior to schedule. We care for our branch, our work, and our customers as well as we
care for each other. But what distinguish the branch culture are organization and
discipline. The team in delta branch is known by its organizational and disciplinal
behaviors.

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3. PLANNING
Simply planning is selecting priorities and results and how those results will be
achieved. It includes identifying goals, objectives, methods, resources needed to carry
out methods, responsibilities and dates for completion of tasks. Such as strategic
planning, business planning, project planning, staffing planning, advertising and
promotions planning, etc.

3.1 GENERAL

Delta branch is managed by objectives, a monthly meeting in the first of each month
attended by the branch manager, production engineer, maintenance engineer, PMS
(payphone management system) engineer, and the commercial agent to define and
analyze 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 process
in which we shall achieve the monthly target. At the end of each meeting we have a
small exercise, we assume different scenarios or cases, or try to find different answers
to the question “what if??” in order to have a back-up plan; normally we end up with
two or three back-up plans, to the planed process agreed upon.

3.2 OBJECTIVES

The branch objectives are clear, specified, and challenging. Delta branch is assigned
to put 4179 payphone by the end of year 2003 with quality of service 97 %. To
achieve these objectives we are to
1-Cover all delta area and put payphones everywhere needed.
2-Have top technical service quality
3-Open point of sales around each payphone and in public areas elsewhere
4-Obtain Menatel average revenue
5-Maintain Menatel image
The branch team is responsible along with the branch manager to set the branch
objective, which emanates from Menatel objective, by which the branch team
determine a monthly measurable, challengeable, but not impossible objective. The
team are responsible for generating a reporting system (weekly and monthly) to
measure and test the whole operation process, they know exactly what to do and what
they are aiming to as they are up to their responsibilities to achieve the objective they
have shared in setting it, by this way they are motivated and enthusiastic about their
jobs.

3.3 STRATEGY

Menatel `s strategy is that to ensure payphones wherever needed and reachable points
of sales distributed around our pay phones to ensure an effective availability to our
customers. As for the technical services needed we are targeted to achieve total
satisfaction to our customers by achieving service quality not less than 98%, also by
responding to their needs (information, cards, and P.P. request‟s) through our well
trained employee. This strategy is passed clearly to every employee in Menatel

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As for delta branch‟s strategy it emanates from Menatel`s and it is implemented by
the branch staff in a way responding to the region needs and culture. Also this strategy
didn‟t experience major changes except lately the increase in the plan of payphones to
reach up to 33000 PP.

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4. ORGANIZATION
Organization or organizing resources is to achieve the goals in an optimum way, such
as organizing new departments, new activities, human resources, office and file
systems, re-organizing businesses, etc.

4.1 PERSONAL ORGANIZATION AND TIME MANAGEMENT

„Time is life „this simple definition of time explains every thing about time meaning
and 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 management
and maybe the key to any success. As for me, personal organization and managing
time 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 my
secretary, using annual planer, delegate tasks and also having a filing system all these
techniques to manage time and organize my work.

4.2 DELEGATION

In Delta branch one of the important tools I am using is delegation, in order to
optimize my use of time and to coach and motivate my team. For the branch
organization structure I have delegated specified tasks per activities to the proper
persons through assigned missions for each one of them, I have one engineer per each
main technical activities (maintenance, production and PMS.), the commercial agent
for commercial tasks (line request, chose locations), the accountant for all financial
and administrative tasks. Each one of them has the power and authority to achieve his
objective 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 STRUCTURE

Delta branch activities are distributed among the staff based on one target set by
Menatel – by its four sectors (technical-commercial-financial and logistic)- that is to
execute the assigned tasks efficiently to achieve profitability to the business.
The commercial agent along with the customer service representative is a team
assigned to follow up and execute all commercial activities such as choosing good
locations, request payphones lines, analyze the average revenue and on top of it attend
to customer needs and requests to ensure customer satisfaction.
The three engineers along with a team of technician and cleaning controller are
assigned to execute efficiently all technical activities. Such as follow up the quality
service of the network in the region to achieve 97% Q.S., follow up cleaning and
booth maintenance, follow up all sub-contractors activities (civil work, booth
installation and maintenance, cleaning). Also to follow up all PMS activities such as
new installation, updating and downloading new software, ensure successful
communication (the DUMP) between the main sever PMS 300 and all other PMS's
installed in every exchange in the region.

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The accountant along with the secretary is assigned to follow up and execute all
financial and administrative activities. Such as: monthly and quarterly inventory (sub
contractors store, sales custody and customer service representative custody), all bank
transactions, employees expenses claims, branch daily attendance reports, branch
needs 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 with
governmental institution or representatives such as Police stations, city councils and
districts. 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 Card
Distribution 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 the
H.Q. and it depends on the functional manager and the corresponding division
director whether it is a weak or strong matrix.

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5. LEADERSHIP
Leadership or leading is to set direction for the organization, groups and individuals;
more important is to influence people to follow that direction (vision, values, mission
and goals). As for teamwork, both leaders and managers should be represented, in
order for this group to perform as an efficient and effective body.

5.1 THEORY

By the end of 2001 Menatel have had a leadership change; a new Managing Director
assigned by France telecom is on board. The wheel of Menatel success story is about
to change direction. Depending on his intelligence, and self-confidence, the new MD
vision was “It is time to change”. He started to communicate different terms like
Menatel profit not Menatel revenue, effective with efficiency, managing by projects
not by centralization. He has taken big steps in directing the organization towards his
vision, he implemented a new division “Business Development Division” to handle
assignments and projects to improve organization performance, and he also started a
complete training plan to all Menatel staff to insure that Menatel will go through the
changing process smoothly with the effectiveness and efficiency required in this
stage. As for delta branch group they are directed by-me- the branch manager. I
believe that leadership depends on the situation, the power I have, me-my team
relations 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 performance
quality and efficiency.

5.2 DECISION-MAKING

Believing in democracy along with discipline I share decisions with my team. In our
regular meetings- monthly, weekly, or even daily if necessary- we identify and
analyze all characteristics of a problem (volume, value, time, cause.), get all the
information needed, develop and evaluate alternative, analyze them and then decide
the most effective alternative we have, after deciding we implement the decision with
the available tools and resources, during the implementation we monitor the
performance, measure the achievements, and adjusting the process if needed. In all
our decisions we follow the analytical style, which I believe it to be the most
appropriate style.

5.3 MOTIVATION

For the time being the staff in the branch (and may be in all Menatel) are not
motivated as they used to be. Knowing my staff characteristics active, hard workers,
responsibility- seekers, initiative and have the need for achievements, I believe that
they are not motivated as they have no challenging objectives to achieve in additional
to the fact that the organizational structure in Menatel have no room for promoting. So
the problem is traced to the fact that the staff need for achievements and career
development is not satisfied.

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5.4 COMMUNICATION

To motivate people you have to communicate with them, to control people you have
to 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 way
to 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 our
communications inside the branch is how we listen to each other and how we provide
our feedback to each other in order not just to communicate but to have effective
communication between each other, this makes the branch`s organization flexible and
organic.
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 daily
basis connected with the other branches or the H.Q. to control objectives and
coordinate the branch daily activities. For Menatel customers we communicate
Menatel image to the customers in a way that benefits Menatel objectives. A noise
signal is detected only when the branch communicates with commercial division
concerning the daily follow up of the sales reps. Both ends of this line of
communication are not listening to each other any more, in a trial to avoid any more
conflicts

5.5 POWER AND POLITICS

There are two main reasons for the high power distance culture, which distinguishes
Menatel‟s style of management, which appears in formalities, titles, and less inter
action between staff. These two reasons are the French style of management imported
from (France telecom) And the Egyptian business community in which Menatel is
based 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 both
the culture of the organization in formality, tittles and a bit limited social interaction
with the staff along with my personal skills in discipline accuracy and sense of duty I
try to communicate to my staff the image of a firm but a fair manger
As for politics, when Menatel first started 5 years ago till now it had a measurable and
clear objective, which is to install, operate and manage a network of pay phones
Now Menatel`s staff all in all is no more than 400 employee in H.Q. and branches all
of them is putting this target ahead of them and their annual appraisal is detecting
mainly how much they contributed towards achieving this target. This is mainly why
politics behavior cannot be traced. As actions speak better than words or in Menatel
case Productivity speaks for itself.

5.6 CONFLICT MANAGEMENT

In a matrix organization environment such as Mantel‟s, conflict is one of the aspects
of the branch manager‟s work activities either by facing or resolving. In Egypt most

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managers are not familiar with the new style of management and for most of them the
one-man show style is the core of any management style. In delta branch I have two
kinds of conflicts, staff conflict among each other and my conflict with other
functional managers. Most of the staff conflicts are solved using a compromising way
as short-term solution; in parallel with short-term solution I am using my authority as
branch manager trying to have a collaborative or integrative solution through internal
rotation and job redesign. As I consider people as assets, as people are the key to any
management success. As for my conflict with the functional managers, I think it is
mainly due to the fact that most of the managers are not familiar with the matrix style
of management, I believe that this kind of conflict is healthy one, it encourages
managers to be creative and challenge their innovation. The only unsolved conflict is
the one between all branch managers and the cards distribution manager over
managing the local sales force in the branches. This conflict is caused by personal
variables, as the cards distribution manager is an authoritarian leader type and very
aggressive person when it comes to confronting.

5.7 CHANGE MANAGEMENT & INNOVATION

Since 1989 when Menatel started till now, one main strategic decision has been taken
in 2001 that is to increase our target by 10.000 PP reaching up to 30.000PP. One main
obstacle appeared at the time, which is the technology needed to achieve the target.
As the installed payphone management system (PMS) `s capacity could not
Satisfy this stage needs efficiently. Menatel `s management has taken another step
towards achieving its target that is to change into more modern technology which
satisfies the needs of the stage. The new technology (PMS 300) has been identified as
the answer to our needs and it called for some alteration in premises concerned such
as laboratories and warehouses also people concerned such as engineers and
technicians. Providing premises with the equipment, people with the skills needed to
be 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 of
change Menatel is now in the unfreeze stage. We identified the problem (decrease of
revenue), developed and communicated new model (effectiveness more than
efficiency) finally identified the main obstacle for change that is people resistance to
change.
With procedures such as redesigning some jobs, implementing new division in the
business and executing training plan for the staff to enhance their skills Menatel has
taken some steps towards the next step of change that is Movement.

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6. CONTROLLING
The term “controlling” means coordinating the organization‟s systems, processes and
structures 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 adjusting
resources and processes to achieve goals and objectives in a highly effective and
efficient way.

6.1 PRELIMINARY CONTROLS

In Menatel we allow no deviations in terms of quality through controlling all our
material and equipments from suppliers (local or over seas). One of the main tasks of
the technical team along with the logistics team is to ensure that all the equipments
and materials used in Menatel math exactly Mantel‟s quality standards.
As Menatel has its unique dimensions and technical specifications of all the
equipments and materials used (Payphones, cards, cables, booths, civil work…).
Menatel even have its unique color (certain shade of yellow), actually in the market
this color is known by Menatel name now.

6.2 STEERING CONTROLS

During the operation process in Menatel almost the same controlling methods are
used. But each branch implements these methods according to the area -covered
circumstances. In Delta we have three main objectives production, maintenance and
commercial. 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 civil
work, booth install and payphone install. He is coordinating with the commercial
agent, PMS engineer and maintenance engineer lines requesting, creating and
receiving in order to achieve effectively and efficiently the goals set to him. He is
monitoring this process and measuring the achievements through weekly and monthly
progress 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 to
be used daily. One engineer is dedicated for maintenance; he is controlling twenty
technicians and seven cars assigned for the technicians to solve daily payphones
incidents. He is coordinating with the PMS engineer, production engineer, customer
service agent and public relation team in order to achieve effectively and efficiently
the goals set to him. He is monitoring this process and measuring the achievements
through out daily PMS report to monitor and adjust the technicians‟ performance and
the available resources he has.
The commercial objective is to maintain average revenue (25LE/day/payphone) and
customer satisfaction. Both the commercial and customer service agents are
dedicated for commercial activities; they are coordinating with the production
engineer, maintenance engineer and public relation team using their experience and
the data available about Delta region to achieve effectively and efficiently the goals
set for both of them. They are monitoring this process and measuring the

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achievements through weekly and monthly analysis reports to monitor and adjust the
available resource they have. The sales objective is to achieve 25 % of total Menatel
net sales. A local sales supervisor is dedicated for sales target. He is controlling
twelve Menatel sales representatives, coordinating with Menatel dealers and sub-
dealers to achieve effectively and efficiently the goals set to him. He is monitoring
this process and measuring the achievements through daily and monthly analysis
reports to monitor and adjust the available resource he has.

6.3 FEEDBACK CONTROLS

Menatel being a centralized organization, all the financial reports (balance sheet,
income statement, cash flow), and ratios (liquidity, debt/equity, profitability) are
generated at the head office to be presented to the board of directors quarterly to be
analyzed in order to monitor and adjust Mantel‟s performance. As for Mantel‟s
annual appraisal performed at the end of June to evaluate Mantel‟s employees. We
have four forms for the annual appraisal per job description, in all forms Menatel
analyze and monitor three areas of employees‟ performance, which are, business
objectives, personal performance and profile and the weak areas to be developed.

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7. CONCLUSION
Looking at the result we shall notice two points in the charts 2001 the peak and 2003
the drop. The year 2001 was the peak of the production and operation phase. The year
2002 was the peak of the revenue phase as Menatel started to harvest its production
fruits. The year 2003 or the drop is actually more of a stop for two main reasons. First
the fluctuation of the Egyptian economic situation occurring from March 2003 till the
end of June 2003 was causing a state of uncertainty and caution leading the decision
makers in Menatel to freeze everything. Second Menatel is almost in the end of the
production phase as Menatel `s target 33,000PP is to be accomplished by the end of
2004. Due to the organic organization in the branch and its flexibility Delta branch
has participated actively to the success of Menatel; the branch was always there to fill
the gap in production.
Menatel organization management style is centralized and its culture is the high
power distance structured into a simple flat functional organizational structure. Delta
branch 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 the
sales force in the branch reports to him administratively but functionally reporting to
the card distribution manger in H.Q., which is weakening the branch matrix and
causing miscommunication with the corresponding functional manager.
Except for sales force, the branch manager is responsible for all Menatel activities in
his area. Those include but not limited to the following; representing Menatel in front
of 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 in
operation end 2003 through all the required production activities. Maintenance
objective is to achieve quality service more than 97% through all the required
maintenance activities. Commercial objective is to maintain the achieved revenue and
customer satisfaction. These are the objectives need to be controlled, measured and
monitor, the results is not what it was expected and planed as a result of the lake of
some 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 current
situation are taken into account, which mean that the branch is managed by the
contingency theory of management.
The authorities vested to the branch manger is not only his source of power over his
sub-ordinates it is more his awareness of himself his social, conceptual and technical
skills 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 so
that he can decide how or to what degree to use his power and exactly which kind of
power to use legitimate, reward or even coercive power.
Menatel is reaching the end of the production phase, and going into maximizing profit
phase, which requires a new perspective for the job duties of the branch manager, as
his main target and objective will not be adding new payphones or new cities to the
service and maintaining quality of service above 97 %, the main objective will be
focused on payphone revenue. Menatel is on the doors of a new phase

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8. RECOMMENDATION
New branch function
Since the revenue elements are quality of service, payphone distribution and cards
availability and the branch manager is responsible for the first and the second
elements, it will not be possible for him to manage and control his recourses unless he
is responsible for all the elements. That is why it is time to reorganize the branch
manager‟s job. I recommend that the branch should be a strategic business unit, which
has an organic matrix organization and the branch manager `s responsibilities should
be: optimize payphones revenue, maintain Menatel image and develop Menatel
business within company new objectives and strategies. The recommended new
responsibilities of the branch manager require a clear line of reporting and certain
level of authority to achieve them. For that we need to:
First, reporting: the branch manager will be reporting in matrix to the technical
director 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 Activities

Second, Delegation: A budget should be assigned to the branch and to be managed by
the branch manager directly considering the branch as a SBU, with a separate cost
center 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.

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.

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ANNEXES

1. MENATEL ORGANIZATION CHART

MD

D5 D4 D1 D2 D3

B1 B2 B3 B4 B5

D1: Technical division
D2: Marketing & Commercial division
D3: Administrative & Financial division
D4: Logistic Division
D5: Business Development Division

B1: Alex Branch
B2: Canal & Sinaï Branche
B3: Delta Branch
B4: Middle Upper Egypt & New Valley Branch
B5: South Upper Egypt & Read Sea Branch

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2. MAP OF DELTA Region

KAFR EL SHEIKH

DAKHALEI
A

GHARBEIA

SHARKEIA

MENOFEIA

KALIOPEIA

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3. MAP OF MENATEL DISTRIBUTION IN DELTA

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4. DELTA BRANCH ORGANIZATION CHART

Branch Manager

In Matrix with Menatel Secretary
Functional Managers
1

Engineers Commercial Customer Accountant Sales
Agent Service Supervisor
3 1
1 1 1

Technicians Cleaning Public Sales
Controllers Relation Reps
19
3 2 12

Office
Boy

2

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References

 Annual Report, Menatel, 1999.
 The Statistical Year Book 1994 - 2001, Central Agency for Public.
Mobilization & Statistics – June 2002.
 http://www.managementhelp.org

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Principles of management report

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