An IT services company was founded in Nigeria and expanded rapidly after winning contracts from new telecommunications firms. The company grew from 20 to over 500 employees between 2003 and 2006. However, rapid expansion led to organizational issues like low accountability, nepotism in hiring, and inadequate training for new employees.
An IT services company was founded in Nigeria and expanded rapidly after winning contracts from new telecommunications firms. The company grew from 20 to over 500 employees between 2003 and 2006. However, rapid expansion led to organizational issues like low accountability, nepotism in hiring, and inadequate training for new employees.
An IT services company was founded in Nigeria and expanded rapidly after winning contracts from new telecommunications firms. The company grew from 20 to over 500 employees between 2003 and 2006. However, rapid expansion led to organizational issues like low accountability, nepotism in hiring, and inadequate training for new employees.
An IT services company was founded in Nigeria and expanded rapidly after winning contracts from new telecommunications firms. The company grew from 20 to over 500 employees between 2003 and 2006. However, rapid expansion led to organizational issues like low accountability, nepotism in hiring, and inadequate training for new employees.
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An information technology (IT) services
company was founded in 1997 by Henry Wilson.
Henry, who held a computer engineering degree, was the Chief Information Officer for many years at Nestlé, one of the leading consumer package goods companies in Nigeria AfrobitLink started as a small company with one office in Lagos, Nigeria and fewer than two dozen employees In 2003, the Nigerian government deregulated the telecommunications sector.
Winning licenses from the government to start
telecommunications services in the country
Creation of opportunities for AfrobitLink to expand its business to
include the provision of IT services to the new telecommunications firms.
These services included installation, design, and maintenance of
infrastructure for telecommunications companies as well as consulting services. AfrobitLink won major IT service contracts with the new telecommunications companies. Compulsion by the Nigerian government to provide telecommunications services in all 36 states of Nigeria within a short time frame. Driven by the rapid growth of its new telecommunications clients, AfrobitLink also expanded rapidly into each of the remaining 35 states of Nigeria. AfrobitLink grew from about 20 employees in 2003 to over 500 by 2006. A manager was hired to lead operations in each of the 35 states. To meet urgent need the demands of the telecommunications companies, AfrobitLink changed its hiring process and its hiring criteria.
The human resources department hired so quickly that if
an individual turned in an application, he/she was likely to get hired within two days(organizational barriers: absence of organizational rules of recruitment and selection).
The new employee would then be required to relocate to
the location of his/her assignment within the next two days. New employees received very little formal training (Organizational barrier: inadequate opportunities). There were only two employees in the department who worked overtime for many weeks in order to complete the hiring process on schedule(Interpersonal barrier: Information overload to employees)
Reliance on referrals by state managers in order to make the hiring
process faster and more reliable and this led to nepotism on hands of state managers(organizational barriers: absence of organizational rules on accountability)
Assumption of reliability led to hiring of new employees without
scrutiny(organizational barriers: absence of organizational rules of recruitment and selection) Although a manager who reported directly to Henry led each of the 36 states, Henry was not able to monitor all the states as closely as he did when AfrobitLink was small.
As a result of his wide span of control, there was low
accountability. The state managers were powerful, yet due to their wide spans of control there was minimal accountability among their direct reports (Organizational barrier: complexity in organizational structure)
Due to the widened communication gap between top
management and subordinates, the expectations from employees were not properly communicated and this led to low performance of employees (Organizational barriers: Lack of cooperation between superior and subordinates) The culture of the organization changed dramatically from high standards with high accountability to low or no standards. So, employees did not feel the need to transfer information and accomplish goals(Organizational barrier: Organizational culture of low accountability)
The employee goals were not properly communicated.
Communication channels present in the company were inadequate and less functional(Interpersonal barrier: Lack of proper channel- how does employee convey) Communication process between employees and customers was hindered due to the failure of staff to respond to the urgent requests of their clients. Costs exceeded revenue; profits declined (individual barrier: inattention) Low work motivation, and high employee turnover(interpersonal barrier: lack of trust in organization). Resistance of change of employees(interpersonal barrier: fear of penalty) Incompetency of managers(interpersonal barrier :shortage of time for employee) Weak performance management system and no merit based promotion(Organisational barrier: inadequate rules and regulations) There must be proper division of labour among managers and employees. Work under division of labour is allotted according to the ability and capacity of the individual worker. This ensures a high degree of efficiency as the right man is put in the right job. This maximizes communication of right goals and standards.
Organizational goals after expansion process should be clearly
communicated to people and expectations from employees should also be stated. This will reduce the uncertainty and shall enhance accountability.
Vivid policies about hiring and performance management must be
formulated and shared with employees to avoid any ambiguities. This organization does not have a proper feedback system due to which employees feel stressed and engage in turnover, absenteeism and decreased performance. So, there should be a clear feedback system where good and bad performance is clearly communicated and shared.
Organization must opt few extensive training programs for newly
hired employees and should try to build a climate of trust and coordination. This will help new employees to communicate freely their concerns and problems.