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분야
docxII. Problems
1. Dogmatic and Powerful Executives
2. Imbalance of Strategy and Organizations Structure
3. Competitive Domestic Market Environment.
III. Our Recommendations
1. Disperse Executives power and Use virtual network system.
2. Change structure based on functional structure and Apply organic structure specific departments, enhance communication by horizontal linkages.
3. Turn eyes to abroad with different Organization structure and Cooperates with other company.
KT was founded in 1981. after 1997, they reorganized their business structure from wire telephone centered structure to telecommunications and internet centered structure, and they expanded the telecommunications business. In 2002, they concentrated to construct high-speed internet. KT has building global network.
KT was the best telecommunication company in Korea but today they are controversy because of restructuring issue. KT pushed ahead huge change in their organization in last April. Why is this kind of major company reaching a crisis? we wonder what is the core problem of KT and we think we can look problems from a business administration perspective, especially formation design perspective.
Therefore, we want to check what their problem is and we try to suggest how to solve those problems.
II. Problems
Problem 1) Dogmatic and Powerful Executives, strategic and ethical problems of organizational culture
In 2002, government privatized a public enterprise of KT for strengthening competitiveness of communication business. Although KT was privatized for change, KT’s overall culture had vestiges of public enterprise yet. There were lots of request for executive appointment and also they often employ people through the nepotism. These problems cut off communication between executives and employees. Finally it caused executives’ dogmatic decision making. In 2011, they sell off NTC invested 15 years that brought a profit of 20 billion won annually. Also they invest hundreds of billions in Africa suddenly and sell ‘Mukunghwa satellite 1,2’ without government approval. It was not convinced by employees in common sense. Executives’ uncomprehend and dogmatic decision making made employees distrust.
