Organizational Structure

T-Mobile USA Company is a subsidiary of the Germany-founded Deutsche Telekom holdings. In the year 2011, the company was among the largest wireless carriers in the United States of America with approximately 33.73 million customers and annual revenue of US$21.35 billion in 2011. The company provides wireless voice, messaging and data services in the USA. The company normally operates GPRS/EDGE/GSM 1900 voice and data network. It also provides Wi-Fi wireless broadband networks that include roaming sites and 3G wireless broadband networks.

The T-Mobile company provides a wide range of products and services which include applications for mobiles and games, handset protection from loss, accidental damage, theft and malformations. Other services include wallpapers and voice mail services. In addition, the T-Mobile company provides wireless Internet access and other data services to the airports and retail businesses through its T-Mobile Hotspot Brand. The company also resells phones, PDA’s and electronic accessories from vendors such as Samsung and Nokia.

Organizational Structure and Functions of the T-Mobile Company

The organizational structure of T-Mobile Company is well split in the way in which chain of command works within the company. The company has the following departments: marketing, human resource, finance, design and production, administration, information technology department, and research and development. All these departments are head by managers who operate along the administrative department and report to the company’s chief executive officer.

The functions of these main departments in the T-Mobile company typically determine the organizational structure of the company. The marketing department functions in the T-Mobile company act as a guide and typically lead other department in developing, fulfilling and servicing its product and services to customers. This department conducts extensive market research to understand the market and customers’ needs in order to promptly advice the research and development department on the current customer’s preferences and needs in the telecommunication industry.

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Human resource department is another part of the T-Mobile company whose function influences the organizational structure of the company. The main responsibility of human resource in the T-Mobile company is the recruitment, training, selection and staff development. It plays a vital role in influencing the structure of the organization. This is because it normally has a mandate of developing staff in order to maximize their potential in a manner that furthers the T-Mobile company objectives.

The other key department that influences the structure of the T-Mobile company is the finance department. This department is responsible for keeping the records of the company revenue income and expenditure. This information is highly essential, since it is used to produce financial statement that helps the T-Mobile company make the decision that affects the structure of the organization. For instance, T-Mobile Company has issued a notice of its plan to lay off employees through consolidation and elimination of some departments in order to maximize its revenue.

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Verizon Company is a telecommunication firm that was formed by the merger of the NYNEX, GTE and Bell Atlantic. In contrast to the T-Mobile, in the organizational structure, Verizon Domestic Telecom reports to the vice chairman, who reports directly to the chairman and chief executive officer. Verizon Company is typically structured in five main components: enterprise, information technology, finance, retail markets and network services groups, which is much different to the organizational structure of the T-Mobile company.

Both AT & T and Verizon have common organizational difference with the T-Mobile. These two companies have evolved through acquisitions and mergers, a situation that has made these two company experience significant reorganization in their structure. The Verizon provides broadband Internet through fiber optic network, while the T-Mobile company provides wireless network to its customers through its T-Mobile Hotspot Brand. This marks another difference in organizational structure, since they provide similar services through different channels.

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Organization designs that help T-Mobile company suit its organizational needs

Even though there have been various things that have affected the organizational design of T-Mobile company in determining the structure that best suits its organizational needs, the following have markedly influenced its structure.

Matrix Organizational Design

This is an organizational design that T-Mobile has considered in streamlining its organizational design. It involves pooling people with similar skills and knowledge together, so that they undertake the same assignments in the company. T-Mobile utilizes both the functional and pure matrix, where, for example, the engineers in the company are pooled into one department, and they are made to report to an engineering manager. The engineers may be assigned to unalike projects by the senior management, and they may be mandated to report to different engineering managers or a project manager whereas working on that project.

This organizational design has been effective in T-Mobile for it has enabled the organization in attaining its needs. It has allowed the staff at the company to share information more promptly across the task boundaries, and it has also allowed specialization by increasing depth of knowledge thus allowing professional development.


Departmentalization has been of much significance in establishing the company’s organizational structure. T-Mobile has departmentalized its staff by grouping them into one area. This has increased effectiveness and efficiency by allowing workers to specialize in various areas of the company operations. It has enabled the company achieve its needs by ensuring that workers in the diverse departments, particularly those working in a product centered division of the organization, grow into experts in their products.


Having a well-organized structure is fundamental for a company that wishes to make progress on the business front. A magnificent structure will further help in increasing the operation efficiency and this will always be reflected on profits and revenue that the company gets. Hybrid organizational design has helped T-Mobile company in increasing its overall productivity.

Hybrid structure has two organizational designs or structures combined. It is essential in that it ensures that a company having more than one production line does not concentrate on one line. This combination also helps improve the daily functioning and efficiency in the company. In T-Mobile, hybrid has been instrumental by creating unity among staff members, decentralization of decision-making, flexibility and enhancing optimum use of resources. This has helped T-Mobile attain its organizational needs.

Marketing Channel

T-Mobile is the world’s sixth leading mobile communication business grounded on the sum of its subscribers and the third largest mobile multinational after Vodafone. The company is also operating in a highly saturated industry sector. Marketing channel design therefore becomes extremely vital in determining which structure best suits it so as to attain its organizational needs.

Marketing structure design has helped the company in the acquisition of new customers, increasing revenue from the existing customers, improving customer retention, reducing the recurring cost to the company and introducing new innovate and competitive products so as to retain its vast market share despite stiff competition within the mobile phone sector.

Geographical Organizational Design

A geographical organizational structure describes a functional and a reporting system across numerous locations. This design allows T-Mobile company offices to operate individually while adhering to the company's values and policies. For T-Mobile, this has been a success as each of the company's unit function as its own entity founded on where it is located.

Functional Organization Design

This is where the positions and functions of all employees are clearly specified with each one of them having to perform a specific function within the organization. T-Mobile, a company that provides one service to the people that is a mobile phone service, finds it useful to have functional organizational design to avoid any inconveniences that may arise as a result of misunderstanding of who is supposed to undertake a task in the company.



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