Baltic Journal of Economic Studies 103 Vol. 10 No. 2, 2024 This is an Open Access article, distributed under the terms of the Creative Commons Attribution CC BY 4.0 1 State University of Information and Communication Technology, Ukraine (corresponding author) E-mail: evtushenko.13.nat@gmail.com ORCID: https://orcid.org/0000-0001-8865-8365 2 State University of Information and Communication Technology, Ukraine E-mail: gudzee@ukr.net ORCID: https://orcid.org/0000-0002-9982-7328 3 State University of Information and Communication Technology, Ukraine ORCID: https://orcid.org/0000-0002-6863-2384 DOI: https://doi.org/10.30525/2256-0742/2024-10-2-103-112 ORGANISATIONAL CULTURE AS AN EFFECTIVE TOOL FOR MANAGING A TELECOMMUNICATIONS ENTERPRISE Natalia Yevtushenko1, Olena Gudz2, Anzhela Tiazhina3 Abstract. The purpose of the article is to study and clarify the substantive characteristics of organisational culture, to substantiate its relationship with the organisational design of enterprise. To determine the key factors of mutual influence on the formation of organisational culture and building of organisational design of a telecommunications enterprise. To assess the state of organisational culture of telecommunication enterprises and provide recommendations for its support, taking into account the functional features of its management. An analysis of the dynamics of the volume of products (services) sold by economic entities of Ukraine by type of economic activity for the period (2015, 2020, 2021, 2022) is carried out. Methodology. Economic and abstract and logical research methods were used in combination with methods of collecting sociological information: surveys and questionnaires. They made it possible to study the dynamics of development of enterprises by types of economic activity and assess the state of corporate culture of telecommunications enterprises. Results. According to the results of the analysis of statistical data, the decrease in the volume of products (services) sold by Ukrainian enterprises in the analysed period was revealed, regardless of the type of economic activity. The reasons for the deterioration of their activity have been clarified and the factors of mutual influence on the formation of the organisational culture and the construction of the organisational design of the telecommunications enterprise have been described. The state of the organisational culture of the telecommunications enterprises was assessed according to the relevant criteria within the framework of the questions. It was proved that organisational culture is an effective management tool. Practical implications. The study of the state of organisational culture of telecommunications enterprises in Ukraine proves the need to model the strategy of formation and development of organisational culture, taking into account internal opportunities and external threats that can accelerate or inhibit this development. The results of the assessment will help to make effective management decisions to improve the working environment and employee satisfaction. Value / Оriginality. It is recommended to take into account the functions of internal integration and external adaptation in the process of managing the organisational culture of a telecommunications enterprise. This is necessary to improve the working conditions of the company's employees and to establish effective interaction between the levels of management and employees. Keywords: organisational culture, management tool, organisational design, factors of mutual influence, evaluation, telecommunications enterprise. JEL Classification: М11, M12, M14 1. Introduction At the current stage of development of the world economy, significant organisational changes are taking place in the activities of economic entities. In today's conditions, the power of globalised communication networks is growing, and the possibilities of a secure virtual space for making management decisions are increasing. Company managers are increasingly using elements of artificial intelligence in individual business processes. This activates the intensification of the organisational and functional structuring of economic entities. The changes associated with the transition from technocratic to innovative management in the digital economy require constant adaptation to changing conditions and flexibility. Telecommunications Baltic Journal of Economic Studies 104 Vol. 10 No. 2, 2024 companies are no exception. They are forced to look for qualitatively new, effective tools to increase competitiveness and generate unique competitive advantages, taking into account a fundamentally new style of interaction between company employees and between the company and consumers. In such circumstances, the role of organisational culture in the overall development strategy of an enterprise becomes indisputable. It is represented by the norms and values shared by the vast majority of the company's employees. This explains the relevance of this study. 2. Literature Review Theoretical Aspects of Organisational Culture Concept Formation In the scientific publications of prominent foreign and Ukrainian scientists, the issue of formation and implementation of organisational culture in the activity of enterprises has received considerable attention. However, the formation of the concept of "organisational culture" in the enterprise management system implies the emergence of the very concept of "culture" at the enterprise level. The concept of culture has been the subject of considerable scholarly debate over the past thirty years, and there are various approaches to defining and studying cultures (e.g., those of the following scholars: Hofstede, 1991; Trice and Beyer, 1993; Schultz, 1995; Deal and Kennedy, 1999; Cameron and Quinn, 1999; Ashkanasy, Wilderom, and Peterson, 2000; and Martin, 2002). Foreign scholars have done a lot of research on the meaning of corporate culture as a concept. But at the same time, it has created difficulties for both scholars and practitioners. When the definition is unclear and the usage is inconsistent. This has contributed to the emergence of a new view of corporate culture as organisational culture. The concept of organisational culture was given an important place in organisational theory. At that time, the importance of organisational culture was substantiated in the works of famous foreign scientists. It is necessary for the successful functioning and development of any company. For example, Gert Hofstede (Hofstede, 1991) sees the concept of 'organisational culture' as a collective programming of thoughts that distinguishes members of an organisation from others. This means that each organisation can have its own unique values, principles and beliefs that determine its specificity and way of life. University of Houston researchers R. Blake and D. Mouton (Blake & Mouton, 1994) proposed a typology of organisational cultures based on vectors of value orientations: leaders of the organisation to achieve high economic results and individuals to realise their abilities. Based on the International Institute for the Development of Management in Lausanne, D. Denison (Denison & Mishra, 1995) studied the relationship between the characteristics of organisational culture and organisational effectiveness. A well-known foreign researcher, Edgar Shein (Shein, 2004), characterises the "organisational culture of the company" as a set of principles of external adaptation and internal integration of employees. In researching the nature of "organisational culture", E. Shein draws attention to the need for managers to be "competent in cultural analysis". This is when a manager has the ability to perceive and decipher the cultural forces at work in groups, organisations and professions. In the future, American researchers improved their views on the organisational culture of the company. Thus, K. Cameron and R. Quinn (Cameron & Quinn, 2006) proposed administrative (hierarchical type) and market types of organisational cultures, which compete in terms of their values and need to be eliminated in order to improve the efficiency of the company. Despite the fact that the concept of organisational culture has undergone significant development and general recognition in the developed countries of the world. It has remained virtually unknown and unexplored by local scholars. In a general sense, the organisational culture of a company can be seen as a system of values and norms that determines the behaviour and interaction of employees in the work process. Hence, L. Lazorenko (Lazorenko & Panasenko, 2021) describes organisational culture from the perspective of a behavioural approach. He defines organisational behaviour as the result of the intersection of two forces – subordinate ("top-down" behaviour) and coordinating (alignment of interests of units) organisational forces. The correct relationship between them in time and space determines the organisational management system and the organisational culture. M. Semikyna (Semykina, 2009) presents the importance of the concept of "organisational culture" as a system of values, norms and models of behaviour that are declared, shared and implemented in practice by managers and employees of the organisation. This is necessary for effective adaptation to the needs of the internal development of the enterprise and the requirements of the external environment. I. Simenko (Simenko & Byelousova, 2011) characterises "organisational culture" as a set of moral and ethical values, beliefs and rules. They organise the behaviour of employees in order to ensure the effective functioning of the company within the framework of this organisational structure. Baltic Journal of Economic Studies 105 Vol. 10 No. 2, 2024 This emphasises the importance of the system of values and norms in shaping organisational culture. This determines not only the efficiency of employees, but also the moral and ethical level of the company. N. Yevtushenko (Yevtushenko, 2020) completes the theoretical research on the content of the concept of "organisational culture" from the point of view of optimal management approach. In her opinion, the "management of the organisational culture" of the enterprise should be understood as a conscious and deliberate improvement of any actions in the culture of the enterprise in accordance with the values and functions of internal integration and external adaptation. It is effective in constant interaction with the internal and external environment, which is constantly changing. The analysis of the publications on the mentioned issues leads to the conclusion that in Ukraine the research on the issues related to the formation of organisational culture and its management is just beginning. Therefore, there is an objective need for further development of theoretical and methodological research on organisational culture as an effective tool for management of a telecommunications enterprise. The purpose of the article is to study and clarify the substantive characteristics of organisational culture, substantiate its relationship with the organisational design of enterprise. To identify the key factors of mutual influence on the formation of organisational culture and the construction of organisational design of a telecommunications enterprise. To assess the state of organisational culture of telecommunication enterprises and provide recommendations for its support, taking into account the functional features of its management. 3. Organisational Culture of a Telecommunications Enterprise and its Relationship to Organisational Design Modern telecommunications companies face the challenge of both providing high-quality information and communication services and creating a favourable working environment for their employees. The organisational culture of an enterprise has a broad context, as it is responsible for the general atmosphere of the enterprise, its mission, objectives, values, management decision-making mechanisms, behavioural patterns, communication chains, traditions, rituals, leadership, workplace characteristics, etc. However, in addition to the above, an important characteristic of organisational culture is its positive impact on the economic indicators of the company. A group of foreign scientists (Peters & Waterman, 1982) proves that organisational culture is equated with "an important tool for influencing the economic efficiency of an enterprise". Other scientists (Davila & Epstein M., Shelton, 2006) justify it because "organisational culture as a whole is the most important part of the company, which coordinates its activities and allows to achieve performance indicators". According to Ukrainian scholars (Kravchanko & Nykyforenko, 2013), "corporate culture" is not a separate component of the company, but a key factor in achieving success and stability of the company's activities. Thus, it is proposed to understand the concept of "organisational culture" of an enterprise as an important tool for influencing the economic efficiency of an enterprise. It is formed by a set of moral and ethical values, beliefs and rules that organise the behaviour of employees in accordance with the needs of the internal development of the enterprise and the requirements of the external environment. At the same time, the formation of an organisational culture requires an adequate organisational environment in the activities of telecommunications enterprises. This requires the development of a flexible organisational design with effective communication chains and information channels. That is, researchers sometimes equate the development of organisational design with the formation of the organisational culture of the enterprise. Van Vulpen E. (2023) proves that organisational design is a flexible and adaptive tool for achieving strategic development goals. It is characterised as a process of administration and implementation of the strategic plan of the enterprise. Daft R. L. (2021) holds a separate view. In his opinion, the process of organisational design should be understood in terms of the mechanism by which managers create a certain type of organisational structure and culture. This will help the company operate as efficiently and effectively as possible. According to N. Stanford (2007), first, goals, objectives and strategy are formed in accordance with the challenges and opportunities of the internal and external environment of the enterprise. Then the organisational structure is adapted to achieve these goals. Under such conditions, the strategy of organisational culture is crucial for the optimal configuration of organisational design. The formation of the modern organisational design of the enterprise takes place without the development of a clear programme, not consistently, but intuitively and fragmentarily. It is interesting that at the initial stage of development the organisational design covers a small number of management levels, where there is a lack of formal rules, procedures and regulations. Later, however, the functionality of the organisational design expands and later it organically fits into the business processes of the organisation. Network, project, matrix and capsule organisational structures Baltic Journal of Economic Studies 106 Vol. 10 No. 2, 2024 are widely used. They are considered flexible and adaptable (Hudz' & Tyazhyna, 2023). Modern organisational design gives a tele- communications company the opportunity to prepare for crisis processes and unexpected challenges. This is necessary in order to achieve stable and profitable operations through organisational flexibility, strategic adaptability, mobility of resources, adequacy of responses, harmonisation of organisational behaviour and organisational culture. Thus, the concept of "organisational design" is a creative method, quality process and result of the organisational design of an enterprise and its subsystems. It focuses on the adequacy of organisational structures, communication chains, information channels in accordance with the capabilities and needs of the enterprise. At the same time, organisational design characterises the formal qualities of the enterprise, its interactions, value orientations, personnel competencies, structural and functional communication. All this confirms the interconnection and interaction of organisational design with the organisational culture of the enterprise. The process of forming an organisational culture and building an organisational design of a telecommunications enterprise is complex and multilevel. 4. Assessment Methodology 4.1. Factors Influencing the Formation of Organisational Culture and Development of Organisational Design of a Telecommunications Enterprise In the process of studying the peculiarities of development of the telecommunications services market, the article studies the volumes of services provided and interaction of business entities. In the course of which the factors of influence faced by telecommunications companies were selected. The volume of products (goods, services) sold by business entities by type of economic activity for the period (2015; 2020; 2021; 2022) is shown in Figure 1. The analysis of statistical data for the period (2015; 2020; 2021; 2022) shows a decrease in the volume of products (services) sold by Ukrainian enterprises, regardless of the type of economic activity. The main reason influencing the volume level is the inflation caused by crises: socio-economic, COVID-19, political, military. The imbalance of these periods aggravated the difficult economic situation of Ukrainian enterprises, which resulted in the decline of their business activity and the increase in the prices of goods (services). In addition, Russia's large-scale armed Figure 1. Dynamics of turnover of business entities by type of economic activity (2015; 2020; 2021; 2022) Source: (State Statistics Service of Ukraine, 2015; 2020; 2021; 2022) Constr ucti on Rea l e sta te opera tio ns Baltic Journal of Economic Studies 107 Vol. 10 No. 2, 2024 aggression against Ukraine, which began in February 2022, created problems for the export of finished products (goods, services). These circumstances made Ukraine dependent on the external situation in the domestic market. As a result, wholesale and retail trade, as well as industry, remain the main GDP generating sectors. They account for the largest share in the structure of the volume of products (services) sold and make up approximately half of the total. As for the information and telecommunications market, the share of services sold by telecommunications companies decreased significantly during the study period: from 12.2% in 2015 to 3.5% in 2021 and to 3.5% in 2022. After 2023, the volume of services sold by telecommunications companies begins to grow, but slowly. All Ukrainian telecoms companies faced the challenges of the war. According to the survey, only 33.7% of companies managed to adapt to the new realities of war. This means that only a third of the companies prepared for difficult business conditions: bought generators in case of blackouts, used cloud technologies to host their key systems, moved their offices to western regions, diversified the network of providers, etc. The research conducted by O. Hudz' and A. Tyazhina allows to determine the key factors of mutual influence on the formation of the organisational culture and the construction of the organisational design of a telecommunications company (Hudz' & Tyazhyna, 2023): – Mission, values, goals, objectives, strategies of the enterprise; – the scope of the company's production activities; – organisational form of the enterprise; – the trajectory and speed of the company's strategic development; – parameters and scale of the enterprise; – intensity of competition and market conditions in the industry; – level of digitisation and automation of business processes at the enterprise; – resistance to organisational transformation; – the degree of integration of the enterprise into various business structures; – existing organisational behaviour; – regulatory acts governing the company's business activities; – competencies and professional level of managers and executives; – creativity, vision, innovation, conviction, ambition, and perseverance; – phases of the enterprise life cycle; – staffing the units with the necessary qualified personnel; – traditions of organisational culture. O. Hudz' and A. Tyazhyna (2023), with the help of an expert survey and mathematical processing of the results, determined the weighting indices of the mutual influence of the considered factors on the formation of the organisational culture and the construction of the organisational design of a telecommunications enterprise. The biggest interconnection for domestic telecoms companies includes the following: – Mission, values, goals, objectives, strategies of the enterprise (0.947); – level of digitisation and automation of business processes at the enterprise (0.943); – parameters and scale of the enterprise (0.938); – competences and professional level of managers and the company's leadership, their creativity, vision, innovation, conviction, ambition and perseverance (0.934). The least important were the interconnection factors: – Staffing of departments with the necessary qualified personnel (0.412); – regulations governing the company's business activities (0.467); – intensity of competition and market conditions in the industry (0.532). The peculiarities of the organisational culture of telecommunications companies and the increase in their role cause changes in the interactions of all contact groups. They gradually change the quality of their cooperation and partnership. By creating stable interactions, relationships and communication chains within a telecommunications company, organisational culture generates its organisational potential. This will help the company to survive in the conditions of crisis shocks and to develop after military operations on the basis of unique competencies and additional competitive advantages. 4.2. Assessing the State of Organisational Culture of a Telecommunications Enterprise The organisational culture of a telecommunications company is characterised by its strategic nature and its focus on the professionalism and competence of its employees. For this reason, successful telecommunications companies "are characterised by the presence of an appropriate culture and way of thinking; they train and retain employees who have the necessary competences; they strive for the correct behaviour of their employees" (Palahuta, 2020). In order to assess the state of the organisational culture of the telecommunications company, the following methods of collecting social information were used: employee surveys and questionnaires. The assessment was carried out among the employees of three telecommunications companies according to the relevant criteria within the framework of questions, the results of which are presented graphically. A total of 94 employees participated in the survey. The main research questions are as follows: Baltic Journal of Economic Studies 108 Vol. 10 No. 2, 2024 – Does the company's work meet your expectations? – What do employees dislike about the company? – What are the traditional events held in your company that have a positive impact on the formation of organisational culture? – How would you rate the psychological climate in your team? The answers to the first question are presented in the form of a diagram (Figure 2). The survey of telecoms employees found that 67% of them gave a positive answer to the question of whether they were satisfied with their jobs. Another significant proportion of respondents (20%) said that their expectations did not match the work they were doing. This may indicate that they may have doubts or dissatisfaction with their work in the company. It was also found that a small proportion of employees (13%) of enterprises indicated that they found it difficult to answer the question about job satisfaction. Employees believe that they need more time for analysis to give an accurate answer. To the second question, "What do employees dislike about the company's activities?", the answers of employees differ by category: unsatisfactory salary; unsatisfactory working hours and rest periods; health insurance for employees at the expense of employees; monotony of work (Figure 3). The survey found that more than 37% of respondents had experienced instability in working hours and rest periods. The respondents noted that the working time does not take into account the personal needs of the employees and their lifestyle. Almost 31% of respondents said that they were not satisfied with the amount of wages, taking into Figure 2. Structure and share of answers to the question: "Does the company's work meet your expectations?" Source: built by the authors Figure 3. Structure and response rate to the question: "What do employees dislike about the company's activities?" Source: built by the authors Baltic Journal of Economic Studies 109 Vol. 10 No. 2, 2024 account the difficult conditions of today and the state of war. Workers noted that the amount of wages does not correspond to the amount of work performed. The reason for the workers' dissatisfaction is the desire to receive more income for their work. A separate part of employees (20%) notes the monotony of work, which is created in the process of routine work, lack of involvement in the work process, imagination and creative approach, physical overload. A smaller part of respondents (12%) does not like the fact that the employees' health insurance is paid for by the employees themselves, which can undermine trust in the company's management. In response to the next question, "What are the traditional events held in your company that have a positive impact on the formation of organisational culture?", the answers of the employees of the companies fell into the following categories (Figure 4): – Corporate event; – personal holidays of employees; – sports competitions; – advanced training; – workshop; – meetings with the team (Free Fun format); – eco-team building. The results of the survey of employees of telecommunications companies show that the collectives have a positive attitude towards a healthy lifestyle and improving the ecological space. A significant part of employees (21%) prefers eco-team building, active recreation – participation in master classes (16%) and sports initiatives (10%). Some employees believe that company parties (15%) and team meetings (Free Fun format) (11%) have a positive impact on the state of the organisational culture of telecommunications companies and its further development. These events give employees the opportunity not only to communicate with colleagues outside the company. They also have the opportunity to share experiences and new ideas with colleagues, to extend professional contacts and to make new contacts. In addition to the above, a large part of respondents (22%) consider it necessary to expand and deepen previously acquired professional knowledge, skills and abilities to the level of requirements of the production or service sector with the help of trainings (courses) for professional development. To the last question, " How would you rate the psychological climate in your team?", the answers of employees fell into the following categories (Figure 5): – The team works well together, but the relationship doesn't work out after the workday; – employees are constantly in conflict; – the team is divided into competing groups; – relations in the team are friendly, but the manager creates tension; – relations in the team are friendly thanks to the manager; – it is difficult to answer. The results of the survey of telecoms employees show that the team has a positive psychological climate and friendly relations prevail. This was stated by over 53% of respondents. Only 9% of surveyed employees believe that relations in the team are friendly, but that management creates additional tension. This may indicate that employees have a positive attitude towards each other, but communication and interaction with employees is not managed effectively enough. Some employees (13%) of enterprises claim that the team works quite well together, but there are no Figure 4. Structure and response rate to the question: "What are the traditional events held in your company that have a positive impact on the formation of organisational culture?" Source: built by the authors Baltic Journal of Economic Studies 110 Vol. 10 No. 2, 2024 relationships outside of work. This may indicate that employees communicate only about work and do not feel the need for everyday contacts. Under such conditions, only a small proportion of employees (3%) of enterprises claim to have conflicts arising in the course of their duties. A small proportion of respondents (3%) explain such confrontation between employees by dividing the team into separate groups. Thus, the results of the assessment indicate that employees of telecommunications enterprises have a positive attitude towards the previous state of organisational culture. Based on the results obtained, the management of the enterprise can model a strategy for the formation and development of organisational culture, taking into account internal opportunities and external threats. This will accelerate or slow down the development of telecommunications enterprises. It is advisable to conduct an organisational culture assessment every six months. This will help to identify potential problems and difficulties that employees may face in a timely manner and help to create a friendly working atmosphere in the team. This is necessary to improve the working conditions of the company's employees and to establish effective interaction between management levels and employees. In the future, this will affect the efficiency of the telecoms company and its profitability. 5. Recommendations Foreign practice shows that companies in the telecommunications industry that consider organisational culture as a strategic asset are more successful. Unfortunately, only large domestic telecommunications companies pay sufficient attention to organisational culture, and others have not yet realised its role and importance. More often, the process of forming an organisational culture is difficult and slow, mainly under the influence of the company's leaders. This requires the use of management mechanisms. According to the views of scientists (Hudz' & Tyazhyna, 2023) notes that the development of organizational culture in the enterprise management system involves the implementation of a number of activities. These include: optimization of the structure and internal organisation of the enterprise; formation of organisational systems and procedures; support of organisational customs and rituals; development of organisational design; preservation of the history of important events and people; formation of the conceptual foundations of the general organisational philosophy of the enterprise. In this connection, N.O. Yevtushenko (Yevtushenko, 2020) recommended taking into account management functions in the process of managing the organisational culture of a telecommunications enterprise: 1) Internal integration. – Organisational (values of the external environment formed by the company's management); – integrating (uniting the interests of the company's employees, creating a sense of belonging, identity, and involvement); – regulatory (ensures controllability and predictability of the behaviour of the organisation's members); – substitution (meaning governance in which formal, official governance mechanisms can be replaced); – adaptive (defines the conditions for the assimilation of new cultural values by newcomers); Figure 5. Structure and share of responses to the question "How would you rate the psychological climate in your team?" Source: built by the authors Baltic Journal of Economic Studies 111 Vol. 10 No. 2, 2024 – educational and cognitive (focuses employees on continuous development and professional self- improvement); – motivating (conveys a sense of belonging and involvement in the company's noble mission, which increases the level of employee motivation); – communicative (promotes the acquisition of behavioural norms and means of communication by the company's employees, which helps to facilitate quick mutual understanding, perception of information and its homogeneity during interpretation); – quality management (creates a sense of involvement and belonging to the company among employees, which inevitably creates a level of responsibility for the quality of the product or service); – recreational or "therapeutic" (meaning that the organisational culture contributes to the creation of psychological comfort among employees and the restoration of their mental strength); 2) External adaptation. – Innovative (involves the constant search for innovations that ensure the competitive advantage of the enterprise); – formation of a positive image (defines the creation of a favourable impression of the company in society); – customer orientation; management of partnerships (fosters a respectful attitude towards business partners); – adaptation of the enterprise to the needs of society (ensures the integration of the enterprise into social structures). 6. Conclusions Thus, according to the results of the study, it was proved that organisational culture is an effective tool for managing a telecommunications company. It is proposed to understand the concept of "organisational culture" of the enterprise as an important tool of influence on the economic efficiency of the enterprise, which is represented by a set of moral and ethical values, beliefs and rules. They organise the behaviour of employees according to the needs of the internal development of the company and the requirements of the external environment. The expediency of determining the interrelationships between factors for making management decisions on the formation of organizational culture and the construction of an organizational design for the post-war reproduction of a telecommunications enterprise is argued. This will contribute to the search for reserves and opportunities for increasing its efficiency and harmonisation. 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