An Operational Efficiency Analysis for Organizational Consolidation in the Business Operating Departments of a Case Telecom Company

This study focuses primarily on the business operating departments (hereinafter, DMUs) of a case telecom company (hereinafter, the Company) in the northern and eastern areas of Taiwan. In 2007, the Company finished the first stage of its reorganization by consolidating 14 DMUs into 12. In 2011, the Company completed the second stage of its reorganization by consolidating the 12 remaining DMUs into 8. This study intends to explore the effects of each stage of the Company’s reorganization on the efficiency and ranking of the various DMUs. The results show that the DMUs became more efficient after each stage of the Company’s reorganization. Moreover, the efficiency and ranking of the new DMUs, A6, A7, and B7 increased post-consolidation. This suggests that both the first and second stages of the reorganization were necessary. The findings of this study could help the Company and other telecom companies to design strategies for the future consolidation of other units, and thereby maintain their competitiveness and continued growth.