hrm 630 presentation organizational change

8/8/2019 HRM 630 Presentation organizational change

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The Organizational Change

in Chinas Telecom Company



The Organizational Change in Chinas Telecom Company

China¶ s telecommunication background

Organizational Change in Anhui Telecom Company

Impact of external environment and resistance to change

Impact of internal environment and resistance to change

Organization Development ( OD)

Conclusion

AGENDA




Before 1994, China Telecom operated as a state-owned telecom services

In 1994, introducing China Unicom

In 1999, the first restructuring, split China Telecom¶ s business into three

parts ; fixed-line, mobile and satellite which operated by China Telecom,

China Satcom and China Mobile respectively.

In 2002, the second restructuring, China¶ s telecommunication operated

by six telecommunications operators: The China Telecom, The China

Unicom, The China Mobile, The China Netcom, The China Railcom

(Tietong) and The China Satcom

E ntering WTO -- > forced to open market -- > break up the monopoliesand improve efficiency through competition

Thus, in May 2008, The six-telecom companies were merged to three

ones: China Telecom, China Mobile and China Unicom.

China¶s telecommunication background




2nd restructuring

2008

3nd restructuring

2002




a provincial telecom company, a wholly-owned subsidiary of China

Telecommunication Co., Ltd. has independent corporate status.

The business income and the user scale take the leading position

among its counterparts in the telecommunication operation

market of Anhui Province

Anhui Telecom Company (Anhui Telecom)




The difficulties :

o Backward mechanism and obsolete concepts. The enterprise has long been under

the monopoly environment, many operating mechanisms in the enterprise do not fit

the need of market change.

o Network preciseness is low and consciousness of innovation is not high.

o Many employees are unneeded, distribution encouragement mechanism is

unreasonable, labor productivity is low

Thus, In order to adapt to business transition, Anhui Telecom hasmade bold reforms in various aspects, such as business

integration, adjustment of organizational structure and system

innovation..

Organizational Change in Anhui Telecom Company



Left is before and Right is after the change structure.



A conceptual model of the organizational change in Anhui Telecom




Customers:

o More powerful, more choices

o The total number of subscribers (fixed and mobile) increased by over 15% in 2006,

reaching a figure of 811 million at the end of the year. Growth was especially strong in

the mobile sector, where there were 484 million subscribers in June 2007.

Domestic Market / Competition:

o Badly hit by the fixed-to-mobile substitution trend new services, especially broadband.

China Telecom had limited mobility fixed services, impact on overall revenues

o Upgrading the entire competition level of China's telecom industry.

Government / Regulations:

o F or elaborating regulations, allocating resources, granting licenses, and supervising

the competition, promoting research and development and service quality as well as

for developing tariff rates





International Market

o Chinese Government applied the policies to encourage, support and help China's

telecommunications equipment businesses path of internationalization


Technology:

o China's telecom industry could be more flexibility in providing customization in

products and comprehensive solutions, enhance product quality and Cost control

capabilities to compete with the international market

Suppliers

o More foreign telecom operators in the country will drive telecom equipment

investment in China.





Anhui Telecom¶ the transformation effect

o More sensitiveness to the market damage and change for the three centers

(a) Biz Navigator

(b) Integrated Information

(c) Multimedia (Mechanism)

o The customer consciousness of the three centers has been improved

substantially compared with the old mechanism.

o High organization support and distribution fairness will inspire the work

initiative of employees and improve work efficiency.






o The organizational transformation has enhanced the confidence of

employees in business prospect.

o The new mechanism is able to inspire the innovative consciousness of

employees

o Telecommunication work is busier, which is attributed to project responsibility.

E mployees need to work over time everyday and even at weekend.

o enhanced absorbability of personnel outside telecommunication system,

enriched the composition of Anhui Telecom¶ s personnel, and injected fresh flood.






o The penetration rate of platform business exceeds 40% with customer

satisfaction of 88%. The rural information network won the first-rate prize

of China Telecom.



The organizational Development in Anhui Telecom is mainly represented in the

following aspects :


Organization Development (OD)

11 Establishing professional operation supporting organs

22 Promoting new organs¶ position within organization

33 Implementing new rules in the new centers

Implement non-hierarchic management

Expanding the authorities of the general manager

Establishing flexible and diverse personnel selection mechanism

Setting up market-oriented employment mechanism

Setting up salary distribution mechanism in which income matches with

contribution and risk



The organizational change in Anhui Telecom is the consequence of change in

external competitive environment due to the change of rules and regulations

and development of information technology.

Faced with the dynamic environment, Anhui Telecom industry reintegrated its

organizational structure to inspire dynamic capabilities to develop itsorganizational capabilities, and changed regulation to form a high performance

system.

How to adapt to such changes and maintain sustainable competitive

advantage in the dynamic environment, the experience of Anhui Telecom inorganizational change merits reference.

Telecommunication industries should keep developing sector. To keep

developing, China¶ s government needs to follow international norms and

standards.


Conclusion

hrm 630 presentation organizational change

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