New World PCS Limited
Company Background
Launched in 1997, New World Mobility offers a wide range of quality,
value-for-money GSM mobile services including voice services, customized
value-added services and mobile prepaid services. New World deployed the EDGE –
Enhanced Data Rates for GSM Evolution network and introduced the Push-to-Talk
over Cellular service Press 'n Talk last 2004; ‘Video-on-the-move’ video
infotainment service last 2005 and ‘Mobile ESPN’ as well as ‘Bubble Talk’
services during June and July 2006 respectively. Thus, New World PCS Limited are
wholly owned by the merged entity CSL New World Mobility Group, which was
established in April 2006. The major shareholders of CSL New World Mobility
Group are Australian Telecommunications Company Telstra Corporation Limited and
New World Mobile Holdings Limited.
The company is principally engaged in offering
superior mobile services including voice service and customized data services
tailored to the specific needs of individual customer groups via advanced mobile
technology. Operating under the brand name of New World Mobility (NWM), there
has emerged to become a leading mobile operator since its inauguration during
the year 1997. Through the provision of superb quality mobile network and the
introduction of various innovative and value-added mobile data services, the
operator has further reinforced its position in the marketplace. There was
challenge of changing cost structures would be difficult enough to adapt
corporate strategies and national regulations in and of itself. But there are
some complicating factors, such as the increasingly global character of the
provision of telecommunications services. The company is doing more than
sustaining their own platforms, they are expanding platforms across economic and
political borders, the challenge of increasing the scope of services is just as
significant as lowering the costs of service. Integrating those systems into
global networks is certainly critical for the management of each of these
companies. Common approaches to marketing, infrastructure development and
service integration will provide economies of scope and scale and common
infrastructure purchase will reduce the unit cost of equipment supply and
responses to change that are integrated into an overall corporate strategy.
Identify the issue
Aside, NWPCS has ceased to be a
subsidiary of NWD and NWM while New World Mobility will be embarking on an
exciting and historical phase of development.
‘We are
thrilled to announce the completion of the merger, one of the most substantial
moves in the Hong
Kong mobile industry. The merger creates enormous opportunities and brings about
synergies for both companies for further growth,’ said Dr , Managing Director of
New World Group and Chairman of NWM. The merged company is Hong
Kong’s number one mobile operator in terms of revenue, profitability and
customers, with a 34 percent customer market share. NWPCS will be retained as
they enjoy strong brand recognition across key
market segments. In order to
enhance the profitability of the New World PCS business customers, New World is
dedicated to providing customers with a series of innovative and tailor-made
wireless solutions and to supporting them with the company’s wide range of
professional services and network expertise.
Principally engaged in offering
superior mobile services including voice service and customized data
services,
New World Mobility has emerged to become a leading mobile operator since its
inauguration in 1997.
Through the provision of superb quality
mobile network and the introduction of pioneering data services, New World
Mobility is leading the market into the world of next generation mobile
communications.
For the six months, ‘NW Mobile’ recorded a
turnover of HK$859 million, representing a 1 percent increase from approximately
HK$848 million for the corresponding period last year. The turnover of the Group
mainly comprised mobile communications services revenue and sales of handsets
and accessories. Due to intense competition of the mobile communications market,
revenue from mobile communications services for the current period amounted to
approximately HK$669 million, representing a 10% decrease from approximately
HK$742 million for the corresponding period last year. Dr. , Chief Executive
Officer and Executive Director of New World Mobile Holdings Limited, says,
“Although 3G operators rolled out respective services last year an lured users
with various promotions that intensified the already fierce market competition,
causing revenue from mobile communications services of the Group to decrease by
10 percent, the Group managed to maintain a steady income, thanks to the
increasing roaming revenue from mainland tourists as well as the growing revenue
from mobile data services and handset sales.” The Group launched various
marketing offers to maintain its competitiveness, including giving extra
communications minutes away to voice plans and offering rebate to new
subscribers who were porting into the mobile network of NW Mobile, which
resulted in the decline of post-paid ARPU (Average Revenue per User) from HK$189
in the last period to HK$171 in the current period. Faced with intense market
competition, the Group managed to record an increase in the subscriber base of
its mobile communications services.
The company is wishing to define a global
presence for themselves in the telecommunications market will have to address
the interests of each of these stakeholder groups. With the increased degree of
coordination among nongovernmental organizations throughout the world interested
in issues like environmental policy, labor relations, the quality of customer
service and other areas of corporate citizenship, defining global corporate
priorities will be a critical part of a company's success. The process of the
telecommunications jungle is rapidly evolving as well, moving quickly away from
the undifferentiated substance of plain old telephone service. In fact, there
are almost as many theories about how to use the rich natural resources of this
competitive jungle as there are new technologies, companies, and government
regulators emerging on the scene. The dynamic of change has irrevocably altered
the path of telecommunications development and requires a reexamination of the
sustainability of telecommunications infrastructures in this new environment. In
this regard, the analogy to the sustainability of the jungle is apt and timely.
The rainforest, much like a telecommunications network, is a resource. People
draw on that resource for the purposes of development. Given the right
conditions, the ecosystem can thrive and provide riches for those who protect
the forest's sustainability but, then humans come along and mess it all up.
Slash and burn policies take away from the viability of institutions.
Recommendation
The company should continue to devote in
offering advanced and pioneering multi-media
mobile solutions in order to
fulfill and exceed the expectations of mobile users.
New World Mobility’s quality mobile
services are provided by New World PCS Limited, a wholly-owned
subsidiary of New World Mobile Holdings
Limited (: ).
As a leading mobile operator, New World is
committed to providing customers with a wide array of integrated, innovative
and quality mobile services such as the following: M kee Multimedia Value-added
Services that includes Download Star-ball Games World Star Mobile Info Box:
That’s Entertainment: Connecting Tone, K on the move, Sports Addict, Mobile
Betting, Spread the Word: Short Message Service, Sight’n Sound MMS and others.
Other Services: Homecare Mobile Viewing Service Online Now: WAP dial-up,
High-Speed Internet Access and X-Access Value-added services, such as call
forwarding, call waiting, caller number display, voice mail as well as BIS.
Miscellaneous: SIM Phonebook Copy/Back-up Service IDD and Roaming Itemized Bill
In addition, New World Mobility offers a wide range of handsets and service
plans that fit customers’ needs.
Apart from its great success in attracting new
subscribers, the Group managed to maintain its churn rate at 2.8 percent, on a
par with market level, by offering various contract-binding promotions to
existing customers and putting continuous effort in excelling its services.
During the period, the Group leveraged the great potential of the mobile prepaid
market and put immense effort in exploring this unique market. Having launched
various theme-based prepaid SIM cards to different market segments, the Group
saw a substantial increase in prepaid subscriber number during the period. As
compared to the corresponding period last year, revenue from sales of mobile
handsets and accessories for the period was approximately HK$186 million,
representing a 75% surge as compared to approximately HK$106 million in the last
period. However, as the gross profit margin from mobile handsets and accessories
sales is relatively low, and with the decline of ARPU, the Group’s gross profit
decreased by 8 percent to HK$436 million as compared to the corresponding period
last year. As part of the Group’s commitment in improving operational efficiency
and effectiveness, the Group has exercised stringent control over operating
expenses, excluding depreciation. The Group will strengthen its position in the
market by further developing roaming services and providing mobile users with
pioneering data services that exceed their expectations through GPRS/EDGE
network and also explore new revenue streams including looking for business
expansion to overseas mobile communications markets.
The aggressive pricing strategy of 3G services
and handsets has intensified the already fierce market competition and adversely
affected local operators’ bottom line notwithstanding the improving economic
situation. Even though the market situation was unfavorable, the Group managed
to maintain a steady income, thanks to the increasing roaming revenue from
mainland tourists as well as the growing revenue from mobile data services and
handset sales. Despite the expiration of contract with a mobile virtual network
operator in October 2004, the subscriber base of the Group has increased to over
1.3 million by the end of 2004. The Group has remarkable achievement in
exploring new market segments and extending its market reach by using customer
segmentation strategy. During the period, the Group leveraged the great
potential of the mobile prepaid market by launching various theme-based prepaid
SIM cards to different market segments, including Avenue of Stars Commemorative
Stored-value Card and Roaming Stored-value Card for mainland tourists.
The Group has further extended its reach to young mobile phone users by
enriching the content of its well-received Star Mobile and launching the
first-ever Disney Character mobile prepaid SIM card marie Fantasy in
August 2004 and with the aim of providing superb communications services to Hong
Kong mobile users, the Group will put continued effort in upgrading its network
quality. As a dedicated service provider, the Group will continue to excel its
customer servicing and provide mobile users with pioneering data services that
exceed their expectations.
Amidst intense competition of the mobile
communications market, the Group aims at maintaining its level of market share
and improving the ARPU by introducing more exciting mobile data services via
advanced mobile technologies. The Group will continue to exercise various
measures to contain costs and explore new revenue streams. The Group will also
look for business expansion to overseas mobile communications markets. Despite
the latest launch of 3G services in the local market, the Group believes that in
partnership with renowned content providers to provide mobile users with
innovative data services via its existing GPRS/EDGE network is the most
cost-effective way to stay competitive, and is in the best interest of customers
and shareholders.
D. Implementation
Strategy change
In
marketing,
product differentiation is the modification of a
product to
make it more attractive to the
target market.
This involves differentiating it from
competitors'
products as well as one's own product offerings with the conditions for
perfect competition,
which include the requirement that the products of competing firms should be
perfect substitutes
The changes are usually minor; they can be merely a change in
packaging or a
change in
advertising
theme. The physical product need not change, but it could. The major sources of
product differentiation to be applied by the company are as follows.
Ø
Differences in
quality or
design among output
Ø
Ignorance of
buyers regarding the essential characteristics and qualities of goods they are
purchasing
Ø
Pervasive sales
promotion
activities of sellers and advertising
Ø
Possibility of
developing significant product differentiation through advertising is greatly
enhanced
Ø
Differentiation in the
locations of sellers of the same good where the product fills no technical
function but rather can satisfy many different sort of personal needs
The
objective of
this strategy is to develop a
position that
potential customers will see as unique. If the company’s target market sees
their product as different from the competitors then, New World will have more
flexibility in developing your
marketing mix.
A successful product differentiation strategy will move their product from
competing based primarily on
price to
competing on non-price factors. Differentiation has been shown to impact firm
performance positively both theoretically and empirically. Differentiation
primarily impacts performance through two mechanisms:
Ø
Reduced price
sensitivity: Consumers may become willing to pay a premium price for the
differentiating factor/s
Ø
Reducing directness of
competition: As the product becomes more different, categorization becomes more
difficult and hence draws fewer comparisons with its competition
Cost Leadership Strategy
The type of strategy emphasizes
efficiency by producing high volumes of standardized
products, the
firm hopes to take advantage of
economies of scale
and
experience curve effects.
The product is often a basic no-frills product that is produced at a relatively
low cost and made available to a very large customer base. Maintaining this
strategy requires a continuous search for cost reductions in aspects of the
business. The associated distribution strategy is to obtain the most extensive
distribution possible. Promotional strategy often involves trying to make a
virtue out of low cost product features.
To be successful, the strategy
usually requires a considerable market share advantage or preferential access to
raw materials, components and products without one or more of these advantages,
the strategy can easily be mimicked by competitors.
Successful implementation also
benefits from:
Ø
process engineering
skills
Ø
products designed for
ease of manufacture
Ø
sustained access to
inexpensive capital
Ø
close supervision of
labour
Ø
tight cost control
Ø
incentives based on
quantitative targets.
Differentiation Strategy
Differentiation involves creating a
product that is perceived as unique. The unique features or benefits should
provide superior value for the customer if this strategy is to be successful as
customers see the product as unrivaled and unequaled, the
price elasticity of
demand tends to be reduced and customers tend to be more
brand loyal.
This can provide considerable insulation from competition but, there can be
added costs associated with the differentiating product features and this could
require a premium pricing strategy.
In order to
maintain this strategy the New World should have:
Ø
strong research and
development skills
Ø
strong product
engineering skills
Ø
strong creativity
skills
Ø
good cooperation with
distribution channels
Ø
strong marketing skills
Ø
incentives based
largely on subjective measures
Ø
be able to communicate
the importance of the differentiating product characteristics
Ø
stress continuous
improvement and innovation
Ø
attract highly skilled,
creative people
’s (1980)
Source of Diagram:
from
Culture structure
A primary reduction is achieved when restricting
attention to cultural domains in which implications are unidirectional: once we
know that X implies Y, workers do not need to ask if Y implies X and the number
of potential questions is reduced by half. The study of serial events
constitutes a special case which offers additional opportunities for reduction
in questioning. It can be assumed that later events are not prerequisites for
earlier events, so one only has to determine which old elements are implied by
the new element and half the conceivable questions are eliminated from
consideration.
Theory X - authoritarian, repressive style.
Tight control, no development. Produces limited, depressed culture
The management assumes employees are
inherently lazy and will avoid work if they can. Because of this workers need to
be closely supervised and comprehensive systems of controls developed. A
hierarchical structure is needed with narrow
span of control at each level. According to this theory employees will show
little ambition without an enticing incentive program and will avoid
responsibility whenever they can.
Theory Y - liberating and developmental.
Control, achievement and continuous improvement achieved by enabling, empowering
and giving responsibility
The management assumes employees are
ambitious, self-motivated, anxious to accept greater responsibility, and
exercise self-control and self-direction. It is believed that employees enjoy
their mental and physical work activities. It is also believed that employees
have the desire to be imaginative and creative in their jobs if they are given a
chance. There is an opportunity for greater productivity by giving employees the
freedom to be their best.
Source:
Leadership
The Leadership Grid is a very simple framework
that elegantly defines the basic styles that characterize workplace behavior and
the resulting relationships. The seven managerial Grid styles are based on how
two fundamental concerns are manifested at varying levels whenever people
interact.
Source of Diagram:
Grid Relationship Skills
The Grid theory translates into practical use
through Grid style relationship skills that people experience day in and day out
when they work together. These relationship skills depict the typical and vital
behaviors for each style that make relationships effective or ineffective. Some
behaviors strengthen and motivate teams while others obstruct progress.
Grid theory makes behaviors as tangible and
objective as any other corporate commodity. By studying each of the seven
Leadership Grid styles and the resulting relationship skill behaviors, teams can
examine, in objective terms, how behaviors help or hurt them. They can explore
types of critique that work best for them and why. They can openly discuss how
to improve decision-making and conflict resolution skills. These and other
subjects usually considered "off limits" in terms of productivity are the very
subjects that usually impede productivity. The Grid approach makes these
subjects not only "discussable" but measurable in objective terms that generate
empathy, motivation to improve and creativity.
It is crucial for the company to implement the
grid theory for the staff as they are often reluctant to explore its benefits as
the company should implement the Grid Leadership Seminar but extensive research
and development has trimmed the seminar to the absolute minimum length it can be
and still produce its unique results. Yet as more is learned about individual
and organization effectiveness, the timelessness of the Grid has become
apparent. Management will be able to develop a mentality that employees cannot
be spared for anything unrelated to task as it adheres to the time required to
develop employees and leaders, unless it can be done in “mini-bites” or some
other way that doesn’t take a lot of time. There is a barrier in implementation
of The Leadership Grid is the four intense days needed for the seminar to
accomplish its goals. Because of its unique design, these seminar goals cannot
be accomplished in less than four days. Gaining acceptance of this truth from
someone who has yet to participate is a daunting task. Past experiences often
have shaped the perceived value of management seminars, blocking understanding
of how Grid can be unique. While it is difficult to explain the need for four
intense days, perhaps the following distinctions about a Grid seminar will help:
It is not designed to simply impart
information, but to bring about a genuine desire in participants to change their
behaviors, even before they have left the seminar.
Manage conflict
Improve decision making and problem solving
Build a better team
Be more effective team member
Communicate effectively and manage change
effectively
Theory
X management style therefore requires close, firm supervision with clearly
specified tasks and the threat of punishment or the promise of greater pay as
motivating factors. A manager working under these assumptions will employ
autocratic controls which can invariably lead to mistrust and resentment from
those they manage. McGregor acknowledges that this constitutes a damning
statement about the `mediocrity of the masses'. He acknowledges too that the
`carrot and stick' approach can have a place, but will not work when the needs
of people are predominantly social and egoistic. Theory Y is based on the
assumptions that the expenditure of physical and mental effort in work is as
natural as play or rest. The average human being does not inherently dislike
work. Depending upon controllable conditions, work may be a source of
satisfaction, or a source of punishment. External control and the threat of
punishment are not the only means for bringing about effort toward
organizational objectives. Man will exercise self-direction and self-control in
the service of objectives to which he is committed.
Motivation
There believe that reliable and innovative data
solutions and services in mobile communications services will bring immense
potential to the company’s subscribers. As part of the ongoing strategy, the
NWPCS will add excitement to the mobile market by introducing pioneering mobile
data services that exceed market expectations as well as customer needs. The
Group will continue to explore the prepaid market and expand its reach to mobile
youth and other market segments that show great potentials. Before we see the
genuine and substantial market needs of 3G services and believe that cooperation
with renowned content providers to provide customers with innovative data
services via our existing 2.5/2.75G network remains to be the most
cost-effective way to stay competitive and is in the best interest of our
customers and shareholders.
Maslow’s Hierarchy of Needs
Maslow's Hierarchy of Needs is a
theory in
psychology
that
Abraham Maslow
proposed about the Theory of Human Motivation, the theory contends that as
humans meet
'basic needs', they seek to satisfy successively 'higher needs' that occupy a
set
hierarchy.
Source
of Diagram:
The basic concept is that the higher
needs in this hierarchy only come into focus once all the needs that are lower
down in the pyramid are mainly or entirely satisfied. Growth forces create
upward movement in the hierarchy, whereas regressive forces push prepotent needs
further down the hierarchy.
A manager’s ability to motivate starts earlier
than most people think with employee selection.The hiring of employees that are
self-motivated is crucial to the success of any business.If an employee is
motivated from within, then the motivator aspect of a manager’s job is less
difficult.
The humanistic psychology of
Abraham Maslow, especially his theory of motivation and the hierarchy of needs,
has been widely applied in business and
social science.
Maslow's original hierarchy, adapt it to
the company will
apply the adaptation to a business
cases
and then
discuss its implications for staff importance within work
and research.
Maslow's modified hierarchy of
needs could be utilized to
provide a comprehensive approach for the assessment of
every staff
needs and the design of
interventions to achieve goals that start with comfort and potentially extend to
the experience of transcendence.
It would be accurate to
conclude that the hierarchy is an important element guiding the formulation of
waste related policies and programs and regulations in Australia and overseas.
It should also be noted however, that there are two schools of thought on the
hierarchy and how it should be interpreted within an integrated waste management
framework: One interpretation is that integrated waste management is a ‘menu of
options’ and there is no such thing as a good or bad technology option.
A major barrier to implementation of the
hierarchy is the fact that solid waste managers have very little control over
the generation of waste and therefore have limited capacity to achieve source
reduction. Designers, engineers and managers in industry make decisions about
what is manufactured, processed or constructed and how this is done. There is
increasing recognition internationally of the need to focus more intensively on
preventative strategies rather than waste reduction or recovery. Most of the
current effort is still on recycling programs, which are important but not as
effective as prevention or reduction strategies in achieving sustainability.
Accordingly, a technology that can be
monitored and managed, can be provisioned, is network compatible and low cost,
and can be implemented in the network, will generate less value to the
network-service provider than a technology that achieves all seven levels of the
pyramid. Of equal importance is the fact that there is a minimum level on the
pyramid that must be achieved for any technology to be implemented in the
network ever. This minimum is level three, network compatibility. Just as a
person whose food, safety, and shelter needs are unmet will die, technologies
that fail to achieve a network-service providers requirements for monitoring and
maintenance, provisioning, and network compatibility will perish. This is the
case even if the technology is the lowest cost, enables new services, is future
proof, and provides market differentiation. The final and highest level of the
hierarchy is market differentiation. This position on the hierarchy, most often
occupied by software solutions, is the goal of all network-service providers. A
technology that achieves this unique position has already achieved all of the
lower levels of the hierarchy and, just as a person reaching the top of Maslow's
hierarchy achieved self actualization, a technology that carries a
network-service provider to this lofty position in the hierarchy is one that
becomes part of the lore and history of the industry.
Vroom’s expectancy theory argues that motivation
is based in values and beliefs of how a person feels effort, performance and
outcomes. Vroom’s has developed an equation to calculate motivation using three
factors:
Ø
Expectancy
– the probability that effort will be followed by personal accomplishment
Ø
Instrumentality
– the probability that performance will lead to outcomes
Ø
Valence
– the value of an individual of an outcome
Vroom argues that a manager can use the equation
M = E I V to predict whether a particular reward will motivate an individual.
While the basis of Vroom’s expectancy theory is very good, the equation seems a
little awkward today.
Pay system Design for each level staff
Performance-related Pay
Performance related pay is used by some
organizations to reward employees on an individual and used in both the public
sector and parts of the private sector, where it is perceived to be a way of
giving an incentive to those at the top of their pay band or as a means of
progressing through the pay system. Pay increases are linked to individual or
team performance measured against targets or objective criteria. Performance pay
systems are designed to reward individuals differently for doing the same job;
inequality in payments is therefore built into the system. The difference
between this system and automatic progression is that with individual or team
reward there is an element of discretion and subjectivity and higher risk of
bias. If an equal pay claim were to arise the employer would have to explain the
difference in pay by reference to reasons that had nothing to do with the sex of
the jobholders. The company can find out if there is a problem in the
organization by looking at the amount paid in performance related pay, to men
and women, over the past year and the need to look at each grade and the
distribution of performance pay within each grade. The company also need to be
aware of how performance payments affect male and female employees doing equal
work. This means that you need to monitor both the payments and the process. The
human element is vital and anyone involved in appraisal or in decisions to
award performance related pay should receive advice and guidance on how to avoid
sex bias.
Implementing Pay structure reform
Apart from doctors, dentists and the most senior
managers, all other staff will be placed on one of two pay ‘spines’, each
divided into eight pay bands. Staff will be assigned to a pay band on the basis
of 'job weight' determined by local job evaluation, or by 'matching' with
nationally agreed job profiles. The Review Body found that delays in releasing
job profiles led to many more local evaluations than expected in the early
implementer sites. This imposed additional costs and delays, as there was a
reluctance to evaluate posts in case a national profile was later produced that
differed from the local evaluation. There was also a widespread belief that the
job evaluation scheme placed too much emphasis on direct patient contact, so
that some professional staffs were placed in lower pay bands than expected. The
later report of the shadow executive of the company accepted the validity of
these criticisms. In response, it issued revised guidance, produced more
non-clinical job profiles, and promised that it would closely monitor the
application of the job evaluation scheme to ensure that jobs are evaluated
appropriately. The most significant problems arising from the experience of the
early implementers concerned the proposed reform of payments for working
unsocial hours. This envisaged the replacement of the existing system under
which different payments are attached to each kind of unsocial shift worked by
different groups of staff. In its place, the reforms envisaged that patterns of
unsocial hours should be agreed in advance, and rewarded by fixed rates on broad
payment bands within which staff could then work more flexibly. In practice, in
areas where working patterns were variable and there were pressures on overall
staffing, employees were often unwilling to work extra shifts and managers were
often unable to cover shifts at short notice. The proposed system embodied a
perverse incentive for staff to work the minimum number of hours required to be
allocated to one of the pay bands.
Action
Ø
Look across the company at the
different performance payments, who has access, how they are awarded
Ø
Ensure the criteria for rewarding
performance are clearly defined and achievable and targets are equal across
departments in the organisation
Ø
Look to link the performance to a
target like x sales, which can be seen as objective
Ø
Ensure training is provided in
equal opportunities and how it affects pay discrimination for all involved in
appraisals
Ø
Explain the system to the workers
so everyone understands the system
Ø
Consider whether the performance
pay scheme is contributing to the problem
Ø
The company will need to make
sure that decisions on pay are properly documented. It makes good business sense
for employees to understand why they are paid as they are, but if the
organisation should ever be challenged, properly documented decisions will
enable the employer to explain the reasoning behind the pay difference.
The purpose for performance related payments is
often unclear, yet a transparent pay system avoids uncertainty and perceptions
of unfairness and reduces the possibility of individual claims and
implementation ways can be as follows:
Path 1:
Increased Individual Effort. The first path occurs through the effect of profit
sharing on perceived reward contingencies. Adding profit sharing to base pay
creates an additional performance-contingent incentive to motivate higher worker
job effort, in line with the expectancy theory of motivation (1964). The essence
of this is simple: if a worker improves his or her performance, and this
increases company profits, he or she can expect to receive a portion of the
profits so generated. If many employees perceive this linkage and act upon it,
this may significantly increase firm productivity.
Path 2:
Increased Compensation Attractiveness. Even if profit sharing do not cause
individual employees to increase their job effort, there are numerous other
possible paths to improved company performance profit sharing may help to create
a more attractive compensation package than would otherwise be offered. Many
firms also use their profit-sharing systems to create a pension plan for
employees.
Path 3:
Increased Reward Equity. Profit sharing may also increase perceptions of reward
equity. Where firms are highly profitable but are loath to share this bounty
with their employees, this may lead to perceived inequity and reward
dissatisfaction with all the negative consequences that this may engender.
Path 4:
Increased Organizational Identification. Another possible path to organizational
performance is through organizational identification. Perceptions of shared
characteristics occur when employees perceive shared interests with those higher
in the organization and profit sharing should promote this.
Path 5:
Increased Cooperation. To the extent that everyone identifies with the
organization and its goals, there should be greater cooperation between
employees and management and among employees, as well as reduced conflict and
less adversarial union-management relationships and help to remove barriers to
employee performance, allowing performance to increase even without any
additional employee effort.
Path 6:
Increased Job Satisfaction. Increased
cooperation and reduced conflict may not only remove barriers to productivity,
but may also create a more congenial workplace. Along with increased reward
satisfaction these changes may contribute to higher job satisfaction, which may,
in turn, lead to reduced turnover, absenteeism and grievances.
Path 7:
Increased Interest in Company Performance. If profit sharing helps to make
employees more knowledgeable about and interested in the performance of the
company, this may stimulate employees to suggest money-saving ideas or to share
information which will contribute to higher quality organizational decision
making and can engender major productivity gains, but only if the company is
structured to solicit and utilize effectively employee input in decision making.
Profit Sharing System
Profit sharing refers to the process whereby
companies distribute a portion of their profits to their employees and provides
an important means of increasing employee loyalty and tying employee
compensation to company performance. Profit sharing is a particularly attractive
option for newer small businesses with uncertain profit levels, as it allows
business owners to share the wealth during good times without obligating them to
do so during lean years.
The company may use any number of different
formulas to calculate the distribution of profits to their employees and
establish a variety of rules and regulations regarding eligibility, but there
are essentially two basic types of profit-sharing plans. The main drawback to
cash distribution plans is that employee profit-sharing bonuses are then taxed
as ordinary income. The company may decide to match a certain percentage of such
contributions. The amount of future benefits that employees will receive from
their profit-sharing accounts depends entirely on their account balance. The
amount of their account balance will include the employer's contributions from
profits, any interest earned, any capital gains or losses and possibly
forfeitures from other plan participants. NWPCS may establish different time
requirements before employees become fully vested. Under some deferred
profit-sharing plans employees may start out partially vested, perhaps being
entitled to only 20 percent of their account, then gradually become fully vested
over a period of years. A company's vesting policy is written into the plan
document and is designed to motivate employees and reduce employee turnover.
Incremental Salary Structures
These arrangements will provide
Ø
improvements in remuneration for
many staff
Ø
the basis for the achievement of
equal pay for work of equal value
Ø
greater opportunities for salary
progression
The new single salary structure will be
introduced effective from 2007 and the staff will be assimilated to the new
salary structure on a phased basis with a common implementation date with
appropriate backdating arrangements being put in place.
Grading Structure
A nine grade single pay salary structure will
apply to all current and future staff. Progression within each pay range will
depend on an individual’s length of service in the grade and in part on an
assessment of their contribution. Staff will have a normal expectation of
annual progression up to the contribution threshold for their grade, subject
exceptionally to established procedures for dealing with performance problems.
The assimilation of staff to grades will be based on the outcome of a process
underpinned by job evaluation.
Management Skill of each level staff
New World Mobile Holdings Limited is
principally engaged in offering best-in-class mobile services including voice
service and customized data services that truly meet the needs of individual
customer segments via advanced mobile technology. Operating under the brand name
of New World Mobility, the Group sets very high standards through constant
innovations and has made significant achievements in boosting the usage of
mobile data services in Hong Kong. We have emerged to become a leading service
provider through the introduction of numerous stunning mobile data services over
the years. In order to perform the functions of management and to assume
multiple roles, managers must be
skilled.
Technical skill
involves process or technique knowledge and proficiency. Managers use the
processes, techniques and tools of a specific area. Human skill involves
the ability to interact effectively with people. Managers interact and cooperate
with employees. Conceptual skill involves the formulation of ideas. Managers
understand abstract relationships, develop ideas, and solve problems creatively.
Thus, technical skill deals with things, human skill concerns people, and
conceptual skill has to do with ideas. A manager's level in the organization
determines the relative importance of possessing technical, human, and
conceptual skills. Conceptual skills are used in planning and dealing with ideas
and abstractions.
Source of Diagram:
, "," , September-October 1974,
from:
Communication
There should be useful formal methods of
communication in the company such as:
Ø
meetings with Head teacher/senior
managers
Ø
participation in working groups
Ø
departmental meetings
Ø
staff bulletin
Ø
newsletter
Ø
open sessions to keep staff
informed
Ø
email
Ø
events with food and drink
encouragement
Ø
meetings with new staff
Ø
planning meetings
Ø
involvement of other departments
in activities in the library eg study support
Meetings in informal settings act to underpin
the success of formal communication methods, but there is a danger of focusing
on certain members of staff you already know. The main problems relating to
communication between staff are:
Ø
different priorities
Ø
perception of library staff as
‘support’
Ø
limited time
Ø
lack of freedom to move outside
the library to meet teaching staff
Ø
not enough library staff to deal
with all departments and to attend all meetings which might be useful
The company in order to achieve effective
communication needs to:
Ø
be targeted
Ø
make people aware of what’s in it
for them
Ø
act to improve the status and
image of library staff
Ø
demonstrate a proven track record
Ø
involve listening as well as
informing
HR Planning
The process of business in mobile organization
is a paradigm shift that recognizes the limitations inherent in separating
people, tasks, processes, and places and emphasizes the benefits of moving
ideas, information, decisions, talent and actions where they are most needed (,
, and , 1995). However, existing worker-oriented approaches to job
analysis, recruitment based on person-organization value congruence, and
selection based on both skills and traits are consistent with the tenets of the
company (., 1995). In fact, work has been described as undergoing such a
fundamental transformation that employees must necessarily question and perhaps
replace the body of knowledge underlying the psychology of work behavior (,
1995). While organizational design and strategic management solutions have been
proposed for the mobile telecommunications ( , 1995; , 1995), relatively little
has been discussed in terms of the human resource practices and processes to
best support it. Indeed, job analysis provides the basis for virtually all human
resource functions – recruitment, selection, compensation, training and much of
human resource technology is grounded in the notion of individuals holding jobs
(, 1994). However, viewing the job as the fundamental organizational unit has
been criticized as outmoded and ineffective (, 1994; , 1994). This apparent
conflict between the idea of jobs being the central focus of human resources and
recent literature proposing that the job is no longer a useful way to organize
and manage work is the motivation behind this research. There has argued that
one major job analysis method, as well as some existing recruitment and
selection practices, can benefit the boundaryless organization because one of
human resource management's strategic roles is to find the best potential match
between the organization and the individual, the importance of organizational
culture, and person-organization value congruence in particular, is discussed.
Gaining competent employees at all levels of the organization is more than a
matter of training; it stems from changes in recruitment and selection
philosophy (., 1995). Specifically, New World can emphasize the development of a
shared mindset among all of its employees and the continuous support of the
company’s collective culture.
Although . (1995) don't describe specific
recruiting approaches that aid in achieving a cohesive culture, they state the
importance of thoroughly screening applicants, sometimes with the help of
customers, based on skills and personality traits that match the technical and
cultural needs of the organization. It makes sense that an organization's
culture would be reflected, to some degree, in its recruitment efforts (, 1992).
The HR manager presents the candidate with negative and positive aspects about a
particular job so that the degree of match between the candidate's wants and the
organization's climate can be assessed (, 1992). The more positive and negative
information a candidate receives about the job, the more realistic the
individual's expectations, and the less likely voluntary turnover is to happen
within the first stages of socialization (, , , & , 1988). and
(1990) describe creating a culture that allows all levels of the workforce to
contribute to business strategy formulation, resulting in a fluid power
structure. In fact, it has been proposed that every challenge facing the
boundaryless organization deals with people management, "with issues of how
things get done, not what gets done" ( & , 1990). Thus, value congruency might
also be used to help predict employee performance across jobs within an
organization. On the other hand, a perfectly value-congruent workforce may
present a different set of problems, namely poor adaptability to change (, 1987)
and adverse impact.
Training is essential both for professional job
performance and for organizational development. Without adequate training, it is
illogical to assume that people will perform effectively. Additionally,
personnel who are not adequately prepared to handle new and unsettling
situations often leave a job prematurely, thus setting the turnover cycle into
motion. Training is really an ongoing process to improve a job incumbent's
knowledge, skills and abilities. It is continuous and challenging. It involves
significant amounts of practice. Training is a process that takes many forms and
occurs in various phases. Some strategies/resources that can be applied at this
juncture include the use of the Professional Security Training Network Basic
Security Officer Training Series (BSOTS) as a foundation of learning. The BSOTS
provides a comprehensive, recognized curriculum. While video-based, the BSOTS
program incorporates an interactive text and Internet testing. Successful
completion of the BSOTS program earns the officer a certificate from the
International Foundation for Protection Officers. (: .) New World wishing to
use it must embrace the overall aspect of professional development. It must be
part of a long-term strategy to develop their staff into productive members of
the asset protection organization.
Doing so keeps employees stimulated in a
positive way and makes a strong statement to them about how management values
their services. HR leadership recognized that a clear set of transformation
goals was needed; that those goals must be supported by a common approach and
language that enabled all of HR to understand client businesses' strategies and
the human capital requirements necessary to achieve the desired business results
at the division and enterprise level. Doing so would enable HR to align more
effectively with the critical needs of the corporation and efficiently deliver a
suite of HR services that supported execution of corporate and division business
strategy. The transformational goal requires HR professionals across the
function to draw a clear and direct connection between the strategies of the
company individually and collectively and the human capital implications of
those strategies. HR can help the corporation better understand future talent
requirements in terms of the quality of people needed to execute on its strategy
and understand what actions are required to realize the maximum return from
their investments. Greater clarity was still needed as to how these insights
could be used to better inform and align HR functional strategy, structure and
processes at an enterprise level.
The primary concern was to generate demand for
the process within the field HR organization and from business unit leaders.
Rather than engage in a traditional roll-out process, and run the risk of
provoking an organizational immune response that would reject the process, the
core team implemented an approach that encouraged initial involvement,
excitement, and acceptance of the new tools and process. By incorporating
process flexibility, the team allowed the field HR users to engage with their
client in the most appropriate way for their business. The result was a curious
and interested response and ongoing demand for human capital planning. As the HR
function continues its transformation efforts, the human capital planning
process has delivered another level of insight into HR staff talent gaps and the
actions HR leadership must take to improve functional capability to support the
human capital requirements of the business. Furthermore, as of
December 2005, the Group had a total of 822
employees (30 June 2005). The increase in the number of employees was
attributable to the headcount of the NWPCS Group acquired during the current
period. The Group’s emolument policy is to pay salaries that are competitive in
the industry in a way that will be motivational, fair and equitable, and that
are dependent on individual and company performance. Apart from salaries, the
Group also provides other fringe benefits to employees, which include provident
fund schemes, medical insurance and bonus on performance basis.
Telecommunications networks today are volatile
communication networks which consist of heterogeneous, very often incompatible,
multi-vendor environments. Circumstances such as these cause the management of
telecommunications networks to be complex and to contain operator-intensive
tasks that need considerable human involvement. The purpose of a good HRM
program is to recruit, select, motivate, and retain employees with such required
characteristics as concern for the firm's success, ability to work in groups and
quantitative skills ( and 1994). Most of the published research
investigating HRM issues in small businesses is conceptual and has concentrated
on various HRM topics like selection, training and development, compensation and
industrial relations ( and 1992). External sources of recruitment like
employment agencies and educational institutions provide a rich source of fresh
talent to a firm. However, small firms do not pay much attention to external
sources. Among other things, the centers assist employers in finding suitable
job candidates and provide a list of qualified candidates who meet employers'
needs. Given the evidence that one of the most difficult problems for small
businesses is finding competent workers, it is surprising that these external
sources of recruiting are not widely used by them ( and 1987).
These inexpensive external recruitment sources
can be easily exploited by small manufacturing firms to get fresh talent and
develop standardized procedures to process a high number of applicants and their
ability to finance such programs ( and 1992). Thus, it is possible that
New World PCS have realized the effectiveness of sound personnel policies and
are now making a concerted effort to address personnel problems as well as the
adoption of new philosophies such as just-in-time and total quality management
may have forced small manufacturing firms to address HRM issues ( and
1992). Therefore, a number of HRM policies may reinforce and nurture the
workforce characteristics that they say are important for the success of their
plans and feel it important to have training to enhance group orientation and
quantitative skills. On the other hand, some important workforce characteristics
said to be important are not reinforced by compensation or performance
evaluation policies. For instance, the company indicates that workers' ability
to inspect their work, self-discipline, and concern for the firm's success are
important, neither type feels it important to have an incentive or profit
sharing plan to reinforce these characteristics.
REFERENCES
