THE CHALLENGES OF IMPLEMENTING STRATEGIES EFFECTIVELY
New World PCS Limited
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.
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.
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 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
Source of Diagram:
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.
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.
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.
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 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.
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.
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,
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 open sessions to keep staff informed
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
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.