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Organizational Tendencies: A Case Study of PCCW Company


With the numerous changes brought about by the surroundings, equipment, financial system, politics affairs, and everyone, changes in the business must be studied note of in order to cope with the varying demands of the workforce and the customers. In such a output-oriented culture and generation, every organization must have the skills, capacities, endurance, and the ways of be able to meet the demands and the needs of the market. Consequently, the continuous changes that organizations must go through may be considered as their only border in order to handle the entire changes seen in the modern culture. Thus, appropriate change management must be done in a corporation to effectively and efficiently help and govern the changes needed by organizations.

In the aim of PCCW for market expansion, protect its position, and create proper agreements with other Asian companies, it offers borrowed greatly to fund the $38 billion bet for Hong Kong Telecom, which resulted to its arrears of US$4 billion. Further decline of its performance is brought about by its lack of confidence in the debt repayment projects among stockholders (Darlington and Cooke, 2000), which added to its standing as the most detrimental doing blue-chip company on the set of the Hong Kong Stock Exchange in 2002 and 2003 ("PCCW", 2007). In addition to its arrears and change in ownership and management will be the increasing pressures of competition one of the industry. It has been reported that in August 2000, there have been 165 external telecommunications services operators and 187 Internet market providers. The upsurge in competition resulted in another reason behind the company's problems, which is the presence of monopoly for local fixed telephony. This became a significant blow for the business, as many telephone operators no more need the gateways and local systems provided by PCCW (Darlington and Cooke, 2000).

Furthermore, another basis of its problems is the loss of its staffs and work force, which contribute to the decline of its businesses. Yet another cause is the inability of the bet between the company and China, for at the time, China resisted to make appointment with a firm that is allied to the Singapore government, which also became the basis of the problems of the Sing Tel's bid before (Greenlees, 2006).

Additionally, the situation for the business is the generally faltering earnings in Hong Kong, with its failing to make extensive growth to the China mainland. With this, heavy investment in marketing communications all through East Asia must be needed before the full probable of PCCW can be loved (Darlington and Cooke, 2000).

External Change Driver

The PEST Examination sets up a competent exploration of the peripheral impacts on an accurate company by infringement of the components into indispensable and perceptible elements or factors. The clear essentials under this type of analysis include Politics, Economic, Sociological, and Technological elements. Political factors are the limits in the policies of the Chinese government in relation to company consultations and mergers; the government's choice of companies beyond your country, with which it could make discussions with; distinctive pre-eminence in China's legal system; impact of United kingdom legal system in Hong Kong's international financial transactions.

Economic elements comprise the improvement and underdevelopment of infrastructures in East Asia; telecommunications monopoly; debts of PCCW; buck inflation and deflation rates; financial crises; crumple of asset prices; rate of monetary expansion. Sociological factors include PCCW's variance with customers that are major stockholders; unemployment; changes in communication, marketing and management; retaining separate superiority over real human capital, terminology, rivalry and problem. Ramifications of e-commerce to PCCW; improvement and improvement of its website; procedure and maximization of the Internet; faster discussions, development of new ultra-modern tools, improvement of R&D through the Internet

Internal Change Driver

One of the inner alteration individuals of PCCW is the change in its ownership, along with the adjustment in its supervision and its executive culture. The culture was then distorted with the amendment in the staff. Subsequent to the acquirement, almost all of the staffs employed in C&W HKT are now employees in PCCW. This led to the change in the traditions of the company, from a conventional, seniority-based, and non-market driven, it twisted to a powerfully spirited, performance-based, and customer-focused company. Another internal driver is the changes in the business's main concern. The quality of service is currently the company's main alarm, and the business has been spending millions of dollars in brilliance and customer support training. The 3rd internal driver is the change in interior procedures (Hatch, 2006).

Such changes in inside processes include applying diverse quality programs, including quality improvement teams and six sigma programs. These changes in the culture of the business brought about the business's reorganization process, for illustration changing the divisions from a cost-center to a profit-center, thus, making all employees aggravated to make negotiations and business dealings ("Cable and Cellular: Jobs Surveys, 2003).

Consistent with the company's agenda for change, several aspects in the organization can be studied note of, particularly, its strategy, structure, functions, and people. In relation to its strategy, PCCW provides solutions for interface management, security and CCTV systems, music and visual alternatives, and technical support and maintenance services to various industries in the industry, such as governments, public services, aviation, and broadcast engineering operations. In addition, it re-entered the mobile market, collaborated with real house and broadband companies, and increased its telephone internet directories. In terms of framework, the contribution of its large team of experts, experience and knowledge in the IT industry provide excellent ICT solutions that could help customers develop progressive and challenging work at home opportunities.

In terms of processes, the company facilitates outstanding creativity, especially in conditions of IP-based business services, New Era Fixed Lines services, broadband pay-TV, Internet access, marketing content, large-scale IT alternatives, mobility, and cordless innovations. In conditions of people, it offers around 17, 000 employees, located in several parts of the world, including mainland China, SOUTH USA, Japan, Korea, Thailand, Malaysia, Singapore, Taiwan, Europe, the United States, India, and the center East ("Company Profile", 2008).

Diagnosis on the Style of Leadership/Management

As stated earlier, the management of PCCW was altered from a conventional, seniority-based, and non-market driven, to a strongly competitive, performance-based, and customer-focused company. Out of this transformation alone, it could be mentioned that the design of command in PCCW is a Proactive style of leadership. It is because a proactive head focuses on achieving performance outcomes of his or her team and stocks a vision, which compels the team to move towards that eyesight or goal (Holmes, 2008). However, the presence of issues and resistance for the employees may suggest that the sort of command or management they experience from the company may not be sufficient to fulfill or gratify their needs.

If PCCW Small didn't take any action regarding their problems, a domino aftereffect of negative occasions would happen. Its obligations would further increase, which would afford the company to market their resources and resources to make up for the obligations it have in other companies. Resignation of managers would also be another aftereffect of a no change strategy. The increase in bills would lead to further loss of company resources, and later on, to further loss of human resources. Due to the lack of sufficient resources and belongings, there would the hold off, inefficiency, and ineffectiveness of processes and procedures in the business that could lead to the decrease with the number of its customers, as becoming less satisfied. The loss of customers brings about the increased loss of profit, thus, bringing on bankruptcy and immediate closing of the business.

Proposed Change Strategy

It's been identified that certain of the problems of the business is having less infrastructure development in East Asia, which hinders the introduction of the company. With this, the business must not wait for the introduction of the spot, but must look for alternative alternatives and materials that would suit its processes and the trend of infrastructure in Hong Kong. If the company is bold enough, it can start in placing the development in the location in terms of infrastructure development, given the right resources and the right skills and competence. In order to do so, the company can invest in its Research & Development in its goal to find new products and materials. Another proposed change is the execution of performance management strategies that would help develop and enhance the efficiency of the business. Because the management of PCCW has already been transformed into a performance-based management, performance management of the employees must be achieved to be able to help guide them with their responsibilities and duties in the organization. It is because performance management functions to focus the initiatives and attention of employees in critical jobs using performance feedback (Bernardin and Russell, 1993).

This would then allow the employees to gain more knowledge and develop new skills in relation to their work in the company. Another change strategy is the execution and use of Information Technology or Information Systems, which would accomplish in the business and information retrieval in the company and in effective communication. By using an IT or IS, the company can coordinate its customer data source that would let it have an efficient and productive product inventory, customer follow-ups, and examine customer feedbacks for product improvement. Lastly, the business can improve its operations strategies through the improvement of its supply chain. In the management of its source chain, both the suppliers and the corporation would be able to have an effective and well-organized affiliation, thus, preventing the impediment of provisions and resources considered necessary by the business (Robbins, 2004).

First and foremost, the realization of the change program would definitely elevate confrontation among the employees and professionals of the business. The sources and the noticeable impacts of the resistance were already mentioned in the last discussions. Resistance to change of the employees brings about inflexibility and lack of support, ensuing to the delay of the change process and in inner processes and businesses. Second concern to take note of is the differences in the preferences of the management and authority styles of managers in the organization, consequential to numerous inter-departmental civilizations and practices. Due to such differences, employees would be possessing a rigid time working with other employees, which can be a promising source of conflicts. Third issue is the likelihood of having to lay down off employees or reassigning them to new job positions that may require new skills, technology, and knowledge. This may also lead to grave dangers and issues in the business. Fourth issue is the necessity for reformation in the departments which may or may not be contributory to the welfare of employees. Fifth concern is the adequacy of resources, which would be essential in sustaining the needs of the company. Finally, the execution of new insurance policies will be a concern for PCCW (Simon, 2007).

In the argument, it could be apparent that for a company to see and perform a change program, it must be proficient in being attentive to different interior and outside issues that would present an assortment of influences to the employees and the performance of the organization itself. As such, an efficient organizational change process would consist of important elements including its external environment, internal techniques and businesses, the welfare of employees, the support of top management, and the satisfaction and needs of customers. Adding each constituent in synchronization and concord would perhaps assure a successful adjustment procedure.

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