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Documenti di Cultura
Author(s)
Citation
Issued Date
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Rights
1995
http://hdl.handle.net/10722/37739
SUBMITTED B Y
CHENG LAIS M
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION OF
THE UNIVERSITY OF HONG KONG
AUGUST 1995
CONTENTS
Abstract
Chapter 1
Introduction
Chapter 2
Literature Review
2.1.
2.2.
2.3.
2.4.
Chapter 3
Chapter 4
5
9
13
34
Company Background
45
3.1.
3.2.
3.3.
3.4.
45
48
49
51
General Information
The Competitive Environment
Key Challenges
Meeting the Challenge Initiatives
4.4.
4.5.
4.6.
Chapter 5
Page
Objectives
Benefits to Employees
Features of the New Career Progression Plan
Comparison Between New and Old Systems
Assessment and Development
Performance Management System
Planning and Implementation
Issues Identified
Summary
55
56
56
60
61
62
63
66
67
68
68
71
74
75
77
84
85
Conclusion
Appendices
1.
2.
3.
8
8
p
e
d
a
l
n
a
g
n
ni
p
a
h
s
e
Chapter 7
References
6.2.
6.3.
6.4.
6.5.
6.6.
6.7.
6.8.
6.9.
6.10.
6.11.
6.1.
e1m
u
t
ss
tn
c
a
r
a
r
r
8
rhe
T
p g
Chapter 6
89
91
94
96
97
100
111
115
120
122
123
126
ABSTRACT
Hongkong Telecom is moving from a protective, monopoly and regulated environment to
a highly competitive one. The Company has reviewed its strategiesidentified human
resources as a new source of sustainable competitive advantage and recognized that
Human Resources has a role to play in achieving business strategies. To forge a stronger
linkage between business strategy and human resources management, the Company has
implemented a number of initiatives, including restructuring of Human Resources
function, introduction of new Career Progression Plan, and ReshapingRetraining and
Redeployment Programme. However, there are still a number of issues to be addressed
and lessons to be learnt from experience. Success of the initiatives hinges on joint efforts
of the Company, line management, Human Resources and staff.
CHAPTER 1 INTRODUCTION
Hongkong Telecom is the provider of both domestic and international
telecommunications services in Hong Kong. It has long operated in a protected,
regulated and monopoly environment.
Facing the intensifying competitionthe Company has taken some steps to prepare
itself to meet the future challenges. The Company has reviewed what it wants to
achieve, its business strategiesand its ways of doing businesses. More important,
the Company has identified new sources of sustainable competitive advantages in
order to beat competition in future. 'People' is identified as one of them.
To ensure that human resources can be effectively utilized and human resources
practices/ systems can contribute to the achievement of Company's strategiesa
number of initiatives have been taken to align human resources management with
business strategies. These include:
This paper aims at sharing with readers experience gained by Hongkong Telecom
and demonstrating how theories are put into practice in the above 3 initiatives in 3
case studies.
changes,
e.g.
deregulation,
emergence of
multinational corporations and collaboration, rising costs and reducing profit margia,
those which have been viewed as source of competitive advantage, like advanced
technology, financial strength and sound production processcan no longer be
sustained. Many companies began to view human resources as a new source of
sustained competitive advantage. Human resources managers began to move beyond
their traditional administrative responsibilities to assume a greater strategic role in the
organization.
In this chapter, various writers' literature on the relationship between human resources
management and competitive advantage/ organizational capabilitieshow human
resources contributes to the achievement of competitive advantage, framework of
strategic human resources management, linkage between business strategy and human
resources managementand transformation of human resources functions will be
reviewed.
2.1.
The resource-based views suggest that human resource systems can contribute to
sustained competitive advantage through facilitating the development of competencies
that are firm specific, produce complex social relationships, are embedded in a firm's
history and culture, and generate tacit organizational knowledge (Barney, 1992; Reed
& DeFUlippi, 1990; Wright & McMahan, 1992).
The competencies must be relatively immobile to the extent that they cannot
be transferred easily from onefirmto another.
Managerial Competencies
organization's strategic leaders to articulate a strategic vision, communicate the
vision throughout the organization, and empower organizational members to
realize that vision (Westley & Mintzberg1989).
Firms with human resources systems that facilitate the development and
exploitation of managerial, input-based, transformational, and output-based
organizational competencies will have a greater likelihood of achieving
competitive advantages than firms that have human resources systems that
destroy these competencies and/or prevent their exploitation.
Firms with human resources systems that are reciprocally integrated with their
strategic suprasystems will be more effective in the development and
exploitation of organizational competencies and thus in achieving sustained
competitive advantage relative to firms with human resources systems that are
either sequentially linked to or decoupledfrom their strategic suprasystems.
Firms with self-renewing human resources processes will more likely generate
competencies at a higher rate and, thus, will more likely achieve sustained
competitive advantage than firms with human resources processes that are
self-maintaining.
Become strategic business partners and gear their activities to the strategy and
goals of the organization. Development and training activities, for instance,
must be viewed as means for improving individual and corporate performance,
not as ends in themselves.
Spend time with line-managers both within and outside the organization to
develop a good working knowledge of their service needs.
Provide the organization with the right mix of talent to meet current and future
needs of the business.
When strategic
initiatives merge with human resources plans, businesses may perform in unique ways.
Uniqueness may be the ability to transfer strategy to employee action, to align systems
and strategies, and to make strategies happen.
According to Ulrich (1992), competitive advantage may derivefrom the integration of
strategy and human resources for three reasons:
-
_a
systems
as well
as
Uniqueness may exist when there is a 'strategic unity' within the business. A
business with strategic unity is more able to anticipate and meet customer
needs and challenges (Brockbank and Ulrich, 1991). Strategic unity exists
when employees at all levels, employees in diverse functions and the
organization's customers and suppliers outside the organization share the same
mindset.
2.2.
Human resources management is fully integrated with the strategy and the
strategic needs of the firm;
HR policies cohere both across policy areas and across hierarchies; and
Schuler (1992) presents a 5-P Model of human resources management (Exhibit 1).
The 5 Ts'namely HR philosophypolicies, programspractices and processes, can
be strategic as they are systematically linked to the strategic needs of the business.
Besidesthe model shows the interrelatedness of activities and highlights the
significance of strategy-activity link.
Strategic business needs reflect management's overall plan for survival, growth,
adaptability, and profitability. Internal characteristics as well as external characteristics
may well influence the definition of needs. Linkages between human resources
activities and business needs are usually driven by the organization's efforts to
formulate and implement a particular strategy. To trigger specific actions, the business
needs are generally translated into more actionable statements.
Organizational Strategy
Initiates the process of identifying strategic business
needs and provides specific qualities to them
Internal Characteristics
External Characteristics
programs
business issues
Exhibit 1: The 5-P Model: Linking Strategic Business Needs and Strategic Human Resources Management Activilies
Source: Schuler R.S., "Strategic Human Resources Management: Linking the People with the Strategic Needs of the Business",
Organizational Dynamics, Summer 1992, Volume 21, Issue 1, pp20.
All of these statements provide guidelines for action on people-related business issues
and for the development of HR programs and practices based on strategic needs.
10
People-related business issues are those that affect the immediate and future success of
the business and involve people. Shared values, which are reflected in the HR policies,
result in partfrom the organization's structure that in turn results in part from the firm's
strategic directions.
The strategic organizational change efforts have several elements in common. First,
they receive their impetus from thefirms strategic intentions and directions. Second,
they represent major people-related business issues that require a major organizational
change effort to address. They also share the reality of having strategic goals against
which program effectiveness can be measured.
11
There is a need for consistency across all the strategic human resources management
activities because all such activities influence individual behaviour. If they are not
consistent with each other, i.e., if they are not sending the same messages about what
is expected and rewarded, the organization is likely to be an aggregation of people
pulling in different directions.
Implications
The concept presented by Schuler (1992) proposes that the framework of strategic
human resources management is made up of all activities affecting the behaviour of
individuals in their efforts to formulate and implement the strategic needs of the
business. It carries several significant implications:
-
Because all
12
2.3.
To achieve synergy between human resources and business strategy, Gratton (1994)
has identified four major imperatives:
13
implications of strategy also relate to the way in which the jobs are structured
the motivations, aspirations and talents of its peoplethe culture and senior
management. Some degree of coordination between human resource factors
is necessary for the successful implementation of many strategies. One of the
ways is to involve managers from many functions, including human resources,
in discussions about the impact of strategic intent.
-
Alignment between strategic intent and human resource processes is built on a shared
awareness of long-term strategic intent of the company. Building on this shared
awareness, the group of managers can move towards analysis of the impact of
strategic intent on the structure and culture of the companyon the people and the way
in which they will be selected, appraised, rewarded and developed. They can debate
the alignment between the future requirements of strategic intent and a diagnosis of the
current human resource capability.
14
The shared understanding of alignment can demonstrate dearly the potential risks the
company faces in delivering strategic intent. Following a diagnosis of current human
resource capabilities, it may be found that the business intent is undeliverable and
requires profound modification. This illustrates a situation where the feedback loop
between the present and the future has a negative, restraining effect on the future
vision. Alternatively, an understanding of the current human resource capability may
create an awareness that the vision for the future fails to build upon, lever and
capitalize on these resources.
2.3.2.
management seeks to add value by identifying these issues, assessing them, and
evaluating and resolving the issues most critical to the organization's competitiveness
and ultimately to its success. It is much action-oriented. The set of processes and
activities involved in humajQ resources strategy is being used to focus, mobilize, and
direct all other of the business.
The development of human resources strategy facilitates the process whereby human
resources concerns are first seen as people-related business concerns and then are
systematically addressed as specific HR issues. This activity of H R strategy is based
on a joint effort of HR and line management in addressing HR concerns as peoplerelated concerns in achieving strategic business objectives - to enhance current and
future performance and sustain competitive advantage.
The process of developing human resources strategies gives a company the following
benefits:
-
15
Prompts new thinking about human resources issues - orients and educates
participants and provides a wider perspective.
Provides a strategic focus for managing the human resources function and
developing human resources staff talents.
This orientation also appears to address human resources issues as business issues.
Thus firms:
-
Allocate and manage all resources for achieving the business's mission and
objectives.
The organization has a specific strategic thrust that helps to focus line
managers' attention on specificson competition, on the environment, and on
what factors are in the way of attaining success vis-a-vis those strategies.
16
The external environment plays a major role in the likelihood that human
resources concerns will become people-related business concerns.
The extent to which line managers identify human resources issues as strategic
put them into their business plans, and then try to develop programs to address
them.
Business strategy, organization/ job design and human resource planning provide
the key inputs for developing a career management system. Organization design
and job design specify the nature and allocation of work required to execute the
chosen business strategy. Human resource planning specifies the number of people
and types of skills/capabilities required to staff the organization.
The career
17
around the organization to develop those strategic skills and capabilities needed to
perform the organization's work.
Business
Strategy
Planning Process
Implementation/Administration
Progression/Administration Criteria
Monitoring Mechanisms
Gap Analysis
_
Staff Strategies
Development Paths
Recruiting Profiles
Training Requirements
Linkages
Individual
Assessment &
Career Planning
Reward System
The design of the overarching framework of the career management system has
the following components:
Structure:
and branches of related job families, required to develop and deliver the
strategic capabilities.
18
Distribution Templates',
distribution of employees among the developmental streams and within the
levels of each stream; used to guide decisions about staffing, individual
allocations, and career pathing.
and
based on the
stream; used to
evaluate alternative
structures
and
Progression/Administration Criteria:
management system to individual progression and development decisions
including the criteria for determining readiness to move to the next
step/level in a development stream.
Monitoring Mechanisms:
warning of inappropriate administration of the system over time and for
assessing the effectiveness of the system for both the company and its
workforce.
Gap Analysis:
templates to identify area of need and develop strategies for closing gaps.
planning, and for moving individuals along the career ladders/ branches, are key
implementation mechanisms for a career management system. Needs identified in
the career management system translate into specific objectives for employment
and training programs. The reward system reinforces those behaviours and
19
20
Job that are narrowly defined may require too many ladders, leading to
unnecessary
administrative
complexity excessive
career
pathing
21
template
business and organizational needs, both in the near- and long-term.
The human resource planning process of the organization, using a 'zero
base' perspective, first identifies the optimum mix and level of capabilities
for a given business scenario.
target
variety
of
areas where the organization has too few or too many individuals relative
to its redefined needs.
22
management:
_
sourcing strategies and hiring plans should incorporate makeversus-buy strategies and desired recruiting profiles.
training programs
should be configured to
support the
23
Implementation of
mechanisms
Monitoring the administration of the system is important to ensure the
appropriate application of the ladder concepts and structures over time
and across organizational units. The erosion of many existing programs
can
24
Staffing strategies
In well-managed companies, both the business focus and the human resources
focus include long and short-term components (Exhibit 3):
Business Focus
Long Term
Business Strategy
Staffing Strategy
Short Term
1
^
Direct linkages exist between business planning and human resource planning in
both the long and the short-term. Business strategies both influence and are
influenced by human resource strategies. Once business strategies are developed
it is possible to define human resource issues, such as gap between desired and
actual capabilities, that must be addressed for effective implementation of
business strategies.
25
When gaps in the staffing are identifiedthe strategies needed to address the
issues can be developed. Business strategies sometimes assume an adequate
supply of appropriate talent that in reality cannot be recruited or developed in
time. The lack of required talent has slowed capital investment and business
development in some companies. In this case, business strategies were modified
in light of human resource constraints.
26
Near term actions should not only address near term staffing imbalances,
but ameliorate anticipated longer-range needs. Human resource staff who
are familiar with alternative actions play a key role in helping managers
formulate suitable and realistic plans. Managers should define staffing
objectives in ways that achievements may be tracked and evaluated.
27
Downsizing as Reorientation
efficiency concerns.
Downsizing Tactics
28
compare the skills that will be required in the new organization to the
skills in residence. Planning should aim to preserve needed skills and
knowledge including organization-specific knowledge and history, as well
as to develop new skills. Every effort should be made to retain the most
skilled, high-performing individuals.
29
Broad
Whereas definitions of
organizational mission and the overall vision and direction are likely to
emanate from the upper levels of the organizationspecific ideas about
downsizing and redesign are more likely to be found in the middle and
lower levels.
Communication and symbolic management. When downsizing is part of
reorientation and the organization is implementing broader change, doing
new thingsand in general transforming itselfincreased ambiguity and
uncertainty will likely be resulted. Communication can alleviate these
problems by providing substantive information regarding the content of
changes and their anticipated impact. Communication can also decrease
the incidence of rumoursprovide meaning and reframing for organization
members struggling in the midst of change, create shared meanings,
connect individual efforts and pain to collective goals.
Likewise, symbolic management signals change in the organization. It
can be an important tool for managing and providing meaning and values,
help organization members to reframe the organization and its meaning
for them.
Systemic change. Downsizing as part of reorientation should also include
a systemic approach, acknowledging that the organization is embedded in
a network of other organizations. (Cameron et al, 1991). Relationships
with other organizations can be exploited to further downsizing efforts.
30
Types of Change
Reducing organizational size. There is a four-level hierarchy of these
changes (Freeman, 1992; Freeman & Cameron, 1993). This hierarchy
begins with (1) decreases in size without restructuringand continues
through (2) decreases in the number of parallel units, (3) decreases in
differentiationand (4) divesting or dissolving entire organizational
subunits.
In any
Accompanying changes.
These start
31
Downsizing as Convergence
By integrating a
Downsizing Strategy
efficiency concerns.
-
Downsizing Tactics
32
Communication and
Types of Changes
33
predominate.
Managers should, therefore, cease treating downsizing as either a quick
fix for the bottom line or as an indication of failure and missteps. Instead,
downsizing should be integrated into the organization's overall
improvement efforts.
functions, reviewing the role played by human resources in future and the
competency of the human resources professionals. Human resources is being
regarded as business partners with line managers. In this section, the Northern
Telecom's and AT&T's cases will be reviewed.
34
To ensure that the Human Resources mission can be achieved and the human
resources processes can contribute to the overall business strategythe Human
Resources function was restructured. Outside-in (customer driven) and insideout (core capability) perspectives were applied to align key roles, core
competenciesdelivery paths and relationships. The new structure is shown in
Exhibit 5.
The BU HR groups include a team of HR professionals with broad experience
providing strategic perspective to the senior management of the unit.
Solid line
reporting relationships are within the HR function and dotted line to the President of
the BU. The plan is to reverse those relationships when the rearchitecting is M y
implemented.
35
Corporate HR
'Core Competencies
.Functional competencies
/Roles
Service Delivery
.Corporate-wide programs
Through B.U./ Services
.Standards
for programs
.Agent for Board - 'Due
initiatives
Diligence'
Jointly with B.U. for
.Functional network
Due Dilligence' issues
leadership
ore Competencies
Cost-effective delivery of HR
processes/transactions
Customer Service
Roles
Delivery of common services
Processing of HR-related
transactions
Customers
.All HR for support &
expertise
.NTL Board for 'Due
Dilligence' matters
Service Delivery
Systems
Automation
Outsourcing
Direct delivery
for selected
purposes
Business Unit HR
Core Competencies
Business partnership
Roles
Strengthening B.u
organization effectiveness
HR support for B.U
objectives
HR plan for B.U
B.U. info/feedback to HR
Customers
B.U. management
All HR for sharing
B.U. needs
Service Delivery
Through influence
& consultation with
management
The HR Services organization provides 'high touch' and 'high tech' services to
managers and employees regardless of their business unit affiliation. The focus here is
on efficiency and quality. The high touch elements include employee and labour
relations and organization development. The high tech elements include transaction
processingcompensation and benefits administration, and information management.
Services is the largest organization within the NT HR. By isolating the transactionbased work, Services is able to aggressively reengineer, automate, and drive toward
more self-service by employees and managers.
A small corporate HR group exists to develop future-oriented productstools
services and systems according to needs identified by the business unit HR groups. In
36
Exhibit 6 represents the critical connections between the line organization and the
three HR groups. The BU HR groups deal mainly with the senior levels of the line
organization. For the Services Group, the relationship is inverted. The Corporate
HR group supports the business strategy as identified by the strategic business plans.
The HR groups have a ccollaborative customer-supplier relationship'. While the
purpose of new architecture is to support business needs and the corridor between
the business strategy and the HR function is the BU HR groups, the relationship
among the three groups is intended to be equitable and jointly satisfying.
HR Senior Management
Corporate HR
Business
Unit HR
Senior
\
Management
Managers
Employees
Exhibit 6: HR relationships
Source: Kochanski, J. and Randall, P.M., "Rearchitecting the Human Resources Function at Northern Telecom", Human Resource
Management, Summer 1994Volume 33, No. 2pp 303.
37
2.42. AT&T
Both the near- and long-term objectives of the reinvented HR role are the same: to do
customer-driven HR work that adds value to AT&T's businesses by leveraging all the
talents of its increasingly diverse work force.
It is our people who must apply the assets of AT&T to create a competitive
advantage in our markets around the world. I trust in our people to apply their
talentsknowledge and skills to make AT&T the global leader in enabling customers
to reap the benefits of information technology. That is our mission."
One of the
To partner directly with the business unit heads in their strategic planning
efforts, particularly when those efforts were people-related.
38
In early
Professionalism
professional skills and behaviours - attributes that would empower the HR
community to contribute more strategically to the company's business goals.
Initiate, lead and facilitate cultural change, helping to move the company from
its bureaucraticlevel-conscious tradition to one that champions creativity and
risk-taking.
From
Rulemaker
Consultant
Functional Orientation
Business Orientation
Narrow Perspective
Broad Perspective
Internally Focused
Tailored Programs
Traditional Approaches
Thinking 'Outside-The-Box?
Reactive
Proactive
Mutual Distrust
Partnering
39
Based on the findings from extensive internal and external research, a series of
interviews, and the focus groups, a new HR competency modelcalled the High
Performance Excellence Model, was developed.
The model presents the success factors for superior Human Resources performance
in complex, fast-pacedcustomer-focused enterprise.
It is expected to be the
Results orientation
Strategic thinking
Business partner
Customer-focused
Use HR expertise
Self-Image
-
HR
40
Demonstrate self-confidence
Influencing others
Although the competencies remain the same among the HR modelsthe specific
behavioural indicators of success often vary depending on the degree of responsibility
and leadership required of the position.
41
HR Leaders
<
HR Manager (Function)
>
Clusters
Self Image
HR Specialists
Managing Interpersonal
Relationships
Results Orientation
Strategic Thinking
Business Partner
Success Factors
Customer-Focused
Uses HR Expertise
Behavioural Indicators
Demonstrates Sufficient HR Expertise to Achieve Results
Is Sought After by Others as a Problem-Solving Resources
Utilizes "Best" Practices to Bring About Results
42
Both Northern Telecom and AT&T gave good examples of strategic human
resources management in the changing competitive environment by demonstrating
43
Northern Telecom and AT&T made similar moves in restructuring Humajm Resources
function by creating a senior Human Resources position reporting to both head of
business unit and Human Resources.
The major differences between the 2 cases are that Northern Telecom focused more
on hard side while AT&T on the csoft' side. Northern Telecom put more emphasis
on the organization structure, role played by each Human Resources team, service
deliveiy processes, efficiencyas well as relationship among Human Resources Teams
and line managers. On the other handAT&T focused more on the importance of
changing mindset of both Human Resources Professionals and line managers, and
how to improve contribution of Human Resources as business partners by redefining
competencies requirements of Human Resources professionals.
Howeverneither 'hard' nor 'soft' elements alone could lead to good strategic human
resources management. Both should be taken into consideration
44
General Information
Hongkong Telecom is a member of the Cable and Wireless pic which together
with its associated companies conducts business in over 50 countries and has
about 40,000 employees. Hongkong Telecom is the provider to both domestic
and international telecommunications services in Hong Kong.
The exclusive
local franchise expires on 30 June 1995 and the exclusive international license
remains in effect until 30 September 2006. It has been agreed with Government
that the international prices will be reduced by an aggregate 12% over a threeyear period, ending next year and there is a price increase capping at CPI - 4%
for domestic services.
Financial Information
The major shareholder of Hongkong Telecom is Cable and Wireless pic and its
subsidiary companiesand China International Trust & Investment Corporation
Hong Kong (Holdings) Limited and various companies associated with it
(together CITIC) which had notified a beneficial interest in 57.5% and 12.9% of
shares respectively. For the financial year to March 311995total turnover rose
11% to HK$26.91 billion and operating cost grew 9% to HK$17.15 billionas
compared with last year's results. Operating profit was HK$9.76 billion.
For the financial year 94/95Cable and Wireless Group reported turnover at
5133 million and operating profit after exceptional items at 1,134 million.
45
Organization Structure
There are three major companies within Hongkong Telecom Group, namely
Hongkong TelecomHK Telecom CSL and Computasia.
While Hongkong
In March 1991two operating entities, namely Hong Kong Telephone and Hong
Kong Telecom International merged to form Hongkong Telecom. There was
rationalization of overlapping functions, mainly support functions. Around 1,100
employees were declared redundant without advance notice or prior
communications from Management. A total of around $6 billion was paid out as
compensation. This is known as the cMarch 27 Event.
In March 1995marketing and sales functions of non-Mobile businesses in
HKTCSL merged with those in Hongkong Telecom. Mobile business remains as
an independent business unit under HKTCSL.
Employees
By end of March 1995there were about 16,000 employees in the Group. With
effect from January 11995the same career progression systemsand pay and
benefits programmes apply to all employees in the Group. Salaries and related
costs represented 21.4% of the total operating costsa rise of 13.4% from last
year.
46
An internal
China remains a very important part of Hongkong Telecom's fiiture plans. Close
to 34% of total IDD revenues and nearly half of total IDD traffic volume is
between the territory and the mainland. The Company is working in partnership
with telecommunications authorities on joint venture projects in various
provincesincluding BeijingShanghai and Guangdong.
Agreement with
Ministry of Posts and Telecommunications on joint development of Beijing Hong Kong fibre optic cable link has also been reached. BesidesLetters of
Intent have been signed enabling Hongkong Telecom to provide GSM roaming in
Beijing and Shanghai next year.
Hongkong Telecom also plays an active role in other parts of the Region. The
Company is the first foreign telecommunications companies licenced to operate
in Singapore. Hongkong Telecom has been awarded the licence to build a second
mobile telephone and paging network as part of MobileOne (Asia) Pte Ltd
consortium. Letters of Intent have also been signed for Hongkong Telecom to
provide GSM coverage in Taiwan and Macau.
47
With the expiry of Hongkong Telecom's franchise on local fixed network in July
1995three new competitors, namely Hutchison Communications, New World
Telephone and New T&T Hong Kongwill join in providing local telephone
services with their own fixed networks.
48
name a fewthey include City Telecom, AT&TSprint and USA Global Link.
This further intensifies competition in the telecommunications industry in Hong
Kong. A price-cutting war has already started. As there is a world-wide trend of
deregulation of telecommunications market, it is very likely that the international
telecommunications services market will be opened up upon expiry of franchise
for international services of Hongkong Telecom in 2006.
3.3
Key Challenges
Hutchison Communications, New World Telephone and New T&T Hong Kong,
will join in providing local telephone services with their own fixed networks from
1 July 1995.
Though the franchise of Hongkong Telecom for international services is still in
effectthere are already a number of resellers providing international call services
with calling card or other call-back services in Hong Kong. Following the world
trend in deregulation, the international telecommunications services market will
very likely be opened up upon expiry of franchise for international services of
Hongkong Telecom in 2006.
Besides, OFTA has already made recommendation to issue 6 personal
communications service (PCS) licenses and 4 cordless access services (CAS)
licenses in 1996. This would further intensify competition in telecommunications
market in Hong Kong.
49
To survive the
50
Organizational Culture
At present, the Company culture is rather bureaucratic, traditional and
hierarchical. Under such culture, employees observe orders from superiors, there
are barriers between different functions, employees are expecting protection and
care from the Company, employees perform duties according to instructions and
established procedures/ practicesequity and consistency are emphasized,
decisions rested in the hands of superiors, etc. This culture has negative impacts
on the Company's systems and practices and may weaken the competitiveness of
the Company.
3.4.
To
ensure that it can survive and remain competitive in the deregulated environment,
Hongkong Telecom needs to review what it wants to achieve, its ways of doing
business, as well as to prepare itself to take fixll advantage of the emerging
opportunities. Top management team initiated the Meeting the Challengeand
started to review the Company strategy in November 1991shortly after the
merger of Hong Kong Telephone and Hong Kong Telecom International to form
Hongkong Telecom. Many senior managers were also involved in the process.
The objective of the strategy review was to thoroughly review the Company's
strengths, weaknesses, strategies and objectives, and to identify those areas
where the Company should excel in and beat the competition in the long term,
i.e. sources of competitive advantages.
Four
Market Position
Strategy Statement:
We will maintain an optimum position in our Hong Kong Telecommunications
markets and will seek investment opportunities to position ourselves in selected
telecommunications markets in S.E. Asia.
Action Plans:
-
Customer Service
Strategy Statement:
We will listen to our customers to understand and meet their needs and the
criteria by which they will judge us. We will constantly review and improve our
performance from the customersperspective to ensure that we are easy to do
business with
52
This means the Company should provide products and services that meet
customers' requirements, ever improve levels of service to customers and
provide guaranteed service.
Action Plans:
Set up Customer Care Unit which operates a first tier complaints centre
and analyzes complaints.
Quality Image
Strategy Statement:
"We will achieve status in the telecommunications market place as the benchmark
for Asia. We want customers to come to us on the basis of our reputation
identify its customers, determine their requirements, design our processes to meet
their requirements and continually review the requirements and processes.
On the other hand, the corporate image should be developed through reputation,
identity and public relations.
53
Action Plans:
Introduce uniforms for employees who are involved in day to day contact
with customers.
People
Strategy Statement:
"We will give clear direction and leadership to create an environment which
encourages
high
levels
of
achievement,
enhanced
productivity,
open
communication, and respect for the contributions of others. We will develop our
people by substantial investment in training."
It was suggested that there would be a change in management style, from
structured to flexible, from directed to delegated and from standardized to
customized.
Action Plans:
-
54
OF
HUMAN
A 10-year
55
function has been identified as one of the critical human resources practices/
systems where alignment with Company's business strategies is essential
4.1.
The mission of Human Resources is To ensure that the Company has the
resources and organizational capability to achieve its business objectives". To
achieve thisthe past role of Human Resources as a rulemaker, an internal police
that controls the business and an administrative arm as well as its inward-looking
style and narrow perspective will no longer be appropriate.
Human Resources
4.2.
The new organization is based on local Human Resources Teams providing a full
range of Human Resources services to dedicated business unitsbacked up by
Corporate Human Resources Teams offering specialist skills and addressing
groupwide policy issues.
56
HR Services Teams
Services Team
-Marketing
Corporate HR Teams
Policy & Regional Support
HR Services Team
_ Operations
Errployee Care
R
[ Services Team
Finance, Admin
& New Business
R
[ Services Team
Mobile Business
ISL Services Team
- I n f o Tech
These teams have dual accountability to the Director of Human Resources and
the head of the business unit that they support. They also draw on specialist
expertise related to
communications and relations from the two Corporate Human Resources Teams.
There are two Corporate Human Resources Teams, namely Policy and Regional
Support Team and Employee Care Team.
58
The Regional Support Services function is newly created last year as the
Company's business in the Region and its support to enhancing mobility
of human resources within Cable and Wireless pic expanded.
It is
The Employee Care Team aims to maintain a positive and open employee
relations climate.
59
4.3.
Management
Board
D i r e c t o r o f Human R e s o u r c e s
Corporate
HR Teams
HR S e r v i c e s
Teams
Senior
Management
Managers
Employee
Exhibit 11: Relationship among Human Resources Services Teams, Corporate Human Resources Teams, line managers and employees.
60
To ensure that all parts of Human Resources work towards the same direction
and the five Human Resources Services Teams implement human resources
practices consistently, regular meetings among Human Resources Managers and
Corporate Human Resources Team Heads are held.
4A
61
Issues Identified
Currently, level of trust and rapport between Human Resources and line managers
is still not strong enough. Besidescommunication is still insufficient. On the one
handline managers may not let Human Resourcesfixllyunderstand their business
needsand human resources related business issues and plans. On the other hand,
Human Resources may still working on some programmes without considering
business needs of clients in advance. For Human Resources to become true
business partners of line managers, trust and rapport between Human Resources
and line management should be enhanced.
As Human Resources Teams work closely with line management and are
responsible to Business Unitthey may tend to achieve Business Unit's interest at
the expense of the Company's. Besides, there may be conflicts between Human
Resources Services Teams which implement the human resources policies/
programmes from clients' perspectives and Corporate Human Resources Teams
which develop company wide policies.
This could
adversely affect the professional image of Human Resources and may cause
grievances from employees.
4.6.
Summary
Company's future strategy and strategic issues and to highlight human resources
related business issues to line managers. As a resultHuman Resources function
was restructured in February 1995 and Director of Human Resources was
appointed to Management Broad.
63
There are a total of 5 Human Resources Teams which act as consultant and
business partner to provide a full range of human resources services to dedicated
business units. These teams are headed by Human Resources Managers who have
dual accountability to Director of Human Resources and heads of business units
which they support.
managers in their client business units on human resources issues and participate in
management meetings of these business units.
climate by
enhancing
effective open
communication
between
64
to facilitate and to assist line managers in initiating and leading cultural change and
organizational development programmes.
65
In the old career progression system, qualifications and seniority, instead of skills,
performance and contributionwere emphasized.
were under tight control. In the reward systemthere was no direct linkage
between performance and reward. Besides, training and development of staff
members were not effective in meeting specific business and individual needs, and
development of required individual and organizational capabilities. Under these
circumstances, good performers were not properly rewarded and motivated.
Skills and resources could not be effectively utilized. It was also difficult to
retain, motivate and develop staff. All these are detrimental to competitiveness
of the Company in the competitive environment.
Introduction of the new Career Progression Plan was driven by both internal and
external forces.
Secondly,
66
Thirdly, under the tight financial control, the cost effectiveness of the old system
should be reviewed.
The new Career Progression Plan was introduced by 2 phases. The first phase
was the pilot run for front-line customer service staff introduced in February
1994.
The second phase was the roll out of plan to all other employees in
5.1.
Objectives
The new Career Progression Plan is introduced as part of the Meeting the
Challenges initiatives. The major objectives are:
To attract, retain and develop qualityemployees by means of a tailormade development and progression plan for various career streams.
67
5.2.
Benefits to Employees
The new Career Progression Plan enables line managers to plan, develop
and motivate staff under his/her control in a timely manner and in
alignment with business needs.
5.3.
The new Career Progression Plan is significantly different from the existing
career/ salary structures. Major features of the new Plan are described below.
Under the New Career Progression Plan, the career structures are developed
based on business requirements, skills requirements and market practices
regarding different streams.
68
C C l l
T1 - T 1 0
El -Ell
F1 - F 8
11-111
M l -M8
SI - S 8
PI - P 9
A l - A10
Also, the number of career steps within each stream may differ, to meet different
business needs in those areas. The skills levels and core competencies for each
career step are clearly defined. The Career Progression Guide in Appendix 2
shows the career steps of the main streams and provides information on the
corresponding skill requirements and core competencies for each career step.
Progression and development for positions above the new Career Progression
structures are separately planned and managed by senior management.
Professional/ Managerial
group
and
mainly
includes
General/Supporting group
managers,
mainly
69
specialists
includes
supporting
supervisors
while
Sub-groups are established within each group to avoid grade drift and unchecked
pushing upof staff. For example, in General/Supporting group of Engineering
stream, there are 3 subgroups. Career steps El-2, E3-4 and E5-6 belong to 3
different subgroups whereas E2E4 and E6 are regarded as cream steps'.
Whilst the existing old system is subject to vacancy, the new Career Progression
Plan creates more career opportunities for employees. Progression is based on
individuars merits, skills and achievements, not grade service or seniority. Line
managers are allowed to develop and reward staff under his/her control in a
timely manner based on staffs meritsskills, achievements and on business needs.
There is no fixed service requirement for progression under the new Career
Progression Plan.
A customized
assessment form is developed for each particular career step which stipulates the
70
A set of
The review process is a continuous one and is conducted at least once a year for
career progression and reward purposes. In the review process, an employee's
performance, contributions and skills is assessed against the requirements as
stipulated in the Performance Anchor Form or Competency Assessment &
Development Form and the individual's objectives for the assessment period.
5.4
Before the introduction of the new Career Progression Plan, each of the three
Group Companies had its own career and salary structures. This hindered the
cross-company transfer and hence affected the effectiveness of utilization of
manpower resources within the Group.
Under the old Telecom systema banding system was adopted. Band 1 to Band
4 were classified as General staff while Band 5 and above were classified as
Senior staff Basicallydifferent benefit provisions applied t o the 2 groups.
Howeverthere were grey areas in benefits provisions for Band 4. They were not
eligible for work-related allowances as other General staff and were not eligible
for Housing Allowance as other Senior staff.
For Senior staffthe same salary scale applied to the same bandirrespective of
the functions/ areas. While for General staffdifferent salary scales applied to
71
The old Telecom CSL system was similar to the career structure under the new
Career Progression Plan. There were two main groups, namely Senior and NonSenior. Employees in different groups enjoyed different benefits.
Overlapping salary structures applied to the two groups. For Non-Senior grades,
different career and salary structures applied to the 8
Accounting/Programming, Administrative,
Customer
functions, namely
Service, Engineering/
The career and salary structures adopted in Computasia were the simplest among
the 3 Companies. A single career and salary structure applied t o all employees.
There were 11 grades (Grades 1-11) where Grades 1-6 were Junior grades and
Grades 7-11 were Senior grades. Different benefit provisions applied to these
two groups.
Under the old systems in the 3 Companies, grade service was one of the
requirements for progression. While under the new systemservice requirement
is no longer emphasized. Progression is based on individuaFs skills, performance
and contribution. Fast progression for high-fliers is allowed and encouraged.
72
Besidesprogression was based on job size and availability of vacancies under the
old system but business needs and market conditions under the new system.
In the old system, vacancies were advertised internally and interested individual
needed t o apply for it.
Control
In the past, progression was controlled by headcount budget and regular job
evaluation which determined the value of the jobnot the value of the individual
staff member. In the new system, progression is controlled through bottom-line,
budgeting approach and headcount budget. Job evaluation will only be applied
to benchmark jobs for market reference.
73
Besidesmore
5.5.
After the assessment which is based on the Performance Anchor Form or the
Competency Assessment and Development Form is conducted, skill gaps for
improvement, potential and readiness for progression/ development for an
individual employee can be identified. Line manager together with the employee
concerned will draw up a specific, achievable and measurable development plan.
Such plan may include training needsagreed job rotation, assignments to
particular teams, projects or customers, overseas attachments, etc. Line manger
can decide at what intervals progress against plan is to be reviewed, given the
business objectives and progression plans for individual
A number of steps have been taken to ensure that assessment is carried out
objectively:
74
When
If an employee being assessed does not fully understand the reasons for the
assessment ratings, he/she will have the opportunity to seek clarification and
discuss the process with the countersigning manager. In exceptional cases where
agreement has not been reached, the final channel of appeal will be to Director.
5.6.
The main purpose of goal setting and performance review is to help achieve
business
objectives
with
integration
of
performance
effort.
Every
Professional/Managerial staff should set goals with target dates under respective
goal setting areas at the beginning of the year. Some common goal setting areas
are ProgrammeCustomerPeopleProductivity, FinanceNew Development
75
etc.
Individuals may have different goal setting areas but their goals should
During the yearthe supervisor and the staff member should have regular
discussion and review of the progress in goal achievement. The goal setting form
can also be used for recording progress/ goal achievement during the year.
At year-end, performance will be reviewed against the goals set. The year-end
assessment will provide information as to whether the requirements/targets as
indicated in respective goals have be exceeded, metor partially met.
The Performance Anchor Form is the key part of the Performance Management
System for General/Supporting staff since it helps indicate the performance and
skills requirements
76
5.7.
In Meeting the Challenge' initiatives, customer service and people have been
identified as areas which must be focused on and excelled in to beat competition.
Regarding customer service, customer service standard should be improved, a
service excellenceculture should be nourished and skills of employees should
be enhanced. Regarding people, a stronger link between pay and performance/
contribution should be forged and skills of employees should be enhanced.
77
Objectives
The major objectives of introducing the new Career Progression Plan areon the
one hand quite specific to the business needs and on the other hand in line with
Company's strategies. The major objectives are:
To develop best in class' customer service staff and groom high fliers;
and
To ensure that the new career and salary structures are in line with market
practices and conditions, Human Resources conducted a market survey on career
structuresskills requirements and responsibilities of customer service grades.
Proposal on career and salary structures was then prepared. The structures were
modified based on the inputs from line managers.
78
steps.
The Performance
The major
After approval was obtained from top management, the New Career Progression
Plan for Customer Service staff was implemented. The implementation schedule
was as follows:
^^
Time Frame
End December 93
January 94
By mid January 94
Mid January 94
1 February 94
March 94
January 94 onwards
August 94
A l l front-line staff (about 2000) were included in the new Plan with effect from 1
February 1994. They were all transferred to Customer Service - Customer Front
Office stream. In the first batch of assessment conducted in March 1994about
21.3% of staff were appointed to ccream stepand 2.9% increase in salary was
incurred. By end June 1995a total of 31.2% of front-line staff were appointed
to 'cream steps'.
79
5.7.2. Phase II: Career Progression Plan for All Other Staff
Firstlyto harmonize the career and salary structures among the 3 group
companies to prepare for future integration of the companies.
Before
introduction of the new Plan, the 3 group companies had their own career and
salary structures.
Thirdly, the proven success of the phase I introduction for Customer Service staff
encouraged roll out of the Plan to all other staff.
Objectives
The objectives of introducing the new Career Progression Plan have been
discussed before. They are:
To attractretain and develop 'quality' employees by means of a tailormade development and progression plan for various career streams.
80
Againintroduction of new Career Plan for all staff was a joint effort from line
managers, Human Resources and Training & Development.
Shortly after introduction of the new Career Progression Plan for Customer
Service staff, a total of 8 Task Forces consisting of line managers, as well as
representatives from Human Resources and Training & Development were
formed. Each of them was responsible for the development of framework of
career structures and assessment toolsas well as identifying skills requirements
and assessment criteria for a particular career stream (Customer Service Technical, Engineering, Finance, Information Technology, Market/Product
Management, Sales/Sales SupportSupplies and Administration). In the process,
they had taken into account business needsexisting career structures, and
market practices.
To ensure that the new career and salary structures are in line with market
practices and competitive, Human Resources conducted a market survey on the
career structures, salary structures and skills requirements of different career
streams among a number of commercialfirmsutilitiesgovernmentbodies and
accountancy firms. Such market information was taken into account in the
preparation of proposal.
fruitful.
81
After approval for the proposal was obtained, a special communication task force
consisting of representatives from different career stream task forces was formed.
Communication of the new plan was in high profile. It aimed at ensuring that:
82
12 September 94
13 September 94
13-30 September 94
19 September to 15
October 94
30 December 94
.Events
Horizontal transfer of all staff in Hongkong Telecom,
HKTCSL and Computasia to the new structures
Assessment of skills, performance and contribution of staff
by line managers
Line managers draw up development plans for those who
require further training/ development
Appointment of qualified staff to higher steps
Line managers to include in 95/96 business plan the effect of
new career structures
1 January 95
January 95 onwards
January 95 onwards
April 95 onwards
March 95
In the second phase of implementation, all the staff in the Group (about 13,000),
other than those Customer Service staff who have been transferred to the new
Plan in February 1994were transferred horizontally to the new career structures
on 1 January 1995. Assessment in accordance with their skills and performance
requirements was then conducted, and appointment to next higher step
commenced in April 1995.
A total of about 1,100 staff representing about 7.8% of the total number of staff
within the Career Progression Plan are being recommended for progression to the
next higher step after the first batch of assessment in April 1995. Two of the
Technical Customer Services functions recommended over 20% of staff being
appointed to higher steps. By end June 199513.2% of staff were at ccream
stepincluding staff in Customer Service - Customer Front Office stream.
83
5.8.
Issues Identified
Thus, it
cannot be assured that the distribution of staff across career streams and career
steps reflects the anticipated business and organizational needs. Besidesthere
will be difficulties in measuring the effectiveness of the Plan and developing
effective sourcing, training and development programmes.
S4
Line ManagersOwnership
Many line managers still view that the Plan is just another performance appraisal
system and human resources practice. They do not understand that they can folly
utilize the Plan to develop capabilities required to achieve their business and
strategic needs.
5.9.
Summary
Introduction of new Career Progression Plan was driven by both internal and
external forces. Internally, 'people' has been identified as an area critical to the
Company's future success.
strategies are
develop and reward staff under his control in a timely manner based on staff s
merits, skills, achievement and on business needs.
85
For each particular career stream, there is a tailored review system for
performance management and career progression purposes.
A customized
assessment form is developed for each particular career step which stipulates the
required skills/ behaviors and competencies for different career steps within
General/Supporting group and Professional/Managerial group respectively.
After
The new Career Progression Plan is significantly different from the old system.
Individual's skills, performance and contribution instead of service requirements
are emphasized. Besidesthe new Career Progression Plan places emphasis on
external competitiveness, as well as control via bottom-line, budgeting approach
and headcount budget
Development of the new Career Progression Plan was a joint effort between line
managers, Human Resources and Training & Development.
Training &
Human
The new Career Progression Plan was introduced by 2 phases. The first phase
was introduced in February 1994 and was the pilot run for front-line customer
86
service staff. The second phase was the roll out of plan to all other employees in
January 1995.
communication with employees and line managers and their inputs were
emphasized.
87
CHAPTER 6 T H E
CASE
STUDY
- RESHAPING,
RETRAINING AND
REDEPLOYMENT PROGRAMME
On March 271991around 1,100 employees were declared redundant and laidoff immediately, without advance notice or prior communication from
management. This March 27 Event' is well-known to the Company's staff and
the general public.
Since then, around March every year, there were rumours and speculation that
the Company would make another massive job cut. This yearit was rumoured
that the Company will cut 4500 jobs due to merging of Hongkong Telecom with
another Group Company HK Telecom CSL, and saving in manpower
requirements after full digitalization of the network. Also, there would be plan
for compulsory redundancies.
In the briefing session, rumours and speculation were brought to an end. It was
announced that the Company planned to reduce the manpower level from 16,000
to 14,700 by end of March 1996. There would be a further reduction of 1,200
jobs to achieve total headcount of 13,500 by March 1998. To achieve this, a
company-wide reshapingretraining and redeployment programme would be
introduced.
To ensure that this message and the underlying reasons could be clearly
communicated to all staffa memo for Linus Cheung was sent to all staff and all
line managers needed to brief their staff on the Company plan and the specific
plan for their areas within 3 working days.
88
After the announcement, the Reshaping Task Force which is responsible for
ensuring the effective reshapingretraining and redeployment to be carried out so
that the right balance of skills and resources can be maintained whilst overall
manpower numbers can be reduced was formed. The Reshaping Task Force has
developed the redeployment strategy and policy as well as the Implementation
Guide which outlines the principles and procedures in implementing the exercise.
Besidesit has drawn up the macro manpower plan from which major surplus and
shortfall areas were identified, and retraining/ redeployment plans were
developed and implemented.
The whole reshaping, retraining and redeployment process starts with the
development of the macro manpower plan. The macro manpower plan describes
the existing distribution of manpower by functions and grades and the respective
headcount target figures to be achieved by end of March 96.
The drawing up of the macro manpower plan is based on the target headcount
figures in business plans which are submitted by functional managers before
89
beginning of each financial year. The target headcount figures are set as part of
the Company's long-term business planstaking into account business
projections, investment plans in new business areas as well as productivity
improvement programmes.
Once surplus and shortfall areas are identified, all available career opportunities
in shortfall areas will be advertised in the internal vacancy notice. All staff are
welcome to apply for voluntary transfer.
90
The whole implementation process followed the principles and procedures laid
down in the redeployment policy and the Implementation Guide. The progress
was being monitored by the Reshaping Task Force. Adjustments to plan would
be made as and when necessary.
6.2,
It was
positioned as an opportunity to seek trust and support from both line managers
and staff
Linus Cheung began the session with the Company's mission, the anticipated
changes in business environment and its impacts on the Company in the coming 5
years.
This will mean that what we did yesterday and the way we did it may not be
applicable for tomorrow. So we must continue to improve operating efficiencies
through leaner and more efficient organization, and employing latest technology.
We must also continue to build on our strengths and explore new opportunities.
The whole management teamsupported by the input of many of you through
various initiatives and the five-year rolling forecast plans, believe this is the right
strategy to move the Company forward.
91
Business needs,
including requirements
in new business areas
Productivity
improvements
Redeployment
Strategy/Policy
Business Plan
-Headcount target
Implementation
Guide
Projected wastage
based on past
pattern
Monitoring
Implementation
Voluntary
transfer of
staff
Identification of surplus/
shortfall areas, including
career streams and grades
being affected
Retraining programmes
Exhibit 12: Overview of Reshaping, Retraining and Redeployment Process
92
To achieve the mission, we need to strive to invest in new business areas, grow
revenue and reduce unit costs. We can grow revenue by increasing standards of
customer servicelaunching effective marketing programmes and introducing
new services and products within a short time. While for reducing costswe
have to adopt more efficient systems and processeseliminate unnecessary
activities and benchmark the best practices in class worldwide. We have been
working on this for some time and will need to continue and accelerate the
programmes we have begun.
We also need to reduce the overall number of jobs in our existing business areas
and create new jobs by investment in new business areas.
We now have 16,000 staffwhom some 2,000 leave each year as part of normal
staff turnover. We will continue to tightly control recruitment t o allow numbers
to gradually reduce. We will set up a special Reshaping Task Force for effective
retraining and redeployment to maintain the right balance of skills and to ensure
93
We plan to reduce
manpower level to 14,700 between now and the end of March 1996a net
reduction of 1,300 jobs over the period.
Beyond March 1996, we anticipate a further net reduction of 1,200 jobs resulting
in an overall manpower level of 13,500 by March 1998. Exact numbers will of
course depend on impact of competition, and the rate of growth of opportunities
in new business areas. This further reduction of 1,200 jobs will also be achieved
through normal staff turnover and investment in retraining and redeployment.
Let me stress once more that the Company has no plan for any compulsory
redundancies and it is the Company's objective to avoid to take such a step. We
firmly believe we can reach our manpower targets by not replacing every person
who leaves the Company, by retraining and redeploying staff and by voluntary
measures. We will consider voluntary measures in specific areas if normal staff
turnover and redeployment are insufficient to meet the target
The Company will continue its caring approach in managing this reshaping,
retraining and redeployment process.
You are welcome to provide feedback and inputs related to the process to us
through your managers or Joint Staff Council Representatives. I firmly believe
that with your help we can create a better company, and I know that I can count
on your support
6.3.
94
are carried out so that the right balance of skills and resources can be maintained
whilst overall manpower numbers reduce.
The Reshaping Task Force consists of a full time Task Force Coordinator who is
a senior manager in Human Resources reporting to Director of Human
Resources, and seven senior managers from major surplus/ shortfall areas. There
is a small team reporting to Task Force Coordinator which provides support to
Task Force members.
The role of the Task Force is to provide company wide coordination, advice and
support to establish a framework within which line managers, supported by
Human Resources, can progressively manage their manpower resources to
achieve service, revenue and cost targets. This framework ensures a caring and
professional approach for any staff affected by the reshaping, retraining and
redeployment process. Its prime objectives are:
The Task Force regularly monitors and reports on progressadjusts plans and
programmes as necessary, and in due course identifies whether any areas should
open up voluntary redundancy programmes. It is also responsible to ensure that
staff are well informed of the latest development.
95
6.4.
Redeployment Strategy
The Reshaping Task Force proposed the following redeployment strategy which
was endorsed by top management.
Line
Assuming a clear and detailed manpower plan, it was proposed that the approach
to redeployment should be:
96
6.5.
Redeployment Policy
The Philosophies
It is the Company's aim to retain and develop high quality employees to meet
customers' needs and contribute to business growth. However, where there are
changes in the job requirements, organization structure, work processes or
business opportunities, the number of employees needed in a particular area may
change. The type and/or level of skills required of a particular job may also vary.
The Company will seek to manage these changes through normal staff turnover
and retraining so as to minimize the impact on its employees and the business.
Where there is a need for redeployment, the Company will use it as an
opportunity for employees to broaden their skills and experience, and thereby to
better develop their career.
In the redeployment processthe Company will manage the situation and the
employees in a fairconsistentobjective and supportive manner.
97
Manpower Planning
The Company will review its manpower plans on a regular basis to identify
surpluses and shortfalls.
the nature of a particular job has substantially changed so that the existing
job holder no longer has the necessary skills to perform the job.
The Company will take into account the need to retain a balanced workforce to
enable the business to continue effectively.
98
Employees will be informed of the need for redeployment in their area, suitable
alternative employment opportunities as well as other options in a timely manner.
They will also be consulted before and during the redeployment process.
Placement Process
Once a job vacancy becomes available within the Companya skills matching
process will be conducted amongst the employees who have volunteered or been
identified for redeployment.
Where the number of suitable candidates for a position is more than required, a
selection process will be conducted by a panel chaired by the manager of the
position and with representation from Human Resources.
Retraining
99
Once the employee accepts an alternative job offered by the Company, the
manager will arrange retraining opportunities to assist the employee in learning
new skills and knowledge required by the job. The manager will also provide
coaching and assistance to support the employee in adapting to the new job
environment.
There will not be any reduction in salary and benefits of employees upon
redeployment.
Counseling Service
Employees may make use of the Employee Counseling Service provided by the
Company when dealing with any possible issues or difficulties in adjusting in the
new job.
Appeal
Employees who wish to complain about any aspect of the redeployment process
may do so to the next higher level of management along the line of authority, and
if necessaryto Human Resources.
6.6.
Implementation Guide
and
supervisors
in
It aims to assist
and
100
The Reshaping Task Force will, together with respective line managers and
Human Resources, review the approved manpower plans on a quarterly basis,
taking into account the staff turnover trend, the impact of competition and the
rate of growth of opportunities in the new business areas. Areas with either
shortfall or surplus will be identified.
Line managers will manage their manpower levels through normal staff turnover.
However, there may be some cases where shortfalls/surpluses will be identified
and handled as follows:
In Case of Shortfall
The Company will try to source the required skills within the Group
through internal transfers (primarily from areas where there are surpluses)
and in-house training to build up the new skills set.
101
In Case of Surplus
Redeployment Process
Communication to Employees
The number and type of jobs to be reduced and how this will be
achieved - either through normal staff turnover or redeployment.
Voluntary Application
Staff are encouraged to apply for vacancies outside their business area:
102
Directed Redeployment
Staff will be directed for redeployment by line management if:
business requirement.
-
Once an area has been identified for directed redeployment the following
process applies:
103
The line manager will advise their staff of the selection criteria
which, depending on circumstances, are based on all or a
combination of the following:
To ensure that a redeployed staff member adapts t o the new job, followup reviews between releasing and gaining line mangers will be conducted
in the initial period after redeployment.
Placement Process
The redeployed staff member should try his best to acquire the
required skills and adapt to the new environment. He should seek
help from his supervisor if difficulties are encountered.
104
Training Support
For Staff
The Workshop
includes:
Taking Stock:
105
For Supervisors
106
the
implementation
process and
their
roles
and
responsibilities in it;
-
Career Training
107
108
Performance Review
Under normal circumstances, the annual performance review of any staff member
should reflect his performance of the entire year if he was already employed by
the Company at the beginning of the review period. This principle should be
followed in the transfer and redeployment process.
By end March of the year, the performance reviews completed by both the
releasing and gaining managers will be considered in deciding on the overall
performance rating. The gaining manager should ensure that the staff member's
contribution and efforts made during the entire review period are fairly reflected
in the overall performance review and its rating. Efforts and progress in learning
new skills and knowledge should be taken into account in completing the
performance review.
109
Staff who are transferred to position in the same career stream will remain at
their current career step without any change in their employment terms and
conditions.
The Company sees the success of the reshaping, retraining and redeployment
programme relies much on the effective communication with staff of all levels
throughout the process.
Line manager will manage the communication with staff in their own areas. They
will ensure their staff are sufficiently briefed from time to time on the progress of
the programme in their area. They will also answer any queries staff may have,
and address any issues and concerns perceived by staff in a responsive manner.
Appeal
Staff who wish to discuss their concerns or complain about the outcome and/or
any aspect of the reshapingretraining and redeployment process may approach
110
their line manager who is in the best position to answer any queries.
Line
If a staff member is not satisfied with his line manager's reply, he may approach
the next higher level of management along the line of authority and, if necessary,
to Human Resources. He may also approach Human Resources through the
hotline.
Upon receipt of a complaint, Human Resources will look into the case with
respective line management in addressing the issue raised and providing a reply to
the staff member concerned.
Should the above mechanism fail to settle the case, staff may appeal to the
Reshaping Task Force through the Hotline. The Task Force will report to top
management on appeal cases.
Communications
all parties concerned get the right message and clear understanding of the
principles and objectives of the programme;
trust and support from line managers and staff can be built;
After attending the briefing session held by Linus Cheung, all line managers were
requested to brief all staff under their areas on the Reshaping, Retraining and
Redeployment Programme within 3 working days. To ensure that all people get
the same message, a set of standard presentation materials was prepared for line
managers. Line managers were requested to do the briefing themselves as far as
possible. They are also requested to complete a response form for each briefing
session, summarizing the main commentsconcerns and feedback collected from
staff To relieve uncertainties and fears of staffline managers also gave their
staff indication of business/manpower plans for the area.
Tea Gatherings
Thousands of staff attended Tea Gatherings hosted by Linus Cheung and other
members of the Management Board which were held soon after Linus's briefing
session. In the Tea Gatherings, staff had direct dialogue with top management.
Top management told staff the objectives and details of the programme while
staff voiced out their fearsconcerns and provided suggestions. Through these
occasionscredibility of the programme was enhanced while staffs fears and
uncertainties were much relieved. Support and trust were also built.
112
regularly to all staff. Through the Bulletins, staff could get more information
about the programmes while management could reinforce the message and clarify
its position.
manpower picture as of end of April 1995 and highlighted the major shortfall/
surplus areas identified from the manpower analysis, the projected net surplus/
manpower requirements and the career streams being affected.
In order to ensure that views and concerns of line managers were incorporated
into the determination of detailed implementation guideline and support from line
managers was gained, a series of focus group sessions for line managers were
held. During the focus group sessions, line managers were first briefed on the
draft of the Implementation Guide. They were then asked to raise their concerns
and foreseeable issues regarding the implementation process. The sessions were
fruitful and the Implementation Guide was revised based on inputs from line
managers, staff representatives and staff members.
113
staffmainly from surplus areas, have attended the Road Shows. In the Road
Showssenior managers briefed staff on the function, the working environment
as well as the job nature and skills requirements of the available career
opportunities. With such information, staff could consider whether the jobs were
suitable for them and if so, proactively prepare themselves for the transfer to
these areas.
Video
114
gained from programme and how they perceived the Reshaping, Retraining and
Redeployment Programme offered them opportunities to broaden their skills and
experience as well as to develop their careers.
6.8.
115
addressed and taken into account in drawing up the redeployment policy and
Implementation Guide.
EmployeesConcerns
Appeal Mechanism
Performance Review
116
Retraining
-
like
customer
service,
selling
techniques
and
117
Promotion Prospects
118
Increased Workload
Trial Period
-
Performance Management
-
manage their
performance.
-
ever
increasing
business
targets
with
reduced
119
6.9.
Since Aprila total of 560 positions have been advertised, most of which were in
major shortfall areaslike Mobile Business, ISA, Sales and Marketing. A total
of 1430 applications were received and 180 appointments were made. Only 710
applications were from surplus staff while 90 offers were made to them.
120
Assuming that turnover maintains at the current rate and there will be no external
recruitmentthe projected headcount for the following 3 quarters in this financial
year will be below the Business Plan figures. Howeverif the current external
intake rate of about 50 per month is maintained, the projected headcount for the
third and fourth quarters will be above the Business Plan figures. Therefore
tight control on external recruitment is essential to ensure that the headcount
target can be achieved.
As illustrated
in Exhibit
and
shortfall
at
Miscellaneous
Supplies
Finance
Mormation Technology
Sales
Customer Service (Tech)
all
Surplus
A
51-100
m
tf tf
Exhibit 13
:11-50
101-20C
201-300
121
6.10.
Issues Identified
The following issues are identified during the implementation stage of the
Programme:
Many line managers still view that the Reshaping Task Force owns the
Programme and it is the Task Force's responsibility to ensure that all the surplus
staff are redeployed and manpower requirements in growing areas are fulfilled.
However, Reshaping Task Force actually plays a supporting role to facilitate line
managers to achieve their manpower targets.
responsible for encouraging surplus staff to apply for vacancies in growing areas
developing retraining and redeployment plans for the staff and monitoring the
progress of the Programme in their areas.
At presentmany surplus staff are still not willing to apply for transfer out to other
areas. Some of them are resistant to change, some of them are not confident to
122
acquire new skills and change to another career stream, some of them are not used
to transfer to other areas without promotion, while some of them just wait and
see. If voluntary measures cannot achieve the manpower target, more guided
approach or voluntary redundancy may be required.
6,11.
Summary
The whole reshaping, retraining and redeployment process starts with the
development of the macro manpower plan. It is drawn up based on the target
headcount figures in business plansas well as wastage and headcount projection.
By comparing projected staff strength as at end of financial year with the target
figures, surplus or shortfall by function and grade can be found. Actions will be
taken to mobilize staff to transfer from surplus to shortfall areas. Initially, staff in
surplus areas are encouraged to apply for career opportunities in shortfall areas.
If the number of voluntary transfers is insufficient t o reduce surplus or shortfall in
a particular areamore guided approach of redeployment is required.
Surplus
A Reshaping Task Force comprising senior managers from major affected areas
and a senior manager from Human Resources was formed. It provides company
123
wide coordination, advice and support to establish a framework within which line
managers, supported by Human Resources and Training & Development, can
progressively manage their manpower resources to achieve targets. It regularly
monitors and reports on progress, adjusts plans and programmes as necessary, in
due course identifies whether any areas should open up voluntary redundancy
programme, and ensures that staff are well informed of the latest development.
Based on the endorsed redeployment strategy and policythe Task Force has
formulated the Implementation Guide in May 1995. It aims t o assist managers
and supervisors in managing the reshapingretraining and redeployment process.
It covers principles and procedures in implementing the exercisethe
responsibilities of various parties in the process, as well as the support the
Company provides to these parties.
124
Employees'
performance review, selection criteria for redeployment, pay and benefits after
redeploymentretraining programmeprogress of the programme, application
procedures for transferpromotion prospects, details of voluntary/ compulsory
redundancy, trial period allowed after transfer and increased workload of
remaining staff after transfer out of staff in surplus areas. While line managers'
concerns were mainly about performance management of staffachievement of
targets with reduced manpower, and business performance being affected by
transfer out of employees from neutral/ shortfall areas.
125
CHAPTER 7 CONCLUSION
126
Human Resources function has long been playing its traditional administrative and
supportive role in providing human resources services to line managers and
employees. Human Resources professionals usually possess little knowledge of
business needs of clients and deal with human resources issues from narrow
perspective of human resources profession. On the other hand, line managers
focus too much on business issues and bottom-line control, paying too little
attention to people-related issues.
through
clearly
defined
competencies
and
behaviours
127
When the Company expands into new business areas like interactive multimedia
servicecordless access services and personal communication services, and with
improvements in productivity in existing business areasthere will be changes in
staffing requirements in terms of headcount and capabilities currently held by the
work force. It is necessary to reshape the existing workforce by mobilizing staff
from existing business areas which will be in surplus to new business areas.
Introduction of the ReshapingRetraining and Redeployment Programme is to
address this.
Schuler
In "Meeting the Challenge" initiative, the Company has reviewed its strengths,
weaknessesstrategies and objectives.
competitive advantage.
128
Environmental Chanses
Expiry of franchise for local voice service
in July 95 and hence intensifying competition.
Growth opportunities in the region and new
business areas.
Limited growth opportunities in existing
business areas.
IDD tariffs reduction and pricing control
on local voice service.
Increasing customer demand.
Internal Pressures
Utility culture
Hierarchical, bureaucratic and traditional
Efficiency and productivity problems.
Competency /capability of existing
employees.
Convergence of existing 3 group
companies (HK Telecom, HK Telecom
CSL and Computasia)
Telecom
New HR mission:
T o ensure that HK
Telecom has the human
resources and
organizational capability
to achieve its business
objectives.
Restructuiing of HR
function and
repositioning of HR as
strategic partner,
service provider and
consultant for line
managers.
Alignment of career
progression programme
-Harmonized among 3
group companies.
-Develop individual and
organizational capability to
support future strategies
-Different career structure
for different career streams.
-Continuous assessment
-Focus on skills
performance, contribution
and business needs
-Collaboration between HR
and line managers
Downsizing
-Introduction, of
Reshaping, Retraining
and Redeployment
programme.
-Aim to reduce 1300
headcount by 3/96 and a
flirther 1200 by 3/98
mainly through normal
turnover and
redeployment.
-A special Task Force
comprising of HR rep
and senior managers
from major affected areas
was formed to plan
implement and monitor
progress of the
programme.
Exhibit 14: Linkage Between Business Strategy and Human Resources Management in Hongkong Telecom.
129
This is in line
with the arguments of a number of writers, including Hiltrop (1993) and Schuler
and Walker (1990) and the examples demonstrated by Northern Telecom and
AT&T.
Under the new structure, Human Resources Managers report both to Director of
Human Resources and heads of business units. They also participate in clients'
business planning and management meetings.
As the role of Human Resources is changing, the Company has redefined the skills
and competency requirements of the Human Resources professionals.
Human
130
The
Company introduced the New Career Progression Plan to the 3 group companies
with an upward linkage to organization's business strategy.
131
Based on the assessment, line manager together with the employee will draw up a
specific, achievable and measurable development plan.
Manage Downsizing
Regarding workforce reduction techniques, the Company chose to avoid acrossthe-board cuts but to reduce workforce mainly by attrition and to mobilize the
staff t o other areas in need through retraining and redeployment.
This could
control who stays and who leaves, and preserve needed skills and knowledge.
Besidesundesirable consequence, such as turmoils, conflict, lowered morale, job
insecurity and 'survivor guilt' can be avoided.
As mentioned by Linus
132
described by Bechet and Walker (1993). The drawing up of the macro manpower
plan is based on the target headcount figures in business plans which are submitted
by functional managers.
As the three initiatives were just implemented, there are some issues to be
addressed and lessons to be learnt from experiencetheories and success stories of
other Companies.
management needs to view that the management of human resources in their areas
is the shared responsibility between Human Resources and themselves.
133
Line
target
monitoring
expansion
of
headcount
at
Human Resources has long played a controlling and administrative rather than a
value-addingsupporting and consultancy role to line management. To enhance
the linkage between business strategies and human resources management, the
capabilities of Human Resources professionals should be enhanced. On the one
hand, Human Resources professionals need to be open-minded, be alert to
changes in business environment and possess good knowledge about business
needs and hence human resources needs of clients, and t o apply the human
resources expertise creatively and proactively. On the other hand, line managers
should share with Human Resources professionals strategic business issues and
allow them to participate in their business planning process. However, it may take
134
a long time to build up trust and rapport between Human Resources professionals
and line management.
As Human Resources Services Teams work closely with line management and be
responsible to Business Unit, they may tend to achieve Business Unit's interests at
the expense of the Company's. Besidesthere may be political pressure between
Human Resources Services Teams (client business units' perspectives) and
Corporate Human Resources Teams (company-wide perspectives) under the
existing structure. Overall coordination and control are critical. Job rotations for
Human Resources Professionals among different Services Teams and Corporate
Human Resources Teams may broaden their perspectives.
The new Career Progression Plan has been implemented for some time. However,
without proper monitoring, control and maintenance mechanisms, the Plan will
deteriorate and the objectives cannot be achieved.
As there may be changes in business environment and business needs over time
the previously determined career structuressalary structures, skills requirements
for different career steps as well as the assessment criteria may no longer be
applicable.
135
Good
There are no target staff distribution templates upon introduction of the Career
Progression Plan and ReshapingRetraining and Redeployment Programme, Thus
it cannot be assured that the distributions of staff across career streams and career
steps reflect the anticipated business and organizational needsboth in the nearand long-term. Though there are plans for manpower in the Business Plansthe
numbers are only described in broad categories, i.e. Professional/Managerial or
General/Supporting, not specific career steps. Without target staff distribution
templates effective
sourcing,
training,
development
and
redeployment
136
If
utilization of manpower resources in the years to come. Those who are now
declared surplus may be in great shortage in future. To ensure the future business
performance is not adversely affected and the people required can be trained in
advanceit is necessary to have manpower targets for the coming 4-5 years
137
138
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Appendix 3
Hongkong Telecom
Level of Achievement:
S/N:
Staff name :
Branch/Area/Location ;
Cost Centre Code :
N: Not Applicable
U: Unable/Unwilling to meet the requirements
L: Learning to/Occasionally meet the requirements
A: Adequately/Generally meet the requirements
F: Fully meeting customer requirements to
positively influence their perceptions
PART I
Review Period :
_
face to face: shows attention to dress and grooming to meet company standard
*4
*5
*6
*7
10
*11
13
*4
demonstrates that s/hc is familiar with the system to be able to focus 100% on the
customer
*2
; A
;;
".
...
12
H I mmI I I
attends consistently
*2
*3
,:.
.
: :
_ : :
Illl : _ R
:.;:; :
?:'
:
::
_
VS:::.
Hongkong Telecom
S/N:
Branch/Area/Location:
of Achievement:
N: Not Applicable
U: Unable/Unwilling to meet the requirements
L: Learning to/Occasionally meet the requirements
A: Adequately/Generally meet the requirements
F: Fully meeting customer requirements to
positively influence their perceptions
FART I
Review Period :
:::::::::::::,.
111 >*>>f | i |
1
1
uses voice/eye contact/body language lo show interest and positive response to customers
face to face: shows ariention to dress and grooming to meet company standard
*3
.REMARKS
*9
10
*11
. : s.::
.
.
>
>
'
.
-
can liaise with oihcr parts o f ihe business to get solulions for the customer
has enough knowledge to offer altcmatlvo solutions where opportunity arises
3
11
can recognize opportunity to sell ccrtam products and has ihe product knowledge
necessary to sell
*2
*3
dirfcrcmiating behaviours
.
.
sysicm nanrw?, Plcaw put ktier a, b etc. m ppropnaie box
(16 Dccmhcr
Hongkong Telecom
l i iI
N:
U:
L:
A:
F:
::::::::::::::::::::
mm
'S:.
N
i__
mm
mm
:::::
:::::i mm Ill:::::::::::::::::::: ___
III
C
U S To
O M
X R H
A N D
ONGB
EH
AVIO
R
uses voice to sound interested and positive when responding to calls and throughout the
conversation
0
1
10
e
b
can H e i s & with other parts of the business to get solutions for the customer
has enough knowledge to offer alternative solutions for customers where opportunity &rises
uses knowledge of company policies and procedures to help unit do the job effectively
;::
,.-.v.-.
/Xv-'vl'.'X*
SYSTEM HANDLING B E H A ^ O X I R S
:c:.;:.
Not Applicable
Unable/Unwilling to meet the requirements
Learning to/Occasionally meet the requirements
Adequately/Generally meet the requirements
Fully meeting customer requirements to
positively influence their perceptions
_ ! 1
..:
:::
_
_
:.
( 1 6 December 94/horoe/pijfl_5.CFO)
PA^T I (Contd)
Comments/Recommendation:
PAKTn
( ) I n t e n t i o n to satisfy customers
()Interpersonal skills & contribution
Details:
Assessee's
Signature
Date
Assessor's Name
Signature
Date
Endorsed by
Signature
Date
PART H I
Review Period :
Review of Overall Performance
Comments (e.g. special comments on performance in particular work areas, overall performance and development under the
review period)
A
B
C
D
Referring to the above rating scale and giving consideration to Levels of Achievement in Part I throughout the
year, please select the grade (A - E) most appropriate for the assessee, reflecting his/her overall performance.
Assessor's name:
Signature:
Date:
Signature:
Date:
Signature:
Date;
Name:
OVERALL
RATING
Hongkong Telecom
C O M P E T E N C Y ASSESSMENT & D E V E L O P M E N T F O R M
Customer Front Office
Lev&l of Competency
Assesses Name:
Career step/position
baing assessed against:
Period "under review:
Assessor's Name:
i
.t
. /
N : Not Applicable
U : UDable/unwilling to meet requirements
L: Leaniing to/Occasionally meet requirements
A: Adfequatdy/Generally meet requirements
FFully meet the requirements
. .
Genene: Gomp nc
1. Team Membership
2. Leadership
3. Results - orientation
4. Customer Concern
5. Personal Drive
6. Innovation
7. Communication
9. Decision Maldng
Stream-related
P r o
10. Delivery o f Customer
Service
...
Compete
Development
Activity
Required?
Additional Comments
Development Plan
Agreed by Assessee :
Agreed by Assessor :
Date :
Date:
Endorsed By :
Next Review Date :
Date:
Cl 6 Dectmber 94/home/pafyCOMBAS 1 .CFO)
_____
.Hongkong Telecom
1)
2)
Team Membership
Description
Development
Level
Indicators
a.
b.
.
d.
e.
f.
g.
Able to recruit suitable team members for projects, where necessary from
across functions
Create results as a team leader
Maximize the advantages of team effort and motivate all the members to
contribute on team goals
Able to ensure the make up of the team has sufficient expertise/experience
for the task in hand
h.
i.
j.
2.
Leadership
Development
Level
Indicators
Description
Creates results by setting a good
iBOdel. Develops self
a.
b.
c.
d.
e.
f.
g.
h.
i.
Create systems and atmosphere for effective teamwork and quality culture
Develop in others the ability, willingness and desire to work towards a
common objective
Manage performance of others by setting a. good example
j.
3.
Results - orientation
Developmeiit
Level
Indicators
Description
Is result - minded and achieves
task objectives
a.
b.
c*
d.
e.
f.
g.
h.
. Customer Concern
Development
Level
Description
Indicators
a.
5,
b.
c.
d.
e.
f.
g.
Personal Drive
Development
Level
6,
Description
a.
b.
Indicators
c.
d.
e.
f.
g.
h.
Innovation
Development
Level
Indicators
Description
Seeks new methods to create
improved worldjig practices
a.
b.
c.
d.
e.
f.
g.
/*
V"
|
.Hongkong Telecom
Commumication
Development
Level
8-
Description
Indicators
Communicates clearly and
effectively within a limited range
a.
Present information and opinion effectively in both oral and written forms
Communicate and obtain feedback from
customers and suppliers (internal
and external)
b.
c.
d.
e.
Development
Level
9.
Description
Indicators
a.
b.
c.
Plan and schedule work efft&ctively for self and staff if applicable
Monitor and control costs and expenses
Achieve pknned deadlines for self and team if applicable
d.
e.
f.
g.
h.
-i.
Decision Making
Development
Level
Description
Indicators
a.
b.
c.
d.
e.
f.
../
i y^mrK'rvir" rOVPFTESCIKSrHOVE'PGR-CFaH
Development
Level
Descriptioii
Delivers quality customer service
that satisfies customers
Indicators
a.
b.
c.
d.
11.
Increasing Sales
Development
Level
Indicators
Description
Increases selling effectiveness
a.
b.
c.
d.
e.
f.
tel
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References
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