Organizational Behavior: A Case Study of PCCW Company


With the legion alterations brought approximately by the milieus, machinery, fiscal system, political personal businesss, and the general populace, alterations in the organisation must be taken note of in order to cover with the changing demands of the work force and the clients. In this output-oriented society and coevals, every organisation must hold the accomplishments, capablenesss, endurance, and the schemes to be able to run into the demands and the demands of their market. As such, the uninterrupted alterations that organisations must undergo may be considered as their lone border in order to get by with the overall alterations observed in the society. Therefore, appropriate alteration direction must be done in a company to efficaciously and expeditiously facilitate and regulate the alterations needed by organisations.

In the aim of PCCW for market extension, protect its place, and make strategic understandings with other Asiatic companies, it has borrowed greatly to finance the $ 38 billion command for Hong Kong Telecom, which resulted to its debt of US $ 4 billion. Further diminution of its public presentation is brought approximately by its deficiency of assurance in the debt refund programs among shareholders ( Darlington and Cooke, 2000 ) , which contributed to its standing as the worst executing blue-chip company on the list of the Hong Kong Stock Exchange in 2002 and 2003 ( “ PCCW ” , 2007 ) . In add-on to its debt and alteration in ownership and direction are the increasing force per unit areas of competition among the industry. It has been reported that in August 2000, there were 165 external telecommunications services operators and 187 Internet market service suppliers. The addition in competition led to another cause of the company ‘s jobs, which is the being of monopoly for domestic fixed telephone. This became a major blow for the company, as many telephone operators no longer necessitate the gateways and local webs provided by PCCW ( Darlington and Cooke, 2000 ) .

Furthermore, another footing of its jobs is the lessening of its staffs and labour force, which donate to the diminution of its operations. An extra cause is the failure of the command between the company and China, for at the clip, China resisted to do audience with a company that is allied to the Singapore authorities, which besides became the footing of the jobs of the Sing Tel ‘s command in the yesteryear ( Greenlees, 2006 ) .A

Additionally, the job for the company is the by and large neglecting grosss in Hong Kong, with its failure to do considerable promotion to the China mainland. With this, heavy investing in communications all through East Asia must be required before the full potency of PCCW can be appreciated ( Darlington and Cooke, 2000 ) . A

External Change Driver

The PEST Analysis sets up an efficient geographic expedition of the peripheral impacts on a precise company by violation of the constituents into indispensable and perceptible elements or factors. The obvious necessities under this type of analysis include Political, Economic, Sociological, and Technological elements. Political factors include the restrictions in the policies of the Chinese authorities with respects to company audiences and amalgamations ; the authorities ‘s pick of companies outside the state, with which it would do treatments with ; typical pre-eminence in China ‘s legal system ; influence of British legal system in Hong Kong ‘s international fiscal minutess.

Economic elements comprise the advancement and underdevelopment of substructures in East Asia ; telecommunications monopoly ; debt of PCCW ; dollar rising prices and deflation rates ; fiscal crises ; crumple of plus monetary values ; rate of economic growing. Sociological factors include PCCW ‘s discrepancy with clients that are major shareholders ; unemployment ; alterations in communicating, selling and direction ; retaining separate high quality over human capital, linguistic communication, competition and challenge. Effectss of e-commerce to PCCW ; betterment and sweetening of its web site ; operation and maximization of the Internet ; faster dialogues, development of new ultra-modern tools, sweetening of R & A ; D through the Internet

Internal Change Driver

A A A A A A A A A A A One of the interior change drivers of PCCW is the alteration in its ownership, along with the accommodation in its supervising and its executive civilization. The civilization was so distorted with the amendment in the forces. Subsequent to the skill, most of the staffs working in C & A ; W HKT are now employees in PCCW. This led to the alteration in the imposts of the company, from a conventional, seniority-based, and non-market driven, it twisted to a strongly spirited, performance-based, and customer-focused company. Another internal driver is the alteration in the company ‘s chief concern. The quality of service is now the company ‘s primary dismay, and the company has been puting 1000000s of dollars in excellence and client service preparation. The 3rd internal driver is the alteration in internal procedures ( Hatch, 2006 ) .

Such alterations in internal procedures include implementing diverse quality plans, including quality betterment squads and six sigma plans. These alterations in the civilization of the company brought about the company ‘s reorganisation process, for case altering the divisions from a cost-center to a profit-center, therefore, doing all employees aggravated to do dialogues and concern traffics ( “ Cable and Wireless: Jobs Surveys, 2003 ) .

A In line with the company ‘s docket for alteration, several facets in the organisation can be taken note of, viz. , its scheme, construction, processes, and people. In relation to its scheme, PCCW provides solutions for port direction, security and CCTV systems, audio and ocular solutions, and proficient support and care services to assorted sectors in the industry, such as authoritiess, public services, air power, and broadcast technology operations. In add-on, it re-entered the nomadic market, collaborated with existent estate and broadband companies, and improved its telephone directories. In footings of construction, the part of its big squad of professionals, experiences and cognition in the IT industry provide first-class ICT solutions that would assist clients develop advanced and disputing concern chances.

In footings of procedures, the company facilitates outstanding invention, particularly in footings of IP-based concern services, New Generation Fixed Line services, broadband pay-TV, Internet entree, media content, large-scale IT solutions, mobility, and wireless inventions. In footings of people, it has about 17,000 employees, located in different parts of the Earth, including mainland China, South America, Japan, Korea, Thailand, Malaysia, Singapore, Taiwan, Europe, the United States, India, and the Middle East ( “ Company Profile ” , 2008 ) .

A Assessment on the Style of Leadership/Management

A A A A A A A A A A A As mentioned earlier, the direction of PCCW was transformed from a conservative, seniority-based, and non-market driven, to a strongly competitory, performance-based, and customer-focused company. From this transmutation entirely, it can be stated that the manner of leading in PCCW is a Proactive manner of leading. This is because a proactive leader focal points on accomplishing public presentation results of his or her squad and portions a vision, which compels the squad to travel towards that vision or end ( Holmes, 2008 ) . However, the presence of struggles and opposition on the portion of the employees may bespeak that the type of leading or direction they experience from the company might non be sufficient to carry through or fulfill their demands.

A A A A A A A A A A A A If PCCW Limited did non take any action sing their jobs, a Domino consequence of negative events would go on. Its debts would farther increase, which would afford the company to sell their assets and resources in order to do up for the debts it have in other companies. Resignation of directors would besides be another consequence of a no alteration scheme. The addition in debts would take to farther loss of company assets, and subsequently on, to farther loss of human resources. Due to the deficiency of equal resources and assets, there would the hold, inefficiency, and ineffectualness of procedures and operations in the company that would take to the diminution with the figure of its clients, as going less satisfied. The loss of clients leads to the loss of net income, therefore, ensuing to bankruptcy and immediate shutting of the company.

Proposed Change Strategy

A A A A A A A A A A A It has been identified that one of the jobs of the company is the deficiency of substructure development in East Asia, which hinders the development of the company. With this, the company must non wait for the development of the part, but must seek to happen alternate solutions and stuffs that would accommodate its procedures and the tendency of substructure in Hong Kong. If the company is bold plenty, it can originate in puting the tendency in the metropolis in footings of substructure development, given the right resources and the right accomplishments and expertness. In order to make so, the company can put in its Research & A ; Development in its quest to happen new supplies and stuffs. Another proposed alteration is the execution of public presentation direction schemes that would assist develop and better the overall public presentation of the organisation. Since the direction of PCCW has already been transformed into a performance-based direction, public presentation direction of the employees must be done in order to assist steer them with their undertakings and duties in the organisation. This is because public presentation direction serves to concentrate the attempts and attending of employees in critical undertakings utilizing public presentation feedback ( Bernardin and Russell, 1993 ) .

This would so let the employees to derive more cognition and develop new accomplishments in relation to their work in the company. Another alteration scheme is the execution and usage of Information Technology or Information Systems, which would ease in the organisation and information retrieval in the company and in effectual communicating. Through the usage of an IT or IS, the company would be able to form its client database that would let it to hold an effectual and efficient merchandise stock list, client followups, and measure client feedbacks for merchandise betterment. Last, the organisation can better its operations schemes through the betterment of its supply concatenation. In the direction of its supply concatenation, both the providers and the corporation would be able to hold a successful and well-organized association, therefore, forestalling the hindrance of commissariats and resources considered necessary by the organisation ( Robbins, 2004 ) .

A A A A A A A A A A A A First and first, the realisation of the alteration plan would surely promote confrontation among the employees and directors of the organisation. The beginnings and the evident impacts of this opposition were already mentioned in the earlier treatments. Resistance to alter of the employees leads to inflexibleness and deficiency of support, resulting to the hold of the alteration procedure and in internal procedures and operations. Second issue to take note of is the differences in the penchants of the direction and leading manners of directors in the organisation, eventful to change inter-departmental civilizations and patterns. Due to such differences, employees would be holding a stiff clip covering with other employees, which can be a promising beginning of struggles. Third issue is the possibility of necessitating to put off employees or transfering them to new occupation places that may necessitate new accomplishments, engineerings, and cognition. This may besides take to sculpt menaces and struggles in the organisation. Fourth issue is the demand for reformation in the sections that may or may non be contributory to the public assistance of employees. Fifth issue is the adequateness of resources, which would be indispensable in prolonging the demands of the company. Finally, the executing of new policies would be a concern for PCCW ( Simon, 2007 ) .

A A A A A A A A A A A A From the statement, it can be evident that in order for a company to see and put to death a alteration plan, it must be adept in taking note of different inside and exterior issues that would show an mixture of impacts to the employees and the public presentation of the organisation itself. As such, an efficient organisational alteration procedure would dwell of of import elements including its external environment, internal procedures and operations, the public assistance of employees, the support of top direction, and the satisfaction and demands of clients. Puting each component in synchronism and Concord would possibly vouch a successful accommodation process.