Human Resource Management Models and Strategies in Telstra - Case Study Example

Institution : xxxxxxxxxx Title : Human Resource Management Tutor : xxxxxxxxxxx Course : xxxxxxxxxxx @2010 Introduction Human Resource management is a practice that plays the significant role of attaining the goals of an organization. In the process of striving to attain the objectives of the organization it does not exist to achieve some goals of its own goals , Peter and John (2007) highlight that management is getting things done through people, this implies that human resource management performs the role of meeting the organizations objectives through using the workforce. Telstra is categorically one of the biggest Tele-communication organizations in Australia that has had a long History in the country. This particular essay aims at examining the Human Resource Management function within Telstra in light to the notion that human resource management contributes to meting organizational goals however the practice may sometimes not achieve some goals of its own. Further more the essay will analyze the strategic purpose and direction of the organization .How the planning and implementation of HRM Policy and practice has so far enhanced the attainment of the organizations corporate goals. The Telstra Corporation Limited (Telstra) offers a wide range of telecommunication services all over Australia including basic access services to many households and businesses, local as well as long-distance telephone call services, internet and mobile services. Telstra Corporation has telecommunication networks, distribution channels as well as integrated portfolio of assets such as Bigpond, Foxtel and Sensis. Over the recent years the organization has been experiencing a declining performance; however Telstra has been focused on serving its consumers with better and improved telecommunication and information technology services (Trujillo 2006). Human Resource management is therefore an essential management function in Telstra which has facilitated the organization ability to meet customer’s needs and maintain its competitive advantage. Human resource management In Telstra involves the practice and application of various Human Resource management models and strategies. With the aspect of overall accountability for capability and culture, Telstra has various HR corporate functions whereby managers and HR advisors partner in order to establish a culture of high performance and customer satisfaction. The customer is actually the key or main cultural priority for every stakeholder in Telstra. Hr professionals are required to work with other business partners in order to ensure that customers requirements are attained through the services and products offered. In deed Customer satisfaction can be termed as one the essential elements of meeting the objective/goals of any organization. Consequently Human resource management acts as contributory factor for enhancing customer satisfaction which is basically the center of all activities in Telstra. Tamkin, etal, (2008) highlight that the goals of human resource management put emphasis on the influence of the manpower approach of developing a highly efficient and productive workforce. In a situation whereby a lot of effort is utilized by the Human resource department to attain customer satisfaction, the role of development of an efficient and productive workforce may be sidelined. The other key strategy used in Telstra in attaining organizational goals using Human Resource Management is the establishment of collaborative partnership whereby other managers and HR managers partner in order to formulate strategies of meeting organizational goals( Jannis 2004). In many cases managers of other department such as the marketing department, finance and the production department do not realize that they are all Human Resource managers. This is because they are also involved in attaining organizational results through the use of people. Many a times the managers of various departments leave the role of employee welfare and proper management to the HR department forgetting that, without an effective workforce their outlined objectives or even the overall organization objectives may actually not be met. Lawrence (2008), highlights that most of Telstra’s declining performance over the years can be attributed to company’s casual approach of handling the workforce in various departments. Telstra has managed to initiate various change strategies that can assist in meeting its business goals. Some of the organizational change initiatives undertaken by Telstra to improve it services include; the organization has undertaken innovative change whereby the management has taken the initiative of inculcating changes in terms of innovation to increase the companies’ productivity. Telstra controls and provides internet services such as IP networking, servers, email, and network hosting within a wide range of subsidiaries. In addition t Proactive change has been undertaken whereby the organization has formulated strategies that will assist to incorporate major changes in the organization from the development of the organization major activities. Some of the proactive changes undertaken by the organization involve adoption change strategies used to enhance growth, development and efficiency within the organization (Campbell, 2007). It is essential to note that all initiatives of enhancing organizational change involve the efforts of the employees. Meaning that employees have to increase their efforts and also increase the time they spend in the working stations in order to boost the organizations change strategies. The human resource management department will therefore have the crucial role of making employees increase their efforts in addition as highlighted by Marcia (2009) whenever a business begins to apply the change process, employee communication is very essential in order to make them fully engaged in the change process. In the context of Telstra, what is evident is that the organization utilizes Human Resource to enhance organizational change however; the picture created is that the employees are not effectively compensated for their efforts. For instance the 2008 strike by Telstra’s unionized workers was essential grounded on demands for better pay. As highlighted by the Maslow’s motivational theory if the needs of employees are well met, they become more motivated to work and therefore meeting the objectives of the organization. What is evident is that in despite of the efforts of human resource management of meeting the organizational objective of initiating change, HRM in Telstra does not end up meting the goal of motivating the employees. In 2009, thousands of Telstra employees stood up to reject the repeated practice by the management of pressuring them into job contracts that are substandard. One of the key functions of Human resource management involves selection and recruitment of the workforce, and further allocating their working remuneration and contracts. The utilization of methods such as contracting and outsourcing can be termed as strategies of meeting the organizational goal of cutting costs linked to employee remuneration. However in the advent of the Human resource management department working towards meeting this particular goal of the organization, it may end failing on its part to meet its own goals of ensuring that the organization has competent employees who are committed to the organization. This is because the by Telstra imposing substandard contacts to the employees and also pressuring them into contracts in order to cut costs may actually be a failure on the part human resource management (Mathis & Jackson, 2008). The 2009 Telstra protesters also opposed the blatant strategy of division of employees into different classes of worker. The application of the Marxism theory whereby class is used to differentiate the workers is a subject of great concern in Telstra. Legge, (2004) argues that that human resource management should enhance good employee relations through developing an environment were there is an aspect of equality among employees. Through the development of such an environment creation of teams becomes easier as a result the objectives of the organization can easily be met. In addition the HRM should facilitate a corporate spirit among employee as opposed to division in terms of class. What is evident from such kinds of complains from the workforce is that the HRM may actually be striving to meet the objectives of the business but not meeting the objective of enhancing good employee relations. Another function of human resource management is negotiation of the needs of the employees to the rest of the managers. Jia, (2009), highlights that it is essential for employers to respect the fundamental right of employees to union membership and collective bargaining. Telstra management in 2008 broke off negations with unions and embarked in formulating its own strategies of resolving the problems of the employees. Lawrence (2008).The basic implication of such a move is that the human resource management department did not meet its own function of promotion of employee welfare through effective negotiations with the Telstra union as a result in despite of the department being involved in development of initiatives to improve the organizations performance, its objectives are not fulfilled as required. A recent study undertaken by Edmund and Melanie (2009) to evaluate responses of employers towards Unions in United Kingdom indicated that were employers give support to union campaigns they tend to be more successful and negotiations also take place effectively. However in a circumstance were the employers response is hostility towards unions then it becomes difficult for the organization progress in solving a particular dispute, which is basically a failure in the practice of human resource management. Generally the human resource management process calls for a coherent goal of increasing and retaining employee-head count in the organization because they are the most valuable asset (Edmund & Melanie 2009).Therefore it is essential for Telstra to realize that the workforces collectively and even individually are the main contributors to achievement of the organizations objectives. It can however not be denied that Telstra has initiatives of good human resource management policies and practices which have worked towards attaining the objectives of the organization. Planning and Implementation of HRM Policy and Practices that have Worked in Attaining Telstra’s business goals Telstra has over the years been faced by various challenges essentially from the workforce which have resulted to a decline in its general performance. For instance the decrease in Telstra share price in 2008. However the organization has adopted various HRM policies and practices to enhance organizational change which have tended to be fruitful in terms of meeting the corporate goals of the business. People oriented challenge have been initiated by the organization .Telstra concentrated on people oriented changes, for instances improving employees attitude, behaviors, motivation and employees skill. These factors are important in the growth and development of Telstra Corporation limited. In terms of enhancing the motivation of the workforce, the organization provides a wide range of benefits and rewards available to its employees. For instance the Telstra reward program can be described as an integrated and comprehensive program that offers benefits that are financial and non financial to its staff beyond their normal remuneration packages. The benefits include discounts on services and products, and benefits attained from corporate relationship. Just like any other organization Tetra has been faced with challenges when trying to enhance people related change. For instance there have been several attempts of strikes organized by the Telstra Union. The disputes that basically existed between the workforce and the management of the organization involved the aspect of pay rise which most often causes contention in many organizations (Ben 2009). Telstra also utilized the contingency management theory to enhance its organizational change practice for meeting its business objectives. The theory basically advocates for an effective linkage between the implemented changes and HR strategies. It is essential that during change implementation the organization should not eliminate the key players who are supposed to effect the changes and that is; the workforce ( Jamroq and Overhot, 2004).Telstra further designed measures of preventing or rather minimizing employee’s resistance to both technological and innovative change. This strategy paved way for the business to succeed in its activities through the following approaches: dealing and handling incidences of misunderstandings, low morale to change, self interest and employee’s discrepancy with reasoning. The organization took the initiative of educating and communicating to employees on the importance of change, secondly, Telstra encouraged more of employee’s active participation on organizational change programs, this was mainly carried out to allow more employees if not all to adapt to the new changes made in the organization. The human resource manager of Telstra Corporation limited enhanced and facilitated more on the managerial support that is associated with supporting employees to handle matters that relate to fear and anxiety that may arise due to the new changes (Campbell 2007). The process of implementing attaining business objectives should not be forcefully imposed. Telstra managed to outshine other organization since it took the changing approach with a lot of care. Before instituting changes to the organization, the management took the role of educating its employees on the importance of the changes; they did not just impose these changes to employees. Imposing the changes would to some extent result to damaging the organization rather than bringing progress and transition. An organization that tends impose forceful changes on its employees is likely to lower the morale of its employees. Marcia (2009), outlines that Change can be obtained without necessarily imposing them to employees. Whenever a firm implements rule, policies and certain procedure without fully discussing and educating the employees either directly or indirectly, the employees may not show their commitment to the change process. The motivational approach has also been implemented by Telstra. Individuals such as Herzberg and Maslow propagated the motivational theory as a fundamental strategy of improving the performing capabilities of people. The motivation theory is linked to one major parameter, which is the aspect of job satisfaction which further leads to a productive workforce who can work hard to attain the goals of the organization. The theory further highlights that job satisfaction is enhanced by factors such as recognition, achievement and personal growth. Telstra utilized strategies of enhancing job satisfaction through the Telstra reward program an integrated and comprehensive program that offers benefits that are financial and non financial to its staff, beyond their normal remuneration packages. With such a strategy the employee motivational level is improved. Herzberg highlighted that if the organization maintains the strategy of motivating its workforce then they defiantly become enriched and the need for employee supervision becomes lesser therefore attaining organizational goals becomes much easier (James 2010). Telstra has also devised employee development opportunities that are aimed at developing well rounded employees who can handle various business practices also known as multi-tasking. The organization as an aim of devising a workforce that is well connected who are able to show enthusiasm in towards their work. For instance employees are now allowed to move vertically within their areas of specialization or even to the general section if they decide to or also from the specialized level to corporate roles. Human resources at Telstra are offered back-up in terms of career development by themselves using a robust development plans which are acknowledged by managers (Tamkin 2008). Once an employee has identified the experience and development they require in order to take the next step in their career, a manager is ideally assigned to assist the employee to move towards the stated objective. Gubman, (2004) highlights that; development of employees is mainly aimed at ensuring that the organization has willing and skilled workforce who are able to meet the objectives of the organization. This objectives range from individual objectives which assist the employee in the achievement of their own individual goals which further influence the individual’s contribution to the organization. Other objectives are the organizational objectives which promote organizational effectiveness and lastly functional objectives whereby departments contribute in a suitable level to attaining the needs of the organization. Telstra has also implemented the Team building strategy, the practice of increasing their utilization of team work structures was aimed at improving performance and also to adapting to the rapidly changing technologies. The outcome of team building is to accommodate commitment into group work and sharing of knowledge to improve the performance of the organization .The subject of group work utilization is actually an essential aspect of performance management which is an essential function in Human Resource Management. The identity theory proposes that the transformation of individual attitudes and activities into aligned achievement based on collective objectives is essential in the attainment of organizations goals (Hyondong and Yaping 2009). Lastly in order to resolve the various strikes that has possed a threat to Telstra. The new CEO David Thodey in 2009 May signed a conciliatory approach in terms of employee relations which he sent to ever member of stuff through email. The approach involved a new beginning whereby the company would start adopting the “good-faith bargaining" strategy and also begin new negotiation practices. The CEO further highlighted that the organization has a new aim of developing enterprise agreements that are equitable to both Telstra employees and employers. In addition the management was also stated its commitment towards treating the employee and their bargaining representatives with at most respect through consulting with the Telstra Union before commencing of any formal bargaining process(Lawrence 2008). The initiative highlight above act as a good indication of Telstra plan of improving the practice of human resource management through recognition of the fact that employee play a crucial role in the attainment of the objectives of the organization as a result their issues should be addressed carefully and with critical concern. Conclusion Human resource management enhances manpower management in order to attain the goals of an organization. In many case human resource management may strive to attain the goals of the organization and later realize that its own goals have actually not been met. Telstra is a good case study that can be used to explain such an occurrence. The organization has over the years experienced numerous challenges which have which have resulted to initiatives of organizational change strategies. However in despite of development of such initiatives Telstra still experienced the challenge of managing its employees. What is evident is the lack of recognition that workforce is actually the center of attaining the objectives of the organization. The function of human resource management therefore does not become much practical if the organization improves its performance in the market and maintains its competitive advantage yet frequent strikes occur. It is essential for the organization to adopt Sustainable management practices can such as repackaging employee’s salaries in order to avoid strikes which may eventually the goals of the business. Bibliographies Ben, G, 2009, Strikes loom as unions reject Telstra's latest offer. Unions reject a deal offering a nine percent pay increase. Australian Business. Campbell, D. (2007) . International Telecommunications. Lulu.com, Australia. Edmund & Melanie, 2009, ‘’Employer responses to union organizing: patterns and effects.’’ Human resource Management journal. Gubman, E., 2004, ‘HR Strategy and Planning: From Birth to Business Results', HR. Human Resource Planning, 27(1), pp 13 Hyondong & Yaping, 2009, ‘’The roles of tacit knowledge and OCB in the relationship between group-based pay and firm performance’’ Human Resource Management Journal. James L, 2010, ‘’A Strategic Agenda for Public Human Resource Management Research Public Personnel Administration, . 3,( 1), pp. 20-43. 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