Effect of Skill Gaps in the Telecommunications Industry - Coursework Example

EFFECT OF SKILL GAPS IN THE TELECOMMUNICATIONS INDUSTRY Introduction The telecommunications industry has been described as one of the greatest machines which drive the world economies. This is demonstrated by the fact that the world markets are strung together through the complex telecommunication networks. Batt, Colvin & Keefe (2002, p. 575) illustrate those telephone networks, mobile phones, internet networks, computer systems are the attributes of the telecommunication industry. The industry is also characterized by significant structural changes and technological developments which have been impacted by skill gaps and skill needs within the labor market. The major structural change within the telecommunication industry is the globalization of the industry. Moreover, the telecommunication industry has been liberalized within the world economies. Nonetheless, the adoption and application of innovative technologies has been impacted largely by the changes in skill needs which are aimed at filling the skill gaps which emanate from the application of advanced technology within the industry. This essay gives a critical analysis and discussion of how the skill gaps and needs in additional to structural changes within the telecommunication industry have impacted on the labor needs within the industry. Skill gaps within the telecommunication industry have developed as a result of the changes in the industry operations and processes. Sumit (2008, p. 587) elaborates that these changes emanate from the application of modern technologies within the telecommunication industry which is aimed at adapting to the changing business environment and remaining competitive. Diana (2011, p. 93) asserts that the skill gaps which develop within the telecommunications businesses have led to the reduced productivity. This is due to the failure of the current employees of a telecommunication company to effectively apply new technology in meeting the objectives of business operations. For example the adoption of information system is the changes within many telecommunication businesses which have led to skill gaps. The skill gaps which develop within a company reveal that the workforce is not adequately employing the new technology in the performance of business activities. According to Keefe (2009, p. 43), the skill gaps within telecommunication industry have led to the increased need for training staff. The management and employees are trained on the application of advanced technology in the provision of telecommunication products and services to the customers. For example the use of telecommunication software applications which are adopted by the telecommunication companies leads to the increased need for training. Maria (2011) reveals that effective management of the telecommunication companies includes meeting the training needs of employees and the management so that the skill gaps and needs is met within the various functional areas. Skills are acquired through proper training of employees. Managers would also be trained in order to be able to apply the management information systems effectively in the management of telecommunication business processes. Diana (2011, p. 103) adds that managers are also trained in the use or application of the decision support systems in decision making on the various aspects of telecommunication business. Batt, Colvin & Keefe (2002, p. 587) point out that the skill gaps within the telecommunication companies have caused their management to adopt employee termination programs to pave way for the employment of skilled labor. This is usually the case when the anticipated costs of training are beyond the budgetary allocation for employee training. The loss of company employees has led to the reduced morale and motivation among the work force. Additionally, the ability of skilled employees to adapt to the changes within the labor force of an organization determines the achievement of objectives. Keefe (2009, p. 47) exemplifies that many telecommunication companies have been affected negatively by the changes in their labor force which is related to the adoption of the business culture. The new skills which are acquired by telecommunication businesses take long to adapt to the organization culture which reveals that they are not able to meet the expectations of the company in an effective manner. Telecommunication companies have incurred increased costs which are related to the desire to meet the increased skill needs within its workforce. These costs are related to the training of employees and hiring of skilled expertise as said by Batt, Colvin & Keefe (2002, p. 583). In addition, telecommunication businesses have incurred high costs in the outsourcing expertise for the management of new technology. Such costs include outsourcing of expertise for effective adoption and implementation of information systems. Sumit (2008, p. 589) adds that the costs which the skill gaps and needs because telecommunication businesses are related to the time spent in the implementation of new technologies. The training process usually takes a lot of time which impacts negatively on the output of the employees. It is for this reason that business organizations within the telecommunication industry are allocating huge sums of money for training of its staff and outsourcing skilled expertise. Maria (2011) demonstrates that it is as a result of the increased skill needs that the demand for skilled labor within the telecommunication industry has increased significantly. Therefore the telecommunication industry has contributed significantly towards the labor market. In general, the telecommunication industry within the world economies is relatively high in the employment rates. The expansion within the telecommunication companies leads to the need for skilled labor to perform within the new departments which are created to meet the corporate strategy for business growth. Paye (1995, p. 4) illustrates that the telecommunication industry has been rates as one of the rapidly growing industry. In the light of this illustration, it is therefore correct to point out that the growth within the telecommunication industry reflects that the labor market share of this industry is relatively high. The performance of the telecommunication companies within the industry and business environment has been impacted by the skill gaps which develop from the changes in the economy. Keefe (2009, p. 43) explains that gaps in skill have a negative implication on the performance of an organization and an industry in general. This justifies the training approaches which organizations use to develop their workforce so that they would improve productivity and as a result increase the performance of the organization in within the business environment. The management of telecommunication businesses aims at ensuring that strategic plans are laid to prevent the skill gaps which would develop as a result of the inevitable changes within the organizations. Batt, Colvin & Keefe (2002, p. 587) assert that the strategic approach to proper management of skill gaps include strategic plans for hiring, training and retention of skilled staff. The competitiveness of telecommunication business within the industry is affected by the gaps in employee skills and the related increase in skill needs. Telecommunication businesses compete for the labor force within the labor market. Maria (2011) asserts that the competitiveness of the telecommunication companies for labor is determined by the skill needs and gaps which develop as a result of growth and adoption of new technologies. The skill gaps within organizations can also stem from the adoption new business processes. It is as a result of the demand for skilled employees that organizations compete for talent. This competition has caused changes in employee turnover among the telecommunication companies. The need for skilled labor that would fill the skill gaps within companies has led to the loss of employees to business competitors. According to Diana (2011, p. 105), the competitive business environment is characterized by companies’ move to offer higher compensation packages to attract skilled and creative employees from the competitors. Structural change within the telecommunication industry is characterized by long term changes of a regulated economy which becomes liberalized. Batt, Colvin & Keefe (2002, p. 587) reveal that the telecommunication industry has achieved increased liberalization. The government policies and regulation of the industry in many economies has liberalized the telecommunication businesses which have led to less regulation of telecommunication business. This has in turn affected the labor market within the telecommunication industry through liberal employment policies within companies. Moreover, telecommunication industries are allowed by liberalization to operate within any economy and tap local potential and talent for improved telecommunication service delivery and performance of business processes. According to Maria (2011), the increased liberalization of economies of the world and the creation of economic regions is the cause of the increased demand for labor within the world economies. The telecommunication industry is characterized by talented and skilled labor from liberal labor markets that is the force behind the increased performance within the labor market. Globalization as a major structural change within world economies and the telecommunication industry in particular is the cause of the diversity within the labor force. Paye (1995, p. 4) points out that telecommunication companies have diverse workforce that plays different roles towards the achievement of the objectives and goals of these companies within the telecommunication economy. The globalized economy means that skilled individuals have an opportunity of working in any part of the world. It is due to this fact that the telecommunication companies have hired a diverse work force in terms of abilities, race, gender, and age, and ethnicity, nationality, political, economic and social standing. It is in this regard that the telecommunication industry has been described as non discriminatory in the acquisition of employees from the labor market. As a result, the diverse abilities, talents and creativity within a diverse work force have led to increased performance and innovativeness of telecommunication businesses in provision of services to their clients (Sumit, 2008, p. 592). According to Paye (1995, p. 4), the employment policies of telecommunication companies have been changed to suit the structural changes within the industry and the economy in general. This illustrates that telecommunication businesses are mandated to meet the changes in the labor laws which governments adopt to meet the demands within the globalized economy. The management of the hiring and retention of employees within the industry is thus more compliant with the legal frameworks on labor. For example the compensation as a way of retaining the employees and attracting new talent is effectively governed by appropriate policies in order to ensure that employees are motivated by attractive payment packages (Batt, Colvin & Keefe, 2002, p. 575). Moreover, the procedures of hiring new employees have been changed by telecommunication businesses to ensure that they meet the international standards. Diana (2011, p. 94) says that structural changes in the telecommunication industry and the global economy in general have led to the internationalization of telecommunication companies. The internationalization of telecommunication businesses is motivated by the nature of structural changes in company operations such as the application of internet technology to enhance the communication experience of customers form all over the world (Keefe, 2009, p. 49). More significantly is the fact that the telecommunication industry has registered as one of the fastest growing industries within the world market. The structural changes within the society such as the increased need for communication approaches that apply modern technology is among the examples which illustrate the implication of structural changes on the performance of telecommunication businesses. Diana (2011, p. 94) adds that the sectored employment is characterized by structural changes which have led to implications of the internationalized telecommunication business. The significant of the telecommunication industry in the labor markets of the world is said to be one of the major impacts of the structural changes within world economies. This is attributed to the increased demand for labor by the telecommunication companies which operate in various parts of the world in the internationalization process. In the light of the above discussions and illustrations, it is conclusive that the telecommunication industry has played a significant role in the labor market. This is revealed by the large number of people who are recruited by the telecommunication businesses as they expand and grow into the international markets. The gaps in skills and the need for skilled labor to fill these gaps has impacted on the hiring needs, training practices and termination policies of telecommunication companies. Moreover, the costs associated with hiring, retaining, training and outsourcing experienced and skilled staff has increased significantly due to the gaps in skills within telecommunication business. The structural changes within the global economy and the telecommunication industry in particular have led to the increased demand for labor within companies. This is attributed to the expansion or growth of telecommunication industries within the globalized economy. The internationalization of telecommunication companies and the diversity within the work force within the industry are also implications of the structural changes within the telecommunication industry. References Batt, R, Colvin, A, & Keefe, J 2002, 'Employee Voice, Human Resource Practices, and Quit Rates: Evidence from the Telecommunications Industry', Industrial & Labor Relations Review, 55, 4, pp. 573-594 Diana H., 2011, 'Structural change and industrial classification', Structural Change and Economic Dynamics, 22, pp. 93-105 Keefe, J H 2009, 'Is Digital Technology Reshaping Employment Systems in U.S. Telecommunications Network Services?', Industrial & Labor Relations Review, 63, 1, pp. 42-59 Maria D. G., 2011, 'A unified theory of structural change', Journal of Economic Dynamics and Control, 35, Growth, dynamics, and economic policy: Special JEDC issue in honor of Stephen J. Turnovsky, pp. 1393-1404 Paye, J. 1995, "Technology, employment and structural change", Organization for Economic Cooperation and Development. The OECD Observer, no. 194, p. 4 Sumit K. M., 2008, 'Broadband adoption, jobs and wages in the US telecommunications industry', Telecommunications Policy, 32, pp. 587-599 Read More