Issues Faced by Oreedoo Telecommunications - Essay Example

INTEGRATED PROJECT MANAGEMENT: CASE OF OREEDOO TELECOMMUNICATIONS Table of Contents Table of Contents 1 Introduction: 2 Issues Faced by Oreedoo Telecommunications 3 Underlying Causes of problems identified 4 Nature of the problems faced 5 Approach for problem solving 6 Employee Management Issues Faced by Oreedoo 9 Inter-industry Relationship Buildup for Oreedoo Telecommunications 12 Recommendations 14 Conclusion 14 Reference List 16 Introduction: The nature and types of problems being faced by business houses in the contemporary scenario are more complex than ever (Hekkert et al. 2007). Pahl-Wostl (2007) supported that changes in business environment and also the regulatory factors have created barriers for companies to operate smoothly in their target markets. Cool and Schendel (2010) noted that the growing competition in the international and domestic markets is pushing firms to expand their business scope, however, the strict regulatory boundaries are preventing the transition of domestic firms to multinational organizations. Oreedoo Telecommunication operating in Oman is the case considered in this report. Although being one of the largest organizations in its domestic market place, Oreedoo Telecommunications is not the biggest market share holder. The biggest competitor of Oreedo is Omantel. Omantel is also one of the most influential companies in its concerned market place. It has set up connections with various influential people and already developed a considerable customer base. Apart from competition, Oreedoo is also facing other challenges related to the regulations of the market and internal problems associated with their talent and employee management. Oreedoo is finding it hard to manage their human resource elements as the employee base is not steady and the employee turnover rate is high. Furthermore, although Oreedoo has acquired the resources for pursuing their strategic objectives, limited employee base in causing barriers for the process. Focusing on these events, the report will analyze the root of the issues faced by Oreedoo and also try to provide suitable solutions for nullifying them. Issues Faced by Oreedoo Telecommunications As observed in the given case study of Oreedoo Telecommunications, the company is trying to establish itself in the communications industry of Oman but is facing some critical problems in doing so. The first issue noted was the immense competition faced from established player such as Omantel. Being one of the early entrants in the communications segment of Oman, Omantel has been able to acquire a large consumer base and have also established relationships with influential and well positioned individuals. This also focuses on another critical barrier for Oreedoo Telecommunications which is the underdeveloped legal and regulatory structure of the communications segment of Oman. Because of limited regulatory functions in the industry, the manipulation of the legal framework is high. It can be mentioned here that the telecommunications industry of Oman is yet underdeveloped and does not have an appropriate governing body. On the other hand, the licensing process implemented by the Omani Government through TRA has increased the demand of the market and the competition among the firms for operating in it. Almost 28 international companies operating in the communications industry has applied for the license which has further reduced the scope of market for Oreedoo Telecommunications. Moreover, the problems related to the internal management and functions of the company have enhanced its barriers to success. In this regard, Cool and Schendel (2010) mentioned that organizational processes can align their strategic objectives with their operational processes only when they have the right human resource for handling the critical functions. In this regard, Oreedoo is facing two major issues, the first issue is the irrelevance of the existing workforce and the second issue is the increasing rate of employee turnover. Apart from these, Oreedoo Telecommunications also does not have any steady relationship or networks with the industry or government authorities which is making it difficult for the company to obtain their license. On the top of that, the unstructured infrastructural facility is also causing operational problems for Oreedoo which can be connected with their issues of human resource management. The challenges thus faced by the business are reducing their operational and strategic functions significantly. Underlying Causes of problems identified From the above analysis of the issues faced by Oreedoo Telecommunications, it can be noted that there are four key issues faced by the company, namely regulatory issues, license obtaining, employee management and inter-industry relationship buildup. One of the key factors related with these issues can be considered as the strategic planning process of Oreedo which has not been able to design and develop any appropriate approach for handling these issues. As mentioned, the telecommunications sector of Oman is unregulated and underdeveloped which creates the option of bending the policies for existing market leaders such as Omantel. Oreedoo in this context has limited abilities to develop an influential relationship with the authorities such as TRA. This will also hamper their chances of obtaining the license for operating in the telecommunications segment in a hassle free manner. It shows that the top management of the organization is yet to develop any specific way out of the licensing and relationship issues. The next issues of Oreedoo Telecommunications are their employee management processes which is not being able to retain their staff and boost their performance up to their maximum potential. It can be noted that the company has acquired sufficient resources but is unable to employ them as the organizational functions are not properly developed and designed. On the other hand, the business management processes of the company are also not having a strategic approach for relating their human resource with the organizational mission. In the words of Holman, Devane and Cady (2007), the contribution of the work force of a business is regulated and improved up to its maximum potential when the interests of the employees and organizations are performed on a shared platform. Based on this sentiment, it can be noted that Oreedoo needs to ensure that the employees have a clear understanding of their roles and responsibilities so that they can enhance their performance and productivity in relation to the organizational objectives of the business. Apart from this, the infrastructure of the company should be designed in a manner so that the operational practices contribute towards simplification of the work process for the employees and also helps the managers in assessing the progress of the company in respect of each individual department (Brusoni and Prencipe, 2009). The final issue for Oreedoo Telecommunications is their limited relationships with other companies operating in the concerned industry. Oreedoo is one of the new firms in the industry which shows the reasons behind a lower consumer group in comparison to older firms such as Omantel. The relationship buildup process is important Oreedoo so that they can increase their operational performance with the increased resource base of the company. Oreedoo should try to engage in new ventures with existing players in the market which can also enhance their brand image and help them reach the nation wide customer base. Nature of the problems faced The nature of the problems faced by Oreedoo Telecommunications can be segmented in accordance with their implications on the strategic, tactical and operational planning of the company. The issue related with the licensing process of TRA is an operational challenge but also poses serious impact on the strategic operations of the company. Considering the fact that other international firms are also applying for obtaining the license, the competition level for Oreedoo is expected to increase rapidly. The competition from the domestic firms are already high in Oman’s telecommunication sector, the inclusion of international brands will further enhance it and make it tricky for new contestants such as Oreedoo. Considering the issues related with formation of business relationships with other business houses, the development of the efficient network in the business segment is important for sustainable growth of the business (Cool and Schendel, 2010). It can be noted that although, Oreedoo is among the biggest domestic firms operating in the telecommunications segment of Oman they are not the most influential. They need to create relationships which can help them guide through the unregulated and underdeveloped mechanisms of the concerned industry. The nature of this issue can be considered as tactical for the planning and development of Oreedoo. The internal challenges faced by Oreedoo in context of employee management and resource management are mostly operational in nature but again have a high influence over the strategic growth of the firm. It can be noted that the resource base of Oreedoo is stable but the resource utilization process is extremely unhealthy as the organization does not have the required process for supervision of their human resource activities. Finally focusing on the regulatory issues of the telecommunications segment of Oman, Oreedoo realizes that unstructured regulations has only enhanced the scope of business for existing market leaders such as Omantel. However, this can also be considered as a tactical problem highlighting on the fact that government regulations will always be in place for monitoring and controlling the activities of private sector firms. Approach for problem solving The problem solving process for Oreedoo Telecommunications will approached by segmenting the various issues into hard and soft terms. The process of segmentation will relay on the understanding of hard and soft issues faced by a company and the probable solutions available for the reducing their impact on the operational performance. In the words of Fiss and Zajac (2006), hard problems are those which have a specific approach and single solution meanwhile soft issues can be approached with multiple solutions and also indicates a larger scope of change in the operational functions of the firm. The previous segment had analysed the nature of the issues faced by Oreedoo Telecommunications in terms of their influence on the planning and implementation process of the firm. The problem solving approaches to be suggested will try to reduce the impact that was analysed in the preceding segments of the report. Problem Solving Approach for Regulatory Issues and Licensing of Oreedoo Telecommunications The issue referred in this segment is that of the regulatory complications faced by Oreedoo and the complexities in the process of obtaining the license imposed by TRA. The complication for Oreedoo is mainly related with the underdeveloped regulations within the telecommunications segment of Oman. Limited regulations have also increased the influence of existing players such as Omantel. First of all, it has to be noted that the identified issue is of soft problems or the hard problems. Based on the concept of following issues, Todnem (2005) many firms develop a different approach which shows that the nature of the problem is soft. Now in order to resolve the concerned case, the soft systems methods can be implemented. The first step of the method is to identify the primary and the supporting issues that have already been performed in the preceding sections of the study. The next step is to analyze the situation in respect of the primary issues and supporting issues and assess their implications on the operational processes of the business. The analysis of the regulatory conditions of the telecommunications sector of Oman will begin by understanding the economic growth and the political influence on TRA. It has to be noted that many international brands are applying for the license and hence the competition for obtaining the license may not be performed on ethical grounds by all the applicants. Hence it is necessary to understand the relationship of the competitors with that of the Government and the relationship between the Government of Oman with TRA. The situation analysis will also include the data analysis for assessing the historical background of the telecommunications process so that Oreedoo can include the crucial factors related to license obtaining process in their business programs. The third step in the process is to identify the risks associated with these issues and also set the priority level for each of the risks identified. The risk identification related to the regulatory issue mainly focus on analyzing the probable impact of the underdeveloped infrastructure of the telecommunications segment on the operations of Oreedoo. The risk identification can also be specified in terms of priority by utilizing the impact matrix model. Up on identification of the risks, the company can proceed towards the development of theconceptual framework for solving the concerned problem (Harris, Janes and Boonthanom, 2005). The comparison process will help Oreedoo in understanding the relevance of their approach in context of the selected issue i.e. regulatory and license obtaining. The comparison will also help in revealing the most suitable changes that can be implemented within the company and hence will frame the sixth stage of the process which is the comparison between the original risks identified and the probable solutions to the problems. It has to be considered that the changes implemented within a firm can also change other functional aspects and hence Turner (2014) noted that strategic planning and risk identification process must go hand in hand so that a firm is able to develop counter measures for the impending changes that may hamper their growth and development process. Relating the suggested approach with the issue of Oreedoo, their primary risks in terms of license obtaining and regulatory restrictions are competition with other international and national brands operating in the industry, increase in the administrative expenses of the firm and losing the authority of operating in the Oman telecommunications market. The conceptual framework for Oreedoo will thus reflect the strategies to be implemented for reducing the negative aspects of regulations on their operational processes. Employee Management Issues Faced by Oreedoo The human resource approaches of Oreedoo have not grown enough to control and monitor the direction of work being performed by the workforce. It was noted that the internal infrastructure of Oreedoo was not developed in an appropriate manner and hence the accuracy of employee work was not satisfactory. Oreedoo has designed and acquired a significant resource base but due to limited personnel having the knowledge about the operations of their resources, the company is not capable of utilizing them up to their potential skills and talents. The employee management processes of Oreedoo is mainly suffering due to improper monitoring, performance measurement, job delegation and most importantly the recruitment and selection processes. In this regard, the company has to consider new strategies which will help them in enhancing the engagement of the employees with their operational roles and responsibilities. The challenges faced by the company also ensured that the organizational practices are not focused towards the strategic aims and the existing rate of development. Brunninge, Nordqvist and Wiklund (2007) noted that often firms fail to develop their human resource practices in accordance with the developments and changes taking place in the company. This reduces the focus from the changing work processes and the requirements of the employees leading to a demoralized workforce and decreasing performance level. The issue of employee management can also be related with the soft systems as the applications of strategies in regards to the various sub factors will vary. However, in order to follow a hard systems strategy, Oreedoo can relate the primary objective of the problem solutions with all the primary and supporting faults being analyzed. The key risks created by the employee management errors for Oreedoo are increasing employee turnover and reducing performance level of the employee base. The situational analysis of the process will focus on the internal management process, the strategic considerations for HRM functions and finally the monitoring process of the operational activities of the business. In order to relate the problem solving approach with the strategic objectives of Oreedoo, the identified risks should be measured in context of the overall performance of the company. The conceptual framework for this step will not only reflect the root definitions and the relevant systems but also include the alternative approaches which can be implemented in case of any unprecedented changes in employee behavior and employee engagement towards the business. In context of the talent management and talent identification aspects Oreedoo needs to implement systems which can help the employees in focusing on their jobs and also help in assessing their contribution towards better performance. One tool that can be used in this respect as a performance measurement model or as a tool for effective job delegation process based on the individual performance of the employees (Aryee and Chay, Y2001). An external consideration for improving the performance of Oreedoo is that a weak and unregulated workforce also reflects the ability of the business and adds in the brand equity of the company. Thus, if Oreedoo were to establish good business relations with other players in the market, they need to have the ability to perform in accordance with the requirements of the potential associates. On the other hand, Davila (2005) observed that majority of the workforce of Oman operating in the private segment companies are not Oman nationalities but they posses high qualification and knowledge about their job roles. The cultural diversity can be a problem for Oreedoo but an unsettled infrastructure is the major cause behind the poor human resource management process of the firm. Relating these issues, the fifth stage will include comparison of the results of the situational analysis and the conceptual framework reflects a marginal shift in direction as the conceptual framework considered the growth in performance of the existing work base with proper measurement and controlling techniques rather than recruiting new employees and also investing in the training and development activities. The sixth step of the soft systems structure for employee management issues of Oreedoo will engage in assessing the authenticity and validity of the strategies considered in context of long-term sustainability. One of the most debatable topics would be the selection of the performance management tool. Although balanced scorecard have been suggested, it may not be able to cover all the aspects of the business functions considering the fact that human resource and operational processes have changed rapidly courtesy of technological growth. On the other hand being a service focused firm, it is essential to note that the performance measurement process should also be designed in a soft systems approach so that Oreedoo can effectively implement any changes in their work process in relation to the market demands. The final step is to implement the changes agreed upon by the company. The implementation of the human resource changes will be done in a singular activity across all the domestic subsidiaries of the company based on the compatibility. This will increase streamlining of operational functions and also relate them with the management processes. Inter-industry Relationship Buildup for Oreedoo Telecommunications The inter-industry relationships have been marked as the process of developing the social set-up of a company in a competitive scenario (Bach and Kessler, 2012). This statement can be applied in the case of Oreedoo Telecommunications. The company is among the biggest of local brands in telecommunication sector of Oman, but they do not have any influence over their internal stakeholders, regulatory policies and the external stakeholders. Comparing the position of Oreedoo with Omantel, it can be noted that Omantel has adapted to the conditions of business environment. It accepted the unregulated nature of the market and hence engaged in making relationships that would help in their future endeavours. The business network of Omantel has expanded significantly over the years and helped them to acquire a huge customer base. This also shows the ability of the human resource management of Omantel to effectively control the changes taking place in the structure of the company. Focusing on the aspects of industry relationships for Oreedoo, this issue can again be considered as a soft systems approach considering the various methods involved in developing business relationships or even individual network in the authority committees. The primary challenge in this regard has not been the regulatory or the infrastructural issues in case of Oreedoo but it’s their underdeveloped strategic planning process. The strategic decision making process of Oreedoo has lacked the vision of identifying the needs and the requirements of the company in context of the industrial environment. Goodman and Rousseau (2008) stated that business networks of a firm not only increases its resource base but also helps the company in surviving the challenges of industry with an amalgamated effort. For instance, appropriate business partners can help Oreedoo change their internal problems of unstructured infrastructure. Considering the soft systems approach, the situation analysis of Oreedoo in this regard can yield a poor performance and lookout of the company for improving their business influence on the market. It can be seen that Oreedoo only focused on the utilisation of resources for enhancing the supply chain and other operational functions of the company. On the other hand, Oreedoo failed to manage their employee base which rendered the resource acquirement process ineffectual. Thus, the three primary factors related with the Oreedoo business networks is to identify and create business relationships with other existing business houses in the industry, the 2nd objective will be to identify and create relationships with individuals and groups based on their potential to help the company out and the final aspect of the business process will be to relate the business relations with their organisational objectives. In context of business relationships, Oreedoo can consider any approach such as alliance, merger, acquisition or joint venture. All these strategies can help Oreedoo connect with the other business houses operating in the telecommunications or supporting industry. In order to measure and further analyse the merger or alliance created by Oreedoo, the application of a business life cycle will be an appropriate tool. The next step in the process will identify the curricle personnel in the governing bodies of telecommunication segments of Oman. These personals will be approached in a formal manner to identify and assess their requirements; also a critical aspect of the individual relationships will be to gain information and knowledge regarding the tasks they are involved in (Eunmi, 2009). For instance, the right executive can help Oreedoo in understanding the process of obtaining a license and also fulfil the requirements of TRA. The conceptual framework of this issue solving process will reflect all the key steps in solution development. The alternative strategies mainly related with the issue of network building will depend on the approach of Oreedoo, if the company wants to create a short-term or long-term business relation. Thus, the nature of implementing any alternative strategy should not influence the primary objective as most of the options being debated can initiate a change in the techniques or tools of measurement rather than the direction of the process. Recommendations In respect of Oreedoo Telecommunications, three primary issues have been considered which were approached with the soft system style so that the company can evaluate all the possible options they have before making any risky actions. The foremost recommendation for Oreedoo is to ensure that the treatment of the issues under the soft and hard approaches require precise knowledge of both the systems and can also help the company to emerge over their challenges. The next recommendation for Oreedoo is that they should relate the interests of their workers with that of the organizational needs. The limited performance of the workforce has been mainly triggered by the unstructured condition of the internal environment of the company and hence should be the foremost priority for Oreedoo. They can utilize performance measurement or motivation techniques for implementation in their operational process which will help them in gaining the confidence of their labor base. Conclusion The condition of Oreedoo Telecommunications as observed in the given case study highlighted an array of problems associated with the internal and external functions of the business. Oreedoo is not able to develop a strategic vision which can consider all the elements operating in the external environment and influences the business development process. On the other hand, the growing competition is also a major threat to Oreedoo amidst the underdeveloped and unregulated market conditions of Oman which is creating opportunities for foreign investors. The employee management aspects of Oreedoo were also unrelated with their business objectives and hence the company performance was dipping down. The soft systems approach has been used in the study based on its ability to create long term and sustainable plans for Oreedoo Telecommunications. Reference List Aryee, S. and Chay, Y.W., 2001. Workplace justice, citizenship behavior, and turnover intentions in a union context: Examining the mediating role of perceived union support and union instrumentality. Journal of Applied Psychology, 86(1), pp.154 – 160 Bach, S. and Kessler, I., 2012. 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