universiti putra malaysia a study of perceived...
Post on 20-Oct-2020
2 Views
Preview:
TRANSCRIPT
-
UNIVERSITI PUTRA MALAYSIA
A STUDY OF PERCEIVED MANAGERIAL COMPETENCIES IN THE TELECOMMUNICATION INDUSTRY: A MALAYSIAN PERSPECTIVE
AMY YEO CHU MAY
GSM 1999 43
-
A STUDY OF PERCEIVED MANAGERIAL COMPETENCIES IN THE TELECOMMUNICATION INDUSTRY: A MALAYSIAN PERSPECTIVE
By
AMY YEO CHU MAY
Thesis Submitted in Partial Fulfilment of the Requirements for the Degree of Master of Science in the
Malaysian Graduate School of Management
Universiti Putra Malaysia
May 1999
-
ACKNOWLEDGEMENTS
In completing this thesis, I have been greatly aided by many individuals to
whom I own a debt of gratitude. First and foremost, many thanks due to my
Supervisor, Dr. Nurol'ain Mustapha. She has been exceptionally understanding
especially towards the way I managed my thesis. She was particularly patient during
the times when I was "silent" about the progress of my thesis. But above all, I knew
she would be there when I needed her advice. And indeed, I am very grateful that she
did not give up on me as her student.
I am also especially grateful to Associate Professor Dr. Md. Zabid Abdul
Rashid and Associate Professor Dr. Samsinar Md. Sidin for their invaluable advice,
comments and for being so caring and thoughtful throughout.
I deeply appreciate the wonderful support that I have received from managers
in the five participating companies. This thesis certainly would not be complete
without acknowledging the sponsorship of Tunku Abdul Rahman College. All others
whom I may not have mentioned but who have helped me in one way or another. I
hope they will forgive me if I do not attempt to mention them by name.
11
-
Last but not the least, I wish to express my deepest appreciation to my
husband and my two children for their tolerance and valuable support throughout my
study especially during the preparation of this thesis.
III
-
TABLE OF CONTENTS
Page
ACKNOWLEDGEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . .. . . . . . . . . . . . . . 11
LIST OF TABLES . . . . . . . . , ... ... ... . , . ... ...... ... ... . ,. '" .. , ... ... ... ... . , . .. , ... ... . Vll
LIST OF FIGURES . . . . . . . . . . . . . . . . . . . . . . , . ......... ...... ... ......... ... ... ........ , ... IX
LIST OF ABBREVIATIONS . . . . . . . , . .. , .. , ... ... ... ... .. , ... . . . ...... . ,. ... ... ... ... X
ABSTRACT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Xl
ABSTRAK .. . . . . . . . . , . ... ... ... ... ... . , . ... .. , ... '" '" '" ... .. , ... ... '" ... ... .. , ....... XlV
CHAPTER
I INTRODUCTION Background .. . . .. '" ... ... ... ... .. , ... ... ... ... ... .. , ...... ... . , . ..... , ... .. . .. . ... 1 Problem Statement. . . . . . . . . . . , ......... '" ... ......... .... , . ................ , ... .. 3
The Scenario of the World Telecommunications Industry .. . . . . . . . . . . . . , . ...... ... ....... , . . , . .. , '" ... ... ... ... ... ... ... ... ....... 3 The Scenario of the Malaysian Telecommunications Industry . . . . . . .. . . , . ... ... ... '" ... ... ... ... ... ... ... . ,. ... ... ... ... ... ... ... .... 6
Objectives of the Study . . . . . . . . . . . . . , . ... .. , ... ... ... . , . . , . .. , ...... '" . .. ... . . . . 11 Conceptual Framework ........ . ... ... '" .. , ... . .. ..... ... . .. . ... ... . . .. ... . .. ... 11 Hypotheses of the Study . . . . . . . . . . . . . . . . .. . . , ... '" ...... ..... , ... ... '" ... . .. ... 19 The Importance of the Study . . . . . . . . . . . . . . . '" ....... , . ... ... ... '" ........ ,. ... 23 Assumptions of the Study . . . . . . '" ......... ........... , ....... .......... , . .. , .. , . 24 Organisation of the Thesis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , ...... '" .... ,. ... . . . . 24
n LITERATURE REVIEW Introduction . . . . . . . . . . . . . . . . . , ...... .............. , ... ... .... , . .. , .. , ... '" .. . . .. .. 26 Defining Competencies . .. .. . . . . . , ... , ... ... ... . , . . ,. ... ... ....... ... ... ... ... ... 26
Concept of 'Soft Competence' and Threshold Competence . . . . . . . , ....... ... ............ ... ............. ... ..... , 32
IV
-
PfRPVSTAKAAN SULTAN ABDUL SAMAt UNIVERSITI PUTRA MALAYSIA
Managerial Skills and Competency ...... ... . .. ....... . . , ...... ... . ,. '" ... . . . . 34 Managerial Roles and Competency... ... ... ....... ... ... ... ... ... ... ... ... ... 39 Personal Qualities, Attitude and Value Position ... ......... ... ... '" ... ..... 40 Organisational Climate and Culture... ............... ......... ...... ...... .... 42 Generic Competence versus Specific Competence...... ... ... ...... ... ..... 43
Proponents of Generic Competencies...... ... ... ......... ............ ... 43 Proponents of Specific Competencies...... ... ..... . ...... ... . .. . .. ..... 44 Proponents of Generic Competencies and Specific Competencies... ............ ...... ...... ......... ... .............. 46
Competency Groupings... ...... ......... ... ...... ... ... ......... ....... ... ... ... 47 Summary... ... ......... ..................... ...... ...... ...... ......... ... ...... ... 53
m RESEARCH METHODOLOGY
Introduction ......... '" ... ... .............. , ... ... ... . ,. ... ... ... ... ... .... ... .... 56 Quantitative Research Methodology.. . . . . ... ... ... ... ... ... ... ... ... . .. . .. ... 56 Selection of Companies... .... .. ... ...... ......... ... ...... ...... ....... ... ...... 57
Location of the Companies......... ............... ......... ... ... ...... .... 58 Research Questionnaire ... ................ ... ........ , ...... ... . ,. ... ... ... ... ... 59 Sampling Procedure... .. . .. . ... ... ... ... ... ... ... . .. . .. ... ... .. . ... ... . .. . .. ... .. 60
Telekom Malaysia Berhad ... ........ , ... ... ... . , . ... . ,. ... ... .... ... ... .... 61 DiGi Telecommunications Sdn Bhd.. . .. . ... .. . ... ... ... ... .... ... ... ... .. 62 Celcom (Malaysia) Sdn Bhd ...... ... ..... ' ...... ...... .... , . .. .. ... ... .. . .. 62 Binariang Berhad...... ......... ... ............... ......... ....... ...... ..... 63 Time Telecommuncations Sdn Bhd... ... ... ... ... ... ... ... ... .... .. . . .. .. 63
Procedure for Data Collection ........... , ... .. , ... ... ... . , ........ ........ , . .. . 65 Statistical Analysis Procedure ... ...... .. . ..... , ... ... ... . ,. ... ... ... ... ... ..... 66 The Reliability of the Instrument... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 69
Pre-reliability Measures... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... .. 69 Post-reliability Measures... ............ ...... ... ... ... ...... ...... ... ...... 70 Reliability Test for Ninety-One Competency Elements... ... ... . . . . .. . 70 Reliability Test for Twenty-Three Variables and the Five Factors ... ... ...... ... ...... ... ........... . '" . ... . . . . ... . . " . . . . . . . . . 71
Validity of the Instrument. .. ............. .. ...... '" ., . ....... ... ..... , ..... , ... 72 Validity Test for Twenty-Three Elements and the Five Factors... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... ... . 73
IV DATA ANALYSIS AND DISCUSSION Introduction ... ........ , ... ... .... , .......... ... '" ... ...... .. , ... .. , ...... ... ..... . Profile of the Respondents ... ............... ............ .......... ... ... . , . .... .. Organisation's Characteristics ... ...... ... '" ......... ................. , ... ... ..
v
79 83 86
-
Hypothesis 1: Managers do not Perceive Generic Competencies to be Necessary in Carrying Out their Jobs . . . . . . . . . . . , ...... ... ... . , .... ... .. , 89 Emergence of Meaningful Dimensions/Structure from the List of Perceived Managerial Competencies . .. . . . . . . . . , ... '" ...... ... ... ... .... " ... . 91 Hypothesis 2: There is no Significant Variation of Competency Elements across Managerial Levels .. . . . . . . . . . . . . , ... . .. . .. ... .. 95 Hypothesis 3: There is no Significant Variation of Competency Elements across Functional Areas . . . . . , ...... ... ... . , .... ..... , 99 Hypothesis 4: There is no Significant Variation of Competency Elements between Organisations within the Industry... ..... 103 Interpretation and Discussion of the Study . . . . . . . . . . . . . .. .. . . , . ........ , ... ... 107
Perceived Importance of Managerial Competencies . . . . " ., . . , . .. , .. , ... 107 Five Dimensions of Managerial Competencies . . . . . . . .. . . . . , . ... ... ... .... 108 Variation across Managerial Levels .. , .. , ... '" .... , .. , . .. , .... ... .. , ... ... . 113 Variation across Functional Areas . . . .. . . . . . . . . . , ...... ......... ... .. , .. , '" 114 Variation across the Participating Companies in the Industry . . . '" .... 116
v SUMMARY, CONTRIBUTIONS AND RECOMMENDATIONS
Introduction . . . . . . .. . . .. .. , .. , ............... ...... '" ... ......... ... .. , .. , ... ... ... 119 Summary of Main Findings ... .. , ......... .... , . .. , ... '" ... ... ... ... ... ... ... .. 119 Limitations of the Study .. . '" .... , .... ......... ... .... , . . , .... .. , ... ... ... ... ... 124
Generalizability of the Findings . .. . . .... . . . . . , ... ... ... ............ ... ..... 124 Sample Size . . . . . . '" ...... . , . .. , ... ... ... ... ... .... ... ... ... ... ... ... ... ... ... 125 Methods of Data Collection . .. . . . ... . .. . . . '" ... . , . ..... , ... '" ... ... ... ... 125
Contributions of the Study . .. . . . . . . . . , ... ... ...... . , .. , ... , ......... '" ... ... ... 126 Recommendations for Further Studies ... . . . . . . . . , ... '" ... ... ... ... ... ........ 128
BmLIOGRAPBY... ... .. ... . ... ... . . . ............ ............... ......... ... ........... 131
APPENDICES A A Sample of Questionnaire on Managerial Competencies
(In English) . . . .... . . . .. . . . . .. . . , '" '" ...... ...... .. , '" '" ... ... . , . . , . ... 144 B A Sample of Letter from UPM to have Access
to the Organisations A Sample of Internal Letter / Memo for Circulation to Respondents . . . . .. . . . . . . . , ....... ... ...... ... . , . . , . ...... '" '" ... ... . , 153
C A List of Local Telecommunications Operators... . . . ... ...... ..... 158 D Corporate Information of the Five Telecommunications
Companies .. . . . . . . . . . , ...... .............. , ... '" ... ... ... ... ... ... ... .... 161
VITA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . , ... ... ...... ... ... ... ... ... 172
VI
-
Table
Table 1.1
Table 1.2
Table 2.1
Table 3.1
Table 3.2
Table 3.3
Table 3.4
Table 3.5
Table 3.6
Table 3.7
Table 3.8
Table 4.1
Table 4.2
Table 4.3
LIST OF TABLES
Title Page
Managerial Competency Elements ... ...... ... ...... . ..... .. , .. . . .. . 15
Conceptual Framework for Managerial Competencies... . .. ... ... 18
Personal Effectiveness: The MCI Model ..... , ......... ... . ,. ... ... 50
Sample Distribution of Respondents by Managerial Levels in the Five Companies ... . , . ... ... .. , ...... ...... . ,. ... ... ..... 64
Responded Samples by Managerial Levels in the Five Companies . .. ... ..... , ... ........ ... ... ... ........ , ... . ,. ... ... ... . 64
Reliability Analysis on Competency Elements .... ,. ... ... ... ... ... 72
Mean, Standard Deviation and Intercorrelation of Problem Solving Variables ...... .. , ... ... ... ... . , .......... ... ... .. , ... 74
Mean, Standard Deviation and Intercorrelation of Personal Management Variables ... ... '" .. , ... ...... '" ... ... ... ..... 75
Mean, Standard Deviation and Intercorrelation of Communication and Integrity Variables ...... ... ... . .. .. , ... ... ..... 76
Mean, Standard Deviation and Intercorrelation of Organisation Knowledge Variables ... '" ... .... , .... .... ,. ... ... .... 76
Mean, Standard Deviation and Intercorrelation of Image and Direction Variables ... ........... , ... ... .. , ... ... ... ... . ,. 77
Five Participating Telecommunications Companies . .... . ... ... '" 81
Summary of the Financial Ratios of the Five Companies as at 31 5t December 1997 ... ... ..... , .... , . ... ...... '" ... ... . . . . . . ... . 82
Demographic Characteristics ...... ..... , .... , . ... ...... ............. , 85
Vll
-
Table 4.4 Frequency Distribution for Type of Entity, Number of Employees and Ownership... ... ... ... ... ... ... ... ... ... ... ... ... ..... 87
Table 4.5 Crosstab of the Five Companies and the Level of CompetItIveness ... ... ... '" ... ... ... ... ... '" ... ... ... ... .. , ... ... ... ... 88
Table 4.6 Competency Rankings in Descending Rank Order ... . ,. ... ... ..... 90
Table 4.7 Five Factors Structure of Managerial Competencies...... ... ...... 92
Table 4.8 A Five Competency Groupings derived from the Factor Analysis Results............ ... ... ... ............... ............... ...... 96
Table 4.9 Competencies across Managerial Levels ... .... , ... , ... . , . .. , ... .... 97
Table 4.10 Competencies across Functional Areas... ...... ...... ... ... ... ... ... 101
Table 4.11 Competencies across Five Telecommunications Companies ... .. , ...... ... ... ... .. , ... ... ... ...... ... ........ , .... ,. .. . . .. 104
Table 4.12 Competency Groupings... .......... .. ...... ...... ............ .......... 110
Vlll
-
Figure
Figure 1 .1
Figure 2.1
Figure 2.2
Figure 2.3
Figure 2.4
Figure 2.5
Figure 5.1
LIST OF FIGURES
Title Page
Foreign Equity in local Telecommunications Companies... ... .... 8
Human Competence in the fonn of an 'Iceberg'... ... . . . . . . . . . . . . . . 29
Competence Model... ... ... ... .. . ... ... ... ... ... ... ... ... .. . . .. . .. ... ... 35
Whetten and Cameron's Nine Critical Management Skills... ... ... 37
Competence at different levels . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Generic Managerial Competences... ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 1
A Model for Managerial Competencies... .. . . . . . . . . . . . . . . . . . . . . . . . . . 1 22
IX
-
AMA
CEO
CMED
GDP
HRD
KLSE
MCI
MIM
MSC
WTO
NFMED
ROC
ROI
LIST OF ABBREVIATIONS
American Management Associat ion
Chief Executive Officer
Council for Management Education and Development
Gross Domestic Product
Human Resource Department
Kuala Lumpur Stock Exchange
Management Charter Initiative
Malaysian Institute of Management
Multimedia Super Corridor
World Trade Organisation
National Forum for Management Education and Development
Registrar of Companies
Return On Investment
x
-
ABSTRACT
Abstract of thesis presented to the Senate ofUniversiti Putra Malaysia in partial fulfilment of the requirements for the degree of Master of Science.
A STUDY OF PERCEIVED MANAGERIAL COMPETENCIES IN THE TELECOMMUNICATION INDUSTRY: A MALAYSIAN PERSPECTIVE
By
AMY YEO CHU MAY
May 1999
Chairperson Dr. NuroI'ain Mustapha, Ph.D.
Faculty Malaysian Graduate School of Management
This study was conducted with the aim of providing an insight into the
competency study from the Malaysian point of view, in general, and
telecommunication industry, in particular. Specifically, it is the objective of this study
to identify a list of competency elements and to determine whether they are necessary
or important for manager� to perform their managerial jobs.
Four hypotheses were formulated to achieve the objectives of the study. The
four hypotheses were: 1) Managers do not perceive generic competencies to be
necessary in carrying out their jobs, 2) There is no significant variation of competency
elements across managerial levels, 3) There is no significant variation of competency
Xl
-
elements across functional areas, 4) There is no significant variation of competency
elements across organisations in the industry.
Data for this study has been collected primarily through structured
questionnaires. The ninety-one competency elements used in this study were based on
the questionnaire developed by Hunt and Wallace ( 1997). Analysis of the data was
performed using the Statistical Package for Social Science (SPSS). Several statistical
tools such as descriptive analysis, factor analysis, analysis of variance and bonferroni
post-hoc multiple comparison were used to analyse the data. The major findings are as
follows:
Using descriptive analysis, the mean score for the ninety-one competency
elements were ranked according to descending order. The findings indicated that
managers perceived all the ninety- one competency elements as necessary for them to
perform their jobs. Of the nine-one competency elements, more than 80% of the
elements were perceived as necessary, pointing to the generic nature of the
managerial competencies. Thus, Hypothesis 1 was supported.
From the twenty-three highly rated competencies, factor analysis produced a
five dimensional competency model. These five dimensions were categorised into 1)
problem solving, 2) personal management, 3) communication and integrity, 4)
organisation knowledge, 5) image and direction.
XlI
-
Statistical tools such as ANOVA and Bonferroni Post Hoc multiple
companson were used to determine variation of competency elements across
managerial levels, functions and between organisations. From the analysis, it was
evidenced that there were variations across managerial levels. Nine (39%) out of
twenty-three elements were significantly varied between top and lower level
managers. Thus, the hypothesis 2 was less than partially supported.
Some significant results were also shown pertaining to the variation of
competency elements across functional areas. Out of the twenty-three elements, six
elements (26%) were significantly varied. The hypothesis 3 was less than partially
supported. In addition, the analysis produced significant results between organisations
in the industry. A total of fifteen (65%) out of twenty-three competency elements
were significantly varied. Thus, hypothesis 4 was partially supported.
The current study is timely and of importance especially to managers in the
telecommunication industry. They could utilise the competency model for managing
human resources such as in recruitment and selection, training and development, and
performance appraisal. The findings could also provide further information on the
usefulness and value of the generic competency model of Hunt and Wallace and it
could further widen the applicability of the generic competency model across culture
and industry.
xiii
-
ABSTRAK
Abstrak tesis yang dikemukakan kepada Senat Universiti Putra Malaysia sebagai memenuhi keperluan untuk Ijazah Master Sains
PENGAJIAN KESEDARAN KECEKAPAN PENGURUSAN DALAM INDUSTRI TELEKOMUNIKASI: DARI PERSPEKTIF MALAYSIA
Oleh
AMY YEO CHU MAY
May 1999
Pengerusi Dr. Nurol'ain Mustapha, Ph.D.
Fakulti Pusat Pengajian Siswazah Pengurusan Malaysia
Kajian ini telah dijalankan bertujuan untuk memberi suatu pemahaman
kecekapan dari pandangan perspektif konteks Malaysia amnya, dan industri
telekomunikasi khususnya. Objektif kajian ini ialah untuk meneliti dan memastikan
satu senarai unsur-unsur kecekapan yang perlu atau penting untuk pengurus-pengurus
semasa menjalankan tugas mereka.
Empat hipotesis telah dihuraikan untuk mencapai objektif kajian ini. Ianya
adalah: 1) para pengurus tidak menyedari sifat kecekapan umum adalah perlu semasa
menjalankan tugas mereka. 2) tidak ada perbezaan yang menonjol pada unsur-unsur
kecekapan di antara peringkat pengurusan. 3) tidak ada perbezaan yang menonjol
pada unsur-unsur kecekapan di antara bahagian-bahagian yang berfungsi. 4) tidak ada
XlV
-
perbezaan yang menonjol pada unsur-unsur kecekapan di antara organisasi-organisai
dalam industri itu sendiri.
Data untuk kajian ini dikumpul terutamanya menerusi penggunaan soalselidik
yang distruktur khas. Sembilan puluh satu unsur-unsur kecekapan yang digunakan
dalam kajian ini berdasarkan kepada soalselidik yang dibentuk oleh Hunt dan
Wallace (1997). Pakaj Perangkaan Sains Sosial (SPSS) telah digunakan untuk
menganaiisiskan data-data yang diperolehi dari soalselidik. Selain daripada itu,
kaedah-kaedah perangkaan seperti analisis deskriptif, analisis faktor, ANOV A dan
sebagainya telah digunakan untuk menganalisiskan data-data tersebut. Hasil kajian
utama adalah seperti berikut:
Dari analisis deskriptif, perhitungan purata untuk sembilan puluh satu unsur
kecekapan telah diatur mengikut susunan urutan menurun. Hasil kajian tersebut
menunjukkan bahawa para pengurus menyedari sembilan puluh satu unsur kecekapan
perlu ketika melaksanakan tugas mereka. Dari senarai sembilan puluh satu unsur
unsur kecekapan, lebih daripada 80% unsur disedari mustahak, menunjukkan sifat
kecekapan pengurusan bersifat umum. Oleh yang dernikian, hipotesis 1 telah
disokongi.
Dari dua puluh tiga unsur-unsur kecekapan yang terpenting, analisis faktor
telah menghasilkan model kecekapan lima dimensi. Kelima-limanya telah
xv
-
digolongkan kepada 1) penyelesaian masalah, 2) pengurusan perseorangan, 3)
komunikasi dan ketulusan, 4) pengetahuan organisasi, 5) imej dan haluan.
Kaedah-kaedah perangkaan seperti ANOV A dan sebagainya telah digunakan
untuk menentukan perbezaan unsur-unsur kecekapan melintasi peringkat pengurusan,
fungsi dan di anatara organisasi. Dari analisis tersebut, terbukti adanya perbezaan
melintasi peringkat pengurusan. Sembilan (39%) dari dua puluh tiga unsur-unsur amat
berbeza antara peringkat pengurusan atasan dan peringkat pengurusan bawahan.
Maka, hipotesis 2 adalah kurang dari disokongi secara tidak menyeluruh.
Terdapat juga hasil-hasil kajian menonjol terhadap perbezaan unsur-unsur
kecekapan dari aspek bahagian-bahagian yang berfungsi. Di antara dua puluh tiga
unsur ini, enam (26%) daripadanya telah menunjukkan perbezaan menonjol. Oleh
yang demikian, hipotesis 3 disokongi secara tidak menyeluruh. Tambahan juga,
analisis ini mengemukakan hasil menonjol antara organisasi-organisasi dalam industri
ini. Sebanyak lima belas (65%) dari dua puluh tiga unsur-unsur kecekapan menpunyai
perbezaan yang menonjol. Maka, hipotesis 4 telah disokongi dengan separuhnya.
Kajian semasa ini amatlah tepat pada masa ini, dan penting terutama sekali
kepada para pengurus dalam industri telekomunikasi. Para pengurus boleh
menggunakan model tersebut untuk menguruskan sumber manUSIa seperti
pengambilan dan pemilihan, latihan dan pembangunan serta penilaian prestasi. Hasil
kajian tersebut juga boleh menyumbangkan maklumat-maklumat lanjut berkenaan
XVI
-
dengan faedah dan nilai model kecekapan umum yang dibentuk oleh Hunt dan
Wallace dan penggunaan model kecekapan boleh juga diperluaskan melintasi
kebudayaan dan organisasi.
XVIl
-
CHAPTER ONE
INTRODUCTION
This chapter presents the background of the study, problem statement,
objectives of the study, conceptual framework and hypotheses of the study. The
chapter also cover importance and assumptions of the study.
Background
Organisations in nearly every sector of the economy in Malaysia were facing
increases in the rate of environmental change, and corporate managers were making
major structural changes so that their organisations were able to adapt to the new
conditions. Increased global competition, technological innovation, and more
sophisticated customers with a wider range of needs, are just some of the forces
which have made the telecommunications industry, in particular, more turbulent and
adaptable to changing conditions.
-
2
Most organisations probably have tried at least one of the new wave of
human resources strategies that have made a splash in the marketplace in recent
years. Re-engineering, downsizing, total quality management, teams and a wealth of
other processes were being tried as organisations seek a competitive edge in an ever
changing business climate. One of these innovative strategies was the use of
organisational and individual competencies to focus on organisation in its critical
success factors and to develop individual behaviour that support "core
competencies" (Tucker, 1994).
Recently, managers were now encouraged to list the competencies that
organisations needed to operate successfully. These competencies are then used in
selection, promotion, appraisal, counselling and vocational guidance. In fact,
whether it was a very small business or a multi-billion ringgit organisations,
managers were aware of the importance of the competency-based for the said
objectives.
Environmental ''triggers'' precipitating strategic change have included the
impact of new technology, new competitive arrangements such as the growth of
mergers, acquisitions, strategic alliances, take-overs, and joint ventures, and change
to the context in which organisations new operate.
In order to respond to increased customer sophistication and greater
international competition, many organisations attempted to redefine their mission
-
3
and strategy, to diversify into new areas and to develop new products and services
more rapidly. There has also been more emphasis on product and service quality and
on "customer care", with organisations often introducing cultural change
programmes to emphasize more commercial and less bureaucratic values and
pressure on staff roles, with structural changes introduced to make the organisation
more decentralised, flexible and responsive. All these have been perceived as
requiring new managerial skills and competences.
Problem Statement
The Scenario of the World Telecommunications Industry
On February 15, 1997, the World Trade Organisation (WTO) signed an
agreement that liberalised world wide telecommunications services significantly.
The agreement signed by 69 countries appeared to pave the way for the global use of
mobile telecommunications equipment.
This move has reflected the concerted effort by the parties involved to open
up their markets gradually. The vanous signatories, which accounted for
approximately 90 per cent of the world's telecommunications services, have
addressed a wide range of issues, including future policy directions, legislative
structure, market liberalisation and management of cross-boarder systems.
-
4
The agreement also provided that signatory countries were to open up their
telecom market to more foreign firms and to grant more licences and allow increased
competition. However, the extent to which countries have committed to open their
markets varies as the terms of the agreements were not unilateral.
In terms of the specific area of market liberalisation in the wake of these
negotiations, the United States of America was moving towards an open market in
all areas of telecommunications while Canada has dropped its requirement for equal
usage in mobile satellite systems and has pledged to remove existing providers'
exclusive operating rights by 2002.
Within the European Union, Spain and Portugal were scheduled to introduce
market liberalisation by the end of 1998 with Ireland and Greece following in 2000
and 2003, respectively elsewhere within the continent, Norway and Ireland were of
course for full liberalisation, and Switzerland had agreed to end monopoly rights
within its telecommunications to competition by 2003. Romania was aiming for
cellular liberalisation by 2002 and Bulgaria was set for full competition by 2003,
Within Africa, Ghana the Ivory Coast and Tunisia have agreed to open up mobile
telecommunications service within their boarders.
A similar situation prevailed in Southeast Asia and the Pacific region where
Australia, Hong Kong, Japan, Mauritius, New Zealand, and Philippines and
-
PERPUSTAKAAN SULTAN ABDUL SAtM,u UNIVERSm PUTRA MALAYSIA
5
Singapore have signed up for varying degrees of international provider access until
2000.
Malaysia, was no exception. Since 1991, the Government of Malaysia has
liberalised the telecommunication sector. Over the past few years the Malaysian
government had licensed multiple supplier of basic and value-added services in the
industry. These service providers were introducing more state-of-art services
including videoconferencing. telecommerce and teleservice, thus producing
opportunities for joint-ventures for the development of new products and services in
the industry. In July 1996 the Malaysian government decided to allow her seven
existing communication companies to operate without merging or buying each other
out. These seven companies were:
• Telekom Malaysia Berhad (STMB) - (originally a government body with
total monopoly, now corporatise but still partly owned by the
government) offered fixed-line network and mobile services.
• Celcom (Malaysia) Sdn Bhd - offered mobile service, was licensed to
operate a fixed-line service and was about to invest in low-orbit
satellites.
• Binariang Berhad - offered mobile seTVlces, own Malaysia's first
satellite (MEASAT) was licensed to operate a fixed-line network.
-
6
• Time Telecommunications Sdn Bhd - owned a fibre-optic network along
the length of the peninsula, offered full facilities for fixed and mobile
telephones, payphones and operates an international gateway.
• DiGi Telecommunications Sdn Bhd (Formerly known as Mutiara
Telecoms) - offered mobile services, has an international gateway and
was licensed to operate a domestic fixed-line network.
• Mobikom - offered mobile service.
• Syarikat Telefon Wireless - provided wireless local loop and was
licensed to operate a fixed-line network.
The Scenario of the Malaysian Telecommunication Industry
In developing Malaysia from an agriculture society into industrial society,
and now towards an information-rich society, the development of the information
superhighway, in general, and the Multimedia Super Corridor (MSC) in particular,
through the telecommunication infrastructure, was given priority by the government.
The merging of telecommunications, broadcasting and computer technologies was
expected to improve the quality of telecommunications services as well as bring
changes in lifestyle and the way business is conducted. International strategic
alliances among telecommunications, cable and video, broadcasting and computer
operators were also expected to enhance the benefits of synergy derived from the
merging of these technologies. With interactive multimedia along the information
-
7
superhighway, physical commuting would be reduced with teleconferencing,
telemedicine, distance learning, video on demand, home banking and home
shopping, networking, facilities through development in telecommunications
infrastructure, would lead to improved quality life for the Malaysian public.
Private operators were expected to invest a total ofRM25.4b during Seventh
Malaysia Plan (7MP -1995-2000) whilst development allocation for
Telecommunications and Post amounted to RM25.5 million. The telecommunication
sub-sector was expected to be one of the highest growth sectors of the economy with
advancement of the telecommunication technology.
The industry was expected to see many changes over the next few years. The
prime reason for this was the proposed MSC project, which would feature high
speed telecommunications capabilities. Although the actual impact of MSC project
was yet unknown, it cannot help but cause growth in the sector and strong
competition among the telecommunication providers. However, due to the current
economic crisis. some operators were struggling to survive. To lend them some
assistance, the government recently raised the ceiling on foreign equity shareholding
in local telecom firms to 61 % in the hope that there would be some foreign capital
injection.
top related