Leading and managing change.docx

Leading and managing change.docx

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Leadingandmanagingchange

Introduction:

Inrecentyears,withthesteadyeconomicgrowthandtechnologicaldevelopment,thereisunprecedentedrapidprogressintelecommunicationindustryinChina.Inordertoencouragethenationaltelecomoperatorstobecomemorepowerfulintheinternationalmarket,Chinesetelecommunicationindustryexperiencesanenormousrestructuringaccordingtothecentralgovernment’stelecomindustryreformscheme.ChinaTelecommunicationsCorporation（ChinaTelecom）isoneofthemostpowerfultelecomoperatorsinChina.Afterthischange,ChinaTelecomgainssomebasictelecommunicationservicefromChinaSatcomandCDMA2000businessfromChinaUnicomthroughacquisition.

ChinaTelecommunicationCorporationisanextralargestate–ownedenterpriseestablishedin2002.ChinaTelecompossessesaround60%telecommunicationnetworkinChina,whichmeansitownstheworldlargestfixed–linenetworkthatcoversthecitiesandtownsaswellastheruralareas.Afterrestructuring,ChinaTelecomisstillmanagedbycentralgovernment.‘Itsmainbusinesscurrentlyincludes:

operatingvariouskindsofdomesticandinternationalfixed–linetelecomnetworks;providingtelecomnetwork–basedvoice,date,image,multimediaandinformationservices;carryingoutaccountsettlementsforinternationaltelecomservicesandsoforth.’（Ming,G2009）

ThisessaywillillustratethecausesofChinaTelecom’sorganisationalchangeviatheanalysisofitsexternalandinternalorganisationalenvironment.Additionally,thepaperwillalsopresenttheimportanceoforganisationalculturethroughthedescriptionofChinaTelecom’sculturalchange.

Causesofchange:

Organizationalchangeisactivatedbytriggersanddrivers.AsDeCauweandVernaaknicelyexpress,‘triggersanddriverscontributetotheemergenceofachangeidea.’（Hughes,2006,41）Therearevarioustriggersanddriversinpractice,andtheycanbedefinedinmanydifferentways.Forexample,Tichysupposes‘changetriggersshouldincludeenvironmentalchanges,technologicalchangesandchangesinpeople’,butsomescholarsbelievetriggerscanbebetterunderstoodviaamoredetailedlistoftriggersincluding‘governmentlegislation,advancesinprocessorproducttechnology,changingconsumerrequirements,expectationsortaste,andcompetitororsupply–chainactivities.’（Hughes200639）Inthisdebate,mostscholarswishtoidentifyacertainlisttoexplaintriggersordrives.However,therealityisthatthereisnocommonlistforeveryorganizationalchange,becauseeachorganizationhasitsownpastinternalandexternalorganizationalenvironment,presentinternalandexternalorganizationalenvironment,futureinternalandexternalorganizationalenvironment,currentandpastperformance.Additionally,intherealworld,duetodifferentforces,organisationexistsinaconstanttransitionbetweenstabilityandcontinuouschange.LikeMarksays,‘tensionbetweenstabilityandchangeisaninevitablepartoforganisationallife.’（Hughes,2006,40）

PESTanalysis:

ThecausesofchangeforChinaTelecomcanbeidentifiedviaPESTanalysis.

Politicalfactors:

First,thereisanationwidereforminstateownedenterprises.Duetothecurrenteconomic,international,technologic,socialandothercircumstances,Chinesegovernmenthasinitiatedaprogramofdeepreforminthelargestate-ownedenterprisesviaoptimizingproperty,upgradingmanagementsystemandcertainmechanisms,soastoimprovethecompetitivenessofthestate–ownedenterprises;maintainandincreasethevalueofnationalassets.Ontheonehand,inrecentyears,‘rapideconomicdevelopment,fastgrowthofnationalwealth,therevaluationofRMBandtheappreciationoflaborforcedriveChinatoevolveintoamorepowerfulcountry’.（Pengyun,FandQun,M2008）Ontheotherhand,Chinahastofacethecompetitionwithotherdevelopedcountriesintheemerginghightechnicindustries,informationtechnologyandotherareas.Inthissense,adeepreformintelecomindustryisurgent.Inordertoimprovethecomprehensivestrength,accomplishathoroughupgradeandinnovativemanagement.ItisagoodchoiceforChinaTelecomtoabsorbCDMA2000service.

Second,‘Chinesegovernmenttriestoaccomplishabetterintegrationofindustrialisationandinformationalisation.’（Yu,K2009）

Duringindustrialisation,informationtechnologyhascometopervadeeveryaspectofpeople’sliveandeachdepartmentinnationaleconomy.Chinesegovernmentistryingtoacceleratetheindustrialisationprocessviainformationalisation,andpushtheinformationalisationprocessthroughindustrialisation.SinceChina’sreformandopening–up,informationindustryhasgainedanenormousdevelopment.Tosomeextent,industrialisationandinformationalisationisthesupplementtoeachother.Atpresent,industrialisationandinformationalisationneedtocooperateatadeeperlevel.Theintegrationofindustrialisationandinformationalisationoughttobeupgradedandexpanded.Ontheonehand,thecombinationofindustrialisationandinformationalisation,anewroadtoindustrialisation,cantransformandupgradetheoriginalindustrialisation.Ontheotherhand,italsoprovidesmaterial,technologicalbaseandextensivemarketforinformationalisation.Therearealotofareasrequiretobeimprovedurgentlysuchasthedevelopingabilityofinformationtechnologyservice,thecapacityofindependentinnovationandsoforth.Informationalisationandtheemergingindustrialisationwillbeimpedediftheaboveproblemscannotbebettersolved.Telecommunicationistheindispensablebridgeandligamentintheintegrationofindustrialisationandinformationalisation.Withthefurthercombinationofinformationalisationandindustrialisation,telecomoperatorhastoevolveintoamodernizedandintegratedinformationbusinessprovider.

Economicfactors:

‘thereisagrowingtendencyfortheglobaltelecomchargetowardsasteadydecrease.’（Yu,K2009）Duetotherapiddevelopmentoftechnologyandintensivecompetitionintheglobaltelecommarket,telecomchargeisdecreasingstepbystep.Chinesetelecomoperatorsalsohavetofacethisgrowingtrend,althoughtelecommunicationindustryinChinaismonopolizedbythestate–ownedenterprises.TherealityinChinaisthatthereductionintelecomchargeisinevitable,butitisalong-termprocess.Thiscanbeillustratedthroughthefollowingtwoaspects:

First,fixed–linebusinesshasbeenoperatedformanyyearsinChina,andanextralarge–scaletelecomnetworkhasbeenbuilt.Consequently,IPbusinessisstillverycompetitivewithmobilebusiness,althoughland-lineserviceisfacingtheincreasingpressure.Second,theadjustmentoftelecomchargeisbecomingtransparentaccordingtotheStatePlanningCommission’sdemand.‘TheStatePlanningCommissionhasofficiallyputtelecomchargeonthechecklist’whichmeanseachmodificationintelecompricemustbemonitoredbythecentralgovernment.（Yu,K2009）Consequently,thedecreaseoftelecomfeesissloweddownbythispoliticalinterference.Althoughtelecomchargedecreasingisalong-termprocess,theincreasingshrinkageofprofitmargininChinesetelecommunicationindustryforcesChinaTelecomhastoexploreitsbusinesstosustain.TheacceptanceofCDMA2000businessfromChinaUnicomcanbeagoodopportunity.

Socialfactors:

First,thereisanincreasinggrowthofnewformsofsocialneed.Manyyearsbefore,communicatingtoolsusedtobeveryluxurygoodsforChinesepeople.Nowadays,mobilesortelephonesareverycommonproducts,astherapidriseofpeople’slivingstandard.Formostconsumers,telecommunicationisnotjustforcommunicating,butalsoforenjoyment.Thehighqualityofservice,therefore,isessentialforeachtelecomoperator.Serviceintelecommunicationindustrymainlyincludesthefollowingtwocategories.Oneissoftservicewhichmeanstelecomoperators’attitudetowardssubscribers.Anotheroneishardservicewhichmeans‘serviceprovidersshouldguaranteeuserssmoothcommunicationsbetweendifferenttelecomoperatorsanddifferentnetworks’.（Kai,Y2008）Thehardserviceisafrequentproblemintelecommunicationindustry.Asaconsequence,improvingthequalityofserviceisalongtermchallengeforeachtelecomoperator.Inordertomeetconsumers’desireforbetterservice,ChinaTelecomistryingtofindabetterlinkbetweendifferentnetworksviaCDMAbusiness.

Second,‘thereisatendencytowardstheintegrationoffixed–linenetworkandmobilenetwork’.（Yu,K2009）Afterrestructuring,therewillbeanintensecompetitionbetweendifferenttelecomoperatorsthaneverbefore.Thecompetitionwilllaunchatalltelecommunicationbusiness.Thecompetitiontowardsallbusinessisnotjustland-lineserviceversusland-lineserviceormobileserviceversusmobileservicerespectively,butbetweenthecombinationofland-lineandmobileservice,namelyFMC（FixedMobileConvergence）.Generallyspeaking,‘inFMC,subscriberscanenjoyseamlessroamingandthesameservicebetweendifferentterminalsthroughnomatterfixednetworkormobilenetwork’.（Kai,Y2008）Asthefuturedirectionfortelecommunicationindustry,FMCisactivelydevelopedbytheleadingtelecomcompanies,althoughFMChasnotbeenwidelyadoptedbecauseofitstechnicalandstandardizedproblem.Theworldfamousmarketresearchagency,‘Infonetics,indicatesthatthemarketofFMCinfrastructureandfacilitiesincreases5timesin2006,andthismarketwillstillsignificantlyexpandfrom2007to2011’.（Kai,Y2008）Additionally,itisreportedthatthemarketofFMCfacilitieswillreacharoundonehundredbillionandthenumberofFMCsubscriberswillattainmorethan60millionat2011.Itissaidthattheboun