Leading and managing change.docx

1、Leading and managing changeIntroduction:In recent years, with the steady economic growth and technological development, there is unprecedented rapid progress in telecommunication industry in China. In order to encourage the national telecom operators to become more powerful in the international mark

2、et, Chinese telecommunication industry experiences an enormous restructuring according to the central governments telecom industry reform scheme. China Telecommunications Corporation (China Telecom) is one of the most powerful telecom operators in China. After this change, China Telecom gains some b

3、asic telecommunication service from China Satcom and CDMA2000 business from China Unicom through acquisition. China Telecommunication Corporation is an extra large state owned enterprise established in 2002. China Telecom possesses around 60% telecommunication network in China, which means it owns t

4、he world largest fixed line network that covers the cities and towns as well as the rural areas. After restructuring, China Telecom is still managed by central government. Its main business currently includes: operating various kinds of domestic and international fixed line telecom networks; providi

5、ng telecom network based voice, date, image, multimedia and information services; carrying out account settlements for international telecom services and so forth. (Ming, G 2009)This essay will illustrate the causes of China Telecoms organisational change via the analysis of its external and interna

6、l organisational environment. Additionally, the paper will also present the importance of organisational culture through the description of China Telecoms cultural change.Causes of change:Organizational change is activated by triggers and drivers. As De Cauwe and Vernaak nicely express, triggers and

7、 drivers contribute to the emergence of a change idea. (Hughes, 2006, 41) There are various triggers and drivers in practice, and they can be defined in many different ways. For example, Tichy supposes change triggers should include environmental changes, technological changes and changes in people,

8、 but some scholars believe triggers can be better understood via a more detailed list of triggers including government legislation, advances in process or product technology, changing consumer requirements, expectations or taste, and competitor or supply chain activities. (Hughes 2006 39) In this de

9、bate, most scholars wish to identify a certain list to explain triggers or drives. However, the reality is that there is no common list for every organizational change, because each organization has its own past internal and external organizational environment, present internal and external organiza

10、tional environment, future internal and external organizational environment, current and past performance. Additionally, in the real world, due to different forces, organisation exists in a constant transition between stability and continuous change. Like Mark says, tension between stability and cha

11、nge is an inevitable part of organisational life. (Hughes, 2006, 40) PEST analysis:The causes of change for China Telecom can be identified via PEST analysis.Political factors: First, there is a nationwide reform in state owned enterprises. Due to the current economic, international, technologic, so

12、cial and other circumstances, Chinese government has initiated a program of deep reform in the large state - owned enterprises via optimizing property, upgrading management system and certain mechanisms, so as to improve the competitiveness of the state owned enterprises; maintain and increase the v

13、alue of national assets. On the one hand, in recent years, rapid economic development, fast growth of national wealth, the revaluation of RMB and the appreciation of labor force drive China to evolve into a more powerful country. (Pengyun, F and Qun, M 2008) On the other hand, China has to face the

14、competition with other developed countries in the emerging high technic industries, information technology and other areas. In this sense, a deep reform in telecom industry is urgent. In order to improve the comprehensive strength, accomplish a thorough upgrade and innovative management. It is a goo

15、d choice for China Telecom to absorb CDMA 2000 service.Second, Chinese government tries to accomplish a better integration of industrialisation and informationalisation. (Yu, K 2009)During industrialisation, information technology has come to pervade every aspect of peoples live and each department

16、in national economy. Chinese government is trying to accelerate the industrialisation process via informationalisation, and push the informationalisation process through industrialisation. Since Chinas reform and opening up, information industry has gained an enormous development. To some extent, in

17、dustrialisation and informationalisation is the supplement to each other. At present, industrialisation and informationalisation need to cooperate at a deeper level. The integration of industrialisation and informationalisation ought to be upgraded and expanded. On the one hand, the combination of i

18、ndustrialisation and informationalisation, a new road to industrialisation, can transform and upgrade the original industrialisation. On the other hand, it also provides material, technological base and extensive market for informationalisation. There are a lot of areas require to be improved urgent

19、ly such as the developing ability of information technology service, the capacity of independent innovation and so forth. Informationalisation and the emerging industrialisation will be impeded if the above problems can not be better solved. Telecommunication is the indispensable bridge and ligament

20、 in the integration of industrialisation and informationalisation. With the further combination of informationalisation and industrialisation, telecom operator has to evolve into a modernized and integrated information business provider.Economic factors: there is a growing tendency for the global te

21、lecom charge towards a steady decrease. (Yu, K 2009) Due to the rapid development of technology and intensive competition in the global telecom market, telecom charge is decreasing step by step. Chinese telecom operators also have to face this growing trend, although telecommunication industry in Ch

22、ina is monopolized by the state owned enterprises. The reality in China is that the reduction in telecom charge is inevitable, but it is a long - term process. This can be illustrated through the following two aspects: First, fixed line business has been operated for many years in China, and an extr

23、a large scale telecom network has been built. Consequently, IP business is still very competitive with mobile business, although land - line service is facing the increasing pressure. Second, the adjustment of telecom charge is becoming transparent according to the State Planning Commissions demand.

24、 The State Planning Commission has officially put telecom charge on the check list which means each modification in telecom price must be monitored by the central government. (Yu, K 2009) Consequently, the decrease of telecom fees is slowed down by this political interference. Although telecom charg

25、e decreasing is a long - term process, the increasing shrinkage of profit margin in Chinese telecommunication industry forces China Telecom has to explore its business to sustain. The acceptance of CDMA 2000 business from China Unicom can be a good opportunity.Social factors: First, there is an incr

26、easing growth of new forms of social need. Many years before, communicating tools used to be very luxury goods for Chinese people. Nowadays, mobiles or telephones are very common products, as the rapid rise of peoples living standard. For most consumers, telecommunication is not just for communicati

27、ng, but also for enjoyment. The high quality of service, therefore, is essential for each telecom operator. Service in telecommunication industry mainly includes the following two categories. One is soft service which means telecom operators attitude towards subscribers. Another one is hard service

28、which means service providers should guarantee users smooth communications between different telecom operators and different networks. (Kai, Y 2008) The hard service is a frequent problem in telecommunication industry. As a consequence, improving the quality of service is a long term challenge for e

29、ach telecom operator. In order to meet consumers desire for better service, China Telecom is trying to find a better link between different networks via CDMA business.Second, there is a tendency towards the integration of fixed line network and mobile network. (Yu, K 2009) After restructuring, there

30、 will be an intense competition between different telecom operators than ever before. The competition will launch at all telecommunication business. The competition towards all business is not just land - line service versus land - line service or mobile service versus mobile service respectively, b

31、ut between the combination of land - line and mobile service, namely FMC (Fixed Mobile Convergence). Generally speaking, in FMC, subscribers can enjoy seamless roaming and the same service between different terminals through no matter fixed network or mobile network. (Kai, Y 2008) As the future dire

32、ction for telecommunication industry, FMC is actively developed by the leading telecom companies, although FMC has not been widely adopted because of its technical and standardized problem. The world famous market research agency, Infonetics, indicates that the market of FMC infrastructure and facil

33、ities increases 5 times in 2006, and this market will still significantly expand from 2007 to 2011. (Kai, Y 2008) Additionally, it is reported that the market of FMC facilities will reach around one hundred billion and the number of FMC subscribers will attain more than 60 million at 2011. It is said that the boun