Thus, we want to see what the change management literature has to say about how change is managed. Models in the change process Mainstream change management Definition of change management Change drivers (change agents).
CHAPTER!
INTRODUCTION 1.1 Introduction
- Profile of Telkom South Africa
- Motivation for the research
- Value of the company in industry
- Problem statement
- Objective of the study
- Literature search and review
- Data for this study
- Limitations of the study
- Definition of terms
- Summary
In addition to the external forces of change, numerous internal contradictions hindered real progress of the firm. The interviews were intended to provide a context for the analysis of the case of Telkom South Africa.
MANAGING THE CHANGE MANAGEMENT PROCESS
Introduction
There are reasons to resist overgeneralizing about whether models of change are feasible in developing countries and whether measures or models of change can be effectively implemented. Therefore, the models used by the developed world to measure the results of change in developing countries have not been realistic.
The nature of change
We must therefore be concerned, as is the case with this study, to understand the limitations of the current literature on change analysis and, in particular, the extent to which the literature can be adapted for a meaningful analysis of development in the African region. .
Patterns in the change process
This is called the Resource-Based View of the Firm (RBV) (Collis and Montgomery 1995, pp. 119). 34;No two companies are the same because no two companies have had the same experiences, acquired the same resources and skills, or built the same organizational cultures” (Collis and Montgomery 1995, pp.119).
Managing change in the mainstream
Definition of change management
For purposes of this discussion, change and transition will be used interchangeably as they are processes that basically seek an improvement in performance or to increase an organization's competitiveness (Korpi-Filppula et al, (2002). Change management aims to facilitating and guaranteeing success of change efforts, and the intended business benefits for an organization in transition.
Drivers of change (change agents)
Emerging markets that already possess defensible local assets are called Defenders, according to the framework proposed by Dawar and Frost. By better understanding the relationship between their company's assets and the particular characteristics of their industry, emerging markets can position themselves to compete successfully in a new, liberalized market.
The successes and failures of change management
Another consequence is the increase in the diversity of industries, where industries range from large to small. Such diversity will make a one-size-fits-all approach increasingly outdated and inadequate to address the diversity of issues facing industries (Schweikhardt and Whipple, 2002).
Models of change management
- Replacing old for new: or is it both?
- Determinants of change model
- Institutions, organisations and strategic choices
34; Participation is seen as the key principle to create temporary, parallel structures, holograms of change" (Smeds 1994, p. 71). IOMA (2002, p. 6) claims that the CEO and top management team must create the context for change According to Gwyne (2002, p.19), the main argument is that uncertainty carries risks that must be managed effectively.
Siegal et al (1996, p. 55) note that managers and consultants draw their knowledge of the change process in organizations from a number of theoretical perspectives.
Critical success factors needed for change
- Innovation management
Driscoll and Morris (2001, pp.803) argue that culture can be a source of competitive advantage and is considered an alternative method for controlling traditional and technocratic forms of management. 34; privatization as a change process can be considered problematic or unsustainable, unless the underlying values and belief systems of the organizational members (i.e. the culture) undergo. These staff need incentives to attract and motivate them, and the power to be effective (Cook and Kirkpatrick 2000, pp. 83).
Vernon-Wortzel and Wortzel (1989, pp.637) explicitly emphasize the importance of providing motivation for behavior change by supporting it with appropriate control and reward systems.
Summary
To overcome many of the pitfalls of change management models that were seen as too slow and too static, waves of new approaches to change have been proposed. In particular, outside-in approaches to change management have been criticized and replaced by inside-out approaches. Change management is viewed as the purpose of facilitating and ensuring the success of change efforts and the anticipated business benefits for the organization in transition.
In addition, it is identified that the factors that contribute to the successes and failures of change management are primarily resistance to change.
BACKGROUND OF THE REASERCH AREA
Introduction
Overview of Telkom South Africa Limited
In the late 1980s, the government recognized that the current PTT was unable to meet the needs of the modern community. A government inquiry into the policy, strategy, control structure and organization of the Department of Posts and Telecommunications has resulted in a number of recommended changes. A few months after the dissolution of South African Posts and Telecommunications (SAPT), Telkom signed a provisional recognition agreement with the major staff unions, bringing telecommunications workers within the ambit of the Labor Relations Act for the first time (Haffajee, 1992)5. .
In addition, Telkom's management has often kept silent on the board of directors of the Universal Service Agency established in 1991.
Key success factors
He therefore preferred the Green Paper/White Paper model where consultation and participation were possible. The NTPP task team drafted the Green Paper, which was written in the spirit of consultation that has become a hallmark of stakeholder forums. The Green Paper was finally published in July 1995 in four languages and published on the web.
Minister Jordan expressed great satisfaction that there was sufficient consensus on the Green Paper's submissions.
Changes in business environment
According to a report of the event, the NTPP has convened a 'Technical Task Team of local, knowledgeable people broadly representative of the key players in the sector, assisted at regular intervals by a small internal group and led by a trusted political player, Willie Currie. "(Horwitz, 2001). Judging from the way the minister dealt with issues, the change process can be seen as the embodiment of compromise, an important factor in conflict resolution. The regulatory regime created by the Telecommunications Act (No. 103 1996) embodies the policy objectives set out in the Green Paper and the White Paper in a concrete and sustainable form.
One of the critical factors driving the reform of the telecommunications sector is the belief that it is a strategic sector for economic growth and socio-economic upliftment.
A new regulatory regime
A new market structure was deemed necessary for the telecommunications sector to orient it towards accelerated development and universal service as well as to take international trends into account. Thintana retained the right to appoint the chief operating officer, the chief financial officer and the chief strategy officer, so, as is the case now, the private sector held the commanding heights. This necessitated a transformation in the way Telkom presented itself, and was the main reason for accepting Thintana as the strategic equity partner.
Secondly, for the transformation to take place, Telkom must be people-centric by more than doubling its training and development budget.
Internal issues
- Human resources
Telkom consulted extensively with trade unions before applying the selection criteria, again demonstrating a high degree of sensitivity to the human resource implications of the transformation process. This was part of the acceleration of skills improvement in the company within the first five years from 1997. As part of this, the fixed remuneration is reviewed once a year to ensure that employees who contribute to the success of the company are rewarded competitively.
Remuneration is a large component of the company's cost and optimizing remuneration costs remains an area of focus.
Results of the change process
- Telkom networks
When the original strategic services agreement commenced, approximately 75 management positions were filled under the agreement by personnel from the management of SBC Management and Telekom. Telkom and the other parties to the original Strategic Services Agreement signed a new Strategic Services Agreement on January 16, 2003, effective immediately. Thintana has the right to appoint the Chief Operating Officer, Chief Strategic Officer and Financial Controller for the duration of the agreement.
As and when these positions become vacant, Thintana Communications will be selected by staff and forwarded to Telkom to be appointed by Telkom to fill the vacancies in accordance with the requirements of the new Strategic Services Agreement.
Summary
The process was quite open and transparent and subject to different types of input at different levels and periods during the course of the NTPP (Horwitz 2001). By any standards, this would actually represent one of the strongest supports for the initiative. The importance of including the trade union movement and leaders of individual regional trade unions is also recognized.
The two seats reserved for organized labor on Telkom's reconstituted Board of Directors are a clear indication of the value Telkom shareholders place on labor's role in securing the company's future.
Introduction
Presentation of the change process
The model for change management
- The substance of change
- The context of change
With a weak regulator and unclear rules of the game, Telkom adopted scare tactics that worked. Theories of organizational change are critical of the use of consultants for the change process (e.g. Duck, 1993). According to the ministry, the "transfer" would be automatic, a matter of the employee's decision.
The assessment of the effectiveness of these training programs is assessed by line managers within the organization.
Exclusivity of Telkom
The Company rewards performance through a number of variable remuneration plans and intends to increase the variable component in the future. Our introductory chapters highlighted the differences in time frames for change between developing and developed economies (Peng 2003). As Telkom considered the time frame required for the turnaround process, the Chairman's Report in the 1999/2000 Annual Report accordingly stated that Telkom's current franchise had facilitated key achievements by modernizing the network, increasing bandwidth availability and improve the competitiveness of our prices. .
The general business response to the White Paper was to welcome the policy reform process and liberalization proposals, but there was also strong criticism of the duration of Telkom's period of exclusivity (e.g. Business Day, 1996a).
Research findings
The results of the study suggest that several variables influence the ultimate success of change programs. The analysis also suggests that the context in which the organization is involved and the characteristics of the particular change program will influence the outcome of dynamic change efforts. As argued in this paper, one of the significant differences between developing and developed economies is time (Peng 2003).
One of the key features in the affirmative action program at Telkom included a monitoring program targeting key middle executive management positions.
CHAPTERS
CONCLUSIONS AND RECOMMENDATIONS
- Introduction
- Summary and Conclusion
- A counter point: Glory or infamy?
- Recommendations
- Future research recommendations
The literature review was followed by an overview of Telkom and a narrative of the change process. The narrative was presented and organized around the factors described in the literature review as key in determining the outcome of the change. Subsequent analysis of the process described in the narrative led to the following conclusions regarding the handling of the change process in Telkom SA.
This analysis also highlights the importance of the continuous environment for how the process is managed.
