Telekom Malaysia established as the Telecommunications Department of Malaya in 1946, TM has been continuously developing and improving the country's telecommunication infrastructure over the years. In 1968, the Telecommunications Department of Malaya was merged with the Telecommunications Department of Sabah and Sarawak to form Telecommunications Department of Malaysia. The company would work under this name almost two decades and this organization still being the biggest telecommunication company in Malaysia. Besides, Telekom Malaysia provide many service for all people around the world. This is include, high-speed internet access that could contribute towards attracting more foreign investment . With this investment, not just the Telekom gain more profit but, the coverage of TM will spread to many country that involved. Apart from that, Telekom Malaysia provides corporate and government agencies with responsive customer support, dedicated and customised solutions coupled with up-to-date communications technology . At TM, they also provide a wide range of solutions for SMI/SMEs that are specifically designed to suit the business needs of small to medium sized businesses in terms of cost, flexibility and convenience . Telekom Malaysia also have voice services and data services that consist Metro-E, SmartMap, VSAT, Hosting services and many more. This is show that Telekom Malaysia not just focusing on internet but they also focusing in various type of services. If they want to be a very successful telecommunication services in Malaysia, they must have an employees that willing to give a huge commitment. Until 2015, Telekom Malaysia has 28,008 employees that works under this organization. This employees is the biggest contributor and the greatest asset to the company. Victory that have been gained by this organization because of all employees and a good management. Telekom Malaysia located at domestic and also international such as, Kuala Lumpur, Sabah and Sarawak, Thailand, Indonesia and many more. This is show how big this company operate as a No. 1 Converged Communication Service Provider. As TM moves towards the mobility space, it is actively preparing for 2016 being the Year of Convergence. The Group is executing plans to develop the necessary ecosystem for convergence, by leveraging on its assets and capabilities throughout the entire TM service delivery chain.
1. a) What is the vision and mission of the organization?
According Hunt(1991) and Sashkin(1988) in The Journal of Applied Business Research Second Quarter 2008 volume 24,number 2 vision is a form of leadership in which a visionary leader transforms an organization culture to bring organization members to understand, accept and carry out his/her plan for the organization . These can be seen in Telekom Malaysia Berhad which they has created their new vision which are “To make life and business easier,for a better Malaysia” . By these vision we knew that TM looks forward to serve their customer with its wide-ranging offerings to meet their customer's needs in technology and businesses.
Based on Business Policy And Strategic Management second edition by Azhar Kazmi, Hunger and Wheelen(1999) say that missions is the purpose or reason for the organisation's existence. Telekom Malaysia Berhad has created their new missions which are “We deliver Life Made Easier ” to customer through converged lifestyle communication experiences, to businesses by collaborating with and supporting them with integrated solutions and to the nation by supporting socio-economic innovation and social initiatives. Thus, the new mission created by TM was consistent to their new brand new promise and tagline which are life and business made easier.
1. b) Define and asses the organization's strategy.
According to Ahmad Reza Ommani in Strengths, weaknesses, opportunities and threats (SWOT) analysis for farming system businesses management, SWOT is a device that helps business managers to evaluate the strengths, weaknesses, opportunities and threats involved in any business enterprise. A strong branding name has become the major strength for TM Berhad. This is because it gives the ability to charge higher prices for their products because consumers can place an additional value in the brand. Besides, instead of targeting of customers, Telekom Malaysia Berhad only need to target new customers in order to grow their businesses. Despite the strengths, these company have a numeral of weaknesses such as bad customer service. Several reports had been posted to blog saying that TM staff like to empty promises to their customer whenever their customers complaint about TM's product and services.
These can make their organization loss their new and even their regular customers. Hence, Telekom Malaysia Berhad or known as TM may produce new opportunities such as making their new technologies that can helps their organizations to better meet their customer's needs with new and improved their products and services to build competitive barriers against their rivals. Telekom Malaysia Berhad should take precaution on their threats such as growing in the mature market that required a lot of sharing partner , increasing of difficulty and big amount of expenses.Therefore, Telekom Malaysia Berhad should maintain and try to maximize their efforts to reduce the risks that they might have to face towards the effect of their organization's weaknesses and threats.
1. c) Identify its customers and/or constituents; and its competitors
Telekom Malaysia (TM) core business is telecommunications, fixed line services, mobile and cellular, internet connectivity, operation of optic fibred systems, managed network services and trading in telecommunications equipment. It is the dominant player in the fixed line telephony market in Malaysia, offering local call, long distance call and data services through a range of platforms. Telekom Malaysia ultimate customers are residential and corporate users. Streamyx is mostly beneficial to residential customer with heavy internet usage that requires high speed internet. Besides them, large businesses and corporate users also using TM internet services as its give benefit to them in many ways. Large businesses require internet access with high business grade service to support mission critical applications like e-commerce, net-meetings, streaming audio/video, portal service, web hosting and access to the company LAN for telecommuting employees, extranet for valued customers and business partners.
The monopoly of Telekom Malaysia, which is largely state-owned, on fixed-line and cellular services ended in 1994 with the licensing of several competitors . Maxis, P1 WiMAX, and Celcom are 3 TM competitors on high speed internet services. Celcom has the wildest mobile broadband coverage in the country, covering 71% of populated area and being a largest mobile broadband provider with more than 270,000 subscribers as end of February 2009 . It has targeted on the mass market consumer instead of business and corporate. It provides the customers surfing internet at ease anytime and anywhere they go. P1 WiMAX was launched by Green Packet Bhd on August 2008 after being rewarded by Malaysia Communications and Multimedia Commissions (MCMC) a license to provide a wireless broadband services . They uses an aggressive marketing strategy to promote and build their brand name thus boosting their market share. This leads them to had more than 80,000 subscribers in it first 12 months of operation with only 30% coverage area in the country. Maxis launched Maxis Home Services, a multiple-play package offering internet speeds of 4 Mbps, 6 Mbps, and 10 Mbps, priced at RM 128, RM 158 and RM 218 per month respectively. It is comparable to TM Unifi offers, which provide speeds of 5 Mbps for RM149, 10 Mbps for RM 199 and 20 Mbps for RM 249 . Even with this hot competition, TM has surpassed its competitors in fixed-line services as it remains as the dominant provider of the fixed-line services with more than 90% of the market.
2. a) Describe how the firm is organized. Note the formal structure (organizational charts).
Figure 1: Organizational Chart Telekom Malaysia 2016
Reference from book, define the organizational chart is “the reporting structure and division of labour in an organization, also define that depict the positions in the firm and the way they are arranged” . Based on figure 1, the type of organizational chart for Telekom Malaysia is the vertical structure. According to Cynthia Myers define that “the vertical organization has a structure with power emanating from the top down. There\'s a well-defined chain of command with a vertical organization, and the person at the top of the organizational chart has the most power. Employees report to the person directly above them in the organizational structure. Each person is responsible for a specific area or set of duties”.
The vertical structure is control by the authority. The major authority for Telekom Malaysia company is board of directors. They have power to control the power, functional and authority in organization their company. The owner of company have a major stockholders in managing the organization. According to the annual report TM, the owner of Telekom Malaysia included as the special stockholders of TM and held the company without charged for past 10 years. As owner of company, the owner have to be responsibility for damaging high risk of problem. Every risk can lead to conflict and damaging the corporations whether it can handle before and after solving the problem. At any rate, the owner of TM also have never been conflict of interest leads the person rise up their main focus and remained to the objective of the company.
The downward of The Board of Directors is chief executive officer (CEO). In some company, one person possibly hold three position of CEO, Board of Directors and president. The CEO of Telekom Malaysia only hold one position as chief executive officer only. The CEO easier handling in one position than holding three position at the same time. In contrast, the CEO managing less workforce in one position instead use more workforce and high performances in more position holder. In group organization structure, the CEO of Telekom Malaysia role is provides leadership and vision towards increasing shareholders' value and the growth of TM whilst delivering our Corporate Responsibility commitment. In spite of this, the CEO another responsibility is about developing and spearheading the implementation of TM high-level business and build the growth strategies in line with the vision and mission of TM to approving by TM Board.
The CEO shared the authority with the other members to the top management team. The top management team member is downward CEO of TM such as Chief Strategy Editor, Chief Financial Editor and Chief Technology and Innovation Editor. They work together as team by following order from CEO as the leader group organization structure Telekom Malaysia. For example, the Chief Financial Editor performing for the financial, business risk and assurance, capital funding and treasury management, investor relation of the group. Another team, such as Chief Strategy Editor committing for development, execution and sustaining strategic initiatives for TM group. The team performed to accelerate their workforce and performance skills and connected to internal and external environment.
Lastly, the Board of Directors controlled the Telekom Malaysia Company but only wait for all common result from the downward task, Chief Executive Officer. The CEO ordering his member team, Top Management Team to committed for divided task such as financial, technology, strategic, human capital and others. The Top Management Team approved to follow the order by CEO and giving their response and completing the task.
2. b) Describe the decision –making process
Firstly, the first phase in decision-making is to identify the problem. Identify the problem is to find weaknesses or problems in the company that was formed. Based on the annual report TM 2015, problems faced by TM is high competition with Celcom. This is because Celcom has their high technology as comparative advantage to compete with TM. In fact, Celcom generate higher revenue than TM and has more customers compare to TM. To overcome this problem TM must identify the weaknesses that they are facing.
Secondly is generating alternative solutions. (S.Fisher, 1979), generating alternative solutions include ready-made solutions and custom-made solutions. Ready-made solutions is the existing solutions when company already tried or use it before. Custom-made solutions is a new solution according to specific problems. Therefore, TM had solve the problem of their competition with Celcom by generates one alternative such as custom-made solution. TM had become partner with Digi to make plans for customers everywhere through HyppTV, non-UniFi and Streamyx and offering packages to customers who subscribe HyppTV digi1.
Thirdly is evaluating alternatives. “The third phase of decision making involves determining the value or adequacy of the alternatives that were generated. In other words, it was the choosing phase where customer can choose which solution will be the best. Evaluate these alternatives will take into consideration which includes the three elements that is cost, customer and profit. The analysis show that collaboration with Digi through HyppyTV can generate higher profit and customers in the less cost. Therefore, TM evaluates Digi by three elements to assist TM to competent with Celcom.
Fourth is making the choice. When the company was already making important decisions such as the concept of maximizing, satisficing and optimizing must be linked. “Maximizing is a decision that is best to be selected, for the satisficing is an option that is still acceptable but it is not the best option or perfect, and for the optimizing is the process that receives the balance of each alternative because both alternatives have the best selection based on the evaluation of alternatives that was available for Digi to maximizing. This is due to the percentage of customers increased annually. By do collaboration with Digi,TM can significant to boot up the profit that is a win-win situation with Digi.
Fifthly is implementing the decision. “The Decision-making process does not end when the choice is made. The selective alternative must be implement. Therefore, the process of making choices, TM decided to continue selecting Digi to implement the selected alternative.This is because Digi is the best choice because the percentage of customers subscriber rise year on year and also help to increase the purchase plan that has been created with TM and Digi namely HyppTV everywhere.
Lastly, evaluating the decision. In this step TM has to evaluate the decision that has been made to overcome the problem that they were facing. The big challenges facing by TM is high compettion with Celcom and TM was facing extreme circumstances. To overcome the problems, TM has make a strategy collaborate with Digi to generate more revenue and attract more consumers by create HyppTV program. Overall TM decision can solve the problem and gives benefit to its company and build up well-being with Digi.
2. c) How does the organization manage change?
Based on the TM 2015 annual report , how TM manage change is to look at their chosen theme of \"leadership convergence\". TM choose the theme for the report because it not only reflects the direction of their business district, but to show a true picture of how the organization operates as TM. TM has focused on two main strategies to progress towards convergence and digital, which will continue to drive forward TM. This strategy aims to achieve the objectives of TM.
The first strategy is the implementation of convergence. “Being in the industry towards convergence, TM is proud to put themselves as a Service Provider Communication convergence number 1, not only from the perspective of technology or device, but more important is the aspect customer experience. Hence, to integrate converged to customer with special offer what the TM has been prepared, which will be realized in several components. The first component is a hit and a more comprehensive coverage where TM will expand network reach and coverage through HSBB 2 and Public-Private Partnership Broadband Suburbs (SUBB) with the government to be able to go beyond previous the High Speed Broadband (HSBB) infrastructure to include other major economic areas across the country.
Secondly, component is a high-speed Internet access as well, at anytime and anywhere. In this component TM had offer choices and flexibility to customers through the latest platforms for convergence, UniFi Advance Plus which comes with various additional features to suit different lifestyles. With the launch of UniFi With the launch of Advance Plus 30Mbps early in 2015, the property offers upgraded to higher speeds, mobility packages P1 ToGo modem and voice packages. Bids are equipped with the LTE network, which is now controlled by P1, plus coverage of WiFi TM thorough, customers will enjoy access to the Internet is very smooth and continuous, whether at home, in the office and on the go at any time and in any Everywhere.
Lastly, component is meets the lifestyle needs of consumers and businesses. In this component TM constantly expanding offering to meets the needs of society and the entertainment of customers across all existing devices. This sample content and entertainment is fun and interesting, while TM partnership with Microsoft gives offer 365 office as a business and personal productivity tool.
The second strategy made by TM is moving towards digital. TM aspirations in the direction of digital include reinvent the customer journey to ensure customers receive the desired experience when interacting with TM across various traditional and digital channels. Initiative which covers the entire TM is reshape TM organization in the way of doing business, which will be carried out through four main programs.
First program is for the customer to experience where TM will generate simple ways and friendly-user to the customer . Thus, TM can generate alternative that will create high attraction to customers. Second is the optimization process. Summarize and streamline internal processes through digitalization. Thirdly is analysis and channel diversity which TM using the analysis in order to ensure uninterrupted integration between the various channels. Lastly is new opportunities. In this program TM will create a new business or related to TM through digitization.
3. a) Briefly discuss the various leadership style.
Leadership is the activity of leading a group of people or an organization. Leadership comprises of several values which should lead to the leaders becoming an efficient one. According to Shockley-Zalabak (2006),leaders have a major influence on most of the employees without any consideration on how the leadership and the competencies necessary for the leadership to actually become more effective. A leader is one who influences others to attain goals. The greater the number of followers, the greater the influences.
When developing our leadership skills, we must choose the right style, at the right time in the right situation as a key element of leader effectiveness. There are a few leadership styles such as participative leadership style, leader exchange their leadership style, team leadership, laissez-faire leadership style and transformational leadership style. In fact, a wide range of effective leadership styles exists. Organizations that understand the need for diverse leadership styles will have a competitive advantage in the modern business environment over those that believe there is only one best way.
Participative leadership style is often called the democratic leadership style, participative leadership values the input of team members and companion , but the responsibility of making the final decision rests with the participative leader. Besides that, participative leadership rise employee morale because employees make contributions to the decision-making process. It causes them to feel whether their opinions matter. When a company needs to make changes within the organization, the participative leadership style helps employees accept changes easily because they play a role in the process. In addition, this style meets challenges when companies need to make a decision in a short period.
Besides that, leader exchange leadership style is sometimes known as a leader-member exchange.This style involves the exchange of favours between two individuals. An exchange can be hierarchical between the boss and subordinate or occur between two individuals of equal status. For this leadership style to work, we need to know how to develop, maintain and repair relationships among superiors and subordinates.
Other than that, team leadership is complex, there are no simple recipes for team success. Team leaders must learn to be open and objective in understanding and diagnosing team problems and skilful in selecting the most appropriate actions to help achieve the team goals. It is important to note that these critical functions need not to be carried out only by the leader. Nevertheless, experienced members in a mature team might share these leadership behaviours.
Laissez-faire leadership style is a style that is largely a “hands off” view that tends to minimize the amount of direction and face time required. A laissez-faire leader lack of direct supervision of employees and fails to provide regular feedback to those who are under his supervision. Moreover, highly experienced and trained employees requiring little supervision fall under the laissez-faire leadership style. However, not all employees possess those characteristics. This leadership style hinders the production of employees needing supervision. The laissez-faire style produces no leadership or supervision efforts from managers, which can lead to poor production, lack of control and increasing costs.
Lastly, transformational leadership is a style that depends on high levels of communication from management to meet goals. Leaders motivate employees and enhance productivity and efficiency through communication and high visibility. This style of leadership requires the involvement of management to meet goals. Furthermore, leaders focus on the big picture within an organization and envoy smaller tasks to the team to attain goals.
In conclusion, various leadership style that involve human interaction and encourage participative decision‐making processes are positively related to the skills and traits that are essential for management knowledge.
3. b) Identify the style used by the leaders of the selected organization
There is a various type of leadership in an organization. As we can see, Telekom Malaysia has two leadership style, democratic and transformational leadership. Telekom Malaysia use democratic style of leadership. Democratic leadership is a form of leadership in which the leader solicits input from subordinates. Telekom Malaysia' annual report stated that “The BEE 2015 indicates healthy Boardroom dynamics with good working relationships not only among the Board members but also between the Board and Management”. This means that the leaders of Telekom Malaysia maintains a good relationship between the Board members and Management to gather more input from each other. Other than that, Telekom Malaysia's annual report also stated that their Board had held 8 meetings during the year of 2014 by their Board and is shared to the directors afterwards. Decisions that are made from the meeting depends mostly on the majority vote.
Telekom Malaysia also implements transformational leadership in their company. Transformational leaders are “leaders who motivate people to transcend their personal interests for the good of the group”. Based on Telekom Malaysia's annual report, Telekom had conduct training programmes for each section such as industry, strategy, finance, human capital management and corporate governance. This shows that Telekom has additional strategies and their leaders have goals that attracts people's attention and to motivate them.
In conclusion, Telekom Malaysia is flexible when it comes to their style of leadership in the company. Apart from that, Telekom have transformational leaders that conducts training programmes for every section in the company. This shows that the leaders of Telekom are transformational because they have goals that can attract and communicate their vision with their employees.
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