The purpose of this study is to critically identify and assess both the internal and external organizational environment for Telstra Corporation, and offer conclusive description of how most of these environmental factors impact human resource management in organization. The report will also identify the current and emerging workforce trends and issues, and also assess their implications on human resource management and workforce with Telstra Corporation as the reference point. This report stresses upon the factors impacting on Human Resource Management (HRM) as a key strategic element for any business organization. The findings will help address most of the organizational issues faced in the corporation.
Telstra Corporation is one of the leading brands in the Australian market. The corporation is a market leader and expert in the provision of information and quality telecommunication services in the country. Due to the competitive nature of the Australian market, Telstra Corporation as a company has always relied on its HRM and organizational structure to overcome competition and emerge on top in terms of its business. Currently the company is proposing services to the market and is now providing more than 9.6 million customers who use the Australian fixed line with a similar number of clients using portable cell phones. Other services offered by the corporation include 3G. Being a leader in the Australian industry, Telstra has been facing a couple of challenges which have to be addressed as frequently as possible. This report will assess the internal and external organizational environment for Telstra Corporation and explain how the same affect the human resource management in the organization. The report will further explore the current and emerging workforce trends and issues, and assess their implications on human resource management.
2.0 The Internal and External Organizational Environment
2.1 Internal Organizational Environment and Impact on HRM
For a corporation to survive, it is mandatory that it frequently re-examines its internal and external organizational environments. To begin with, the internal organizational environment of a firm is mainly composed of the element which affects the business internally (Pakhare 2007, p. 55). These include employees, the management, the company philosophy, and corporate culture. All these aspects define the behavior of employee in the firm, and eventually influencing the performance. Basically, anything that affects the whole organization and derived from the internal form of the business forms and element of such environment (Kamoche 1996, p. 225).
The other important internal environment in an organization is the mission statements. This describes the overall business and purpose of organizational engagement, thereby differentiating the business from its competitors (Armstrong & Baron 2002, p.124). That being the case, the missions should be unique and unrivaled. Through such statements, the values and employee relationships can be quickly analyzed. By defining an appropriate vision and mission for a business, it will definitely be possible to address the issues related to human resource and also make sure every kind of performance is aimed at the overall success of the business (Durai 2010, p.211). Positive missions will definitely simplify the HRM duties thus making the organization productive.
The policies set and implemented in a company also determine its success and nature of the HRM. The formal structure of an organization such as Telstra Corporation integrates the hierarchical arrangement of people and tasks (Pakhare 2007, p. 55). This determines how information and concepts will be shared and flow within the organization (Feed Burner, 2010, p. 54). The decision making process is also dependent on such structures thereby making it a significant organizational internal environment. The formal structure will definitely impact on the businesses’ decision making process and human resource management as well (Bhagria 2010, p. 35). A better and appropriately established formal structure will guarantee the best HRM in an organization. However, if there are no good policies and formal structure in the organization, it will be hard for the human resource management to address the issues faced. This is because it will be hard to offer workable solutions and options to the problems faced (Durai 2010, p.211).
The organizational cultures and practices in a business form a significant element of internal environment. This kind of culture is definitely what forms the personality of an organization and it is through the personality that it is defined (Burke 2009, p.108). It should be observed that the culture practiced and encouraged in an organization will definitely distinguish it from the roles and shapes of other businesses. As a strong aspect of internal environment, organizational cultures are defined by values, social network, decision making procedures, rites, and rituals exercised in the business; definitely, these values helps to boost the image of a corporation. This is exactly what has been happening in Telstra Corporation (Burke 2009, p.108).
The organizational climate is also important in a corporation and is usually defined by the business culture practiced. For instance, the climate has a huge impact on the HRM activities because the overall workplace tone and morale of the workers is determined by the climate experienced in the organization (Delery & Doty 1996, p.831). The resources in an organization can also never be ignored as an important element of internal environment affecting the human resource. The resources include the employees, infrastructure, working environment, supplies, and financial abilities (Burke 2009, p. 108). Although the nature of resources needed in a given firm may vary significantly, the most important thing is that their availability and the manner in which they are managed greatly determine the kind of HRM is found in the organization.
The managerial philosophies, styles and approaches are considered as an important part of internal environment. As well, these elements play the greatest role in influencing the nature of human resource in an organization (Durai 2010, p.211). For instance, a large number of workers and employees will deserve to be managed in the best way. However, if this is not done, definitely a form of crisis will develop thereby worsening the HRM activities in the business (Burke 2009, p. 108). In the long run, the corporation or firm will not be in a position of realizing its potential since employee turnover will increase. On the other hand, when guided in the best manner possible, the leader will help in improving productivity since the HRM will have few duties in bringing the employees and management together (Delery & Doty 1996, p.838).
Very few issues and concerns will be observed in the organization due to the positive leadership style employed by the managers. By so doing, it will be possible to empower the employees in the business because decisions will be made easily, and also problems will be solved whenever they arise (Durai 2010, p.211). Basically, the positive leadership style and philosophy practiced by the managers will greatly determine the success of the human resource and vice-versa. All the above internal environments for an organization will determine the nature and success of the human resource management employed in the firm (Delery & Doty 1996, p.838).
2.2. External Organizational Environment and Impact on HRM
The external organizational environment is another important thing worth considering in an organization. These factors have a great influence on the organization, and especially the human resource management. The first external environment is defined by competition (Durai 2010, p.211). Competition composes of the industrial companies offering similar services and products, markets and their geographic locations. Depending on the kind of competition, the human resource will be adversely affected in an attempt to define the best approaches which make sure everything is done appropriately and promote the performance of the business (Delery & Doty 1996, p.838).
The customers also form an important aspect of the external environment. Customers are the final users of the services and products produced by an organization. It is notable that the preferences of customers tend to change rapidly (Durai 2010, p.211). It is therefore important for the HRM to be prepared to encourage the workers and employees regarding the changes in customer tastes. Demographic changes include economic, social, economical and the cultural changes (Ferdinand 1999, p. 56). The HRM should be concerned about these changes in order to retain the business performance for a given period of time.
2.2.2 Political Environment
Other factors include political environmental factors. The government policies put in place in an economy determine the nature of business and how corporations are required to perform and act. It is the role of the human resource management to reconsider such aspects and come up with the best approaches to make sure the best is aimed at making profits (Hyde 2004, p. 142). Such policies and taxation issues are worth considering because they determine the responsiveness of such business. This is an important element of external environment which significantly impacts on the human resource management. The economic pattern and rate of inflation also form another important factor determining the external environment. The economic position determines the willingness and desire for business organizations to invest in different locations and markets (Durai 2010, p.211). Because of this, it becomes very significance for the human resource to reconsider the economic position in order to adequately address most of the quality issues faced in the corporation. This is something that has been widely examined and addressed at Telstra Corporation of Australia.
2.2.3 Technological & Social factors
Other external factors include legal, technological, and social structures. Generally, these factors are important because they greatly determine the success of a business (Sullivan 2010, p. 1). New technologies are evolving everyday and should be adequately understood and adopted to promote the relationships between employees, clients and the management. The legal aspects should also be considered because they determine the regulative frameworks which affect the performance of the business. The human resource should act according to the legal provisions and make sure the needs and expectations of the clients and employees have been met (Kamoche 1996, p. 233).
If the above internal and external environmental factors are not examined, then definitely the business will not succeed. This is because competition will increase thus making it impossible to realize the stated goals (Durai 2010, p.211). Also, it becomes hard to actively engage a workable HRM approach when these critical environmental aspects have not been clearly defined. It would be necessary for a company such as Telstra Corporation to view these quality issues in order to be a successful player in the Australian market.
3.0 Current and Emerging Workforce Issues and Trends: Implications on HRM
Being a leading company in the Australian telecommunication industry, Telstra Corporation has been able to achieve a number of developments due to the best HR practices being implemented in the firm. Currently there are a number of emerging trends and workforce issues which have significantly been impacting on the human resource of any organization (Kohler 2006, p.2). The first emerging issue revolves around employee training and development. This is being implemented to validate and improve the nature of services being offered to the customers and business partners. This has emerged over the last few years due to the current changes in customer expectations and needs (Durai 2010, p.211). There is also the increasing need for expert skills designed to meet the growing customer needs and expectations.
Since workforce issues relate directly to the human resource, it would be appropriate for a corporation like Telstra to consider such emerging trends and by so doing achieve the best gains (Schuler & Jackson, 2007). Technological acquisition is something which is being adopted by different organizations today. Currently, different large organizations such as Telstra Corporation are in the run to adopt new strategies and technological developments in order to promote interaction and understanding between employees and management. Currently, technology is being viewed as one of the best approaches to boost communication, promote decision making and also enhance cooperation between the management and the employees. As an emerging trend, technological adoption is something mandatory especially in the wake of globalization (Nadler, 1984, p. 106). The need to constitute an appropriate workforce between the management and employee is something else that is currently being encouraged by different organizations. It is the role and duty of every company or firm to make sure the best workforce is maintained and retained through mutual trust (Durai, 2010, p.211). This will ensure the problems faced by different employees and workers are adequately addressed thereby making it possible to realize business growth.
3.1 Gender equality:
The other thing concerns gender equality. Today is the expectation of every organization that gender issues are carefully addressed (Storey, 2007, p. 154). Just like men, women presently deserve relevant attention and remunerations in the workplace because things have changed. Due to such changes, it should be observed that human resource management should be in a position to address all these issues depending on how they being faced, and how every individual woman should be treated equally (Paauwe, 2009, p. 199). This has become one of the global issues being considered by majority of the organizational human resource management. This is something that needs to be carefully analyzed and put into consideration at Telstra Corporation.
3.2 Corporate culture
Different organizations are also highly concerned about corporate culture. Corporate culture defines very many aspects and operations in a business firm. Issues such as ethics, business behavior, addressing environmental issues, and diversity in the workplace are elements that have currently become a major concern and an emerging trend (Accel 2010, p. 47). Due to the concerns to improve performance and achieve the greatest business gains, the issue of corporate culture has become worth considering for human resource management. Generally, the current emerging trends have great impacts in determining the success of any organization and also maintaining good rapport between employees and employer (Durai 2010, p.211). In the long run, this will determine the nature of services delivered to the customers and clients of the business.
It is the role of every organization’s human resource to analyze the emerging trends in the workforce such as gender issues, technological development, diversity, and corporate culture in order to determine its success (Durai, 2010 p. 211). Such issues are important because they influence the existing relationships in the corporation. At Telstra Corporation, there is the need to explore such factors and if possible integrate the human resource because this determines how different issues faced will be addressed (Papa et al. 2008, p. 44). It should, however, be observed that at Telstra such considerations have been made to ensure the greatest gains are realized. The work done by the HRM in the firm has made it possible for the organization to become a major player in the communication industry in Australia.
From the above discussion, it is observed that the external and external organizational environment is something significant determining the success of any firm such as Telstra Corporation. Understanding such environment plays a huge role in determining how the human resource department in an organization can significantly adopt the best practices which promote the performance of the business. Understanding the nature of the environment promotes the roles of the HRM towards fulfillment and motivation of employees. This will eventually boost their morale towards the realization of the objective and goals of the organization. As well, the current trends and issues faced in the workforce play a huge role in defining the gains of a business organization. The HRM department should critically explore these emerging trends as discussed in the paper in order to promote overall organizational gains.
From the above discussions, it is notable that these processes towards proper HRM are significant. Understanding the external and internal environment factors and the current situations in the workforce is something necessary because it will definitely help a company like Telstra Corporation to achieve its goals and potentials. It is recommended that the HRM observes these discussions and emerging issues because they will definitely promote the performance of the business and eventually result in positive gains. Generally, doing this recommendation is the most important thing for Telstra Corporation, and any other business, if it is to succeed in its activities.
Accel 2010, Human Resource Management, viewed March 29, 2011, <http://www.accel-team.com/human_resources/hrm_00.html >. Pgs 23-192
Armstrong, M & Baron, A 2002, Strategic HRM: The key to improved business performance, Great Britain, The Cromwell Press. Pgs 121-143.
Bhagria A 2010, Roles and Functions of Human Resource Department, viewed May 9, 2011, <http://www.younghrmanager.com/roles-and-functions-of-the-human-resource-department>. Pg 12-231
Burke, E 2009, Corporate Community Relations: The Principle of the Neighbor of Choice, Greenwood Publishing Group, New York. Pgs 13-89
Delery, J & Doty, H 1996, “Modes of theorizing in SHRM”, Academy of Management Journal, vol. 39, no. 4, pp.802-835.
Durai, P 2010, Human Resource Management, South Asia, Dorsley Kindersley. Pg 14-124
Feed Burner 2010, Strategic Analysis of the Telstra Corporation (Australia), viewed May 10, 2011, < http://ivythesis.typepad.com/term_paper_topics/2010/05/strategic-analysis-of-the-telstra-corporation-australia.html>. Pgs 23-342
Ferdinand, D 1999, Management Tasks, responsibilities, practices. Oxford University Press, New York. Pgs 10-154
Hyde, J 2004, Managing and Supporting People in organization, Bailliere Tindall. Pg 31-83
Kamoche, K 1996, “Strategic human resource management within a resource-capability view of the Firm”, Journal of Management Studies, vol. 33, no. 2, pp. 213–33.
Kohler 2006, Telstra Wireless May Have Been Stage Managed, but it’s Stage it had to Reach, viewed May 13, 2011, < http://www.theage.com.au/news/business/telstra-wireless-may-have-been-stage-managed-but-its-a-stage-ithad-to-reach/2006/10/06/1159641529469.html>. Pg 4-132
Nadler, L 1984, The Handbook of Human resources Development, John Wiley and Sons, New York. Pgs 32-187
Paauwe, J 2009, ‘HRM and Performance: Achievement, Methodological Issues and Prospects’, Journal of Management Studies, vol. 46, no. 1. Pgs 36-187
Papa, MJ, Daniels, TD & Spiker, BK 2008, Organizational communication: Perspectives and trends, Thousand Oaks, CA: Sage. Pgs 15-232
Pakhare, J 2007, Management concepts: The four functions of management, Oxford University Press, Oxford. Pg 55-59
Schuler, RS & Jackson, SE 2007, Strategic Human Resource Management, USA, Blackwell Publishing Ltd.
Storey, J 2007, What is strategic HRM?, Human Resource Management: A Critical Text, Thompson. Pgs 2-90)
Sullivan, J 2010, Clarifying the strategic role of HR, viewed May 14, 2011, <http://www.workinfo.com/free/downloads/187.htm>. pgs 12-43
Xavier, S 2009, The Global Competitiveness Report 2009-2010, Prentice Hall, Wellington. Pgs 24-98