The Challenges and Practices of Human Resource Management in Ethio Telecom

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CHAPTER ONE
1. Introduction
1.1. Background of the Study
Telecommunications service has begun in Ethiopia more than hundred years ago and used to be administered under the Ministry of Posts Telephone and Telegraph until 1952. It was later separated from posts and became an autonomous entity under the Ministry by the enactment of Telecommunication Proclamation No. 131 of 1952. By this proclamation, a telecommunication entity, called "Ethiopian Telecommunication Board" which exclusively regulates and operates telecommunication services was established. Without affecting its functions, the name was later changed to Ethiopian Telecommunication Authority. The Ethiopian Telecommunication Authority was working on an exclusive basis as an operator and regulator until the promulgation of proclamation No. 49/1996 (latter amended by proclamation No. 281/2002) that established a separate federal telecommunication regulatory entity called Ethiopian Telecommunication Agency (ETA). The government owned operator called the Ethiopian Telecommunication Corporation (ETC) is also established by Council of Ministers Regulation No. 10/1996. While ETA is responsible, inter-alia, to license telecommunication service operator(s), specify technical standards, type approval of equipment, license radio communication equipment and manage and authorize the use of frequencies, ETC is responsible to operate telecommunication services, to repair, assemble and manufacture telecommunications equipment and to render telecommunications training services. Both ETA and ETC are accountable to the Ministry of Transport and communication (MoTAC) which is responsible for policy issues. The telecommunication industry in Ethiopia is currently fully owned by the government. The government owned operator, the Ethiopian Telecommunication Corporation (ETC), provides PSTN, Mobile telephone, Internet and data communication services. (1) 1.2. Statement of the problem
HRM in contemporary organizations is usually prescriptively conceived as an interrelated set of activities aimed at systematically enhancing the task performance.HRM is a strategic tool that helps an organization for sustainable competitive advantage. Organizations that do not put their emphasis on attracting and retaining talents may find themselves in dire consequences, as their competitors may be outplaying them in the strategic employment of their human resources. With the increase in competition locally or globally organizations must become more adaptable, resilient, agile, and customer-focused to succeed. This study arises from the need to manage the HR of the company more effectively. The rapid growth of manufacturing firms and service sector, increase in environmental variability and degree of competition, acute shortage of labor and the corresponding increase in labor turnover and costs of employee and costs of employee replacement have forced organizations to aggressively compete for employees. These industry issues and problems demand that firms continually assess its internal processes and capabilities if it is to remain competitive. Thus the questions to be answered in this study are:- * What is the extent of challenges of HRM in Ethio Telecom, particularly in SAAZ? * What is the extent of practices of HRM in Ethio Telecom, particularly in SAAZ? * How is the attitude of employees (non HR staff) and HR staff towards the HR policy and procedure? * Does the HR division set the salary structure on a fair manner? Does salary and benefit scheme keep the workers satisfied? * Do HRM practices affect employee’s motivation?

* How HR divisions of the company participate in selecting and placing of employees? * Do employee satisfied by their job? And Do HRM practices affect employees’ performance? * Do employees get enough training & development for their work conditions?

1.3. Objective of the study
1.3.1. General objective:-
The main objective of this...
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