Role of Technology in HRM: Telstra Corporation Limited

This report discusses the HR issue of reduction of work force due to technology in Telstra Corporation Limited. It identifies the issue, evaluates HR policies and procedures, and discusses the dependency of technology for cutting off employees. It also provides recommendations to resolve the identified issue.

Running head: ROLE OF TECHNOLOGY IN HRM
Role of Technology in HRM: Telstra Corporation Limited
Name of the Student
Name of the University
Author’s Note:

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ROLE OF TECHNOLOGY IN HRM
Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................3
2.1 Identification of Human Resource Issue or Challenge in Telstra Corporation Limited. .3
2.1.1 Evaluation of HR Policies and Procedures of Telstra...............................................3
2.1.2 HR Technology in Telstra.........................................................................................4
2.1.3 Dependency of Technology for cutting off Employees............................................5
2.2 Recommendations to Resolve the Identified Issue or Challenge.....................................5
2.2.1 Relevant Theories for understanding the Issue faced by Telstra..............................6
2.2.2 Suitable Recommendations for providing Solutions to the Human Resource Issue
faced by Telstra..................................................................................................................9
3. Conclusion............................................................................................................................10
References................................................................................................................................11

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1. Introduction
Human resource management or HRM can be referred to as the strategic approach to
an effective management of people within an organization so that they can help out the
business in gaining competitive advantages (Noe et al., 2017). HRM is being designed for
maximization of employee performances in service to the strategic objectives in employer.
Human resource management is mainly concerned with proper management of individuals
for emphasizing on systems and policies. These HR departments are responsible to oversee
training and development, recruitment of employees, designing of employee benefits,
performance appraisal and many more (Cascio, 2015). Telstra Corporation Limited is a
popular and significant telecommunications organization in Australia that is responsible for
providing different types of telecommunication and broadband products and services. They
build and operate telecommunications networks and market voices, internet accessibility,
mobile access and many more.
Telstra has been doing business for more than 45 years and have been serving their
customers with high efficiency and effectiveness (Telstra.com.au. 2019). The main reason for
their success is the unique HR management strategies and policies that they have been
following for several years. Technology plays one of the major roles in their business since
they are involved in telecommunications industry. They are able to bring innovation and
creativity and as technology paves the way for it and it could be gathered so that the business
requires technology for sustainability (Bratton & Gold, 2017). The subsequent role of
technology within business have caused a tremendous growth and development. It is also
vital for enabling human resource management in Telstra.
However, in spite of having such distinctive advantages, Telstra is facing a major
HRM issue of reformation package. They have decided to reduce the total work force by

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around 8000 employees and contractors from their business (Telstra to cut 8000 jobs. 2018).
The main purpose of such reduction of work force is reducing cost base and flattening the
organizational structure. Due to the high involvement of technology and technological
advancement in business, Telstra has eradicated its work force from the business and have
focused mainly on the different types of advantages that technology could provide. As a
result, the employees or contractors have lost their jobs and the balance in HR department is
not maintained properly. The following report outlines a brief discussion on the HRM issue
of reduction of work force due to technology in Telstra Corporation Limited. Suitable
recommendations will be provided for Telstra for resolving this particular HRM issue.
2. Discussion
2.1 Identification of Human Resource Issue or Challenge in Telstra Corporation
Limited
Telstra Corporation limited, being one of the most important and significant
organizations in telecommunications industry, has always provided some of the most
distinctive and vital products and services to their customers. Due to their excellent HR
strategies, they have been able to focus on improvement of employee turnover, conflict
resolution, high employee satisfaction, improvement of employee performances, training and
development and helping with the overall budget control (Telstra to cut 8000 jobs. 2018).
Since, they are dealing with more than 35000 employees, it would be extremely important for
them to ensure that the entire human resource management department is working efficiently
and successful adoption of the HR strategies. The entire premise of strategic HRM would be
that the organizational procedures and policies associated to employees should fit into the
broad strategic plan of Telstra Corporation Limited.

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2.1.1 Evaluation of HR Policies and Procedures of Telstra
They are evaluating several HR policies and hence they could easily utilize the
different objectives and aims of the strategic plan for successful evaluation of each and every
HR procedure. Although, they have always focused on the HR strategies and policies for their
employees, recently they have decided to implement a reform package in their business. They
have involved technology to a high extent for this purpose. As a result, more than 8000
employees and contractors have lost their jobs (Noe et al., 2017). Such high advancements in
the technological boom have provided some of the most significant important advantages,
however even have lost the trust of other employees and balance in the HRM department.
The existing employees have started to think of resigning from their job due to the insecurity
of job. Moreover, due to the high involvement of technology, few significant risks have also
been involved in their business (DeCenzo, Robbins & Verhulst, 2016). Such dependency
could be extremely vulnerable for their business and bring out disruption in
telecommunications industry.
2.1.2 HR Technology in Telstra
The HR technology in Telstra is being effectively utilized for the purpose of
attracting, hiring, retaining and finally maintaining talent, supporting the work force
administration as well as optimization of work force management. It helps them in ensuring
that the goal of automation of functions is required for helping the managers for working
faster and much more effectively (Sparrow, Brewster & Chung, 2016). Moreover, Telstra is
using this technology in different methods for improvement of the existing methodology, by
which business is being done by them. However, for focusing on this type of advanced
technology, Telstra had to cut around 8000 employees from their business so that they are
able to reform the organizational structure. According to the CEO of Telstra, Mr Andrew
Penn, the main strategy will include few short term challenges for the entire HR team and

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finally, it will eradicate the existing issues. It had provided a huge impact on their business
and employees, since they have felt discouraged.
Moreover, the CEO has not discussed the factor with their existing employees, which
has also provided a major impact on their decision making process. As one of the four
executive and middle management roles was being removed for flattening the organizational
structure, there had been a change in leadership as well and the existing and new employees
are unable to accept the new leadership and new ideas and strategies in the organization
(Chelladurai & Kerwin, 2018). Due to flattening of organizational structure, there even had
been a chaos in management of employees and taking new decisions in the business. This
particular HR issue was extremely problematic and the overall production was hampered to a
high level.
2.1.3 Dependency of Technology for cutting off Employees
Since, Telstra is one of the important and significant telecommunications
organization, they have always considered technology up gradation as their top priority. The
utilization of computerized systems as well as any other technology has been extremely
common for the work place, which individuals often fail in realizing that the devices could
easily hinder the respective competence as well as working abilities to work collaboratively
(Morgeson, Brannick & Levine, 2019). These technological devices are being used by the
management of HR department in Telstra, mainly for the sector of recruitment and staffing.
They tried to reform the entire organizational structure by focusing on the advantages of
technological advancements and ensuring the entire process of recruitment and staffing
would be much easier in comparison to others. However, due to the extra dependency on
these technological advancements, 8000 employees lost their jobs (Telstra to cut 8000 jobs.
2018).

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2.2 Recommendations to Resolve the Identified Issue or Challenge
Telstra Corporation Limited had faced one of the most common and significant HR
management issues in their business. Due to the extra involvement of technology in the
business, they wanted to reform the HR department and wanted to make the process of
recruitment and staffing much more effective and efficient, as compared to the rest of the
similar organizations in Australia (Stone et al., 2015). It could be quite challenging to search
for the most appropriate staff for the business and hence recruitment and screening of
applications could be extremely time consuming and problematic, however with certain
electronic screening programs, the entire process becomes quite manageable. However, due
to such transformation, several employees, including a senior manager have lost their jobs
completely. They wanted to flatten the organizational structure by removal of one in the four
executives as well as roles of middle management (Riley, 2014). It did not go as per their
planning and the organizational members were not ready in accepting the changes quite
easily. Moreover, there had been a negative impact on the staff for this reason.
2.2.1 Relevant Theories for understanding the Issue faced by Telstra
Recruitment, hiring and finally retention of employees and staff mainly need proper
techniques of human resources for successful prevention of the inappropriate hiring as well as
higher turnover. Telstra do comprise of trained professionals of HR for handling the entire
procedure of recruitment and hence the proper understanding of different HR theories or even
the best practices are required for understanding the HR issue of employee reduction majorly
(Cooke, Saini & Wang, 2014). A proper planning can decrease the requirement of extra
employees within different areas of human resources. The business owner have focused on
their unique organizational structure and wanted to make it flattened. The 5P model of this
human resource management of Telstra Corporation Limited is as follows:
HR HR Policies HR HR Practices HR Processes

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ROLE OF TECHNOLOGY IN HRM
Philosophy Programmes
With this
particular
philosophy, it
becomes easy
to understand
the process of
Telstra using
the technology
in human
resources
department
and whether
this technology
is providing
success to the
business and
other
employees.
The second P is
about different
policies, which
are responsible
for providing
guidelines for
better actions on
the people
related business
problems and
even for better
development of
the HR
programs or
practices, on the
basis of their
strategic needs.
The HR
programmes in
Telstra are being
shaped by the
different
policies and
even comprise
of the
coordinated HR
efforts that are
intended in
initiating as well
as managing
efforts of
organizational
change that are
prompted by
business
requirements.
These are
various distinct
activities that
are carried out
during
deployment of
programs and
policies for both
employee
relations and
administration
(Al Ariss,
Cascio &
Paauwe, 2014).
The processes
are formal
methods and
procedures that
are utilized for
putting the
policies and
strategic plans
into effect for
technology
inclusion.
Table 1: 5P Model of HR in Telstra
The most suitable theories to understand the situation are as follows:
Name of the Theories Description of the Theories for Telstra
Maslow’s Needs Hierarchy
Theory
The five needs of physiological needs, safety needs, social
needs, esteem needs and self-realization needs of those 8000

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employees were not considered by Telstra. Moreover, for
the requirement of flattening the structure, 1 executive of
the top management even lost their jobs.
Herzberg’s Two Factor
Theory
Although, the maintenance factors of company policy and
administration, technical supervision, better working
conditions were being focused by Telstra for their
employees, due to the excessive involvement of technology
in recruitment sector, they did not focus on their motivating
factors and as a result, the employees were demotivated
(Bratton & Gold, 2017).
Alderfer’s ERG Theory The three hierarchies of needs of existence, relatedness and
growth were not maintained by the management of Telstra
for those 8000 employees and it has led to employee
dissatisfaction, in spite of providing maximum advantages
and better working conditions to the employees (Crawford,
2014).
Table 2: HR Theories for Telstra
The employee engagement and employees losing jobs’ surveys in Telstra are provided
below:

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ROLE OF TECHNOLOGY IN HRM
Graph 1: Employee De-Motivation Survey
(Source: Telstra.com.au. 2019)
Graph 2: Employees’ Loss of Jobs in Telstra
(Source: Telstra.com.au. 2019)

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ROLE OF TECHNOLOGY IN HRM
2.2.2 Suitable Recommendations for providing Solutions to the Human Resource Issue
faced by Telstra
The first and the foremost suitable recommendation for Telstra regarding the
employees’ loss of jobs would be discussion with the employees and managers. It is
extremely important and significant to ensure that each and every employee or staff should
know about the changes that are to be brought into the organization (Collings, 2014). Cutting
off employees and manager not only disturbs the balance, but also leave a negative impact on
the working culture. Moreover, eradicating several employees might even create an issue for
the other employees, who might think that due to the excessive involvement of technology,
they also can lose their jobs and there is no job security.
According to the graph provided above regarding loss of jobs in Telstra, it is proved
that several employees have lost their jobs. The second effective recommendation for them
would be not depending on technology completely as the best employees might not be
selected through technology effectively and in several cases, it is being observed that the best
candidates are not selected in the process and the most talented are eradicated (Purce, 2014).
Apart from reforming the organizational structure, they would lose some of their most
efficient staff.
3. Conclusion
Therefore, conclusion can be drawn that Telstra Corporation Limited has always
focused on the method by which the respective HR department can easily contact their staff,
analyse performances of employees and store files. This technology can make different
practices of human resources much more effective and efficient. It could even get into the
way to control all types of resources and reduce the complexities. They have recently faced
an issue with the HR department, where more than eight thousand employees have lost their

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jobs. This report has clearly described about the issue faced by Telstra, with a suitable
recommendation for resolving this particular issue efficiently.

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References
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the challenges and strategic opportunities. Journal of World Business, 49(2), 253-261.
Cooke, F. L., Saini, D. S., & Wang, J. (2014). Talent management in China and India: A
comparison of management perceptions and human resource practices. Journal of
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Management, Binder Ready Version. John Wiley & Sons.
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https://www.hcamag.com/au/news/general/telstra-to-cut-8000-jobs/152650 [Accessed
on 30 September 2019].
Telstra.com.au. (2019). Accessed from https://www.telstra.com.au/ [Accessed on 30
September 2019].