Report on Management of Engagement, Motivation, and Capability

This report examines the transformation of ITO HKSAR from a labor arbitrage model to a strategic partner through effective management practices. It delves into the significance of engagement, motivation, and capability development within the context of information technology outsourcing. The report explores the problem space, reviews relevant literature, outlines the research design, presents findings, and offers recommendations. It emphasizes the importance of employee motivation, training, and a supportive work environment in achieving organizational goals. The analysis considers the impact of globalization, labor arbitrage, and the role of human resources in fostering a high-performing and engaged workforce. The study focuses on how ITO HKSAR can enhance its value proposition by investing in employee development and creating a culture of trust and collaboration.

Management of Engagement and
Motivation and Capability
Development

Table of Contents
EXECUTIVE SUMMARY ............................................................................................................1
Report Title: ....................................................................................................................................2
INTRODUCTION...........................................................................................................................2
Problem Space ................................................................................................................................2
Literature Review ............................................................................................................................4
Research Design ............................................................................................................................10
Findings..........................................................................................................................................12
Discussion......................................................................................................................................22
Recommendation...........................................................................................................................24
Limitations.....................................................................................................................................26
CONCLUSION..............................................................................................................................26
REFERENCES..............................................................................................................................28

EXECUTIVE SUMMARY
ITO is stands for Information Technology Outsourcing which is based on a company's
outsourcing of computer or internet related work like programming to other organisations. It
consist to be a vast concept which is significantly used as a references to business process
outsourcing that refers the outsourcing of the work which does not requires much of technical
skills. Management is consist to be an essential aspect which plays vast role in managing the
operations of the firm in effective manner (Ageron, Gunasekaran and Spalanzani, 2012). The
engagement of management is essential for each small as well as large business enterprises as to
assisting the all business operations in appropriate manner. Proper management of resources
helps the firm or management in motivating people within the work place as to contributing their
vast efforts in the growth and development of the firm. In an business organisation management
plays vast role in encouraging employees at work place in respect to developing their business
operations through the effective coordination of employees. In the modern business era
competition is so high at market place and organisations are widely concern on expanding their
business operations at large scale through using various innovative tools and technologies.
Human resource is consist to be the most essential element which has a huge influence on the
operations of the firm. It is required for each small as well as large business organisations to hire
well educated and skilled people within the work place as to increasing the operations of the firm
through implementing their unique skills and knowledge base (Alderman, 2013). Organisations
are also concern on providing training session to their new and well as existing employees as to
assisting them towards right direction in order to attaining growth and success. This kind of
activities and workshops provides managers and supervisors with an essential skills to generate
greater employee and team alignment for the attainment of the organisational desired goals and
objectives. An involved employee is one who is motivated beyond the normal duties and
responsibilities of their job, is driven by the organization's vision, understands their value in the
organization, and consistently demonstrates the behaviour of employees that supports the
organization's interests. With the help of appropriate training employer are able to analysing the
importance of investing time in coaching and development to retain the employees who are
having significant knowledge and skills to perform multiple tasks and responsibilities within the
work place. This is also effective for employees to making understand that how to create an
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environment of trust and collaboration which allows employees to be engaged and optimizes
business performance.
Report Title:
ITO (Hong Kong SAR) Management of Engagement and Motivation and Capability
Development.
INTRODUCTION
The developing trend of globalization has direct influence on the business as we as the
lives of people, business owners and workers. Labour arbitrate is consist to be the major element
of globalization, which defines the movement of workers or jobs as to developing or changing
the economic condition. Thus few labour arbitrage is a natural element of a complex economy,
too much can arises unintended social, political and economic issues. The term labour arbitrage
is to refer any movement of labour markets or workers which is due to a reduction in factors
which bound globalization (Andrews, Pritchett and Woolcock, 2013). Globalization is consist to
be a vast element which defines as the way by which countries, populations and economies come
to share the practices and policies, which may include a physical coming together or interaction
with the help of telecommunications services. Labour arbitrage is considered as one of the major
effects of globalization, but it is important for the individual workers who are able to find their
positions in the economy changing the factor that are beyond to their control. Labour arbitrage is
mainly associated with outsourcing and offshoring. The major focused area of each small as well
as large business organisation is to reducing extra work force in respect to developing their
profitability and growth. This report contents the study about an American based international
bank with outsourcing sites in India, the Philippines and HKSAR. The report will also discuss
about the transforms of ITO HKSAR from labour arbitrage to more value added strategic partner
to principle company by management of Engagement and motivation capability development
(Ansari, Munir and Gregg, 2012 ).
Problem Space
Research Problem: How does ITO HKSAR transform itself from Labour arbitrage to a
more value-added strategic partner to principal company through Management of Engagement
and Motivation and Capability Development.
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Information technology outsourcing is consist as a company's outsourcing of computer or
internet related work like programming to other business firms. It is applied in references to
business process outsourcing or BPO, that is the outsourcing of the work which does not need
much of technical skills. IT outsourcing defines yo the outsourcing all or parts of IT functions to
an external element. Information technology outsourcing is a subset of organisational process
outsourcing. The reason for IT outsourcing involve lack of resources and cost reduction
(Armstrong and Taylor, 2014 ).
The significant terminus of overseas IT outsourcing are India and Philippine for the
American and European companies and China and Vietnam for the Japanese organisation. Am
effective combination of high overhead in the United States and strong culture ties among the
domestic and Asian information technology firms have led many organisations to outsource
labour intensive software programming to Asia and Eastern Europe. Thus Eastern Europe has
generated a lot of competition for India in present years, India has always been an essential
player in the sector of information technology. In the modern business era competition is so high
at market place and organisations are widely concern on attaining high growth and success at
market place through developing their operations and functions at market place. Outsourcing is
effective for each business organisations as to enhancing their business activities and attain high
growth and profitability. Outsourcing consist to be an effective tool which is significantly
applied by organisations as to reducing or controlling costs, improving companied focus, gaining
access to world class capabilities, freeing internal resources for other purposes, streamlining or
increasing efficiency for time consuming functions and maximising the use of external resources
(Bailey, Mankin and Garavan, 2018).
Labour arbitrage is often associated with outsourcing or offshoring. The idea in which a
certain set of skills like a mathematician with five years of experience could be recruited in a
different market, such as another city, region, or country for less. The cost of labour is different
in each country and it is essential for each organisation to follow the policies which are
implemented by the government as to conducting the business operations in more effective and
efficient manner. The deviation in labour costs is an incentive to re-evaluate the position's
geographic location, whether in the same country or to a global market. Employee turnover is
strongly influence by recruitment practices. Engagement comes by combination of motivation
and commitment. Loyal manpower is always right for company as they thinks that firm has their
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best interest. They want to contribute in enhancing performance of company. Work force
motivation is the key to generate high performance company that creates a large or huge pool of
rewards which in turn enables organisation and employees to attain high returns. A well designed
or properly formulated reward system can help in improving motivation of manpower.
Motivation is seen as the inner urge of an individual to do something. At workplace, it is related
with basic requirements of human (Bakker, Albrecht and Leiter, 2011).
The term labour arbitrage comes from a financial concept which defines to evaluating the
cost differential among two similar or identical products or services in two or more markets and
capitalizing on the difference in cost. For example, financial traders will buy the rights to a
million tons of wheat in one state where the price is slightly low and sell it in another state where
the price is slightly high. This create value for the country to developing their economic position
and it is effective for attaining growth and success for the country. Likewise, if an employer has
$10,000 to expend on labour cost, the decision to outsource the labour for $5,000 is far more
appealing than keeping up with the developing cost of wages which may require the employer to
pay $12,000 for an employee with identical or similar capabilities and capacity.
Literature Review
This piece of research is considered as the most basic part of research work which helps
the examiner in directing a top to bottom assessment on the part of the examination issue. This
piece of research work depends on hypothetical casing fill in as in this information must be
assembled through auxiliary wellspring of information accumulation (Barrick, Thurgood, and
Courtright, 2015). This portion gives a short talk on the predetermined territory of concentrate
through dissecting the supposition of different writers and journalists who are having suitable
information and aptitudes in the specific zone. In this area of the exploration data and
information is being collected through different sources, for example, books, diaries, past
records, past research work, news paper etc. This segment is successful in building a solid
hypothetical base as which make an incentive in drawing a substantial and dependable result.
The research into consideration is based on the the ITO HKSAR transform itself from
labour arbitrage to a more value added strategic partner to principal company by management of
Engagement and Motivation and Capability Development. Labour arbitrage is consist to be the
practice of searching for and them applying the lowest cost workforce to produce products and
services. The use of the term labour arbitrage is limited in its regular use, it is significantly to be
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applied in academic papers and business consulting reports than in every day business decision
and discussion thus the practices itself is common and widespread ( Bolden, 2016).
Labour cost differentials additionally may impacted a business' choice to procure a
worker with less or much more ability for the part in that specific region and culture. The cost to
utilize a New York-based mathematician with 10 years of experience of understanding for a
section level or mid-run position is likely more than the cost to enlist an ongoing college
graduated in Oklahoma City, who has the significant abilities and attitude important to play out
the assigned roles and responsibilities.
Be that as it may, in reality, the labour arbitrage of work isn't the same as the arbitrage of
agriculture and manufacturing goods and services. For instance, every one of a clump of
1,000,000 metal rollers may be basically indistinguishable. thus, every individual from a group
of monetary experts in Paris will have their own strength and weaknesses.
In the event that their work were given to a group in Berlin, regardless of whether that
group had comparative capabilities, the outcomes would likely be fairly extraordinary. In the
event that the work were rather given to a group in India with great capabilities, the outcomes
would contrast considerably more (Bratton and Gold, 2017).
Labour arbitrage can take a few unique structures which are relying upon the particular
conditions and the work markets included. One regular type of labour arbitrage is immigration,
with labourers moving to nations where there is more accessible work or where compensation
are higher. It is a practice of exploration for & then utilizing the low cost manpower to
manufacture goods and services. The utilization of labour arbitrage term is less in its daily use. It
is likely to be more used in business consulting reports and academic papers rather than day to
day business discussions. The practice itself is widespread and common. This term is implies to
labour particularly has become very common in workforce discussions and staffing during the
last few decades.
Labour arbitrage practice has become more prevailing because of shifting in societal
expectations and new technologies as well as government policies that have permitted the
practice to be implemented more broadly (Bratton and Gold, 2017). The definition of labour
arbitrage is limit by some experts, saying it employ stringently to taking working from 1 place to
another where similar skill sets are available but in lower costs. However, some utilize broader
definition & said that arbitrage comprehend multiple corporate policies and practices that
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outcomes in the lowest cost labour. Today, that labour can come in various forms. Off shore
workers are the one form, where firm can hire manpower in foreign nation & pay less for payroll
taxes, wages, overtime or benefits.
Another form of labour can come in form of utilizing cheaper subcontractors in home
country of company rather than staff employees. Other form is employing work visa programmes
in order to import foreign nation workers who are willing to work at lower salaries ( Castiaux,
2012 ). Firms that pressure its existing or available work force to take low wages for securing
their jobs are participating in labour arbitrage. Utilization of undocumented immigrants are also
considered by some professionals who usually work for less & are unable to struggle for their
legal rights in the kind of labour arbitrage. Firms capitalize more on lower cost of labour. Today,
companies opt more easily to engage or participate in labour arbitrage for engaging diverse set of
workers, pieces of their production for various components of their goods and services.
There are various factors by the utilization of which ITO HKSAR transform itself from
labour arbitrage to value added strategic partner to American based international bank by
management of engagement & motivation and capability management. For improving employee
engagement, it is necessary for management to engage employees in process of decision making.
This will help in making effective decisions and provides a sense of satisfaction and
belongingness to employees which in turn helps company in improving their motivation level
and increase their participation in activities of business (Chaudhary, Rangnekar and Barua,
2012). Managers are require to encourage development of their workforce. According to Clifton,
development is more important instead of anything: it is much more powerful as compared to
money. It was observed that, businesses which orient performance management systems or
method around basic needs of human for psychological engagement like positive workplace
relationship, opportunities for personal as well as professional development, ongoing
performance conversations and frequent recognition helps principle company in getting the most
out of its employees.
Firm is require to provide more flexibility to their manpower in order to manage and
retain them for long term. This will help company in transforming itself from labour arbitrage. If
employees get the flexibility to work according to them, they get motivate and participate
actively in activities of business (Chaudhary, Rangnekar and Barua, 2012 ). Those strategies
which enable individuals to recognize, develop and utilize their natural talent have the potential
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to enhance work force productivity dramatically. The another most crucial factor for improving
engagement of employees is work with executive team on culture which is the consistent driver
of workforce engagement. A healthy and safe culture also helps in increasing motivation of
manpower and improving their productivity. Employers who emphasizing on replacing obsolete
processes of management with the ones which support engagement and enhance workplace
culture can drive high percentage of engaged workers than average (Chen and Miller, 2015).
For increasing employee engagement, building trust is an essential factor. Mentoring is
also one of the essential variable that depicts the relationship between manager and employee.
Manpower requires feedback as they want to know their level of performance so, management
requires to have skill to give and get feedback, to counsel and coach manpower in a manner that
maximize commitment and engagement of employees. Level of engagement is also influenced
by their inclusion within firm or how they feel like an insider or outsider. Management needs to
know the strengths and weaknesses of each individual and assign them tasks or duties
accordingly. This will enable them to perform their best and attain objectives and targets of
company. Alignment of employees with a with vision, values and purpose of organisation is also
necessary to motivate and engage employees more within activities of company. Their work is
meaningful because their managers assists them in seeing the connection among what they do &
success of company.
For managing engagement, motivation and capability improvement, development of team
is essential. Management understand the potential for increase in performance by high
performing teams. Team development brings coordination in work and among members of group
(Gagné, 2014). Shared skills and knowledge assists in improving productivity of Workforce as
well as company. Incentives, rewards and recognition are also the factors that highly contributes
in improving motivation level of manpower. Management of firm requires to provide some kind
of reward or recognition to their workforce so that they feel satisfied and encourage to perform
their work in more better manner. It helps company in improving their motivation and retaining
within company for long term. Their are some ways that helps in keep retaining employees
within firm for longer time period. If management keep their work force entertained whether by
exciting social events or creative products. Assigning monotonous work or task lacking creative
aspects is an appropriate way to have top performer that is looking for an exit. Provide them
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visibility when objectives are met. It is required to praise them appropriately in entire firm &
ensure that administration takes note.
Interlink between retention and compensation is not straightforward. Increased
compensation can only enhance retention capability in short time period. For companies to be
more efficient and effective in their attempt to retain more employees within firm for longer
period of time, enhanced compensation must be coupled with work life quality (Handley, 2012).
Compensation is not a single reason for work force turnover. It is connected with other main
factor like work life balance. All these are the factors that influence motivation and engagement
of employees. For managing these, firm requires to consider all such factors that helps in
increasing motivation among staff members and retain them within firm for longer term.
Capability development is the major factor which assists company in attaining labour
arbitrage. Skills, knowledge and capabilities of manpower can be developed by providing
appropriate training to them. This helps in developing their competencies as well as expertise
and enables them to perform their duties in more better and effective manner. Proper training
assist in increasing productivity as well as performance of both the manpower and company. In
order to administer appropriate training to workforce, it is very essential for management of
company to determine skill needs of personnel and design learning session accordingly that
appropriately caters their needs and provides the opportunity to develop and enhance their skills
and knowledge in an effective and efficient manner. This will enhance productivity of company
and at the same time, reduce their cost in terms of hiring new employees as it will ensure their
retention for longer term (Hirschi, Porfeli and Vondracek, 2013). By all this, ITO HKSAR
transmute itself from labour arbitrage to value added strategic partner
Employee turnover is strongly influence by recruitment practices. Engagement comes by
combination of motivation and commitment. Loyal manpower is always right for company as
they thinks that firm has their best interest. They want to contribute in enhancing performance of
company. Work force motivation is the key to generate high performance company that creates a
large or huge pool of rewards which in turn enables organisation and employees to attain high
returns. A well designed or properly formulated reward system can help in improving motivation
of manpower. Motivation is seen as the inner urge of an individual to do something. At
workplace, it is related with basic requirements of human.
8

Motivated capability refers to the quality that firm most need from its workforce. It
means that company should offer their workforce proper incentives in order t encourage them to
do their work or perform their duties in more better manner. Like an employer, manpower is
motivated to come in relationship when the advantages of doing so out weight costs. If firms are
going to treat their manpower in proper manner than it requires to know that which factors
motivates them and determines that how effectively they can perform. All the essential aspects
related with organisational performance is influenced by employees in any way. Strategies are
conceived and implemented by manpower. It is fact that, capabilities of an organisation are
contained in the combination of its system and people ( Hollebeek, Srivastava and Chen, 2016).
Competencies are mainly a function of knowledge and skills of human capital of company. A
main characteristic of business surroundings is its capability to supply skilled and qualified high
performer individuals who are able to employ strategy. In simple words, it can be said that
companies can attain little without competent people. In order to get success or to be successful,
firms are require to commit themselves to attract, retain, maintain and motivate the brightest and
best.
The most valuable asset for excellence of organisation are its employees. So, it is crucial
for companies to engage employees more in decision making process. It assists in providing
them sense of satisfaction and belongingness within firm. Their motivation will be increase and
they are willing to participate more in activities of business. Engagement of workforce increase
their efficiencies and capabilities which in turn results in improving performance and
productivity of company. Ability and motivation of staff members are the 2 major factors on
which success of firm relies (Hollebeek, Srivastava and Chen, 2016). Employee engagement,
motivation and capability development are the factors that highly influence cost as well as
profitability of company. If employees gets motivated, they become more loyal and committed
towards organisation. They are not even think about switching and keep working with the same
organisation. It ultimately helps firm in retaining workforce for long time period and reduces
their employee turnover rate. If their workforce turnover decrease, it will ultimately saves the
cost of company which is incurred in hiring new employees. Training costs of company are also
reduced as if they hire new employees again and again, they are require to provide them training
in order to ensure that they are enable to work in more better manner. In this way, all those
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