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3Author’s Surname

Lecturer’s Name:

Strategic Human Resource Management at ‘Telstra Corporation Limited’

Telstra is the leading telecommunication and information services company in Australia. They have a well outlined strategic human resource department in the organization and I would love to work at the organization in future. Back in the days, the industry was monopolized by Telecom Company because the government had placed so many restrictions on upcoming competitors; however, some pro-competition mechanisms were placed under the Trade Practices Act 1974 that allowed other companies to penetrate the market. The industry involves availing and usage of electronic gadgets and services such as computers, telephones, radio and television for communication purposes.

Level of competitiveness

Telstra Company has the largest market share in Australia because it serves 62% of the population even in terms of revenue. However, Telstra faces competition mostly in the long distance voice and data services. Its main competitors are: Optus and Vodafone companies.

The company provides a wide range of services related to communication such as, internet, satellite services, business networks, local and international telephony, subscription TV and digital media services. Optus launched its 4G services in 2015 to match those of Telstra. This has led to an increase in market share. The company is also working with NBN Company to provide rural broadband services. This is a very broad move because it will help in reaching out to the people in remote areas as well as put Optus in a competitive edge.


Vodafone offers a wide range of prepaid and postpaid mobile voice and data services. Vodafone has provided LTE services to 95% of the metro population. More than fifty percent of its services are transmitted on 4G and the company plans to launch its 5G services in 2021. All these strategies will give Vodafone a competitive advantage in the industry.


A stakeholder is someone who is interested in the operations of an organization. Telstra’s stakeholders are from all dimensions.

  1. All Australians

The citizens of Australia are interested in the operations of Telstra because the company offers services that are largely needed by the people and the people also want the company to be mindful of their welfare.

  1. Communities

The communities in Australia are also major stakeholders because Telstra operates in the metropolitan and remote areas of the country. The communities are made up of non-governmental organizations and they are concerned about how they can access the products and services offered.

  1. Customers

Customers of Telstra are local, international, small and medium enterprises, organizations and corporate. Their main concern is the availability, quality and accessibility of products and services offered by Telstra as well as to ensure that the company maintains the privacy of their information.

  1. Employees

The employees are concerned about the work conditions, safety, health and promotions. Telstra has about 30,000 employees.

  1. Government

The government is concerned on whether Telstra observes the rules and regulations put in place for telecommunication industry as well as remitting relevant taxes to it.

  1. Shareholders

The shareholders are concerned about the performance of the company, its leadership and financial performance.

Current trends in the industry

Technology is rapidly changing in the world, Telstra is therefore working to improve their employees’ competence so as to ensure that they are able to cope and produce products and services that are acceptable in the global market.

Data usage has also evolved tremendously in the recent past because people are streaming videos from the internet therefore wifi will be a key component in the years to come.

The other current trend in the industry is the use of M- payments to carry out transactions. Recently customers have come to accept the use of mobiles to send and receive money and therefore companies will have to keep up with these changes.

The other trend in the industry is use of 4G which will be quickly overtaken by 5G whose plans to launch are underway. Therefore companies will have to come up with better smart phones which are upgraded.

The organization

The nature of the work undertaken by Telstra is broad. The company is the leading telecommunication and information services provider. It offers 16 million mobile services, about 7.2 million fixed voice services and 3.29 million retail fixed broadband services in about 22 countries.

Products and services

Telstra has a wide variety of products and services which are: mobiles, tablets, broadband, home phone plans, TV subscriptions, movies and music.

Strategies being pursued

The company is always looking for ways to improve their services and they have therefore come up with strategies to ensure this. The strategies underway are strengthened by three pillars listed below.

  1. Improving customer service

The company has come to the realization that if all things are right with the customer then everything else will flow. This has been improved by having check in sites where customers are free to air their views about customer service. Telstra has also brought about product differentiation to suit customers’ needs.

  1. Customer and revenue growth

Telstra knows that to achieve customer and growth of revenue they have to invest from the core. In the last financial year, mobile networks have achieved tremendous growth because the company invested a lot of money to improve infrastructure and network cables so as to ensure service provision is of quality. Secondly, they are ensuring that their international market is also served accordingly because it’s a potential niche for growth.

  1. Building new growth businesses

The third pillar of Telstra is ensuring that they are not stagnant in business as such they have expanded their services to other regions such as Asia.

Level of organizational performance

Organizational performance is measured through a number of indicators. Firstly, the company has managed to reduce risks and injuries at the work place and the employee lost time due to injury frequency rate has dropped by 33 percent in the current financial year.

During a survey to gauge employee engagement and satisfaction, the company realized a 71 percent positive feedback out of the 80 percent response rate which is very commendable.

The company has also come up with a strategy to ensure that the electronic wastes are recycled so as to reduce pollution of environment. The company this year alone has managed to recycle 99.9 percent of the e-waste out of the 5550 tons of waste produced.

Challenges facing SHRM practice at Telstra

  1. Downsizing of workforce

The SHRM department has been faced with the problem of cutting down on their work force so as to cut on cost as well as engage the use of machines. It has been hard for the HR to determine which employees to send away and which to leave behind.

  1. Outsourcing of employees

The SHRM department is also faced with the problem of where to outsource the less skilled employees. A problem also arises because after outsourcing the company does not have direct control of the outsourced employees.

  1. Status of the HR practitioner

The human resource practitioner is not fully accepted by the senior organizational management and the manager in human resource is not even in board meetings.

  1. Legislative change

There have been many changes in labor laws that are strict on the strategic human resource practice; they have to ensure they keep up to the labor laws. There are also changes in tax payment which the office has to keep up with.

  1. Lack of appropriate managerial skills

Most of the practitioners in human resource at Telstra are incompetent and lack the required managerial skills, confidence and capacity to implement the Strategic Human Resource Management business agenda.

Works Cited

Batt, R., Colvin, A. J. S., Katz, H. & Keefe, J. Telecommunications 2004: Strategy, HR practices &performance — Cornell-Rutgers telecommunications project

Hutchings, K. Employee attraction and retention in the Australian resource sector

Babu, M.R., Esghar, A. Human resources management, a challenging scenario in the Indian context

Southiseng, Nittana, Human resources management in the telecommunications sector of laos

Nankervis, A., Compton, R., Baird, M., Coffey, J., Human resources management, strategic and practice

Telstra Corporation Limited, accessed on: (12, August 2016)