The Influence of Human Capital on Organization Performance: an initial Study of Telekom Malaysia

 The Influence of Individual Capital on Company Overall performance: a Preliminary Research of Telekom Malaysia Article

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The Influence of Human Capital on Organization Performance: A Preliminary Study of Telekom Malaysia

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Mohamad Hanapi Mohamad Universiti Utara Malaysia Mazlan Ismail Telekom Malaysia Background The telecommunication industry has entered a really competitive environment for the past many years and the industry has been deregulated. The Malaysian government has established a eyesight to be a developed nation simply by year 2020 and the deregulation of telecommunication services is one of the most important methods towards obtaining that eye-sight. To achieve the desire and realise the eye-sight of making Malaysia a designed nation, also to survive in this highly competitive and demanding business environment, Telekom Malaysia has to be competitive, dynamic and robust. While using advancement manufactured in the telecommunication technology, with all the formation of numerous forms of business coalitions between local telecommunication services workers and other worldclass telecommunication businesses, the challenge for the business endurance of Telekom Malaysia is inevitable. Hence Telekom Malaysia that keeps 97% in the market share from the fixed telecommunication services, 39% of the cellular services and 54% of the internet clients in Malaysia customers (Malaysian Communication & Multimedia Commission rate, 2004) must maximize the utilisation ofTelekom Malaysia's methods, especially really intellectual capital. As a ex - government division, Telekom Malaysia has handed down the 28, 000 staff, all the systems, technologies, business network and customers of Jabatan Telekom Malaysia. In 1996, the significance of the human capital in Telekom Malaysia which this case identifies only the incomes and allowances to the personnel, stood at RM 836 million and in 2003, the cost of its human capital was RM one particular, 412 million, an increase by simply 69% within just seven years (Telekom Malaysia Annual Report, 1996, 2003). That is simply in term of salaries and allowances, how about long-term relationship, ingenuity and others? Because of this the only way pertaining to Telekom Malaysia to have an edge over their competitors is to develop and set greater the use of its mental assets.

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In attempting to obtain Telekom Malaysia's vISion penalized the conversation company of preference, it confronts these major-problems in the area of mental capital: (i) The deteriorating trend of fixed network telecommunication services customers and market share of telecommunication services. Could this kind of be because of the degree of availability and utilization of mental capital? (ii) The information for the effective intellectual capital is either not deciding Telekom Malaysia's intellectual capital does not matter technique. management and leveraging of accessible or certainly not utilised for strategic direction. It's as if in the realization of it is business

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(iii)

The influence of intellectual capital to Telekom Malaysia ' s performance, in the present along with the future competitive business environment and K-economy is if she is not addressed at all. The effectiveness in employing the " Change Program" and the comes from the budget put in, times and effort for the program and other related activities are certainly not known for further actions and improvements.

(iv)

Hence this kind of paper should address the importance of perceptive capital within the performance of Telekom Malaysia and this examine also intends to show which the dimension of spiritual capital is important to the development of intellectual capital that will contribute to the outstanding functionality of Telekom Malaysia as proven in numerous ' world-class' corporations. The complete of this conventional paper comprises of five parts. Component I features the background on this paper. Portion 2 presents the related literature upon intellectual capital and expertise management. Portion 3 gives the method used in the study. Part 4 discusses the finding and...

References: JOll/" llal of International Research 2007 Vol. 3120()7

133 Chatzkel J

Journal of International Studies 2007 Vol. 312007

134 Kaplan Ur. S

Reduced L. Electronic. ed. (2000), Knowledge and Social Capital, Foundation & Application. Combined State: Butterworth-Heinemann. Lucas J. R. (1999). The Excited Organization. New York: Amacom.

Zohar D. and Marshal I. (200 I). SQ: Hooking up with Our Religious Intelligence. Nyc: Bloomsbury Submitting. Zohar G. and Marshall I. (2004). Spiritual Capital: Wealth We could Live By simply. Bloomsbury Submitting Pic.

Jo urnal of International Research 2007 Vo l. 312007

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