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Why Organizational
Restructuring?
Change is happening every where and every time and seemingly
becoming a must today for many organizations. In the telecom
sector, technology is changing faster then ever. This includes
information technology (IT), information communication systems,
data and voice networks, multimedia and the possible convergence
of these services. Also, the rapid change and update of software
and applications contribute to the emergence of new technology as
well. As a result of this change, organizational structures are
also changing to cope with market and global trends, increasing
customer needs and achieving revenue growth. When looking at
restructuring positively in general, many opportunities and
benefits can be seen for employees, customers and the share
holders. For TeleYemen in particular, restructuring should be seen
as:
- Becoming more customer focused.
With marketing functions in addition to the other disciplines, the
company can become more customer focused. This will help serving
the customer in more efficient and cost effective ways.
- Reducing unnecessary costs. With redeployment of managers,
merging branches, reducing additional workforce can contribute to
further improvement of business performance and development of
individuals, new services and increase savings.
- Increasing operational efficiency.
Changes in engineering functions and the creation of a platform of
management center would increase the opportunity to monitor work
activities and tackle faults and inconsistencies in the most
efficient ways and timely manner.
- Increasing managers and staff skills.
Changing in positions would allow gaining more knowledge and
experience in other areas of the business should an individual
interact, share and contribute to the business and feels an owner
in the first place.
- Introducing more expertise. With new blood, the company and
workforce can diversify its sources and knowledge to meet any new
challenges, competition and development to sustain and increase
revenue growth.
- Bringing personal opportunities.
Surplus employees and long served individuals will have the
opportunity to apply for the Early Retirement Plan (ERP). Through
this ERP initiative, those individuals can rest or pursue their
personal ambitions.
Early Retirement Plan (ERP)
The ERP is generally defined as a voluntarily plan to allow
certain employees to retire at an earlier age or service period
than their official retirement time. Such plan is eligible to
those who have reached an age of 55 years or served for 30 years
and subject to management approval. The objective of the ERP is to
satisfy both the objective of business requirement and staff who
wish to enjoy their personal life and meet their ambitious plans
at an early time. As already communicated by the CEO, MHR and the
Union with further illustration here, employees will receive their
monthly pensions from the Social Security (SS) and will be
compensated by the company for their remaining period for an
amount determined by the following criteria:
- Eligible staff in grade 2-10 will receive a 65% of their recent
basic salary in addition to the two yearly additional bonus for
Ramadan and Eid less social security contribution and tax. This
can be illustrated by the following example:
- Ex: If an employee has 24 months period before arriving at the
end of the normal retirement date, he/she will receive a
compensation amount calculated as:
Amount (YR) = 65% (BS X 24 months + 4 bonuses) – SS Contribution
Diff before 1987 – tax.
* Note : (The SS contribution difference before 87 will be further
illustrated by a further communication from management)
- Managers will receive a similar compensation but with a 50% of
their current basic salaries and the two additional bonuses
(without allowances). With above example,
The amount of compensation is calculated as:
Amount (YR) = 50% (BS X 24 months + 4 bonuses)
– SS Contribution Diff before 1987 – tax
ERP Rules & Process
- An employee will have to fill an application form “Request for
Early Retirement”.
- The form will have to be first signed by the employee and
validated by the employee’s direct manager and director and sent
to MHR.
- The form will have to be approved by the HR committee lead by
the CEO, and returned to the MHR.
- In a special case the HR committee can ask staff to stay up to a
maximum of six months before he/she can leave the company and
based on decision made according to:
- The importance of activities in hand.
- The impact on business.
- The transfer of knowledge.
The ERP offer will remain valid for only a duration of six months
started from 15th November, 2005.
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