Vodafone Group Plc Leadership and Employee Recruitment and Selection

Executive Summary

Vodafone is among the leading telecommunication companies in the United Kingdom and other parts of the world like India. The company operates in Europe, Africa, Asia, and Oceania. However, over the last two years, the company has been experiencing challenges, and its profit margins are decreasing. Some of its major competitors include Airtel, AT&T, China Mobile, and Reliance Jio. The company CEO is Nick Read, who has succeeded in expanding the company market segments, particularly in China, where there is greater competition and heavy government regulations in the Chinese telecommunication industry. Among strategies used by the company, management is transformational and transactional leadership. Also, looking at the recruitment and selection proves, the company is significantly investing in recruiting the best employees and retaining them.

Introduction

Vodafone is among the leading telecommunication companies in the United Kingdom and other parts of the world like India (Sutherland, 2020). The company offers high-quality products and services, and the market the company operates in highly competitive. Therefore, the nature of management needs the company management to have strategic clarity, and all the business operations should work towards similar goals. Some of the company services include 2G, 3G, 4G, and 5G networks (Patents Court, 2020). The company also has broadband internet in homes and on mobiles. To understand its success and challenges, it is critical to understand its leadership and human resource management activities and roles. Therefore, this study will explore company leadership and define leadership theories like transformational and transactional theories used to venture into different markets and attain success. Similarly, employee motivation is closely linked to company success (Patents Court, 2020). Therefore this study will also explore recruitment and selection, which is critical to the company's success. I am interested in studying these sectors since the company has been among the top leaders in the telecommunication industry for a long; thus, it will provide clear information about its position. I believe that leadership and employee motivation dictate a company's success, hence studying these sectors. Furthermore, the company has succeeded in employee selection and administration, thus being critical to the company's success. Therefore, this study will explore Vodafone, its leadership, its application of transactional and transformational theories, and its recruitment and selection and approaches applied like the HRM model.

Organization Background

odafone Group plc. Is a United Kingdom multinational telecommunications organization. Its main offices are located in Newbury, England. The company operates in Europe, Africa, Asia, and Oceania. The company was started in 1984 as a Racal Electronics Plc. Subsidiary and became an independent organization in 1991 (Sutherland, 2020). Moreover, the company is one of the leading mobile communications organizations, which has been established in more than 22 countries. Also, it has a partnership in almost 35 nations, including Safaricom plc. in Kenya. Globally the company employs about 71,000 workers. The United Kingdom has more than 19 million subscribers. The company has more than 400 million customers in India and aims to be the global number one mobile communications leader (Sutherland, 2020). The company's competitive nature is achieved by taking a responsible approach to its business. The company’s corporate responsibility and business strategy are interlinked. The company was initially known as Racal Electronics Limited. In 2020, the company operated in 22 countries and offered telecommunications and information technology services to 150 countries (Gupta & Nicovich, 2019). Moreover, Vodafone has a secondary listing on Nasdaq and a primary listing on London Stock Exchange.

In December 2001, Vodafone developed "Partner Networks" after signing the TDC Mobil of Denmark. This new concept includes Vodafone international services introduction to domestic markets. This idea extends the Vodafone brand into markets where it does not have stakes in local operators. By 2007, the company entered into a title sponsorship deal with the McLaren Formula One team until 2013. By 2011, the company acquired Bluefish Communications Ltd, which is a popular ICT consultancy organization (Gupta & Nicovich, 2019). Moreover, in 2012, the company agreed to acquire Cable & Wireless Worldwide, and this acquisition gave Vodafone access to CWW's fiber network. Besides, it enabled the company to take unified communications to increase its service to customers. By 2012, the company announced selling its 45% stake in Verizon Wireless to Verizon Communications (Gupta & Nicovich, 2019).

However, for the last two years, the company has had some challenges in its operation. The company is struggling to attain any substantial amount of growth (Wei, 2019). The study also reveals that by 2017 the company was named one of the most deficient performing organizations in the telecommunication sector, impacting investors' confidence. For example, in 2020, the company made a €455 million loss in FY 2020. This improved from the €7.6 billion loss reported in FY 2019 (White, 2020). In addition, the company index reduced by 18.6% in comparison in 2019, making the company an already struggling company. However, regardless of the struggle, the company is also maintaining its competitive position. To remain competitive, the company has dramatically reduced its product prices, and there is a predictable decline in its product in the future (White, 2020). Therefore, the company might continue experiencing challenges and a negative impact on the company's equity value.

Other than its financial challenges, the company is also facing high competition from its competitors. Some of its competitors include Airtel, AT&T, China Mobile, and Reliance Jio. These companies are a leading threat to Vodafone. Similarly, low tariffs of competitors like Reliance Jio force Vodafone to reduce its product prices to remain competitive (Sutherland, 2020). Therefore, regardless of heavy investment in technological innovation and growth, the organization's key customers, especially in local markets in Europe, are declining. In addition, the rate of competition in the industry is increasing and becoming more assertive (Sutherland, 2020).

The leadership style utilized in Vodafone Group

The company's former chief executive officer was Vittorio Amedeo Colao, who served in the company from 2008 until 2018. The current company's Executive Committee includes Nick Read, the Chief Executive, the financial officer, Margherita Della Valle, and several executives responsible for global commercial operations, technology, human resources, and legal and external affairs (Ang, 2016). The committee's primary role is to conduct a strategic review to assess significant factors facing Vodafone and present to the company board of managers. The company management comprises a team whose purpose is to develop Vodafone (Ang, 2016). The company management focuses on expanding market boundaries, especially in emerging markets like Africa and Asia, leveraging the global scale and scope, creating the best network, and investing widely in new regions. Nick Read has succeeded in expanding the company market segments, particularly in China, where there is greater competition and heavy government regulations in the Chinese telecommunication industry. This has been possible due to the extensive business and negotiation skills, which made the company move from shareholding to a strategic alliance agreement. Also, its strategies facilitated the establishment of the China Representative Office and a Sourcing Centre.

More importantly, the company leadership has enabled the company to witness great success in its business strategies. Also, through its administration, the company has acquired more companies through acquisitions and mergers. Over the years, the company has set clear visions and purpose, with a great sense of urgency (Ongel, 2014). Also, the company promotes effective communication, where managers and subordinates communicate using an interactional Model of Communication. Similarly, the company uses the right leadership from hiring top management to subordinates. Through its effective management, the company has achieved effective networks that meet the consumers’ prevailing needs. For example, the company is now building its 5G network and will be among the first companies to develop 5G in the world.

Similarly, there is a clear set of leadership in the company that involves both managers and leaders. The company managers coordinate to achieve the company goals. In most cases, managers direct the roles to other employees in Vodafone groups’ plc. (Piaskowska, 2017). Managers also perform various functions at different levels, including project manager, general manager, and functional manager. Also, the managers make significant decisions in the company. They are expected to have various skills to perform the roles, including mental, physical, educational, technical, and moral experience (Ongel, 2014). Moreover, managers selected for the organization have practical communication skills and a good relationship with various organization units. Though they have functions like planning to control, they are expected to address employee needs and involve decision-making processes effectively (Piaskowska, 2017). Similarly, the company managers are good listeners since it deals with many individuals residing outside the organization. Besides, they are expected to analyze their decision systematically before making decisions. Moreover, they are involved in motivating their workers.

Another form of leadership in the organization includes leaders. The leaders, including the company CEO, play a significant role in guiding their subordinates to make the visions and decisions reality. In most cases, leaders use their manpower to implement the decisions of higher officials of Vodafone. There are various roles that the leaders play, including creating value for the bottom line workers, the company, and customers of the organization (Ongel, 2014). Also, a leader in the company is expected to analyze data to make decisions and support bottom-line metrics. Similarly, in most cases, the company leadership often engages with the team and relates with the workmates. Also, they mentor their subordinates, especially the marketing team and production team. Also, the company team of management has a routine of listening to its subordinate to achieve the business objectives and goals.

Analysis and Synthesis of Various Leadership Theories

The leadership utilized in the company can be linked to various leadership theories. For instance, like mentions, the company mentors its subordinate to gain success in the market. Therefore the company can be said to utilize transformational Leadership to create effectiveness among its employees and emerge victorious in the competitive market (Ahiabor, 2014). Transformational leadership is a leadership style where the leader inspires, encourages, and motivates employees to make them innovate and create. Thus, the company transforms leaders to work to promote the company's success. According to transformations theory, leaders often develop a vision of what the corporate culture dictates and communicate to subordinates (Ahiabor, 2014). The application of this theory is stimulating them to develop their skills. Also, to grow in the developing market, the company often inspires and challenges subordinates with a sense of excitement and purpose with what can be accomplished. For instance, the company conducts regular training and has various motivation programs which transform employees to move towards company success. Thus, the company can be said to utilize transformative leaders to remain relevant and competitive in the fast-changing IT world (Pai, 2021).

Similarly, looking at the company leadership, it can be said to use transactional leadership. This kind of leadership emphasizes the social interactions between managers and subordinates. Transactional leaders conduct their business by identifying subordinate needs and bestowing compensation to satisfy these needs (Livingston, 2019).Like the leadership demonstrated in the company, the company leaders often motivate their employees by observing their performances and reacting to failures. Also, as shown among the managers, the company has routine and competence values. The company managers and leadership often make decisions and clarify what is expected from workers and their subsequent compensation. Similarly, the company seems to use the Expectancy Theory in the motivation programs (Livingston, 2019).

This theory reveals that employees often behave according to the outcome they expect from the particular behavior (Pai, 2021). For example, the approach shows that in some cases, workers work harder when they are promised a pay rise or other reward compared to when they might not be rewarded.

However, contingency theory and situational theory are applied to invest in new and emerging markets in Africa and the Middle East. Like the contingency theory, which focuses on the elements related to the environment that may determine the particular style of leadership to be applied in a specific situation (Livingston, 2019). Also, company decision-making is said to be influenced by customer behavior. For example, the company is investing in 5G, which is due to customers demand. Therefore its leadership has aspects of situational leadership. Similarly, the demand for Chinese handsets in the international mobile markets made the company establish Sourcing Centers in China (Ahiabor, 2014). Lastly, company management involves subordinates in theories of management style. The approach reveals that a participative management style creates the greatest motivation.

Comments and recommendations

From the analysis, it is clear that Vodafone Group has stable leadership and motivated subordinate regardless of its severe competition. Therefore, the leadership might contribute to its growth into a global leader in the IT industry. Similarly, as stated, the administration is passed from management to subordinate employees; thus, the company can maintain its high standards. Also, from the structure of leadership, the organization’s leadership and culture are effective in spurring the company's growth.

Therefore, I recommend that Vodafone Group maintain its unique beliefs, culture, core values, and development strategies. In addition, however, it should try to improve its leadership by acquiring and training aspiring business leaders at a young age. Youths are always creative and can help bring new ideas given the proper training and opportunity.

Vodafone Group Recruitment and Selection

The company's human resource management helps the organization attain its goals and objective. With the increasing competition in the market, the company has created effective strategies to select and retain the best-talented employees (Kerr & Moloney, 2018). The Vodafone Group PLC follows human resource management with significant responsibilities like delivering commitment towards the organization, including selecting the best talents, motivating employees, and maintaining a healthy atmosphere. Within the organization are self-mentors who are tasked with the commitment of workers.

In the company, recruitment and selection are made by the human resource management. Vodafone often enlists and choose employee based on a procedure that aligned with their concern scheme. The company often recruits persons in different seats based on their suitability within the company nucleus. The set procedure and standards ensure that the right individual with the right set of attitudes and capacities are selected (Kerr & Moloney, 2018). The company often provides that the individual being hired has soft accomplishments, is an empathetic attitude, and not aggressive. The company considers such soft accomplishments though they vary from one place to another. In the managerial place, they also ensure that they hire individuals with the best analytical achievement and good communication skills linked to their corporate goals and objectives (Chyhryn et al, 2019).

Similarly, in employee selection and recruitment is compensation. The company has an excellent compensation strategy and programs which are linked to its concern scheme. Among its competitive strategy is the attractive wage systems (Chyhryn et al, 2019). The company compensation system is meant to encourage quality individualization to work toward company goals. The company provides attractive salary bundles which attract effective candidates, thus playing a significant role in its position among the industry leader. Other compensation program includes gifts and other non-monetary rewards. Also, the company is investing in employee training and development (Kerr & Moloney, 2018). The company keeps on adding value to its human resources by developing them on difficult accomplishment and soft accomplishment. The company often conducts training need assessment, which starts from identifying each section's preparation demands. After knowing the current needs, the company requests the relevant directors to measure and place people in their squads based on the needed development and region (Chyhryn et al, 2019). Also, training in the company takes place regularly due to the company innovation and its release of new technology often.

Analysis and Synthesis of Various Recruitment and Selection Theories

First, the company has delegated and mobilized its multifaceted roles in the administrative, HR, and business partnership. Therefore, it assumes the David Ulrich theory of human resource management (Anbu, 2019). The model defines vital roles and responsibilities of Human Resources, which are effectively demonstrated in the Vodafone Company and the major HR tasks in delivering the company objectives. Also, the company seems to adopt the Human Resource Management Model (Taha, 2020). This model defines all human resource management responsibilities. When these activities are discharged effectively, as demonstrated in the company. There is an excellent outcome. Similarly, the models reveal that when these responsibilities are followed, they lead to a competent and willing workforce who will help the organization achieve its objectives. Again, the models dictate an organization's selection, recruit, training, and development. Like in Vodafone, the model dictates the training need assessment and job analysis and the responsibilities of a specific job (Anbu, 2019).

Also, human resource selection and recruitment are based on motivation. Therefore it applies the contingency and expectation theory. Based on this theory, different people are motivated differently. For example, some individual is inspired by supervision while other are motivated when supervised. This aspect of motivation is also revealed in the Victor Vroom theory that shows that leadership style and individual goals motivate the individual (Taha, 2020). The approach is a benchmark for many HR professionals. Therefore the company motivation in various ways proves the use of contingency and expectation theory. Also, the organization demonstrates the use of a high-impact HR operating model. The model reveals that human resource management roles are evolving and differ from traditional HR practices (Anbu, 2019).Therefore the theory gives way to turn these disruptions into opportunities for sustainable business performance. The approach brings out the workforce and talent agenda, driving workforce engagement and performance and enhancing the experience for the enterprise's people. Also, the theory reveals that companies must learn to adapt quickly, make decisions, maneuver, and shift course in an agile way (Taha, 2020). Similarly, Vodafone seems to make effective decisions based on the region, especially in China, where there are many regulations in the telecommunication sector (Ashton, 2018).

Lastly, the company, in its motivation factor, applies Frederick Herzberg’s Motivation-Hygiene Theory. Based on the theory, hygiene factors are what cause dissatisfaction among employees in the workplace. The theory predicts that the motivation factors predict the attitudes and motivation of employees (Anbu, 2019). Vodafone is applying various strategies to employ and retain multiple employees. Some of its compensation strategies include wages and monetary gifts.

Comments and recommendations

The company selection criteria and standards seem to have significantly led to the success of the organization. Also, the compensation terms, including wages, are playing a significant role in employee retention, thus the success in venturing into a new market. Similarly, regardless of competition, the company is also succeeding in its technological and innovation development.

However, I recommend that the organization fully involve its employees in their decision-making. According to The High-Impact HR Operating Model, when employees are involved in decision-making, their motivation is significantly increased.

Conclusion

Vodafone is among the leading telecommunication companies in the United Kingdom and other parts of the world like India. Its main offices are located in Newbury, England. The company operates in Europe, Africa, Asia, and Oceania. However, over the last two years, the company has been experiencing challenges, and its profit margins are decreasing. As a result, the company is struggling to attain any substantial amount of growth. However, to remain competitive, the company has dramatically reduced its product prices, and there is a predictable decline in its product in the future. Some of its significant competitors include Airtel, AT&T, China Mobile, and Reliance Jio. The company CEO is Nick Read, who has succeeded in expanding the company market segments, particularly in China, where there is greater competition and heavy government regulations in the Chinese telecommunication industry. Among strategies used by the company, management is transformational and transactional leadership. Similarly, while leaders inspire employees, managers control them based on their set duties. However, there is great freedom that enables the company employee to participate in decision-making. Also, looking at the recruitment and selection proves, the company is significantly investing in recruiting the best employees and retaining them. Also, the company has an effective motivation program that seems to apply David Ulrich's theory of human resource management, contingency and expectation theory, high-impact HR operating model, and HRM model. Therefore the company leadership and employee selection play a significant role in maintaining the company position in the telecommunication sector.

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