Performance Management: Saudi Telecom Company

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Question :

 Discuss the importance of performance management and performance rating in relation to the operations in the telecom industry. You should select a telecom company and explore and evaluate the varied strategies applied to provide quality services to customers along with the internal performance management of the company.

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Answer :

 Executive Summary

For effective business operation, organizations of the modern era need to significantly assess the strategies being implemented for the growth and development. With the significant growth in competition in the international market it is critically important for all business firms to manage the performance of organization by implementing distinctive measures. This specific report focuses on the importance of performance management and performance rating by evaluating the key operations in context to Saudi Telecom Company. 


With the significant growth and development in the technological sector, telecom industry has boomed with the introduction of various new technological concepts and advancements. This significant growth and advancements have helped the telecom industry with the opportunity to implement varied strategies for the providing quality services the customers. The telecom industry being a diversified sector operating worldwide it is critically important to understand and evaluate the operations for enhancing the performance levels. Performance management has become a key component for organizations functioning in the telecom industry for enhancing its smooth business operations and achieving the significant goals and objectives outlined by the management (Ferreira & Otley, 2009). Performance management is therefore defined as n ongoing procedure of communication in between an employee and supervisor that occurs throughout the year, for supporting the accomplishment of the organization’s strategic objectives. Performance management helps in identifying the significant needs and practices for enhancing the performance levels of the employees as well as the organization. The following sections would critically evaluate the approach and leadership to performance management in context to Saudi Telecom Company. 

Background of the Organization 

The Saudi Telecom Company is a Saudi Joint Stock Company that deals with telecommunication operations. It offers telecommunication services like landline, internet services, mobile services, and computer network. Founded it 1998 and headquartered in Riyadh, Saud Arabia the organization focuses on providing quality services to its huge customer base all around the country. According to a recent survey conducted, the Saudi Telecom Company have about 81% subscribers who contributes about 73% of the company’s total revenue. Due to the immense success the organization has expanded its business operations in distinctive parts of the world like Kuwait, Malaysia, Indonesia, Turkey, Bahrain, and South Africa ("STC - Saudi Telecom Company", 2018). The services provided by the Saudi Telecom Company are categorized under three division i.e. Al-Jawal (the mobile network), Al-Hatif (the landline network), and the Enterprise services. The organization’s effective management and strategic implementation has been the key for attaining success over the years.

Vision of the Company 

The Saudi Telecom Company is a digital leader and it operates on the vision of providing innovative platforms and services to the customers in the MENA region. The organization focuses on serving the customers passionately and captures innovative services to deliver to the markets ("STC - Saudi Telecom Company", 2018). The organization emphasizes on being recognized as the ICT leaders by providing quality and innovative solutions and services to earn he trust of the customers and enriching the society. 

Mission of the Company

The Saudi Telecom Company visualizes in providing effective innovative services to the wide customer base in the operating nations. The organization’s mission is to understand the desires of the customers and serve according to their needs. The organization always tries to link its day to day decisions and priorities for impacting the customers and exceeding the expectations of the customers ("STC - Saudi Telecom Company", 2018). Overall the company’s mission is to connect and enable the various sectors and community with technical services and solutions that would benefit from the various developmental opportunities. 

Strategy of the Organization

The Saudi Telecom Company critically focuses on developing the strategy that boost the organizational growth and development. With massive success gained since its inception, the management of the organization has played prolific role in implemented distinctive strategies that have contributed the smooth functioning of the business activities. Adoption of distinctive programs and initiative for supporting the development in community fields has enabled the company to attain is desired goals and objectives ("STC - Strategy", 2018). The Saudi Telecom Company promotes the national economic develop via its distinctive exercise of strategies and supporting the organization’s dealers. The effective relationship with the suppliers and stakeholders are considered to be a major part of the company’s strategic evaluation which has been quite efficient to develop the human resources of the organization. The company always focuses on capturing the opportunities in the market and applies prolific techniques to achieve the desired objectives. 

Role of Management in managing performance 

The Saudi Telecom Company specifically runs on the core values, mission, and vision depending on the involvement and commitment of the distinctive stakeholders like the employees, top management, managers and HR specialists. In terms of managing performance the Saudi Telecom Company emphasizes on the top management to play an effective role in the overall process by setting trends for the employees (Aguinis, 2009). The strategic partner of the Saudi Telecom Company is the HR department and therefore the management plays a vital role in pursuing the most effective strategy that enhances the organization’s possibility to face challenges in a competitive market. The organization have reformed its HRM strategies by effectively managing the employee performance by closely monitoring them and granting them the privilege of taking distinctive steps in for increasing the efficiency in their performance and achieving the objectives effectively. The management of the Saudi Telecom Company plays a major functional role in revamping the organizational set up for creating performance efficiency (Jackson, Schuler & Werner, 2009). 

Approach to Leadership of Performance Management

Leadership plays an emphatic role in managing the performances of the employees and the organization and therefore the Saudi Telecom Company have prolifically emphasized on the leadership role for ensuring maximum performance via developing, aligning, guiding and engaging the employees with strategic priorities and objectives. In terms of leadership, the organization has prolifically focused on the performance management system by effective goal setting process, continuous feedback, coaching and reviews (Scheer et al. 2005). 

The Saudi Telecom Company has also identified the developmental needs of the employees along with recognition and measurement practices. The leadership stature of performance management in the organization has specifically encouraged the teamwork, collaboration and communication for the effectiveness of performance among the employees of the organization (Buckingham & Goodall, 2015). The organization has critically managed the performance of the distinctive departments, work units and divisions by the processes, standards and the measurement indices. 

In terms of processes the organization has been dependent on the significant stages of planning, assessment, recognition, and career development. The entire processes prolifically analyze the annual evaluation of the performance of the employees. The process prolifically highlights and provides in-depth evaluation about the observations and consideration in terms of improvement and enhancements. The planning stage significantly sets the goals to be achieved; the assessment provides evaluation about the self-improvement and performance, the recognition highlights the various improvements and accomplishments including promotions and bonuses and the career development meets the need of the organization along with the enhancement of the strengths for eliminating the areas of weakness (Aguinis, 2009). 

The entire procedure followed by the Saudi Telecom Company provides a critical evaluation of the organizational processes by which the level of performance is analyzed and evaluated. The Saudi Telecom Company highlights the significant strategic implementation for the boost of performance management among the employees associated with the organization. 

Performance Appraisals 

The Saudi Telecom Company constantly focuses on performance management by implementing distinctive forms of strategies and techniques. In regards to evaluation of the performance appraisal the organization critically focuses on 360 degree appraisal which enables the organization to monitor the employees’ work for a certain period often annually. This significant process helps the organization in obtaining prolific feedback from the subordinates and co-workers instead from the direct supervisors. The strategic implementation of 360-degree appraisal has helped the organization in receiving 360 degree feedback in terms of self awareness (Scher at al. 2005). All the participants are provided with a report that analyzes the distinctive strengths along with the improvement areas which are important for identifying the distinctive areas of the employees’ weakness and holistic view about the direct and peer reviews. 

It has been significantly observed that implementation of the 360 degree appraisal method has enabled the employees to develop the skills and behaviors. The improvement via the customized development plan has encouraged the employees in individual accountability over the career paths and taking the role of self development along with the employee engagement in the process of feedback (Ferreira & Otley, 2009). The organization has also focused on rewards and bonus system for appraisal of the employees of the organization for boosting the efficiency of the performance levels. 


The entire report prolifically analyzes and evaluates the importance of performance management in context to the Saudi Telecom Company. The report significantly evaluates the key procedures adapted by the organization for developmental and growth purposes for the efficiency of the business operations. It also provides in-depth analysis about the significance of performance management for the growth of the organization along with the self development of the employees associated with the organization.