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University of Warwick institutional repository: http://go.warwick.ac.uk/wrap A Thesis Submitted for the Degree of PhD at the University of Warwick http://go.warwick.ac.uk/wrap/40591 This thesis is made available online and is protected by original copyright. Please scroll down to view the document itself. Please refer to the repository record for this item for information to help you to cite it. Our policy information is available from the repository home page. Work Organisation and The Restructuring of the Telecommunications in British Telecom and Korea Telecom Kiu-Sik Bae Industrial Relations and Organisation Behaviour Warwick Business School University of Warwick A thesis submitted in the fulfilment of the requirements for the award for the Degree of Doctor of Philosophy in the faculty of Social Studies at Warwick BusinessSchool, University, of. Warwick August 2000 1F. ßE11 .;. Irv -Z . Contents Acknowledgements ............................................................................. v Declaration ....................................................................................... Vi Abstract ................................................................................................... vii Table .............................................................................................. Viii Abbreviation ix ..................................................................................... Chapter 1. Introduction 1 ...................................................................... 1.1. Research Questions Overall Purpose the Research 2 and of ..................... 1.2. The Telecommunications industry 5 ................................................ 1.3. The Structure the Thesis 6 of ........................................................ Chapter 2. Literature Review Theoretical Framework 10 and ...................... 2.1. Revisiting divergence debates 10 convergence vs ................................ 2.1.1. Universalist Perspective 11 ...................................................... 2.1.2. National Institution Approaches 18 ............................................. 2.1.3. Converging Divergence Perspective 22 ........................................ 2.2. Theoretical framework: Dynamic Interactions 25 ............................... 2.2.1. The Possibility Convergence 29 of ............................................. 2.2.2. The Possibility Divergence 30 of ................................................ Chapter 3. Research Methodology 32 ...................................................... 3.1. Qualitative Research............ 32 .......................................... 3.2. Research Strategies............................................................. 33 .. 3.2.1. CaseStudy Approach......................................................... 33 3.2.2. Cross-National Comparative Study 34 ....................................... .. 3.3. CaseSelection Unit Analysis 36 and the of ..................................... ... 3.4. Methods Data Collection Analysis 39 of and ................................... .. 3.4.1. Interviews 40 .................................................................... ... 3.4.2. Observations Documentation 43 and ......................................... .. 3.4.2. Methods Analysis 45 of ........................................................ .. Chapter 4. National Institutions 47 ......................................................... 4.1. Introduction 47 ........................................................................ 4.2. National Institutions in Britain 50 .................................................. 4.3. National Institutions in Korea 54 ................................................... 4.4. Conclusions 59 ........................................................................ Chapter 5. Changing Telecom Governance Regimes 63 .............................. 5.1. The Globalisation of the TelecommunicationsServices Industry.......... 63 Regulation Competition in Britain 67 5.2. Privatisation, and ........................ 5.2.1. Privatisation 67 ................................................................... 5.2.2. Regulation 69 ...................................................................... 5.2.3. Deregulation Competition 71 and .............................................. 5.3. Partial Privatisation, Regulation Competition in Korea 74 and ................ 5.3.1. Public Enterprise Partial Privatisation 74 and ................................ 5.3.2. Regulation 76 ..................................................................... 5.3.3. Deregulation Emerging Competition 78 and .................................. 5.4. Conclusion 80 ........................................................................ Chapter 6. Management Strategies and Corporate Restructuring............ 82 6.1. Management Strategies in BT 84 ................................................... 6.1.1. Repositioning Strategies 85 .................................................... .. 6.1.2. Cost-Reduction Strategies 87 .................................................. .. 6.1.3. Customer-Focus Strategies 89 ................................................. .. 6.2. CorporateRestructuring in BT 91 .................................................. 6.2.1. Divisionalisation, Business Units Trading Units 91 and ................... .. 6.2.2. Consolidation Rationalisation 93 and ......................................... .. 6.2.3. Building Rationalisation Relocation 95 and ................................. .. 6.2.4. Downsizing 96 ................................................................... .. 6.3. Management Strategies in KT 101 ................................................. 6.3.1. Moderate Commercialism 102 .................................................. 6.3.2. Managerial Commercialism 103 ................................................ 6.4. Corporate Restructuring in KT 105 ................................................ 6.4.1. Matrix Organisational Structure 106 ........................................... 6.4.2. Rationalisation Consolidation 107 and ......................................... 6.4.3. Downsizing 110 ................................................................... 6.5. Conclusion 113 ........................................................................ Chapter 7. Work Control 116 .................. 7.1. Introduction ................................... 116 ....................................................................... 7.2. From Bureaucratic Control Where?........ 118 to .................... 7.3. Work Control in BT: Hard Control Soft Control 122 versus .................... 7.3.1. Former Work Control Systems in BT 122 ..................................... 7.3.2. Hard Control in BT 123 .......................................................... 7.3.3. Soft Control in BT 137 .......................................................... 7.3.4. Implications Hard Control Soft Control 144 of and ........................... 7.4. Hybrid Forms Work Control in KT 146 of ........................................ 7.4.1. Former Work Control Systems 146 ............................................. 7.4.2. Emerging Form Hard Control 147 of ........................................... 7.4.3. Self-Direction Bureaucratic Control 155 and .................................. 7.4.4. Consequences Implications Hybrid Control 163 and of ..................... 7.5. Conclusion 164 ...................................................................... Chapter 8. Work Rationalisation Mass Customisation 169 and .................... 8.1. What Rationalisation Customisation? 169 are and .............................. 8.1.1. The Definition Work Rationalisation 169 of ................................. 8.1.2. The Definition Mass Customisation 171 of ................................... 8.2. Work Rationalisation in BT 173 ................................................... 8.2.1. Rationalisation On the Access Side 174 ....................................... 8.2.2. Rationalisation On the Clerical Side 181 ...................................... 8.2.3. Consequences Work Rationalisation 186 of ................................... 8.3. Mass Customisation in BT 189 ..................................................... 8.3.1. Customisation On the Access Side 191 ....................................... 8.3.2. CustomisationOn Clerical Side 194 the ....................................... 8.3.3. Consequences Customisation 198 of ........................................... 8.4. Work Rationalisation in KT 199 .................................................... 8.4.1. Rationalisation On Access Side 200 the ....................................... 8.4.2. Rationalisation On Clerical Side 204 the ...................................... 8.5. Mass Customisation in KT 210 ..................................................... 8.5.1. Customisation On Access Side 210 the ........................................ 8.5.2. Customisation On Clerical Side 213 the ....................................... 8.6. Conclusion 216 ........................................................................ Chapter 9. The Flexible Use the Workforce 219 of ...................................... 9.1. Introduction 219 ....................................................................... 9.2. The Flexible Use Workforce in BT 221 of the ................................... 9.2.1. Task Flexibility 221 ............................................................. 9.2.2. External Flexibility 227 ........................................................