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This assignment will be focused on the Employment and Training Corporation (ETC). The Employment and Training Corporation is Malta's public employment service and it has been founded in 1990. The scope of the Employment and Training Corporation is to provide and ensure equitable access to training programmes and employment services that contribute towards the social and economic development of the community.
1.0. The Employment And Training Corporation
Offers The Following Services
Vacancies for job seekers and others that are interested in changing their job.
Registration of Engagement, Termination and Self Employment.
Registration for jobless persons, being on first part registration a person can apply for social benefits that are targeted to help those that need them the most.
Registrants on second and third part are those looking for alternative employment.
Training Services including short courses, ECDL, Night Institute for further technical education and Euro pass Mobility that is intended to provide a consistent framework for the recognition by employers and training providers of acquired skills, competences and qualifications obtained by trainees, throughout Europe.
The Law Compliance Unit is there to identify any abusers of the social system.
The ETC encourages employers to place vacancies with ETC then the ETC staff can perform what is called the matching, by matching the skills of the people who are registering for work to the vacancies placed by the employers.
The Employment licences Unit is a unit which processes applications submitted by employers who wish to engage the services of foreign nationals.
Training Aid Framework is a unit where the ETC provides financial assistance to those companies that invest in the training of their workforce; the assistance is funded by the European Union.
In Malta there are several employment agencies that offer vacancies for people who are seeking jobs, but not all of them offer training and in cases when training is provided it is very expensive. The Employment and Training Corporation offers a variety of services, and it does not restrict its operation only to find jobs for people. The Employment and Training Corporation encourages job seekers to train themselves to attract more opportunities towards them. There are instances where a person is interested in taking a course to enhance his/her knowledge, while in other cases a person is in need of learning new things to be able to fit in a particular sector or job. The ETC offers other opportunities to job seekers who are interested in working abroad, it is an experience where a person learns new cultures and new ways applying different working strategies. The same job that it is being done in Malta may not necessarily be done with the same procedures applied abroad. People working abroad might be using a different procedure for the same job that is being done in Malta and there is a possibility that either in Malta or abroad the job is being performed more efficiently.
The ETC also offers target training where the training is targeted directly towards the costumers needs. For example: a job seeker who is in possession of qualification A is
registering for a job that requires both qualification A and B. The ETC job is to identify what is holding back the job seeker to get the desired job. The ETC also has the facility of doing in house training for the employees and job seekers.
The vacancies that are advertised on the ETC website can easily be accessed by everyone. The job seekers are also offered a service whereby they receive the vacancies posted by the ETC directly by electronic mail. The ETC offers another service to the job seekers where employment advisor are appointed to perform one on one interviews, and from these interviews the advisor will get a better understanding of the needs of the job seekers. The advisor will also be able to determine what is stopping the job seeker from getting a job and will advise accordingly.
In the case that the ETC needs to employ more people first the vacancy is circulated internally, the second choice would be to choose from people who are registering for work and match their qualifications to the post advertised.
The ETC offers another service directed to expatriates who wish to work in Malta. The Employment Licences Unit is where the employment licences for foreign nationals are issued allowing them to work in Malta. The issuance of the licence is determined by the fact that, the employer who is interested to employ a foreign national needs to show that his efforts to employ Maltese and EU nationals were futile. Only applications in the case of EU nationals are issued automatically.
Within the ETC there is another unit called the Law Compliance Unit, in this unit they try to identify abusers of the social system.
Figure 1: EMPLOYMENT AND TRAINING CORPORATION
Figure 2: EMPLOYMENT AND TRAINING CORPORATION
Figure 3: EMPLOYMENT AND TRAINING CORPORATION
LABOUR MARKET SYSTEM
Every organization has resources that it combines to produce a product or a service to its customers. Information is nowadays not recognised as only a resource but as a vital business resource. Information provided to ETC from external sources is transformed into actionable format for internal processing and outputted in a different format to recipients of information.
Schematic view of the
Employment and Training Corporation's
Labour Market System
Figure 4: THESE ARE THE 5 FORCES THAT AFFECT THE INDUSTRY WITHIN WHICH THE ORGANISATION COMPETES
These forces have been coined by Michael Porter
Threats of new entrants
Bargaining power of suppliers
Bargaining power of buyers
Threats of substitute products
2.0. Competitive Rivalry: In pursuing an advantage over its rivals a firm can choose from several competitive moves. The pricing factor: by raising or lowering prices of the services the ETC can gain competitive advantage. Improving service differentiation: By improving the way services are being presented to customers one hopes to be more able to attract more new customers and keep the returning customers happy. Using the channels of distribution more creatively: The ETC promotes its services through various channels employers are invited to attend information sessions to learn about new services, the ETC also takes part in job fairs giving out leaflets and encouraging people to approach the company's representatives.
However there are other factors that can influence the industry's characteristics.
Having a large number of firms increases rivalry because everyone is competing for the same customers and resources. Slow market growth causes more friction between firms as it directly affects their revenues. Low switching costs: when a customer can easily switch from on company to the other it will be even harder to attract more customers. Low level of service differentiation: this is associated with a higher level or rivalry. A diversity of rivals: with different cultures, histories and philosophies is more likely to create an unstable industry. To be able to survive rivalry a company needs to grow and expand its horizons the ETC is still under construction as it knows very well that it has to be a step ahead of competitors.
3.0. Threats of Substitutes: It refers to a substitute product / service in other industries. The firm is threatened in the case of a price change of the substitute product. The customers think that if they are paying less for the same service, they will still be getting the same quality. The competition endangered by a threat of substitutes comes from products / services outside the industry. The threat of substitutes will generally impact an industry through price competition.
In the case of the ETC an unforeseen competitor would offer similar services causing the ETC to loose its stability. The company has to take a closer look at what the competitors are offering and try to be more innovative at this stage the marketing strategy comes in handy, television, newspaper and radio adverts are advisable.
4.0. Bargaining Power of Buyers: In general when a buyer's power is strong the market situation is that of many suppliers and one buyer. Under such circumstances the buy will be powerful enough to set the price. This applies mostly to the manufacturing industry. In the services industry no physical material is actually purchased to produce a service. The service industry has to be selective when it needs to hire people; the more experienced and qualified the employees are the better the service. The company can be selective when it decides to purchase new databases and systems such as computer equipment.
The more sophisticated the system is, the company can expect that the processes will be performed much faster. If the system starts to break down or it's always busy and job seekers find it hard to obtain the information because it cannot be accessed due to malfunctions. One can expect that customers will choose better service providers. We are living in a fast paced environment where our customers are used to find everything at the click of a button, if the service provider fails to give the customers what they need and in a short time it will loose credibility.
5.0. Bargaining Power of Suppliers: A producing industry requires raw materials labour and components. This leads to buyer supplier relationship between the industry and the firms. If the supplier is powerful enough it will sell the raw products at a high price to make more profits. In the case of the ETC it does not need to buy raw materials as it produces services.
It will come across companies willing to sell their products that will be used during its operations. The firm needs to buy the best products but it will also need to take care not to spend its entire budget on operations.
The firm can issue a request for tenders to choose the supplier and have more than one option available.
6.0. Threats of New Entrants: Rivals are not the only threats that can pose a problem, there is a possibility that a new firm may enter the industry and effect the competition. In theory any firm should be able to enter and exit a market freely. In reality it will be much harder for a firm to get access to an industry that is made up of high profit level firms. Rivals will be discouraged as these are considered barriers to entry. When the profits in an industry increases it is expected that a lot of new comers would want to take a chance to benefit as well. On the contrary when the profits in an industry decrease we will expect to see firms exit the market. Firms also may be reluctant to enter markets that are extremely uncertain and involve expensive start-up cost. In some instances on a general agreement by the industry stakeholders, they would agree to keep the prices low as a strategy to prevent potential entrants from entering the market. Barriers from entry arise from several sources such as the government by restricting competition through the granting of monopolies and through regulations. The regulatory authority of the government in restricting competition is evident in the banking history. Patents and proprietary knowledge serve to restrict entry into an industry. Ideas of knowledge that provide competitive advantages are treated as private property when patented, preventing others from using the knowledge and thus creating a barrier to entry. Asset specificity inhibits entry into an industry, when an industry requires highly specialised technology and plants potential entrants are deterred to invest because if the operation fails they will be loosing more.
Figure 5: THE MACRO ENVIRONMENT
The macro environment:
Factors that influence a company's development
But that are outside the company's control.
For example the macro environment could include
Economic factors, political factors,
Technological factors and
7.0. Strategies: There are various strategies that can be adopted to gain competitive advantage. The following strategies can be utilised Cost leadership Strategy, Differentiation Strategy and Focus Strategy. Using the proper generic strategy will position the organisation to leverage its strengths and defend against the adverse effects of the five forces. The ETC is constantly aiming to offer the best service to its customers. Throughout the years it has stretched its opportunities through diversification and the implementation of new technology. In comparison to other competitors the ETC offers a different range of services and in the near future it is aiming to create a one stop shop, where the customers can benefit from a different range of services. The concept of the one stop shop aims towards a centralised unit where the customers do not have to visit different departments in various localities. The one stop shop saves people's time and it is more likely to attract a wide range of customers.
There are other organisations that offer training to customers but it is more expensive
The ETC offers training at no cost to all the job seekers who on the unemployed list. Even though the ETC tries to keep its prices reasonably low it still delivers a good quality service compared to other firms. The ETC is also focused on being more affordable and competitive in the labour market. It tries to make good use of the funds because training is an ongoing process.
It is important for the ETC to offer more innovative products to be able to attract a greater market share. The services need to be more user friendly and this can only be achieved by keeping abreast with the economic changes and the employment industry demands. The employment industry is shaped by various changes that occur in the Macro Environment such as Political Factors, Economic Factors, Technological Factors and Socio Cultural Factors.
8.0. Differentiation Strategies: When we take a closer look at the differentiation strategy, the aim is to be different from other competitors. The company needs to give the customers what they really want and exceed their expectations. When operating in the service industry the customer is the focal point of every operation.
When a service is created it is done with the customer in mind, through, statistical data and analysis. That is how a company can be sure to offer the most attractive service in the market. The services offered should offer attributes that are valued by customers and the customers perceive to be better than or different from the competition.
There are various ways of achieving greater results than the competition and it is by doing research. Being members of the European Union means that there are standards to be adhered to, services can be analysed and compared to achieve the desired effect. The company needs to hire a group of people who are responsible for finding alternatives on how to be creative and these people should be able to market the service successfully.
9.0. The Focus Strategy concentrates on a narrow segment and within that segment it attempts to achieve either a cost advantage or differentiation. The premise is that the needs of the group can be better serviced by focusing entirely on it. Firms that are able to master the focus the focus strategy are able to tailor a broad range of product development strengths to a relatively narrow market segment.
10.0 SWOT Analysis: An organisation may decide to take a step further and analyse the organisation's current situation through performing a SWOT analysis. This is a tool that identifies the strengths, weaknesses, opportunities and threats of an organisation. The SWOT analysis is a straightforward model that assesses what an organisation can or cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal strengths and weaknesses and external issues opportunities and threats. When this is completed an organisation has a clear picture of what it needs to do to accomplish its objectives and overcome its obstacles. When performing a SWOT analysis one has to be realistic about the strengths and weaknesses of the organisation and distinguish between the current situation of the organisation and the future possibilities.
Figure 6: EMPLOYMENT AND TRAINING CORPORATION
The ETC offers a variety of services.
EU funding allows for more innovation.
The ETC is in constant contact with customers therefore is able to detect promptly what is hindering the operations.
Time frames to be adhered to
More staffing needs
The ETC's customers might see the corporation as a way of obtaining social benefits.
Overload of phone calls, e-mails
Influenced by the Macro environment
The ETC empowers the staff
Improving in customer care
The ETC encourages the staff to find innovative ways on how to achieve better results.
Possible lack of resources
The recession contributing to an increase in unemployed people.
Managing Business in Context Questionnaire
Ms Maria Bartolo Galea
Title: Manager Migration ETC
From: Bartolo Galea Maria at ETC
Sent: 20 January 2011 14:18
To: Sammut Marion at ETC
Subject: RE: Questionnaire Manging Business in Context
My feedback in next to the questions
From: Sammut Marion at ETC
Sent: 19 January 2011 11:36
To: Bartolo Galea Maria at ETC
Subject: Questionnaire Manging Business in Context
1. In your opinion what is the role of the ETC in the Maltese society?
To provide and ensure an equitable access to employment services to contribute towards the social and economic development of the community
2. How important is it for the ETC to invest in the training of its employees?
Very much more so when one thinks of the guiding role many a time its employees assume in regards to its clients
4. Do you think that the ETC tries to be innovative when it launches new services and training courses, or does it keep using the same techniques over and over again?
I believe that it continually innovates to be able to meet the needs of the client groups whom the initiatives themselves aim to target or assist
5. From feedback that you may have received, are the customers of the ETC pleased with the services that are being offered to them?
As regards the ie: range of services, I believe that the Corporation offers diversity and that clients are pleased that their needs are being or have been recognized.
As regards how the service is delivered I believe that there is room for improvement not only from the employees delivering the service but also for the support systems these employees are afforded in the carrying out of their duties
6. When facing challenges by economic, political and technological factors does the ETC react immediately to keep its stability in the market?
Yes. A case in point was when big manufacturing companies had to deal with the consequences of the recession. ETC stepped in to train their employees so that when business picks up again the employees of these companies are better trained.
7. On a scale from 1 to 10 (1 being the least important) is the collection of statistical data considered useful by the corporation?
10 as how can the corporation measure its effectiveness without qualitative and/or quantitative data.
Employment Licences Unit
Senior Clerk | Employment & Training Corporation
T: +356 22201 289 | E: [email protected]