Assignment #

Submitted To:

Submitted BY:

Adnan Sajid 100645-011

Programme:

M.Com (batch-6)

3rd Semester

University Of Management & Technology.

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 INTRODUCTION

The report aims to analyze the human resource management system of a leading telecom

operator in Pakistan: Telenor. Among various parameters, the personnel management and

its characteristics will be discussed in detail along with the culture of organization.

Strategies resulting from these two variables will determine the effectiveness of the

organization.

The information collected will be critically analyzed to describe the strengths and

weaknesses of the organization. Possible recommendations will be suggested in the end to

manage the challenges faced by the different hierarchical levels at Telenor Pakistan.

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 COMPANY PROFILE

TELENOR PAKISTAN

Telenor Pakistan, a wholly owned subsidiary of Telenor ASA, launched its operations in
March 2005. One of the leading telecom operators providing prepaid, postpaid and value-
added services to seven million customers, it is spread across the country with a network
of 15 company-owned sales and service centers, more than 200 franchisees and some
100,000 retail outlets selling subscriptions and refills. Differentiated packages include
TalkShawk, Telenor Persona and Djuice. Being a part of the Telenor Group which has its
operations in 12 countries employing more than 34,000 individuals, Telenor Pakistan has
created 2,200 direct and 20,000-plus indirect employment opportunities.

The organization is in the growth phase capturing more than 14% of the market share,
achieving a 200% increase in the subscriber base in 2006 (beating Ufone in the number of
the subscribers) and planning for further expansion of network and services. Maintaining a
wide coverage in the country, with 500 destinations covered within less than 16 months of
the company’s launch, it now has the second largest network in Pakistan. The striking
growth rate has been achieved through the application of a highly successful business
model, local enthusiasm and hard work. Telenor Pakistan considers Mobilink as its major
competitor.

Telenor Pakistan CEO states:

“Telenor Pakistan is obviously different from the competition. Our culture is different, our
values are different and our focus on the fundamentals of business is different. Telenor

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Pakistan is fully involved with its key stakeholders and trusted as a friend of the
community.”1

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http://www.telenor.com/reports/2006/review/story/pakistan.php

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VISION AND VALUES

The distinguished culture is determined by the vision and values communicated

throughout the structure and amongst people. Their vision underlines customer focus
while values describe the behaviors necessary to realize that vision.

FIGURE 1.2: VISION OF TELENOR PAKISTAN

We exist to help our customers get the full benefit of communications

services in their daily lives.

FIGURE 1.2.1: VALUES OF TELENOR PAKISTAN

1.1. SOURCES OF ORGANIZATIONAL CULTURE

FIGURE 1.3: SOURCES OF CULTURE AT TELENOR PAKISTAN

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PEOPLE

Telenor Pakistan consists of energetic, youthful and dedicated employees aged 27 to 28 on

average. An appropriate match is required between the culture and employees at
recruitment and hiring. If People Excellence (Human Resource Department) feels that a
person will not be unable to adjust into the organization’s environment, even if he/she is
performing functionally well, the person is rejected. The dynamic group of people, sharing
similar mind-sets, love being with each other and meet on other occasions if unable to meet
during work-hours. They even stay back late, employees can be seen roaming around till 9
at night.

Primarily the culture comes from the top management. CEO of Telenor Pakistan is humble
and cooperative. The employees get the message that if the top management is so
accommodating then the employees should behave similarly. What is important to the CEO
becomes important for employees to identify completely with the organization. There are
four foreigners in the top management but this does not create communication barriers.
They are extra humble to others while individuals of a local origin are extra sensitive to
them so no one feels alienated. The values of humbleness and free interaction in putting

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forth ideas lead to a harmonious culture and efficient communication. The management is
easily accessible to discuss various issues. It is difficult to distinguish between them as the
culture is so homogeneous that it keeps every one at par with others (no formal protocol is
given).

ORGANIZATIONAL STRUCTURE

The organic structure of Telenor Pakistan promotes cultural values that result in
integration and coordination. The organogram of Telenor Pakistan is given as below:

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FIGURE 2: ORGANIZATIONAL MAP OF TELENOR PAKISTAN

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TYPE OF STRUCTURE: VERTICAL DIFFERENTIATION

HIERARCHICAL LEVELS

There are seven hierarchical levels as the size of the organization approaches 2500 to 3000
employees. Roles and responsibilities are clearly defined at the time of joining the
organization; employees are selected against defined criteria. Roles can be added later but
employees have a fair idea about their job responsibilities from the beginning.

FIGURE 2.2: HIERARCHICAL LEVELS AT TELENOR PAKISTAN

Seven layers do not create communication or motivation problems due to the open culture.
There are no instances of de-motivation though in certain areas like Customer Relationship
Department or Customer Service Centre different customer queries and complaints can
raise frustration levels. Managers in these departments intervene to solve problems.

Whenever an employee has a new idea, he/she is encouraged to approach the management
and share it with them. Idea drop boxes are also placed at various locations where
employees leave their suggestions. The Communications Department works out if the ideas
can be implemented and then discusses them with the employees. There is also a formal
platform at the group level known as SEED where innovation is encouraged and new ideas
about revenue concepts and cost efficiency can be discussed. Employees are welcome to

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participate and submit their ideas. If the ideas handed in are feasible then they are
implemented in the organization (at country level or global level, depending on the nature
of the proposal). Employees are then rewarded financially for their helpful contributions.

SPAN OF CONTROL

Span of Control is determined by the role and job responsibilities of managers. It varies
from department to department. On average, the span of control is 4-5 people under a
manager.

INTEGRATING MECHANISMS

Cross-functional teams are a major integrating mechanism. Further there are temporary
project teams. No ad-hoc committees have been formed to date. Team-building is enhanced
by Away Days when members of different divisions and departments take some days away
from work to meet other geographically spread employees of Telenor. Sometimes the
whole department goes away from work for 2-3 days to have fun. Employees get to know
those with whom they have communicated before but not met in person. Formal team
evaluation does not exist. Employees on teams, for instance finance teams, are rewarded
individually.

CENTRALIZATION AND DECENTRALIZATION

Apart from STRATEGY, all other functions are de-centralized. People at Telenor Pakistan
are motivated to take their responsibilities especially in cross functional projects. Managers
in each department oversee that the employees take up their roles and duties and their
performance is monitored accordingly. If an employee is loosing focus from his core job by
taking added responsibilities, he/she is instructed to re-adjust his/her priorities.

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STANDARDIZATION AND MUTUAL ADJUSTMENT

At Telenor Pakistan, the level of standardization and mutual adjustment varies across
functions. Generally strict obedience to rules is not required as long as results are not
affected. As long as individual responsibilities and deadlines are met, there are flexible
hours of work. Work is important instead of the number of hours worked. Employees can
select their work timings which can even be from afternoon to evening. Instead of being
bound by office hours, a sense of responsibility is inculcated in them to achieve self-
assigned goals. This brings a sense of comfort in working in such organizational structure.

Rules and procedures are present to control the behavior of employees and to facilitate
smooth working of the organization. A level of standardization is required to be maintained
in certain vital functions such as Budget Control. SOPs are documented in the case of the
financial control or HR related policies.

Genuine requests from external customers are taken into account by the CRO (Customer
Relationship Officer) at Service Centers. The CRO does all he/she can or is possible within
authority to process the request or complaint. If the customer’s request is beyond the
authority of the CRO, then managers are there to aid the customer or provide some sort of
non-monetary compensation to appease him.

IT AND EMPOWERMENT

The level of empowerment differs across departments and divisions, depending on the
nature of work. It varies according to the style of management of functions; more
empowerment in CRO and Sales and Marketing than in People Excellence. IT increases the
level of empowerment. Within the network service of the Telenor in Pakistan, there is a
(inter and intra net) portal system used to communicate information efficiently. An online

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HR MS System, H2H (Here to Help), is being used internally. This locally built system was
launched last year but is still not well integrated at present.

CONFLICT RESOLUTION

When different departments work together in an organization, their interests may differ
due to functional and structural differences. Due to these variations, conflicts among
departments are inevitable. The issues are not taken to the top management and there is no
coordination post in the organization which can facilitate the departments to increase
coordination with each other. Whenever a conflict arises among functions, the heads or
managers from those functions sit together and discuss the source of conflict. They try to
resolve all their differences amicably. There are always conflicts between the technical and
commercial divisions which they mostly solve between themselves. If, however, a major
issue arises which they are unable to resolve themselves then it is taken to a level higher.
The management then discusses the reason for the conflict, addresses the concerns of both
the parties and then arrives at a conclusion which is in the interest of all departments.

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STAKEHOLDERS

FIGURE 4: CONTRIBUTIONS AND INDUCEMENTS OF TELENOR PAKISTAN’S STAKEHOLDERS

Stakeholder Contribution Inducement

Inside
Parent Company-Telenor Capital and Finances Profits and Brand
Management
Managers Skills and Expertise Compensation and Status
Employees Skills and Expertise Compensation, promotion
and unique working
environment

Outside
Customers Revenue and Brand Loyalty Prompt Connectivity, Voice
and Service Quality and
Differentiated Packages
Franchisees Revenue and Customer Fixed Salaries and
Service Commission
Vendors Revenue Profit
Government Rules governing good Fair and free competition
business practices
PTA Protect interests of Fair competition
telecommunication
operators and users
Community Social Responsibility Revenue and Employment
and Benefits for
improvement of living
standards
General Public Positive word-of-mouth Improved Communication

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GAINING COMPETITIVE ADVANTAGE
In order to gain a competitive advantage one has to align competences and strategies.
Highly motivated employees and flexible culture enables them to achieve an edge over
competitors.

FIGURE 5.1: COMPETITIVE ADVANTAGES OF TELENOR PAKISTAN

CORE COMPETENCIES

The Human Resource at Telenor Pakistan is their core competency. The reason is that the
employees create a culture and all the achievements of Telenor are attributed to its flexible
culture. It is necessary to motivate and retain this asset of the organization. For this
purpose, training and compensation is provided to employees along with other
motivational techniques.

TRAINING

The methods of training differ from function to function. On-the-job training is

required in the Customer Relationship Department (CRD) and similar system
training in the IT Department. Management Training Programs combine

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experiential learning with theory. Leaders are chosen according to the following
role expectations:

FIGURE 5.2: LEADERSHIP EXPECTATIONS FOR TELENOR PAKISTAN

COMPENSATION
LEADERSHIP
EXPECTATIONS

The core compensation includes:

Base salary
Bonus/commission
Long-term incentive plans

In addition, Telenor offers a total package that may include insurance, recreational
activities and other benefits adapted to the local market and individual employee’s
need.

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Managers are rewarded according to the achievement of assigned goals. Apart from
monetary rewards, such as variable pays/increments, other motivational tools such
as recognition (Employee of the Year rewards) are used.

CAREER GROWTH

Initially, qualifications are the defining criterion for fresh graduates. For career
growth, the right mix of performance on the job and performance potential for the
other level is imperative. Apart from the right attitude, knowledge also matters. If an
individual from Finance gets a higher degree, for instance, becomes a chartered
accountant then the chances of growth increase. There are no specific career paths:
Vice President (VP) of Human Capital Division (HCD) became the next Chief
Marketing Officer (CMO).

EMPLOYEE MOTIVATION
Underperforming managers are encouraged through coaching and counseling by
their respective directors or the director of People Excellence. The turnover is not
high as compared to that of the industry. There is no defined employee exchange
program. Employees performing exceptionally well are taken up to work in the
Telenor Group.

Relocations are common in the organization: employees are transferred from

People Excellence to Finance or from Procurement to Customer Relations.
Investment per employee is placed at the higher end of the industry.

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STRATEGY

A mix of differentiation and low cost strategy is followed by Telenor Pakistan.

Differentiation and innovation exist at the core of Telenor, be it culture, compensation
packages or value added services.

MANAGING DIVERSITY
Telenor Pakistan is keen to promote diversity and has achieved good results in this area.
Telenor has developed requirements for diversity in both recruitment and our management
development programs. There is an appropriate blend of less seasoned and experienced
employees. No quota has been assigned; the best-fit candidate (according to the job
requirements) is employed. At the office level or call centers, even fresh graduates are apt
but the director level requires a masters degree and preferably some work experience.

Telenor Pakistan has a large proportion of females who are recruited for internal
leadership development programs and executive positions on the basis of past
performance. The organization is working on Day Care Centers to help female employees
manage their responsibilities after settling down. Relocation issues are dealt cooperatively
when female individuals move out of the city after marriage and wish to continue working.
They are relocated and facilitated in the new city.

PROMOTING EFFICIENCY AND INNOVATION

Innovation and novelty, mainly in the areas of business processes, customer satisfaction
and goal setting, is highly encouraged at Telenor. Employees are also motivated to come up
with innovative ideas and to convey them to the upper management. If the ideas are
feasible enough to be implemented then they are applied to respective areas and the
employees are duly rewarded for their contributions. For example the sales personnel have

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a greater interaction with customers and knowledge of their needs. They can convey this
information to the management who can use it to design better consumer packages.

Efficiency is achieved through maximum utilization of resources and also through

adherence to goals set by the top management. Telenor introduced the Six Sigma program
for the improvement of its business operations in the very first year of its operations in
Pakistan. This has helped the organization in maintaining its quality standards and also in
the up gradation of its business processes.

Telenor Pakistan is a young and progressive organization which has a multitude of

strengths in its existing organizational design. There are still a few weaknesses which can
affect the organization in the long-run.

Beginning with the strengths, there are no communication barriers. There are seven
layers in the organization so one would believe that there would be a lot of communication
barriers between the employees and their superiors but that is not the case. The policies
adopted ensure that there are no communication barriers present. They include an open
door policy and open work environment where the managers sit with their sub-ordinates
and do not have separate offices. Also employees of the same level have no cubicles so it
helps in enhancing the communication amongst them.

Employees are encouraged to take initiatives and come up with new ideas: empowerment
exists. Also these ideas can easily be communicated to their superiors. Employees are free
to express themselves. The span of control also suggests that not all powers rest with any
particular individual. In projects people are encouraged to come up with the best possible
solutions and the manager just oversees the performance of employees. The SOPs and
guidelines have to be followed in order to ensure smooth functioning of all departments

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Strong integration with in the organization has been a key success factor. All conflicts are
managed by the concerning departments and if not they are taken one level above but
there have been no such cases which have been reported to the CEO. The managers of the
concerned departments sit and come up with a solution which is acceptable to both the
departments. Social gatherings also help in enhancing the integrating capabilities of the
organization.

Employees are evaluated on the basis of individual evaluation. Even when they are working
in a group this ensures that there are no free riders. Underperforming employees are
provided with counseling sessions or shifted to another position where they can perform in
a more effective manner. All employees are assigned specific roles and responsibilities for
which they are held accountable. There are no specific work hours but employees are
supposed to meet the specific deadline. This also increases the motivation level of the
employees as they are not bound yet increases their level of productivity as they are
motivated. This results in effective evaluation.

Similarly there is an effective hiring process. Only those people are hired which the HR
department would believe can easily blend into the culture of the organization. This
ensures harmony within the whole culture effectively manages diversity.

All the point discussed above lead to a flexible culture which is most suitable for the
employees on the other hand ensuring all the targets is met. Employees are not bound to
follow a dress code unless they are to attend a formal meeting. This culture has been set by
the CEO himself and the new employees coming into the organization have no difficulties in
adjusting into it.

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However, Telenor Pakistan is faced with a few challenges. At this point of time there is no
employee exchange program which creates a barrier in exchanging skills and expertise
with the parent company. Only the top level management comprises of foreigners and
there are only few cases where the managers from Pakistan have been taken abroad.

This can act as a double edged weapon as young employees are easy to mould and are
highly motivated on the other hand they might lack skills and expertise which are required
to perform the task. In order to train them for performing their tasks efficiently, extra
resources have to be spent.

Moreover, the CEO being a foreigner would have difficulties in understanding the
psychology of domestic employees. Also his ability to comprehend the overall situation of
the domestic market would not be as strong compared to his competitors. Coming at par
with competitors would require utilization of extra resources.

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Dealing with challenges requires a coordinated effort so that the company is able to sustain
itself in the ever-changing competitive environment and continues to provide superior
value to the customers. The group recommends the following:

 There should be an effective employee exchange program even at the level of middle
management so the organization can share the level of skill and expertise at all
levels with the parent company

 Introduction of employees stock options would further enhance the motivation level
because then the employees too would have a stake in the organization.

 In their workforce there should be a quota for the disabled people. This is currently
being practiced in the parent company. This would enhance the image of the
organization being socially responsible

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