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

1 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 1.2.1: VALUES OF TELENOR PAKISTAN

1.1. SOURCES OF ORGANIZATIONAL CULTURE

FIGURE 1.3: SOURCES OF CULTURE AT TELENOR PAKISTAN

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We exist to help our customers get the full benefit of communications services in their daily lives.

FIGURE 1.2: VISION OF TELENOR PAKISTAN

MAKE IT EASY

We're practical. We don't complicate things. Everything we produce should be easy to understand and use. Because we never forget we're trying to make customers' lives easier.

KEEP PROMISESEverything we set out to do should work, or if it doesn't, we're here to help. We're about delivery, not over promising, actions not words.

BE INSPIRING

We are creative. We strive to bring energy to the things we do. Everything we produce should look good, modern and fresh. We are passionate about our business and customers.

BE RESPECTFUL

We acknowledge and respect local cultures. We do not impose one formula worldwide. We want to be a part of local communities wherever we operate. We believe loyalty has to be earned.

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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CEO

Vice President Strategy

Chief Finance Officer / Vice President Finance

Division

Business Planning &

FinanceAccounts

Procurement

Treasury and

Financial Operations

Revenue Assurance

& Fraud Manageme

nt

Audit and Internal Control

Credit Control

Chief Information Officer / Vice President IT

Division

Business Support System

IT Operations

IT Security

Chief Technical Officer / Vice President Technical

Division

Network Planning & Design

Implementation

Operations & Maintenance

Real Estate & Site Acquisition

Chief Marketing Officer / Vice President

Commercial Division

Sales & Distribution

Marketing

Customer Relations

Segments & Pricing

Products & Platforms

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

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CEO

Vice Presidents

Directors

Managers

Assistant Managers

Executives

Officers

about revenue concepts and cost efficiency can be discussed. Employees are welcome to

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 InducementInsideParent Company-Telenor Capital and Finances Profits and Brand

ManagementManagers Skills and Expertise Compensation and StatusEmployees Skills and Expertise Compensation, promotion

and unique working environment

OutsideCustomers Revenue and Brand Loyalty Prompt Connectivity, Voice

and Service Quality and Differentiated Packages

Franchisees Revenue and Customer Service

Fixed Salaries and Commission

Vendors Revenue ProfitGovernment Rules governing good

business practicesFair and free competition

PTA Protect interests of telecommunication operators and users

Fair competition

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.

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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Service Quality and Performance through a

superior network design

Convenience through the distribution

setup

Simplicity and trust through pricing

structure and

transparency

Efficiency through

alignment of structure

and strategy

FIGURE 5.1: COMPETITIVE ADVANTAGES OF TELENOR PAKISTAN

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

role expectations:

FIGURE 5.2: LEADERSHIP EXPECTATIONS FOR TELENOR PAKISTAN

COMPENSATION

The core compensation includes:

Base salaryBonus/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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Passion for Business

Empower People

IntegrityChange and

Constant Renewal

Operational Ecellence

LEADERSHIP EXPECTATIONS

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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