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:

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“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 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: VISION OF TELENOR PAKISTAN

FIGURE 1.2.1: VALUES OF TELENOR PAKISTAN

1.1. SOURCES OF ORGANIZATIONAL CULTURE

FIGURE 1.3: SOURCES OF CULTURE AT TELENOR PAKISTAN

We exist to help our customers get the full benefit of

communications services in their daily lives.

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
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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 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

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 participate and submit their ideas. If the ideas
handed in are feasible then they are implemented in the organization (at
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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

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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 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 Prompt Connectivity,
Loyalty 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
business practices competition
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

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Programs combine 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 salary
Bonus/commission LEADERSHIP
EXPECTATIONS
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.
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
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 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.

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

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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 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.

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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

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guidelines have to be followed in order to ensure smooth functioning of all
departments

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.

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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.

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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