TELENOR PAKISTAN

HISTORY Telenor Pakistan is 100% owned by the Telenor Group, an international provider of high quality voice, data, content and communication services in 11 markets across Europe and Asia. Telenor Group is among the largest mobile operators in the world with 140 million mobile subscriptions (Q4 2011) and a workforce of approximately 30,000. Telenor Pakistan is the country's single largest European foreign direct investor, with investments in excess of US$2 billion. It acquired a GSM license in 2004 and began commercial operations on March 15, 2005. At the end of December 2011 it had a reported subscriber base of 28.11 million, and a market share of 24% making it the country's second largest mobile operator. Offering mobile financial services Telenor Pakistan acquired 51% of Tameer Microfinance Bank in November 2008. In 2009 it launched 'easy paisa' to become Pakistan's first telecom operator to partner with a bank to offer mobile financial services across Pakistan. Contributing to Pakistan's economy The company continues to contribute to Pakistan's economy. It has created 3,000 direct and 25,000 plus indirect jobs and has a network of over 180,000 retailers, franchises and sales & service centers, thus providing a means to livelihood to thousands. For 2011 it is estimated that Telenor Pakistan contributed over Rs. 23 billion in various forms of direct and indirect taxes to the economy of Pakistan. Internet service provider Telenor Pakistan provides wide EDGE connectivity across the country. It has one of the largest data networks (GPRS) in Pakistan providing Internet services to customers. TODAY Telenor Pakistan has grown to become a leading mobile communications services provider of the country. Telenor Pakistan's corporate headquarters are in Islamabad, with regional offices in Karachi, Lahore, Faisalabad, Multan, Hyderabad and Peshawar.

VISION Our vision is simple: Telenor exists to help customers get the full benefit of communications services in their daily lives. We're here to help. The key to achieving this vision is a mindset where every one of us works together: Making it easy to buy and use our services: delivering on our promises, being respectful of differences, and inspiring people to find new ways. MISSION Telenor is a customer focused business mobile service operator

telecommunications company that seeks competitive advantage in quality and valued added service in both prepaid and postpaid categories through state of the art technology. Telenor relies on building trusting relationships with customers, owners, employees and society in general. OBJECTIVES The three primary objectives for Telenor Pakistan's emphasis on Corporate Responsibility are: Telenor Pakistan's customers shall be confident that the company runs its operations in an ethically responsible manner. Telenor Pakistan's employees shall be proud of the way in which the company handles its social responsibility. Telenor Pakistan's other stakeholders, expecting high standards of social commitment, shall have high regard for the company. CORE VALUES 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 Promises: Everything 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.
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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. STRATEGY 2012-2014 Our overall ambitions are straightforward; Telenor Pakistan shall create growth by being preferred by customers, and shall deliver the services required in a highly cost effective manner. Preferred by customers and cost-effective Telenor is a well positioned company in a thriving industry. They are achieving revenue growth above peers, while simultaneously building profit margins and cash flow. With a talented and empowered workforce as a solid foundation, they will deliver even better experiences to customers in the years ahead and continue to grow Telenor to the benefit of their customers and shareholders. KEY AMBITIONS FOR 2012-2014 1. Create top-line growth through being preferred by customers Competition for existing customers is increasing in many of our markets with higher market penetration levels. In addition, new ecosystem players are challenging core service revenues and customer relationships. It is increasingly important for Telenor Pakistan to win and retain existing mobile subscribers, and to strengthen the ties they have with customers. The telecom industry has in general a significant value potential in improving how they interact with customers. Making Telenor into a more customer focused company should allow growing market share, taking premium price positions in the market, and also improving margins by employing lean, efficient customer processes. As part of this, they will focus on strengthening brand perception and customer satisfaction levels. 2. Be a highly cost efficient operator Continuing business success depends on Telenor Pakistan ability to provide services in a highly cost effective manner. Becoming highly cost efficient represents an opportunity to provide competitive market offerings, as well as to improve capacity for structural growth. A combination of business unit (country operations) specific operational excellence programs and cross border initiatives will be vital in this area.
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3. Create value and growth from financial and asset management In addition to manage current operations for growth and cost effectiveness, Telenor Pakistan aim to optimize the portfolio and create value both from acquisitions and divestments. They will do this while making sure to provide attractive remuneration to our shareholders. 4. Environmentally conscious Telenor Pakistan has taken and continues to implement a number of environmentally-friendly initiatives. These include mainstreaming energy efficiency and alternate energy solutions, and implementing occupational health & safety practices that comply with international standards. GROWING RESPONSIBLY Feb 11 Telenor Pakistan crosses the 25 million subscriber mark Feb 11 Djuice launches Khamoshi Ka Boycott Feb 11 Karo Mumkin projects launched Mar 11 Celebrates 6th birthday Apr 11 Karo Mumkin receives Best Branded Programming Project in

the Asia-Pacific region award in the Asia Pacific Content Awards Apr 11 Telenor HumQadam launched May 11 Karo Mumkin campaign wins award in Public Service, Govt. & CSR category at the Pakistan Advertisers Society awards in Karachi May 11 Telenor Pakistan achieves leading position in Business Intelligence

Groupwides BI Magic Quadrant results for the third year in a row May 11 BCG Report launched Shaping our financial future: Socio-economic impact of mobile financial services May 11 Telenor Pakistan crosses the 26 million subscriber mark Jun 11 Easypaisa wins Shaukat Khanum Social Responsibility Award Aug 11 Djuice launches youth anthem Kya Darta Hai Aug 11 Telenor Pakistan wins Prime Minister of Pakistan Trophy 2011 (Telecom Sector category) under the auspices of LCCI

LOGO DEVELOPMENT

CULTURE IN TELENOR Telenor has an Adaptability Culture, with flexibility being the need of the organization and strategic focus being external. The organization has a clear vision, with the goal of increasing growth, profitability, and market share. The employees are paid for performance. The individual employees are made responsible for contributing in gaining the organization's goal, and in return they are rewarded with incentives thus keeping the employees motivated. The organization has Award Functions, as a part of the organization's culture. 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 organizations 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
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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 everyone at par with others. ORGANIZATIONAL STRUCTURE The structure of Telenor is mechanistic structure. As being told, during the interview with Human Resource Manager, there are strict rules and regulations, which the company's employees have to follow. Decision-making is highly centralized and empowerment is not appreciated. The structure of Telenor is functional as there are seven departments. A Senior Executive Vice President or Executive Vice President heads every department. Each executive in charge is responsible for all the services that are related to him. Every department is headed by a separate manager, which controls overall operations of that department. For maximum efficiency, the overall structure of organization is functional as all human knowledge; skills and abilities with respect to specific activities are consolidated in a single department. Flat structure for each department is adopted to enhance mutual operations and cooperations between lower staff and managers. Wide span of control in whole organization makes it easy for lower staff to access top managers and enhance coordination between them. 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. 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.

CEO Vice Presidents Directors Managers Assistant Managers Executives Officers

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 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. Teambuilding 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 Strategic Decisions are highly centralized, where as certain decisions may be decentralized to lower levels. For example, HR decisions are highly centralized. On the other hand decisions taken for the marketing of brand are highly decentralized. The decision is done on the spot, whether to display the Billboard on that specific place or not. 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 losing focus from his core job by taking added responsibilities, he/she is instructed to re-adjust his/her priorities. 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 customers 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.

FORMALIZATION Although the organization has a functional structure, the level of Formalization is not very high. Written Rules & Procedures do exist at the office Level, but at higher levels, Informal channels of communication are most visible. The Policy Manual currently needs to be updated. Telenor has well defined job descriptions that give the details of every job. SPECIALIZATION Telenor is highly specialized, since the organizational tasks are subdivided into separate jobs and there is a visible division of jobs between employees. STANDARDIZATION Standardization is high at Telenor, the procedures are well defined, and the employees perform their tasks in a uniform manner. Standardization is mostly visible in lower and middle level of employees. PROFESSIONALISM Telenor has a high level of Professionalism. Formal education and Training of the employees and requites is given major importance. DEPARTMENTAL DESIGN Departments following the routine technology have the Organic structure with following characteristics: Low Formalization Low centralization More training or experience Small span of control. Most of the departments of Telenor are having pooled interdependence. So the success of every department contributes to the success of organization as a whole. Mediating technology is used which provides products or services that mediate or link clients from external environment and, in so doing, allows each department to work independently

HIRING PROCESS

ENVIRONMENT Financial Sector Telenor has no issues obtaining the finances. The organization has no debts; hence it is pretty stable in this sector. Telenor Pakistan is the subsidiary of Telenor International that is among the world largest telecommunication firms therefore, Telenor is having to financial problems. Socio-Cultural Sector This is the sector that so far has influenced Telenor Pakistan more than any other factor. Telenor parent company, which is Telenor international, is mainly owned by Norway and Denmark. As Pakistan is an Islamic country, so after the publication of cartoon in the newspapers of Norway and Denmark related to Holy Prophet S.A.W influenced Telenor

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Pakistan. The offices of Telenor were burnt down in Pakistan. After that mishap, Telenor built its goodwill with great hard work and consistency. Technology Telecommunication industry is influenced heavily by the technology introduced and being used in the market by the company and its competitors. So far Telenor is dealing well with this factor and it is far ahead as compared to its competitors. Mobile TV is one example and Edge service in another one. GPRS and WAP is more fast as compared to other networks. So, Telenor is having no problems related to technologies. ENVIRONMENT UNCERTAINTY The environment of Telenor is Complex and Unstable, with high uncertainty. There are only many external elements to compete with, and they all are dynamically active. Adapting to Environmental Uncertainty The structure of Telenor suggests that it is adapting to environmental uncertainty. For this it has increased the number of its departments and positions, and also pays emphasis on communication and coordination between these departments. Framework for Organizational Responses to Environmental Uncertainty The Environment for the organization is Complex. The organization has many competitors, like Mobilink, Warid, Ufone etc., and the competition is high with its competitors. Due to this reason the environmental changes become unstable. To counteract the changes in the environment the organization has organized into Cross-functional Teams. The Uncertainty is high, and hence the organization has an Organic Structure. SWOT ANALYSIS Strengths First one to bring the concept of "Mobile TV" in Pakistan. Customized packages available for every market segment e.g. djuice for price conscious class, smart calls for routine users, Telenor persona for upper middle and elite class. State of art technology e.g. they are up with the latest networking underground fiber optical network. Widest network coverage after Mobilink.
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The first ones to provide free roaming facility during hajj program. Telenor is operating in more than 200 destinations with more than 1.7 subscribers all over the Pakistan. Weaknesses Pakistan has no institute that provides formal education in this field regarding networking and other core technical competencies so they are required to have a major chunk of their employees trained from foreign institutions. Poor call center performance. Customer service center is not up to the commitment and most of the customers' calls are not served. Comparatively high prices in Telenor persona (postpaid) as compared to Warid and Ufone. Poor visual quality of Telenor mobile TV, as there is a buffering problem and stills are received instead of the proper videos Franchise distribution system is not up to the mark. This is the problem with almost every telecom company in Pakistan. Lack quality in record keeping at franchises and other distribution networks. Opportunities Participation within the growing industry. Ample opportunities are available in the telecom sector and still many of the areas are not being covered. Increasing market share. Product line expansion. Cost discount strategies. Product innovation. To become customer size specialist. Constant repositioning. Threats Monopoly of PTA, at any time PTA can alter the facilities of telecom sector. Immense cut-throat competition operating in kinked demand oligopoly.
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Implementation of WTO will result in open & competitive pricing even in the service sector exclusively in telecom. There is an imbalance between prices of inputs & outputs. 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.

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

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. COMPENSATION 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 employees 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.
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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 experiential learning with theory. Leaders are chosen according to the following role expectations: Passion for Business

Operational Ecellence
LEADERSHIP EXPECTATIONS

Empower People

Change and Constant Renewal

Integrity

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. PERFORMANCE APPRAISAL SYSTEM: Objectives The purpose of this policy is to provide a formal review program to evaluate work performance and to promote communication and discussion of job performance. The intent of these discussions should be to review current job performance and

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responsibilities, set goals, and discuss future opportunities with reference to past performance at Telenor. The Objectives of the Performance Review Program are: To measure work performance To motivate and assist employees in improving their performance and achieving their personal/professional career goals To identify employees with high potential for advancement To provide objective information for making decisions on salary increases, promotions, bonus and transfers. To identify employees training and development To provide a solid path for career planning for each individual Performance Review Informal performance discussions should be conducted frequently as and when the need arises. These discussions will provide the basis for an objective summarization of performance during formal Performance Reviews and allow more time for discussing future plans and organizational as well as personal objectives. employees personnel file. Formal written performance reviews will be conducted with all employees annually. Notification along with Performance Evaluation Forms will be sent from the Human Resources Department in advance with the scheduled performance evaluation date. All employees will be reviewed at least once at confirmation. Therefore, The supervisor is

encouraged to make notes on pertinent points discussed and to place those notes in the

Performance Reviews will be held on an annual basis from the date of hiring or more often if desirable to do so. The supervisor will receive notification of the scheduled review period from the Human Resources Department. Telenor conducts performance appraisal in order to evaluate their employees current performance or past performance relative to companys performance standards. Telenor try to adapt the performance appraisal in which their employees understood what his or her performance standards were and that the supervisor also provides the employee with feedback, development, and incentives required to help the person eliminate performance deficiencies or to continue to perform above par. There are many

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performance appraisal methods. Telenor uses the computerized performance appraisal method. At Telenor a review is intended to be an open and frank discussion between an employee and their Team Leader/Manager. Generally there are two elements: first is the element in which discussion takes place over the strengths and areas which need to be developed as displayed by the job holder over the past 12 months. The performance is of course judged comparing the performance against the core indicators of Job. The second element is concerned with discussing the training needs/inputs activities that are considered to be appropriate to help the jobholder overcome some of development areas discussed in the review and also those activities that are deemed appropriate to build upon their current strengths. Reward System Telenor considers its employees not just as a cost but also as a resource in which the company has invested from which it expects valuable returns. Pay policies and programs are one of the most important human resource tools for encouraging desired employee behaviors. The advantage of paying above the market average is the ability to attract and retain the top talent available, which can translate into highly effective and productive work force. The incentive schemes and incentive objective have been clearly communicated to all individuals and weekly progress report is also communicated to all concerned. Compensation and benefit plans Telenor has a separate department for compensation. That department deals in staffing and compensation planning. First of all this department has all the information regarding who is being employed and how it is performing. What so ever promises are made to the employees, they know that. So its easy for them to design compensation plans because they know every employee which is being hired. Compensation and benefit plans are particularly based on performance. If performance is up to the standards of Telenor and the employee has good conducts he is rewarded. After performance evaluation, results are rechecked and matched with the standards. Based on that, proper compensation plans are designed. Salary policy The company will pay salaries of the employees as follows:
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All new employees have to open bank accounts in specified banks prescribed by the company so that their salary will be credited at the end of each month. After opening account with the bank employees should forward his account number to HR. Upon termination of services the employee will receive his salary within 15 days up to the time of date of his last working day. Upon resignation the employee will be paid his dues during a maximum period of 15 days from the date he left the job MOTIVATION Motivation at Telenor is based on a factor i.e. High performance culture. Telenor describes the working context of the employees by: 1. Guideline (procedures). 2. Targets to be completed within standard quality and time. So every employee is well aware of the values and vision which are contributing towards the core goal of Telenor. In this way considering their targets and guidelines, they are required to execute with high performance. The high performance gives rise to high performance culture. Now Telenor has to maintain this performance culture which is maintained through motivation. MOTIVATING DRIVERS Empowerment For employees to work appropriately there is employee motivation which is employee empowerment. Employees hired at Telenor are empowered enough that they can make decisions of the given project and responsibility. It makes an employee feel as though he or she is important and thus the motivation is elevated. It also makes the employees responsible for their actions because when power is delegated to them they also become accountable for their dealings. Compensation Telenor Pakistan offers the employees with good salary packages and incentives in return of the performance they are providing. The employees are awarded with high quality income in relation with the high quality performance. Compensation is an important

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motivating tool for motivation for some employees at Telenor as it increases the efficiency of the employees. Physical Setup Employees at Telenor are provided with good setup for working. This can be a motivating driver because the hired personnel feel honored when they are provided with better work place. Culture In an organization, the culture plays an important role for the person to show high performance. The culture at Telenor is TOP DOWN, the top employees establishes the tone for the organization. The top level employees take good care while performing any task or action because it will have to be followed by the subordinates. Things are properly informed. Recreational Activities The employees are provided with recreational activities, by sending to hilly stations to be getting fresh and also perform certain work tasks which are to completed in normal routine. They get motivated and work well by having these recreational activities. Promotions Employees are upgraded when their performance meets the standards or beyond, this is also an important motivational driver. CONCLUSION Structure of Telenor is Organic and functional structure. Decision-making is highly centralized and empowerment is not appreciated as much but to some extent. Telenor has adopted formal rules and procedures whereas some of work is done informal between departments. The important success factor for Telenor is differentiation. Because the environment is becoming tougher with each Passing day so to enhance their competitiveness & profitability it is providing excellent service, giving top priority to meeting customer requirements and charge low operating cost from their customer. The employees of the organization are committed to their company and the company is taking care of the need of its employees.
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It has many major competitors which are trying their hard to get the market share, but all the strategies of the competitors are successfully watched and answered. RECOMMENDATIONS 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: Telenor as described in the report has a functional structure with well-defined department. The coordination and communication is enhanced by the cross functional teams. After viewing the functioning of the organization it is recommended that the organization could have a Hybrid Structure, between the characteristics of functional and horizontal structures. Horizontal model offered the best chance to gain a faster, more efficient approach to a customer service. As the organization's structure is highly Functional, and the Environment is currently stable, organization is suited well to the environment. But organization should also focus on the changing trends in the Environment, and make the structure flexible enough for any sudden changes. The organic structure is being used in the Telenor Pakistan but organization is needed to move to Mechanistic structure for the better control of the employees for the better use of rules, policies and procedures. 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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