Telenor

0000112246

Muhammad Sabir Hussain

Hafiz Muhammad Majid
Rashid Latif
Usama Nawaz
Table of Contents
Part 1 3
Acknowledgement 3
Dedication 4
Questionnaire 5

Part 2 6
Introduction Of Telecommunication 6
Telecommunication in Pakistan 6
Company background 7
Telenor in Pakistan 9
Human resource assessment 11

Part 3 13
Definition(why org. needs structure) 13
Work specialization 13
Departmentalization 14
Chain of command 17
Spain of control 18
Centralization & Decentralization 19
Formalization 19
Mechanistic Or Organic structure 20
Strategy 21
Technology21

Part 4 22
Hierarchical Levels 22
Telenor structure view 23
Strategy 24

Part 5 25
Conclusions & Recommendations 25

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Part 1

ACKNOWLEDGEMENT

All the praise is for Allah, the most merciful and beneficent, who blessed us with the knowledge,
gave us the courage and allowed us to accomplish this task. We are especially indebted to all our
teachers for instilling in us enough knowledge to be able to carry ourself efficiently during our
survey report.

Secondly,We are bound to thank Mr.Muhammad Sheeraz who is marketing manager and the
head of telenor franchise new Multan.

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 DEDICATION

We dedicate this report to our parents and friends in recognition of their worth and to our teacher
Sheikh Hameed-ul-ah who is the guiding force for us and it is their effort and hard work that
showed us the path of success and prosperity which would be there for us for the rest of our life.

“Keep your dreams alive. Understand to achieve anything requires

faith and belief in yourself, vision, hard work, determination, and
dedication. Remember all things are possible for those who
believe.” - Merlin Olsen

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 QUESTIONARE

1. How much jobs are specialized in telenor?

2. On what telenor departmentalization based on?
3. Tell briefly about chain of command.
4. How many people are managed by one person (authoritative person)?
5. How much there are rules and regulations for jobs?
6. What do you do when you face new problem?
7. Is there centralization or decentralization in telenor pakistan?
8. What is the strategy of telenor pakistan and is this strategy supported by his
structure?

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Part 2
INTRODUCTION
Central background information

a) What is Telecommunication?

Telecommunication is derived from Greek word “Tele” which means over a distance,
“Communicara” which means the ability to share. Telecommunication literally means “the
sharing of information over a distance”. Telecommunication affects how and where you do
everything lives, work, play, socialize, entertain, serve, study, teach, rest, heal and protect. The
process of transmitting or receiving information over a distance by any electrical or electro –
magnetic medium. Information may take the form of voice, video or data.

b) Telecommunication in Pakistan

Pakistan Telecommunication Authority (PTA):

Pakistan Telecommunication Authority being regulatory body is promoting the telecom sector
since 1997. The Authority is responsible for regulating the establishment, operation and
maintenance of telecommunication system and provision of telecom services in the country.
It promotes and protects the interest of end users of telecommunication services. Pakistan under
World Trade Organization (WTO) commitment is now ready to deregulate the whole of telecom
sector. Deregulation policy is in final stages and will be announced shortly. In the year 2002 –
03, the PTA has stepped forward to encourage the telecom operators and transfer of technology
in Pakistan.
In this regard, royalty of Internet Service Provider (ISP) has been reduced from 4 to 0.66 percent
of the annual gross revenue. For card payphone service and cellular mobile service, it was
reduced from 4 to 2 percent respectively of grass revenue in the year 2001. Similarly with the
launching of prepaid connections by cellular companies, the numbers of mobile phones
subscribers have reached to 2.5 million up to June 2002, showing a growth of 105.8 percent.

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The introduction of new services in terms of technology advancement in the
sector includes broadband Internet services, General Packet Radio Services (GPRS) facility, and
internet connectivity on mobile phone. The PTA has issued 1,278 radio – based licenses and
granted permission to install 291 Spread Spectrum Radio Lines.
For the value added services, Pakistan Telecommunication Authority has issued total 431
licenses including 177 licenses for card payphone services and 121 for electronic information
service. For voice and data network services, 24 and satellite 8, trunk radio services 12, store and
forward fax service 9, video conference 1 and 25 data communication network services license
were issued up – till June 2003.
Telenor acquired the license for providing GSM services in Pakistan in April 2004; the license
terms stipulate that by year 4, Telenor will cover 70% of Pakistan's 297 administrative Tehsil
headquarters. Telenor will fulfill the license requirements and provide superior quality coverage.
Telenor has successfully signed interconnect agreements with all four incumbents during
December 2004, allowing its subscribers to exchange voice and data with subscribers on all
active mobile networks including Paktel, Instaphone, Ufone, Mobilink and Warid telecom.

Company background
a) History of Telenor group:
For over 150 years, telecommunications has played a vital part in the development of modern
Norwegian society. As the incumbent provider, Telenor has been the driving force in the
development of a highly sophisticated home market and is now one of the largest mobile
operators worldwide.
b) The introduction of the telephone:
The years of 1855 to 1920 was a pioneering period in the history of Norwegian
telecommunications. During two generations, the Norwegian society experienced the
introduction of three new means of communications: the telegraph in the years of 1850, the
telephone around 1880 and wireless telegraphy – radiotelegraphy –at the turn of the century. The
spread and use of telecommunication was modest compared to later periods, but as entirely new
features they received a fair amount of attention.

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c) Pioneer in mobile communications:
Telenor is a pioneer in mobile communications. Manual mobile telephony services were
introduced in Norway in 1966, as a forerunner to the automatic NMT system, which appeared in
1981. Its digital successor, GSM, was introduced in 1993, and third generation mobile network,
UMTS, was launched for commercial use in 2004.
d) Norwegian telecom becomes a public corporation:
In 1994, Norwegian Telecom was established as a public corporation. One year later, it changed
its name to Telenor. In December 2000, Telenor was partly privatized and listed on the stock
exchange.
e) International expansion:
Telenor has undergone momentous change as a group – from being a strong, national operator
with significant international holdings to be coming an international, world-class provider of
mobile communications services. Telenor is organized into three business areas; Mobile
operations covering 12 countries, and Fixed-line and Broadcast services covering the Nordic
region.
f) Global opportunities
Telenor is one of the largest mobile operators worldwide with ownership interests in 12 mobile
operators across Europe and Asia, and as a consequence a whole world of job-opportunities is
opening up. Mobile operators and the markets in which Telenor operate are as follows:
 Sonofon, Denmark
 Telenor, Norway
 Telenor Sweden
 Kyivstar, Ukraine
 Pannon, Hungary
 Promonte, Montenegro
 Telenor Serbia
 VimpelCom, Russia
 Telenor Pakistan
 DiGi, Malaysia
 DTAC, Thailand

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 

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Grameenphone, Bangladesh
Telenor in Pakistan:
Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia together
with Thailand, Malaysia and Bangladesh. Telenor Pakistan launched its operations in March
2005. Market share of Telenor is 21% currently.

A) Vision and Values

Telenor Vision
Telenor vision is simple: We're here to help

We exist to help our customers get the full benefit of communications services in their daily
lives. 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. Inspiring people to find new ways.

Core values of Telenor

b)
Largest direct European investment in Pakistan
Telenor as the single largest direct European investment in Pakistan is setting precedence for
further foreign investments in the telecom sector. The company has covered several milestones
over the past twenty eight months and grown in a number of directions, Telenor has grown to

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become a leading telecom operator in the country. In fiscal year 2006, it achieved
nearly 200% growth in their subscriber base – the highest in the industry by a wide margin.

c) Highest (ARPU) in the market

Since its launch of services in March 2005, Telenor Pakistan has exceeded all expectations: It
has created the second largest mobile network and the largest and most advanced data network in
the local market, turned into the second highest revenue-
-generating mobile player with the highest Average Revenue per User (ARPU) in the market,
and become the second largest mobile player in the market with 18 million active subscriptions
in little more than 3 years of operations. During the first half of 2008, Telenor Pakistan added
3.24 million subscriptions against the industry average of
1.63 million, taking 33% of the market share of net additions over the period – the highest in the
mobile sector in Pakistan.
d) Infrastructure expansion
Telenor is keeping ahead by investing heavily in infrastructure expansion. With USD1 billion
already invested, Telenor has extended agreements with their vendors for network expansion and
services until 2009. The agreements, with a potential to result in
USD750 million worth of orders from Telenor Pakistan, are some of the biggest of their kind in
the industry.
e) Employment opportunities
The company has created 2500 direct and more than 25000 indirect employment opportunities
with 100,000+ retail outlets and 200+ franchises in addition. 99.9% of these employment
opportunities belong to Pakistanis.
f) Social and corporate responsibility
Initiated with a relief effort worth 95 million rupees in the wake of the devastating earthquake of
October 2005, Telenor Pakistan’s community contributions have extended over the years to
include education, empowerment, enterprise, and environment – with special focus on bringing
the telecom promise within the grasp of the most disadvantaged sections of the society. In
Pakistan the company came out with the first-ever Corporate Responsibility report in the mobile
industry last year, setting new standards of transparency and responsibility. Telenor Pakistan is

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well-recognized by the development sector in Pakistan for the amount of Foreign
Direct Investment it has brought to the country.
g) Achievements:
Telenor Pakistan has received several awards for its solid performance in key areas of activities:
 Federation of Pakistan Chambers of Commerce & Industry’s Telecom Excellence Award
in Foreign Direct Investment
In June 2006
 SAARC Communication Industry Conference 2007’s Most Innovative Mobile Operator
Award and Mobile Operator with the
Most Consumer Pull Award
 All Pakistan Dawn Aurora Advertising Awards in three of five nominated categories in
March 2007
 The National Forum for Environment & Health’s Annual Environment Excellence
Awards 2008
Lahore Chamber of Commerce & Industries’ Appreciation Award for the Largest FDI and
Rawalpindi Chamber of Commerce & Industries’ Achievement Award 2008
 The Helpline Trust’s 2nd Corporate Social Responsibility Award 2008
h) Future Projects:
Telenor Pakistan is committed to bringing true mobile innovation to the under-served masses of
Pakistan. The company has picked up two Universal Service Fund projects in order to provide
connectivity to the yet unconnected in the remotest areas of Pakistan. It aims to invest strongly
for further network expansion into the rural areas and for the rollout of third generation of
mobile technology (3G) in Pakistan.
Human Resource Assessment

The company has created 2500 direct and more than 25000 indirect employment opportunities
with 100,000+ retail outlets and 200+ franchises in addition. 99.9% of these employment
opportunities belong to Pakistanis.
Telenor offers exciting and challenging careers with competitive pay, excellent benefits and
exceptional advancement opportunities. Telenor care about its employees and provide them with
a relaxed and enriching working environment. Telenor training and further education programs

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ensure a high professional standard amongst its employees. Telenor believe that
a talented and loyal workforce plays a crucial role in the organization’s ongoing business
success.
Equal opportunities for all
Telenor maintains a policy of non-discrimination towards all employees and applicants for
employment. All aspects of employment with Telenor are governed by merit, competence,
suitability and qualifications, and are not be influenced in any manner by gender, age, race,
color, religion, national origin or disability. Today, Telenor workforce proves that; with 18%
women working at all levels in the organization, both foreign and local educational backgrounds.
Focus on management development
Telenor management and organization is imbued with joint values. The Group Management has
devised five leadership requirements that apply to all managers in the Group, and all
management groups shall discuss what these requirements mean to them. The demands are:
 Passion for business
 Change and constant renewal
 Operational excellence
 Empower people
 Integrity
All managers are subject to annual evaluations based on these management criteria.
HC at Telenor Pakistan:
Human Capital Division at Telenor believes in continuous improvement and is taking the
standards of service to the utmost levels of excellence. From providing the best administrative
support to facilitate employees work life to creating benchmark security solutions, Telenor is a
team of enthusiastic, energetic young people who are geared to perform the best always. Telenor
managed to create a culture of passion for business, operational excellence and constant renewal
and committed to assisting employees in exploring, developing and maximizing their full
potential, encouraging continuing education through internal and external training and
development opportunities.

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 Part 3
22222
DEFINITION:

How job tasks are divided, grouped and coordinated.

WHY ORGANIZATION NEEDS STRUCTURE

Organisational structure describes:

Who is responsible for what

Patterns of communication and knowledge exchange

Skills required to move up the organisation

From whom they can take help for their problems

Structure tells how to address with company’s issues and problems.

It tells what behaviours should be and are accepted.

It defines norms and roles.

1. WORK SPECIALIZATION
The degree to which tasks in an organization are subdivided into separate jobs.
Division of labor

Makes efficient use of employee skills

Increases employee skills through repetition

Less between-job downtime increases productivity

Specialized training is more efficient

Allows use of specialized equipment

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 Can create greater economies and efficiencies – but not always…

Specialization can reach a point of diminishing returns

Then job enlargement (increasing the scope of a job through extending the range of its
job duties and responsibilities generally with in the same level and periphery.), job
enrichment (Vertical loading' of a job) and job rotation ( assigns trainees to various jobs
and departments over a period of a few years) gives greater efficiencies than does
specialization.

2. DEPARTMENTALIZATION

The basis by which jobs are grouped together.

Basis by:

FUNCTIONAL:

Grouping jobs by functions performed

PRODUCT:

Grouping jobs by product line

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 GEOGRAPHICAL:

Grouping jobs on the basis of territory or geography

PROCESS:

Grouping jobs on the basis of product or customer flow

CUSTOMER:

Grouping jobs by type of customer and needs

BY GEOGRAPHICAL AND FUNCTIONAL

Geographic Pros & Cons Functional Pros & Cons

+ More effective and efficient

handling of specific regional issues + Efficiencies from putting
that arise together similar specialties and
+ Serve needs of unique geographic people with common skills,
markets better knowledge, and orientations
- Duplication of functions + Coordination with functional
- Can feel isolated from other areas
organizational areas + In depth specialization

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BY PRODUCT

PROS & CONS

+ Allows specialization in particular products and services

+ Managers can become experts in their industry
+ Closer to customers
– Duplication of functions (loss of economies of scale stemming from the duplication of various
departments within operating units.)
-- Cost will be high
– Limited view of organizational goals

BY CUSTOMERS

PROS & CONS

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 + Customers’ needs and problems can be met by specialist
- duplication of functions
- Limited view of organizational goals

CHAIN OF COMMAND (COM)

Com is the line of authority extending from upper organizational levels to lower levels, which
clarifies who reports to whom.

1. AUTHORITY

Authority refers to the rights inherent in a managerial position to tell people what to do and to
expect them to do it.

2. RESPONSIBILITY

As managers assign work to employees, those employees assume an obligation to perform any
assigned duties.

3. UNITY OF COMMAND(UOC)

Uoc states that a person should report to only one person

SPAN OF CONTROL

The number of employees a manager can efficiently and effectively manage.

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ADVANTAGES OF WIDE AND NARROW SPAN OF CONTROL

Wider span of control

There are less layers of management to pass a message through, so the message reaches
more employees faster

It costs less money to run a wider span of control because a business does not need to
employ as many managers

Narrow span of control

A narrow span of control allows a manager to communicate quickly with the employees
under them and control them more easily

Feedback of ideas from the workers will be more effective

Less management skill required

FACTORS INFLUENCING SPAN OF CONTROL

Managerial abilities

Competence of subordinates

Nature of work

Delegation of authority

Degree of decentralization

CENTRALIZATION & DECENTRALIZATION

CENTRALIZATION

Decision making is done at top level

Employees are not capable to take decisions
Uniformity in action
Personal leadership
No loyalty

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 Remote control
Delay in work

DECENTRALIZATION

Decision making flow is downward

Employees are capable
Concentrate on strategy on higher level decision making, and coordinating
activities
Vital experience in making decisions

FORMALIZATION

How standardized an organization’s jobs are and the extent to which employee behavior
is guided by rules and procedures.

it makes employee behavior more predictable

reduces ambiguity and provides direction to employees
reduced innovativeness
reduced motivation and job satisfaction

MECHANISTIC OR ORGANIC STRUCTURE

Work specialization

Departmentalization

Span of control

Chain of command

Centralization & decentralization

Formalization

MECHANISTIC

High work specialization

High departmentalization

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 Narrow span of control

High level of centralization

High level of complexity

High level of formalization

ORGANIC

Low work specialization

High departmentalization

high span of control

Low level of centralization

Low level of complexity

Low level of formalization

STRATEGY

1. Innovation strategy:
A strategy that emphasizes the introduction of major new products and services.

For innovative strategy there should be organic structure in the organization.

2. Cost minimization strategy:

A strategy that emphasizes tight cost controls avoidance of unnecessary
innovation or marketing expenses, and price cutting.

For cost minimization there should be a mechanistic structure.

3. Imitation strategy :
A strategy that seeks to move into new products or new markets only after their
viability has already been proven.

For imitation strategy we may have mechanistic or organic.

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 TECHNOLOGY:

It refers to how an organization transfers its inputs into outputs.

CLASSIFICATION OF TECHNOLOGY

1. Long linked technology:

In this, tasks are broken into a number of sequential and interdependent steps, where the
outputs of one unit become the input of the next. (E.g. Assembly line) this facilitates to
have high volume of output and efficiency. This technology calls for mechanistic
structures with high levels of specialization, standardization and formalization.

2. Mediating technology:

This links different parties who need to be brought together in a direct or indirect way
(e.g. Banks – use mediating technology to lend money to borrowers by taking money
from depositors).

3. Intensive technology:

It is used when a group of specialists are brought together to solve complex problems
using a variety of technologies (e.g. Hospital – parties are treated with the help of experts

drawn from different fields of specialization). Coordination of the different activities is

achieved in the system primarily through mutual adjustment among those engaged in
solving the problem in the different units. Organic structures would fit in this system
using intensive technology.

Part 4

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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.

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 country level or
global level, depending on the nature of the proposal). Employees are then rewarded financially
for their helpful contributions.

Telenor Structure View:

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 1) Work Specialization:

Telenor Pakistan is based upon both specialist people and multi skill people. It varies
department to department. Some departments of Telenor require specialized skills and
some not. Like the IT department requires specialized person but Customer Relation
department doesn’t necessary require a specialized person.

i) Both specialist people and multi skill people require at Telenor Pakistan.
ii) If specialist person have some extra skills he will preferable given job at Telenor
Pakistan.
2) Departmentalization:

Telenor Pakistan has several departments.

I. Commercial Division
II. Customer Service Division
III. Financial Division
IV. Corporate affairs
V. Financial service

Telenor Pakistan has functional departments.

3) Chain of Command:

It has clear chain of command.

4) Span of Control:

It also varies department to department. Like HRM and Finance has narrow spans of
control but Marketing and customer relationship department has wider span of control.

5) Centralization & Decentralization:

Centralization is there but you can say to some extent there is decentralization. As
employees are encouraged to give ideas but actions on these ideas require the agreement
of top level management that see the feasibility of the idea.
6) Standardization:

Rules and procedures are present to control the behavior of employees and to facilitate
smooth working of the organization but as new problem arises he discusses with his
manager.

From above talk we see that Telenor has mechanistic structure.

Strategy and Structure of Telenor Pakistan:

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 As we see the values and vision of Telenor we come to know that Telenor
has differentiation strategy (Competitive advantage). Telenor wants to make an image in the
mind of customers.

Now we see that Telenor is getting what he wants and his strategy is supported by his
structure. As you can see following annual cellular subscribers table note that Telenor

Pakistan came late in market but his annual subscribers are greater than other cellular
companies.

Part 5
Conclusion:

Structure of Telenor Pakistan is Mechanistic and functional.

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 Decision-making is highly centralized and empowerment is not
appreciated as much but to some extent.
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.
Recommendations:

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.
Introduction of employees stock options would further enhance the motivation
level because then the employees too would have a stake in the organization.
As Pakistan environment is changed rapidly so it should have flexible structure.
As Telenor is making an image in the mind of customers it should have organic
structure.

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