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This report reviews the Human Resource Management (HRM) of Telenor, the second largest telecom company in Pakistan. We give a brief history of the company and tell about the corporate human resource of Telenor primarily in Pakistan. It put light on the culturally compatible HR strategies of the organization around the globe. Telenor is a multinational company that has set up its operations in Europe and Asia. This report puts light on the specific Hr strategies, policies and practices of Telenor.
Human Resource Management - Telenor
Telenor Group Telenor ASA is an international provider of high quality telecommunications, data and media communication services. It ranks as world’s 7th largest mobile operator with a total of 164 million subscribers in its mobile operations. Telenor 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 as the single largest direct European investment in Pakistan, setting precedence for further foreign investments in the telecom sector. The company has crossed many milestones and grown in a number of directions, making Telenor Pakistan a leading telecom operator of the country. Telenor is the fastest growing mobile network in the country, with coverage reaching deep into many of the remotest areas of Pakistan. In the most difficult terrains of the country, from the hilly northern areas to the sprawling deserts in the south, at times Telenor is the only operator connecting the previously unconnected. It is keeping ahead by investing heavily in infrastructure expansion. With USD2 billion already invested, it has extended agreements with its 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. Telenor is spread across Pakistan, creating 2,500 direct and 25,000-plus indirect employment opportunities. It has a network of 23 companyowned sales and service centers, more than 200 franchisees and some 100,000 retail outlets.
Telenor Satellite Broadcasting Denmark Sonofon is the second largest mobile operator in Denmark Services: Companies: Broadband. Canal Digital Finland Companies: Canal Digital is Finland’s leading television distributor Services: Broadband. Mobile. Canal Digital Companies: Sweden Telenor is the third largest mobile operator in Sweden Services: Broadband. Mobile. Glocalnet. TV Telenor Norway. Conax. Telephone. TV Telenor Sweden. Bredbandsbolaget. CBB.Telenor GLOBAL PRESENCE Europe Norway Telenor’s wholly owned Norwegian mobile operation is the country’s leading telecommunications operator Services: Broadband. TV Canal Digital 3 Companies: . Cybercity. Canal Digital. Mobile. TV Sonofon. Norkring. Telephone.Human Resource Management .
Telenor Hungary Pannon is the second largest mobile operator in Hungary Services: Broadband.Human Resource Management . Mobile Telenor Serbia Companies: Ukraine Kyivstar is the largest mobile operator in Ukraine Services: Mobile Kyivstar Companies: Russia VimpelCom is the second largest mobile operator in Russia Services: Mobile VimpelCom Companies: Asia 4 . Mobile Pannon Companies: Montenegro Promonte has more than 450 000 mobile subscriptions in Montenegro Services: Mobile Promonte Companies: Serbia Telenor is the second largest mobile operator in Serbia Services: Broadband.
Human Resource Management .Telenor Pakistan Telenor is the second largest mobile operator in Pakistan Services: Mobile Telenor Pakistan Companies: Bangladesh Grameenphone is the largest mobile provider in Bangladesh Services: Mobile Grameenphone Companies: Thailand dtac is the second largest mobile operator in Thailand Services: Mobile dtac Companies: Malaysia DiGi is the fastest growing mobile operator in Malaysia Services: Mobile DiGi Companies: 5 .
Everything we produce should look good. We strive to bring energy to the things we do. in general the whole setup is centralized. or if it doesn't. But at the department level the structure is decentralized. We don't complicate things. CORE VALUES OF TELENOR Make it Easy We are practical. Because we never forget we're trying to make customers' lives easier. all the matters are to be reported to the main company and all the policies and targets are approved at the higher level. Everything we produce should be easy to understand and use. we're here to help. STRUCTURE OF THE ORGANIZATION In TELENOR the hierarchy is very lean. We are passionate about our business and customers. actions not words. Be Respectful We acknowledge and respect local cultures. We're about delivery. We believe loyalty has to be earned. not over promising. Keep Promises Everything we set out to do should work. We want to be a part of local communities wherever we operate.Telenor VISION OF TELENOR Telenor’s vision is simple: “We're here to help” It exists to help its customers get the full benefit of communications services in their daily lives. modern and fresh. Be Inspiring We are creative. We do not impose one formula worldwide. 6 .Human Resource Management .
Customer Services Department o Customer services operations o Customer services system 3. Commercial Department o Marketing o Direct sales o Indirect sales 4. Human resources 7.Telenor ► TELENOR has following functional departments:- 1.Human Resource Management . Administration 8. Technical Department o Switching o Operations / operation support o Logistics o Infrastructure o Systems planning 5. Information Technology Department o Billing o IT 6. Finance Department o Credit and collection o Revenue assurance 2. Internal audit department 7 .
Human Resource Management . Nayab Baig CULTURE “Culture is the customs and civilization of a particular people or group” CULTURAL COMPATIBILITY “It is the capability of different cultures to live together harmoniously.Telenor ►Current CEO (Chief Executive Officer) of TELENOR is John Eddy Abdullah HUMAN RESOURCE DEPARTMENT HR department of Telenor is in Islamabad head office where it controls and handles all the HR activities of Telenor. ►Human Resource department’s hierarchy is as follows:VICE PRESIDENT DIRECTOR EXECUTIVE MANAGER ASSISTANT MANAGER INTERNEES Current VC (Vice President) HUMAN RESOURCE of TELENOR is Ms.” 8 .
strategic management) while sales are dispersed using agency agreements. whose failure rate has been estimated as low as six percent (Tung 1988). accommodating. Those organizations who effectively pursue culturally compatible HR strategies actually achieve success in long-run. The new transnational environment requires a plethora of individuals who can work internationally – who are ultimately flexible. ORGANIZATIONAL STRUCTURES FOR GLOBAL BUSINESS There are 4 main organizational structures for global business: 1) Domestic exporter .heavy centralized activities in one country (financing. work styles. A globalizing organization thus has to make its home culture compatible with the local culture in order to survive in the local market. sales. and subsidiaries that are reliant on the home company.Human Resource Management . demands and perceptions of the local human resource. therefore they adjust the HR policies regarding the pay scales. it faces a totally different culture of that particular location. marketing.e. Caterpillar Corp. It appears that some countries or cultures are more effective at producing successful global professionals than other countries. human resources. and adaptable to different cultures and varying ways of doing things. Studies on the success or failure of individuals in an international setting have indicated that American expatriates experience a failure rate of 30 to 40 percent as compared to many Europeans and Japanese. skills required and evaluation for sales personnel only. This local culture is their in the attitudes. 9 . i. HR STRATEGY: Domestic exporters just have to rely on the sales staff of local area.Telenor When an organization goes global and sets up its operations in some other country.
and optimize supply and demand constraints locally.product is created. sales and marketing operations are in other countries. i.Telenor 2) Multinational firm . there is a heavy reliance on foreign personnel for production. 3) Franchisers . Ford 10 .have no national home base. and human resources. designed and financed in home country. However franchises may carry out specific HR plans as per the local cultural adjustments but within a restricted provision of base. General Motors etc HR STRATEGY: Multinational firms have to set their HR strategies for the employees of all departments according to the culture of respective firms.Human Resource Management . KFC HR STRATEGY: Franchisers are just like multinational firms with the only difference that multinationals create the whole separate set up for all national campuses while the franchisers follow the strict policies and strategies of HR being pre-set by the home base. while production.control and management of finances out of central home base. but dispersed power and financial power to the divisions. Citicorp.e. financial firms. central core for decision making. but for product-specific reasons. have several regional home bases. Products are made to fit local markets i.e. Here the budget of the firms is being set in home base while the pay scales as well as incentive plans & benefits are the core discretions of national firms. 4) Transnational firms . marketing. Sony. McDonald's. i.e.
they just opt for that. Such strategies follow the cultural adjustments in the best interest of company. 11 . Which is there right. Such HR strategies are fully coated with local cultural essence that gives the firm a new home environment.Telenor HR STRATEGY: Transnational firms retain the freedom of decision-making in determining its own HR strategies. When they entered into the market they used to have strategy regarding this matter. They do consider the people from inside but proper succession planning is not practiced in Telenor these days. however Telenor is aware of this fact and that’s why they do not have any formal strategy for succession planning. Planning Recruitment Selection Training & Development Compensation Performance Appraisal System Occupational Health and Safety measures Career Planning and Development Planning: After the emergence of new telecom companies. HR Practices at Telenor: These are few of the HR practices that I have learned from my resource person.Human Resource Management . Whenever they get any opportunity better than the existing job. market has become much more competitive and employees are less loyal to the company.
12 . At the manager and director level.Human Resource Management . the activity to fill a vacancy or a new job starts with the requirement communicated by the respective managers to the HR department. Recruitment and Selection: In TELENOR. External Recruitment: For external recruitment in TELENOR. Business Support Officers and Workers. Internal Recruitment: In TELENOR. internal recruitment is done for the managers of the higher grade and directors. When a position is vacant. They do develop employees for there career planning but no formal succession planning is practiced.Telenor But now due to market trends they have transformed there new strategies. the internal recruitment process is mostly carried out but when managerial position is vacant and a suitable person is not available for the desired post from with in the organization then external recruitment is carried out. According to the management it’s not useful to invest a lot in the employee at a larger extent. The HR department then looks for the possibilities of internal and external recruitment. the line managers are required to make a requisition form for the job in which they have to mention their need taking in account the budget for establishment and salaries for the position of Management. the HR department views the past performance of the people working at lower levels than the vacant position and chooses the right person who is promoted to that position.
the line and the HR managers again work together to shortlist the applications. The following management competencies are assessed by a panel of cross functional assessors In the case of management selection: • Communication skills • Resource management • Rational decision making 13 . After a substantial amount of applications have been received. After the preliminary interview is cleared people applying for different jobs are tested in different ways. This is done by carefully going through all the application and by giving different weightage to the following criteria: • Quality of early schooling • Grade obtained • Extra Curricular activities • Overseas travel and education • Age • Target University • Relevant experience The HR Department then issue call letters to the short listed candidates along with blank application forms by Date. time and venue for the preliminary interview is advised and candidates are asked to bring along completed application forms. A two-member panel of HR and line management carries out competency-based interviews focusing on functional skills and managerial and supervisory skills.Human Resource Management . The sources that TELENOR uses to attract applicants are: • Inviting applications through advertisement • Recommendations from the head hunters • Applications obtained from the data bank of TELENOR where direct applications are received from time to time.Telenor After approval from the HR director the HR manager and the line manager work hand in hand to prepare job and person specifications for advertising or giving to the head hunters.
Telenor • Influencing • Creative thinking • Business development The HR department is responsible for overall administration of the assessment centre including training of the assessors. At TELENOR. there is a continuous assessment of the technical and managerial skills. Training: Training is a planned effort by a company to facilitate employees learning of job-related competencies. The HR department also prepares appointment letter. . As other departments are well established and operational for there matters. skills or behaviors that are critical for the successful job performance. When the employee is hired he get proper orientation and that orientation may exceed to few months until he get the feeling of affiliation and get to know the organization well.Human Resource Management . Orientation and induction is required for employee familiarization with the organization and Telenor is well aware of this fact. Orientation: Telenor has a very well organized and well established HR department that practices all the HR strategies which are beneficial for the organization. For the further enhancement of these skills formal 14 . Affiliation with organization is only possible if the employees are informed about each and everything. The HR department provides details of remuneration package and terms and conditions of service. HR department is empowered to develop and plan what so ever is required for the company. service agreement and finalizes other documentation for service record. These competencies include knowledge.
apply them on job and share this information with other employees.Telenor training programmes offered at all levels.Human Resource Management . The employees are provided with opportunities to put these skills into practice. Training Methods • On Job Training • Special Training Sessions • Team Building • Problem Based • Refresher Course Performance Appraisal: Reviewing performance and taking positive steps to develop employees further is a key function of management and is a major component in 15 . The employee are trained periodically either locally or abroad according to preplanned schedules. Employees are expected to acquire new skills and knowledge. in preparation for the move to a managerial role. If an employee attends an overseas training then he/she has to serve the company for a certain period after the date of completion of training subject to the cost and duration of training itself. The objective of such training is to upgrade the capabilities of employees. In case an employee leaves the company during this period he/she will have to pay the amount specified at that point in time. The training is cross-functional for sharing of skills. Training is viewed at TELENOR as a way of creating intellectual capital.
Objectives of Performance Appraisals To measure the work performance • To motivate and assist employees in improving their performance • And achieving there professional goals To identify employees with high potentials for advancements • To identify employees training and development needs • To provide a solid path for career planning for each individual Appraisal Policy: The intent of these appraisals is to review current job performance and responsibilities. Performance Review: At TELENOR a review is intended to be an open and frank discussion between an employee and their Team Leader/Manager.Telenor ensuring the success of the company through effective employee performance.Human Resource Management . 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. A review is about ensuring people know what levels of performance are expected of them and then taking action to ensure they are trained and developed to perform effectively. The second element is concerned with discussing the training needs/inputs activities that are considered to be appropriate to help the 16 . set goals and discuss further opportunities with reference to past performance at Telenor.
and other characteristics. CAREER PLANNING & DEVELOPMENT: Telenor faces much competition in the telecom industry so now they are focusing on career Management of their employees in which they enable the employees to better understand and develop their career skills and interests and to use these skills and interests most effectively both within the company and after they leave the firm. interests knowledge. establishment. Career development is the lifelong series of activities (such as workshops) that contributes to a person career exploration. motivation.Human Resource Management . identifies career related goals and establishes action plans to attain specific goals. and success ad fulfillment. Importance of Career planning in today’s competitive world is as important as any other HR function. Career planning is the deliberate process through which someone becomes aware of personal skills. Telenor gives promotion to their employees on the performance basis.Telenor jobholder overcome some of development areas discussed in the review and also those activities that are deemed appropriate to build upon their current strengths. Retaining your valuable Human resource today is one of the biggest challenges that organizations are 17 . The Telenor HR department develops the employee’s career development plans in which the HR department predicts the next logical step for their employees within five years. acquires information about other opportunities and choices.
One point of policy is found along with the compensation other with the recruitment. Promotion Policies The new company structure is in five layers. at Telenor this function is not fully performed or we should say this function is not performed satisfactorily. all the employees were reluctant to talk about this during our interview. HR needs to come up with new strategies.Human Resource Management . what we analyzed is that career development is practiced but not that openly. Specially. specialists. This function actually makes employees feel that they are important to the organization and Telenor wants them to be at the top in their careers.Telenor facing. If such is a case then organization has discipline policies for that even. managers. directors and chief officers------in that order starting from the bottom and working towards the top rung of the ladder. 18 . Career planning and development is one of the basic tool and strategy organizations are using for retaining their employees. There should have been separate head for these policies. comprising associates. in case if some employee is considering of joining the competitor’s firm. However. As far as the practices are concerned. However. There are some policies on these but those are not recognized that well. So.
So it’s easy for them to design compensation plans because they know every employee which is being hired. First of all this department has all the information regarding who is being employed and how it is performing. That department deals in staffing and compensation planning. employees who may not get a chance of promotion due to the non availability of an existing slot. What so ever promises are made to the employees. it would be mandatory for the employees to spend the following maximum period at each level before a promotion to the next level depending upon availability of a slot However. Compensation and benefit plans are particularly based on performance. The incentive schemes and incentive objective have been clearly communicated to all individuals and weekly progress report is also communicated to all concerned. Pay policies and programs are one of the most important human resource tools for encouraging desired employee behaviors.Human Resource Management . If performance is up to the standards of Telenor and the employee has good conducts he is rewarded. they know that.Telenor Until approved otherwise. will be compensated by being “moved over” with in the new salary range specified by the company 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. which can translate into highly effective and productive work force. Compensation and benefit plans: Telenor has a separate department for compensation. After performance 19 . The advantage of paying above the market average is the ability to attract and retain the top talent available.
o Upon resignation the employee will be paid his dues during a maximum period of 15 days from the date he left the job. o Upon termination of services the employee will receive his salary within 15 days up to the time of date of his last working day. Reward Categories at Telenor 20 . The manager of respective departments recommends a candidate from his section for the reward purpose to HR. Based on that. o After opening account with the bank employees should forward his account number to HR.Telenor evaluation. In TELENOR promotions are based on the merit and seniority (experience) basis.Human Resource Management . proper compensation plans are designed. The one who performs well consistently over time gets reward in the form of promotion. Promotions Promotions are also reward management technique to motivate employees. Salary policy The company will pay salaries of the employees as fallows o 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. In Telenor the reward system is based on the individual performance and individual employee performance is judged for the reward. results are rechecked and matched with the standards. Bonuses The employee may receive 1 to 3 month bonus subject to evaluation of accomplished objectives.
They are not allowed to make the service men work in their service There are no cabins in any Telenor centre. It is in coincidence with the practice of Late Mughal King Jahangir who used to listen to the petitions of his sub ordinates whoever has any complaint. All the employees selfserve themselves. Here the manager shakes hand with the mop. It is for the purpose that any one who feels himself satisfied with Telenor can ring the bell.Telenor Intrinsic and Extrinsic rewards include: Exceptional performance in a project Targets achievements Special assignments Medical care Life insurance Vacations Relocation Credit advance policy provident policy/advance against provident fund Education assistance policy Mobile phone Life insurance Medical entitlement GENERAL SET-UP There is a lot of respect given to all employees. CONFLICT RESOLUTION 21 . There is a central lobby where the front desk men to the Regional Officer (RO) all sit together.Human Resource Management . As a cultural symbol Pakistani Telenor offices have placed a big bell with a string on the main door of offices.
And when even hiring the HR staff of that very country. CHALLENGES Telenor face many challenges with the ever growing need of competent Human Resource. It may be due to the reason that it has divided itself in just two markets: Europe & Asia. We believe that managing a competitive and culturally compatible HR in a competitive global market is a tough job. CONCLUSION By keenly analyzing the Human resource Management of Telenor. Although it is not promoting the “cultural identity” agenda that aggressively but even then it is facing much less cultural conflicts among its HR. The European market almost holds the same culture and three of its Asian market countries are Islamic. its HR had no impact due to this controversy. the organization is exposed to many challenges to make them perform at their best. RECOMMENDATIONS To establish core competence and to bring competitiveness. We came through very unusual facts about managing any company’s HR. They have to adjust culturally to the environment of respective countries. It is really hard to hire and retain the best people especially around the globe. It was a great achievement of Telenor that it got in the shape of loyalty and concern of its HR towards Telenor. we the group members agree that Telenor is carrying out satisfactory culturally compatible strategies for its HR.Human Resource Management . Not a single employee felt against Telenor. 22 . The global companies face many challenges regarding the cultural identity of respective nations.Telenor Referring to the Denmark issue created in Pakistan against Telenor. And Telenor is so far quite successful in hiring and retaining exceptionally talented HR worldwide.
behaviors and other Characteristics that an individual needs to perform work roles or Occupational functions successfully. Developing skills in performance Management is wise investments that will help Telenor achieve its Goals. Competencies are observable. which we Personally feel can be useful for the organization. Performance management Competencies that all supervisors (and team leaders) at Telenor Should develop and demonstrate include: Establishing and maintaining effective communications with each Employee not only requires good oral and written communications Skills. its employees and the customers. measurable Patterns of skills.Telenor Telenor should implement numerous effective plans to improve the performance of its various departments. Following are some recommendations for Telenor. knowledge. abilities.Human Resource Management . Managing employee performance includes: • • • • • Planning work and setting expectations Monitoring and measuring performance Developing the capacity to perform Periodically rating performance in a summary fashion Recognizing and rewarding good performance Practicing good performance management requires proficiency in certain competencies. Supervisors must manage employee performance well in order for Telenor to accomplish its mission and achieve its goals. Effective Performance Management Performance management is one of the most important parts of a Supervisor’s or team leader’s job. but it also includes the ability to establish good working 23 .
and suggest improvements to employees regarding their performance. supervisors need to be able to clarify expectations and to set realistic standards and targets. provides the information that supervisors and employees need in order to monitor performance.Human Resource Management . Knowing how to set goals effectively is an important part of Performance management. We wish a very best of luck to TELENOR. enlighten. Measuring employee accomplishments. Credible measures of performance that employees understand and accept are critical for achieving high level performance.Telenor Relationships. Feedback should inform. work does not progress as desired. May it progress and achieve its desired goals. To communicate effectively with employees. employees strive to accomplish those goals and feel confident in achieving them. (AMEEN) 24 . Supervisors should describe specific work related behavior or results they observe as close to the event as possible. using both qualitative and quantitative measures. the sharing of ideas. To do this well. Setting long and short-term goals with employees gives focus to Employee efforts. When goal setting is done poorly. When goal setting is done correctly. and employee involvement in decision making processes. Supervisors must establish an environment that promotes an open Door atmosphere.
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