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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.

They are 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 we are the
only operator connecting the previously unconnected.

They are keeping ahead by investing heavily in infrastructure expansion. With USD2
billion already invested, they have extended agreements with our 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.

They are spread across Pakistan, creating 2,500 direct and 25,000-plus indirect
employment opportunities. They have a network of 23 company-owned sales and service
centers, more than 200 franchisees and some
100,000 retail outlets.

Telenor ASA is an international provider of high


quality telecommunications, data and media
communication services. It ranks as world’s 6th
largest mobile operator above 170 million
subscribers in its mobile operations. Telenor
Pakistan is 100% owned by Telenor ASA and adds
on to its operations in Asia together with
Thailand, Malaysia and Bangladesh.

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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.

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”

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PRODUCTS & SERVICES

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Products:
Telenor provide products of two types

Prepaid

Postpaid

Prepaid packages are

Dejuice

Talkshawk

Postpaid offers are

Persona individual

Persona karobar

Services:
The Telenor Group provides a wide range of innovative services that are available
throughout the world. Here is a selection.

Mobile Fun

Following are the mobile fun service of Telenor.

Mobile Sports

And he scores!!! You just got a text message alerting you


about a sportive highlight. Luckily you don’t have to wait until you
get home to watch that winning moment – you can watch it
directly on your mobile.

Mobile Music

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Right now there are 1 million songs ready to download to your mobile. You can share
these digital rights management-free songs with your friends and family or transfer them
to your mobile phone, mp3 player and PC. Share that funky music!

Mobile TV

Keep your favorite TV shows available in your pocket and watch


them anytime, anywhere. You can easily access live TV channels on
the move so you don’t have to miss out on any of the action. Keep
yourself updated on news, sports, entertainment and more, directly
on your own mobile phone.

Mobile Communities

Get out and about, and stay connected and in touch with your
friends. With Telenor you can access communities such as
Windows Live MSN and Facebook on your mobile and keep your
friends close anytime, anywhere.

Mobile Interaction

Following are mobile interaction services providing by Telenor.

Community Information Centers

500 Community Information Centers (CICs) offer high speed


Internet access to rural areas in Bangladesh, where the nearest
Internet facilities would otherwise be at least 20-30 miles away. The
service was set up by Telenor's Bangladeshi mobile operator
Grameenphone.

Health Line

Health Line provides 24/7 access to medical services for mobile users
in remote areas, several miles from the nearest doctor. All
Grameenphone subscribers in Bangladesh can get medical assistance
directly over the phone.

ApnaPCO - Share a Mobile

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Can you imagine life without a phone – at all? That is the case for many people living in
some of the most rural communities in Pakistan. ApnaPCO is a business-in-a-box
solution, which allows people in remote areas to share a mobile phone where there are no
other alternatives – making life a little easier. 

TeleDoctors

Are you a Telenor Pakistan subscriber and in need of expert medical


advice? Simply dial 1911 to get in touch with experienced doctors who
can help you with your problems – wherever you are in the country.

Mobile in Flight

By using AeroMobile secure mobile communication technology you


can now call your colleagues, customers, friends and family whilst
in flight from your own mobile phone.

Mobile at Sea

Most people have experienced little or no connectivity at sea. 


Maritime Communications Partner enables mobile phone
coverage by installing and operating the ship borne radio
networks, linking the vessels with public networks via satellite.

Mobile Marketing

Register your phone number with your favorite shops and services,
and receive sms’s with up to the minute information on the latest
events and offers. Don’t get first in line, avoid the queue altogether!

Child Internet Protection

The Security Shield technology offered by Telenor protects


children from accessing sites that have not previously been
approved or from coming into contact with unsuitable people on
the Internet. Children have their own login with a protected
desktop controlled by parents.

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Child Sexual Abuse Filter

In areas with limited access to regular banking services and the Internet, people can use
their mobile phones to transfer money – anywhere, anytime. The easy accessibility of the
service will bring new opportunities to DiGi subscribers with insufficient access to regular
banking services.

Mobile Commerce

Mobile commerce services of Telenor are as follow:

Easy Paisa

Easy paisa is a unique service offered by telenor.by easy paisa you can
send your mony nationwide to your lovedones.you can send your
money by easy paisa either you are a telenor customer or not.i.e this
service is for all the only requirment is that you shoud have a valid
nation id card.

CellBazaar - Marketplace in Your Pocket

Using CellBazaar, buyers and sellers in Pakistan can trade basic


goods from their mobile phones, bringing the benefits of
information exchange, community networking and one-to-many
trading to a previously unwired rural population.

BillPay - Pay by Phone

BillPay is an innovative service, the first of its kind in Pakistan. It


provides an electronic bill payment service for utilities services and
for other companies. Customers can pay their utility bills and other
bills through this service regardless of whether they own a mobile
connection or not.

Research-products in near future


Working with academic and industrial partners worldwide, Telenor is constantly
developing, testing and demonstrating new mobile services and technology solutions.

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our business and customers.
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KEEP
Everything we set out to do should work, or if it doesn't, we're here to help. PROMISES
We're about delivery, not over promising, actions not words.
MAKE IT
We're practical. We don't complicate things. Everything we produce should EASY
be easy to understand and use. Because we never forget we're trying to
make customers' lives easier.
Core values in Telenor Pakistan are
CORE VALUES
Content and Service Connected Objects
FutureSIM Wireless Broadband
Our main research areas are:
employ 236 people from 23 countries.
With three locations in Norway and a satellite in Kuala Lumpur, Malaysia, Telenor R&I
The Telenor Research & Innovation unit is an innovation hub for the Telenor Group.
BE
We are creative. We strive to bring energy to the things we do. Everything

operate. We believe loyalty has to be earned.


worldwide. We want to be a part of local communities wherever we L
We acknowledge and respect local cultures. We do not impose one formula RESPECTFU
BE

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.

PEOPLE
Telenor Pakistan consists of energetic, youthful and dedicated employees aged 27 to 28
on average. An appropriate match is required between the culture and employees at
recruitment and hiring. If People Excellence (Human Resource Department) feels that a
person will not be unable to adjust into the organization’s environment, even if he/she is
performing functionally well, the person is rejected. The dynamic group of people,
sharing similar mind-sets, love being with each other and meet on other occasions if
unable to meet during work-hours. They even stay back late, employees can be seen
roaming around till 9 at night.

Primarily the culture comes from the top management. CEO of Telenor Pakistan is
humble and cooperative. The employees get the message that if the top management is so
accommodating then the employees should behave similarly. What is important to the
CEO becomes important for employees to identify completely with the organization.
There are four foreigners in the top management but this does not create communication
barriers. They are extra humble to others while individuals of a local origin are extra
sensitive to them so no one feels alienated. The values of humbleness and free interaction
in putting 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.

ORGANIZATIONAL STRUCTURE

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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.
Flat structure for each department is adopted to enhance mutual operations and co-
operations 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.
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.The organ gram of Telenor Pakistan is given as:

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CEO
Vice President Executive Vice President
Strategy Corporate & Regulatory Affairs

Regulatory &
Legal Affairs
Interconnect

Vice President Public & Corporate


Human Capital Government Communicatio
Division Affairs ns

People Safety and


Excellence & Security
Business
Process
Improvement

Organizational
Support
Services

Chief Technical Chief Marketing


Chief Finance Chief Information Officer / Vice Officer / Vice
Officer / Vice Officer / Vice President President
President President IT Technical Commercial
Finance Division Division Division Division

Business Network
Business Sales &
Support Planning &
Planning & Accounts Distribution
System Design
Finance

Treasury and Implementatio


IT Operations n Marketing
Procurement Financial
Operations
Operations & Customer
IT Security Maintenance
Revenue Audit and Relations
Assurance & Internal Control
Fraud Real Estate &
Management Site Segments &
Acquisition Pricing

Credit Control Products &


Platforms

TYPE OF STRUCTURE: VERTICAL DIFFERENTIATION


HIERARCHICAL LEVELS
There are seven hierarchical levels as the size of the organization approaches 2500 to 3000
employees. Roles and responsibilities are clearly defined at the time of joining the

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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.

CEO

Vice Presidents

Directors

Managers

Assistant Managers

Executives

Officers

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.

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.

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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.

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.

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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.

Centralization

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.

Professionalism

Telenor has a high level of Professionalism. Formal education and Training of the employees
and requites is given major importance.

Complexity
Since the organization has a Functional structure as described earlier and has several levels of
hierarchy.

DEPARTMENTAL DESIGN

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Departments following the routine technology have the Organic structure with following
characteristics:

 Low Formalization
 Low centralization
 More training or experience
 Small span of control.

Interdependence among Departments


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

ETHICAL VALUES
Since recently, the organizations' major ethical focus is on the physical environment in which
it exists. Telenor has no such by-product that would end up polluting the environment.
Hence the organization is not a burden on the environment.

BUSINESS OBJECTIVES
Objectives 2006-07 2015
Market Share in terms of 10% 40%
Subscribers
Market Penetration 9% 30%
Market Share in terms of 7% 30%
Revenue
Unprompted Brand 20% 90%
Awareness

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MARKET SEGMENTATION AND POSITIONING
Segmentation is the process of dividing the total market for a good or service into several
smaller, internally homogenous groups. Since Telenor is a customer oriented and quality
driven company, it segments its market on the basis of various different dimensions.

Market dominated by low-end, low-ARPU customers (largely Untapped)

Relatively large emerging middle class segment (Basic in Telenor Terminology)

Strong youth culture with needs similar to other markets.

Private postpaid almost non-existent.

Small but profitable (high ARPU) Corporate/SME segment.

Women a largely untapped segment.

Segmentation is the process of dividing the total market for a good or service into several
smaller, internally homogenous groups. Since Telenor is a customer oriented and quality
driven company, it segments its market on the basis of various different dimensions.

Market Segmentation & Product Positioning Analysis

Market Today Future 4 years Existing Profitability


Segment Estimate Products %
Youth/ 25% 27% Djuice, 29%
students Talkshawk
Women 10% 20% TalkShawk 21%
Financially 40% 23% TalkShawk, 20%
Constraint Telenor Azadi

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Corporate/ 25% 30% Post Paid 30%
SME -Packages

Companies positioning against competition

Parameters Mobilink Telenor


Product Life Cycle Maturity Growth
Market share % 59% 7%
Coverage 900 cities 1100 cities
Product Portfolio Jazz Octane, TalkShawk,
Mobilink Telenor
Indigo, Ladies Azadi, DJuice
First,
Customer Base 17.2 million 3.6 million

Marketing Operations Excellent Average

Segmentation Strategy
Telenor is using multiple segmentation strategy and developing separate marketing
program for each segment because different customers are looking for different benefits
from different services they purchase. Estimating the market potential of each segment
includes asking how many prospects with how much purchase power there is for each
particular want.

Market to Segment

Regarding Pakistan different markets are segmented by Telenor on the basis of:

1. Geographic

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2. Demographic

3. Psychographic

4. Behavioural

Geographic (Area wise)

In Pakistan Telenor is segmenting the whole country region wise. There are different
regions in Pakistan. Telenor is providing service specially in Northern Areas and in Rural
areas of Sindh, Balochistan and Punjab where others are not providing services.

Demographic (Life style)

Age:

Telenor knows that needs and wants of customers changes as they go through life. So,
with change in age Telenor introduces different services. The main segmented market is
the young people of age 15-30.

Pre paid-mostly Students, youngsters and middle class

Post paid-Business Class, Industrialists

Pre paid:

Talkshawk

Talkshawk Her Second For 15-22 yrs

Talkshawk 30 Second For 20-27 yrs

Talkshawk Her Minute From 25- onward

Djuice

Djuice From 15-24

Djuice Jaagtay raho From 18-24

night

Post paid:

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Persona

This Post paid service targets the Business Class mainly. There are four different plans
which varies with the amount of monthly line rent.

Persona From 32-55

Income:

Telenor also segments the customers on the basis of income level. Different packages are
there for people of different income level

Pre paid:

Talkshawk

Talkshawk Her Second For Students

Talkshawk 30 Second For Students and Job people (low income)

Talkshawk Her Minute For Job people

Djuice

Djuice For SMS lovers Students

Djuice Jaagtay raho For SMS lovers & who like to talk them in night

Psycho graphically (Personality)


Psychographic segmentation goes beyond demographic. Telenor doing segmentation on
the basis of customers mind set. Telenor is segmenting the customers as they are giving
different packages for different personality. There are seven packages of Telenor on the
basis of different call & sms rates.

Behavioral
Telenor is segmenting the customers according to their behavior, mind set and thinking.
Different people have different behavior, different mind set different thinking Telenor is
segmenting behaviorally by offering different package in pre paid and different plans in
post paid. Singers are liked by people the singing culture is being promoted in our
country so they hire singers for their promotions to hit customer’s mind.

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ENVIRONMENT

EXTERNAL ENVIRONMENT

Environmental Domain
Telenor Pakistan is an open system and operating in a competitive environment. External
environmental variables like telecommunication industry competitors, government rules and
regulations, customers, and other stakeholders etc do affect the Telenor domain.

TASK ENVIRONMENT
Telenor's task environment includes Industry Sector,, Market Sector, Human Resource and
these sectors have a direct impact on the ability of Telenor to achieve its goals.

Industry Sector

The major competitors of Telenor Pakistan are Mobilink, Ufone, and Warid While Paktel and
Instafone are also competitors of Telenor but right now they are not in position of being the
headache of Telenor.

Market Sector

Market sector or the customer sector is the main sector that influences all the
telecommunication companies. For a telecommunication company it is very important to
satisfy its customer and to make long term relations with them.

Marketing department has the responsibility of establishing long term relationship with the
customers through public relation. Marketing department also has the responsibility of
advertisement which is very important to grasp the attention of its customers.

Human Resource Sector


Telenor Pakistan has been very successful in obtaining Human Resources; hence the
organization is very successful in this sector. There is a separate human resource department
to hire new employees, to retain them with the organization and satisfy them.

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GENERAL ENVIRONMENT
Financial Sector
Telenor has no issues obtaining the finances. The organization has no debts; hence it is pretty
stable in this sector. Teienor Pakistan is the subsidiary of Teienor International that is among
the world largest telecommunication firms therefore, Teienor is having to financial problems.

Socio-Cultural Sector
This is the sector that so far has influenced Teienor Pakistan more than any other
factor. Telenor's parent company, which is Teienor 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
Teienor Pakistan. The offices of Teienor were burnt down in Pakistan. After that mishap,
Teienor 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

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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
ellite class.

 State of art technology e.g they are up with the latest networking underground
fiber optical network.

 Widest network coverage after Mobilink.

 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.

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 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.


 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.

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Service Quality
Simplicity and Efficiency
and Convenience
trust through through
Performance through the
pricing alignment of
through a distribution
structure and structure and
superior setup
transparency strategy
network design

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.

Human Resource Strategies:

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:

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LEADERSHIP
EXPECTATIONS

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 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.

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.

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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:


Policies at Telenor for Performance Appraisal

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
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

Frequency of the 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. The supervisor is encouraged to make notes on pertinent points discussed
and to place those notes in the employee’s 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.

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All employees will be reviewed at least once at confirmation. Therefore, 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.

Practices at Telenor for Performance Appraisal System:

Telenor conducts performance appraisal in order to evaluate their employee’s current


performance or past performance relative to company’s 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
feed back, development, and incentives required to help the person eliminate
performance deficiencies or to continue to perform above par.

There are many performance appraisal methods. Telenor uses the computerized
performance appraisal method.

In Telenor the performance appraisal of employees is conducted in December. The


Telenor HR department has developed a performance appraisal sheet and has
downloaded it on the intranet of Telenor so that the supervisor performs the evaluation
of the employees. When the supervisor completes the evaluation, he will send the
performance appraisal sheet to the employee for the affirmation with the ideas of the
supervisor if the employee does not agree with the supervisor he will not sign the PA
sheet. When the last date of submission of PA sheet is passed then the HR department
asks the supervisor and the employee about the problem and resolves the problem.

Performance Review:

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.

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Appraisal categories

% Of total numbers of
employees which can
Appraisal category Definition of
be rated in this
category
category

1.expert Indicates exceptional 15%


performance

2.very Good Indicate performance 10%


that consistently meets
the requirements of the
position,” very good”
indicates the individual
is on track for
advancements

3. Good Indicated performance 8%


that requires
improvement (i.e. meet
requirements without
initiative or
advancement)

4. Basic Performance to be 5%
improved (hardly meets
requirements)

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.

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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 it’s 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 fallows

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

STRATEGIC MANAGEMENT
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.

 Market Penetration

 Diversification in new directions and regions

 Focus on mobile internet

 Acquiring a microfinance bank

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 Global expansion (Telenor has also entered the Indian market by taking a stake in
Unitech Wireless)

 Mix of differentiation and low cost

 Lower capital expense investment due to recession/ slow market growth

 Utilize 3G technology opportunity

COMPETITION
As at 30 June 2008, Telenor Pakistan had a market share of approximately 20%. In
addition to Telenor Pakistan, there are five other mobile operators in Pakistan: Mobilink,
Ufone, Warid, Zong (formerly Paktel) and Instaphone. According to data provided by the
Pakistan Telecommunication Authority (the PTA), as at 30 June 2008 Mobilink was the
largest cellular mobile operator in Pakistan with a market share of approximately 37%,
Ufone had a market share of approximately 20%, Warid had a market share of
approximately 17%, Zong had a market share of approximately 4%, and Instaphone had a
market share of approximately 0.4%.

Major Competitor

Parameters Mobilink Telenor


Product Life Cycle Maturity Growth
Market share % 37% 20%
Coverage 900 cities 1100 cities
Product Portfolio Jazz Octane, TalkShawk,
Mobilink Telenor
Indigo, Ladies Azadi, Djuice
First,
Customer Base 17.2 million 3.6 million

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Marketing Operations Excellent Good

BCG MATRIX
Boston Consulting Group is used to help corporations with analyzing their business units
or product lines. This helps the company allocate resources and is used as an analytical
tool in brand marketing, product management, strategic management, and portfolio
analysis.

This BCG matrix is with respect to the competition that exists for Telenor in the telecom
industry. This includes the following mobile operators:

 Mobilink
 Ufone
 Warid
 Zong

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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

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relation with the high quality performance. Compensation is an important motivating tool
for motivation for some employees at Telenor as it increases the efficiency of the employees.

Environment Factor- 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.

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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.
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

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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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REFERENCES
Management (9th edition)by Steven P. Robbins and Mary Coulter

Telenor Broadcast Report - 2008-09 as on 11th of February 2009

Interim Report January–December 2008

Corporate Responsibility Report 2008

Telenor Cantt Franchises

www. Telenor.com.pk

www.researchandmarkets.com/reports

www.telenor.com.pk

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