telenor structure

Telenor

Muhammad Sabir HussainHafiz Muhammad MajidRashid LatifUsama Nawaz

0000112246

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

Technology 21

Part 4 22

Hierarchical Levels 22

Telenor structure view 23

Strategy 24

Part 5 25

Conclusions & Recommendations 25

Telenor Pakistan

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.

Telenor Pakistan

Part 1

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

Telenor Pakistan

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?

Telenor Pakistan

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.

Telenor Pakistan

Part 2

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.

Telenor Pakistan

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

Grameenphone, Bangladesh

Telenor Pakistan

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

Telenor Pakistan

MAKE IT EASY

We're practical. We don't complicate things. Everything we produce should be easy to understand and use. Because we never forget we're trying to make customers' lives easier.

KEEP PROMISEEverything we set out to do should work, or if it doesn't, we're here to help. We're about delivery, not over promising, actions not words.

BE INSPIRING

We are creative. We strive to bring energy to the things we do. Everything we produce should look good, modern and fresh. We are passionate about our business and customers.

BE RESPECTFUL

We acknowledge and respect local cultures. We do not impose one formula worldwide. We want to be a part of local communities wherever we operate. We believe loyalty has to be earned.

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

Telenor Pakistan

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

Telenor Pakistan

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.

Telenor Pakistan

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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Part 3

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

Telenor Pakistan

http://en.wikipedia.org/wiki/Moral_responsibility

http://en.wikipedia.org/wiki/Employment

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

Telenor Pakistan

Geographic Pros & Cons

Functional Pros &

+ More effective and efficient handling of specific regional issues that arise+ Serve needs of unique geographic markets better- Duplication of functions- Can feel isolated from other organizational areas

+ Efficiencies from putting together similar specialties and people with common skills, knowledge, and orientations+ Coordination with functional areas+ In depth specialization

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

Telenor Pakistan

+ 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.

Telenor Pakistan

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 levelEmployees are not capable to take decisionsUniformity in actionPersonal leadershipNo loyalty

Telenor Pakistan

Remote controlDelay in work

DECENTRALIZATION

Decision making flow is downwardEmployees are capableConcentrate on strategy on higher level decision making, and coordinating activitiesVital 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

Telenor Pakistan

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.

Telenor Pakistan

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.

Telenor Pakistan

Part 4

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:

Telenor Pakistan

CEO

Vice Presidents

Directors

Managers

Assistant Managers

Executives

Officers

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 DivisionII. Customer Service Division

III. Financial DivisionIV. Corporate affairsV. 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:

Telenor Pakistan

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.

Conclusion:

Structure of Telenor Pakistan is Mechanistic and functional.Decision-making is highly centralized and empowerment is not appreciated as much but to some extent.

Telenor Pakistan

Part 5

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.

Telenor Pakistan

telenor structure

Education

telenor departmentalization

telenor structure view

hard work

muhammad sheeraz

work specialization

needs structure

organic structure

chain of command