1|Page

COMPENSATION & BENIFITS

Team Members
Uneeb Ahmed
Waqar Alam
Farhan Kausar
Muhammad Basit
Arslan Munir

Submitted To:
Sir Shahid Alvi

2|Page

Acknowledgement
Thanks to almighty Allah for enabling us to fulfill all the requirements for the completion of our
project report.
It would not be a justice in presenting this report without mentioning the people around us who
have been inextricably related with the completion of this report. For assisting us in all respect
and regards to complete this report our heartfelt thanks to our teacher Mr Shahid Alvi, who
enriched us knowledge with wealth led ideas to pursue and power of writing this report. It could
not have been possible to accomplish this report without his thoughtful guidance and expertise.

3|Page

Table of Contents
Executive Summary __________________________

Company Profile _____________________________

Goals _______________________________________

Major Departments ___________________________

Job Analysis _________________________________

10

Recruitment & Selection _______________________

11

Wages & Incentives ___________________________

14

Rewards & Remuneration ______________________

15

Recommendations _____________________________

24

4|Page

Executive Summary
The todays world moves at neck breaking speed & it calls for a decisive action
Quantum Leap thinking

In project of compensation & benefits we have discussed its Organizational HRM functions. We
have discussed about the recruitment and selection process, training need assessment and
training policies. Then we discussed about the performance appraisal management. And in the
end of project had discussed about the compensation and rewards given by the Telenor to its
employees.

5|Page

COMPANY PROFILE
Telenor Group
Telenor ASA is an international provider of high quality telecommunications, data and media
communication services. It ranks as worlds 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.
VISION OF TELENOR
Telenors 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.
CORE VALUES OF TELENOR
Make it easy
We are practical. We don't complicate things. Everything we produce should be easy to
understand and use. Because we never forget we're trying to make customers' lives easier.
Keep Promises
Everything we set out to do should work, or if it doesn't, we're here to help. We're about delivery,
not over promising, actions not words.
Be Inspiring
We are creative. We strive to bring energy to the things we do. Everything we produce should
look good, modern and fresh. We are passionate about our business and customers.
Be Respectful

6|Page
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.

GOALS
Telenor's main goal is to create value for shareholders through the serving of customers,
employees, partners and the general public interest.
In a long-term perspective, a strong market and customer focus, as well as a strong commitment
to our employees and to society, will provide the best platform for creating incremental value.
Values shall be created through profitable and robust growth. Such growth shall be based on the
development of solutions that simplify the use of, and strengthen the usefulness of, advanced
communications technology. Telenor shall contribute to give customers greater freedom of
choice and more options. Telenor's solutions shall simplify people's workday, make businesses
and activities more efficient, and increase their competitive powers.

7|Page

Major departments in Telenor

Finance
Customer Services
Commercial
Technical
I.T
Human Resources
Administration
Legal Affairs

Human resources department

Services
Payroll information
Leave and medical record
Final settlements and provident fund
Policies and procedures
Employees record and recreation

8|Page

Human Resource Department

"Telenor A multinational Telecom provider where people make the future"

Regardless of the size or type of the business, any organizations most important asset is its
Human Resources. Human Resources management strives to achieve organizational goals and
goals of the employees through effective personnel programs, policies and procedures.
Personnel management program varies from organization to organization. If there is good
performance of personnel department, then the employees of the company will be motivated and
satisfied. The department manages and mobilized the human resources.

9|Page

Functions of Human Resource Department

Commonly

for the human resource department the main functions are performed only the

selection. Recruitment and employees training. No doubt these practices are also performed by
the human resource department, this is not end of the game, these functions are the part of the
activities performed by the human resource department. In Telenor human resource department
also performs various functions on its side. The main functions of the human resource
department is to play with,

Recruitment of the employees

Selection of the employees
Placement of the employees.
Proper job planning for the employees
Career planning for the employees
Proper guidance for the current employees
Making relationship within the organization among different department and out
side the organization

Performance evaluation of the employees.

These are few listed functions/activities performed by the human resource department in Telenor
Pakistan. The further elaboration of these points will be in next section

10 | P a g e

JOB ANALYSIS AND PREPARATION OF JOB DISCRIPTION

JOB ANALYSIS
When hr department is asked or demand for more employees in any other department, the
activity HR department performs that first they compile the whole job duties, responsibility
grade, work unit and placement and afterwards they prepares the job description.

Job description
A single job description is prepared for two purpose, first they use it to publish it in the local
newspaper which have a nationwide network and secondly they use the same job description for
the website where the online application facility for the new employment.
Job description they prepare for the newspaper has a slight difference from the job description
they have on their website. Job description they prepare for the newpaper is very simple but the
components they have in this job description are as follows,
Job title:
Includes the job title for which it is being advertised
Department:
For which department the job is required
Responsibilities:
Includes the key areas to perform, autonomy and power.
Specification:

11 | P a g e
Includes the basic skills, knowledge, ability, experience and educational
background
Gender:
They specify the gender for the particular
Working location:
Sites where he/she has to place for job
At the end the HR department specify the address of their particular regional head office and
main head offices for these advertisement where the candidates send their resumes.

Recruitment and Selection

Group/organization always formed with two or more than two people. For this reason hiring of
the people from different sources is very necessary and important on its side. Because its
(recruitment/selection procedure) performance further leads the organization to success or failure
that how they are recruiting people whether it from within the organization or outside the
organization. Every organization uses different kind of methods and techniques for hiring the
people. In human resource language we can say that,
People are most valuable assets for any organization
Telenor Pakistan as it is said that they are new here in Pakistan market and they are facing too
many challenges, in which the hiring of the people is very important still the activity of hiring the
people after its establishment of 6 months is going on, the most acceptable reason for this, it is on
the growth stage of its product development, we know that with the establishment of the its
network they have to hire more and more workers/ executives and managers on their side,
Different methods they are using for hiring their employees are as follows,

Internal recruitments
Internal recruitment stands for the recruitment within the organization, as they are newly
established business they do not have any kind of internal recruitment still they are focusing on
hiring the people from outside.

12 | P a g e

External recruitment
External recruitment stands for the recruitment of the employees from other source/externally.
They perform different kind of steps in this category,
For the external recruitment first the need for the new employment is created or if it is being
demanded by any department. Human resource department first identifies the need of that job,
particular its expenses in hiring that employee(s), time required for its training and orientation in
Telenor Pakistan. After the approval of the manager of human resource department, different
methods they adopt for the external recruitment are as follows
advertisement through news paper
advertisement through net (official web site of Telenor Pakistan)

1. Advertisement through news paper:

Telenor Pakistan also has jobs advertisements through newspaper. In news paper they mention
proper job title, job descriptions, placement, experience required, educational requirement are
also mentioned there and time and date for leaving the required documents and place to where
these documents are to leave.

2.

Advertisement through official website of Telenor Pakistan:

Telenor also gets the job applications from net through its official web site of organization. There
is formal network or database has been formed for online applications and people can leave their
resumes their on net and they are assigned with specific resume number and they have facility of
being edited it afterwards and beside it there is also option of currently offering jobs anywhere in
Telenor is also presented there and people are given option to apply for their particular job at the
time when they required to.

Performance Appraisal
Reviewing performance and taking positive steps to develop employees further is a key function
of management and is a major component in ensuring the success of the company through
effective employee performance.

13 | P a g e
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.

Objectives of Performance Appraisals

To measure the work performance
To motivate and assist employees in improving their performance
And achieving their professional goals
To identify employess 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, set goals
and discuss further opportunities with reference to past performance at Telenor.

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 specific time period. 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.

Sources of Performance Appraisal:

At TELENOR the primary sources of performance appraisal are the managers and secondary
sources are employees themselves. Though the peers also give their opinion but it usually does
not have any weightage unless a conflict arises between the manager and the employee.

14 | P a g e

Feedback:
Workers at Telenor are informed of their performance and given the opportunity to express their
opinion over their own level of performance against each competence. This serves the following
two main purposes:
It enables the reviewer to redefine whether the initial assessment was correct, as circumstances
may exist that the reviewer is unaware of.
By asking the worker what he sees to be his own strengths and development areas often help to
reduce negative responses and makes planning training needs/inputs activities easier if the person
is able to express for himself the areas in which he feels he can improve.
Following the review the final grades are allocated and the issues/points that were discussed at
the review are included in the sheet. When the sheet is complete, at the first instance it is sent to
the immediate manager who if required adds his comments, and then it is sent to Employee
Relations Department.
All job holders are entitled to have a copy of their sheets if they so wish and this is encouraged to
ensure that the system is perceived as being Open and Fair.

Wages, incentives and benefits

Telenor wants to reward the efforts of qualified employees through bonus schemes, wages,
options and shares programmes as well as other forms of benefits.
The incentive systems at Telenor are part of the effort to motivate employees to meet Telenor's
principal goal of optimising shareholder value. The system has both a short-term and long-term
perspective, through introducing annual bonuses as well as share and options programmes. In
addition, the incentive systems also contribute by helping to retain and develop the strategic
expertise in the Group and attract new expertise. The incentive systems for managers and key
personnel at Telenor are based on an overall compensation principle, where wages, bonuses,
options and other benefits are comprehensively evaluated.
Extra holidays are a benefit of all employees at Telenor. Additional to the stipulated five weeks,
employees of Telenor also have Christmas holidays, Eid holidays and two extra days off. Telenor
also offers benefits for maternity leave, additional to those stipulated.

15 | P a g e

16 | P a g e

Reward and Remunaranative Management

Compensation
Telenor Pakistan offers the employees with good salary packages and incentives in return
of the performance the employees are providing. The employees are awarded with high quality
income in relation with the high quality performance. The compensation and benefits are the
motivating tools for some of the employees at telenor that enhance the efficiency and working
ability of the employee.Instance, if the employee is having the urge to get better salary he have to
work better from the others, cause its the rat race. So being productive for the company, benefits
the employee themselves.
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.

Monetary Reward
Intrinsic and Extrinsic rewards include:

Smart/Quality work

Exceptional performance in a project

Targets achievements

Special assignments

Medical care

Life insurance

17 | P a g e

Vacations

Relocation

Credit advance policy provident policy/advance against provident fund and a capping of
gratuity

Recreation

Club Policy Travel

Education assistance policy

Mobile phone

Business mobile phone policy

Official Blackberry Policy

Life insurance

Promotion
The employees are upgraded when their performance meets the standards or beyond, this is a
motivating driver. The employee is awarded for the level of productivity contributing towards the
organizational vision and values.
Bonuses
The employee may receive 1 to 3 month bonus subject to evaluation of accomplished objectives.
In TELENOR the reward system is based on the individual performance and individual
employee performance is judged for the reward. The manager of respective departments
recommends a candidate from his section for the reward purpose to HR.
Medical entitlement Health & Safety Policies
The safety of employees is everyones responsibility. Accidents, precaution and efficient work
go hand in hand. All levels of employees have a primary responsibility for the safety and well
being of all of us. Therefore, interest in practicing safety prevention must be encouraged by:
A) Setting good examples
B) Acting upon safety records.
C) Reviewing safety programs.

18 | P a g e
D) Holding personal interviews or group conferences.
E) Starting activities that will stimulate and maintain employees interests.
No phase of operation of administration is of greater importance than accident prevention. It is
the policy of the Company to provide and maintain safe and healthy working conditions and to
follow operating practices that safeguard all employees and result in safe working conditions and
efficient operations. Proper First Aid Kit will be available at all TELENOR Offices including
remote locations. There is no need for such measures at TELENOR as maximum jobs do not
expose you to the health hazards and are not such that require safety measures.

Individual Incentives Plans

In Telenor they strongly give importance to the individual performance because it
is the individual performance that enhances the group performance and ultimately
organizational performance. According to their words, if we fail to identify the
individual performance level, it will leads to the unfair compensation which will
definitely result in de-motivation and leg-pulling in the organization which is very
dangerous for organization on such stage where it has reached to the stage to take
over. The individual incentives plans are based on the successfully achievement of
the individual predefined goals and objectives. These incentives are in various
forms like
Commission
Bonus pay
Cash rewards
Over-time payments
Bonus one month cell phone charges
Leaves in cash
Days off
Shift payment and unsocial hours

19 | P a g e

The commission incentive is tied with the sales performance or performance in

production and also in customer services where the individual incentive is given
for effectively treating the customer. This commission is not like a exposure of
employee more pay to risk. If an employee doesnt succeed in meeting the target,
his/her she training needs are identified, trained accordingly and if not achieving
performance standards after that, than job rotation technique is applied in order to
make employee feel secure.
Bonus pay is granted to those individual who achieve the targets which more
prominent results. Bonus pay is the more successful tool for motivating each and
every employee to do some thing extra ordinary.
Cash rewards are also subjected to the individual performance in the group. These
are given besides the group incentives for the purpose to make differentiation
between the higher performer and low performer within the group but it is
managed in such a way that eliminated discrimination. These cash bonus are given
when group rewards are also granted.
One month bonus cell charges are also used as a incentives plan to recognize the
individual efforts to all the people in organization. This will act as tool for
motivation.
Leave in cash and day off are those incentives plan that are mostly granted to
mostly every individual but the days off are only granted to those employee who
over perform the performance targets.
The Telenor incentives plans are not strictly tied with the company objectives
achievement, if the individual objectives are achieved within given constraints than
they are eligible for their individual incentives.

20 | P a g e

The shift incentive plans are for those people whose service is for 24/7 times, like
the customer representative officer. And unsocial hours like working on the
specific festivals like Eid, Sunday etc

Group Incentives Plan

Group incentives plan are mostly designed for the technical staff, engineers, sales
team and marketing teams. These group incentives plans are
Project rewards
Group rewards
Group trips
Remote areas incentives
Group annual bonus
Special assignment or project provision
Special group meal
Projects rewards are for the project teams for completing the projects in the given
deadlines of time, resources and quality. These rewards are subjected to the extent
of the quality and the nature of the projects. These are huge cash bonuses for each
and every member but due to individual incentive plan a slight difference may be
possible.
Group rewards are similar to the project rewards but its amount is lesser and it is
given frequently to the technical group, Marketing team and sales team for
achieving the monthly targets successfully. These are mostly in the form of cash
rewards.

21 | P a g e

The group trips are also used a group incentive but as tool of recognition, these
trips are fully financed by the organization either national or international level.
Here employees are also paid some amount of cash to go for personal enjoyment
there, like shopping, playing etc.
Remote area incentives are those cash and facilities provision to those teams or
groups working in remote areas like mountains, FATA etc.
Group annual bonus is in the form of bonus salaries to all the member of the group
for showing extra-ordinary result crossing the boundaries of targets given. These
are mostly given to the sales groups and production teams.
Special Assignment or project provision is also a group incentive plan in the form
of career development opportunities, learning and exposure in order to be eligible
for the higher position in near future. It is also the form of recognition.
Special Meal is also a form of group incentives used as a tool of recognition the
group efforts. The group members are served with a special lunch or dinner in five
stars of seven stars Hotel.
Organizational Incentives
These are those incentives granted to almost all employees when organization
meets the set objectives either financial or strategic.
These includes
Bonus pay Payments
Cash Bonus
Annual Cash Bonus
These organizational incentives in not limited to the one or two level of
management but it is subjected to all employees according to the position and pay
structures because all these incentives plans are streamed out from the pay grades.

22 | P a g e

Special Incentives
The Telenor has a very distinct special incentives plan in comparison to other
competitors. Following are the few effective special incentives plan not exist in
Mobilink.
Golden Hellos
Golden Handcuffs
Golden Hello is that incentive plan that is used to attract the cream from the
competitors. It is either in the form of lump sum payment or in phases and some
times for couple of years depending on the nature of the people aimed to attract.
Golden handcuffs are also special individual pay incentives used to lock the best
employee within organization and eliminate the fear of being attracted or hired by
other competitor. These are also in the form of lump sum; phase, couple or years
cash payments.
Management Incentives Plan
Management incentives plan are those only for managers for achieving excellence
in the management and optimal utilization of organizational resources. These
incentives may cover two-three years gross salaries payment or a certain amount of
cash payment for fixed time period. The objective of this incentive plan is to keep
the managers at optimal level.
Job Evaluation in Telenor
The job evaluation in Telenor is used in three different ways, its usage is depend on
the nature of the job, demand of that job, supply of people, time and cost
constraints. Generally the following three methods are used from time to time:
Point-methods
Straight ranking method

23 | P a g e

Paired comparison
The point method is widely used method for almost all jobs evaluation for
technical, coordination, production, customer services, managerial, Directors level
jobs. The entry-level jobs, sales jobs and other level jobs, the paired comparison
method is widely used because of easiness and cost effective but when there is any
thing wrong in such jobs evaluation is also used for confirmation. The higher jobs
like Vice-presidents and present jobs are evaluated only through the job ranking
method.
Pay Packages and employee benefits
Due to hierarchical and nature of jobs the pay packages and benefits plans also
varies from level to level and even from employee to employee.
Lower Level Management
Base pay
Annual increment
Variable pay
Individual incentives (varies due performance)
Medical allowance
Transportation
Location charges
Utilities (cell phone, limited free service, food etc)
Subsidized products
Middle Management
Base pay
Annual increment
Individual incentives (varies due performance)

24 | P a g e

Medical allowance
Transportation
Location charges
Utilities (cell phone, limited free service, food etc)
Subsidized products
Life Insurance
Annual bonus
House allowance
Training and development
Upper Management (Managerial)
Base pay
Annual increment
Management Incentives
Medical allowance
Location charges
Utilities (cell phone, free service, food etc)
Subsidized products
Life Insurance
Annual bonus
House allowance
Training and development
Projects payments
Car (Fuel & maintenance)
Social club Membership
Annual international trips
Laptops

25 | P a g e

Upper Management (Directors and above)

Base pay
Annual increment
Annual cash bonus
Medical allowance
House
Car (fuel & maintenance)
Utilities Expenses
International trips
Life Insurance
Social club membership
Two days off in a week
Children welfare allowance
Laptops
Cell phone and unlimited post paid connection

Recommendations
To establish core competence and to bring competitiveness,
Telenor should implement numerous effective plans to improve the performance of its various
departments. Supervisors must manage employee performance well in order for Telenor to
accomplish its mission and achieve its goals. Following are some recommendations for Telenor,
which we personally feel can be useful for the organization, its employees and the customers.

Effective Performance Management

Performance management is one of the most important parts of a Supervisors or team leaders
job. Developing skills in performance Management is wise investments that will help Telenor
achieve its Goals.
Managing employee performance includes:
Planning work and setting expectations
Monitoring and measuring performance

26 | P a g e
Developing the capacity to perform
Periodically rating performance in a summary fashion
Recognizing and rewarding good performance

Communication
Establishing and maintaining effective communications with each Employee not only requires
good oral and written communications Skills, but it also includes the ability to establish good
working Relationships. To communicate effectively with employees, Supervisors must establish
an environment that promotes an open Door atmosphere, the sharing of ideas, and employee
involvement in decision making processes.

Setting Goals
Setting long and short-term goals with employees gives focus to Employee efforts. When goal
setting is done correctly, employees strive to accomplish those goals and feel confident in
achieving them. When goal setting is done poorly, work does not progress as desired. Knowing
how to set goals effectively is an important part of Performance management. To do this well,
supervisors need to be able to clarify expectations and to set realistic standards and targets.

Measuring Employee Performance

Credible measures of performance that employees understand and accept are critical for
achieving high level performance. Measuring employee accomplishments, using both qualitative
and quantitative measures, provides the information that supervisors and employees need in
order to monitor performance.

Giving Feed Back

Feedback should inform, enlighten, and suggest improvements to employees regarding their
performance. Supervisors should describe specific work related behavior or results they observe
as close to the event as possible.

Coaching & Developing

Using their coaching skills, supervisors evaluate and address the developmental needs of their
employees and help them select diverse experiences to gain necessary skills. Supervisors and

27 | P a g e
employees create development plans that might include training, new assignment, job
enrichment, self study or work details.

Recognizing
Effectively recognizing employees is another performance management competency. Being able
to genuinely acknowledge a job well done is critical for strengthening employees commitment
to do their best. Supervisors should be skilled at using formal awards programs as well as using
informal recognition techniques, including personal thank yours and voicing verbal appreciation.