Principles of Management

Term Project
Group Color: SKY BLUE Group members:
Sidra Yaqoob Akkasha Irfan
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(3104-FMS/BBA/F10) (3151-FMS/BBA/F10)

Reema Mehmood (3128-FMS/BBA/F10) Uzma Ishaq Sajida Batool Shabnam Jan (2858-FMS/BBA/F09) (3095-FMS/BBA/F10) (3094-FMS/BBA/F10)

Table of Contents:
Introduction..3 Mission.4 Vision4 History...5 Organizational chart..7 Organizational culture...9 Planning11 Decision making process.13 Motivation aspects..15 Controlling process.17 SWOT Analysis...19 Summary.21
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Observation.23 Suggestions.25 References..27

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Introductio n

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This report aims to study the organizational design, its various parameters and the role management plays in Telenor. For this purpose, an organization from telecom industry is being selected. Telenor started its operations in April 2004. This report is an in depth analysis of its various components of organizational design that includes organizational structure, its culture and processes. Along with that personal management and its characteristics and strategies are discussed in detail. Most of the information is gathered from primary research. An interview was conducted with Ms. Sana Rizwani who helped us in understanding the organizational design.

Mission:
Telenor is a customer focused business mobile service operator/telecommunications company that seeks competitive advantage 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.

Vision:
Telenor exists to help customers get the full benefits of communication service in their daily lives. Telenor vision in Pakistan is simple: Were here to help. They say that they exist to help their customers to get the full benefit of communication services in their daily lives.

Core Values:
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 their promises, being respectful of differences, inspiring people to find new ways. These are the four core values of Telenor.

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History
What is history? An echo of the past in the future; a reflex from the future on the past
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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. The physical work has helped in rolling out infrastructure and developing services over long distances and in tough natural conditions. The real job of Telenor is building relations between people. Telenor has successfully defended its strong position in the Norwegian market. Telenor Pakistan is 100% owned by the Telenor Group, an international provider of high quality voice, data, content and communication services in 14 markets across Europe and Asia. Telenor is the 2nd largest network of Pakistan after Mobilink. Telenor acquired the license of GSM service in Pakistan in April, 2004 and began commercial operations on March 15, 2005. Telenor Pakistans corporate headquarters are in Islamabad, with regional offices in Karachi, Lahore, Faisalabad, Multan and Hyderabad. Basically it is subsidiary of Norway. It was inaugurated by ex-President of Pakistan General Pervaiz Musharaf. Its first inaugurated call was made by General Pervaiz Musharaf to the prime minister of Norway. Now Telenor has covered 3000 cities, towns and highways all over Pakistan. Dialing codes now available of Telenor in the market are 0341, 0342, 0343, 0344, 0345, 0346, 0347. It focuses on rural areas initially and this strategy helped them in gaining customer support quickly. Due to this they became first mobile operator to cover such remote areas of Pakistan. In October 2010 by the help of VSAT (Very Small Aperture Terminal) project it reaches to those remote areas through satellites and provides coverage where conventional transmission media cannot be implemented. Telenor spread across Pakistan, creating 2500 direct and 25000-plus indirect employment opportunities. They have a
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network of 23 company-owned sales and service centers, more than 200 franchises and some 100,000 retail outlets selling subscriptions and refills. It is currently providing prepaid, postpaid and value-added services. Their package includes: TalkShawk Telenor Persona Djuice Telenor Pakistan CEO states: Telenor Pakistan is obviously different from the competition. Our culture is different, our values are different and our focus on the fundamentals of business is different. Telenor Pakistan is fully involved with its key stakeholders and trusted as a friend of the community.

Organizational chart:

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Organizati onal Culture

That is true culture which helps us
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to work for the social betterment of all. Victor Hugo

The communal culture of Telenor is 100% open. They include an open door policy and open work environment where the managers sit with their employees and do not have separate cabins even the cafeteria is combine either for employees or guards or managers. Everyone is given an equal part in decision making. Employees are empowered. Being empowered, employees feel part of Telenor. They work hard since they consider organizations success to be their success. Employees are encouraged to give their suggestions and share their ideas. If the ideas are practical enough to be implemented than they are applied to respective areas and the employees are rewarded for their contributions. Employees are friendly to one another.

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Telenor Pakistan is trying to promote diversity and has achieved good results in this area. Telenor has developed requirements for diversity in both recruitment and management development programs. There is an appropriate blend of less seasoned and experienced employees. No quota has been assigned. The best-fit candidate is employed. There is an effective hiring person. HR department selects those people who they believe can easily intermingle into the culture of the organization. This ensures harmony within the whole culture effectively manages diversity. Customer satisfaction and goal setting is highly encouraged at Telenor. Telenor believes that its success mainly depends on the level of satisfaction of the customers. More the customers are satisfied, the more customers they will be able to attract and could gain profit. Due to this their market share will increase. The services they provide to their customers will satisfy them thats why they hold 23.99%of the market share.

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Planning
A good plan today is better than a perfect plan tomorrow.

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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. The HR 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 the organization plans to provide training and compensation to employees along with other motivational techniques. Short term planning in Telenor is made by the manager of each department separately and than showed to the Director for approval. There is no need to move it on to the CEO further for short term plans. Long term plans that involve important decision for the whole organization need approval of the CEO. The Telenor group has a strong track record of delivering on ambitious goals. By 2011, they aim to be one of the fastest growing mobile operators in the world, the strong broadband position in all markets, successfully developing new services and adopting new and responsible business models. The primary goal of Telenor is to create value of the shareholders, customers, partners, employees and for society. They strive to be a driving force in creating, simplifying and introducing communication and content solution in the market. The Telenor group aims to create a stronger link between the strategy process and performance monitoring. The Telenor has defined six strategic ambitions which it aims to achieve by 2011. These are To deliver increased profitable growth. To strengthen performance culture across the Group. To make responsible business a competitive advantage. To provide a superior customer experience. To ensure best practice benchmarking across the Group.

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 To drive change and constant renewal.

Decision making process

Decide what you want, decide what you
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are willing to exchange for it. Establish your priorities and go to work. H. L. Hunt

HRM participate in strategic decision making. Scope of HRM is increased in Telenor during last 3 years. Employees have right to share their problems with HR department regarding any situation. HR is responsible for every employee working with in the organization from the time he/she enter till his/her exit from Telenor. Employees are free to discuss their point of view and give feedback with respect to the organization. This culture promoted by Telenor is unique in it self and help in eliminating one man show from the organization. They go for team work and group decision making in order to have different views, perception, thoughts because people from diverse culture with different ideas do make a difference. Telenor is an Equal Opportunity Employer. There is no discrimination between the employees and applicant for employment. They are non-discriminative in a sense that the
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applicant is male, female, minority or disable. They only focus on skills, experience and qualification.

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Motivation aspects
Success is not final, failure is not fatal: it is the courage to continue that counts. Winston Churchill

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Medical aid: Employees are facilitated by free medical check up of that individual and
his/her family also. Each individual is provided 5 lac per disease annually.

Gym: For effective and efficient work employees should be physically and mentally healthy.
For this gyms are also available in Telenor for employees.

Day cares: They also have the facility of day care centers for the child of female employees.
Libraries: The library is also present in Telenor. Where the employees could spend their leisure time and acknowledge themselves with useful information.

Cinema: For entertainment Telenor Lahore is giving the facility of cinema to its employees
which help them to get rid of the tension of work.

Bonus and increment per year: Bonuses on salary are also given on performance basis of
the employees. These rewards motivate the individual to do best from better and better from good. It motivates the other employees to work hard and give an awesome performance. This would help the organization to achieve goals and individuals to achieve rewards.

Mobile: Employees in Telenor are provided with free mobile phones. Pick and drop facility: Female employees in Telenor are also given the facility of pick and
drop services.

Profit distribution: Whenever Telenor gains profit that profit is distributed among all the
employees.

Life insurance: Telenor also provide the facility of life insurance to its employees.
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Controlling process
Reason is a harmonizing, controlling force
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rather than a creative one.Bertrand Russell

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.

Centralization & Decentralization:

Apart from Strategy, all other functions are decentralized. In decentralization lower level managers want a voice in decisions. People at Telenor Pakistan are motivated to take their responsibilities especially in cross functional projects. Managers in each department oversee that the employees that the employees take up their roles and duties and their performance is monitored is accordingly. If an employee is losing focus from his core job by taking added responsibilities, he/she is instructed to re-adjust his/her priorities.

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5-step controlling process

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SWOT Analysis of Telenor

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Strengths:
Network quality and design. Financial strength. Brand image of quality. Superior product quality for customers. Better customer relationship then competitors. Management is rational and understanding the situation. Product innovation on going. Committed and efficient staff.

Weaknesses:
Less time in the market as compared to other cellular companies like Mobilink. Less coverage as compared to competitors. Less experienced employees. Seth organization.

Opportunities:
Technologically better environment. Decline of major competitors. More customers on newer products introduced. Low cellular market penetration. Extension to overseas. Inefficiency and poor performance of other mobile networks.

Threats:
Emerging companies in market. Lower prices of competing brands. High public expectations. Unstable political conditions. Increased competition.

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Summary

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Telecommunication industry plays a vital role in development of modern society. Telenor is the part of telecommunication industry. Telenor Pakistan is 100% owned by the Telenor group. And it is basically a company of Norway which have their branches in different countries like Pakistan, Bangladesh, India and some countries of Europe also included. It started work at Pakistan in 2004 and commercial operations in 2005. Its head office is in Islamabad. It covers 3000 cities and towns of Pakistan. They have 200 franchises and 10,000 sales centre all over the Pakistan. Talkshawk, Telenor persona and djuice are their current prepaid, postpaid and value added services. CEO is the head of the organization. All the VP of different departments comes under the CEO. Than the post of director comes. Directors are responsible for the short term plans. And the long term plans or strategies are discussed with the CEO. With out the approval of CEO Directors cannot take long term decisions. Directors work as a bridge between managers and VP and CEO. After Directors managers are there to perform their duties. Span of control in Telenor is 4-5. Like there are 4-5 employees under a Manager. After that they have Assistant Managers in their organization. Than Executive and than officers are their to play a vital role in the organization to achieve its goals effectively and efficiently. Telenor has a 100% open environment. Employees can communicate to other with out any hesitation. There is no discrimination of race, color, gender, cast or background. They make strategies to satisfy customers from their services and new packages. Because they know that if they have new services they will be successful in retaining the trust of customer and attract the new customers towards their product. If many customers use their products that increase their
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profit and market share than their competitors. HR department is responsible for decision making regarding employees. Telenor motivates its employees by providing different increments and bonuses. Other facilities provided to their employees are free medical facility for individual as well as his/her family. Pick and drop, free mobile phone, day cares, libraries. For the entertainment for their employees they facilitate them by cinemas, gym, and sport occasion are also arranged for the employees.

Observatio n
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Peoples minds are changed through observation and not through arguments.

According to management perspective CEO and VPs lie in Top management category and require conceptual skills. Directors and managers lie in middle management category and require conceptual, technical as well as human skills. Assistant managers and Executives lie in first line management category and require technical skills whereas officers lie in nonmanagerial employees and require technical skills. Telenor is working according to the Taylors four management principles. All the work performed in the organization is according to the science and technology. In Telenor there are no offices like other typical organizations have and all the work is done on their personal laptops. Employees in Telenor are hired according to their human and technical skills not on quota system. They hire employees on behavioral competency and skill set. Telenor has open environment of communication. Every person can co-ordinate with each other. Tasks are
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defined by middle managers and then assign them to the employees but all the major tasks or strategies are made by CEO and VPs. Telenor is a customer related organization; it delivers its services in the market. If it doesnt know what a customer wants or about their needs they cant make any type of innovation in their products. Thats why organization behavioral theory also implements on Telenor. Telenor is learning organization as it always changes with time and technology. Everyone is responsible for innovations. Main fear is that if employees cant learn technologies and adopt it than they couldnt survive in the market. Employees have ability to learn and become expert in their job. Managers job is to empower its employees. In Telenor neither manager is wholly responsible nor the external factor for the success or the failure of the organization. They have a strong culture. Values are widely shared and employees are very well-known about the history of the organization. They have identification with the culture. Management by objective is adopted by Telenor. Manager assigns specific task to employees. After the completion of those tasks both the employees and the managers evaluate the performance and on that basis they are rewarded with increments, bonuses and promotions as well.

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Suggestion s

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 In their work force there should be a quota for the disabled people. This would enhance

the image of the organization being socially responsible. To increase their market share Telenor must pay more attention to the rural areas of Pakistan. Telenor should use the technology that gives promised benefits to its customers. As Telenor is multi national telecommunication company it should introduce radical new technologies in Pakistan. Seth culture should be avoided. There should be more decentralization and employees should be encouraged for their ideas. Compensations and benefits plans should be revised, as it can be used as a very important tool to create motivation in employees. The CEO being a foreigner would have difficulties in understanding the psychology of domestic employees. Also his ability to understand the overall situation or domestic market would not be as strong compared to his competitors.

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References

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Bibliography:

http://en.wikipedia.org/wiki/Telenor_Pakistan http://www.telenor.com.pk http://www.scribd.com http://www.easypaisa.com.pk http://www.google.com http://www.ask.com

People we met:
Ms.Sana Rizwani. Ms.Saba Zahid. Ms.Zahida Saleem. Mr.Ibrahim Niaz.

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