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Telenor structure Telenor structure Document Transcript

  • TELENOR 0000112246Telenor PakistanStructureSubmitted By:Muhammad Zeeshan BalochMuhammad Sabir HussainHafiz Muhammad MajidRashid LatifUsama Nawaz 2012 INSTITUTE OF SOUTHERN PUNJAB
  • Table of ContentsPart 1 ............................................................................................................................ 3 Acknowledgement ................................................................................................................. 3 Dedication ............................................................................................................................. 4 Questionnaire ........................................................................................................................ 5Part 2 ........................................................................................................................... 6 Introduction Of Telecommunication ................................................................................... 6 Telecommunication in Pakistan........................................................................................... 6 Company background ........................................................................................................... 7 Telenor in Pakistan ............................................................................................................... 9 Human resource assessment ............................................................................................... 11Part 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............................................................................................................................21Part 4 ....................................................................................................................................... 22 Hierarchical Levels .............................................................................................................. 22 Telenor structure view ....................................................................................................... 23 Strategy ................................................................................................................................ 24Part 5 ........................................................................................................................................ 25 Conclusions & Recommendations ...................................................................................... 25Telenor Pakistan Page 2
  • Part 1 ACKNOWLEDGEMENTAll 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 ourteachers for instilling in us enough knowledge to be able to carry ourself efficiently during oursurvey report.Secondly,We are bound to thank Mr.Muhammad Sheeraz who is marketing manager and thehead of telenor franchise new Multan.Telenor Pakistan Page 3
  • DEDICATIONWe dedicate this report to our parents and friends in recognition of their worth and to our teacherSheikh Hameed-ul-ah who is the guiding force for us and it is their effort and hard work thatshowed 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 OlsenTelenor Pakistan Page 4
  • 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 Page 5
  • Part 2 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 Page 6
  • The introduction of new services in terms of technology advancement in thesector includes broadband Internet services, General Packet Radio Services (GPRS) facility, andinternet connectivity on mobile phone. The PTA has issued 1,278 radio – based licenses andgranted permission to install 291 Spread Spectrum Radio Lines.For the value added services, Pakistan Telecommunication Authority has issued total 431licenses including 177 licenses for card payphone services and 121 for electronic informationservice. For voice and data network services, 24 and satellite 8, trunk radio services 12, store andforward fax service 9, video conference 1 and 25 data communication network services licensewere issued up – till June 2003.Telenor acquired the license for providing GSM services in Pakistan in April 2004; the licenseterms stipulate that by year 4, Telenor will cover 70% of Pakistans 297 administrative Tehsilheadquarters. Telenor will fulfill the license requirements and provide superior quality coverage.Telenor has successfully signed interconnect agreements with all four incumbents duringDecember 2004, allowing its subscribers to exchange voice and data with subscribers on allactive mobile networks including Paktel, Instaphone, Ufone, Mobilink and Warid telecom.Company backgrounda) History of Telenor group:For over 150 years, telecommunications has played a vital part in the development of modernNorwegian society. As the incumbent provider, Telenor has been the driving force in thedevelopment of a highly sophisticated home market and is now one of the largest mobileoperators worldwide.b) The introduction of the telephone:The years of 1855 to 1920 was a pioneering period in the history of Norwegiantelecommunications. During two generations, the Norwegian society experienced theintroduction of three new means of communications: the telegraph in the years of 1850, thetelephone around 1880 and wireless telegraphy – radiotelegraphy –at the turn of the century. Thespread and use of telecommunication was modest compared to later periods, but as entirely newfeatures they received a fair amount of attention.Telenor Pakistan Page 7
  • c) Pioneer in mobile communications:Telenor is a pioneer in mobile communications. Manual mobile telephony services wereintroduced in Norway in 1966, as a forerunner to the automatic NMT system, which appeared in1981. 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 changedits name to Telenor. In December 2000, Telenor was partly privatized and listed on the stockexchange.e) International expansion:Telenor has undergone momentous change as a group – from being a strong, national operatorwith significant international holdings to be coming an international, world-class provider ofmobile communications services. Telenor is organized into three business areas; Mobileoperations covering 12 countries, and Fixed-line and Broadcast services covering the Nordicregion.f) Global opportunitiesTelenor is one of the largest mobile operators worldwide with ownership interests in 12 mobileoperators across Europe and Asia, and as a consequence a whole world of job-opportunities isopening 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, BangladeshTelenor Pakistan Page 8
  • Telenor in Pakistan:Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations in Asia togetherwith Thailand, Malaysia and Bangladesh. Telenor Pakistan launched its operations in March2005. Market share of Telenor is 21% currently.A) Vision and ValuesTelenor Vision Telenor vision is simple: Were here to helpWe exist to help our customers get the full benefit of communications services in their dailylives. 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 ofdifferences. Inspiring people to find new ways.Core values of Telenor •Were practical. We dont complicate things. Everything we produce should be MAKE IT easy to understand and use. Because we never forget were trying to make EASY customers lives easier. •Everything we set out to do should work, or if it doesnt, were here to KEEP help. Were about delivery, not over promising, actions not words. PROMISE •We are creative. We strive to bring energy to the things we do. Everything we BE produce should look good, modern and fresh. We are passionate about our INSPIRIN business and customers. G •We acknowledge and respect local cultures. We do not impose one formula BE worldwide. We want to be a part of local communities wherever we operate. RESPECT We believe loyalty has to be earned. FUL b)Largest direct European investment in PakistanTelenor as the single largest direct European investment in Pakistan is setting precedence forfurther foreign investments in the telecom sector. The company has covered several milestonesover the past twenty eight months and grown in a number of directions, Telenor has grown toTelenor Pakistan Page 9
  • become a leading telecom operator in the country. In fiscal year 2006, itachieved nearly 200% growth in their subscriber base – the highest in the industry by a widemargin.c) Highest (ARPU) in the marketSince its launch of services in March 2005, Telenor Pakistan has exceeded all expectations: Ithas created the second largest mobile network and the largest and most advanced data network inthe 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 subscriptionsin little more than 3 years of operations. During the first half of 2008, Telenor Pakistan added3.24 million subscriptions against the industry average of1.63 million, taking 33% of the market share of net additions over the period – the highest in themobile sector in Pakistan.d) Infrastructure expansionTelenor is keeping ahead by investing heavily in infrastructure expansion. With USD1 billionalready invested, Telenor has extended agreements with their vendors for network expansion andservices until 2009. The agreements, with a potential to result inUSD750 million worth of orders from Telenor Pakistan, are some of the biggest of their kind inthe industry.e) Employment opportunitiesThe company has created 2500 direct and more than 25000 indirect employment opportunitieswith 100,000+ retail outlets and 200+ franchises in addition. 99.9% of these employmentopportunities belong to Pakistanis.f) Social and corporate responsibilityInitiated with a relief effort worth 95 million rupees in the wake of the devastating earthquake ofOctober 2005, Telenor Pakistan’s community contributions have extended over the years toinclude education, empowerment, enterprise, and environment – with special focus on bringingthe telecom promise within the grasp of the most disadvantaged sections of the society. InPakistan the company came out with the first-ever Corporate Responsibility report in the mobileindustry last year, setting new standards of transparency and responsibility. Telenor Pakistan isTelenor Pakistan Page 10
  • well-recognized by the development sector in Pakistan for the amount of ForeignDirect 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 InvestmentIn June 2006 SAARC Communication Industry Conference 2007’s Most Innovative Mobile Operator Award and Mobile Operator with theMost 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 2008Lahore Chamber of Commerce & Industries’ Appreciation Award for the Largest FDI andRawalpindi Chamber of Commerce & Industries’ Achievement Award 2008 The Helpline Trust’s 2nd Corporate Social Responsibility Award 2008h) Future Projects:Telenor Pakistan is committed to bringing true mobile innovation to the under-served masses ofPakistan. The company has picked up two Universal Service Fund projects in order to provideconnectivity to the yet unconnected in the remotest areas of Pakistan. It aims to invest stronglyfor further network expansion into the rural areas and for the rollout of third generation of mobiletechnology (3G) in Pakistan. Human Resource AssessmentThe company has created 2500 direct and more than 25000 indirect employment opportunitieswith 100,000+ retail outlets and 200+ franchises in addition. 99.9% of these employmentopportunities belong to Pakistanis.Telenor offers exciting and challenging careers with competitive pay, excellent benefits andexceptional advancement opportunities. Telenor care about its employees and provide them witha relaxed and enriching working environment. Telenor training and further education programsTelenor Pakistan Page 11
  • ensure a high professional standard amongst its employees. Telenor believe thata talented and loyal workforce plays a crucial role in the organization’s ongoing businesssuccess.Equal opportunities for allTelenor maintains a policy of non-discrimination towards all employees and applicants foremployment. 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 developmentTelenor management and organization is imbued with joint values. The Group Management hasdevised five leadership requirements that apply to all managers in the Group, and allmanagement groups shall discuss what these requirements mean to them. The demands are: Passion for business Change and constant renewal Operational excellence Empower people IntegrityAll 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 thestandards of service to the utmost levels of excellence. From providing the best administrativesupport to facilitate employees work life to creating benchmark security solutions, Telenor is ateam of enthusiastic, energetic young people who are geared to perform the best always. Telenormanaged to create a culture of passion for business, operational excellence and constant renewaland committed to assisting employees in exploring, developing and maximizing their fullpotential, encouraging continuing education through internal and external training anddevelopment opportunities.Telenor Pakistan Page 12
  • Part 322222 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 Telenor Pakistan Page 13
  • 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 lineTelenor Pakistan Page 14
  • 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 needsBY GEOGRAPHICAL AND FUNCTIONAL Geographic Pros & Cons Functional Pros & Cons + More effective and efficient handling of specific regional issues + Efficiencies from putting that arise together similar specialties and + Serve needs of unique geographic people with common skills, markets better knowledge, and orientations - Duplication of functions + Coordination with functional - Can feel isolated from other areas organizational areas + In depth specialization - Limited view of organizational goalsTelenor Pakistan Page 15
  • BY PRODUCTPROS & 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 goalsBY CUSTOMERSPROS & CONSTelenor Pakistan Page 16
  • + Customers’ needs and problems can be met by specialist - duplication of functions - Limited view of organizational goalsCHAIN OF COMMAND (COM)Com is the line of authority extending from upper organizational levels to lower levels, whichclarifies who reports to whom. 1. AUTHORITYAuthority refers to the rights inherent in a managerial position to tell people what to do and toexpect them to do it. 2. RESPONSIBILITYAs managers assign work to employees, those employees assume an obligation to perform anyassigned duties. 3. UNITY OF COMMAND(UOC)Uoc states that a person should report to only one personSPAN OF CONTROLThe number of employees a manager can efficiently and effectively manage.Telenor Pakistan Page 17
  • 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 requiredFACTORS INFLUENCING SPAN OF CONTROL Managerial abilities Competence of subordinates Nature of work Delegation of authority Degree of decentralizationCENTRALIZATION & DECENTRALIZATIONCENTRALIZATION Decision making is done at top level Employees are not capable to take decisions Uniformity in actionTelenor Pakistan Page 18
  • Personal leadership No loyalty Remote control Delay in workDECENTRALIZATION Decision making flow is downward Employees are capable Concentrate on strategy on higher level decision making, and coordinating activities Vital experience in making decisionsFORMALIZATION 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 satisfactionMECHANISTIC OR ORGANIC STRUCTURE Work specialization Departmentalization Span of control Chain of command Centralization & decentralization FormalizationMECHANISTIC High work specializationTelenor Pakistan Page 19
  • High departmentalization Narrow span of control High level of centralization High level of complexity High level of formalizationORGANIC Low work specialization High departmentalization high span of control Low level of centralization Low level of complexity Low level of formalizationSTRATEGY 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.Telenor Pakistan Page 20
  • For imitation strategy we may have mechanistic or organic.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 Page 21
  • 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. 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. Telenor Pakistan Page 22
  • Telenor Structure View: 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 Division II. Customer Service Division III. Financial Division IV. Corporate affairs V. 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.Telenor Pakistan Page 23
  • Strategy and Structure of 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.Telenor Pakistan Page 24
  • Part 5 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. 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 Page 25