EXECUTIVE SUMMARY

This report aims to study the organizational design in

depth and its various parameters. For this purpose, an
organization from telecom industry is being selected.

Telenor is a well established organization which started

its operations in April 2004. This report is an in depth
analysis of the three major components of organizational
design that includes organizational structure, its culture
and processes. Along with that personnel management
and its characteristics are discussed in detail. Since
strategies resulting variables are use to determine the
effectiveness of any organization. The main purpose is to
analyze the changing workplace behavior and its effect
on the organization itself.

Most of the information is gathered from primary

research. An interview was conducted with Ms. -
_______________ who helped us in understanding the
organizational design.

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ACKNOWLEDGEMENT

We thank Allah Almighty, who is beneficial and

merciful, and whose blessings enabled us to complete
this activity.

We can’t find words to express our gratitude and

appreciation to Ms. _______, an employee at Telenor,
who provided us with such useful information and for
giving us an insight about the workings of corporate
world.

We admire and respect our parents’ who had faith in us.

Their never-ending prayers made us worthy of
completing this activity.

It is difficult to put in few words our deepest feeling of

gratitude and appreciation to our course coordinator Mr.
Saulat Hussain for his constant guidance, valuable
suggestions and consistent encouragement.

We are also thankful to our friends who participated in

this activity and helped us throughout.

Sincere thanks to all.

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Letter of Transmittal

Sir,
Enclosed in this report is what was required by you. We have
tried our best to use our knowledge and capabilities to meet
your requirement. Kindly excuse us if there is any kind of
mistake.
Thanks

Yours obediently,
ALI FAROOQI

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TABLE OF CONTENTS
BACKGROUND.................................................................................................................1
ORGANISATIONAL DESIGN...........................................................................................2
Functionally efficient.....................................................................................................2
Economically viable.......................................................................................................2
Environmentally aligned...............................................................................................2
Growth promoting..........................................................................................................2
Change responsiveness..................................................................................................3
Individual work..............................................................................................................3
Work-organization.........................................................................................................3
Organizational environment.........................................................................................3
CULTURE...........................................................................................................................4
APPARENT CULTURE......................................................................................................5
Formal.............................................................................................................................5
Official rules....................................................................................................................5
TYPES OF CULTURE........................................................................................................6
 Communal culture...................................................................................................6
 Customer service culture........................................................................................6
 Diversity culture......................................................................................................7
 Creativity culture.....................................................................................................7
STATEMENT OF ITS VALUES OR PHILOSOPHY.........................................................9
1. Make it easy.............................................................................................................9
2. Keep promises.........................................................................................................9
3. Be inspiring..............................................................................................................9
4. Be respectful............................................................................................................9
ETHICS.............................................................................................................................10
ORGANIZATIONAL STRUCTURE................................................................................11
Hierarchical levels........................................................................................................11
Structure of Telenor Pakistan.............................................................................................11

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  Span of control.......................................................................................................11
 Chain of command.................................................................................................12
 Integration.............................................................................................................12
 Departmentalization.............................................................................................12
 Standardization.....................................................................................................13
 Centralization and decentralization....................................................................13
 Empowerment.......................................................................................................14
 Conflict resolution.................................................................................................14
 Formalization.........................................................................................................14
 Flow of information..............................................................................................15
TECHNOLOGY................................................................................................................16
EDGE network in Pakistan...........................................................................................16
Bill payments through Easy Paisa...............................................................................16
Blackberry Service.......................................................................................................17
Technology and Organizational Effectiveness...................................................................17
 Input.......................................................................................................................17
 Conversion:............................................................................................................17
 Output....................................................................................................................18
Technical complexity and Organization Structure.............................................................18
 High technical complexity....................................................................................18
Climate-friendly technology and virtual travel..................................................................18
COMPONENTS OF PROCESS........................................................................................19
RECOMMENDATIONS...................................................................................................21

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BACKGROUND

Telenor Pakistan, a wholly owned subsidiary of Telenor ASA, with telecom

operations in 14 countries Telenor acquired the license for providing GSM
services in Pakistan in April 2004, and had launched its services commercially in
Islamabad, Rawalpindi and Karachi on 15 March 2005, and on 23 March 2005.
Telenor has its corporate headquarters in Islamabad, with regional offices in
Karachi and Lahore. On January 28, 2005, Telenor established its first call centre
in Lahore. Maintaining a wide coverage in the country, with 500 destinations
covered within less than 16 months of the company’s launch, it is the 2nd largest
network of Pakistan after Mobilink with a subscriber base of 21.29 million as of
July 2009 (PTA figures). Telenor Pakistan considers Mobilink as its major
competitor.

It is spread across the country with a network of 15 company-owned sales and

service centers, more than 200 franchisees and some 100,000 retail outlets selling
subscriptions and refills achieving a 200% increase in the subscriber base in 2006
and planning for further expansion of network and services.

It is currently providing prepaid, postpaid and value-added services. Its

packages include:

 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

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is different. Telenor Pakistan is fully involved with its key stakeholders and
trusted as a friend of the community.”

ORGANISATIONAL DESIGN

Organization design is the formal, guided process for integrating the people,
information and technology of an organization. Keeping this in view some of
important characteristics of Telenor’s organization design are:

Functionally efficient

Telenor is a functionally efficient in terms of its input and output as it provides

all the required services and products to its customer by fully utilizing its
technologies and other resources.

Economically viable

Telenor is second largest GSM provider in Pakistan and is generating large profit
through effective cost management.

Environmentally aligned

Telenor Pakistan is very much environmentally aligned. It is very sensitive to the

socio-cultural environment of Pakistan. It ha adopted it to the culture and
environment of Pakistan through its advertising and socially responsible
behavior.

Growth promoting

In Telenor Pakistan there are continuous growth and development chances for its
members. The company ensures a secure career development for its employees.

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Change responsiveness

Telenor Pakistan is very sensitive to the changes taking place in its surroundings.
It keeps on anticipating and responding to the changes continuously through its
unique services. The design of the Telenor Pakistan ensures the congruency
among the following subsets.

Individual work

From the employees of Telenor it has been confirmed that organizational design
of the company provides them with the opportunities of learning, growth,
accomplishment and self-fulfillment. Due to which they work with full
commitment to give their best to the organization.

Work-organization

The design of the work units and the job are supported by the strategic objectives
of the company. They ensure the full motivation of the employees.

Organizational environment

Since environment is continuously changing. To compete effectively it is

necessary the design of the organization should be able to adjust emerging
demand of the changing environment. Telenor organizational design is flexible
which adjust itself with the changes taking place outside the organization to
compete effectively.

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CULTURE

The culture at Telenor is top down, the top employees establishes the tone of the
organization. The top level employees take good care while performing any task
or action, because it will have to be followed by the subordinates. Things are
properly informed. There is no means of getting misinformation.

The employees are provided with the recreational activities, by sending to hilly
areas to get fresh and also perform certain work tasks which are to be completed
in normal routine. They get motivated well by having recreational activities. The
employees are provided by complete resources that if they move from one place,
they move as an office, they are provided with laptops as well.

Telenor Pakistan consists of energetic, youthful, and dedicated employees. An

appropriate match is required between the culture and employees at recruitment
and hiring. If people excellence (human resource department of Telenor) feels
that a person will not be unable to adjust into the organization’s environment,
even if he/she is performing functionally well, the person is rejected.

The dynamic group of people sharing similar mindsets, love being with each
other and meet on other occasions if unable to meet during work hours. They
employees can be seen roaming around till 9 at night.

Primarily culture comes from the top management. CEO of Telenor Pakistan is
humble and cooperative. The employees get the message that if the top
management is accommodating then the employees should behave similarly.
The values of humbleness and free interaction in putting forth ideas to a
harmonious culture and efficient communication. The management is easily
accessible to discuss various issues. It is difficult to distinguish between them as
the culture is so homogenous that it keeps everyone at par with others.

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The Human Resource at Telenor Pakistan is their core competency. The reason is
that the employees create a culture and all the achievements of Telenor are
attributed to its flexible culture. It is necessary to motivate and retain this asset of
the organization. For this purpose, training and compensation is provided to
employees along with other motivational techniques.

APPARENT CULTURE

Formal

The culture at Telenor is quite flexible, which is most suitable for the employees
on the other hand ensuring all the targets is met. Employees are not bound to
follow a dress code unless they are to attend a formal meeting. This culture has
been set by the CEO himself and the new employees coming into the
organization have no difficulties in adjusting into it.

Official rules

At Telenor Pakistan, the level of standardization and mutual adjustment varies

across functions. Generally strict obedience to rules is not required as long as
results are not affected. As long as individual responsibilities and deadlines are
met, there are flexible hours of work. Work is important instead of the number of
hours worked. Employees can select their work timings which can even be from
afternoon to evening. Instead of being bound by office hours, a sense of
responsibility is inculcated in them to achieve self assigned goals. This brings a
sense of comfort in working in such organizational structure.

Rules and procedures are present to control the behavior of employees and to
facilitate smooth working of the organization. A level of standardization is
required to be maintained in certain vital functions such as Budget Control. SOPs
are documented in the case of the financial control or HR related policies.

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TYPES OF CULTURE

A blend of different type of culture is practiced at Telenor. Since they believe

every type has its own advantages and disadvantages. They try to use the right
ones in the right manner and at the right time to improve efficiency.

 Communal culture

The culture at Telenor is communal. Everyone is integrated in decision making.

Employees are empowered. The employees are friendly to one another.
Employees are being empowered to carry out the task they way they like to. The
only concern is the accomplishment of required goals. Being empowered,
employees feel part of Telenor. As a result they work hard since they consider
organization’s success to be their success. 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

 Customer service culture

Telenor believes that its success mainly depends on the level of satisfaction of
customers. The more the customers are satisfied, the more customers they will be
able to attract and retain. As a result, their profits and market share will increase.

Telenor’s aim is to keep the customers satisfied as much as it can. For this reason
they have Customer Relation Department or Customer Service Centre the
different customer queries and complaints are raised daily by number of
customers which are dealt by this department. Sometimes, the employee’s
frustration increases as the workload or customer queries increases. This issue is
dealt with care at Telenor. Since the management believes that in service

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industry, customer delight can only be achieved if the employees are satisfied.
Only a satisfied employee can handle the customer with care.

 Diversity culture

Telenor Pakistan is keen 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 (according to the job requirements) is employed. At the office level or
call centers, even fresh graduates are apt but the director level requires a masters
degree and preferably some work experience. Telenor Pakistan has a large
proportion of females who are recruited for internal leadership development
programs and executive positions on the basis of past performance. The
organization is working on Day Care Centers to help female employees manage
their responsibilities after settling down. Relocation issues are dealt
cooperatively when female individuals move out of the city after marriage and
wish to continue working. They are relocated and facilitated in the new city.

There is an effective hiring process. Only those people are hired which the HR
department would believe can easily blend into the culture of the organization.
This ensures harmony within the whole culture effectively manages diversity.

 Creativity culture

Innovation and novelty, mainly in the areas of business processes, customer

satisfaction and goal setting, is highly encouraged at Telenor. Employees are also
motivated to come up with innovative ideas and to convey them to the upper

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management. If the ideas are feasible enough to be implemented then they are
applied to respective areas and the employees are duly rewarded for their
contributions. For example the sales personnel have a greater interaction with
customers and knowledge of their needs. They can convey this information to
the management who can use it to design better consumer packages.

Efficiency is achieved through maximum utilization of resources and also

through adherence to goals set by the top management. Telenor introduced the
Six Sigma program for the improvement of its business operations in the very
first year of its operations in Pakistan. This has helped the organization in
maintaining its quality standards and also in the up gradation of its business
processes.

Telenor Pakistan is a young and progressive organization which has a multitude

of strengths in its existing organizational design. There are still a few weaknesses
which can affect the organization in the long-run. Beginning with the strengths,
there are no communication barriers. There are seven layers in the organization
so one would believe that there would be a lot of communication barriers
between the employees and their superiors but that is not the case. The policies
adopted ensure that there are no communication barriers present. They include
an open door policy and open work environment where the managers sit with
their sub-ordinates and do not have separate offices. Also employees of the same
level have no cubicles so it helps in enhancing the communication amongst them.
Employees are encouraged to take initiatives and come up with new ideas.
Empowerment exists. Also these ideas can easily be communicated to their
superiors. Employees are free to express themselves. The span of control also
suggests that not all powers rest with any particular individual. In projects
people are encouraged to come up with the best possible solutions and the
manager just oversees the performance of employees. The SOPs and guidelines
have to be followed in order to ensure smooth functioning of all departments.

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STATEMENT OF ITS VALUES OR PHILOSOPHY

The statement of values or philosophy which is commonly known as to be the

core values of Telenor has been made. It includes four points n which Telenor
operates worldwide:

1. 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.

2. Keep promises

Everything we set out to do should work, or if it doesn’t, we are here to help. We

are about delivery, not over promising, actions not words.

3. 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.

4. Be respectful

We acknowledge and respect local cultures. We do not impose one formula

worldwide. We want to be a part of local communities whenever we operate. We
believe loyalty has to be earned.

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ETHICS

While making any decision, Telenor Pakistan has been ethically conscious. Since
Telenor (the parent company) has its origin in Norway, a society with a soft-
oriented and feminine culture, Telenor Pakistan acknowledged its moral and
ethical duty towards its stakeholders and society. Telenor Pakistan will not resort
to bribery or illegal offers to accept any decision, values will not be
compromised. If the organization believes it is not ethically right, it will never
take that decision.

In most of the advertisement, they project themselves as the care taker of the
values of Pakistani people, so they claim to cherish the core cultural norms and
values of the Pakistani people. When the cartoon controversy arose, Telenor
condemned such action mocking religious beliefs and portrayed this on their
building.

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ORGANIZATIONAL STRUCTURE

Hierarchical levels

The organic structure of Telenor Pakistan promotes cultural values that result in
integration and coordination. 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.

Structure of Telenor Pakistan

 Span of control

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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. There are two types of span of control:

 Wide span of control

 Narrow span of control

The HR and finance department have a narrow span of control but marketing
and customer relation have a wide span of control.

 Chain of command

Chain of command means a continuous line of authority extending from top to

bottom. Telenor Pakistan has a clear chain of command which helps in getting
good results for Telenor.

 Integration

Cross-functional teams are a major integrating mechanism. Further there are

temporary project teams. Team-building is enhanced by Away Days when
members of different divisions and departments take some days away from
work to meet other geographically spread employees of Telenor. Sometimes the
whole department goes away from work for 2-3 days to have fun. Employees get
to know those with whom they have communicated before but not met in
person. Formal team evaluation does not exist. Employees on teams are
rewarded individually.

 Departmentalization

Telenor Pakistan has several departments in its organization. Each department

has its own importance. Some of the departments are as follows:

 Customer Relation Department

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  Human Resource Department
 Marketing Department
 Finance Department
 Information Technology Department

 Standardization

At Telenor Pakistan, the level of standardization and mutual adjustment varies

across functions. Generally strict obedience to rules is not required as long as
results are not affected. As long as individual responsibilities and deadlines are
met, there are flexible hours of work.

Work is important instead of the number of hours worked. Employees can select
their work timings which can even be from afternoon to evening. Instead of
being bound by office hours, a sense of responsibility is inculcated in them to
achieve self assigned goals. This brings a sense of comfort in working in such
organizational structure.

Rules and procedures are present to control the behavior of employees and to
facilitate smooth working of the organization. A level of standardization is
required to be maintained in certain vital functions such as Budget Control. SOPs
(standard operating procedures) are documented in the case of the financial
control or HR related policies.

Genuine requests from external customers are taken into account by the CRO
(Customer Relationship Officer) at Service Centers. The CRO does all they can or
is possible within authority to process the request or complaint. If the customer’s
request is beyond the authority of the CRO, then managers are there to aid the
customer or provide some sort of non monetary compensation to appease him.

 Centralization and decentralization

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Apart from strategy, all other functions are de-centralized. People at Telenor
Pakistan are motivated to take their responsibilities especially in cross functional
projects. Managers in each department oversee that the employees take up their
roles and duties and their performance is monitored accordingly.

 Empowerment

The level of empowerment differs across departments and divisions, depending

on the nature of work. It varies according to the style of management of
functions. IT increases the level of empowerment. Within the network service of
the Telenor in Pakistan, there is a (inter and intra net) portal system used to
communicate information efficiently. An online HR MS System is being used
internally. This locally built system was launched last year but is still not well
integrated at present.

 Conflict resolution

When different departments work together in an organization, their interests

may differ due to functional and structural differences. Due to these variations,
conflicts among departments are inevitable. The issues are not taken to the top
management and there is no coordination post in the organization which can
facilitate the departments to increase coordination with each other. Whenever a
conflict arises among functions, the heads or managers from those functions sit
together and discuss the source of conflict. They try to resolve all their
differences amicably. If, however, a major issue arises which they are unable to
resolve themselves then it is taken to a level higher. The management then
discusses the reason for the conflict, addresses the concerns of both the parties
and then arrives at a conclusion which is in the interest of all departments.

 Formalization

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There is no formalization at Telenor Pakistan. High level and lower
administration work together as a team.

 Flow of information

Telenor has very liberal and free flowing information unless it is not private. This
helps in breaking the communication barriers and generation of new and
innovative ideas from employees. The free flow of information also helps them in
understanding the current situation to act accordingly.

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TECHNOLOGY

Telenor Pakistan for further enhancements in technology especially in data

capability over the core GPRS / GSM network will be provided in both networks
with the installation of Enhanced Data for Global (GSM) Evolution technology.
This component of the two systems will be installed after the initial roll-outs and
will allow the subscribers to have the use of advanced mobile services such as
downloading video and music clips, full multimedia messaging, high-speed
color Internet access and email on the move.

EDGE network in Pakistan

EDGE is a 3G technology that can delivers broadband-like data speeds to mobile

devices. It allows subscribers to send and receive data, including digital images,
web pages and photographs, three times faster than that possible with an
ordinary GSM / GPRS network. Using EDGE, operators can handle three times
more subscribers than GPRS, triple their data rate per subscriber, or add extra
capacity to their voice communications.

Bill payments through Easy Paisa

The way the organization converts its Like, Telenor Pakistan and Tameer
Microfinance Bank together have announced the launch of Easypaisa, a uniquely
convenient and safe way for everyone to carry out financial transactions.
Easypaisa users will have the freedom to make bill payments and send and
receive money at thousands of outlets and in addition manage their bank
accounts over their mobile phones. Easypaisa combines the best from the
financial and mobile sectors, offering the first branchless banking solution of its
kind in Pakistan and neighboring countries. The Telenor Group is an

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international provider of high quality telecommunication, data and media
communication services.

Blackberry Service

Telenor and Research In Motion (RIM) announced the launch of the BlackBerry
solution in Pakistan. This technology smartphones, software and services to
allow easy wireless access to email, messaging, phone, organiser, web and
multimedia applications, as well as thousands of other business and lifestyle
applications. Telenor customers in Pakistan will now be able to enjoy the
freedom and productivity benefits of using BlackBerry®smartphones to stay
connected to people and information on the go.

All this shows that technology exist al all the levels of Telenor And they are
using state of the art technology. Telenor is pioneer in many things They were
also the first ones to reach remote areas where no other telecom company had
courage to Go.

Technology and Organizational Effectiveness

Technology usage at Telenor is for creating high value for the firm by making
sure its presence in all the organizational activities of Telenor.

 Input

By the use of technology at input level enables the each organizational function
of Telenor to handle relationships with outside stakeholders so that the Telenor
can effectively manage its specific environment.

 Conversion:

Technology helps to transforms inputs into outputs (high valued services).

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  Output

Use of technology at output level allows the Telenor to effectively dispose of

services to external stakeholders

Technical complexity and Organization Structure

As far as technical complexity of Telenor is concern it governs:

 High technical complexity

The conversion processes at Telenor for providing out in the form of services can
be programmed in advance and it is fully automated.

An organic structure is the appropriate structure for this type of technology as

we know that the Telenor Pakistan is more inclined towards the organic
structure.

Climate-friendly technology and virtual travel

As part of the climate change strategy, Telenor aims to increase awareness of

climate-friendly technology. In several of the markets they offer mobile music
stores. Downloading music instead of purchasing CDs helps to reduce CO2
emissions. Products and services also include alternatives to physical travel, such
as holding virtual meetings, video conferences and phone conferences.

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COMPONENTS OF PROCESS

Innovation mainly in the areas of business processes, customer satisfaction and

goal setting, is highly encouraged at Telenor. Employees are also motivated to
come up with innovative ideas and to convey them to the upper management. If
the ideas are feasible enough to be implemented then they are applied to
respective areas and the employees are duly rewarded for their contributions.

Efficiency is achieved through maximum utilization of resources and also

through obedience to goals set by the top management. Telenor introduced the
Six Sigma program for the improvement of its business operations in the very
first year of its operations in Pakistan. This has helped the organization in
maintaining its quality standards and also in the up gradation of its business
processes. Telenor Pakistan is a young and progressive organization which has a
multitude of strengths in its existing organizational design. There are still a few
weaknesses which can affect the organization in the long-run.

There are no communication barriers. There are seven layers in the organization
so one would believe that there would be a lot of communication barriers
between the employees and their superiors but that is not the case. The policies
adopted ensure that there are no communication barriers present. They include
an open door policy and open work environment where the managers sit with
their sub-ordinates and do not have separate offices. Also employees of the same
level have no cubicles so it helps in enhancing the communication amongst them.

Employees are encouraged to take initiatives and come up with new ideas:
empowerment exists. Also these ideas can easily be communicated to their
superiors. Employees are free to express themselves. The span of control also
suggests that not all powers rest with any particular individual. In projects

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people are encouraged to come up with the best possible solutions and the
manager just oversees the performance of employees. The SOPs and guidelines
have to be followed in order to ensure smooth functioning of all departments

Strong integration with in the organization has been a key success factor.

All conflicts are managed by the concerning departments and if not they are
taken one level above but there have been no such cases which have been
reported to the CEO. The managers of the concerned departments sit and come
up with a solution which is acceptable to both the departments. Social gatherings
also help in enhancing the integrating capabilities of the organization.

Employees are evaluated on the basis of individual evaluation. Even when they
are working in a group this ensures that there are no free riders.
Underperforming employees are provided with counseling sessions or shifted to
another position where they can perform in a more effective manner. All
employees are assigned specific roles and responsibilities for which they are held
accountable. There are no specific work hours but employees are supposed to
meet the specific deadline. This also increases the motivation level of the
employees as they are not bound yet increases their level of productivity as they
are motivated. This results in effective evaluation. Similarly there is an effective
hiring process. Only those people are hired which the HR department would
believe can easily blend into the culture of the organization. This ensures
harmony within the whole culture effectively manages diversity.

All the point discussed above lead to a flexible culture which is most suitable for
the employees on the other hand ensuring all the targets is met. Employees are
not bound to follow a dress code unless they are to attend a formal meeting. This
culture has been set by the CEO himself and the new employees coming into the
organization have no difficulties in adjusting into it.

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RECOMMENDATIONS

Dealing with challenges requires a coordinated effort so that the company is able
to sustain itself in the ever-changing competitive environment and continues to
provide superior value to the customers. The group recommends the following:

 There should be an effective employee exchange program even at the level

of middle management so the organization can share the level of skill and
expertise at all levels with the parent company
 Introduction of employees stock options would further enhance the
motivation level because then the employees too would have a stake in
the organization.
 ·In their workforce there should be a quota for the disabled people. This is
currently being practiced in the parent company. This would enhance the
image of the organization being socially responsible

employese itself rsponsible

each year emplese identify career goal (development goal) to line manager
if he need training then he get training
also he stay at different department
if salary at other department then increase with 50

job training
attachment with different attachment
both line manager concent
promotion :high performane rating if slot avaible
if not then wait
oppertuinity from different department
telenor believe horizontal development

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