Impact Of Compensation On Organizational Growth

Abstract:
Human Resource Management is the organizational function that deals with issues related with
people such as compensation hiring, performance management, organizational development
,safety,benefits,employee motivation, communication, administration training and performance.
We will study one of its variable compensation and its dimensions. We will find out impact of
compensation on organization (Telenor). We will collect data, make questionnaire and conduct
interview from the manager and employees of Telenor. Further we will discuss the impact of
salary,working conditions effect the Telenor. The research will help us to understand the
compensation procedure of Telenor under certain limitations.

Introduction:
History:
Telenor started off in 1855 as a state-operated monopoly, named Telegrafverket as a provider of
telegraph services. The first ideas for a telegraph were launched within the Royal Norwegian
Navy in 1848, but by 1852 the plans were public and the Parliament of Norway decided on a
plan for constructing the telegraph throughout the country. Televerket began by building from
Christiania (now Oslo) to Sweden (Norway was at that time in a union with Sweden) as well as
between Christiania and Drammen. By 1857 the telegraph had reached Bergen (west coast) via
Sørlandet (south coast) and by 1871 it had reached Kirkenes (north coast). Cable connections
were opened to Denmark in 1867 and to Great Britain in 1869. The telegraph was most
important for the merchant marine who now could use the electric telegraph to instantly
communicate between different locations, and get a whole new advantage within logistics.
Telenor headquarters in Fornebu, Norway.
History in Pakistan:

Telenor Pakistan is a wholly owned subsidiary that started operations on the 15th of March 2005
and holds one of six mobile licences in Pakistan. It's also the fastest growing cellular network of
Pakistan - this may be attributed to their aggressive marketing and advertising campaign.
Currently, Telenor holds the second largest GSM and the largest GPRS and EDGE coverage in
Pakistan which competes with Ufone. with the recent launch of its nationwide EDGE-enabled
network. It has achieved the third largest retailer network in Pakistan within the 2 years span of
its operations and has started operations in northern areas of Pakistan and in Azad Kashmir
(AK). Telenor had reached its breakeven in the first quarter of 2007. Telenor proactively
participated in the earthquake disaster relief, and carried out a campaign for the welfare of flood
victims in Balochistan. The current CEO of Telenor Pakistan is Christian Albech. The company
continues to contribute to Pakistan's economy. It has created 2,500 direct and 25,000 plus
indirect jobs and has a network of 29 sales & service centers, more than 250 franchises and some
150,000 retailers, thus providing a means to livelihood to thousands.
For 2009 it is estimated that Telenor Pakistan contributed Rs20 billion in various 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 Group
is among the largest mobile operators in the world with over 179 million mobile subscriptions
and a workforce of approximately 40,000.Telenor Pakistan is the country's single largest
European investor, with investments in excess of US$2 billion. It acquired a GSM license in
2004 and began commercial operations on March 15, 2005.
Offering mobile financial services:

Telenor Pakistan acquired 51% of Tameer Microfinance Bank in November 2008. In 2009 it
launched 'easypaisa' to become Pakistan's first telecom operator to partner with a bank to offer
mobile financial services across Pakistan.

Contributing to Pakistan's economy:

The company continues to contribute to Pakistan's economy. It has created 2,500 direct and
25,000 plus indirect jobs and has a network of 29 sales & service centers, more than 250
franchises and some 150,000 retailers, thus providing a means to livelihood to thousands.
For 2009 it is estimated that Telenor Pakistan contributed Rs20 billion in various forms of direct
and indirect taxes to the economy of Pakistan.

Internet service provider:

Telenor Pakistan provides wide EDGE connectivity across the country. It has one of the largest
data networks (GPRS) in Pakistan providing Internet services to customers.

Today:

Telenor Pakistan has grown to become a leading mobile communications services provider of the
country.Telenor Pakistan's corporate headquarters are in Islamabad, with regional offices in
Karachi, Lahore, Faisalabad, Multan, and Hyderabad.

Corporate Responsibility:

Telenor Pakistan's flagship corporate responsibility program, Khuddar Pakistan, aims to create
dignified opportunities for persons with disabilities. The purpose is to become the most disabled-
friendly organization in Pakistan in terms of employment, service, and community support.

Environmentally conscious:

Telenor Pakistan has taken and continues to implement a number of environmentally-friendly

initiatives. These include mainstreaming energy efficiency and alternate energy solutions, and
implementing occupational health & safety practices that comply with international standards.
Vision & Value:

Our vision crystallizes our customer focus as the cornerstone of everything we do. Our values
describe what behaviors are necessary to realize that vision. Our corporate responsibility mindset
ensures that our vision and values nurture social concern and help us create shared value.

Our Vision:

Our vision is simple: We're here to help.

We exist to help our customers get the full benefit of communications services in their daily
lives.

The key to achieving this vision is a mindset where every one of us works together: Making it
easy to buy and use our services. Delivering on our promises. Being respectful of differences.
Inspiring people to find new ways.

We believe in four core values:

Make it Easy:

We're practical. We don't complicate things. Everything we produce should be easy to

understand and use. Because we never forget we're trying to make customers' lives easier.

Keep 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:

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.
What is compensation?
Compensation is what employees receive in exchange for their contribution to the organization.
Compensation forms such as bonuses, commissions, and profit sharing plans are incentives
designed to encourage employees to produce results beyond normal expectation. (Michael A.
McDaniel 2007)
Benefits such as insurance, medical, recreational, retirement, etc.
"Growth in an organization is mostly determined by it the kind of compensation and benefits
given at workplace”Agbato (1980)

Dimensions:
Dimensions of compensation are
 Salary
 Incentives
 Working conditions
 Benefits

Problem statement:
A study of compensation and its effect in Telenor telecommunication growth.

Variables:
Compensation is an independent variable
Organizational growth is dependent variable.
Organizational growth is dependent on compensation.

Research question:
What are the impacts of compensation on organizational growth?

Hypothesis:
Ho compensation has not effect on organizational growth.
H1 Compensation has an effect on organizational growth.
 Research Methodology:

Methods of collecting Data:

There are two methods to collect data.

 Primary Data Method.

Data observed or collected directly from first-hand experience.
 Secondary Data Method.
Published data and the data collected in the past or other parties is called secondary data.

We conduct our research project on the basis of primary data.

There are 2 ways to collect primary data.

1) OBSERVATION
a) Natural setting
b) Field experiment

2) COMMUNICATION
a) Personal interview
b) Telephone Interview
c) Self-administered Questionnaire

We collect primary data through Self-Administered Questionnaire.

Sources of Data:
We will design the list of telenor franchises in Faisalabad and then we will visit main office and
all sub offices. We will conduct interviews with managers and prepare questionnaire to Telenor
employees.
Sample Size:

The methodology used to sample from a larger population will depend on the type of analysis
being performed, but will include simple random sampling, systematic sampling and
observational sampling.
“A process used in statistical analysis in which a predetermined number of observations
will be taken from a larger population”.

Z 2* (p) * (1-p)
ss = ----------------------
c2
Where:
Z = Z value (e.g. 1.96 for 95% confidence level)
p = percentage picking a choice, expressed as decimal
(.5 used for sample size needed)
c = confidence interval, expressed as decimal
(e.g., .04 = ±4)

The sample should be a representation of the general population.

Our reseach will be based on census sampling.

Where as census means,

“Collection of data from a whole population rather than just a sample”.

The employment estimates are weighted on the basis of the latest Census of Employment,
according to the following formula:

where,
Eir(t)=employment estimate for industry i, region r, at time t,
Cir(t)=Census estimate,
s=size range,
W=weight,
eirs(t)=sample employment at time t,
eirs(0)=sample employment at Census time.

We have visited all the Faisalabad Telenor frenchises,and have found that round about 57
permanent employees performing their services.Then we distribute our
Self-Administered Questionnaire.
Location:

We have visited 5 Main Frenchises of Telenor telecommunication,and their addresses are given
below;

1) ARCADE 2, SUSAN ROAD, MADINA TOWN, FAISALABAD.

2) 704B, BATALA COLONY ROAD, PEOPLES COLONY #2, SATAYANA ROAD,

FAISALABAD.

3) SAHIL BUILDING, 1 SHEIKHPURA ROAD, FAISALABAD.

4) SHOP # 3 &4, GROUND FLOOR, JKB, BUSINESS CENTER, NEAR AGHA

KHAN LABS, JAIL ROAD.

5) P-17 Rab Nawaz chowk, Narwala Road near bara Qabristan, Ghulamabad,
Faisalabad.

We met all the managers of that frenchises and conduct interviews,and after the permission
of managers we distribute the questionnaire to all the employees,and get our primary dat.

Data Analysis Method:

The process of evaluating data using analytical and logical reasoning to examine each
component of the data provided. This form of analysis is just one of the many steps that must be
completed when conducting a research experiment. Data from various sources is gathered,
reviewed, and then analyzed to form some sort of finding or conclusion. There are a variety of
specific data analysis method, some of which include data mining, text analytics, business
intelligence, and data visualizations.
After the data are collected, evaluators need to see whether their expectations regarding data
characteristics and quality have been met. Choice among possible analyses should be based
partly on the nature of the data--for example, whether many observed values are small and a few
are large and whether the data are complete. If the data do not fit the assumptions of the methods
they had planned to use, the evaluators have to regroup and decide what to do with the data they
have.\2 A different form of data analysis may be advisable, but if some observations are
untrustworthy or missing altogether, additional data collection may be necessary.

There are lot of method for data analysis given below.

Bivariate Analysis
Bivariate analysis is the simultaneous analysis of two variables. It is usually undertaken to see if
one variable is related to another variable. Multivariate analysis is the simultaneous analysis of
three or more variables. It is frequently done to refine a bivariate analysis, taking into account the
possible influence of a third variable on the original bivariate relationship. Multivariate analysis
is also used to test the joint effects of two or more variables upon a dependent variable

Mean analysis:
In statistics, the mean is the mathematical average of a set of numbers. The average is calculated
by adding up two or more scores and dividing the total by the number of scores.
Consider the following number set: 2, 4, 6, 9, 12. The average is calculated in the following
manner: 2 + 4 + 6 + 9 + 12 = 33 / 5 = 6.6. So the average of the number set is 6.6.

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