Change Mgmt Project: TELENOR PAKISTAN

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    CHANGE MANAGEMENT Changing Workplace Behaviors

    Group Members:

    SHAHBAZ CHAUDHRYNAZISH SOHAILFAIZYAB SHAHID

    SHELLVY CHIRAGHHASEEB SHAH

    AMBER JOEL GILLHAMMAD LALI

    Resource Person

    MRS. TAHA AFZAL

    HAJVERY UNIVERSITY LAHORE

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    ACKNOWLEDGMENTS

    My first and foremost humble and gratitude to ALLAH thealmighty for giving me the valor to remain dedicated tomake this audit report.

    Apart from it I take the opportunity to acknowledge the real effortsof:First , we would like to thank MISS TAHA AFZAL , for her valuable

    support and encouragement which she has offered.

    Secondly to PRO PAKISTANI & SALMAN AHMED, CustomerRelations Officer, Telenor, Pakistan, who have provided us withvaluable information which helped us a lot in completion of thisreport.

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    TABLE OF CONTENTS

    15 Efficiency and innovation 16

    16 Conclusion 17

    17 References 21

    Sr# List Page

    1 Executive Summary 4

    2 Company Profile 53 Vision & Values 6

    4 Mission Statement 75 Culture 7

    6 Sources of Culture 8

    7 Motivating drivers 9

    8 Environmental Factors 109 Diversity 12

    10 Organizational Structure 1211 Building blocks of organizational structure 13

    12 Integrating Mechanism 15

    13 Standardization and Mutual adjustment 15

    14 Conflict resolution 16

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    EXECUTIVE SUMMARY

    Praise to be Allah Almighty , the one testing us all at all times and making

    decisions about what we dont know and cant know.

    Today it is impossible for a common man to run a business especially in this

    period of competition. This situation demands energetic, duly qualified

    experienced business administrators who could meet the challenges of this

    age of modernization. HAJVERY UNIVERSITY produces management

    specialists fully aware of the ins and outs of the business management, and

    capable of meeting the challenges of modern business environment.

    This report aims to analyze changing workplace behavior of a leadingtelecom operator in Pakistan: Telenor. Among various parameters, thepersonnel management and its characteristics will be discussed indetail along with the culture of organization. Strategies resulting fromthese variables will determine the effectiveness of the organization.

    The information collected will be critically analyzed to describe thestrengths and weaknesses of the organization. Possible recommendationswill be suggested in the end to manage the challenges faced by thedifferent hierarchical levels at Telenor Pakistan.

    We will like to add that the project will provide the readers and the listeners

    very high profile information about the marketing strategies as a whole and

    also about the organization Procter and Gamble. In the end we hope that the

    project will result very profitable both for the readers and Safeguard Soap.

    Your feedback in the end either critical or substantial will be highly

    appreciated.

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    COMPANY PROFILE

    TELENOR PAKISTAN

    Telenor Pakistan is 100% owned by Telenor ASA and adds on to its

    operations in Asia together with Thailand, Malaysia and Bangladesh. Theheadquarters are located in Islamabad. Telenor Pakistan launched itsoperations in March 2005 as the single largest direct Europeaninvestment in Pakistan, setting precedence for further foreigninvestments in the telecom sector. The company has covered severalmilestones over the past twenty eight months and grown in a number of directions, they have grown to become a leading telecom operator in thecountry. In fiscal year 2006, they have achieved nearly 200% growth inour subscriber base the highest in the industry by a wide margin. Theyare the fastest growing mobile network in the country, with coveragereaching deep into many of the remotest areas of Pakistan. In the most

    difficult terrain of the country, from the hilly northern areas to thesprawling deserts in the south, at times we are the only operatorconnecting the previously unconnected. They are keeping ahead byinvesting heavily in infrastructure expansion.

    With USD1 billion already invested, they have extended agreementswith there vendors for network expansion and services until 2009. Theagreements, with a potential to result in USD750 million worth of ordersfrom Telenor Pakistan, are some of the biggest of their kind in theindustry. They are spread across Pakistan, creating 2,500 direct and

    25,000-plus indirect employment opportunities. They have a network of 23 company-owned sales and service centers, more than 200franchisees and some 100,000 retail outlets. Telenor mobile phone usersis growing, from around 15 per cent in 2005 to close to 50 per cent in2007, the number of Telenor subscribers is growing even faster. TelenorPakistan is now acquiring more than 20,000 new subscribers every day!With coverage reaching deep into many of the remotest areas of

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    Pakistan, Telenor Pakistan is, in some places, the only operatorconnecting the previously unconnected.

    Telenor- head office Islamabad

    Telenor Pakistan CEO states:

    Telenor Pakistan is obviously different from the competition. Ourculture is different, our values are different and our focus on thefundamentals of business is different. Telenor Pakistan is fully involvedwith its key stakeholders and trusted as a friend of the community.

    Vision & Values

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

    Visionvision is simple: We're here to help

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

    The key to achieving this vision is a mindset where every one of usworks together: Making it easy to buy and use our services. Delivering

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    on our promises. Being respectful of differences. Inspiring people to findnew ways.

    We believe in four core values:

    Make it EasyWe're practical. We don't complicate things. Everything we produce

    should be easy to understand and use. Because we never forget we'retrying to make customers' lives easier.

    Keep PromisesEverything we set out to do should work, or if it doesn't, we're here tohelp. We're about delivery, not over promising, actions not words.

    Be InspiringWe are creative. We strive to bring energy to the things we do.Everything we produce should look good, modern and fresh. We arepassionate about our business and customers.

    Be RespectfulWe acknowledge and respect local cultures. We do not impose oneformula worldwide. We want to be a part of local communities whereverwe operate. We believe loyalty has to be earned.

    MISSION STATEMENT OF TELENOR

    Telenor's primary goal is to create greater value for our shareholders,customers, employees and partners, and for society in general. We

    strive to be a driving force in creating, simplifying and introducingcommunication and content solutions to the marketplace.

    In order to achieve this goal, Telenor base its strategy on its customeroriented vision, ''Here to Help'' as well as its core values, ''Make it easy,Keep promises, Be inspiring' and Be respectful".

    CULTURE AT TELENOR

    The culture at Telenor is TOP DOWN, the top employees establishes thetone for the organization. The top level employees take good care whileperforming any task or action, because it will have to be followed by thesubordinates. Things are properly informed; there is no means forgetting misinformation.

    The employees are provided with the recreational activities, by sendingto hilly areas to getting fresh and also perform certain work tasks whichare to be completed in normal routine. They get motivated and work

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    well by having recreational activities. The employees are provided bycomplete resources that if they move from one place, they move as anoffice, they are provided with laptops as well.

    SOURCES OF CULTURE AT TELENOR PAKISTAN

    PEOPLE

    Telenor Pakistan consists of energetic, youthful and dedicated employeeaged 27 to 28 on average. An appropriate match is required betweenthe culture and employees at recruitment and hiring. If PeopleExcellence (Human Resource Department) feels that a person will not beunable to adjust into the organizations environment, even if he/she isperforming 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 even stay back late, employees can be seen roamingaround till 9 at night.

    Primarily the culture comes from the top management. CEO of TelenorPakistan is humble and cooperative. The employees get the messagethat if the top management is so accommodating then the employeesshould behave similarly. What is important to the CEO becomesimportant for employees to identify completely with the organization.

    There are four foreigners in the top management but this does notcreate communication barriers. They are extra humble to others while

    individuals of a local origin are extra sensitive to them so no one feelsalienated. The values of humbleness and free interaction in putting forthideas lead to a harmonious culture and efficient communication. Themanagement is easily accessible to discuss various issues. It is difficultto distinguish between them as the culture is so homogeneous that itkeeps every one at par with others (no formal protocol is given).

    ORGANIZATIONAL ETHICS

    While making any decision, Telenor Pakistan has been ethicallyconscious.Since Telenor (the parent company) has is origins in Norway, a societywith a soft-oriented and feminine culture, Telenor Pakistanacknowledges its moral and ethical duty towards its stakeholders andsociety. Telenor Pakistan will not resort to bribery or illegal offers toaccept any decision; values will not be compromised to get licensed. If the organization believes it is not ethically right, it will never take thatdecision.

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    In most of advertisements they project themselves as the care taker of the values of Pakistani people, so they claim to cherish the core culturalnorms and values of the Pakistani people. When the cartoon controversyarose, Telenor condemned such actions mocking religious beliefs andportrayed this on their building.

    At Telenor, People Excellence reinforces the culture through the conceptof a LEGEND for individuals who have performed outstandingly. Thesebecome role models for other people and their examples are quoted onvarious occasions (forum or ceremonies), so every employee isinternally motivated to work harder.

    The new recruits are given orientation sessions where they are made tofamiliarize with the values and norms of the organization and how theycan contribute to the organization even better. They are also providedwith a Joining Book that comprises of the code of conduct and completestructure of policies and values.

    MOTIVATING DRIVERS

    EMPOWERMENT

    For employees to act appropriately there is employee motivation whichis natural growth from and employee empowerment. The employeeshired at Telenor are empowered enough that they can make decisions of the given projects or responsibility. If an employee is regularly able tocontribute thoughts, ideas and suggestions to problems at hand or

    regular work activities, that is a feeling of accomplishment which goes along way. It makes an employee feel as though he or she is importantand hence their motivation is elevated.

    Empowerment leads the employees to become responsible for theiractions because when they are delegated with the empowerment, theyare accountable for their dealings. If the decision taken is correct, thenno higher level employee can influence the decision taken. Soemployees work with devotion because they are satisfied.

    COMPENSATION

    Telenor Pakistan offers employees with good salary and incentivespackages in returns of the performance the employees are providing.

    The employees are awarded with high quality income in relation with thehigh quality performance. The compensation and the benefits are themotivating tools for some of the employees at Telenor that enhance theefficiency and working ability of the employees.

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    ENVIRONMENTAL FACTOR- PHYSICAL SETUP

    The environment is extremely robust and has a pattern to it. It trulystrengthens the working charisma of people at Telenor . I was reallydelighted to see the young work force that Telenor has hired, developedand put a lot of faith in.

    There are so many things to share, let me highlight few of them for you: The first thing that you notice upon setting foot on any floor of the

    building is the open seating culture, meaning that no offices, cubicles orcabins. The seats are not fixed! You can actually be sitting on first floorone day and the top floor on the next, without having the slightest of difficulties.

    As long as your laptop is connected, you are in office. Nonetheless, it isconsidered good to work while sitting with your team, to eliminatecommunication delays and allow ready access. The company facilitates

    its employees with a wireless network that also works in the buildingssurroundings I wont be surprised to see a Telenor employee sitting ona bench outside of the building to work.

    You will find plenty of meeting/conference rooms on every floor Whenasked; a gentleman on the floor told me that anyone can book anyconference/board room through a shared calendar, given that it is notoccupied.

    The board rooms are nicely equipped with latest tech gadgets ,including audio and video teleconferencing solutions and a self servicetea/coffee-station.

    Each floor has a shared printer room. One only needs to give a printcommand on their laptops and then walk over to the printer room tocollect their printouts (that applies for the CEO too). Print outs/Paper isonly allowed in extremely unavoidable situations. Employees areencouraged to print on both sides of the sheet, to avoid wastage.

    There are no office/tea boys to serve you on your seats. Employees areencouraged to fetch their own tea/coffee or water. By the way, thesekitchens are available at every floor too. Even the CEO makes his owncoffee!

    Everyone seemed friendly, cheerful, bright and most importantlyfocused on work. The general atmosphere was one of corporation, withpeople helping each other out, creating an air of exuberance that couldactually be felt.

    The Casual dress code of Telenor appealed to me the most, as Ipersonally believe one can perform better in casuals rather than the stiff suit and tie. I could see people with jeans and t-shirts, even managersand directors!

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    They have this bright caf that has tasty food to offer, along with fresh juices, a salad bar and a dessert station. This is self-service too.

    Gym facilities are available for both males and females (separatetimings) throughout Telenor Pakistan offices. A recreation room is alsoavailable in buildings, I was told.

    A mosque is also available as a separate facility for both men andwomen .

    EMPLOYEE MOTIVATION

    Underperforming managers are encouraged through coaching andcounseling by their respective directors or the director of PeopleExcellence. The turnover is not high as compared to that of the industry.

    There is no defined employee exchange program. Employees performingexceptionally well are taken up to work in the Telenor Group.

    Relocations are common in the organization: employees are transferredfrom People Excellence to Finance or from Procurement to CustomerRelations. Investment per employee is placed at the higher end of theindustry.

    Motivation by Money: Telenor Pakistan believes that money is one of the most important factor

    inmotivating there employees. They have a proper system to motivate

    therestaff by money.

    Categories:

    They have made 3 categories. Category A , Category B and Category C The employ falling the category A will be given a bonus of 5000plus his or her salary The employ falling in the category B will be a bonus of 3000 plushis or her salary. And In the category C 2000 plus salary. The method of selecting an employ that is which category he fallsis set by Telenor management. And for this purpose they have full time working monitoring teams.

    Motivation Other than Money: Arrangement of Motivational Seminars. Appreciation for good Work Arrangement of Continuous Recreational Activities. Annual Bonus

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    Medical Allowance Overtime Bonus Proper Vacations Sick Days Leave etc.

    DIVERSITY

    Telenor Pakistan is keen to promote diversity and has achieved goodresults in this area. Telenor has developed requirements for diversity inboth recruitment and our management development programs. There isan appropriate blend of less seasoned and experienced employees. Noquota has been assigned; the best-fit candidate (according to the jobrequirements) is employed. At the office level or call centers, even freshgraduates are apt but the director level requires a masters degree andpreferably some work experience.

    Telenor Pakistan has a large proportion of females who are recruited forinternal leadership development programs and executive positions onthe basis of past performance. The organization is working on Day CareCenters to help female employees manage their responsibilities aftersettling down. Relocation issues are dealt cooperatively when femaleindividuals move out of the city after marriage and wish to continueworking. They are relocated and facilitated in the new city.

    ORGANIZATIONAL STRUCTURE

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

    TYPE OF STRUCTURE: VERTICAL DIFFERENTIATION

    HIERARCHICAL LEVELS

    There are seven hierarchical levels as the size of the organizationapproaches 2500 to 3000 employees. Roles and responsibilities areclearly defined at the time of joining the organization; employees areselected against defined criteria. Roles can be added later but

    employees have a fair idea about their job responsibilities from thebeginning.

    Seven layers do not create communication or motivation problems dueto the open culture. There are no instances of de-motivation though incertain areas like Customer Relationship Department or CustomerService Centre different customer queries and complaints can raise

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    frustration levels. Managers in these departments intervene to solveproblems.

    Whenever an employee has a new idea, he/she is encouraged toapproach the management and share it with them. Idea drop boxes arealso placed at various locations where employees leave theirsuggestions. 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 whereinnovation is encouraged and new ideas about revenue concepts andcost efficiency can be discussed.

    Employees are welcome to participate and submit their ideas. If theideas handed in are feasible then they are implemented in theorganization (at country level or global level, depending on the nature of the proposal). Employees are then rewarded financially for their helpfulcontributions.

    SIX BUILDING BLOCKS OF ORGANIZATIONALSTRUCTURE:

    Work Specialization:

    As Telenor is a big organization so it has several departments. Some of them require people with specialized skills some not. Like theinformation technology dept require specialized person but the customerrelation department doesnt necessary require a specialized person. So

    to conclude Telenor Pakistan is based upon both specialist people andmulti skill people. It varies department to department.

    1. Both specialist and multi skill people required at TelenorPakistan.2. But its important to note that if a specialist person have someextra skill he will preferable given job at Telenor Pakistan.

    Departmentalization:

    Telenor Pakistan has several departments in its organization. Eachdepartment has its own importance. Just as a matter of example few of the names of the departments at telenor are as follows.

    1. Human Resource Department2. Customer Relation Department3. Marketing Department4. Finance Department

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    5. Information Technology Department etc.

    Chain of command:

    By chain of command we mean a continuous line of authority extendingfrom top to Bottom. Or in more simple words we can say that rights togive order to the subordinates.

    1. Telenor Pakistan has clear chain of command.2. Clear chain of command helps a lot in getting good results for

    Telenor.

    Span of control:

    The number of employees a manger can efficiently and effectively

    manager. There are two types of span of control1. Narrow Span of control2. Wide Span Control

    Again the span of control like the other things varies department todepartment.

    It is also worthwhile to note that the lower departments in Telenor havethe wider the span of control is and as it goes up to the highermanagement is starts getting shorter.

    For example the human resource department and finance department

    have narrow span of control But the marketing and customer relation department have a wide span

    of control.

    Centralization or Decentralization:

    There centralization at Telenor Pakistan what so ever. We can say that decentralization exists there (to some extent) as the

    subordinates are encouraged to take part in the decision making.

    Telenor Pakistan is a team organization and there is not one man showwhat so ever.

    Formalization:

    There is no formalization at Telenor Pakistan.

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    High level managers and lower administration work together as a teamat Telenor Pakistan.

    Sometime high level managers start his work on his laptop just sitting ona casual chair.

    Free Flow of information:

    Until or unless it is not private information Telenor Pakistan has a veryliberated and free flow of information.

    INTEGRATING MECHANISMS

    Cross-functional teams are a major integrating mechanism. Further

    there are temporary project teams. No ad-hoc committees have beenformed to date. Team-building is enhanced by Away Days when members of differentdivisions and departments take some days away from work to meetother geographically spread employees of Telenor. Sometimes the wholedepartment goes away from work for 2-3 days to have fun. Employeesget to know those with whom they have communicated before but notmet in person. Formal team evaluation does not exist. Employees onteams, for instance finance teams, are rewarded individually.

    STANDARDIZATION AND MUTUAL ADJUSTMENT

    At Telenor Pakistan, the level of standardization and mutual adjustmentvaries across functions. Generally strict obedience to rules is notrequired as long as results are not affected. As long as individualresponsibilities and deadlines are met, there are flexible hours of work.Work is important instead of the number of hours worked. Employeescan select their work timings which can even be from afternoon toevening. Instead of being bound by office hours, a sense of responsibilityis 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 employeesand to facilitate smooth working of the organization. A level of standardization is required to be maintained in certain vital functionssuch as Budget Control. SOPs are documented in the case of thefinancial control or HR related policies.

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    Genuine requests from external customers are taken into account by theCRO (Customer Relationship Officer) at Service Centers. The CRO doesall he/she can or is possible within authority to process the request orcomplaint. If the customers request is beyond the authority of the CRO,then managers are there to aid the customer or provide some sort of nomonetary compensation to appease him.

    CONFLICT RESOLUTION

    When different departments work together in an organization, theirinterests may differ due to functional and structural differences. Due tothese variations, conflicts among departments are inevitable. The issuesare not taken to the top management and there is no coordination postin the organization which can facilitate the departments to increasecoordination with each other. Whenever a conflict arises amongfunctions, the heads or managers from those functions sit together anddiscuss the source of conflict. They try to resolve all their differencesamicably. There are always conflicts between the technical andcommercial divisions which they mostly solve between themselves. If,however, a major issue arises which they are unable to resolvethemselves then it is taken to a level higher. The management thendiscusses the reason for the conflict, addresses the concerns of both theparties and then arrives at a conclusion which is in the interest of alldepartments.

    PROMOTING EFFICIENCY AND INNOVATION

    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 toconvey them to the upper management. If the ideas are feasible enoughto be implemented then they are applied to respective areas and theemployees are duly rewarded for their contributions. For example thesales personnel have a greater interaction with customers andknowledge of their needs. They can convey this information to themanagement who can use it to design better consumer packages.

    Efficiency is achieved through maximum utilization of resources andalso through adherence to goals set by the top management. Telenorintroduced the Six Sigma program for the improvement of its businessoperations in the very first year of its operations in Pakistan. This hashelped the organization in maintaining its quality standards and also inthe up gradation of its business processes.

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    CONCLUSION

    From our findings we found very interesting facts about Telenor Pakistanwhich serve as a competitive advantage for the company and many of them among them serve as a basis of its success in Pakistan.

    Telenor Pakistan is a young and progressive organization which has amultitude of strengths in its existing organizational design. There arestill 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 thatthere would be a lot of communication barriers between the employeesand their superiors but that is not the case. The policies adopted ensurethat there are no communication barriers present. They include an opendoor policy and open work environment where the managers sit withtheir sub-ordinates and do not have separate offices. Also employees of the same level have no cubicles so it helps in enhancing thecommunication amongst them.

    Employees are encouraged to take initiatives and come up with newideas: empowerment exists. Also these ideas can easily becommunicated to their superiors. Employees are free to expressthemselves. The span of control also suggests that not all powers restwith any particular individual. In projects people are encouraged tocome up with the best possible solutions and the manager just overseesthe performance of employees. The SOPs and guidelines have to befollowed in order to ensure smooth functioning of all departments

    Strong integration with in the organization has been a key successfactor.All conflicts are managed by the concerning departments and if not theyare taken one level above but there have been no such cases whichhave been reported to the CEO. The managers of the concerneddepartments sit and come up with a solution which is acceptable to boththe departments. Social gatherings also help in enhancing theintegrating capabilities of the organization.

    Employees are evaluated on the basis of individual evaluation. Evenwhen they are working in a group this ensures that there are no freeriders. Underperforming employees are provided with counselingsessions or shifted to another position where they can perform in a moreeffective manner. All employees are assigned specific roles andresponsibilities for which they are held accountable. There are nospecific work hours but employees are supposed to meet the specificdeadline. This also increases the motivation level of the employees as

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    they are not bound yet increases their level of productivity as they aremotivated. This results in effective evaluation .

    Similarly there is an effective hiring process . Only those people arehired which the HR department would believe can easily blend into theculture of the organization. This ensures harmony within the wholeculture effectively manages diversity.

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

    However, Telenor Pakistan is faced with a few challenges. At this point of time there is no employee exchange program which creates a barrierin exchanging skills and expertise with the parent company. Only the

    top level management comprises of foreigners and there are only fewcases where the managers from Pakistan have been taken abroad.

    This can act as a double edged weapon as young employees are easyto mould and are highly motivated on the other hand they might lackskills and expertise which are required to perform the task. In order totrain them for performing their tasks efficiently, extra resources have tobe spent.

    Moreover, the CEO being a foreigner would have difficulties inunderstanding the psychology of domestic employees. Also his ability to

    comprehend the overall situation of the domestic market would not beas strong compared to his competitors. Coming at par with competitorswould require utilization of extra resources.

    Dealing with challenges requires a coordinated effort so that thecompany is able to sustain itself in the ever-changing competitiveenvironment and continues to provide superior value to the customers.

    The group recommends the following:

    There should be an effective employee exchange program even at thelevel 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 themotivation level because then the employees too would have a stake inthe organization.

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    In their workforce there should be a quota for the disabled people. Thisis currently being practiced in the parent company. This would enhancethe image of the organization being socially responsible

    Pictorial Review: (Headquarter Islamabad)

    Head office Islamabad work benches- open culture

    Conference Room Kitchen

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    Common Room Reception