CHANGE MANAGEMENT – Changing Workplace Behaviors
Group Members: SHAHBAZ CHAUDHRY NAZISH SOHAIL FAIZYAB SHAHID SHELLVY CHIRAGH HASEEB SHAH AMBER JOEL GILL HAMMAD LALI Resource Person MRS. TAHA AFZAL
HAJVERY UNIVERSITY LAHORE
ACKNOWLEDGMENTS
My first and foremost humble and gratitude to “ALLAH” the almighty for giving me the valor to remain dedicated to make this audit report. Apart from it I take the opportunity to acknowledge the real efforts of: 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, Customer Relations Officer, Telenor, Pakistan, who have provided us with valuable information which helped us a lot in completion of this report.
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TABLE OF CONTENTS
Sr# 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Executive Summary Company Profile Vision & Values Mission Statement Culture Sources of Culture Motivating drivers Environmental Factors Diversity Organizational Structure
List
Page 4 5 6 7 7 8 9 10 12 12 13 15 15 16 16 17 21
Building blocks of organizational structure Integrating Mechanism Standardization and Mutual adjustment Conflict resolution Efficiency and innovation Conclusion References
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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 don‟t know and can‟t 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 leading telecom operator in Pakistan: Telenor. Among various parameters, the personnel management and its characteristics will be discussed in detail along with the culture of organization. Strategies resulting from these variables will determine the effectiveness of the organization. The information collected will be critically analyzed to describe the strengths and weaknesses of the organization. Possible recommendations will be suggested in the end to manage the challenges faced by the different 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. The headquarters are located in Islamabad. Telenor Pakistan launched its operations in March 2005 as the single largest direct European investment in Pakistan, setting precedence for further foreign investments in the telecom sector. The company has covered several milestones over the past twenty eight months and grown in a number of directions, they have grown to become a leading telecom operator in the country. In fiscal year 2006, they have achieved nearly 200% growth in our subscriber base – the highest in the industry by a wide margin. They are the fastest growing mobile network in the country, with coverage reaching deep into many of the remotest areas of Pakistan. In the most difficult terrain of the country, from the hilly northern areas to the sprawling deserts in the south, at times we are the only operator connecting the previously unconnected. They are keeping ahead by investing heavily in infrastructure expansion. With USD1 billion already invested, they have extended agreements with there vendors for network expansion and services until 2009. The agreements, with a potential to result in USD750 million worth of orders from Telenor Pakistan, are some of the biggest of their kind in the industry. 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 200 franchisees and some 100,000 retail outlets. Telenor mobile phone users is growing, from around 15 per cent in 2005 to close to 50 per cent in 2007, the number of Telenor subscribers is growing even faster. Telenor Pakistan is now acquiring more than 20,000 new subscribers every day! With coverage reaching deep into many of the remotest areas of Pakistan, Telenor Pakistan is, in some places, the only operator connecting the previously unconnected.
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Telenor- head office Islamabad
Telenor Pakistan CEO states: “Telenor Pakistan is obviously different from the competition. Our culture is different, our values are different and our focus on the fundamentals of business is different. Telenor Pakistan is fully involved with its key stakeholders and trusted as a friend of the community.”
Vision & Values 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.
Vision 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.
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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. 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 introducing communication and content solutions to the marketplace. In order to achieve this goal, Telenor base its strategy on its customer oriented 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 the tone for 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 for getting misinformation. The employees are provided with the recreational activities, by sending to hilly areas to getting fresh and also perform certain work tasks which are to be completed in normal routine. They get motivated and work well by
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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.
SOURCES OF CULTURE AT TELENOR PAKISTAN PEOPLE Telenor Pakistan consists of energetic, youthful and dedicated employee aged 27 to 28 on average. An appropriate match is required between the culture and employees at recruitment and hiring. If People Excellence (Human Resource Department) 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 workhours. They even stay back late, employees can be seen roaming around till 9 at night. Primarily the 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 so accommodating then the employees should behave similarly. What is important to the CEO becomes important for employees to identify completely with the organization. There are four foreigners in the top management but this does not create communication barriers. They are extra humble to others while individuals of a local origin are extra sensitive to them so no one feels alienated. The values of humbleness and free interaction in putting forth ideas lead 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 homogeneous that it keeps every one at par with others (no formal protocol is given). ORGANIZATIONAL ETHICS While making any decision, Telenor Pakistan has been ethically conscious. Since Telenor (the parent company) has is origins in Norway, a society with a soft-oriented and feminine culture, Telenor Pakistan acknowledges its moral and ethical duty towards its stakeholders and society. Telenor Pakistan will not resort to bribery or illegal offers to accept any decision;
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values will not be compromised to get licensed. If the organization believes it is not ethically right, it will never take that decision. In most of advertisements 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 actions mocking religious beliefs and portrayed this on their building. At Telenor, People Excellence reinforces the culture through the concept of a „LEGEND‟ for individuals who have performed outstandingly. These become role models for other people and their examples are quoted on various occasions (forum or ceremonies), so every employee is internally motivated to work harder. The new recruits are given orientation sessions where they are made to familiarize with the values and norms of the organization and how they can contribute to the organization even better. They are also provided with a Joining Book that comprises of the code of conduct and complete structure of policies and values. MOTIVATING DRIVERS EMPOWERMENT For employees to act appropriately there is employee motivation which is natural growth from and employee empowerment. The employees hired at Telenor are empowered enough that they can make decisions of the given projects or responsibility. If an employee is regularly able to contribute thoughts, ideas and suggestions to problems at hand or regular work activities, that is a feeling of accomplishment which goes a long way. It makes an employee feel as though he or she is important and hence their motivation is elevated. Empowerment leads the employees to become responsible for their actions because when they are delegated with the empowerment, they are accountable for their dealings. If the decision taken is correct, then no higher level employee can influence the decision taken. So employees work with devotion because they are satisfied. COMPENSATION Telenor Pakistan offers employees with good salary and incentives packages in returns of the performance the employees are providing. The
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employees are awarded with high quality income in relation with the high quality performance. The compensation and the benefits are the motivating tools for some of the employees at Telenor that enhance the efficiency and working ability of the employees. ENVIRONMENTAL FACTOR- PHYSICAL SETUP The environment is extremely robust and has a pattern to it. It truly strengthens the working charisma of people at Telenor. I was really delighted to see the young work force that Telenor has hired, developed and 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 or cabins. The seats are not fixed! You can actually be sitting on first floor one 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 is considered good to work while sitting with your team, to eliminate communication delays and allow ready access. The company facilitates its employees with a wireless network that also works in the building‟s surroundings – I won‟t be surprised to see a Telenor employee sitting on a bench outside of the building to work. You will find plenty of meeting/conference rooms on every floor – When asked; a gentleman on the floor told me that anyone can book any conference/board room through a shared calendar, given that it is not occupied. The board rooms are nicely equipped with latest tech gadgets, including audio and video teleconferencing solutions and a self service tea/coffee-station. Each floor has a shared printer room. One only needs to give a print command on their laptops and then walk over to the printer room to collect their printouts (that applies for the CEO too). Print outs/Paper is only allowed in extremely unavoidable situations. Employees are encouraged to print on both sides of the sheet, to avoid wastage. There are no office/tea boys to serve you on your seats. Employees are encouraged to fetch their own tea/coffee or water. By the way, these kitchens are available at every floor too. Even the CEO makes his own coffee! Everyone seemed friendly, cheerful, bright and most importantly focused on work. The general atmosphere was one of corporation, with people helping each other out, creating an air of exuberance that could actually be felt.
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The Casual dress code of Telenor appealed to me the most, as I personally believe one can perform better in casuals rather than the stiff suit and tie. I could see people with jeans and t-shirts, even managers and directors! They have this bright café 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 (separate timings) throughout Telenor Pakistan offices. A recreation room is also available in buildings, I was told. A mosque is also available as a separate facility for both men and women.
EMPLOYEE MOTIVATION Underperforming managers are encouraged through coaching and counseling by their respective directors or the director of People Excellence. The turnover is not high as compared to that of the industry. There is no defined employee exchange program. Employees performing exceptionally well are taken up to work in the Telenor Group. Relocations are common in the organization: employees are transferred from People Excellence to Finance or from Procurement to Customer Relations. Investment per employee is placed at the higher end of the industry. Motivation by Money: Telenor Pakistan believes that money is one of the most important factor in motivating there employees. They have a proper system to motivate there staff 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 5000 plus his or her salary The employ falling in the category B will be a bonus of 3000 plus his or her salary. And In the category C 2000 plus salary. The method of selecting an employ that is which category he falls is set by Telenor management. And for this purpose they have full time working monitoring teams. Motivation Other than Money: Arrangement of Motivational Seminars.
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Appreciation for good Work Arrangement of Continuous Recreational Activities. Annual Bonus Medical Allowance Overtime Bonus Proper Vacations Sick Days Leave etc.
DIVERSITY
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 our 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. ORGANIZATIONAL STRUCTURE The organic structure of Telenor Pakistan promotes cultural values that result in integration and coordination.
TYPE OF STRUCTURE: VERTICAL DIFFERENTIATION
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.
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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.
SIX BUILDING BLOCKS OF ORGANIZATIONAL STRUCTURE: Work Specialization:
As Telenor is a big organization so it has several departments. Some of them require people with specialized skills some not. Like the information technology dept require specialized person but the customer relation department doesn‟t necessary require a specialized person. So to conclude Telenor Pakistan is based upon both specialist people and multi skill people. It varies department to department. 1. Both specialist and multi skill people required at Telenor Pakistan. 2. But it‟s important to note that if a specialist person have some extra skill he will preferable given job at Telenor Pakistan.
Departmentalization:
Telenor Pakistan has several departments in its organization. Each department 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 Department
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2. 3. 4. 5.
Customer Relation Department Marketing Department Finance Department Information Technology Department etc.
Chain of command:
By chain of command we mean a continuous line of authority extending from top to Bottom. Or in more simple words we can say that rights to give 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 control 1. 2. Narrow Span of control Wide Span Control
Again the span of control like the other things varies department to department. It is also worthwhile to note that the lower departments in Telenor have the wider the span of control is and as it goes up to the higher management 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 show what so ever.
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Formalization:
There is no formalization at Telenor Pakistan. High level managers and lower administration work together as a team at Telenor Pakistan. Sometime high level managers start his work on his laptop just sitting on a casual chair.
Free Flow of information:
Until or unless it is not private information Telenor Pakistan has a very liberated 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 been formed to date. 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, for instance finance teams, are rewarded individually.
STANDARDIZATION AND MUTUAL ADJUSTMENT
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.
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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. Genuine requests from external customers are taken into account by the CRO (Customer Relationship Officer) at Service Centers. The CRO does all he/she 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 no monetary compensation to appease him.
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. There are always conflicts between the technical and commercial divisions which they mostly solve between themselves. 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.
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 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. 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.
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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.
CONCLUSION From our findings we found very interesting facts about Telenor Pakistan which 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 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 subordinates 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 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.
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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. However, Telenor Pakistan is faced with a few challenges. At this point of time there is no employee exchange program which creates a barrier in exchanging skills and expertise with the parent company. Only the top level management comprises of foreigners and there are only few cases where the managers from Pakistan have been taken abroad. This can act as a double edged weapon as young employees are easy to mould and are highly motivated on the other hand they might lack skills and expertise which are required to perform the task. In order to train them for performing their tasks efficiently, extra resources have to be spent. Moreover, the CEO being a foreigner would have difficulties in understanding the psychology of domestic employees. Also his ability to comprehend the overall situation of the domestic market would not be as strong compared to his competitors. Coming at par with competitors would require utilization of extra resources. 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:
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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
Pictorial Review: (Headquarter Islamabad)
Head office Islamabad
work benches- open culture
Conference Room
Kitchen
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Common Room
Reception
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