Employee Engagement

A

SUMMER TRAINING REPORT

ON

“EMPLOYEE ENGAGEMENT”

Conducted at

“BHARTI AIRTEL LTD CHANDIGARH”

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

(SESSION 2009-2011)

UNDER THE SUPERVISION OF:

SUBMITTED BY:

Dr. Shefali Verma Ashima Khera

Assistant Lecturar ROLL NO:12097150

SUBMITTED TO:

M. M. INSTITUTE OF MANAGEMENT

MAHARISHI MARKANDESHWAR UNIVERSITY,

MULLANA - 133207 HARYANA

A

TRAINING PROJECT REPORT

ON

EMPLOYEE ENGAGEMENT

BHARTI ENTERPRISE LIMITED.

ASHIMAROLL NO. 12097150

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INTRODUCTORY PAGES

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PREFACE

M.B.A is stepping – stone to management career. In order to a c h i e v e p r a c t i c a l , p o s i t i v e a n d c o n c r e t e r e s u l t s t h e theoretical knowledge must be supplemented with exposure to real environment. Theoretical knowledge without practical knowledge is of l i t t le value. Theoret ical s tudies in c lass room are not suff ic ient to understand the funct ioning of h u m a n r e s o u r c e c o n c e p t s . T h e r e f o r e , i t b e c a m e n e c e s s a r y t o undergo any project work. Practical project supplements the theoretical studies i .e., i t covers what is left uncovered in the classroom. It exposes a student invaluable treasure of experiences.

I took my projec t work wi th compara t ive s tudy. Projec t w o r k i s a p a r t o f o u r c u r r i c u l u m , w h i c h h e l p u s t o correlate our theoretical concepts with practical experiences.

T h e t o p i c t h a t I h a v e t a k e n f o r p r o j e c t i s “ E M P L O Y E E E N G A G E M E N T A T A I R T E L ”. Accompl ishment and achievement of goals is the major aim of any organization. This goal is achieved by proper planning.

ACKNOWLEDGEMENT

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The preparation of this project report has been a great learning experience for me. It has given me an opportunity to interact with some of the excellent human beings. My work could not have been done without the guidance, help and support of a lot of people.

I wish to express my profound gratitude to Mr. A.P. SHARMA Deputy General Manager Airtel for giving me an excellent opportunity to work at Bharti Airtel Limited and carry out the project work under his supervision.

I express my sincerest gratitude to my company guide Mr. PARAMJEET SINGH LONGIA Assistant Manager and my trainer Mr. PANCHAM, for his encouragement, support and valuable guidance throughout the project duration. The project area was entirely unknown to me and it required lot of knowledge and guidance. In spite of being fraught with unending engagements in office, they kept me motivating to try best at all times.

Lastly, I would like to thank Mmu Mullana & Bharti Airtel Limited for providing me an opportunity to gain hands-on experience by working in a corporate environment.

ASHIMA

DECLARATION

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I declare that the project entitled “EMPLOYEE ENGAGEMENT SERVICES” conducted at Bharti Airtel Limited is a record of independent analysis work carried out by me during the academic year 2009-11 under the guidance of my faculty guide Prof. Saranjeet Singh of MMU Mullana Ambala, and my training guide, Mr. Paramjeet Singh Longia and my trainer Mr. Pancham Bharti Airtel Limited.

I also declare that this project is the result of my effort and has not been submitted to any other University or Institution for the award of any degree, or personal favor whatsoever. All the details and analysis provided in the report hold true to the best of my knowledge.

Place: Chandigarh Ashima

12097150

TABLE OF CONTENTS

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S.NO CONTENTS PAGE NO* INTRODUCTORY PAGES 03* PREFACE 04* CERTIFICATE FROM COMPANY* ACKNOWLEGEMENT 05* DECLARATION 06* EXECUTIVE SUMMARY 09

CHAPTER -1 INTRODUCTION10

CHAPTER -2 LITERATURE REVIEW26

CHAPTER -3 RESEARCH METHODOLOGY30

* METHODS OF DATA COLLECTION 30* TOOLS AND TECHNIQUES 32* LIMITATIONS 35

CHAPTER -4 INDUSTRY PROFILE 36

CHAPTER -5 COMPANY PROFILE 43PRODUCT PROFILE 47

MANGEMENT HIERARCHY 62

SWOT ANALYSIS 64CHAPTER-6 PROJECT UNDERTAKEN 66CHAPTER -7 FINDINGS 74CHAPTER -8 CONCLUSION 77CHAPTER -9 SUGGESTIONS 78

BIBLIOGRAPHY 79ANNEXURE 80

TABLE OF GRAPHICS

S.NO CONTENTS PAGE NO.1. EMPLOYEE ENGAGEMENT 16

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DRIVERS2. FACTORS TO INCREASE

ENGAGEMENT23

3. LITERATURE REVIEW- TO ATTAIN HEIGHTS

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4. PRIMARY DATA 315. AIRTEL PROFILE 446. KRA FORMAT 527. MANAGEMENT HIERARCHY-1 628. MANAGEMENT HIERARCHY-2 639. ENGAGEMENT ACTIVITIES 67

10. COMPONENT STRUCTURE 6811. STAR OF THE MONTH 7012. TRAINING AND DEVELOPMENT

CYCLE72

EXECUTIVE SUMMARY

Employee engagement is the level of commitment and involvement an employee has towards their organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. It is a positive attitude held by the employees towards the organization and its values. This study focuses on how employee engagement is an antecedent of job involvement and what company should do to make the employees engaged. People tend to receive more pleasure and satisfaction from what they do if they are in jobs or roles that match both their interests and their skills. If people feel they are making meaningful contributions to their jobs, their organizations, and society as a whole, they tend to be more engaged.

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The connections between what people do every day and the goals and mission of the organization is crucial to engagement. This project is going to take into consideration the needs and wants of the employees. The employees need to be happy with the work they are doing feel contended as they go back home from their work and should not feel stressed by the amount of work and flaws in the organization. They should be overenthusiastic with their job take it as a passion and should not take it merely as a job just to earn their living. For this purpose knowing the employee is necessary, understanding them making them relax at work, getting them involved with the work giving them autonomy etc helps improve productivity. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization. It is a positive attitude held by the employees towards the organization and its values.

.

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CHAPTER- 1

INTRODUCTION

EMPLOYEE ENGAGEMENT

Engagement at work was conceptualized by Kahn, (1990) as the ‘harnessing of organizational members’ selves to their work roles. In engagement, people employ and express themselves physically, cognitively, and emotionally during role performances.Employee engagement is derived from studies of morale or a group's willingness to accomplish organizational objectives which began in the 1920's. The value of morale to organizations was matured by US Army researchers during WWII to predict unity of effort and attitudinal battle-readiness before combat. In the postwar mass production society that required unity of effort in

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execution, (group) morale scores were used as predictors of speed, quality and militancy. With the advent of the knowledge worker and emphasis on individual talent management (stars), a term was needed to describe an individual's emotional attachment to the organization, fellow associates and the job. Thus the birth of the term "employee engagement" which is an individual emotional phenomenon whereas morale is a group emotional phenomenon of similar characteristics

Thus, Employee engagement, also called work engagement or worker engagement, is a business management concept. An "engaged employee" is one who is fully involved in, and enthusiastic about, his or her work, and thus will act in a way that furthers their organization's interests.Employee engagement is defined as the level of commitment and involvement an employee has towards their organization and its values. An engaged employee is aware of business context, and works with colleagues to improve performance within the job for the benefit of the organization.

The organization must work to develop and nurture engagement, which requires a two-way relationship between employer and employee.’ Thus Employee engagement is a barometer that determines the association of a person with the organizationEngagement is most closely associated with the existing construction of job involvementJob involvement is defined as ‘the degree to which the job situation is central to the person and his or her identity. Kanungo (1982) defined as job involvement is a ‘Cognitive or belief state of Psychological identification. Job involvement is thought to depend on both need saliency and the potential of a job to satisfy these needs. Thus job involvement results form a cognitive judgment about the needs satisfying abilities of the job. Jobs in this view are tied to one’s self image. Engagement differs from job in as it is concerned more with how the individual employees are during the performance of his / her job.

Furthermore engagement entails the active use of emotions. Finally engagement may be thought of as an antecedent to job involvement in that individuals who experience deep engagement in their roles should come to identify with their jobs.

For more than 20 years, managers have been looking at the organizational factors which engage (or disengage) their employees. Basically, an engaged workforce is always more productive than one that isn't.There is a cost to pay by having non-engaged employees. They don't work hard, which means that organization lose money through less productivity. While one may not be able to calculate the exact amount that business loses through non-engaged employees, it is possible to get a very good estimate of how much your business is at risk because of less productive employees.Employees are not going to be a happy lot if you are going to give those targets. From a business point of view, the statement may seem outrageously ridiculous – having a business without targets would be as good as spending money without knowing what you would get in return. A

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business without targets risks not going anywhere, just as a ship that has set course in the ocean has no idea where it is heading. So, is it practically possible not to give your employees targets at all and just expect them to perform?Well, the idea is not what it seems at the outset. It is true that not having a target would mean the liberty to be whatever and do whatever, something that may not be compatible with organizational objectives. And the very idea of business is to aim for an objective. Business should have a clear cut target, an end result towards which it needs to strive. And managers tend to translate business objectives into departmental, team and individual targets.The problem, however, would be about the targets being imposed on employees. It is common practice in most businesses where managements tend to have an ultimate idea of what needs to be achieved, divides the workload into chunks and translates it for departments and employees to achieve. And there is hardly any evidence of consultation happening between managers and subordinates in determining, discussing and finalizing targets.The missing piece in the puzzle that relates management objectives and employee targets is a consultative approach in fixing targets. To be sure, it may not be plausible that management discuss organizational objectives in black and white and then fix a target for an employee in consultation with him. However, the most important aspect of fixing targets is achieving them. And targets cannot be achieved, unless they are taken ownership of.Employees would take ownership of what they do, only when there is at least a minimal degree of consultation in the process. With consultation, there would be involvement and employee engagement – and employee engagement is an important process that determines organizational success. Employees would feel involved and engaged when there is transparency in setting targets and when targets are within reach, having been set in consultation with them.

Resorting to pressure tactics to make employees achieve targets would be self-defeating, as it would only dent employee morale and add to work stress, both of which are not in the interest of the organization.HR practitioners believe that the engagement challenge has a lot to do with how employee feels about the about work experience and how he or she is treated in the organization. It has a lot to do with emotions which are fundamentally related to drive bottom line success in a company. There will always be people who never give their best efforts no matter how hard HR and line managers try to engage them. “But for the most part employees want to commit to companies because doing so satisfies a powerful and a basic need in connect with and contribute to something significant”.

Employee Empowerment

Empowerment is the extent to which employees are informed about and involved in decisions that affect their work and the work of their organization. Empowerment increases people’s sense of competence and confidence in their ability to accomplish their work.

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Empowered employees understand the priorities and challenges of the business, and how their role can help strengthen the organization’s success. They are provided with essential operating data to help prioritize and adjust

tasks on a weekly or daily basis. Finally, they are given the opportunity to express their concerns and make suggestions for improvement.

When implemented effectively, empowerment is associated with:

Increased employee job satisfaction.

Increased employee loyalty to the organization.

Increased commitment to and identification with organizational goals.

Enhanced employee problem-solving and problem prevention capabilities.

Increased risk-taking and entrepreneurial behaviour.

Enhanced coordination between functions.

Warmer and more enthusiastic interaction with customers.

Increased customer satisfaction and retention, fewer customer complaints, higher number of customers.

Better organizational performance (e.g., increases in sales and profit, cost reduction, increased effectiveness).

Empowerment may fail when:

Management is unwilling to delegate or to give up some of their decision-making authority.

Senior management fails to involve middle managers and supervisors and does not clarify the responsibilities of managers and employees.

Employees do not receive the necessary training to develop skills that help them analyze work processes, use problem solving tools and techniques, and make decisions.

Employees do not receive the necessary training to develop the interpersonal and communication skills they need to resolve conflicts with their team members, present their suggestions, participate effectively on teams, or constructively express their emotions.

Work systems and processes don’t work properly and are not corrected.

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Communication is poor.

Supervisors and managers have an authoritarian style of management.

Employees are not rewarded based on their level of competence or performance.

Work involves highly established routines and jobs lack variety or challenge.

There is a lack of meaningful work goals.

There is a lack of appropriate organizational goals and values to support a culture and philosophy of empowerment.

Employees are unsure about their responsibilities and the extent of their authority.

Increased and clear lines of accountability are not accompanied by empowerment.

Solutions

1. Train managers and supervisors.Train in areas such as communication, team building and delegation. Management must communicate the vision of the organization and clearly explain expectations.

2. Hold managers and supervisors accountable.Management must show effective leadership skills, encourage initiative, and support a culture of empowerment within their work units.

3. Make sure the rules, procedures, and boundaries for empowerment are clearly understood by employees.Employees must know which decisions they can make on their own and which decisions require additional input or approval.

Managers must allow employees to work within the established boundaries, rather than stepping in and micro-managing.

4. Give employees the training they need.Employees need to learn to make decisions effectively and to work collaboratively with others in an empowered environment.This includes training in decision-making, problem-solving, open communication, and teamwork.

5. Remove barriers that prevent empowered behaviour.

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This step could include ensuring that the proper tools, time, training, teams and financial resources are in place to support the behaviour, as well as providing access to other employees and coaching.

6. Reward, recognize and praise employees for initiating the improvement of work processes and for the contributions they make to the organization.

7. Design jobs for empowerment.Encourage the development of supportive peer groups.Delegate authority through formal job responsibilities. Build autonomy and accountability into jobs at all levels, particularly for issues related to work processes.

8. Hire the right people for the right job.

Make sure that employees brought on board are capable of and interested in assuming greater responsibilities, comfortable with considerable discretion, have high self-esteem, and possess values and goals that are consistent with those of the organization.

Studies by Consultants

Engaged employees care about the future of the company and are willing to invest the discretionary effort. Engaged employees feel a strong emotional bond to the organization that employs them.

Emotional attachmentOnly 29% of employees are actively engaged in their jobs. These employees work with passion and feel a profound connection to their company. People that are actively engaged help move the organization forward. 88% of highly engaged employees believe they can positively impact quality of their organization's products, compared with only 38% of the disengaged. 72% of highly engaged employees believe they can positively affect customer service, versus 27% of the disengaged.68% of highly engaged employees believe they can positively impact costs in their job or unit, compared with just 19% of the disengaged. Engaged employees feel a strong emotional bond to the organization that employs them. This is associated with people demonstrating willingness to recommend the organization to others and commit time and effort to help the organization succeed.It suggests that people are motivated by intrinsic factors (e.g. personal growth, working to a common purpose, being part of a larger process) rather than simply focusing on extrinsic factors (e.g., pay/reward).

InvolvementEileen Appelbaum and her colleagues (2000) studied 15 steel mills, 17 apparel manufacturers, and 10 electronic instrument and imaging equipment producers. Their purpose was to compare traditional production systems with flexible high-performance production systems involving teams, training, and incentive pay systems. In all three industries, the plants utilizing high-

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involvement practices showed superior performance. In addition, workers in the high-involvement plants showed more positive attitudes, including trust, organizational commitment and intrinsic enjoyment of the work. The concept has gained popularity as various studies have demonstrated links with productivity. It is often linked to the notion of employee voice and empowerment.

CommitmentIt has been routinely found that employee engagement scores account for as much as half of the variance in customer satisfaction scores. This translates into millions of dollars for companies if they can improve their scores. Studies have statistically demonstrated that engaged employees are more productive, more profitable, more customer-focused, safer, and less likely to leave their employer.Employees with the highest level of commitment perform 20% better and are 87% less likely to leave the organization, which indicates that engagement is linked to organizational performance. For example, at the beverage company of Molson Coors, it was found that engaged employees were five times less likely than non-engaged employees to have a safety incident and seven times less likely to have a lost-time safety incident. In fact, the average cost of a safety incident for an engaged employee was $63, compared with an average of $392 for a non-engaged employee. Consequently, through strengthening employee engagement, the company saved $1,721,760 in safety costs in 2002. In addition, savings were found in sales performance teams through engagement. In 2005, for example, low-engagement teams were seen falling behind engaged teams, with a difference in performance-related costs of low- versus high-engagement teams totaling $2,104,823.3 (Lockwood).

Life insurance industryTwo studies of employees in the life insurance industry examined the impact of employee perceptions that they had the power to make decisions, sufficient knowledge and information to do the job effectively, and rewards for high performance. Both studies included large samples of employees (3,570 employees in 49 organizations and 4,828 employees in 92 organizations). In both studies, high-involvement management practices were positively associated with employee morale, employee retention, and firm financial performance. Watson Wyatt found that high-commitment organizations (one with loyal and dedicated employees) out-performed those with low commitment by 47% in the 2000 study and by 200% in the 2002 study.

ProductivityIn a study of professional service firms, the Hay Group found that offices with engaged employees were up to 43% more productive.The most striking finding is the almost 52% gaps in operating incomes between companies with highly engaged employees and companies whose employees have low-engagement scores. High-engagement companies improved 19.2% while low-engagement companies declined 32.7% in operating income during the study period. For example, New Century Financial Corporation, a U.S. specialty mortgage banking company, found that account executives in the wholesale division who were actively disengaged produced 28% less revenue than their colleagues who were engaged. Furthermore, those not

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engaged generated 23% less revenue than their engaged counterparts. Engaged employees also outperformed the not engaged and actively disengaged employees in other divisions. It comes as no surprise, then, that engaged employees have been statistically linked with innovation events and better problem solving.

Generating EngagementThe main focus is on developing a better understanding of how different variables such as quality of work relationships and values of the organization interact and their link to important work outcomes. About 85% of highly engaged employees believe they can positively impact the quality of their organization's products, compared with only 30 percent of the disengaged. From the perspective of the employee, "outcomes" range from strong commitment to the isolation of oneself from the organization. The study shows that only 29% of employees are actively engaged in their jobs. Those "engaged" employees work with passion and feel a strong connection to their company. About ⅔ of the business units scoring above the median on employee engagement also scored above the median on performance. Moreover, 55% of employees are not engaged meaning that they go through each workday putting time but no passion into their work. Only about ⅓ of companies below the median on employee engagement scored above the median on performance.Access to a reliable model enables organizations to conduct validation studies to establish the relationship of employee engagement to productivity/performance and other measures linked to effectiveness.It is an important principle of industrial and organizational psychology (i.e. the application of psychological theories, research methods, and intervention strategies involving workplace issues) that validation studies should be anchored in reliable scales (i.e. organized and related groups of items) and not simply focus on individual elements in isolation. To understand how high levels of employee engagement affect organizational performance/productivity it is important to have

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Rational CommitmentThe extent to which

employees believe that managers, teams, or

organizations have their self-interest in mind

(financial, developmental, or professional)

Rational CommitmentThe extent to which

employees believe that managers, teams, or

organizations have their self-interest in mind

(financial, developmental, or professional)

Emotional CommitmentThe extent to which

employees value, enjoy, & believe in their jobs, managers, teams, or

organizations.

Emotional CommitmentThe extent to which

employees value, enjoy, & believe in their jobs, managers, teams, or

organizations.

Two Commitment “Types”

EMPLOYEE ENGAGEMENT

DRIVERS

Org

aniza

tion

Stra

tegy Qualities of

Direct ManagerQualities of

Direct Manager

Qualities of senior leadership

Qualities of senior leadership

Compensation plan

Compensation plan

Benefits planBenefits plan

Employee Engagement Levers

Discretionary Effort

Discretionary Effort

Intent to StayIntent to Stay

PerformancePerformance

RetentionRetention

Outputs of Commitment

Employee willingness to go “above and beyond” the call of duty

Employee desire to stay with the organization

Organizational Benefits of

Commitment

On-boardingOn-boarding

Day-to-day workDay-to-day work

Learning and developmentLearning and development

Organizational culture

Organizational culture

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an a priori model that demonstrates how the scales interact. Unfortunately, the major consulting firms have ignored this basic and critical aspect.

As employee productivity is clearly connected with employee engagement, creating an environment that encourages employee engagement is considered to be essential in the effective management of human capital. Influences

Employer engagement - A company's "commitment to improving the partnership between employees and employer." Employers can stay engaged with their employees by actively seeking to understand and act on behalf of the expectations and preferences of their employees.

Employee perceptions of job importance - "...an employees attitude toward the job['s importance] and the company had the greatest impact on loyalty and customer service then all other employee factors combined."

Employee clarity of job expectations - "If expectations are not clear and basic materials and equipment not provided, negative emotions such as boredom or resentment may result, and the employee may then become focused on surviving more than thinking about how he can help the organization succeed."

career advancement/improvement opportunities - "Plant supervisors and managers indicated that many plant improvements were being made outside the suggestion system, where employees initiated changes in order to reap the bonuses generated by the subsequent cost savings."

Regular feedback and dialogue with superiors - "Feedback is the key to giving employees a sense of where they’re going, but many organizations are remarkably bad at giving it." "What I really wanted to hear was 'Thanks You did a good job.' But all my boss did was hand me a check.'"

Quality of working relationships with peers, superiors, and subordinates - "...if employees' relationship with their managers is fractured, then no amount of perks will persuade the employees to perform at top levels. Employee engagement is a direct reflection of how employees feel about their relationship with the boss."

Perceptions of the ethos and values of the organization - "'Inspiration and values' is the most important of the six drivers in our Engaged Performance model. Inspirational leadership is the ultimate perk. In its absence, [it] is unlikely to engage employees."

Effective Internal Employee Communications - which convey a clear description of "what's going on". "'If you accept that employees want to be involved in what they are doing then this trend is clear (from small businesses to large global organizations). The effect of poor internal communications is seen as its most destructive in global organizations which suffer from employee annexation - where the head office in one country is buoyant (since they are closest to the action, know what is going on, and are heavily engaged) but its annexes (who are furthest away from the action and know little about what is happening) are dis-engaged. In the worst case, employee annexation can be very destructive when the head office attributes the annex's low engagement to its poor performance… when its poor performance is really due to its poor communications.

Reward to engage - Look at employee benefits and acknowledge the role of incentives. "An incentive to reward good work is a tried and test way of boosting staff morale and enhancing

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engagement." There are a range of tactics you can employ to ensure your incentive scheme hits the mark with your workforce such as: Setting realistic targets, selecting the right rewards for your incentive program, communicating the scheme effectively and frequently, have lots of winners and reward all achievers, encouraging sustained effort, present awards publicly and evaluate the incentive scheme regularly

Aspects of Employee Engagement

Three basic aspects of employee engagement according to the global studies are:-The employees and their own unique psychological make up and experience

The employers and their ability to create the conditions that promote employee engagementInteraction between employees at all levels.

Thus it is largely the organization’s responsibility to create an environment and culture conducive to this partnership, and a win-win equation.

There are three different types of people:-

Engaged--"Engaged" employees are builders. They want to know the desired expectations for their role so they can meet and exceed them. They're naturally curious about their company and their place in it. They perform at consistently high levels. They want to use their talents and strengths at work every day. They work with passion and they drive innovation and move their organization forward

Not Engaged---Not-engaged employees tend to concentrate on tasks rather than the goals and outcomes they are expected to accomplish. They want to be told what to do just so they can do it and say they have finished. They focus on accomplishing tasks vs. achieving an outcome. Employees who are not-engaged tend to feel their contributions are being overlooked, and their

potential is not being tapped. They often feel this way because they don't have productive relationships with their managers or with their coworkers.

Actively Disengaged--The "actively disengaged" employees are the "cave dwellers."They're "Consistently against Virtually Everything." They're not just unhappy at work; they're busy acting out their unhappiness .They sow seeds of negativity at every opportunity. Every day, actively disengaged workers

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undermine what their engaged coworkers accomplish. As workers increasingly rely on each other to generate products and services, the problems and tensions that are fostered by actively disengaged workers can cause great damage to an organization's functioning.

Importance of Engagement

Engagement has gained great importance in today’s world for managers to cultivate disengagement or alienation which is central to the problem of workers’ lack of commitment and motivation. Meaningless work is often associated with apathy and detachment from ones works. In such conditions, individuals are thought to be estranged from their selves .One of the other Research using a different resource of engagement (involvement and enthusiasm) has linked it to such variables as employee turnover, customer satisfaction – loyalty, safety and to a lesser degree, productivity and profitability criteria.An organization’s capacity to manage employee engagement is closely related to its ability to achieve high performance levels and superior business results. Some of the advantages of Engaged employees areEngaged employees will stay with the company, be an advocate of the company and its products and services, and contribute to bottom line business success.They will normally perform better and are more motivated.There is a significant link between employee engagement and profitability.They form an emotional connection with the company. This impacts their attitude towards the company’s clients, and thereby improves customer satisfaction and service levels

It builds passion, commitment and alignment with the organization’s strategies and goalsIncreases employees’ trust in the organization

Creates a sense of loyalty in a competitive environmentProvides a high-energy working environmentBoosts business growthMakes the employees effective brand ambassadors for the companyA highly engaged employee will consistently deliver beyond expectations. In the workplace research on employee engagement (Harter, Schmidt & Hayes, 2002) have repeatedly asked employees ‘whether they have the opportunity to do what they do best everyday’. While one in five employees strongly agree with this statement. Those work units scoring higher on this perception have substantially higher performance.Thus employee engagement is critical to any organization that seeks to retain valued employees. The Watson Wyatt consulting companies has been proved that there is an intrinsic link between employee engagement, customer loyalty, and profitability. As organizations globalize and become

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more dependent on technology in a virtual working environment, there is a greater need to connect and engage with employees to provide them with an organizational ‘identity.’

How employee assessments improve performance.

Companies have been assessing their employees since the 1940s when the U.S. military developed surveys to determine whether their pilots were best suited to be long-range bomber pilots or short-range fighter pilots, which are positions that require people with very different personality profiles. Since that inauspicious beginning, thousands and thousands of companies have given behavioral surveys to help them identify the best employes to hire and promote.

Assessment versus Behavioral Surveying

Employee assessment is the process of identifying which employee is suited for promotion to a specific position, or which new person should be hired as a new employee to fill a specific position. Behavioral surveying or profiling, also known as personality surveying, is the means by which each employee's personality is identified. In addition to using a survey to identify personality, the employer also must take into consideration other factors, such as appearance, education, skills, and employment background.

How important is the surveying component?

Numerous studies have identified a significant correlation between using behavioral surveys and selecting employees who have superior performance. In one of our recent studies, we did behavioral surveys on the franchisees of a mid-sized franchisor, and also did a job survey in which they identified the profile of what they considered an ideal. The results were absolutely eye-opening. Before having their franchisees do the survey, the franchisor divided them into multiple groups based on the amount of royalties they generated. The employer knew who the best franchisees were in terms of generating royalties, but did not know why they were different.

When we gave each franchisee behavioral surveys, we found a direct correlation between the franchisees who were closest to the ideal profile of a franchisee, and those who had the least ideal profiles. The results are summarized in the table entitled, "Engagement Study of Leading.

The Bottom LineUsing surveys in the hiring process may be the most important thing a company can do to assure that they put "the right people on the bus." In today's complex business environment, fewer and fewer companies are willing to allow its managers to provide references for employees who leave their company. In addition, online employee ads often bring a flood of resumes. While companies may be able to identify multiple candidates who seem to have the right skills and appearance, the best way they can determine whether the employee has the right personality profile is through surveying.

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How to Increase Employee Engagement

An organization’s productivity is measured not in terms of employee satisfaction but by employee engagement. Employees are said to be engaged when they show a positive attitude toward the organization and express a commitment to remain with the organization.

Organizations that believe in increasing employee engagement levels focus on:

1. Culture: It consists of a foundation of leadership, vision, values, effective communication, a strategic plan, and HR policies that are focused on the employee.

2. Continuous Reinforcement of People-Focused Policies: Continuous reinforcement exists when senior management provides staff with budgets and resources to accomplish their work, and empowers them.

3. Meaningful Metrics: They measure the factors that are essential to the organization’s performance. Because so much of the organization’s performance is dependent on people, such metrics will naturally drive the people-focus of the organization and lead to beneficial change.

4. Organizational Performance: It ultimately leads to high levels of trust, pride, satisfaction, success, and believe it or not, fun.

Increasing employee engagement (further) Provide variety: Tedious, repetitive tasks can cause burn out and boredom over time. If

the job requires repetitive tasks, look for ways to introduce variety by rotating duties, areas of responsibility, delivery of service etc.

Conduct periodic meetings with employees to communicate good news, challenges and easy-to-understand company financial information. Managers and supervisors should be comfortable communicating with their staff, and able to give and receive constructive feedback.

Indulge in employee deployment if he feels he is not on the right job. Provide an open environment.

Communicate openly and clearly about what's expected of employees at every level - your vision, priorities, success measures, etc.

Get to know employees' interests, goals, stressors, etc. Show an interest in their well-being and do what it takes enable them to feel more fulfilled and better balanced in work and life.

Celebrate individual, team and organizational successes. Catch employees doing something right, and say "Thank you."

Be consistent in your support for engagement initiatives. If you start one and then drop it, your efforts may backfire. There's a strong connection between employees' commitment to an initiative and management's commitment to supporting it.

There are few factors which increase the level of engagement in employees like:      • Giving right job to the employees as per their likings.     

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• Making work environment and culture more friendly and comfortable.      • Giving thorough training and development sessions.

The outcome these factors are always positive plus these factors help in bringing a transparent culture in the organization.

It helps in:   

Increasing the productivity.   

Increasing employee retention.   

Reduces absenteeism.   

Improve customer satisfaction.   

Enhance business growth.

The quality of employees and their development through training and education are major factors in determining long-term profitability of a small business. If you hire and keep good employees, it is good policy to invest in the development of their skills, so they can increase their productivity.

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Engaged Employee High Productivity

Do Right ThingsHave A Shared PurposeEnsure Synergy

High Effectiveness

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Training often is considered for new employees only. This is a mistake because ongoing training for current employees helps them adjust to rapidly changing job requirements.

Factors Leading to Employee Engagement

Opportunities for Personal DevelopmentOrganizations with high levels of engagement provide employees with opportunities to develop their abilities, learn new skills, acquire new knowledge and realize their potential. When companies plan for the career paths of their employees and invest in them in this way their people invest in them.

Effective Management of TalentThe engagement for employees and retaining the most talented employees and providing opportunities for personal development.

Purpose of Training and Development

Reasons for emphasizing the growth and development of personnel include Creating a pool of readily available and adequate replacements for personnel who may

leave or move up in the organization. Enhancing the company's ability to adopt and use advances in technology because of a

sufficiently knowledgeable staff. Building a more efficient, effective and highly motivated team, which enhances the

company's competitive position and improves employee morale. Ensuring adequate human resources for expansion into new programs.

Training and development Leads to- Increased productivity. Reduced employee turnover. Increased efficiency resulting in financial gains. Decreased need for supervision.

Employees frequently develop a greater sense of self-worth, dignity and well-being as they become more valuable to the firm and to society. Generally they will receive a greater share of the material gains that result from their increased productivity. These factors give them a sense of satisfaction through the achievement of personal and company goals.

Clarity of Company ValuesEmployees need to feel that the core values for which their companies stand are unambiguous and clear.

Respectful Treatment of EmployeesSuccessful organizations show respect for each employee’s qualities and contribution – regardless of their job level.

Company’s Standards of Ethical Behaviour

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A company’s ethical standards also lead to engagement of an individual

EmpowermentEmployees want to be involved in decisions that affect their work. The leaders of high engagement workplaces create a trustful and challenging environment, in which employees are encouraged to dissent from the prevailing orthodoxy and to input and innovate to move the organization forward.

ImageHow much employees are prepared to endorse the products and services which their company provides its customers depends largely on their perceptions of the quality of those goods and services. High levels of employee engagement are inextricably linked with high levels of customer engagement.

Other factors

Equal Opportunities and Fair TreatmentThe employee engagement levels would be high if their bosses (superiors) provide equal opportunities for growth and advancement to all the employees

Performance appraisalFair evaluation of an employee’s performance is an important criterion for determining the level of employee engagement. The company which

follows an appropriate performance appraisal technique (which is transparent and not biased) will have high levels of employee engagement.

Pay and BenefitsThe company should have a proper pay system so that the employees are motivated to work in the organization. In order to boost his engagement levels the employees should also be provided with certain benefits and compensations.

Health and SafetyResearch indicates that the engagement levels are low if the employee does not feel secure while working. Therefore every organization should adopt appropriate methods and systems for the health and safety of their employees.

Job Satisfaction

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Only a satisfied employee can become an engaged employee. Therefore it is very essential for an organization to see to it that the job given to the employee matches his career goals which will make him enjoy his work and he would ultimately be satisfied with his job.

CommunicationThe company should follow the open door policy. There should be both upward and downward communication with the use of appropriate communication channels in the organization. If the employee is given a say in the decision making and has the right to be heard by his boss than the engagement levels are likely to be high.

Family FriendlinessA person’s family life influences his wok life. When an employee realizes that the organization is considering his family’s benefits also, he will have an emotional attachment with the organization which leads to engagement

Co-operationIf the entire organization works together by helping each other i.e. all the employees as well as the supervisors co-ordinate well than the employees will be engaged.

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CHAPTER- 2

LITERATURE REVIEW

John.h fleming and jim asplund report on how to manage an employee-customer encounter. Corporate culture-In a world of cut throat competition where only the fittest of all survives having a high performing corporate culture is advantageous.Every organization wants its employees to be builders as it is through their actions they make the organization weak or strong.As the world shifts from industrial to knowledge based economy and as employees are valued for what they know rather than what they produce the power of the employers has vanished or disappeared.Therefore to manage people to get the best results and for high levels of productivity employee engagement is necessary i.e.the ability ot capture the heads hearts and souls of the employees to instill an intrinsic desire and passion for excellence.Just as engaged customers are the most profitable for the company similarly engaged employees are the companies profitable and productive workers.Whatever may be their motivation for joining the company what matters the most is the environment there which fosters their learning growth starves or frustrates them.

According to John and Jim,the four dimensions of employee engagement are- How can we grow-opportunities to learn and grow,progress in the last 6 months. Do I belong-best friend, coworkers committed to quality. What do I give-encourages development, do what I do best everyday. What do I get-I know what is expected from me at the work.

A report on employee engagement by Katherine esty and Mindy gewirtz- They define employee engagement as the willingness and ability to contribute towards the success of the

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company. According to them the best way to increase employee engagement is to focus on creating a culture of engagement and culture according to them include the practices, shared mindset and ethos of an organization. Once the culture is created engagement becomes the way things are done here and it need not be created year after year. According to their model there are a few factors that leads to a culture of engagement which in turn leads to greater profits, increased productivity and retention of valued employees. The factors are as follows- Two way feedback --Organization does well in terms of communication down from the management to the employees but fail to communicate up on a regular basis. Trust in leadership --Trust can be shattered when promises are broken, building trust is a slow process and could be done by communicating a clear vision of the organization. Career development --Engagement levels rise when there is a formal career development (e.g.) career development tracks etc. Employees understand their role in success --It is important for the employee to know what should be done differently to help the business succeed hr can in turn clarify what are the competencies and how helping the employees upgrade their skills and to match the needs of the future. Shared decision making –Decision making should be pushed down to the lowest possible level so that the employee feels that his view points are taken into consideration by the management.

Report by Jason Mathews It is said that the engaged employees are not just committed, they are not just passionate or proud but instead They have a line-of-sight on their own future and on the organization’s mission and goals. They are using their talents and discretionary effort for the betterment of the organization. There is a clear correlation between engagement and retention, with 85% of engaged employees indicating that they plan to stay with their employer through 2008. An effective employee retention strategy is based on an understanding of engagement. Moreover, engaged employees stay for what they give (they like their work); disengaged employees stay for what they get. To keep the employees engaged the practices according to him should be -- Maximize managers - they are the main connection in the employee engagement equation. Align, align, align - clarify strategy and organizational goals. Redefine career - employees need line-of-sight on their future to be truly engaged. Pay attention to culture - culture and employee motivation go hand-in-hand. Survey less, act more - don't rely purely on an employee engagement survey to drive your strategy

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This is really important; if one wants business to flourish and reach heights then this above figure should be kept in mind. This is the reality of life nothing to learn from books its generic if you treat your people your employees in a good manner keep them happy, respect them they will respect you back, they will feel motivated and happy and thus will do their duty or any work assigned to them will full enthusiasm and panache as a matter of fact. They will treat the customers as if they are their own, then comes word of mouth which we all know is a great traveler and travel miles and across globe. These customers call us and buy then rest is up to the company this cycle can be followed or can be broken can be followed for good can be broken for your own loss decide for yourself.

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CHAPTER-3

RESEARCH METHODOLOGY

OBJECTIVES-

1. To study the extent to which employees satisfied with their jobs.2. To know the facts employees’ getting credits of the work.3. To study the employees’ internal satisfaction or job satisfaction.4. To studythe level of employees’ engagement in the company.5. To study the HR Policies being followed in airtel.

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Main objective- The main objective is to identify the effectiveness of engagement activities of employees.Specific objective- To study the process in which person’s involvement and his enthusiasm for work is taken into considerationResearch Type- Discriptive

Research Design- Descriptive

SOURCES OF DATA- METHOD OF DATA COLLECTION

PRIMARY DATA

The primary data, which is collected afresh and for the first time, and thus happen to be original in character. A primary survey was conducted at Chandigarh City. The survey was carried out at various levels & the target group was Premium /Old employees of airtel.

Surveys were used as an instrument to collect the primary data.

The method, I used to collect primary data, is survey method:-

1. Personal interviews

2. Telephonic interviews

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SECONDARY DATA

The Secondary data are those, which have already been collected and through processed the statically process.

We got the secondary data through:-

1. Internet

2. Various Walk In Queries Records

3. Books and periodicals.

4. Company publications (Bharti today) such as company policy statements, speeches by eminent personalities, sales literature etc.

5. I got the records of those people who are Existing employees of Airtel.

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Sampling Universe- Chandigarh IT Park

Sampling Plan- Probability sampling

Simple Random Sampling

Analysis Plan- By Gallup Q12 survey

TOOLS AND TECHNIQUES OF ANALYSIS

Employee engagement satisfaction surveys determine the current level of employee engagement. A well-administered satisfaction survey will let us know at what level of engagement the employees are operating. Customizable employee surveys will provide with a starting point towards the efforts to optimize employee engagement.The key to successful employee satisfaction surveys is to pay close attention to the feedback from the staff. It is important that employee engagement is not viewed as a one time action. Employee engagement should be a continuous process of measuring, analyzing, defining and implementing.The employee survey is a diagnostic tool of choice in the battle for the hearts of employees. Studies of Gallup, Mercer, Hewitt and Watson Wyatt (consulting companies) asked workers number of questions relating to their job satisfaction. Gallup being one of oldest the consulting organization {in conducting engagement survey} creates a feedback system for employers that would identify and measure elements of worker engagement most tide to the bottom line. Things such as sales, growth, productivity and customer loyalty are all accessed. After Hundreds of focus group and thousands of interviews with employees in a variety of industries, Gallup came up with Q. 12, a twelve-question survey that identifies strong feelings of employee engagement. They have identified 12 questions that most effectively measure the links (the Gallup Q12).

1. Do you know what is expected of you at work?

2. Do you have the materials and equipment you need to do your work right?

3. At work, do you have the opportunity to do what you do best every day?

4. In the last seven days, have you received recognition or praise for doing good work?

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5. Does your supervisor, or someone at work, seems to care about you as a person?

6. Is there someone at work who encourages your development?

7. At work, do your opinions seem to count?

8. Does the mission/purpose of your company make you feel your job is important?

9. Are your associates (fellow employees) committed to doing quality work?

10. Do you have a best friend at work?

11. In the last six months, has someone at work talked to you about your progress?

12. In the last year, have you had opportunities at work to learn and grow?

The interpretation of the questionnaire and one of the company’s engagement levels is summarized in the table below.

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Some of the discussions which come from Gallup’s questions are: -

Know what is expected of me at work- employees should know exactly what is expected of them. If expectations are unclear, employees will inevitably face frustration, and will be open for other opportunities where they do know what's expected of them, and where their contributions are measured and recognized.

Materials and equipment- Employees need the right tools and equipment to support their skills, experience and talents & perform their jobs at an optimum level.

Does what I do best every day - Are your employees cast in the right roles? Knowing the critical demands for every role is a key to ensuring that talents fit those demands.

Supervisor/Someone at work cares -Managers must spend most of their time with their most productive talent. Many managers give their greatest degree of attention to employees who are falling behind. Talented, productive people crave time and attention from their managers, and will leave your company if they have a weak relationship (or no relationship) with their manager or supervisor.

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Co-workers committed to quality.-Many companies arbitrarily put teams together without considering that employees only psychologically commit to teams if they perceive their team members will support their high level of commitment and performance. Talented employees set high standards and depend upon those around them to support their growth toward excellence.

Opportunities to learn and grow- The Company should create an environment that encourages employees to drive towards innovation or to create better systems for more productive results. Great managers always ask what skills and knowledge need to accompany talent to result in the greatest outcome for each

As discussed the Gallup study Q12 is based on positive Psychology and emotions.

Having a best friend at work or receiving recognition every week makes you feel cared for and proud respectively. If you want to keep recreating those positive emotions, then you keep coming back to work.

So the Q. 12 measures engagement, and engagement is a positive emotional connection to the work. Thus the mechanism of the broaden- and – build theories and the action tendencies of positive emotions help in understanding why the Q. 12 has been so powerful for Gallup in terms of predicting outcomes. Borden – and Build theory is about evolutionary significance of positive emotions. Positive emotions are better observed over the long haul. Their effects accumulate and compound overtime and the adaptive benefits are evident from later, when people face new challenges. The Gallup research has thus made a contribution in adding an additional ‘P’ to the 4 P’s of marketing i.e. product, price, and promotion place and now people to the mix. In the combination of engaged employees, Gallup brings engaged customers to form the concept of human sigma. These include customer engagement, loyalty and emotional attachment. Customer engagement hierarchy, customer engagement scores and developing the culture of engagement and customer focus. The Gallup Organization decided to initiate a multi-year research project to try and define a great workplace - a great workplace was one where employees were satisfied with their jobs and this thus helps to produce positive business outcomes.

According to the study of Watson Wyatt, the service – profit chain establishes relationship between profitability, customer loyalty and employee satisfaction, loyalty and productivity. The links in the chain (which should be regarded as propositions) are as follows: profit and growth are stimulated primarily by customer loyalty. Loyalty is a direct result of customer’s satisfaction. Satisfaction is largely influenced by the services provided to customers. Satisfied, loyal and productive employees create value.Employee’s satisfaction in turn results primarily from high quality support services and policies that enable employees to deliver results to customers. While many organizations are beginning to measure relationship between individual links in the service only a few have related the links in the meaningful ways that can lead to comprehensive strategies for achieving lasting competitive advantage of building employee engagement. In a study of its seven telephone customer service centers (MCI found that there is a clear relationship between employee’s perceptions of the quality of services and employee engagement.

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LIMITATIONS

1._Time constraint serves as the main limitation for the study. As the project study is vast nature and employees has less time to give answer.

2._The study undertaken may not be dependable because it is a research not a consensus.

3._ Study is area specifiC.

4._As the study had been done on a small scale which increase the chances for misinterpretation.

CHAPTER-4

INDUSTRY PROFILE

The telecom industry is one of the fastest growing industries in India. India has nearly 200 million telephone lines making it the third largest network in the world after China and USA. With a growth rate of 45%, Indian telecom industry has the highest growth rate in the world.

History of Indian Telecommunications started in 1851 when the first operational land lines were laid by the government near Calcutta (seat of British power). Telephone services were introduced in India in 1881. In 1883 telephone services were merged with the postal system. Indian Radio

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Telegraph Company (IRT) was formed in 1923. After independence in 1947, all the foreign telecommunication companies were nationalized to form the Posts, Telephone and Telegraph (PTT), a monopoly run by the government's Ministry of Communications. Telecom sector was considered as a strategic service and the government considered it best to bring under state's control.

The first wind of reforms in telecommunications sector began to flow in 1980s when the private sector was allowed in telecommunications equipment manufacturing. In 1985, Department of Telecommunications (DOT) was established. It was an exclusive provider of domestic and long-distance service that would be its own regulator (separate from the postal system). In 1986, two wholly government-owned companies were created: the Videsh Sanchar Nigam Limited (VSNL) for international telecommunications and Mahanagar Telephone Nigam Limited (MTNL) for service in metropolitan areas.

In 1990s, telecommunications sector benefited from the general opening up of the economy. Also, examples of telecom revolution in many other countries, which resulted in better quality of service and lower tariffs, led Indian policy makers to initiate a change process finally resulting in opening up of telecom services sector for the private sector. National Telecom Policy (NTP) 1994 was the first attempt to give a comprehensive roadmap for the Indian telecommunications sector. In 1997, Telecom Regulatory Authority of India (TRAI) was created. TRAI was formed to act as a regulator to facilitate the growth of the telecom sector. New National Telecom Policy was adopted in 1999 and cellular services were also launched in the same year.

Telecommunication sector in India can be divided into two segments: Fixed Service Provider (FSPs), and Cellular Services. Fixed line services consist of basic services, national or domestic long distance and international long distance services. The state operators (BSNL and MTNL), account for almost 90 per cent of revenues from basic services. Private sector services are presently available in selective urban areas, and collectively account for less than 5 per cent of subscriptions. However, private services focus on the business/corporate sector, and offer reliable, high- end services, such as leased lines, ISDN, closed user group and videoconferencing.

Cellular services can be further divided into two categories: Global System for Mobile Communications (GSM) and Code Division Multiple Access (CDMA). The GSM sector is dominated by Airtel, Vodfone-Hutch, and Idea Cellular, while the CDMA sector is dominated by Reliance and Tata Indicom. Opening up of international and domestic long distance telephony services are the major growth drivers for cellular industry. Cellular operators get substantial revenue from these services, and compensate them for reduction in tariffs on airtime, which along with rental was the main source of revenue. The reduction in tariffs for airtime, national long distance, international long distance, and handset prices has driven demand.

The telecom sector is also afflicted by a number of restraints. These include: Sluggish pace of reform process. Lack of infrastructure in semi-rural and rural areas, which makes it difficult to make

inroads into this market segment as service providers have to incur a huge initial fixed cost. Limited spectrum availability.

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But notwithstanding these constraints, telecom sector has undergone a revolution in the past decade and has played a major part in bridging the rural-urban divide.

The ' Indian Telecom Industry ' services is not confined to basic telephone but it also extends to internet, broadband (both wireless and fixed), cable TV, SMS, IPTV, soft switches etc. The bottlenecks for ' Indian Telecom Industry ' are:

Slow reform process. Low penetration. Service providers bears huge initial cost to make inroads and achieving

break-even is difficult. Huge initial investments. Limited spectrum availability and interconnection charges between the private and state

operators. The Government Broadband Policy 2004, aims at 9 million broadband connections and 18 million internet connections in 2007. ' Indian Telecom Industry ' is currently expected to contribute nearly 1% to India's GDP which is heartening and estimated to grow further and brighten the ' Scenario of Indian Telecom Industry Privatization of telcommunications in IndiaThe Indian government was composed of many factions (parties) which had different ideologies. Some of them were willing to throw open the market to foreign players (the centrists) and others wanted the government to regulate infrastructure and restrict the involvement of foreign players. Due to this political background it was very difficult to bring about liberalization in telecommunications. When a bill was in parliament a majority vote had to be passed, and such a majority was difficult to obtain, given to the number of parties having different ideologies.Liberalization started in 1981 when Prime Minister Indira Gandhi signed contracts with Alcatel CIT of France to merge with the state owned Telecom Company (ITI), in an effort to set up 5,000,000 lines per year. But soon the policy was let down because of political opposition. She invited Sam Pitroda a US based NRI to set up a Center for Development of Telematics(C-DOT), however the plan failed due to political reasons. During this period, after the assassination of Indira Gandhi, under the leadership of Rajiv Gandhi, many public sector organizations were set up like the Department of Telecommunications (DoT) , VSNL and MTNL. Many technological developments took place in this regime but still foreign players were not allowed to participate in the telecommunications business. The demand for telephones was ever increasing. It was during this period that the P.N Rao led government introduced the national telecommunications policy [NTP] in 1994 which brought changes in the following areas: ownership, service and regulation of telecommunications infrastructure. They were also successful in establishing joint ventures between state owned telecom companies and international players. But still complete ownership of facilities was restricted only to the government owned organizations. Foreign firms were eligible to 49% of the total stake. The multi-nationals were just involved in technology transfer, and not policy making. During this period, the World Bank and ITU had advised the Indian Government to liberalize long distance services in order to release the monopoly of the state owned DoT and VSNL; and to enable competition in the long distance carrier business which would help reduce tariff's and better the economy of the country. The Rao run government instead liberalized the local services, taking the opposite political parties into confidence and assuring foreign involvement in the long distance business after 5 years. The country was divided into 20 telecommunication circles for basic telephony and 18 circles for mobile services. These circles were divided into category A, B

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and C depending on the value of the revenue in each circle. The government threw open the bids to one private company per circle along with government owned DoT per circle. For cellular service two service providers were allowed per circle and a 15 years license was given to each provider. During all these improvements, the government did face oppositions from ITI, DoT, MTNL, VSNL and other labor unions, but they managed to keep away from all the hurdles. After 1995 the government set up TRAI (Telecom Regulatory Authority of India) which reduced the interference of Government in deciding tariffs and policy making. The DoT opposed this. The political powers changed in 1999 and the new government under the leadership of Atal Bihari Vajpayee was more pro-reforms and introduced better liberalization policies. They split DoT in two- one policy maker and the other service provider (DTS) which was later renamed as BSNL. The proposal of raising the stake of foreign investors from 49% to 74% was rejected by the opposite political party and leftist thinkers. Domestic business groups wanted the government to privatize VSNL. Finally in April 2002, the government decided to cut its stake of 53% to 26% in VSNL and to throw it open for sale to private enterprises. TATA finally took 25% stake in VSNL. This was a gateway to many foreign investors to get entry into the Indian Telecom Markets. After March 2000, the government became more liberal in making policies and issuing licenses to private operators. The government further reduced license fees for cellular service providers and increased the allowable stake to 74% for foreign companies. Because of all these factors, the service fees finally reduced and the call costs were cut greatly enabling every common middle class family in India to afford a cell phone. Nearly 32 million handsets were sold in India. The data reveals the real potential for growth of the Indian mobile market. In March 2008 the total GSM and CDMA mobile subscriber base in the country was 375 million, which represented a nearly 50% growth when compared with previous year. As the unbranded Chinese cell phones which do not have International Mobile Equipment Identity (IMEI) numbers pose a serious security risk to the country, Mobile network operators therefore planned to suspend the usage of around 30 million mobile phones (about 8 % of all mobiles in the country) by 30 April. 5–6 years the average monthly subscribers additions were around 0.05 to 0.1 million only and the total mobile subscribers base in December 2002 stood at 10.5 millions. However, after a number of proactive initiatives were taken by regulators and licensors, the total number of mobile subscribers has increased greatly to 617 million subscribers as of May 2010. India has opted for the use of both the GSM (global system for mobile communications) and CDMA (code-division multiple access) technologies in the mobile sector. In addition to landline and mobile phones, some of the companies also provide the WLL service. The mobile tariffs in India have also become lowest in the world. A new mobile connection can be activated with a monthly commitment of US$0.15 only. In 2005 alone additions increased to around 2 million per month in the year 2003-04 and 2004-05.]

In June 2009, the Government of India banned the import of several mobile phones manufactured in China citing concerns over quality and the lack of IMEI's which make it difficult for authorities in India to track the sale and use of such phones. In April 2010, the A series of attacks on Indian government websites and computer networks by suspected Chinese hackers has also made Indian regulators suspicious with regards to the import of potentially sensitive equipment from China. The companies reported to be affected by this are Huawei Technologies and ZTE.

Telecommunications Regulatory Environment in India

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LIRNEasia's Telecommunications Regulatory Environment (TRE) index, which summarizes stakeholders’ perception on certain TRE dimensions, provides insight into how conducive the environment is for further development and progress. The most recent survey was conducted in July 2008 in eight Asian countries, including Bangladesh, India, Indonesia, Sri Lanka, Maldives, Pakistan, Thailand, and the Philippines. The tool measured seven dimensions: i) market entry; ii) access to scarce resources; iii) interconnection; iv) tariff regulation; v) anti-competitive practices; and vi) universal services; vii) quality of service, for the fixed, mobile and broadband sectors.The results for India, point out to the fact that the stakeholders perceive the TRE to be most conducive for the mobile sector followed by fixed and then broadband. Other than for Access to Scarce Resources the fixed sector lags behind the mobile sector. The fixed and mobile sectors have the highest scores for Tariff Regulation. Market entry also scores well for the mobile sector as competition is well entrenched with most of the circles with 4-5 mobile service providers. The broadband sector has the lowest score in the aggregate. The low penetration of broadband of mere 3.87 against the policy objective of 9 million at then end of 2007 clearly indicates that the regulatory environment is not very conducive.

Revenue and growthThe total revenue in the telecom service sector was Rs. 86,720 crore in 2005-06 as against Rs. 71, 674 crore in 2004-2005, registering a growth of 21%. The total investment in the telecom services sector reached Rs. 200,660 crore in 2005-06, up from Rs. 178,831 crore in the previous fiscal.Telecommunication is the lifeline of the rapidly growing Information Technology industry. Internet subscriber base has risen to 6.94 million in 2005-2006. Out of this 1.35 million were broadband connections. More than a billion people use the internet globally.Under the Bharat Nirman Programme, the Government of India will ensure that 66,822 revenue villages in the country, which have not yet been provided with a Village Public Telephone (VPT), will be connected. However doubts have been raised about what it would mean for the poor in the country.It is difficult to ascertain fully the employment potential of the telecom sector but the enormity of the opportunities can be gauged from the fact that there were 3.7 million Public Call Offices in December 2005 up from 2.3 million in December 2004.

The value added services (VAS) market within the mobile industry in India has the potential to grow from $500 million in 2006 to a whopping $10 billion by 2009.

The Mobile telecommunications system in India is the second largest in the world and it was thrown open to private players in the 1990s. The country is divided into multiple zones, called circles (roughly along state boundaries). Government and several private players run local and long distance telephone services. Competition has caused prices to drop and calls across India are one of the cheapest in the world. The rates are supposed to go down further with new measures to be taken by the Information Ministry. The mobile service has seen phenomenal growth since 2000. In September 2004, the numbers of mobile phone connections have crossed fixed-line connections. India primarily follows the GSM mobile system, in the 900 MHz band. Recent operators also operate in the 1800 MHz band. The dominant players are Airtel, Reliance Infocomm, Vodafone, Idea cellular and BSNL/MTNL. There are many smaller players, with

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operations in only a few states. International roaming agreements exist between most operators and many foreign carriers

History of telecom industry in India

The history of telephone services in India found its beginning when a 50-line manual telephone exchange was commissioned in Kolkata in the year 1882 in less than five years after Alexander Graham Bell invented the telephone. While India became independent in the year 1947, the country had about 82,000 telephone connections, which slowly rose up to 3.05 million by the year 1984. The telecom sector in India was a government monopoly until the year 1994 when liberalization was gradually unrolled. For the first time, cellular services were launched in India in Kolkata in the year 1995.

An Overview of the Telecommunication Industry in IndiaA mobile handsetTalking of telecommunications sector in India today, we can primarily identify two segments namely Fixed Service Provider (FSPs) and Cellular Services. Some of the essential and basic telecom services forming part of Indian telecom industry include telephone, radio, television and Internet. Telecom industry in the country lays a special emphasis on some of the advanced and the latest technical innovations like GSM( Global System for Mobile Communications), CDMA(Code Division Multiple Access), PMRTS(Public Mobile Radio Trunking Services), Fixed Line and WLL(Wireless Local Loop ). Especially, India has a flourishing market in GSM mobile service, while the number of subscribers is on rapid and dramatic increase. The Indian telecommunications industry boasts as being one among the most rapidly growing chunks on the globe. Experts around the world estimate that India holds the promise of emerging as the second largest telecom market of the world.Figures published by the Telecom Regulatory Authority of India (TRAI), reveal that the number of telecom connection subscribers in India reached 562.21 million in December 2009, marking a 3.5 percent increase over the number 543.20 million reported in November 2009. This figure indicates that the average tele-density (number of telephones per 100 persons) has gone up to 47.89.On account of a dramatic increase in the earnings from mobile and landline connections, the telecom industry in India made revenue of US$ 8.56 billion during the quarter ending on December 31, 2009 thereby witnessing a recovery from the economic downturn.Business Monitor International has stated that at present, India is adding up about 8-10 million mobile subscribers every succeeding month. Estimates have revealed that by June2012, almost half India’s population will be in possession of a mobile phone. This will result in about 612 million mobile subscribers, making up a teledensity of about 51 per cent by the year 2012.Over and above, a study undertaken by Nokia has brought out that the communications sector will grow as the single largest chunk of the India’s GDP making up about 15.4 per cent by the year 2014.Estimates made in February 2009 show that the Indian equipment market valued at US$ 24 billion, while Nokia was glowing as the market leader reporting more than US$ 3.4 billion revenues in 2008-09. Ericsson followed Nokia with revenue of about US$ 2.11 billion.

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The latest reports published by Evalueserve state that the availability of the 3G spectrum has given hopes of finding about 275 million Indian subscribers using 3G-enabled services. This will take up the number of 3G-enabled handsets to reach near to 395 million by the end of 2013.A Frost & Sullivan industry analyst has predicted that by the year 2012, revenues from fixed line subscriptions in India will reach up to US$ 12.2 billion, while the revenue from mobile connections will reach up to US$ 39.8 billion.In a significant step taken to boost up the auction of 3G spectrum, the Indian Government has permitted prospective bidders to call for short-term funds from the domestic market in the country, while allowing refinancing out of external commercial borrowings (ECBs) within a period of 12 months. Estimates show that the government can mop up US$ 7.53 billion from the auction of 3G spectrum to be completed shortly. The reserve price has been fixed at US$ 753.74 million.BSNL, the state-managed telecom operator has introduced 3G services in more than 318 cities benefiting 856,000 subscribers. BSNL has been venturing to cross more than 400 cities in the near future eventually rolling this service across 760 cities by September 2010. While the debate on 3G is seen continuing, TRAI has already started consulting on the next higher level of telecom services. 4G or the fourth generation enables downloads faster than all the earlier versions.Today, India is the largest market in the world adding up a dramatic number of about 20 million mobile subscriber lines every month in an average. On the other hand, the number of landlines is found gradually decreasing. At the end of the first quarter in 2010, we find that the overall telecom subscriber penetration has gone up by more than 52 %. Though this might occur as a relatively low volume compared with a number of other nations, this comes as a quantum leap noting the figures recorded a few years back. Mumbai and Delhi (NCR) enjoy the status among a few other metro areas around the globe boasting of more than 25 m mobile subscribers in each of these regions. At present, The FDI cap in the telecom sector in India is 74 %. In a recent move, UK’s Vodafone Group has purchased a 52 % stake in Hutchison Essar, the fourth largest mobile service provider in the country. Bharti Airtel has the credit of being the first Indian operator to cross a subscriber base of 50 million.It is predicted that mobile number portability (MNP) will be available throughout India by the second quarter of 2010, initially in the cities of Chennai, Delhi, Kolkata and Mumbai, the four metros of India. Also, 3G (third generation) mobile services are found being introduced in all the major cities across the nation. The country has auctioned three 3G spectrum slots to private bidders. However, the number of subscribers for broadband connections is increasing at a slow pace.

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CHAPTER- 5

COMPANY PROFILE

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BHARTI ENTERPRISES LIMLTED

Sunil Bharti Mittal is the Founder, Chairman and Group CEO of Bharti Enterprises, one of India’s leading business groups with interests in telecom, financial services, retail, realty, manufacturing and agriculture.

Sunil started his career at 18 after graduating from Punjab University in India in 1976 and founded Bharti. Today, at 52, he heads a successful enterprise which employs over 30,000 people. Bharti Airtel, the flagship group company, has a market capitalization of approximately US$ 25 billion.

Sunil has been recognized with the Padma Bhushan, one of India’s highest civilian awards. He has also received the Lal Bahadur Shastri National Award for Excellence in Public Administration, Academics and Management for 2009. He is a past President of the Confederation of Indian Industry, the premier industry body in India (2007-08).

Sunil has been awarded numerous awards and recognitions including the Global Economy Prize 2009 by The Kiel Institute, Germany. The US-India Business Council has also honored him with the ‘Global Vision’ Award 2008. He has received the GSM Association Chairman's Award for 2008.

Sunil was Co-chairman of the World Economic Forum in 2007 at Davos and is a member of its International Business Council. He is a member of the Leadership Council of The Climate Group. He is also a member of the Board of Trustees of the Carnegie Endowment for International Peace. He is a member of several premier international bodies –International Advisory Committee to the NYSE Euronext Board of Directors, the International Business Advisory Council of London and the Advisory Board of the Global Economic Symposium. Sunil is also on the Telecom Board of the International Telecommunication Union, the leading UN Agency for Information and Communication Technology. He is also a member of the Indo-US CEOs Forum.

He serves as a member of the Executive Board of the Indian School of Business. He is also a member of the Academy of Distinguished Entrepreneurs, Babson College, Wellesley, Massachusetts.

Sunil believes a responsible corporate has a duty to give back to the community in which it operates. This belief has resulted in Bharti Foundation, which is committed to providing

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education to under-privileged children in rural India.

Sunil has been conferred with the degree of Doctor of Laws (Honoris Causa) by the University of Leeds, UK and the degree of Doctor of Science (Honoris Causa) by the Govind Ballabh Pant University of Agriculture & Technology. He is an alumnus of Harvard Business School, USA. He is an Honorary Fellow of The Institution of Electronics and Telecommunication Engineers.

Bharti Enterprises is a large Indian business conglomerate based in New Delhi, India, operating primarily across India and in some other Countries like Sri Lanka, Jersey, Seychelles.

It was established by Sunil Mittal , one of the young and dynamic businessmen of India. It is one of the few companies in India (Like Reliance and Tata) that have changed the way of life of Indians by bringing mobile phones to every household in India at an affordable price. The company offers mobile services all over India as well as in some foreign countries. The Airtel brand is the flagship brand of Bharti.

HISTORY

The company was founded by Sunil Bharti Mittal (Chairman & Managing Director of the Bharti group) along with two siblings in early 1990s. The company was not so famous in India by its own name, rather its Brand Names Like Airtel and Beetel (PSTN Phone Sets) were household names in India. The company underwent a brand reformation process and changed its logo and corporate Image.COMPANIES

Bharti's primary industry is in the field of telecommunications via its subsidiary companies.

Bharti Airtel (mobile telecommunications) and Bharti Teletech (wired telecommunication services and PSTN telephone handsets).

Bharti – Companies

A brief introduction to each of their companies is given below:

Bharti Airtel Ltd:-Bharti Airtel Ltd is one of Asia's leading telecommunications service providers. The Company is India’s largest integrated telecom company in terms of customer base and offers Mobile Services, Fixed Line services, Broadband & IPTV, DTH, Long Distance and Enterprise services.

Bharti Teletech Limited :-Bharti Teletech is India’s leading telecom & allied Products Company. It is one of the largest manufacturers of landline telephones in the world. With a strong distribution network across the

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country, the company is also the primary distributor of IT and Telecom products from international brands such as Motorola, Blackberry, Thomson, Transcend, and Logitech.

Telecom Seychelles Ltd :-A subsidiary of Bharti, Telecom Seychelles Ltd provides comprehensive telecom services including 3G mobile services in Seychelles, under the ‘Airtel’ brand.

Bharti Telesoft Ltd :-Bharti Telesoft is the leading provider of integrated VAS solutions for mobile operators in emerging markets. Among the top 3 global providers of integrated VAS solutions in rapidly growing markets, Bharti Telesoft has deployed solutions for over 100 mobile operator customers in over 70 countries worldwide.

Bharti Del Monte India Pvt Ltd :-Bharti Del Monte India Pvt. Ltd is a joint venture between Bharti Enterprises and DMPL India Ltd. (a subsidiary of Del Monte Pacific Ltd.). The company offers fresh fruits & vegetables and processed foods & beverages in the domestic as well as international markets.

Bharti Retail Pvt Ltd :-Bharti Retail is a wholly owned subsidiary of Bharti Enterprises. Bharti Retail operates a chain of multiple format stores that offer consumers affordable prices, great quality and wider choice

Bharti AXA General Insurance Company:-Bharti AXA General Insurance is a joint venture between Bharti Enterprises and AXA, world leader in financial protection and wealth management. The company was incorporated in July 2007 and offers a full suite of general insurance solutions to meet the needs of businesses and individuals alike.

Bharti AXA Life Insurance Company:-

Bharti AXA Life Insurance Company Ltd is a joint venture between Bharti Enterprises and AXA, world leader in financial protection and wealth management. It offers a range of life insurance and wealth management products with an endeavor to help customers lead a confident life.

Bharti AXA Investment Managers Pvt. Ltd. :-Bharti AXA Investment Managers Pvt. Ltd., an asset management company in India, is a joint venture between Bharti Enterprises, AXA Investment Managers (AXA IM) and AXA Asia Pacific Holdings (AXA APH).

Bharti Learning Systems LimitedBharti Learning Systems Limited, a wholly owned subsidiary of Bharti Enterprises, is a premier end-to-end learning and development solutions organization that specializes in the customer experience arena. It provides learning solutions that impact business performance through enhanced employee productivity, customer profitability and effective talent transformation.

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Jersey Airtel LtdJersey Airtel, a subsidiary of Bharti, offers world-class mobile services in Jersey (Channel Islands) over its full 2G, 3G and HSDPA enhanced network. The Company brings market-leading products and services to its customers under Airtel-Vodafone brand.

Bharti Foundation:-

Bharti Foundation was set up in 2000, with the vision, “To help underprivileged children and young people of our country realize their potential”. It aims to create and support programs that bring about sustainable changes through education and the use of technology and information.

Bharti RealtyBharti Realty Private Limited is the in-house Real Estate Arm for Bharti Group and facilitates by extending support to the Group Companies for Identifying, Developing and Maintaining Quality Real Estate in line with their Business Models.

PRODUCT PROFILE

Bharti Airtel Limited

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Type Public (BSE: 532454)Industry TelecommunicationsFounded 7 July 1995Founder(s) Sunil Bharti MittalHeadquarters New Delhi, India

Key people

Sunil Mittal(Chairman) & (MD)Sanjay Kapoor(CEO)

Products

WirelessTelephoneInternetSatellite television

Revenue ▲ US$ 7.254 billion (2009)[1]

Operating income ▲ US$ 2.043 billion (2009)[1]

Net income ▲ US$ 1.662 billion (2009)[1]

Total assets ▲ US$ 11.853 billion (2009)[1]

Employees 25,543 (2009)[1]

ParentBharti Enterprises (64.76%)SingTel (30.5%)Vodafone (4.4%)

Website Airtel.in

VISION OF THE COMPANY- 2010

By 2010 Airtel will be the most admired brand in India:o Loved by more customers

o Targeted by top talento Benchmarked by more businesses

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We at Airtel always think in fresh and innovative ways about the needs of our customers and how we want them to feel. We deliver what we promise and go out of our way to delight the customer with a little bit more.

A BRIEF ABOUT THE COMPANY

Telecom giant Bharti Airtel is the flagship company of Bharti Enterprises. It is the India’s largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles.

Airtel comes to you from Bharti Airtel Limited, one of Asia’s leading integrated telecom services providers with operations in India, Sri Lanka and Bangladesh. Bharti Airtel since its inception has been at the forefront of technology and has pioneered several innovations in the telecom sector.Airtel Enterprise Services is a solution based communication group, specially created to deliver Integrated and Superior service to enterprise customers.Bharti is now the world's third-largest, single-country mobile operator and sixth-largest integrated telecom operator. It also offers fixed line services and broadband services. It offers its TELECOM services under the Airtel brand and is headed by Sunil Bharti Mittal. The company also provides telephone services and broadband Internet access (DSL) in top 95 cities in India. It also acts as a carrier for national and international long distance communication services. The company has a submarine cable landing station at Chennai, which connects the submarine cable connecting Chennai and Singapore.It is known for being the first mobile phone company in the world to outsource everything except marketing and sales. Its network (base stations, microwave links, etc) is maintained by Ericsson and Nokia Siemens Network, business support by IBM and transmission towers by another company. Ericsson agreed for the first time, to be paid by the minute for installation and maintenance of their equipment rather than being paid up front. This enables the company to provide pan-India phone call rates of Rs. 1/minute (U$0.02/minute).The businesses at Bharti Airtel have always been structured into three individual strategic business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Services. The mobile business provides mobile & fixed wireless services using GSM technology across 23 telecom circles while the Airtel Telemedia Services business offers broadband & telephone services in 95 cities and has recently launched a Direct-to-Home (DTH) service, Airtel Digital TV. Shahrukh Khan is the brand ambassador of the mobile company and Kareena Kapoor and Saif Ali Khan are the brand ambassadors of the DTH company. The company provides end-to-end data and enterprise services to the corporate customers through its nationwide fiber optic backbone, last mile connectivity in fixed-line and mobile circles, VSATs, ISP and international bandwidth access through the gateways and landing station.Globally, Bharti Airtel is the 3rd largest in-country mobile operator by subscriber base, behind China Mobile and China Unicom. In India, the company has a 24.6% share of the wireless services market, followed by 17.7% for Reliance Communications and 17.4% for Vodafone Essar.

In January 2010, company announced that Manoj Kohli, Joint Managing Director and current Chief Executive Officer of Indian and South Asian operations, will become the Chief Executive

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Officer of the International Business Group from 1 April 2010. He will be overseeing Bharti's overseas business. Current Dy. CEO, Sanjay Kapoor, will replace Manoj Kohli and will be the CEO with effective from 1 April, 2010.The company is structured into four strategic business units - Mobile, Telemedia, Enterprise and Digital TV. The mobile business offers services in India, Sri Lanka and Bangladesh. The Telemedia business provides broadband, IPTV and telephone services in 89 Indian cities. The Digital TV business provides Direct-to-Home TV services across India. The Enterprise business provides end-to-end telecom solutions to corporate customers and national and international long distance services to telcos.

Business Divisions

MOBILE SERVICES

Bharti Airtel offers GSM mobile services in all the 23-telecom circles of India and is the largest mobile service provider in the country, based on the number of customers.

AIRTEL TELEMEDIA SERVICES

The group offers high speed broadband internet with a best in class network. With Landline services in 94 cities we help you stay in touch with your friends & family and the world. Get world class entertainment with India’s best direct to home (DTH) service digital TV in more than 150 cities

ENTERPRISE SERVICE CORPORATE

Enterprise Services provides a broad portfolio of services to large Enterprise and Carrier customers. This division comprises of the Carrier and Corporate business unit. Enterprise Services is regarded as the trusted communications partner to India's leading organizations, helping them to meet the challenges of growth.

DIGITAL TV

Discover the magical experience of digital entertainment with Airtel. From DVD quality picture and sound, the best and widest variety of channels and programs to the best on-demand content on Airtel Live, your TV viewing experience change forever with digital TV from Airtel

CORPORATE RESPONSIBILITY AT BHARTI AIRTEL

Overview

At Bharti, CSR is a way of life. Each department and employee strives to be sensitive to the stakeholders and environment within their work context. Bharti encourages employees to take

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decisions and design business-linked processes that are sensitive to communities and environment.Corporate Social Responsibility (CSR) in Bharti encompasses much more than only social outreach programs. It is an integral part of the way Bharti conducts its business. The essence of Bharti’s commitment to Corporate Social Responsibility is embedded in the ‘Corporate Values’, which stem from its deepest held beliefs. These Values are:

To be responsive to the needs of their customers.To trust and respect their employees.To continuously improve their services – innovatively and expeditiously.To be transparent and sensitive in their dealings with all stakeholders.

They encourage their employees to take decisions and design business processes, keeping in mind the following:

Ethics, fairness and being correct.Meeting and going beyond compliances and legal requirements.Showing respect and sensitivity towards stakeholders and communities.Nurturing the environment.

They practice their CSR beliefs and commitments through a three-pronged approach:

Engaging with stakeholders. Ensuring stakeholder sensitive policies and practices . Undertaking programs for their employees, community and environment.

Bharti Airtel sensitizes its employees towards CSR issues at various forums. They feel that it is important that each employee should understand the importance of environmental, social and economical aspects while taking business decisions. At Bharti, each employee is sensitized towards CSR issues and thus operations at the ground level are influenced. Such sensitization exercises have resulted in many socially and environmentally sensitive decisions on the ground.For example, Confidence Plan for hearing impaired people covers noise-making DG sets at extra cost, investing in consumer awareness campaigns to ensure safe use of mobile are some examples of the above.

CURRENT IN AIRTEL

Bharti Airtel enters into an exclusive partnership with Encyclopaedia Britannica on May 28, 2010 in New Delhi

• Exclusive partnership to offer Airtel broadband customers two year free access to the world’s most trusted information source.• Airtel broadband customers can now be part of Britannica’s global collaborative community

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The partnership will allow Bharti Airtel to offer a two year free subscription, worth Rs.6575 to Britannica online (www.britannica.com, www.eb.com) for all its Broadband users. The initiative addresses a growing need for authentic and trusted information sources.

Britannica one of the world’s leading sources of authentic information has today over 100 million users worldwide and is trusted by over 4750 Universities. As part of its unique collaborative tools, the website also allows customers and members of the public to contribute to the encyclopedia for review, by its panel of eminent scholars including Nobel laureates.

Bharti Airtel enters into a strategic partnership with Novatium to help expand the broadband market internationally.

Bharti Airtel Appoints Drew Kelton as President - Enterprises Services

Bharti Airtel appoints Vineet Taneja as Operations Director- South

Bharti Airtel announces its fourth quarter and full year ended March 31, 2010 on April 28, 2010.

Bharti Airtel and Radio Mirchi launch Mirchi Mobile on Airtel

Bharti Airtel launches Airtel World SIM for international travelers at the onset of the travel season

iPhone 3G and iPhone 3GS

The Apple iPhone 3G was rolled out in India on 22 August 2008 via Airtel & Vodafone. Both the cellular service providers rolled out their Apple iPhone 3GS in the first quarter of 2010. However, high price and contract boundation again made it nearly impossible for both the service providers to make it a success as much as the iPhone is successful in other markets of the world.

On 14, February 2010 a statement issued exclusively to the Ghana News Agency by Zain Ghana, said "the Board of Directors of Kuwait's Zain Group, after its meeting on February 14, 2010, issued a resolution to accept a proposal received from Bharti Airtel Limited (Bharti) to enter into exclusive discussions until 25 March 2010, regarding the sale of its African unit, Zain Africa BV." The offer was for $10.7 billion."This potential transaction does not include Zain's operations in Morocco and Sudan and remains subject to due diligence, customary regulatory approvals and signing of final transaction documentation," Bharti said. The deal would provide Bharti access to 15 more countries in the region, adding around 40.1 million subscribers to its already 125 million-plus user base. With Bharti already having presence in five overseas markets,after the deal, it would increase its global presence across 20 regions.

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Bharti Airtel signed a five-year deal with ESPN Star Sports to become the title sponsor of the Champions League Twenty20 cricket tournament. The tournament itself is named "Airtel Champions League Twenty20.

AIRTEL Offered Net PC by launching cloud computing service on broadband–a low-cost online computer for its broadband customers.

Airtel digital TV launched “Magic dekho, talk time pao”offer -Exclusive offer only for Airtel Prepaid Mobile customers acrossthe country where on buying a digital TV connection at Rs. 2000 with 3 months of Super Value Pack, the Airtel Prepaid Mobile customer receives 1000 minutes of local Airtel to Airtel talk time.

Airtel Partnered with UK based in-flight solutions company, AeroMobile, to offer in-flight cell phone connectivity to its customers.

Airtel Signed a 5 year multi million dollar content partnership deal with Manchester United(world’s second richest football club) to provide Airtel’s subscribers across India, Sri Lanka and Seychelles, exclusive access to United football’s content over mobile.

Announced an industry-first –the new ‘true & rich’ broadband experience by offering 1 Mbps speed at Rs. 1699 and 512 Kbps speed at Rs. 1099 as well as exciting additional free VAS bundles worth upto Rs. 500 every month agreements.

Launched new terrestrial cable network to Bhutan which will help enterprises in Bhutan to reach out to the world by accessing Bharti’s cable assets through its international cable landing stations in Chennai and Mumbai.

BHARTI AIRTEL HR PRACTICES

Airtel is considiered to be the best in HR practices. During the learning phase, the most important part Airtel general manager(HR) Arun Kumar Padhi had to play was to actually check if ``people enjoyed their roles''. ``We didn't want anyone to treat his position as a mere job.Now when we look back, it emerges that we had undertaken strongteam-building activities,'' says Padhi.Airtel decided to go in for a very young team. The average age is just 26years. In Airtel, it is believed that this will help the HR department to mould the young entrants to the company. The senior management was advised to walk the talk and ``invite criticism from the employees''. ``Initially, the younger professionals were circumspect about airing their views. But with better interaction with the senior managers, they began to play a more pro-active role in team-building efforts,'' he says.Airtel's HR success was powered by a well defined rewards and recognition system. This was backed by a strong training program. ``Unlike most other organisation’s Airtel let their employees decide their training needs. And if the individual does not know what his training needs are, then we don't need him,''.

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To encourage learning within the organisation, the company has set up a state-of-the-art learning centre. Here, employees can get logged on to customised training programs developed by British Telecom (BT). Though the material is transmitted through the Internet, that are not accessible to anybody outside the organisation as the access is protected.. Airtel also seeks to certify that every employee on quality and IT. ``To be a head in the business, for that employees need to be trained, develop and re-certify on a continuous basis,’’.Eventually, there are the performance-related bonuses that set the tone for these activities. Its being surveyed that 60% employees are on a variable pay structure, and that explains the success the Airtel has had in business and HRD.

HR team also conducts an internal employee satisfaction survey called PACE (Progressive Assessment of Culture and Environment), the inputs of which go into the company's annual strategy.Measurement is indeed a key driver of business within Airtel. A philosophy of constant monitoring has been established. `Measurement Boards' for every department are prominently displayed where the performance indicators of the same are displayed graphically.``In airtel it is believed that an individual can be effective if he knows what is expected of him. Formal job description documents have been issued to all our employees that clearly mention the `key result areas'. This goal setting has helped us in communicating to each of our employees about our experiences from them, and established role clarity,'' he adds.The HR department also sets up cross-functional teams in times of product or service launches. ``Such teams typically constitute high performers from each department, who collectively make it happen.Some of the other key HR initiatives include the managers' communication forum, open house, family group meetings, HR interface and HR intranet. To explain them, the managers' communication forum, undertaken once a quarter, facilitates direct interaction of the employees with the top management. They get to discuss issues relating to the performance of the previous quarter, directions for the next quarter, an update on the regulatory environment and the key initiatives for the period.

The `open house' conducted between the departments and HR takes up individual grievances. In the case of family group meetings, each HOD conducts meetings with his direct reporters once a month, wherein issues other than those related to work are discussed.To further HR interface, every member of the HR department has been assigned two departments each to discuss and sort out all HR, personnel and administration issues. ``The idea is to provide employees with a single window to the department.”The HR Intranet provides information on HR policies, organizational structure, training calendar and the house journal.With these initiatives, Airtel has won a special place in the Bharti group. The quality of service and customer care is a reflection of the quality of people and our belief in constant improvement and upgradation.’’The HR encourages managers to do four things continuously: build a highly engaged team, have a productive organisation, build future capabilities and remain individual focused. This has created an enabling culture with employees who have a can-do attitude.”

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EMPLOYEES AT AIRTEL

The most important drivers of growth and success for any organization is its people. At Bharti Airtel, the success Mantra for employee delight focuses on 5 Ps- People, Pride, Passion, Processes and Performance.

Bharti Airtel has been recognized among the Best Employers in the Country for two successive years being 14th in 2003 & jumping ahead of several other large conglomerates to an enviable position of the 2nd Best Employer in the Country in 2004. This is a clear demonstration & acknowledgement of the robust, progressive, people as well as business aligned Human Resource practices, which the organization has developed and implemented remarkably in a very short span of time.

Bharti Airtel follows an open-door policy to approach the management, which helps resolve issues with mutual agreements. We encourage people to stand up against any unfair treatment for which we have the Office of the Ombudsman, where employees can raise any issues regarding business and workplace conduct. Bharti ensures transparency through the various communication policies, strategies and plans. . Regular Employee Communication Forums provides a platform for the employees to raise issues that require resolution.

The leaders in Airtel strongly believe in facilitating and initiating activities that help employees manage their health and well-being. The focus always remains to redefine leadership; the leaders are developed who enable performance and inspire their people to unleash their potential. People’s orientation reflects in our vision of being targeted by top talent, and a key aspect of our business focus on building a best-in-class leadership team that nurtures talent at every level.

Employee friendly HR policies have been put in place, which amply reflect the organizational’s concern for its people. Some typical examples of these policies and practices include a family-day at office, half day leave for birthdays, gifts for anniversaries, compulsory 10 days off, festival celebration with family, no official meetings on weekends, five day weeks, concierge services, call center engagement programs etc. These policies and practices are applied across the organizational levels without any discrimination.

From self-management workshops to aerobics sessions, yoga classes to provision of relaxation/meditation rooms, we ensure that every employee keeps a check on his/her fitness. Tie-ups with leading health service organizations enable our employees to undertake periodical health check-ups depending upon their age. This facility is also extended to employee family members at discounted rates. The company provides Flexible Group Mediclaim insurance to all employees, covering all kinds of illnesses, accidents and hospital coverage for serious ailments. Apart from these specific engagements, we regularly organize health check up camps, eye check-up camps and stress management sessions. Some of our offices have opened gymnasiums/fitness facilities to ensure that the fitness fanatics do not have to worry about time constraints to remain fit. At many of our locations, we have hired psychologists who undertake personal counseling sessions for employees.

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Bharti Airtel offers a flexible compensation structure to its employees wherein the employees have the flexibility to structure their fixed component of their compensation according to their requirements within the ambit of legislation.

Performance Linked Incentive (PLI) schemes are linked with the variable component of the compensation structure. This component is linked to both the individual performance against his/ her set KRAs (Key Result Areas) and the overall performance of the business entity that an employee belongs to.

Airtel leaders’ and managers’ understand the need to bring clarity to employees about how their roles, goals and actions align the realization of organizational vision and goals.The mechanisms like Performance Management System (PMS) and Talent Management Process (TMP) are the key sources of identifying the training needs of the employees and check to competency levels for promotion.

KRA Format

  Performance Management System Employee Name / Code

 Employee Code

Designation / Department

 Business Unit / Circle

Key Objectives / Strategies / Projects

  Measures of Completion  

Area   KPI 80% 90% 100% Breakfree Weightage

Financials              

Customer              

Process              

People & Org Development

ENVIRONMENT, HEALTH AND SAFETY

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Overview

At Bharti, there is a belief in the philosophy to refuse, reduce, reuse and recycle. The company has taken many initiatives in this regard, both within the offices for the benefit of their employees; and for outside world for the convenience of the people

Few examples of the initiatives taken are mentioned below:

(a) Most of the new Airtel buildings recycle waste water for sanitary and cooling of equipment purposes e.g. DG sets and AC systems. These buildings also have rain water harvesting systems for ground water replenishment where appropriate.

(b) All Airtel offices have energy efficient light fittings and DG sets. They also ensure automation that enables energy savings in their buildings. Building Management System (BMS) – IntelligentBuilding concept is being followed in all the new Airtel building and campuses that are coming up.

The BMS controls The Heating, Ventilation and Air conditioning (HVAC) system,, electricity load management, water management, parking management, security and safety systems to ensure an efficiently run building on optimal resources.

(c) New buildings also incorporate the concept of and Energy Wheel which optimizes energy efficiency in buildings. The AC system in their buildings adds a certain amount of fresh air periodically; In the process of adding this fresh air the cool air within the building vents out which may result into higher usage of energy to bring the cooling/ temperature back. The Energy Wheel concept ensures that as we bring the fresh air in it is pre-cooled thereby optimizing energy efficiency.

(d) Air quality is checked periodically in all Bharti Airtel offices, and based on the results, duct cleaning, carpet cleaning, chair and sofa shampooing is undertaken. Water quality is also monitored in cooling towers for DG sets and Air Conditioner systems so that water born diseases such as legion Ella, etc. are avoided.

(e) Use of air curtains on major office exits and double glazing also results in significant energy saving.

(f)At the time of oil change in DG sets etc, the discarded oil for disposal is only sent to companies/ vendors approved by the Central Pollution Control Board (CPCB) for proper disposal as per CPCB approved processes. All Bharti Airtel offices follow the basic requirements specified by the Pollution Control Board) and ensure statutory compliance.

(g) All Bharti Airtel offices have fire alarm systems. Periodic fire drills are carried out in Bharti Airtel offices as a practice. All Airtel offices are provided with First Aid boxes and have identified people as First Aid specialists.

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Bharti Airtel takes all its equipment from its key vendors, namely Nokia and Ericsson, who comply with all the required health and safety norms. There is an induction manual for sub-contractors to ensure that they follow all the safety and statutory compliances as well as Bharti Standard Operating Procedures.

Bharti Airtel is in the process of finalizing its Environment/ Health & Safety Policy (EHS) and will apply for ISO 14001 compliance within the next 3 years for each of its facilities.

COMMUNITY INITIATIVES

Corporate Social Responsibility is embedded in, and built upon, the stated ‘values’ of Bharti – the institution. These values guide all their activities and each employee is encouraged to take decisions and design business-linked processes that are sensitive to communities and environment.

“We have an obligation to fulfill to society and the communities in which we operate, and help improve the quality of life for everyone, today and in the future.”

Based on the basic guidelines and direction provided in the Code of Conduct, Bharti has undertaken many community programs.Bharti’s contribution to society is structured through two channels, namely,

(a) Bharti’s Corporate Social Responsibility (CSR) Initiatives, including initiatives undertaken by way of employee mobilization as well as running environment related programs; and(b) Bharti Foundation, a separate vehicle established in 2000 to lead the CSR agenda of Bharti Group of Companies

(a) CSR Initiatives @ Bharti AirtelBharti Airtel has a nation-wide presence that has grown at an exponential rate in the recent years.

Each local office undertakes special programs for the local community, thereby reaching out to people. Many projects like material collection drive and blood donation camps are organized for the welfare of the underprivileged community. Bharti constantly searches for new, innovative ways of reducing the consumption of resources, with the aim of leaving a better and greener earth for future generations.

Response to Disaster :-

Bharti Airtel’s response to Tsunami Disaster: Bharti Airtel undertook the following initiatives for immediate relief and rehabilitation to Tsunami victims:

· Built a mobile network in Andaman & Nicobar islands in less than 3 months to aid rapid rehabilitation of the island· Donated Rs. 1 Crore to the Prime Minister’s Relief Fund, in addition to contributions from employees.

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· Created 29 Airtel Crisis Communications centres in Tamil Nadu.· Raised resources for Tsunami victims by initiatives such as a ‘Benefit Cricket Match’.

Employees of Bharti Airtel also contributed through a Donation Collection Drive, with a difference. All employees were not only given the freedom to choose the amount they wished to donate, but also the agency they wished to donate to.One of the most memorable actions was the heroic way in which a Bharti employee reestablished connections after Tsunami hit Tamil Nadu. After being washed away by the wave, this employee went back to work on restoring connectivity for the struck region. Word of his dedication spread within Bharti and he received tremendous response from his fellow Bhartians.Over 80 emails were addressed to him and presented to him in recognition.

Bharti Airtel’s response to Assam, Bihar and West Bengal floods: Bharti Airtel also partnered with an NGO to provide relief to the flood victims in the flood hit areas of Assam, Bihar and West Bengal. A ‘Material Collection Drive’ was undertaken across Bharti offices, for collection of material such as clothes, utensils, footwear, blankets, dry ration and monetary donations. 55 cartons of clothes and 65 kilos of ration were dispatched, in addition to monetary contributions.

Bharti Airtel during Mumbai Floods: Bharti Airtel employees climbed up the towers to restore the networks so that their customers could conveniently reach its employees.

Bharti Airtel’s response to Kashmir earthquake: Bharti Airtel’s ‘Rapid Response Team’ responded to the Kashmir earthquake by bringing more than 2000 food packets and water bottles to the affected area. Money, clothes, woolens and blankets were also collected from employees to distribute among earthquake victims.

Other initiatives of Bharti Airtel

Bharti Airtel employees have undertaken varied initiatives to reach out to the local community.

Some of such initiatives are listed below:-

Airtel Ashiana for underprivileged children at the Mohali office of Airtel.BIL North tied up with an NGO to distribute daily surplus food to needy children.

Airtel Experience Centre by Access MP… for the benefit of the benefit of visually impaired people as well as people from deprived section of society.

Mobile Services Jammu & Kashmir donated free medicines, stationery, clothes and other utility items at the ‘Missionaries of Charity Home for Destitutes’.

Mobile Services MP & CG supported the ‘WalkaThon’ to create awareness about diabetes on ‘World Diabetes Day’, organized by the Indian Medical Association.

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Airtel Maharashtra & Goa team visited the Thalassemia Ward of Sassoor hospital to interact with children as well as the families affected.

Airtel Kerala team visited an old age home and shared a day full of fun with the members of the home.

A tree plantation drive was carried out by Access-NCR, Access-North and Access-UP West Circles, where in free tree saplings were planted.

Airtel Madhya Pradesh & Chhatisgarh planted trees on its fourth ‘Circle Inception Day’

In Tamil Nadu, Airtel has adopted a corporation park in Chennai city.

Mobile Services Rajasthan supported the ‘Red Ribbon Caravan’ initiative of the Rajasthan State AIDS Control Society, to spread awareness about HIV/ AIDS. During the month-long campaign a caravan of five vans covered 32 districts of Rajasthan, to spread the awareness of HIV/ AIDS.

Airtel Delhi organized a Blood Donation Camp in association with Indian Red Cross Society

(b) Bharti Foundation

Although CSR is executed at all levels in the organization, the Promoters of Bharti Enterprises established Bharti Foundation in 2000 with a vision,

“To help underprivileged children and youth of our country realize their potential.”

Bharti Foundation’s mission is to create and support programs that bring about sustainable changes through education, use of technology and information and best practice sharing.

Bharti Foundation has established itself the goals of improving accessibility and quality of education at the school level for underprivileged children, and to provide education and training opportunities to youth.

AWARDS AND RECOGNITION

Bharti Airtel has received recognition for its innovative practices across the world, some are as follows:

· 3rd Largest Wireless Operator in the World

· Largest Private Integrated Telecom Company In India

· Largest Wireless Operator in India

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· Largest Private Fixed Line Operator in India

· Largest Telecom Company Listed on Indian Stock Exchanges

· Sunil Bharti Mittal - GSM Association Chairman’s Award 2008

· Sunil Bharti Mittal - Chosen for Padma Bhushan Awards In 2007

· Airtel was Chosen As the 2nd Most Trusted Service Brand In India In The ‘Most Trusted Brands 2008 Survey’ Conducted By The Economic Times - Brand Equity

· Awarded With Top Honors At The GSMA Mobile World Congress Conference 2008 In Barcelona For The Category “Best Billing/ Customer Care Solution.”

· Adjudged as The ‘Best Carrier India‘At the Telecom Asia Award 2008

· Adjudged as ‘Company of the Year’ At the CNBC India Business Leader Awards 2007

· Economic Times ‘Company of the Year 2007’ Award For Corporate Excellence

· Gallup Great Workplace Award For 2008 -Airtel is one of the only 20 companies worldwide and the only company from India to receive the prestigious award. The other winners include companies like Standard Chartered, Qwest Communications and Campbell Soup Company etc. Airtel is one of the only 20 companies worldwide and the only company from India where Organization engagement score is higher in more than 50% of the population.

Bharti Airtel rated as India’s Best Enterprise Connectivity Provider for 2009 at the Annual Users Choice Awards instituted by PC Quest for the year 2009-10.

Airtel was rated as the Strongest Brands in the Economic Times Brand Finance Brand Power Rating 2009. It is the only Corporate Brand to be awarded the AAA rating.

Sunil Bharti Mittal conferred with the Lal Bahadur Shastri National Award for Excellence in Public Administration, Academics and Management.

Sunil Mittal was conferred with the degree of Doctor of Laws Honoris Causa by the University of Leeds, UK

Bharti Airtel has been awarded the NDTV Profit Business Leadership Award 2009 in the Telecom Sector

SUBSCRIBER BASE

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The Airtel subscriber base according to COAI - Cellular Operator Association of India as of till date was:

· Chennai - 2,011,299· Delhi - 4,418,296· Mumbai - 2,718,885· Kolkata - 2,178,061

· Gujarat - 3,690,661· Andhra Pradesh - 8,094,328· Karnataka - 8,995,538· Tamil Nadu - 5,392,458· Kerala - 2,013,424· Punjab - 3,554,406· Haryana - 1,170,378· Uttar Pradesh (West) - 2,071,723· Uttar Pradesh (East) - 5,124,948· Rajasthan - 6,032,480· Madhya Pradesh - 4,040,871

· Orissa - 2,496,123· Assam - 1,241,186· North Eastern States - 766,763· Jammu & Kashmir - 1,391,606

MANAGEMENT HIERARCHY

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Bharti Airtel SWOTSWOT Analysis Bharti Airtel

Strengths Bharti Airtel has more than 65 million customers (July 2008). It is the largest cellular

provider in India, and also supplies broadband and telephone services - as well as many other telecommunications services to both domestic and corporate customers.

Other stakeholders in Bharti Airtel include Sony-Ericsson, Nokia - and Sing Tel, with whom they hold a strategic alliance. This means that the business has access to knowledge and technology from other parts of the telecommunications world.

The company has covered the entire Indian nation with its network. This has underpinned its large and rising customer base.

Weaknesses An often cited original weakness is that when the business was started by Sunil Bharti

Mittal over 15 years ago, the business has little knowledge and experience of how a cellular telephone system actually worked. So the start-up business had to outsource to industry experts in the field.

Until recently Airtel did not own its own towers, which was a particular strength of some of its competitors such as Hutchison Essar. Towers are important if your company wishes to provide wide coverage nationally.

The fact that the Airtel has not pulled off a deal with South Africa's MTN could signal the lack of any real emerging market investment opportunity for the business once the Indian market has become mature.

Opportunities The company possesses a customized version of the Google search engine which will

enhance broadband services to customers. The tie-up with Google can only enhance the Airtel brand, and also provides advertising opportunities in Indian for Google.

Global telecommunications and new technology brands see Airtel as a key strategic player in the Indian market. The new iPhone will be launched in India via an Airtel distributorship. Another strategic partnership is held with BlackBerry Wireless Solutions.

Despite being forced to outsource much of its technical operations in the early days, this allowed Airtel to work from its own blank sheet of paper, and to question industry approaches and practices - for example replacing the Revenue-Per-Customer model with a Revenue-Per-Minute model which is better suited to India, as the company moved into small and remote villages and towns.

The company is investing in its operation in 120,000 to 160,000 small villages every year. It sees that less well-off consumers may only be able to afford a few tens of Rupees per call, and also so that the business benefits are scalable - using its 'Matchbox' strategy.

Bharti Airtel is embarking on another joint venture with Vodafone Essar and Idea Cellular to create a new independent tower company called Indus Towers. This new business will control more than 60% of India's network towers. IPTV is another potential new service that could underpin the company's long-term strategy.

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Threats Airtel and Vodafone seem to be having an on/off relationship. Vodafone which owned a

5.6% stake in the Airtel business sold it back to Airtel, and instead invested in its rival Hutchison Essar. Knowledge and technology previously available to Airtel now moves into the hands of one of its competitors.

The quickly changing pace of the global telecommunications industry could tempt Airtel to go along the acquisition trail which may make it vulnerable if the world goes into recession. Perhaps this was an impact upon the decision not to proceed with talks about the potential purchase of South Africa's MTN in May 2008. This opened the door for talks between Reliance Communication's Anil Ambani and MTN, allowing a competing Inidan industrialist to invest in the new emerging African telecommunications market.

Bharti Airtel could also be the target for the takeover vision of other global telecommunications players that wish to move into the Indian market.Airtel comes to you from Bharti Airtel Limited, India's largest integrated and the first private telecom services provider with a footprint in all the 23 telecom circles. Bharti Airtel since its inception has been at the forefront of technology and has steered the course of the telecom sector in the country with its world class products and services. The businesses at Bharti Airtel have been structured into three individual strategic business units (SBU's) - Mobile Services, Airtel Telemedia Services & Enterprise Services.

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CHAPTER-6

.THE TOPIC TAKEN IN ORGANISATION

EMPLOYEE ENGAGEMENT AT BHARTI AIRTEL

Employee engagement is defined as the level of commitment and involvement an employee has towards their organization and its values.Engagement is the extent to which employees commit to something or someone in their organization, how hard they work, and how long they stay as a result of that commitmentAt Airtel employee engagement is thought in fresh & innovative ways about the needs of employees. What is promised is delivered & the way to delight the employees move on with a little bit more.

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At Airtel, people whose ideas can make a difference, individuals who thrive on the opportunity to think creatively and be empowered to deliver are searched.   Some Employee Benefits

In line with the commitment towards the continued development of the employees and to provide the necessary impetus towards achieving the organization's 2010 vision of being the most admired brand in the country and a company which is targeted by top talent .

The following are some of the initiatives that are offered to the employeesContinuing Education Policy(CEP) Higher education to employees desirous of pursuing further education while being in the employment of Bharti Airtel Flexible Time Policy to provide an opportunity for employees to contribute more.

THREE COMPONENT STRUCTURE OF EMPLOYEE ENGAGEMENT IN AIRTEL

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REWARD AND RECOGNITION SYSTEM OF AIRTEL

Rewards and Recognition programs honor both individuals and teams who go the extra mile to service their departments and the Caltech Campus. These individuals and teams, who give so much of themselves, help support Caltech’s research and teaching mission.  This collaboration fosters an environment that is rewarding, challenging, and fun.Human Resources, with financial support from the office of the Vice President of Business and Finance, would like to encourage and assist managers and supervisors to reward and recognize their employees.  By creating a culture of recognition, employees become more engaged.  Engaged employees are happy, loyal, and productive.  Everyday there is an opportunity to recognize someone for their service to the Campus without spending a lot of money.  Informal rewards are the icing on the cake that keeps employees motivated, engaged, and coming back for more.

DESIGNING A REWARD PROGRAM

The keys to developing a reward program are as follows:

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Identification of company or group goals that the reward program will support Identification of the desired employee performance or behaviors that will reinforce the

company's goals Determination of key measurements of the performance or behavior, based on the

individual or group's previous achievements Determination of appropriate rewards Communication of program to employees

At Bharti Airtel, the rewards and recognition system is very encouraging and motivating, that helps every employee to enhance their performance day by day.The HR of the company gives its’ employees targets and then on the basis of the targets achieved at the end of the time limit rewards are given. The targets are given on the basis of the new live project with set objectives. The numbers of employees needed for the project are selected on the basis on the skills, experiences and past records.

And the one who achieves targets more than 100 % is considered as The Star of the Month.Or, it can be defined as giving Reward to individual performance that exceeds agreed upon standardsThe star of the month is a Performa which is displayed in every office showing winner’s achievements throughout the month and the reward being given to the winner employee.

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The reward can be in any form whether bonus, salary hikes, mobile gifts, free trip for the employee and his/her family.

The reward can be taken as to Motivate, inspire and energize people, recognize achievements. Financial rewards do encourage people to produce results. But the kind of ownership that really generates energy is not financial. It is emotional. Set stretch goals – they energize people. Become a positive, encouraging person. Give people a sense of responsibility and make them feel that their actions make a difference. Communication with people frequently and praise them...

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STAR OF THE MONTH

NAME

DESIGNATION

TARGETS

ACHIEVEMENTS

REWARD

/ 100

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This unique technique of recognition system helps the winner employee and even other employees in self motivation and thus increases the sense of achieving more and more which ultimately results to the success of the company where every employee wants to be the Star Of the Month.

TRAINING AND DEVELOPMENT

TRAINING AND DEVELOPMENT is a subsystem of an organization. It ensures that randomness is reduced and learning or behavioral change takes place in structured format.Training and development encompasses three main activities: training, education, and development.Training

This activity is both focused upon, and evaluated against, the job that an individual currently holds.

Education

This activity focuses upon the jobs that an individual may potentially hold in the future, and is evaluated against those jobs.

Development

This activity focuses upon the activities that the organization employing the individual, or that the individual is part of, may partake in the future, and is almost impossible to evaluate.

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At Bharti Airtel, training and development is the field concerned with organizational activity aimed at bettering the performance of individuals and groups in organizational settings. It has been known by several names, including employee development, human resource development, and learning and development

In airtel, "Employee Development" was seen as too evocative of the master-slave relationship between employer and employee for those who refer to their employees as "partners" or "associates" to be comfortable with.

The need of training is decided by the senior managers.

The training can be in the form of New product training- training regarding new product or technology coming up in the market and being recently used. Such trainings help employees in getting yell with new product. This training is provided to the employees on the basis of past assessment programs of the employees.

Communication skills training- such training seems to be very beneficial for those employees who re slightly less than other employees in communication. Through this training, discrimination among employees is neglected and all employees are thus prepared to be at same floor with other employees.

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Management training- in such a training, management students during their summer training period are trained beforehand through learning and

experience. Such training can be of great help to the trainees for their job purposes later on.

ECF- EMPLOYEE COMMUNICATION FORM

ECF is a sought of meeting or conference held once in a month or once in two months by the top management. In this meeting all the employees are suppose to gather in the conference hall. There follows open communication between employees and the top management, where employees are free to communicate or can discuss various issues coming up.

Through these meetings employees get chance to get themselves fully engaged with the company and the issues or the new objectives of the company.

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CHAPTER- 7

FINDINGS OF DATA ANALYSIS

1.) Employees are satisfied and most of them enjoy their job profile.

2.)Employees get appraisals and rewards for their good work done as star of the month.

3.)Employees have yield to rise and always try to be ahead of others.

4.)Employees have 60-70% participation in the company’s decisions.

5.)HR policies and practices are followed with the fullest.

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DATA ANALYSIS

Some of the discussions which come from Gallup’s questions are: -

Know what is expected of me at work- employees should know exactly what is expected of them. If expectations are unclear, employees will inevitably face frustration, and will be open for other opportunities where they do know what's expected of them, and where their contributions are measured and recognized.

Materials and equipment- Employees need the right tools and equipment to support their skills, experience and talents & perform their jobs at an optimum level.

Does what I do best every day - Are your employees cast in the right roles? Knowing the critical demands for every role is a key to ensuring that talents fit those demands.

Supervisor/Someone at work cares -Managers must spend most of their time with their most productive talent. Many managers give their greatest degree of attention to employees who are falling behind. Talented, productive people crave time and attention from their managers, and

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will leave your company if they have a weak relationship (or no relationship) with their manager or supervisor.

Co-workers committed to quality.-Many companies arbitrarily put teams together without considering that employees only psychologically commit to teams if they perceive their team members will support their high level of commitment and performance. Talented employees set high standards and depend upon those around them to support their growth toward excellence.

Opportunities to learn and grow- The Company should create an environment that encourages employees to drive towards innovation or to create better systems for more productive results. Great managers always ask what skills and knowledge need to accompany talent to result in the greatest outcome for each

As discussed the Gallup study Q12 is based on positive Psychology and emotions.

Having a best friend at work or receiving recognition every week makes you feel cared for and proud respectively. If you want to keep recreating those positive emotions, then you keep coming back to work.

So the Q. 12 measures engagement, and engagement is a positive emotional connection to the work. Thus the mechanism of the broaden- and – build theories and the action tendencies of positive emotions help in understanding why the Q. 12 has been so powerful for Gallup in terms of predicting outcomes. Borden – and Build theory is about evolutionary significance of positive emotions. Positive emotions are better observed over the long haul. Their effects accumulate and compound overtime and the adaptive benefits are evident from later, when people face new challenges. The Gallup research has thus made a contribution in adding an additional ‘P’ to the 4 P’s of marketing i.e. product, price, and promotion place and now people to the mix. In the combination of engaged employees, Gallup brings engaged customers to form the concept of human sigma. These include customer engagement, loyalty and emotional attachment. Customer engagement hierarchy, customer engagement scores and developing the culture of engagement and customer focus. The Gallup Organization decided to initiate a multi-year research project to try and define a great workplace - a great workplace was one where employees were satisfied with their jobs and this thus helps to produce positive business outcomes.

According to the study of Watson Wyatt, the service – profit chain establishes relationship between profitability, customer loyalty and employee satisfaction, loyalty and productivity. The links in the chain (which should be regarded as propositions) are as follows: profit and growth are stimulated primarily by customer loyalty. Loyalty is a direct result of customer’s satisfaction. Satisfaction is largely influenced by the services provided to customers. Satisfied, loyal and productive employees create value.Employee’s satisfaction in turn results primarily from high quality support services and policies that enable employees to deliver results to customers. While many organizations are beginning to measure relationship between individual links in the service only a few have related the links in the meaningful ways that can lead to comprehensive strategies for achieving lasting competitive advantage of building employee engagement.

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CHAPTER- 8

CONCLUSION

Employee Engagement is the buzz word term for employee communication. It is a positive attitude held by the employees towards the organization and its values. It is rapidly gaining popularity, use and importance in the workplace and impacts organizations in many ways.

Employee engagement emphasizes the importance of employee communication on the success of a business. An organization should thus recognize employees, more than any other variable, as powerful contributors to a company's competitive position.Therefore employee engagement should be a continuous process of learning, improvement, measurement and action. We would hence conclude that raising and maintaining employee engagement lies in the hands of an organization and requires a perfect blend of time, effort, commitment and investment to craft a successful endeavor.

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CHAPTER- 9

SUGGESTIONS

The environment of the organisation should be made more friendly for the trainee so that they can have a talk with others employees even to gather more information .

The organisation should provide trainees some practical knowledge through live projects or old projects.

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BIBLIOGRAPHY

Books:

1. Author : C.B. Gupta, human resource management, sultan chand and sons, date of publishing- feb 2008, number of pages refered from “13.2 – 13.11.”

2. Author- K Ashwathappa, human resource management, TATA McGraw-Hill, fifth edition, 2008, number of pages refered from “455 – 467”.

Journals:

1.) Understanding what drives employee engagement. 3 Gallup Journal, (2003, December 11) The 2003 Towers Perrin Talent Report. 4 Corporate Executive Board.

2.) Washington, DC.5 Walker loyalty report. (2003, September).Indianapolis, IN: Walker Information.6 Employee engagement at double-digit growth companies. (2004).

3.)Steve Crabtree – (2004) Getting personnel in the work place – Are negative relationships squelching productivity in your company? – Gallup Management Journal, June 10, 2004.

4.) Steve Batts – Getting engaged – HR Magazine society for Human Resource Management, Feb. 2004.

5.)Gretcher Hoover – Maintaining employee engagement when communicating difficultissues – Communication World, Nov / Dec 2005.

Internet:

Jteresko – Driving employee engagement – www.industryweek.com

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ANNEXURE

This is a part of my project work.This research is being conducted to find out the factors that are affecting the employee engagement.Please rate the following statements by ticking the yes or no.

Gallup Q. 12 have twelve-question survey that identifies strong feelings of employee engagement. They 12 questions that most effectively calculates the employees state of mind are-

Forms to be filed up by Airtel Employees

EMPLOYEE ENGAGEMENT AT AIRTEL GALLUP Q12 QUESTIONAIRE

Name- -----------------

Designation- ------------------------

Employee code- ------------------------------

1.)Do you know what is expected of you at work?

* Yes * No

2. Do you have the materials and equipment you need to do your work right?

* Yes * No

3.)At work, do you have the opportunity to do what you do best every day?

* Yes * No

4. In the last seven days, have you received recognition or praise for doing good work?

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* Yes * No

5. Does your supervisor, or someone at work, seems to care about you as a person?

* Yes * No

6. Is there someone at work who encourages your development?

* Yes * No

7. At work, do your opinions seem to count?

* Yes * No

8. Does the mission/purpose of your company make you feel your job is important?

* Yes * No

9. Are your associates (fellow employees) committed to doing quality work? * Yes * No

10. Do you have a best friend at work? * Yes * No

11. In the last six months, has someone at work talked to you about your progress? * Yes * No

12. In the last year, have you had opportunities at work to learn and grow? * Yes * No

THANK YOU

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