Telenor Organization Structure and Culture

EXECUTIVE SUMMARY

This report aims to study the organizational

design in depth and its various parameters. For

this purpose, an organization from telecom

industry is being selected.

Telenor is a well established organization which

started its operations in April 2004. This report is

an in depth analysis of the three major

components of organizational design that

includes organizational structure, its culture and

processes. Along with that personnel

management and its characteristics are

discussed in detail. Since strategies resulting

variables are use to determine the effectiveness

of any organization. The main purpose is to

analyze the changing workplace behavior and its

effect on the organization itself.

Most of the information is gathered from primary

research. An interview was conducted with Ms. -

_______________ who helped us in understanding

the organizational design.

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ACKNOWLEDGEMENT

We thank Allah Almighty, who is beneficial and

merciful, and whose blessings enabled us to

complete this activity.

We can’t find words to express our gratitude and

appreciation to Ms. _______, an employee at

Telenor, who provided us with such useful

information and for giving us an insight about the

workings of corporate world.

We admire and respect our parents’ who had

faith in us. Their never-ending prayers made us

worthy of completing this activity.

It is difficult to put in few words our deepest

feeling of gratitude and appreciation to our

course coordinator Mr. Saulat Hussain for his

constant guidance, valuable suggestions and

consistent encouragement.

We are also thankful to our friends who

participated in this activity and helped us

throughout.

Sincere thanks to all.

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Letter of Transmittal

Sir,

Enclosed in this report is what was required by you. We have

tried our best to use our knowledge and capabilities to meet

your requirement. Kindly excuse us if there is any kind of

mistake.

Thanks

Yours

obediently,

ALI FAROOQI

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TABLE OF CONTENTS

BACKGROUND.................................................................................................................1

ORGANISATIONAL DESIGN..........................................................................................2

Functionally efficient.....................................................................................................2

Economically viable.......................................................................................................2

Environmentally aligned...............................................................................................2

Growth promoting.........................................................................................................2

Change responsiveness..................................................................................................3

Individual work..............................................................................................................3

Work-organization.........................................................................................................3

Organizational environment.........................................................................................3

CULTURE...........................................................................................................................4

APPARENT CULTURE.....................................................................................................5

Formal.............................................................................................................................5

Official rules....................................................................................................................5

TYPES OF CULTURE........................................................................................................6

Communal culture...................................................................................................6

Customer service culture........................................................................................6

Diversity culture......................................................................................................7

Creativity culture....................................................................................................7

STATEMENT OF ITS VALUES OR PHILOSOPHY.......................................................9

1. Make it easy.............................................................................................................9

2. Keep promises.........................................................................................................9

3. Be inspiring..............................................................................................................9

4. Be respectful............................................................................................................9

ETHICS.............................................................................................................................10

ORGANIZATIONAL STRUCTURE...............................................................................11

Hierarchical levels........................................................................................................11

Structure of Telenor Pakistan............................................................................................11

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Span of control.......................................................................................................11

Chain of command.................................................................................................12

Integration.............................................................................................................12

Departmentalization.............................................................................................12

Standardization.....................................................................................................13

Centralization and decentralization....................................................................13

Empowerment.......................................................................................................14

Conflict resolution.................................................................................................14

Formalization........................................................................................................14

Flow of information..............................................................................................15

TECHNOLOGY................................................................................................................16

EDGE network in Pakistan..........................................................................................16

Bill payments through Easy Paisa...............................................................................16

Blackberry Service.......................................................................................................17

Technology and Organizational Effectiveness..................................................................17

Input.......................................................................................................................17

Conversion:............................................................................................................17

Output....................................................................................................................18

Technical complexity and Organization Structure............................................................18

High technical complexity....................................................................................18

Climate-friendly technology and virtual travel..................................................................18

COMPONENTS OF PROCESS........................................................................................19

RECOMMENDATIONS...................................................................................................21

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BACKGROUND

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

telecom operations in 14 countries Telenor acquired the license for

providing GSM services in Pakistan in April 2004, and had launched its

services commercially in Islamabad, Rawalpindi and Karachi on 15

March 2005, and on 23 March 2005. Telenor has its corporate

headquarters in Islamabad, with regional offices in Karachi and Lahore.

On January 28, 2005, Telenor established its first call centre in Lahore.

Maintaining a wide coverage in the country, with 500 destinations

covered within less than 16 months of the company’s launch, it is the

2nd largest network of Pakistan after Mobilink with a subscriber base of

21.29 million as of July 2009 (PTA figures). Telenor Pakistan considers

Mobilink as its major competitor.

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

sales and service centers, more than 200 franchisees and some

100,000 retail outlets selling subscriptions and refills achieving a 200%

increase in the subscriber base in 2006 and planning for further

expansion of network and services.

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

packages include:

TalkShawk

Telenor Persona

Djuice.

Telenor Pakistan CEO states:

“Telenor Pakistan is obviously different from the competition. Our

culture is different, our values are different and our focus on the

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fundamentals of business is different. Telenor Pakistan is fully involved

with its key stakeholders and trusted as a friend of the community.”

ORGANISATIONAL DESIGN

Organization design is the formal, guided process for integrating the

people, information and technology of an organization. Keeping this in

view some of important characteristics of Telenor’s organization design

are:

Functionally efficient

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

provides all the required services and products to its customer by fully

utilizing its technologies and other resources.

Economically viable

Telenor is second largest GSM provider in Pakistan and is generating

large profit through effective cost management.

Environmentally aligned

Telenor Pakistan is very much environmentally aligned. It is very

sensitive to the socio-cultural environment of Pakistan. It ha adopted it

to the culture and environment of Pakistan through its advertising and

socially responsible behavior.

Growth promoting

In Telenor Pakistan there are continuous growth and development

chances for its members. The company ensures a secure career

development for its employees.

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Change responsiveness

Telenor Pakistan is very sensitive to the changes taking place in its

surroundings. It keeps on anticipating and responding to the changes

continuously through its unique services. The design of the Telenor

Pakistan ensures the congruency among the following subsets.

Individual work

From the employees of Telenor it has been confirmed that

organizational design of the company provides them with the

opportunities of learning, growth, accomplishment and self-fulfillment.

Due to which they work with full commitment to give their best to the

organization.

Work-organization

The design of the work units and the job are supported by the strategic

objectives of the company. They ensure the full motivation of the

employees.

Organizational environment

Since environment is continuously changing. To compete effectively it

is necessary the design of the organization should be able to adjust

emerging demand of the changing environment. Telenor organizational

design is flexible which adjust itself with the changes taking place

outside the organization to compete effectively.

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CULTURE

The culture at Telenor is top down, the top employees establishes the

tone of the organization. The top level employees take good care while

performing any task or action, because it will have to be followed by

the subordinates. Things are properly informed. There is no means of

getting misinformation.

The employees are provided with the recreational activities, by

sending to hilly areas to get fresh and also perform certain work tasks

which are to be completed in normal routine. They get motivated well

by having recreational activities. The employees are provided by

complete resources that if they move from one place, they move as an

office, they are provided with laptops as well.

Telenor Pakistan consists of energetic, youthful, and dedicated

employees. An appropriate match is required between the culture and

employees at recruitment and hiring. If people excellence (human

resource department of Telenor) feels that a person will not be unable

to adjust into the organization’s environment, even if he/she is

performing functionally well, the person is rejected.

The dynamic group of people sharing similar mindsets, love being with

each other and meet on other occasions if unable to meet during work

hours. They employees can be seen roaming around till 9 at night.

Primarily culture comes from the top management. CEO of Telenor

Pakistan is humble and cooperative. The employees get the message

that if the top management is accommodating then the employees

should behave similarly. The values of humbleness and free interaction

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in putting forth ideas to a harmonious culture and efficient

communication. The management is easily accessible to discuss

various issues. It is difficult to distinguish between them as the culture

is so homogenous that it keeps everyone at par with others.

The Human Resource at Telenor Pakistan is their core competency. The

reason is that the employees create a culture and all the achievements

of Telenor are attributed to its flexible culture. It is necessary to

motivate and retain this asset of the organization. For this purpose,

training and compensation is provided to employees along with other

motivational techniques.

APPARENT CULTURE

Formal

The culture at Telenor is quite flexible, which is most suitable for the

employees on the other hand ensuring all the targets is met.

Employees are not bound to follow a dress code unless they are to

attend a formal meeting. This culture has been set by the CEO himself

and the new employees coming into the organization have no

difficulties in adjusting into it.

Official rules

At Telenor Pakistan, the level of standardization and mutual

adjustment varies across functions. Generally strict obedience to rules

is not required as long as results are not affected. As long as individual

responsibilities and deadlines are met, there are flexible hours of work.

Work is important instead of the number of hours worked. Employees

can select their work timings which can even be from afternoon to

evening. Instead of being bound by office hours, a sense of

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responsibility is inculcated in them to achieve self assigned goals. This

brings a sense of comfort in working in such organizational structure.

Rules and procedures are present to control the behavior of employees

and to facilitate smooth working of the organization. A level of

standardization is required to be maintained in certain vital functions

such as Budget Control. SOPs are documented in the case of the

financial control or HR related policies.

TYPES OF CULTURE

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

believe every type has its own advantages and disadvantages. They

try to use the right ones in the right manner and at the right time to

improve efficiency.

Communal culture

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

making. Employees are empowered. The employees are friendly to one

another. Employees are being empowered to carry out the task they

way they like to. The only concern is the accomplishment of required

goals. Being empowered, employees feel part of Telenor. As a result

they work hard since they consider organization’s success to be their

success. Whenever an employee has a new idea, he/she is encouraged

to approach the management and share it with them. Idea drop boxes

are also placed at various locations where employees leave their

suggestions

Customer service culture

Telenor believes that its success mainly depends on the level of

satisfaction of customers. The more the customers are satisfied, the

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more customers they will be able to attract and retain. As a result,

their profits and market share will increase.

Telenor’s aim is to keep the customers satisfied as much as it can. For

this reason they have Customer Relation Department or Customer

Service Centre the different customer queries and complaints are

raised daily by number of customers which are dealt by this

department. Sometimes, the employee’s frustration increases as the

workload or customer queries increases. This issue is dealt with care at

Telenor. Since the management believes that in service industry,

customer delight can only be achieved if the employees are satisfied.

Only a satisfied employee can handle the customer with care.

Diversity culture

Telenor Pakistan is keen to promote diversity and has achieved good

results in this area. Telenor has developed requirements for diversity in

both recruitment and management development programs. There is an

appropriate blend of less seasoned and experienced employees. No

quota has been assigned; the best-fit candidate (according to the job

requirements) is employed. At the office level or call centers, even

fresh graduates are apt but the director level requires a masters

degree and preferably some work experience. Telenor Pakistan has a

large proportion of females who are recruited for internal leadership

development programs and executive positions on the basis of past

performance. The organization is working on Day Care Centers to help

female employees manage their responsibilities after settling down.

Relocation issues are dealt cooperatively when female individuals

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move out of the city after marriage and wish to continue working. They

are relocated and facilitated in the new city.

There is an effective hiring process. Only those people are hired which

the HR department would believe can easily blend into the culture of

the organization. This ensures harmony within the whole culture

effectively manages diversity.

Creativity culture

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

customer satisfaction and goal setting, is highly encouraged at

Telenor. Employees are also motivated to come up with innovative

ideas and to convey them to the upper management. If the ideas are

feasible enough to be implemented then they are applied to respective

areas and the employees are duly rewarded for their contributions. For

example the sales personnel have a greater interaction with customers

and knowledge of their needs. They can convey this information to the

management who can use it to design better consumer packages.

Efficiency is achieved through maximum utilization of resources and

also through adherence to goals set by the top management. Telenor

introduced the Six Sigma program for the improvement of its business

operations in the very first year of its operations in Pakistan. This has

helped the organization in maintaining its quality standards and also in

the up gradation of its business processes.

Telenor Pakistan is a young and progressive organization which has a

multitude of strengths in its existing organizational design. There are

still a few weaknesses which can affect the organization in the long-

run. Beginning with the strengths, there are no communication

barriers. There are seven layers in the organization so one would

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believe that there would be a lot of communication barriers between

the employees and their superiors but that is not the case. The policies

adopted ensure that there are no communication barriers present.

They include an open door policy and open work environment where

the managers sit with their sub-ordinates and do not have separate

offices. Also employees of the same level have no cubicles so it helps

in enhancing the communication amongst them. Employees are

encouraged to take initiatives and come up with new ideas.

Empowerment exists. Also these ideas can easily be communicated to

their superiors. Employees are free to express themselves. The span of

control also suggests that not all powers rest with any particular

individual. In projects people are encouraged to come up with the best

possible solutions and the manager just oversees the performance of

employees. The SOPs and guidelines have to be followed in order to

ensure smooth functioning of all departments.

STATEMENT OF ITS VALUES OR PHILOSOPHY

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

be the core values of Telenor has been made. It includes four points n

which Telenor operates worldwide:

1. Make it easy

We are practical. We don’t complicate things. Everything we produce

should be easy to understand and use. Because we never forget we’re

trying to make customers’ lives easier.

2. Keep promises

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

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

3. Be inspiring

We are creative. We strive to bring energy to the things we do.

Everything we produce should look good, modern and fresh. We are

passionate about our business and customers.

4. Be respectful

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

formula worldwide. We want to be a part of local communities

whenever we operate. We believe loyalty has to be earned.

ETHICS

While making any decision, Telenor Pakistan has been ethically

conscious. Since Telenor (the parent company) has its origin in

Norway, a society with a soft-oriented and feminine culture, Telenor

Pakistan acknowledged its moral and ethical duty towards its

stakeholders and society. Telenor Pakistan will not resort to bribery or

illegal offers to accept any decision, values will not be compromised. If

the organization believes it is not ethically right, it will never take that

decision.

In most of the advertisement, they project themselves as the care

taker of the values of Pakistani people, so they claim to cherish the

core cultural norms and values of the Pakistani people. When the

cartoon controversy arose, Telenor condemned such action mocking

religious beliefs and portrayed this on their building.

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ORGANIZATIONAL STRUCTURE

Hierarchical levels

The organic structure of Telenor Pakistan promotes cultural values

that result in integration and coordination. Roles and responsibilities

are clearly defined at the time of joining the organization; employees

are selected against defined criteria. Roles can be added later but

employees have a fair idea about their job responsibilities from the

beginning.

Structure of Telenor Pakistan

Span of control

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Span of Control is determined by the role and job responsibilities of

managers. It varies from department to department. On average, the

span of control is 4-5 people under a manager. There are two types of

span of control:

Wide span of control

Narrow span of control

The HR and finance department have a narrow span of control but

marketing and customer relation have a wide span of control.

Chain of command

Chain of command means a continuous line of authority extending

from top to bottom. Telenor Pakistan has a clear chain of command

which helps in getting good results for Telenor.

Integration

Cross-functional teams are a major integrating mechanism. Further

there are temporary project teams. Team-building is enhanced by

Away Days when members of different divisions and departments take

some days away from work to meet other geographically spread

employees of Telenor. Sometimes the whole department goes away

from work for 2-3 days to have fun. Employees get to know those with

whom they have communicated before but not met in person. Formal

team evaluation does not exist. Employees on teams are rewarded

individually.

Departmentalization

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Telenor Pakistan has several departments in its organization. Each

department has its own importance. Some of the departments are as

follows:

Customer Relation Department

Human Resource Department

Marketing Department

Finance Department

Information Technology Department

Standardization

At Telenor Pakistan, the level of standardization and mutual

adjustment varies across functions. Generally strict obedience to rules

is not required as long as results are not affected. As long as individual

responsibilities and deadlines are met, there are flexible hours of work.

Work is important instead of the number of hours worked. Employees

can select their work timings which can even be from afternoon to

evening. Instead of being bound by office hours, a sense of

responsibility is inculcated in them to achieve self assigned goals. This

brings a sense of comfort in working in such organizational structure.

Rules and procedures are present to control the behavior of employees

and to facilitate smooth working of the organization. A level of

standardization is required to be maintained in certain vital functions

such as Budget Control. SOPs (standard operating procedures) are

documented in the case of the financial control or HR related policies.

Genuine requests from external customers are taken into account by

the CRO (Customer Relationship Officer) at Service Centers. The CRO

does all they can or is possible within authority to process the request

or complaint. If the customer’s request is beyond the authority of the

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CRO, then managers are there to aid the customer or provide some

sort of non monetary compensation to appease him.

Centralization and decentralization

Apart from strategy, all other functions are de-centralized. People at

Telenor Pakistan are motivated to take their responsibilities especially

in cross functional projects. Managers in each department oversee that

the employees take up their roles and duties and their performance is

monitored accordingly.

Empowerment

The level of empowerment differs across departments and divisions,

depending on the nature of work. It varies according to the style of

management of functions. IT increases the level of empowerment.

Within the network service of the Telenor in Pakistan, there is a (inter

and intra net) portal system used to communicate information

efficiently. An online HR MS System is being used internally. This

locally built system was launched last year but is still not well

integrated at present.

Conflict resolution

When different departments work together in an organization, their

interests may differ due to functional and structural differences. Due to

these variations, conflicts among departments are inevitable. The

issues are not taken to the top management and there is no

coordination post in the organization which can facilitate the

departments to increase coordination with each other. Whenever a

conflict arises among functions, the heads or managers from those

functions sit together and discuss the source of conflict. They try to

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resolve all their differences amicably. If, however, a major issue arises

which they are unable to resolve themselves then it is taken to a level

higher. The management then discusses the reason for the conflict,

addresses the concerns of both the parties and then arrives at a

conclusion which is in the interest of all departments.

Formalization

There is no formalization at Telenor Pakistan. High level and lower

administration work together as a team.

Flow of information

Telenor has very liberal and free flowing information unless it is not

private. This helps in breaking the communication barriers and

generation of new and innovative ideas from employees. The free flow

of information also helps them in understanding the current situation

to act accordingly.

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TECHNOLOGY

Telenor Pakistan for further enhancements in technology especially in

data capability over the core GPRS / GSM network will be provided in

both networks with the installation of Enhanced Data for Global (GSM)

Evolution technology. This component of the two systems will be

installed after the initial roll-outs and will allow the subscribers to have

the use of advanced mobile services such as downloading video and

music clips, full multimedia messaging, high-speed color Internet

access and email on the move.

EDGE network in Pakistan

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

to mobile devices. It allows subscribers to send and receive data,

including digital images, web pages and photographs, three times

faster than that possible with an ordinary GSM / GPRS network. Using

EDGE, operators can handle three times more subscribers than GPRS,

triple their data rate per subscriber, or add extra capacity to their voice

communications.

Bill payments through Easy Paisa

The way the organization converts its Like, Telenor Pakistan and

Tameer Microfinance Bank together have announced the launch of

Easypaisa, a uniquely convenient and safe way for everyone to carry

out financial transactions. Easypaisa users will have the freedom to

make bill payments and send and receive money at thousands of

outlets and in addition manage their bank accounts over their mobile

phones. Easypaisa combines the best from the financial and mobile

sectors, offering the first branchless banking solution of its kind in

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Pakistan and neighboring countries. The Telenor Group is an

international provider of high quality telecommunication, data and

media communication services.

Blackberry Service

Telenor and Research In Motion (RIM) announced the launch of the

BlackBerry solution in Pakistan. This technology smartphones, software

and services to allow easy wireless access to email, messaging, phone,

organiser, web and multimedia applications, as well as thousands of

other business and lifestyle applications. Telenor customers in Pakistan

will now be able to enjoy the freedom and productivity benefits of

using BlackBerry®smartphones to stay connected to people and

information on the go.

All this shows that technology exist al all the levels of Telenor And they

are using state of the art technology. Telenor is pioneer in many things

They were also the first ones to reach remote areas where no other

telecom company had courage to Go.

Technology and Organizational Effectiveness

Technology usage at Telenor is for creating high value for the firm by

making sure its presence in all the organizational activities of Telenor.

Input

By the use of technology at input level enables the each organizational

function of Telenor to handle relationships with outside stakeholders so

that the Telenor can effectively manage its specific environment.

Conversion:

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Technology helps to transforms inputs into outputs (high valued

services).

Output

Use of technology at output level allows the Telenor to effectively

dispose of services to external stakeholders

Technical complexity and Organization Structure

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

High technical complexity

The conversion processes at Telenor for providing out in the form of

services can be programmed in advance and it is fully automated.

An organic structure is the appropriate structure for this type of

technology as we know that the Telenor Pakistan is more inclined

towards the organic structure.

Climate-friendly technology and virtual travel

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

awareness of climate-friendly technology. In several of the markets

they offer mobile music stores. Downloading music instead of

purchasing CDs helps to reduce CO2 emissions. Products and services

also include alternatives to physical travel, such as holding virtual

meetings, video conferences and phone conferences.

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COMPONENTS OF PROCESS

Innovation mainly in the areas of business processes, customer

satisfaction and goal setting, is highly encouraged at Telenor.

Employees are also motivated to come up with innovative ideas and to

convey them to the upper management. If the ideas are feasible

enough to be implemented then they are applied to respective areas

and the employees are duly rewarded for their contributions.

Efficiency is achieved through maximum utilization of resources and

also through obedience to goals set by the top management. Telenor

introduced the Six Sigma program for the improvement of its business

operations in the very first year of its operations in Pakistan. This has

helped the organization in maintaining its quality standards and also in

the up gradation of its business processes. Telenor Pakistan is a young

and progressive organization which has a multitude of strengths in its

existing organizational design. There are still a few weaknesses which

can affect the organization in the long-run.

There are no communication barriers. There are seven layers in the

organization so one would believe that there would be a lot of

communication barriers between the employees and their superiors

but that is not the case. The policies adopted ensure that there are no

communication barriers present. They include an open door policy and

open work environment where the managers sit with their sub-

ordinates and do not have separate offices. Also employees of the

same level have no cubicles so it helps in enhancing the

communication amongst them.

________________________________________________________________________20

Employees are encouraged to take initiatives and come up with new

ideas: empowerment exists. Also these ideas can easily be

communicated to their superiors. Employees are free to express

themselves. The span of control also suggests that not all powers rest

with any particular individual. In projects people are encouraged to

come up with the best possible solutions and the manager just

oversees the performance of employees. The SOPs and guidelines

have to be followed in order to ensure smooth functioning of all

departments

Strong integration with in the organization has been a key success

factor.

All conflicts are managed by the concerning departments and if not

they are taken one level above but there have been no such cases

which have been reported to the CEO. The managers of the concerned

departments sit and come up with a solution which is acceptable to

both the departments. Social gatherings also help in enhancing the

integrating capabilities of the organization.

Employees are evaluated on the basis of individual evaluation. Even

when they are working in a group this ensures that there are no free

riders. Underperforming employees are provided with counseling

sessions or shifted to another position where they can perform in a

more effective manner. All employees are assigned specific roles and

responsibilities for which they are held accountable. There are no

specific work hours but employees are supposed to meet the specific

deadline. This also increases the motivation level of the employees as

they are not bound yet increases their level of productivity as they are

motivated. This results in effective evaluation. Similarly there is an

effective hiring process. Only those people are hired which the HR

department would believe can easily blend into the culture of the

________________________________________________________________________21

organization. This ensures harmony within the whole culture effectively

manages diversity.

All the point discussed above lead to a flexible culture which is most

suitable for the employees on the other hand ensuring all the targets is

met. Employees are not bound to follow a dress code unless they are

to attend a formal meeting. This culture has been set by the CEO

himself and the new employees coming into the organization have no

difficulties in adjusting into it.

RECOMMENDATIONS

Dealing with challenges requires a coordinated effort so that the

company is able to sustain itself in the ever-changing competitive

environment and continues to provide superior value to the customers.

The group recommends the following:

There should be an effective employee exchange program even

at the level of middle management so the organization can share

the level of skill and expertise at all levels with the parent

company

Introduction of employees stock options would further enhance

the motivation level because then the employees too would have

a stake in the organization.

·In their workforce there should be a quota for the disabled

people. This is currently being practiced in the parent company.

This would enhance the image of the organization being socially

responsible

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