HRM Project Telenor

8/3/2019 HRM Project Telenor

http://slidepdf.com/reader/full/hrm-project-telenor 1/46

We are the producers of quality reports for your business. Specific area of your business. Anyunknown problem that you may face in your organization but you don't know about that. Ourconsultancy will boost up your business it is guaranteed.

CULTURALLY

COMPATIBLE

HUMAN RESOURCESTRATEGIES

This Report Is a Collaborative Effort Of:

(MB-08-12)

(MB-08-16)

(MB-08-06)

(MB-08-20)

(MB-08-61)

(MB-08-75)

(MB-08-33)

Iqra Khan



Sidra Ghazanfar

Zoya Chaudhry

Kokab Khalid

Mudassir Khalid

Sher Afghan

Faizan

REPORT SUBMISSION

With Due Respect We the Group Members Submit This HumanResource Report to Our Instructor of Human Resource

Management

Madam Bushra Baig



TABLE OF CONTENTS

Preface…………………………………………………………………………………..…..4

Culture…………………………………………………………………………………..…..5

Organizational structures for global business…………………………………………....…5.

Cultural compatibility & HR…………………………………………………………..…....8

Globally oriented culture………………………………………………………………..…..9

Globalization vs. cultural identity………………………………………………………..…11

Cross-cultural differences and HR…………………………………………………….……13

CASE STUDY- conflict resolution strategies of Canadian and Chinese executives ….......17.

CASE STUDY-German industrial enterprises………………………………………….….18

CASE STUDY- leading Chinese telecom corporation – Huawei………………………….21

Implementing global HR strategies……………………………………………………..….24

Cross-cultural competent HR…………………………………………………………..…..25

Effective HR strategies in globalization……………………………………………………26

References………………………………………………………………………………..…28

Report: culturally compatible HR strategies of TELENOR…………………………….….34

Company profile…………………………………………………………………………….35

Vision & core values of Telenor………………………………………………………...….36

Organizational structure……………………………………………………………….....…37

HR department of Telenor……………………………………………………………….…37

Global presence…………………………………………………………………………….38



Cultural compatibility in Telenor…………………………………………………………..40

Culturally compatible HR strategies of Telenor……………………………………………46

Challenges………………………………………………………………………………….48

Conclusions…………………………………………………………………………………49

Comments……………………………………………………………………………….….49

Recommendations…………………………………………………………………………..50

Our visit………………………………………………………………………………….…51



PREFACE

This report reviews the Human Resource Management (HRM)

of Telenor, the second largest telecom company in Pakistan. Wegive a brief history of the company and tell about the corporatehuman resource of Telenor primarily in Pakistan. It put light on

the culturally compatible HR strategies of the organizationaround the globe. Telenor is a multinational company that hasset up its operations in Europe and Asia. This report puts lighton the specific Hr strategies, policies and practices of Telenor

that makes it culturally compatible in different nations. We start

our consideration with the theoretical knowledge of culturallycompatible HR strategies giving some real life case studies of leading multinational & transnational organizations. In the end

we conclude with our recommendations for globalorganizations.

CULTURE

“Culture is the customs and civilization of a particular people or group”



CULTURAL COMPATIBILITY

“It is the capability of different cultures to live together harmoniously.”

When an organization goes global and sets up its operations in some other country, itfaces a totally different culture of that particular location. This local culture is their inthe attitudes, work styles, demands and perceptions of the local human resource. Aglobalizing organization thus has to make its home culture compatible with the localculture in order to survive in the local market. The new transnational environmentrequires a plethora of individuals who can work internationally – who are ultimatelyflexible, accommodating, and adaptable to different cultures and varying ways of doing things. Those organizations who effectively pursue culturally compatible HRstrategies actually achieve success in long-run.

Studies on the success or failure of individuals in an international setting haveindicated that American expatriates experience a failure rate of 30 to 40 percent ascompared to many Europeans and Japanese, whose failure rate has been estimated aslow as six percent (Tung 1988). It appears that some countries or cultures are moreeffective at producing successful global professionals than other countries.

ORGANIZATIONAL STRUCTURES FOR GLOBAL

BUSINESS

There are 4 main organizational structures for global business:

1) Domestic exporter - heavy centralized activities in onecountry (financing, sales, marketing, human resources, strategicmanagement) while sales are dispersed using agency agreements,and subsidiaries that are reliant on the home company. i.e.Caterpillar Corp.

HR STRATEGY :

Domestic exporters just have to rely on the sales staff of local area;therefore they adjust the HR policies regarding the pay scales, skillsrequired and evaluation for sales personnel only.

2) Multinational firm - control and management of finances outof central home base, while production, sales and marketing



operations are in other countries. Products are made to fit localmarkets i.e. financial firms, General Motors etc

HR STRATEGY :

Multinational firms have to set their HR strategies for the employees of all departments according to the culture of respective firms. Here thebudget of the firms is being set in home base while the pay scales as wellas incentive plans & benefits are the core discretions of national firms.

3) Franchisers - product is created, designed and financed inhome country, but for product-specific reasons, there is a heavyreliance on foreign personnel for production, marketing, andhuman resources. i.e. McDonald's, KFC

HR STRATEGY:

Franchisers are just like multinational firms with the only difference thatmultinationals create the whole separate set up for all national campuseswhile the franchisers follow the strict policies and strategies of HR beingpre-set by the home base. However franchises may carry out specific HRplans as per the local cultural adjustments but within a restrictedprovision of base.

4) Transnational firms - have no national home base, have

several regional home bases, and optimize supply and demandconstraints locally, central core for decision making, but dispersedpower and financial power to the divisions. i.e. Citicorp, Sony,Ford

HR STRATEGY :

Transnational firms retain the freedom of decision-making indetermining its own HR strategies. Such strategies follow the culturaladjustments in the best interest of company. Such HR strategies are fully

coated with local cultural essence that gives the firm a new homeenvironment.



CULTURAL COMPATIBILITY AND HUMAN

RESOURCE MANAGEMENT

Human resources or, as some would call it, human capital, is becoming the mostimportant asset for most organizations in the world. As the New Economy pervades inthe world‟s communities and organizations, it becomes necessary to study and pay

close attention to the impact of Globalization and Technology in shaping today‟s

strategy for managing culturally diverse human resources.

Globalization has resulted in significant implications for HR functions as they attemptto develop global HR strategies and design programs and processes to manage a

global workforce. The key to success is to balance global standardization and localautonomy.

The challenge for Human Resource leaders is really to understand the role of HumanResource Management in an organization competing in a global business environmentand effectively define the critical issues and responses necessary in implementing astrategic Human Resource Program.

v Studies on the success or failure of individuals in an internationalsetting have indicated that American expatriates experience a failure rateof 30 to 40 percent as compared to many Europeans and Japanese,whose failure rate has been estimated as low as six percent (Tung 1988).It appears that some countries or cultures are more effective at producingsuccessful global professionals than other countries.

v Moore (2003) argues that there are 10 countries that produce thelargest number of “good” global managers: Canada, the Netherlands,

Switzerland, Belgium, Ireland, Sweden, Denmark, Singapore, Australia,and Finland. According to Moore, what these 10 countries have incommon is their size. While they are not dominant powers in theirgeographic regions, they are considered significant players on theinternational stage. These middle-economy countries face the everydayreality that they are not the most important culture in their region andthus they find themselves constantly negotiating between their own



culture and identity and that of surrounding dominant cultures. In orderto be successful, individuals growing up in mid-sized countries learn toembrace multiple ways of looking at the world. They grow up with aduality (or plurality) that obliges them to work effectively with theirneighbors. It is this ability to be “all things to all people” that helps suchindividuals to be successful in a global context. “When working onglobal teams or in other countries, the ability to think outside your ownculture and see an issue through the eyes of another is critical to success”(Moore 2003)

v In the field of psychology considerable work has been conducted on people‟s sensitivity to intercultural issues and their ability to adapt to

other cultures and different ways of doing things. Some organizationshave moved to personality testing to better ascertain the likelihood of success of individuals working in an international environment.

GLOBALLY ORIENTED CULTURE

Much has been written on the influence of culture and global orientation on business.These “deeply ingrained assumptions, generalizations, or … images that influencehow we understand the world and how we take action.”

An ethnocentric mindset is one that basically holds one‟s own values, beliefs, and

culture are intrinsically superior to those of others. Ethnocentric individuals interpret

the world through the eyes of their own culture, not recognizing, even devaluing,cultures that are different from their own. “If it works here, it‟ll work anywhere,”

exemplifies the ethnocentric individual. Ethnocentric can play an important role inpreserving standards and uniformity across the global corporation.

A polycentric mindset is one that adapts and assimilates to the values, attitudes andbeliefs of another culture. Because they are highly attuned to the conditions andexpectations of other cultures, polycentric individuals can play the role of empathetic“advisors,” effective at bridging the gap and transferring knowledge between the localenvironment and corporate. The danger with the polycentric mindset is the tendency

to “go native”, sometimes to the detriment of the organization‟s objectives.

A geocentric mindset is one that believes there are certain cultural universals andcommonalities in the world and that no culture is superior or inferior to another. Thegeocentric mindset accepts the premise that bright people [do] bright things aroundthe world” (Sullivan 2001). Also called “cosmopolitans,” these types of individuals



focus on “finding commonalities and spreading universal ideas and juggling therequirements of diverse places” (Kanter 1995).

GLOBALIZATION vs. CULTURAL IDENTITY

It is fair to say that the impact of globalization in the cultural sphere has, mostgenerally, been viewed in a pessimistic light. Typically, it has been associated withthe destruction of cultural identities, victims of the accelerating encroachment of ahomogenized, westernized, consumer culture. This view, the constituency for which

extends from (some) academics to anti-globalization activists (Shepard and Hayduk 2002), tends to interpret globalization as a seamless extension of – indeed, as aeuphemism for – western cultural imperialism.

Into this world of manifold, discrete, but to various degrees vulnerable, culturalidentities there suddenly burst (apparently around the middle of the 1980s) thecorrosive power of globalization. Globalization, so the story goes, has swept like aflood tide through the world‟s diverse cultures, destroying stable localities, displacingpeoples, bringing a market-driven, „branded‟ homogenization of cultural experience,

thus obliterating the differences between locality-defined cultures which hadconstituted our identities.

WEST VICTIMIZING EASTERN CULTURE

Though globalization has been judged as involving a general process of loss of cultural diversity,

some of course did better, some worse out of this process. Whilst those cultures in themainstream of the flow of capitalism – those in the West and, specifically, the UnitedStates – saw a sort of standardized version of their cultures exported worldwide, it

were the cultures of the developing world that have been most threatened. Thus theeconomic vulnerability of these non-western cultures is assumed to be matched by acultural vulnerability.

GLOBALIZATION PROLIFERATES CULTURE



Cultural identity is at risk everywhere with the depredations of globalization, but thedeveloping world is particularly at risk. But another, quite contradictory, story can betold: that globalization, far from destroying it, has been perhaps the most significantforce in creating and proliferating cultural identity. To take just one example, ManuelCastells devoted an entire volume of his celebrated analysis of „The Information Age‟

to the proposition that: „Our world and our lives are being shaped by the conflictingtrends of globalization and identity.‟ For Castells, the primary opposition to the powerof globalization lies in „the widespread surge of powerful expressions of collectiveidentity that challenge globalization on behalf of cultural singularity and people‟scontrol over their lives and environment‟ (1997: 2). Far from being the fragile flower

that globalization tramples, identity is seen here as the up surging power of localculture that offers resistance to the centrifugal force of capitalist globalization. Theimpact of globalization thus becomes, more plausibly, a matter of the interplay of aninstitutional-technological impetus towards globality with counterpoised localizingforces. The drive towards globality combines logic of capitalist expansion with therapid development of deterritorializing media and communications technologies. Butthis drive is opposed by various processes and practices expressing different orders of „locality‟.

GLOBAL-LOCAL CULTURAL STRATEGY OF HR

In a global-local strategy, cultural differences amongst employees can be seen as astrategic advantage for cross-border learning capabilities and the flexibility of thecompany.

This policy can be summarized as follows:

“As much global integration as possible, as much local adaptation as absolutelynecessary.”

Ø Hewlett-Packard manager illustrated the direction in onesentence:

“We want one solution for the world rather than 54 country solutions. Weoptimize at the company rather than the country level.”

Ø IBM, on the other hand, values a regional differentiation in theirhuman resource policy. They believe in making exceptions, in flexibilityin the area of deployment even as far as differentiated standardization:

“ This is the span needed to bridge the political and cultural gaps,



especially between westernized corporate cultures and Asian country cultures”(Begley/Boyd

2001).

CROSS-CULTURAL DIFFERENCES AND HR

A growing body of research has emerged over the past decade looking at cross-cultural differences in negotiation style [Fisher 1980; Tung 1984]. These studiesconclude that people of different cultures use significantly different negotiationapproaches. These different approaches include:

Ø communication styles used

Ø Persuasion strategies employed

Ø Protocols followed.

CROSS_CULTURAL CONFLICTS:

Negotiation studies all point to possible differences in the way conflict is viewed andmanaged, little attention has been paid to differences in reacting to cross-culturalconflicts in negotiations. Yet, the handling of conflict is critical to any effective cross-cultural negotiations.

When two parties negotiate in a joint project, buyer/seller relationship or any otherbusiness context, conflict inevitably arises [Habib 1987]. It may arise because of differences in the perceptions of the decision making environment, or preferences forparticular actions, behavioral styles and/or goals between the parties [Fisher 1974].How the parties respond to conflict also depends on a number of factors, including thenature of the conflict, the cultural orientation of the individuals, and the affiliation of the parties. It is clear that how the parties perceive, respond to, and choose to resolveconflicts is critical to the success of any long-term business relationship. Individualsfrom different cultures are known to adopt different conflict resolution strategies.Ting-Toomey [1988] proposed that members of collective cultures perceive and

manage conflict differently from those in individualistic cultures.

INTRA- VERSUS INTER-CULTURAL NEGOTIATION STRATEGY

There is no consensus on whether decision makers extend their domestic negotiationstyles to negotiating with cross-cultural partners. Managers may assume different



negotiation styles with parties of another culture to seek greater cooperation [Graham1985].

Ø When dealing with members of a foreign culture, a manager may tryto adopt behavioral patterns similar to the other party. The negotiators

who appear similar may be more attractive to the other party and,thereby, enhance the bargaining outcomes (see review by Evans [1963];Rubin and Brown [1975], and Francis [1991]). A business deal is abusiness deal, and profit maximization knows no cultural boundaries.

DEVELOPMENTAL MODEL OF INTERCULTURAL SENSITIVITY

Milton Bennett‟s Model of Intercultural Sensitivity provides a useful roadmap for

understanding the acquisition and maturity of individual cultural awareness. andglobal orientation. Bennett (1993) postulates a development progression that that allindividuals go through as they develop into geocentric or cosmopolitans (see Figure13). As individuals mature globally, they move from the “ethnocentric” stages of denial, defense, and minimization to the “ethno relative” stages of acceptance,adaptation, and integration. Other empirical work has demonstrated that the moreinternational experiences individuals have, the less ethnocentric they become (Guyand Beaman, forthcoming). Hence, associates who have reached the ethno relativestages of their individual development – those with geocentric mindsets – are vital forthe new chaordic, Transnational HR organization to function effectively.

COLLECTIVISM/INDIVIDUALISM

The differences between the Chinese and North American culture are welldocumented.

COLLECTIVISM:

Ø The Chinese culture is collective and of "high context."

Ø Collectivism emphasizes group harmony and interdependence.



Ø Chinese negotiators dislike taking the initiative and normally paymore attention to maintaining a harmonious relationship

Ø When successive efforts within the inner circle fail, the conflict islikely to be met with resolute force by the authorities

Ø PRC executives were also found to be more dichotomizing (i.e.,inclination to classify the world into extremes-black or white, evil orgood

Ø In their decisions, more likely to consult their superiors

Ø motivation for favoring certain norms over others is also driven bycultural factors

Ø Societal norms are known to reward those who subscribe to them andpunish those who deviate

HR STRATEGIES

· In two-person, buyer-seller simulations, it is more effective to use competitive(domineering) strategies to negotiate with Chinese.

· avoid open conflict, and when a conflict emerges, it must be resolved in innercircles before it becomes serious enough to justify public involvement.

· avoid potential conflicts and smooth over issues.

· use delaying tactics

· use more obliging and avoiding conflict resolution styles

· maintain relations as key motivators in their negotiation strategy

INDIVIDUALISM :

Ø The North American culture is individualistic and of "low context”

Ø Individualism emphasizes individual rights and independence.

Ø American negotiators tend to be authoritative, autocratic and in ahurry to make a deal



Ø American executives are less dichotomizing

Ø less decisive

Ø American executives emphasize personal motivations (Self-Esteem,

Position In Company) or situational explanations as key motivators

HR STRATEGIES

· in two-person, buyer-seller simulations, it is more effective to use problem-solving integrative strategies to negotiate with Americans

· use less obliging and avoiding conflict resolution styles

· show more concern for goal achievement

· individuals be responsible for all decisions by themselves.

· Turning to superiors for instruction on ordinary conflicts, particularly task-related conflicts could signal incompetence at one's level of responsibility

Here, a case study on conflict resolution concerning Chinese and Canadian culture

would more elaborately describe it.

CASE STUDY: CONFLICT RESOLUTION

STRATEGIES OF CANADIAN AND

CHINESE EXECUTIVES

Executives from two cultures-Canadian and People's Republic of China (PRC)-wereasked to respond to conflict in the context of a joint project negotiation scenario. Theyresponded under two conditions-when the potential partner firm was from their own

culture and when the firm was from the other culture. Each executive evaluatedpotential partner firms that would likely cause two different types of conflicts-"person" related and "task" related-using in-basket decision scenarios.

The study used a 2 (Country: Canadian and PRC executives) by 2 (Culture-Intraversus Inter-cultural) by 2 (Conflict: Person-related versus Task-related conflict)experimental design. This study differs from existing literature by studying:



(1) How executives from collective and individualistic cultures react to conflicts in joint projects

(2) How intra- and inter-cultural negotiations differ

(3) How person-related and task-related conflicts generate different resolutions byexecutives of collective and individualistic cultures

CONCLUSION

This study confirms that home culture orientation (collectivism versus individualism)affects executives' responses to conflicts. Executives from countries which differ inthis cultural dimension tend to adopt different strategies to resolve conflict, developdifferent expectations about possible outcomes, and be motivated by different causes.

The collectivist/individualist orientation was also found to affect social rules used tomaintain group harmony. A superior is responsible for maintaining an effectivebalance between subordinate human relationships and corporate goals, and in Chinathe superior/subordinate relationship usually has been. This study found that beingfrom a different culture does not place one in a disadvantageous position innegotiation. Executives from both PRC and Canada used the same conflict resolutionstrategy and were motivated by the same underlying factors regardless of the cultureof the potential partner. While this may put international negotiators somewhat atease, by lending support to the globalization of business norms, the finding may besituation specific.

This study found that person-related conflicts elicit different responses compared totask-related conflicts. Regardless of culture, person-related conflicts seemed to invitenegative, more relation-oriented (versus information-oriented) responses, andappeared to be less satisfying, if more controllable, than task-related conflicts, treatedwith caution. Executives from different cultures may tend to assume differentstrategies during such processes.

CASE STUDY: GERMAN INDUSTRIAL

INTERPRISES

A few years ago it was typical to give one‟s subsidiaries a free rein and send managers

overseas from headquarters only. But today a great deal depends on overcoming this



one-way street and in looking for and employing the best-suited managers, regardlessof their origins. What contributions can human resource management make towards acompany‟s global orientation – an area in which local scope and latitude aretraditionally very high.

This is a study on German industrial enterprises named “DEVELOPING GLOBALHUMAN RESOURCE STRATEGIES” by Hans-Erich Mueller. It shows that inrecent years German industrial enterprises have re-aligned the management of theirexecutive staff. Cornerstones of this quiet revolution are a policy of worldwide parityof executives in evaluation, remuneration and development, greater participation of those with line responsibility from product areas and regions in strategic development,as well as a re-alignment of human resource instruments. Worldwide standards inhuman resource policy are key factors in the competition for qualified managers. Notonly companies, but also executives need to adjust.

“Do you have worldwide HR policies, that is, policies that apply to all employeesregardless of location?”

This is one of the central questions underlying interviews with HRM executives of thetwelve largest German manufacturers, which took place between the summer and fallof 2000. This includes the largest German companies excluding trade, banking andinsurance, as well as energy suppliers according to the Business Week Global 1000,12 July 1999

GLOBAL INTEGRATION :

The same worldwide standards for senior management in evaluation, compensationand development are the milestones en route towards a global human resourcestrategy, which has only caught on in recent years at German companies like BASF,Bayer, DaimlerChrysler, Henkel, Lufthansa, SAP, Schering, Siemens, andVolkswagen.

Henkel sees itself as a leader in human resource policy, both within and beyond itsown areas of business, one which brings about more equality of treatment andfairness, so that qualified executives can commit themselves to the company and

participate in its success.

Deutsche Telekomand Preussag (the former steel manufacturer-turned tourismgiant), who have recently become more international in their orientation, are just nowin the process of preparing themselves for a cross-border, integrated human resourcepolicy. The autonomy of the newly purchased overseas companies has beensubstantial so far. Bertelsmann, where deployment has traditionally been



decentralized, has just begun a more integrated policy for senior management.Lufthansa in the Star Alliance network, too, participated recently for the first time increating a sound foundation for a global executive management scheme.

FOUR ALTERNATIVES FOR A CROSS BORDER STRATEGY

Local Adaptation:

1) International Strategy:

Ø Appropriate when there is little foreign business –

knowledge transfer from the center of headquarters.

Ø Coordination costs are low.

2) Multinational Strategy:

Ø Affiliates are autonomous and local adapted.

Ø Cross-border advantages of standardization andlearning are low.

Ø Coordination-costs are lowest.

Global Integration:

3) Global Strategy:

Ø Advantages of standardization of policies andpractices.

Ø Strong centralism.

Ø Lack of local responsiveness causesdisadvantages.

Ø National segmented markets, cultures, policies setbarriers



Ø Coordination costs are high.

4) Transnational Strategy:

Ø Uses advantages form globalization, localization

and cross-border learning simultaneously.

Ø Coordination costs are highest.(see Bartlett /Ghoshal 1998)

Companies successful across borders with corporate headquarters in Germany havepursued a more globally integrated human resource strategy

CONCLUSION

In recent years, many of the largest German companies have completed the changetowards a transnational strategy for senior management: Worldwide guidelines withenough flexibility to adjust to local situations, a global “as far as possible” with local

responsiveness and interpretation of criteria, as well as a network of systemsdevelopment contributing to global integration (see fig). The drivers of thistransformation are adjusted company strategies and structures, the lack of qualifiedsenior executives for global competition and the fact that managers have staff in manycountries. Additional impetus has come about by a change in the expectations of executive managers and their desire for equality of treatment.

The consequences: changes in the expectations placed on senior management – broader and greater international experience and the dissolution of traditional centersof power, which the headquarters had offered previously.

CASE STUDY: LEADING CHINESE

TELECOM CORPORATION – HUAWEIHuawei was established in 1988 as an IT product trading firm in Shenzhen. Itsinternationalization drove since 2001, now it is serving ¾ of the top 50 IToperators in the world. HW has representation offices in over 100 countries andover 1 billion users. It is now employing over 60,000 employees, 48% of whomworking in R&D.



BUSINESS STRATEGY:

Ø Innovation

Ø High quality

Ø Low cost

Ø Excellent customer service

GLOBALIZATION STRATEGY:

Ø Less developed countries first, then developed countries

Ø Occupy market first (loss-making) then make profit through

maintenance and upgrades

MOTIVES OF OVERSEAS EXPANSION:

Ø Market seeking

Ø Asset seeking

HR STRATEGY:

Ø Deployment of Chinese expatriate to set up operations first

Ø Localization to overcome language and cultural problems, also toshow commitment to local economy and observation to local labour law – deployment of social capital

HW’S GLOBAL HR STRATEGY AND CHALLENGES IN PEOPLE

MANAGEMENT

HR challenges:

The Hr challenges faced by HW include the retention problem due to lower paythan western companies. Another challenge being identified was the lowcompetence of local employees in poor countries (low literacy and projectmanagement skills). There were also cultural differences in work values of other countries. HW faced many cross-cultural issues between Chineseexpatriates & local employees. And there was lack of identification of localemployees with HW‟s corporate culture or HW as their employer.



HW’s adopted HR strategies:

HW promotes local employees to ranks which they will not get in westerncompanies. They introduce local practices to suit local employees (e.g. bank loan guarantee letters). They carry out cross-cultural team building through

social events. They also adopt the strategy of sending key local employees toHW‟s HQ for training and development. HW does the deployment of locals as

deputy managers to look after personnel issues because the locals know thepeople-related issues well. Hw believes in learning by doing in developing HRpractices to suit local needs, e.g. borrow western companies‟ good HR practices. In addition to the practical strategies being adopted by HW, theydeploy emotional intelligence in understanding local employees needs andprovide support as well.

CONCLUSIONS

HW‟s HR strategy is characterised with high-performance work system andpaternalism typical of oriental culture. Creation and mobilization of socialcapital of employees plays an important role in supporting HW‟s global

business strategy. Mobilizing political capital is crucial for Chineseorganizations to develop international markets, esp. in emerging economies

CULTURAL MISALIGNMENT

In many cases cultural misalignments are a byproduct of major organizational changeinitiatives, such as total quality management, employee involvement or reengineering.Each of these initiatives typically requires some cultural adjustment to be effective,even though they all seem to have similar goals, such as treating employees as criticalassets, focusing on customer satisfaction and delegating authority broadly. Even whenthe optimal culture for supporting these initiatives has been identified and agreed to,the difficulties associated with making adjustments to the current culture must still bedealt with.

.

IMPLEMENTING GLOBAL HR

STRATEGIES

"Top-level managers in many of today's leading corporations are losing control of their companies. The problem is not that they have misjudged the demands created by



an increasingly complex environment and an accelerating rate of environmentalchange, nor even that they have failed to develop strategies appropriate to the newchallenges. The problem is that their companies are incapable of carrying out thesophisticated strategies they have developed. Over the past 20 years, strategic thinkinghas far outdistanced organizational capabilities.

“Today, people create national competitiveness, not, as suggested by classical

economic theory, mere access to advantageous factors of production. Yet, humansystems are also one of the major constraints in implementing global strategies. Notsurprisingly therefore, human resource management has become "an important focusof top management attention, particularly in multinational enterprises.

The clear issue is that strategy (the what) is internationalizing faster thanimplementation (the how) and much faster than individual managers and executivesthemselves (the who). "The challenges [therefore] are not the 'whats' of what-to-do,

which are typically well-known. They are the 'hows' of managing human resources ina global firm.

How prepared are executives to manage transnational companies? How capable arefirms' human resource systems of recruiting, developing, retaining, and using globallycompetent managers and executives? A recent survey of major U.S. corporationsfound only six percent reporting foreign assignments to be essential for seniorexecutive careers, with forty-nine percent believing foreign assignments to becompletely immaterial.

Which firms are leading in developing globally competent managers and executives,and which remain in the majority and lag behind? That majority, according to a recentsurvey of 1500 CEOs, will result in a lack of sufficient senior American managersprepared to run transnational businesses, forcing U.S. firms to confront the highestexecutive turn-over in history.

By contrast, it describes the approaches of some of the world's leading firms thatdistinguish them from the majority. There is no question that the world business isgoing global; the question raised in this article is how to create human systemscapable of implementing transnational business strategies. Based on their research, the

authors support the conclusion of the recent 21st Century Report that of executiveswho perceive their international operations as shelves for second-rate managers areunsuited for the CEO Job in the year 2000, or indeed any managerial job today.

CROSS-CULTURAL COMPETENT HR



Ø Transnational managers must learn about many foreign cultures'perspectives, tastes, trends, technologies, and approaches to conductingbusiness.

Ø Unlike their predecessors, they do not focus on becoming an expert on

one particular culture.

Ø Transnational managers must be skillful at working with people frommany cultures simultaneously. They no longer have the luxury of dealingwith each country's issues on a separate, and therefore sequential, basis.

Ø Similar to prior expatriates, transnational managers must be able toadapt to living in other cultures. Yet, unlike their predecessors,transnational managers need cross-cultural skills on a daily basis,throughout their career, not just during foreign assignments, but also on

regular multi country business trips and in daily interaction with foreigncolleagues and clients worldwide.

Ø Transnational managers interact with foreign colleagues as equals,rather than from within clearly defined hierarchies of structural orcultural dominance and subordination. Thus, not only do the variety andfrequency of cross-cultural interaction increase with globalization, butalso the very nature of cross-cultural interaction changes

Review a range of global business strategies along with each strategy's requisite

managerial skills.

EFFECTIVE HR STRATEGIES IN

GLOBALIZATION RECRUITING, DEVELOPING AND RETAINING QUALIFIED MANAGERS

Qualified managers have become a bottleneck factor in international competition.Cross border



and interdisciplinary experience is expected and not always available. In addition,loyalty to the company has depreciated. Headhunters are poaching the best people.How do companies with international experience handle this problem? Corporateitself is addressing the subject, human resource instruments for executives arerealigned creating a winning employee value proposition.

INCORPORATING GLOBAL KNOWLEDGE

Executives should see themselves as drivers of a common corporate culture. Theytravel more, send e-mails around the world, participate in tele-conferencing,familiarize themselves with business magazines and business schools and, in short,

are part of knowledgeable and mobile elite. This is reason enough for former barriersto disappear, allowing questions about comparisons and equity to emerge. The newmedia make the flow of information and communication around the world possible.But how and to what extent this new media can be employed in the development of anintegrated global executive strategy also depends on the individual strategy andcorporate culture. Company networks and very decentralized structures seem tohinder global standardization, whereas a growing international business

Responsibility frees a substantial and powerful drive. Finally, the degree of integrating business areas and the regions will differ.

REALIGNING PERFORMANCE AND COMPENSATION SYSTEMS

An improved integrated human resource management is the answer to changes in thecompany‟s strategies due to increased globalization. The starting point includes basic

values and guidelines being worked out and formulated by international teams and theappropriate tools. The goal is to increase the global standardization of appraisal andcompensation systems for executives and at the same time to incorporate localqualities.



REFERENCES

Ø Adler, Nancy J. 1983. Cross-cultural management research: The ostrich and the trend.Academy of Management Review, 8(2): 226-32.

& Robert Doktor. 1986. From the Atlantic to the Pacific Century: Cross-culturalmanagement reviewed. Journal of Management, 12(2): 295-318.

Ø Aghion, P., & Blanchard, 0. 1996. on insider privatization. European EconomicReview, 40: 759-766.

Ø Edstrom & J.R. Galbraith "Transfer of Managers as a Coordination and ControlStrategy in Multinational Firms." Administrative Science Quarterly, 22, 1977, 248-263

Ø Arnold, D. J. & Quelch, J. A. 1998. New strategies in emerging economies. SloanManagement Review, 40(1): 7-20.

Ø Aulakh, P. S., Kotabe, M., & Teegen, H. 2000. Export strategies and performance of firms from emerging economies: Evidence from Brazil, Chile, Mexico. Academy of

Management Journal 43: 342-361.

Ø Barberis, N., Boycko, M., Shleifer, A., & Tsukanova, N. 1996. How does privatizationwork: Evidence from the Russian shops. Journal of Political Economy, 104: 764-790.

Ø Beamish, Paul & Jiping Zhang. 1991. Hybrid-Skylake case. In Paul Beamish, PeterKilling, Donald Lecraw & H. Crookell, International management: Text and cases, 232-48. Homewood Ill.: Irwin.

Ø Blodgett, Linda Longfellow. 1991. Partner contributions as predictors of equity sharein international joint ventures. Journal of International Business Studies, 22(1): 63-78.

Ø Chan, Wing-tsit. 1986. The individual in Chinese religions. In Charles A. Moore,editor, The Chinese mind. Honolulu, Hawaii: University of Hawaii Press.

Ø Ch'ien, Mu. 1973. On the systems of academic knowledge. In Philip Shen, editor,Higher education and university students, 15-32. Hong Kong: Hong Kong UniversityPress (in Chinese).



Ø Christopher A. Bartlett and Sumantra Ghoshal, "Matrix Management: Not a Structure,a Frame of Mind" Harvard Business Review, July-August 1990, 138.

Ø C.K. Prahalad and Yves Doz. The Multinational Mission: Balancing Local Demandsand Global Vision, (New York: Free Press, 1987

Ø Conner, K. R., & Prahalad, C. K. 1996. A resource-based theory of the firm:Knowledge versus opportunism. Organization Science, 7: 477-501

Ø Dan A. Ondrack, "International Human Resources Management in European and NorthAmerican Firms," Human Resource Management, 25(1). 1985, 121-

Ø Dan A. Ondrack, "International Transfers of Managers in North American andEuropean MNEs," Journal of International Business Studies, 16(3). 1985, 1-19;

Ø Dewar, N., & Frost, T. 1999. Competing with giants: Survival strategies for local

companies in emerging markets. Harvard Business Review, 77(2): 119-129.

Ø Donald C. Hambrick, Lester B. Korn, James W. Frederickson, and Richard M. Ferry,21st Century Report: Reinventing the CEO (New York: Korn/Ferry and ColumbiaUniversity's Graduate School of Business, 1989), 1-94.

Ø Earle, J., & Estrin, S. 1997. After voucher privatization: The structure of corporateownership in Russian manufacturing industry. Center for Economic Policy Research(CEPR) discussion paper no. 1736, London.

Ø E.L. Miller, S. Beechler, B. Bhatt, & R. Nath, "The Relationship Between the Global

Strategic Planning Process and the Human Resource Management Function," HumanResource Planning, 9(1), 1986, 9-

Ø European Bank for Reconstruction and Development (EBRD). 1998. Transition report1998. London: EBRD

Ø Evans, Franklin B. 1963. Selling as a dyadic relationship-A new approach. AmericanBehavioral Scientist, 6(May): 76-9.

Ø Evans, Doz, & Laurent, (1989) op. cit.; Andre Laurent "The Cross-Cultural Puzzle of International Human Resource Management," Human Resource Management, 25(l).

1986. 91-101;

Ø Filatotchev, I., Wright, M., & Bleaney, M. 1999. Privatization, insider control andmanagerial entrenchment in Russia. Economics of Transition, 7: 481- 504

Ø Fisher, B. Aubrey. 1974. Small group decision making: Communication and the groupprocess. New York: McGraw-Hill.



Ø Francis, June N.P. 1991. When in Rome? The effects of cultural adaptation on intercultural business negotiations. Journal of International Business Studies, 22(3): 403-28.

Ø Geringer, J, Michael. 1991. Strategic determinants of partner selection criteria ininternational joint ventures. Journal of International Business Studies, 22(1): 41-62.

& Louis Hebert. 1989. Control and performance of international joint ventures. Journal of International Business Studies, 20(2): 235-54.

Ø Goldenberg, Susan. 1988. Hands across the ocean: Managing joint ventures with aspotlight on China and Japan. Cambridge, Mass.: Harvard University Press.

Ø Graham, John L. 1985. Cross-cultural negotiations: A laboratory experiment.Marketing Science, 4(2): 130-46.

Ø Dong Ki Kim, Chi-Yuan Lin & Michael Robinson. 1988. Buyer-seller negotiations

around the Pacific Rim: Differences in fundamental exchange processes. Journal of Consumer Research, 15(June): 48-54.

Ø Gudykunst, William B., Ge Gao, Karen L. Schmidt, Tsukasa Nishida, Michael H.Bond, Kowk Leung, Georgette Wang & Robert A. Barraclough. 1992. The influence of individualism-collectivism, self-monitoring, and predicted-outcome value. Journal of Cross-cultural Psychology, 23(2), June: 196-213.

Ø Gunnar Hedlund "Who Manages the Global Corporation? Changes in the Nationalityof Presidents of Foreign Subsidiaries of Swedish MNCs During the 1980s," WorkingPaper, (Institute of International Business and the Stockholm School of Economics, May

1990)

Ø Habib, Ghazi M. 1987. Measures of manifest conflict in international joint ventures.Academy of Management Journal, 30(4): 808-16.

Ø Hall, Edward T. 1976. Beyond culture. Garden City, N.Y.: Anchor Press/Doubleday

Ø Hendryx, Steven R. 1986. The China trade: Making the deal work. Harvard BusinessReview, 64(July/August): 75-84.

Ø Hofstede, Geert H. 1980. Culture's consequences. Beverly Hills, Calif.: Sage.

Ø Hoskisson, R. E., & Turk, T. A. 1990. Corporate restructuring: governance and controlin the internal capital market. Academy of Management Review, 15: 455-75.

Ø Hsu, Francis L.K. 1981. Americans and Chinese: Passage to differences. Honolulu:University of Hawaii Press.



Ø International Finance Corporation (IFC). 1999. Database available fromhttp://www.ifc.org/EMDB/SLIDES/ imgOO9.gif

Ø Jensen, M. 1993. The modern industrial revolution: Exit, and the failure of internalcontrol systems. Journal of Finance, 48: 831-80.

Ø Jensen, M., & Meckling, W. 1976. The theory of the firm: managerial behavior,agency costs and ownership structure. Journal of Financial Economics, 3: 305-60.

Ø Khanna, T., & Palepu, K. 1997. Why focused strategies may be wrong for emergingmarkets. Harvard Business Review, 75(4): 3-10.

Ø Khanna, T., & Palepu, K. 1999. The right way to restructure conglomerates inemerging markets. Harvard Business Review, 77(4): 125-134.

Ø Khanna, T., & Palepu, K. 2000. The future of business groups in emerging economies:

Long-run evidence from Chile. Academy of Management Journal, 43: 268-285.

Ø Lane, Henry W. & Paul Beamish. 1990. Cross-cultural cooperative behavior in jointventures in LDCs. Management International Review, 30(Special Issue): 87-102.

Ø Li, Victor. 1979. Human rights in a Chinese context. In Ross Terrill, editor, The Chinadifference. New York: Harper & Row.

Ø Lyles, Marjorie A. 1987. Common mistakes of joint venture experienced firms.Columbia Journal of World Business, 22(2): 79-85.

Ø Castells, M. (1997) The Power of Identity, vol. II of The Information Age: Economy,Society

and Culture. Oxford: Blackwell

Ø Martin K. Welge, Dirk Holtbrügge: Internationales Management,Landsberg/Lech 1998.

Ø Michael E. Porter, The Competitive Advantage of Nations (New York: The Free Press,

1990)

Ø Moore, Charles A. 1967. The Chinese mind. Honolulu: University of Hawaii Press.

Ø Nancy J. Adler and Susan Bartholomew "Globalization and Human ResourceManagement" in Research in Global Strategic Management: Corporate Responses toGlobal Change, Alan M. Rugman and Alain Verbeke (eds.), Vol. 3, (Greenwich, Conn.:JAI Press, 1992)



Ø Nancy J. Adler and Fariborz Ghadar "International Strategy from the Perspective of People and Culture: The North American Context," in Alan M. Rugman (ed.), Researchin Global Strategic Management: International Business Research for the Twenty-FirstCentury; Canada's New Research Agenda, Vol. 1, (Greenwich, Conn.: JAI Press, 1990)179-205; and "Strategic Human Resource Management: A Global Perspective," in

Rudiger Pieper (ed.), Human Resource Management in International Comparison (Berlin.de Gruyter, 1990), 235-260.

Ø Paul A. Evans, Yves Doz, and Andre Laurent, Human Resource Management inInternational Firms (London: Macmillan Press, 1989), xi-l .

Ø Peter J. Dowling, Denice. E. Welch, Randall S. Schuler: International HumanResource

Management, 3rd edition, Cincinnati, Ohio. 1999.

Ø Rondinelli, D. 1998. Institutions and market development: Capacity building foreconomic and social transition. IPPRED working paper no. 14, Enterprise andCooperative Development Department, International Labor Organization, Geneva

Ø Rosalie Tung, The New Expatriates: Managing Human Resources Abroad (New York:Harper & Row 1988). and "Strategic Management of Human Resources in MultinationalEnterprises," Human Resource Management, 23(2), 1984, 129-143;

Ø Rubin, Jeffrey Z. & Bert R. Brown. 1975. The social psychology of bargaining and

negotiation. New York: Academic Press.

Ø Shenkar, Oded & Yoram Zeira. 1987. Human resources management in international joint ventures: Directions for research. Academy of Management Review, 12(3): 546-57.. 1990. International joint ventures: a tough test for HR. Personnel, 67(1): 26-3 1.

Ø Shepard, B. and Hayduk, R. (eds) (2002) From ACT UP to the WTO: Urban

Protest and

Community Building in the Era of Globalization. London: Verso

Ø Shleifer, A., & Vishny, R. 1997. A survey of corporate governance. Journal of Finance,52: 737-783.

Ø Stross, Randall E. 1990. Bulls in the China shop, and other Sino-American businessencounters. New York: Pantheon Books.



Ø Ting-Toomey, Stella. 1988. Intercultural conflict styles: A face-negotiation theory. InY. Kim & W. Gudykunst, editors, Theories in intercultural contiitlunuication,21 3-35.Newbury Park, Calif.: Sage.

Ø Thompson, S., & Wright, M. 1995. Corporate governance: The role of restructuringtransactions. Economic Journal, 105: 690-703.

Ø Tse, David K., Katn-hon Lee, Ilan Vertinsky & Donald A. Wehrung. 1988. Doesculture matter? A cross-cultural study of executives' choice, decisiveness, and risk adjustment in international marketing. Journal of Marketing, 52(October): 81-95.

Ø Tung, Rosalie I. 1981. Patterns of motivation in Chinese industrial enterprises.Academy of Management Review, 6(3): 481-89. . 1984. How to negotiate with theJapanese. California Management Review, (26): 62-77. Wall, James A., Jr, & Michael W.

Blurn. 1991. Negotiations. Journal of Management, 17(2): 273-303.

Ø Unilever's "Best Proven Practice" technique was cited by Philip M. Rosenzweig andJitendra Singh, "Organizational Environments and the Multinational Enterprise,"Academy of Management Review, 16(2), 1991, 354. based on an interview thatRosenzweig conducted with Unilever.

Ø Vladimir Pucik. "The International Management of Human Resources." in C.J.Fombrun, N.M. Tichy, & M.A. Devanna (eds.), Strategic Human Resource Management(New York: Wiley, 1984

REPORT

ON



CULTURALLY COMPATIBLE

HUMAN RESOURCE (HR) STRATEGIES

“We believe growth comes from truly understanding the needs of people to drive

relevant change”

COMPANY PROFILE

Telenor Group

Telenor ASA is an international provider of high quality telecommunications, data

and media communication services. It ranks as world‟s 7th largest mobile operatorwith a total of 164 million subscribers in its mobile operations.

Telenor Pakistan

Telenor Pakistan is 100% owned by Telenor ASA and adds on to its operations inAsia together with Thailand, Malaysia and Bangladesh.

Telenor Pakistan launched its operations in March 2005 as the single largest directEuropean investment in Pakistan, setting precedence for further foreign investments in

the telecom sector. The company has crossed many milestones and grown in a numberof directions, making Telenor Pakistan a leading telecom operator of the country.

Telenor is the fastest growing mobile network in the country, with coverage reachingdeep into many of the remotest areas of Pakistan. In the most difficult terrains of thecountry, from the hilly northern areas to the sprawling deserts in the south, at timesTelenor is the only operator connecting the previously unconnected.



It is keeping ahead by investing heavily in infrastructure expansion. With USD2billion already invested, it has extended agreements with its vendors for network expansion and services until 2009. The agreements, with a potential to result inUSD750 million worth of orders from Telenor Pakistan, are some of the biggest of their kind in the industry.

Telenor is spread across Pakistan, creating 2,500 direct and 25,000-plus indirectemployment opportunities. It has a network of 23 company-owned sales and servicecenters, more than 200 franchisees and some 100,000 retail outlets.

VISION OF TELENOR

Telenor‟s vision is simple: “We're here to help”

It exists to help its customers get the full benefit of communications services in theirdaily lives.

CORE VALUES OF TELENOR

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' liveseasier.

Keep Promises Everything we set out to do should work, or if it doesn't, we're here to help. We're

about delivery, not over promising, actions not words.

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

produce should look good, modern and fresh. We are passionate about our business

and customers.

Be Respectful We acknowledge and respect local cultures. We do not impose one formula

worldwide. We want to be a part of local communities wherever we operate. Webelieve loyalty has to be earned.



STRUCTURE OF THE ORGANIZATION

In TELENOR the hierarchy is very lean, in general the whole setup is centralized, allthe matters are to be reported to the main company and all the policies and targets areapproved at the higher level. But at the department level the structure is decentralized.

► TELENOR has following functional departments:-

§ Technical

§ Customer operations

§ Finance

§ Administration & Procurement

§ Human Resource

§ Co-ordination (Govt. relations)

§ Marketing

►Current CEO (Chief Executive Officer) of TELENOR is John Eddy Abdullah

HUMAN RESOURCE DEPARTMENT

HR department of Telenor is in Islamabad head office where it controls and handlesall the HR activities of Telenor.

VICE PRESIDENT

MANAGER

DIRECTOR

EXECUTIVE

ASSISTANT MANAGER

INTERNEES

►Human Resource department‟s

hierarchy is as follows:-



►Current VC (Vice President)

HUMAN RESOURCE of TELENOR

is Ms. Nayab Baig

GLOBAL PRESENCE

Europe

Norway

Telenor‟s wholly owned Norwegian mobile operation is the country‟s leading

telecommunications operator

· Services: Broadband, Mobile, Telephone, TV

· Companies: Telenor Norway, Canal Digital, Conax, Norkring, TelenorSatellite Broadcasting

Denmark

Sonofon is the second largest mobile operator in Denmark

· Services: Broadband, Mobile, TV

· Companies: Sonofon, Cybercity, CBB, Canal Digital

Sweden

Telenor is the third largest mobile operator in Sweden

· Services: Broadband, Mobile, Telephone, TV

http://www.telenor.com/en/global-presence/norway/


http://www.telenor.com/en/global-presence/denmark/


http://www.telenor.com/en/global-presence/sweden/







· Companies: Telenor Sweden, Bredbandsbolaget, Glocalnet, CanalDigital

Finland

Canal Digital is Finland‟s leading television distributor

· Services: Broadband, TV

· Companies: Canal Digital

Hungary

Pannon is the second largest mobile operator in Hungary

· Services: Broadband, Mobile

· Companies: Pannon

Montenegro

Promonte has more than 450 000 mobile subscriptions in Montenegro

· Services: Mobile

· Companies: Promonte

Serbia

Telenor is the second largest mobile operator in Serbia

· Services: Broadband, Mobile

· Companies: Telenor Serbia

Ukraine

Kyivstar is the largest mobile operator in Ukraine

· Services: Mobile

· Companies: Kyivstar

http://www.telenor.com/en/global-presence/finland/


http://www.telenor.com/en/global-presence/hungary/


http://www.telenor.com/en/global-presence/montenegro/


http://www.telenor.com/en/global-presence/serbia/


http://www.telenor.com/en/global-presence/ukraine/









Russia

VimpelCom is the second largest mobile operator in Russia

· Services: Mobile

· Companies: VimpelCom

Asia

Pakistan

Telenor is the second largest mobile operator in Pakistan

· Services: Mobile

· Companies: Telenor Pakistan

Bangladesh

Grameenphone is the largest mobile provider in Bangladesh

· Services: Mobile

· Companies: Grameenphone

Thailand

dtac is the second largest mobile operator in Thailand

· Services: Mobile

· Companies: dtac

Malaysia

DiGi is the fastest growing mobile operator in Malaysia

· Services: Mobile

· Companies: DiGi

CULTURAL COMPATIBILITY AROUND THE GLOBE IN TELENOR

http://www.telenor.com/en/global-presence/russia/


http://www.telenor.com/en/global-presence/pakistan/


http://www.telenor.com/en/global-presence/bangladesh/


http://www.telenor.com/en/global-presence/thailand/


http://www.telenor.com/en/global-presence/malaysia/









The best way to see the cultural differences depicting in the work, performance,perceptions, attitudes, behaviors and even statements of HR of different nations, is to

observe the views given by themselves in their interviews. Following is such aninterview that was taken by two employees of Telenor relating to two different

cultures and two different nations.

· Name: Lawrence Ooi

· Position: Head of Sales, Central Region

· Company: DiGi

· Location: Kuala Lumpur, Malaysia

Q: Describe briefly a typical day at your work

I am responsible for the sales in the central region of Malaysia, which is the area around KualaLumpur. This region accounts for 50 percent of the total sales in Malaysia. There areapproximately 6000 dealers nationwide. I need to make sure that all our 3000 dealers haveenough supplies, that we reach our sales targets and that our brand has a prominent position inthe sales outlets. I have weekly meetings with my sales staff to maintain the overview and keepmyself updated on new telecom product launches and promotion efforts. I also am requiredtravel to the other regions to get new impulses and see what our competitors are doing.

Q: Why did you join the Telenor Group?

Before, I worked for a telecom company that had a really strict hierarchy and too many rules and

regulations for my taste. So I wanted to find a new job in the telecom industry. I had heard a lotof positive things about Telenor, so when my current position became available – I applied andgot the job

Q: What are the best parts of your work?

It is fruitful to work with many skilled people and help them to reach their goals. In addition,when good ideas are developed into strategies, it is very interesting and challenging to execute it



and see how it progresses. Moreover, there are no barriers in DiGi as you get to voice out youropinions and all suggestions are taken into account before plans are being formulated

Q: How would you describe Telenor’s work environment?

It is a great atmosphere here, and our facilities are open and modern. We are given the flexibilityto work where we like, and manage our own time

Q: If you should choose one word to describe Telenor, what would it be?

Dynamic! This is a very dynamic company. We find solutions quickly to problems that arise.Unlike other companies in which policies are set, plans are derived and execution is expected. InTelenor, we get to set our own strategies.

Q: Can you describe a special event that you especially enjoyed?

We had a prepaid registration drive last 2 years and my team had to patrol all dealers outlet inCentral region at the last minute before midnight to ensure we registered as many subs aspossible. The next morning, had a breakfast meeting with Johan (CEO) and committee for anupdate session and planned on further action to execute. It was a truly remarkable experience as Igot to work with people of all levels to complete a simple yet important task

Q: Describe your career in Telenor so far

This is my first position in Telenor, which I have had for three and a half years now. Time passesreally fast, and I feel that my career is developing rapidly, especially due to the severaldevelopment programs I get access to through Telenor. I find that the financial workshops and

leadership sessions I have attended enables me to perform better in my job.

Q: What are your professional goals?

I like the responsibility and the challenges being a manager, so I would like to develop myself further as a leader and take on bigger tasks in the future

Q: What do you enjoy doing in your spare time?

I like to spend time with my wife and children. We often go on longer trips in the weekends togo shopping, try new food and relax on the beach. Penang Island is one of our favorite locations.

My hobby is to collect recyclable paper bags from grocery stores. The diversity fascinates me.They come in all shapes and colors. I have several hundreds paper bag at home, from all over theworld. My wife is not too happy about that, though…

· Name: Miljana Kijanovic

· Position: Internal Communication Manager



· Company: Telenor Group Headquarters and Telenor Serbia

· Location: Oslo, Norway

Q: Briefly describe your job at Telenor

I work with internal communication – in short, that means I am part of the team that providesemployees with the information they need in their daily work as well as news about thecompany. Currently, I am part of the editorial team in the Group Communications department inNorway. Previously I worked as head of the internal communications staff in Serbia. GroupCommunications at Telenor ASA felt that it would be useful to get different views on internalcommunication based on my experience of working for a Telenor operating company in anothercountry. So, here I am in Norway. This is an exciting opportunity for me and the recognition isimportant. At the same time, I am pleased to see that people in Telenor are aware of the

differences that exist across a big international company and are ready to listen and learn more.

The job I have now does not differ much from the one I had before. Just as in Serbia, we start theday summing up recent events and news stories. Then, we plan forthcoming activities. I stillwrite articles and stories for our intranet portal, which is something I enjoy doing. Besides that, Iam involved in the development of the new intranet, which will be used by tens of thousands of employees worldwide. Being even a small piece of the puzzle in a complex project like that isexciting.

Q: Why did you join Telenor?

I used to work for Mobtel, the Serbian telecommunications provider acquired by Telenor in2006. It was a change for me suddenly to be a part of an international telecommunications group.The way we do business now is quite unlike my previous experience. But it has certainlychanged for the better. We were used to a strict – well, old-fashioned hierarchy. That is not whatit is like at Telenor. It does not matter whether you are a manager or not - everyone sits side byside in the office. That is quite unusual for Serbian companies.

Q: What has your career at Telenor been like so far?

I have been in the telecommunications sector for over 10 years now, and tried several interesting jobs. My first position with Telenor was also my first role as a manager and an important

opportunity for me. The job I was doing there brought me to Norway, where I now have thechance to continue working within my profession and at the same time learn how things look andwork from a different perspective.

Q: What do you enjoy most about your work?



Internal communications is a new profession in Serbia, so I was fortunate to have the opportunityto be one of the pioneers and set the standards. During a recent Public Relations conference inBelgrade, I held a presentation in front of a wide audience about internal communications

Q: How would you describe the work environment at Telenor?

When I started to work with Telenor in Serbia, we had just moved into a new building, located inthe new part of Belgrade. Our Belgrade offices have a cool, modern design. Everyone enjoyedthe benefits that make it an attractive place to work, such as free refreshments and massagechairs. Now, I know the concept is the same here, in Norway. The Telenor headquarters – justoutside Oslo - at Fornebu, has an incredible position just by the sea. The view over the fjord isdifferent from the grey urban landscapes I was used to. I also admire the Telenor art collection,both here and in Belgrade.

Colleagues are the most important part of any work environment. I miss my colleagues in Serbia,our discussions about work, but also the time we spent together out of the office. Still, I am

forming new friendships and getting to know new people in Norway. Although there is a similarwork culture across Telenor, there are differences in our native cultures that make workingtogether interesting, sometimes challenging, but certainly enriching for all of us. Working andliving in another country and a new environment, enables me to develop not only professionally,but also as a person.

Q: If you had to choose one word to describe Telenor, what would it be?

Actually, I would choose two important words: freedom and responsibility. At Telenor, you aregiven the necessary tools to do your job, but you are not told how to perform your tasks. Forinstance I have flexible working hours, and can take my laptop down to the lake during the

summer to enjoy the sun while I am working. We have a lot of freedom - as long as you producethe results. I really value this freedom.

Q: Can you describe a special event at work that you particularly enjoyed?

I was part of the committee responsible for planning and organizing our one-year anniversary inSerbia in 2007. It was a big event with activities for both employees with families, as well asexternal partners and others interested in celebrating this milestone. We had an outdoor partywith a live DJ, puppet theatre for the children, sports activities, and a lot more. It was a greatsuccess! Everyone loved it.

Q: What are your professional goals?

I want to develop my career with Telenor further, and strengthen my internal communicationsand branding competence. I was tempted to explore international opportunities and I still am. Itreally exposes you to new ideas and viewpoints and helps to open your mind to new ways of doing things

Q: What do you enjoy doing in your spare time?



I like to be active and I enjoy sports. Rollerblading and skiing are my favourites, so I really look forward to the skiing season in Norway. I also love the gym and I often go to the one at Fornebu – as an employee here I have almost free access. The gym is located at the offices, which is veryconvenient.

OBSERVED DIFFERENCES

The difference in the statements of the two is quite obvious; one is a woman other is a

man. Another difference is that they work in two different cultures of nations. It is a

fact that cultural differences make difference to the HR practices. It isn’t necessary

that what is valuable to one culture man is al so valuable to other culture’s man.

Ø It is observable that the lady is answering to all the questions very descriptively

while the man is answering precisely and to the point

Ø Both of them switched to Telenor from another telecom company. The ladyswitched it because she wanted to work in an internationally recognized companywhile our Malaysian friend didn‟t like the strict environment of former company.

Ø The lady got promoted due to her learning and the man got promoted throughworkshops.

Ø The lady has the professional goal to work internationally while the man wants tomove vertically upward to managerial posts.

Ø The typical European lady is very sporty while the man is truly Asian and want tospend spare time with his family

Ø The lady loves recreational activities at work while the man enjoys work relatedactivities.

OBSERVED SIMILARITIES

In short the cultural differences are quite obvious through their priorities, likings and

dislikings. However the company based ideas are completely same like

Ø Both joined Telenor impressed with its freedom of expression

Ø Both are provided the career opportunities



Ø Both are given the environment compatible to their cultures so that they may notfeel the odds.

Ø Both have described their company Telenor in the same sense of goodness.

Ø Both have described their work environment as free, respect giving as well asresponsible.

These similarities are the result of Telenor’s culturally compatible environment being provided to its human resource.

HUMAN RESOURCE STRATEGIES

We discuss Telenor‟s strategies which make it culturally compatible to the human

resource of different countries where so ever it has set up its operations. Following are

these strategies:

RECRUITMENT:

Ø Telenor claims “ FREEDOM OF EXPRESSION”

Ø The hiring criterion in Telenor is same throughout the globe. However due tochanges in the skills, knowledge and abilities of people in different countries , Telenorhas varying staff hiring priorities eg here in Pakistan university education is quitecommon and cheaper as compared to western countries. Pakistan has a pool of

graduates and post-graduates, so obviously more educated and skilled person is hiredwhereas in western set ups Telenor has mostly graduates in job positions.

Ø Telenor hires young and talented people more as compared to experienced elderlyin Asian countries. It is due to the fact that the creativity and freshness required byservice sector like Telenor is found in only young talents in Asia. The middle agedpeople in Asian countries are less enthusiastic and fresh. However people in westerncountries remain enthusiastic and fresh for a relatively longer period of time. 80% of Telenor‟s staff is young blood.

GENERAL SET-UP

Ø There is a lot of respect given to all employees. Here the manager shakes hand withthe mop. All the employees self-serve themselves. They are not allowed to make theservice men work in their service



Ø There are no cabins in any Telenor centre. There is a central lobby where the frontdesk men to the Regional Officer (RO) all sit together.

Ø As a cultural symbol Pakistani Telenor offices have placed a big bell with a stringon the main door of offices. It is for the purpose that any one who feels himself

satisfied with Telenor can ring the bell. It is in coincidence with the practice of LateMughal King Jahangir who used to listen to the petitions of his sub ordinates whoeverhas any complaint.

TRAINING

Ø Training system is much vibrant in European Telenor set-ups. But owing to thelesser revenues generated in Asian markets, Telenor is not carrying out best traininghere. Training is always ignored in Pakistan by all. However Telenor keeps onconducting one day training for its employees throughout their work life.

JOB DUTIES

Ø Telenor is carrying out equal and uniform strategies everywhere. Its job duties andtheir requirements are same. It offers flexible work hours to all employees in itscustomer‟s service call centers. There is no discrimination on gender base in Telenor.

Ø The reward system is same everywhere. Everyone is rewarded on goodperformance in monetary units as well as recognition and applaud.

Ø All employees working in Telenor along with their family members are medicallyinsured. They can get up to 10 lakhs on medical treatment. Owing to the more healthproblems among aged in Asian countries, Telenor prefers to retain young and healthyemployees. In western countries mostly young people are medically tested formaladies.

Ø There are no pension plans in Telenor. There are provident funds provided inTelenor.

CULTURAL COMPATIBILITY

Ø Telenor do value the culture of its transnational bases eg in Pakistan Telenor has thepolicy to send its 2 employees on Hajj every year

Ø Telenor arranges aftar for its staff in Ramzan.



Ø In the last annual meeting of Telenor, They have decided sherwani as the dress codein Pakistan.

Ø Even in inter-province culture differences, the example of Quetta is interestingwhere employees aren‟t asked to wear suits. They wear shalwar kameez

CONFLICT RESOLUTION

Ø Referring to the Denmark issue created in Pakistan against Telenor, its HR had noimpact due to this controversy. Not a single employee felt against Telenor. It was agreat achievement of Telenor that it got in the shape of loyalty and concern of its HRtowards Telenor.

CHALLENGES

Telenor face many challenges with the ever growing need of competent HumanResource. It is really hard to hire and retain the best people especially around the

globe. The global companies face many challenges regarding the cultural identity of respective nations. They have to adjust culturally to the environment of respective

countries. And when even hiring the HR staff of that very country, the organization isexposed to many challenges to make them perform at their best.

CONCLUSION

By keenly analyzing the Human resource Management of Telenor, we the groupmembers agree that Telenor is carrying out satisfactory culturally compatiblestrategies for its HR. Although it is not promoting the “cultural identity” agenda thataggressively but even then it is facing much less cultural conflicts among its HR. Itmay be due to the reason that it has divided itself in just two markets: Europe & Asia.

The European market almost holds the same culture and three of its Asian marketcountries are Islamic. We came through very unusual facts about managing anycompany‟s HR. We believe that managing a competitive and culturally compatible

HR in a competitive global market is a tough job. And Telenor is so far quitesuccessful in hiring and retaining exceptionally talented HR worldwide.



COMMENTS

As students of human resource management, among other things, we believe that theglobalization and the advancement of technology influences how organizations shouldreact and adjust to the changing times and economy. Every company will have to find

its own route – and this will depend on the situation and will be different for executivemanagement and specialized staff. The decisive turnaround within today‟s human

resource policy appears to be in the replacement of both local autonomy and the homecountry preference. We will not seek to deny the obvious power of globalizedcapitalism to distribute and promote its cultural goods in every corner. Nor will wetake up the argument now very commonly made by critics of the cultural imperialismthesis that a deeper cultural impact cannot be easily inferred from the presence of suchgoods. What we will try to comment is something more specific: that cultural identity,properly understood, is much more the product of globalization than its victim.

RECOMMENDATIONS

We as students of HRM can just recommend global companies (in this case Telenoralso) within the sphere of our knowledge, exposure and literature survey. WErecommend that:-

Ø A worldwide audit of IHR (International Human Resource) programs and plansshould be conducted at least every three years as a matter of course. While guidelinesand an approval process help management navigate through obvious change, subtlechanges within the company, local market practice, legislation, and employeedemographics can erode programs‟ effectiveness over time. Multinational pools are

particularly subject to degrading without continuous corporate sponsorship and shouldalso be re-evaluated periodically.

Ø Each organization must decide whether it has the right people in the right places tomake the changes, whether these people have been adequately trained, given the

necessary resources and focused on the right objectives, and whether they believe theywill be rewarded for their contributions. HR strategy must be consistent with theneeds of the organization, and its component strategies must provide alignment withthe organization's objectives.

Ø Human resource strategies can be powerful tools for signaling cultural change andreinforcing those changes once they are made. Who is hired and retained, how people



are paid, and what behaviors are deemed desirable all send strong messages about thedesired culture. The potential of HR strategies and programs for shapingorganizational culture cannot be overestimated. For HR strategy to realize its fullpotential, the organization must first determine what its culture is and what it shouldbe. Then the organization can create a plan for aligning culture with its mission and

environmental or contextual realities by managing the culture from what it is to whatit should be.

We wish a very best of luck to TELENOR. May it progress and achieve its desiredgoals. (AMEEN)

OUR VISIT

ISLAMABAD HEAD OFFICE TELENOR

WE THE GROUP MEMBERS IN TELENOR OFFICE MULTAN

HRM Project Telenor

Documents

Transcript of HRM Project Telenor