IFRAH WAJID

MBE-11-16

Group Members
Jawad Mustafa Sajjad Ali Khan Ameer Wajid Khan Saira Iqbal Azeem Hussain Adnan Danish Qamar Ahsan Haider Anam Saleem Usman Khan Umair Saleem

We Are Covering TELENOR

Table of contents
Introduction of telenor Overview of compensation & benefits Role of Telenor one incentive & bonus plans Wages & salary curves Ranking System Pay system Scanlon Type plan Employee Benefit Insurance & other benefits Issues and Challenges Conclusion

Board of Directors
The Board is responsible for the management of the Telenor Group and the proper organization of its operations.

Svein Aaser
Chairman

Liselott Kilaas
Deputy Chairman

Appointed: 16 May 2012

Appointed: 8 May 2003

Hallvard Bakke
Board member

Burckhard Bergmann
Board member

Appointed: 29 May 2008

Appointed: 19 May 2011

Sally Davis
Board member

Frank Dangeard
Board member

Appointed: 19 May 2011

Appointed: 23 November 2011

Telenor Group is the telecommunications company in Norway, with headquarters located at Fornebu. Today, Telenor Group is mostly an international wireless carrier with operations in Scandinavia, Eastern Europe and Asia, working predominantly under the Telenor brand

At the end of 2010, its 203 million subscribers made it one of the largest mobile phone operators in the world. In addition, it has extensive broadband and TV distribution operations in four Nordic Countries, and a 10-year-old research and business line for Machine-to-Machine technology.

Telenor currently giving its services in

Pakistan,India,Sweden, Malaysia,Hungary,Serbia, Thailand,Russia

Telenor Pakistan is 100% owned by the Telenor Group, an international provider of high quality voice, data, content and communication services in 11 markets across Europe and Asia. Telenor Group is among the largest mobile operators in the world with 140 million mobile subscriptions (Q4 2011) and a workforce of approximately 30,000.

INVESTMENT & SALES

Telenor Pakistan is the country's single largest European foreign direct investor, with investments in excess of US$2 billion. It acquired a GSM license in 2004 and began commercial operations on March 15, 2005. At the end of December 2011 it had a reported subscriber base of 28.11 million, and a market share of 24% making it the country's second largest mobile operator.

CURRENT PROJECTS IN PAKISTAN

Djuice Talkshawk Easy paisa Persona

Contribution in Pakistans economy

The company continues to contribute to Pakistan's economy. It has created 3,000 direct and 25,000 plus indirect jobs and has a network of over 180,000 retailers, franchises and sales & service centers, thus providing a means to livelihood to thousands

Growing Responsibly
Telenor Pakistan crosses the 25 million subscriber mark Djuice launches Khamoshi Ka Boycott Karo Mumkin projects launched Celebrates 6th birthday Telenor Pakistan crosses the 26 million subscriber mark

Growing Responsibly
Karo Mumkin receives Best Branded Programming Project in the Asia-Pacific region award in the Asia Pacific Content Awards TeleKaro Mumkin campaign wins award in Public Service, Govt. & CSR Karo Mumkin campaign wins award in Public Service, Govt. & CSR category at the Pakistan Advertisers Society awards in Karachi

Growing Responsibly
Easypaisa wins Shaukat Khanum Social Responsibility Award Djuice launches youth anthem Kya Darta Hai Telenor Pakistan wins Prime Minister of Pakistan Trophy 2011

Industry
Founded Headquarters Key people Products Revenue Operating income Profit Total assets Total equity Employees Website

Telecommunications
1855 Fornebu, Norway

Jon Fredrik Baksaas (President and CEO), Svein Aaser (Chairman)

Fixed line and mobile telephony, internet, digital television, IT services, IPTV NOK 94.84 billion (2010) NOK 12.50 billion (2010) NOK 14.33 billion (2010) NOK 172.73 billion (end 2010) NOK 96.22 billion (end 2010) 33,220 (end 2010) www.telenor.com

Jawad Mustafa MBE-1045

REWARDS
Reward that result from employment with the organisation,includes all type of reward ,both intrinsic and extrinsic

Types of reward
Intrinsic rewards

Extrinsic reward

INTRINSIC REWARDS
Rewards internal to the individual and normally derived from involvement in certain activities or tasks Achievement Feeling of accomplishment Status Personal growth Job satisfaction

EXTRINSIC REWARD
Rewards that are controlled and distributed directly by the organization and are of a tangible nature Formal recognition Pay Promotion Social relationship compensation

COMPEMSATION
All the extrinsic reward that employees receive in exchange for their work, composed of the base wage or salary, any incentives or bonuses and any benefits All form of pay or rewards going to employees and arising from there employment

COMPONENTS
DIRECT REWARDS

INDIRECT REWARDS

DIRECT REWARDS
Direct rewards are basically direct financial payments Wages Salaries Incentives Commission Bonuses

IN DIRECT REWARDS
Indirect rewards are basically indirect financially payments that is benefits It divides into five components Legally required benefits Retirement related Insurance related Payment for time not work miscellaneous

LEGALLY REQUIRED
Social security Un employment insurance State disability Worker compensation

RETIREMENT RELATED
Pension funds Annuity plans Early retirement Disability retirement

INSURANCE RELATED
Medical insurance Accident insurance Life insurance Disability insurance

PAYMENT FOR TIME NOT WORKED

Vacation Holidays Sick leave Travel time

miscellaneous
Company discount Legal services Credit union Company car

COPENSATION AND BENIFITS

ADVANTGES
The compensation and benefits have following advantages Job satisfaction Motivation Peace of mind increase self confidence High performance To retain and attract high quality employees

Sajjad Ali Khan MBE-11-59

Government & Union Influence

Fair Pay System In Telenor

Pay equity
Internal Equity External Equity Individual Equity Organizational Equity

Ameer Wajid Khan MBE-11-08

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 What are Incentive ,Bonus & Reward? Why Use Incentive & Bonus? Do Incentive & Bonus Work? Incentive, Bonus & Reward Systems of Telenor
Individual incentive & Bonus Plan Group incentive & Bonus plan Organizational incentive & Bonus plan Special incentive & Bonus plan

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 Something additional in monetary term based on

Performance(Specially above an established standard) Related with employees' salary Tailored with a mathematical logic

Incentive pay is also called:

Pay for performance Performance-based pay systems Performance-based reward systems
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Something additional in term of

Monetary Non-monetary Lump sum (basis one year)

Depends upon organizations profitability

Reward?
Monetary Non-monetary Certificate just a pat on the back to say "great job."

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This way, when employees work toward their own goals, they are also working toward the organizations goals

Telenor uses to align the goals of each employee with the goals of the organization
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 Expectancy theory gives us the answer: Yes, incentive pay will motivate employees to improve their job performance, but only if 3 conditions are simultaneously satisfied:

High valence: employees must believe that the amount of the reward (incentive pay) is large enough to be valued High instrumentality: employees must believe that there is a strong link between their job performance and their rewards High expectancy: employees must believe that there is a strong link between their effort and their job performance

Effort Performance Rewards

43 43

 If incentive pay works to enhance employee motivation, then the advantages include:

Increased employee productivity & job performance Increased retention of high performers Because high performers get more pay than low performers Increased ability of the organization to achieve its objectives
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 Individual incentive plan Group incentive plan Organizational incentive plan Special incentive plan

45

Saira Iqbal MBE-11-34

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Bonus of one month cell charges Handset allowance Leaves in Cash Vacations Overtime payments Commission Profit Sharing Gain Sharing
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 Cash Rewards are also given to employees on the basis of individual performance In the group besides of group incentive for the purpose to make diffenrciation between the higher performer and low performer These cash bonuses are given when groups rewards are also granted

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Permanent employees postpaid connection(Executive) prepaid Allowance( Non-managerial)

Contractual employees Prepaid Allowance(less than permanent)

Handset Allowance
After 2 years according to designation

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Length Of Service

Weeks per year (Full-time employ)

Hours /Week 40 hours/week

Less than 4 years

3.5 weeks

141.44 hours

4 up to 12 years 12 years to over

4.7
5.7

187.20
226.72

Parental Leave
3 month pregnancy leave 7 days parental leave for gents
50

Length of Service Less than 12 years 12 years & above

Vacation Earned 20 days 25 days

Official working hours= 8 Overtime payment = 400/hours

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Anam saleem
MBE-11-29

 Sales commissions: salespersons above pay is a percentage of his or her sales

Base pay plus commission
Example:
Market pay = $50,000 Sales target = $1,000,000 Commission rate = 50,000/1,000,000 = 0.05 = 5.0% Sells $900,000 Pay = $45,000 (below market) Sells $1,000,000 Pay = $50,000 (market) Sells $1,000,000 Pay = $55,000 (above market)

53

 Some of the companys profits are shared with the employees

Purpose: alignment of employees goals with companys goals
Strengthens the employees stake in the companys profitability

Example:
Company establishes a minimum profit level as a goal If actual profits exceed the goal, a percentage of the excess is divided up among the employees

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 when employees make a suggestion that improves the organization, a percentage of the organizations gain from the suggestion is shared with the employees who made the suggestion
Example:
Employees make suggestions Management reviews the submitted suggestions, determines the improvement (gain) from each suggestion, and decides which suggestions to implement A percentage of the gain from a suggestion is shared with the employees who made the suggestion

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Group Incentive
Incentives based on group rather than individual performance.

Group Incentives and Bonus

Project Reward Group Reward Group Trip Group Annual Bonus Remote Annual Bonus Special Group Meal

Organizational Incentives
Incentives that reward all members of the organization based on the performance of the entire organization.

Organizational Incentives and Bonus

Bonus Payments Cash Bonus Annual Cash Bonus

Special Incentives
Golden Hellow Golden Handcuff

Azeem Hussain MBE-11-43

WAGE & SALARY CURVES Pay Range Pay Grade

Example of Pay Grades and Pay Ranges

Individual Pay
Rates Out of Range
Red-Circled Employees
An incumbent (current jobholder) who is paid above the range set for the job.

Green-Circled Employees
An incumbent who is paid below the range set for the job

Pay Structure

Pay grades Pay ranges

Pay Ranges
Broadbanding
The practice of using fewer pay grades having broader pay ranges that in traditional systems.

Types of Base Pay Systems

Job-based
Pay the job (not the person) Market-based (external equity focus)

Skills / knowledge-based
Pay the person (not the job)

Ranking System
Job A - President Job B Vice President Job C1 Treasurer/CFO Job C2 Manager of Operations/COO Job D Sales Manager Job D2 Salesperson

Adnan Danish MBE-11-02

If companies cut back on use of stock options, many people believe that regular employees will be hurt more than executives
Overall about 9 million American employees held stock options in 2006 This number was much higher than previously thought

Surveys reported that about

13 percent of private-sector employees nationwide receive some type of stock options The vast majority, 94 percent, hold jobs below top management ranks

At least one in every eight employees in nongovernmental jobs held stock options
Legislation encouraging companies to expand stock options offerings with rank-andfile employees are being called for

 Gain sharing:

when employees make a suggestion that improves the organization, a percentage of the organizations gain from the suggestion is shared with the employees who made the suggestion
Types of gain sharing: Scanlon Plan, Rucker Plan, Improshare, & Winsharing.

 Common organization wide incentive plans include

Gain-sharing plans Scanlon-type plans Employee stock ownership plans (ESOPs)

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Incentives that reward all members of the organization based on the performance of the entire organization Size of reward usually depends on salary of individual Most are based on establishing cooperative relationships among all levels of employees

One of the first and most successful organization wide incentive plans was the Lincoln Electric plan In addition to providing many other benefits, it calls for a year-end bonus fund for employees based on company profits Plan encourages employees to unite with management to reduce costs and increase production so that the bonus fund will grow

 Organization wide incentive plan that provides employees with a bonus based on tangible savings in labor costs Designed to encourage employees to suggest changes that might increase productivity Departmental committees composed of management and employee representatives are established to discuss and evaluate proposed labor-saving techniques Bonus usually paid is determined by comparing actual productivity to a predetermined productivity norm Companies measure actual productivity by comparing actual payroll to sales value of production for time period being measured Any difference between actual productivity and the norm is placed in a bonus fund
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Employee Stock Ownership Plan (ESOP):

Form of stock option plan in which organization provides for employee purchase of its stock at a set price for a set time period

Based on employees
Length of service Salary Profits of organization Generally executed in the form of a stock bonus plan or a leveraged plan With either plan, an ESOP is established when company sets up a trust, employee stock ownership trust (ESOT) Acquires a specified number of shares of its own stock for benefit of participating employees

Variable Pay
Attempt to reward employees by linking a percentage of their pay to certain performance accomplishments Most do not affect an employees base salary Make a percentage of potential total pay dependent on performance Benefits Compensation for all levels of employees is tied to some type of performance measures Employees perceive this direct relationship between pay and performance

14-76

Qamar Ahsan Haider MBE-11-18

Employee Benefit
Legal Required Benefits
Social Security

Social Security
Federally administered insurance system design to provide funds upon retirement or disability or both and To provide hospital and medical reembersment to people to who have retirement age

Social Security (Contd)

Retirement Benefits Disability benefits Health Insurance

Retirement Benefits
Provide at least at the age of 62 Fully insured under the system

Health Insurance
Also known as Medicare Given to over 65 years old employee Part A (Hospital Insurance) Part B (Medical Insurance)

Unemployment Compensation
Provide funds to
Who have lost jobs Seeking other jobs

Meet three eligibility requirements

Have been covered by social security Have been laid off Be willing to accept any suitable employment offered
Maximum of 26 weeks

Workers Compensation
That protects
Employees from loss of income Extra expenses associated with job-related injuries or illness

Four types of disability

Permanent Partial Permanent Total Temporary Partial Temporary Total

Preretirement Planning
Purpose such planning program is
Help employees prepare for retirement Financially and Psychologically

Covers Financial Benefits like

Social Security Pensions Employee Stock Ownership Health and Life Insurance

Contd
Covers Psychological Benefits
Housing Relocation Health Nutrition Sleep Part-Time Work Recreation Continuing Education

Retirement-Related Benefits
Retirement Plans
Provide a source of income are retired

Private Plans
Funded entirely or jointly by organization

Defined Benefit Plans

Provide a benefit determined by a definite formula at the employees retirement date

Defined contribution Plans

Calls for a fixed or known annual contribution instead of known benefit.

 Pension Rights
Receive retirement fund on behalf by their employers

EOBI
Pervaiz Ilahi has started the retirement plan

Contd
Covers Psychological Benefits
Relocation Health Part-Time Work Continuing Education

usman khan mbe-11-50

Table of contents
1. 2. 3. 4.
I.

Insurance Benefits: Payment For Time Not Working: Employee Preference Among Benefits Other Benefits:
Flexible Benefits Plan

Insurance Benefits
1: Health Insurance:
I. 100% Health Insurance for Employees II. Health insurance for their family except brothers & sisters.

2: Dental insurance: 3: Life Insurance: 4: Accident & Disability Insurance:

Payment for time not worked:

Telenor paid payment on vacations & holidays 8 sick leave 12 casual leaves 3 months leave maternity leave for female employee 1 week leave for paternity

Employee Preference Among Benefits:

There are lots of benefits to employees from Telenor but employees prefer medical among benefits. Which is availed by employees any time.

Other benefits:

Flexible benefits plans:

Traveling policy Free Fuel Free meals Free stay at out of city Lucky draw for Hajj for employees and their husband/wife

Muhammad Umair Saleem Roll no 23

Table of contents

Issue and Challanges Conclusion

Issues and Challenges

Energy crises
Tax Security concerns

Economic activity Inflation

Conclusion

Organization main role is profit maximization

and employee play an important role in that.

So if employee are properly rewarded they

will yield high performance which will help organization achieve its goal.

Good and elaborate reward and

compensation system strengthens the relationship of employee and organization

Conclusion(Telenor care for employee)

Strong history of caring for its employee.

Value employee by giving them proper
rewards through compensation,benefits and incentives.

Firm structure of compensation system. Decision are made on performance. All these steps have helped telenor gain a