Work Force Diversity in Telenor Pakistan

ORGANIZATIONAL BEHAVIOR TERM PROJECT WORK FORCE DIVERSITY- A FORCE MULTIPLIER IN THE ORGANIZATIONAL EFFICIENCY OF TELENOR PAKISTAN

Submitted To: - Mr.Muzzamal Aftab

Submitted By: - Rehan Firdous Roll No: 1500118 MBA 15 (C) Dated: 21 December 2010

2

WORK FORCE DIVERSITY- A FORCE MULTIPIER IN THE ORGANIZATIONAL EFFICIENCY OF TELENOR PAKISTAN ABSTRACT 1. Purpose –This empirical paper has been developed to “identify the effects of work force diversity on the over all efficiency of Telenor Pakistan” and planned changes required at macro as well micro level to further improve the work environment in the Organization to cater for the latest trends in the global prospective. 2. Design/methodology/approach – A combination of quantitative and qualitative research methods was employed to gather information. Specifically, data were collected from middle and lower level mangers dealing with the HR related aspects in Telenor Pakistan. Descriptive data analysis is presented with respect to the effects of the diversified work force. 3. Findings – This study provides significant current information on existing working environments, which have been regarded as one of the best in Pakistan. The findings reveal that a liberal, independent and most conducive work environment prevail in the organization. However, infusion of latest trends can further improve the existing situation. 4. Research limitations/implications – The study was limited to Head Offices of Telenor Pakistan situated in Islamabad. A broader organizational sampling would better reflect the national profile. Another limitation could stem from the procedure used in data collection method (drop off and pick up). However, extreme measures were taken to protect the identity of the respondents. 5. Practical implications – The study identified over all effects of employing a diversified work force to improve the efficiency and work environments in the Organization. Emphasizing that, the model could be adopted by other public as well as private organizations to achieve excellent organizational performance. Furthermore, the Government may create policies to promote the above practices, since, in the long term, achieving organizational excellence will reflect positively on the over all economy of the country. All these may be facilitated through proactive organizational and national human resource development initiatives. 6. Originality/value – The significance of the present study stems from the fact that very few studies have explored the impact of modern technologies and latest trends in using diversified work force. The results provide additional insights into latest trends the world over. The sphere of study has been neglected by management researchers and has therefore been less researched. Also, the insights gained from this study contribute to the future development of this line of research. 7. Keywords - Asia, Pakistan, Telenor Pakistan, Work force diversity, Organizational Efficiency, Developing countries

3

INTRODUCTION 8. Today, at the beginning of the 21st century, the world is submerged in a wide range of demographic trends called “Work Force Diversity”, which have the potential to radically change the demographic, cultural and ethical mixture of the population in many countries within just a few decades. Diversity refers to any perceived difference among people: age, race, religion, functional specialty, profession, gender orientation, geographic origin, and lifestyle. Top managers often say that their company's people are its most important asset. In a tight job market and a global economy a company that puts people first - regardless of their race, religion, gender, age, or physical disability - wins. 9. Diversity management is ensuring that factors are in place to provide for and encourage the continued development of a diverse workforce by melding these actual and perceived differences among workers to achieve maximum productivity. Diversity is more than being politically correct; it is about fostering a culture that values individuals and their wide array of needs and contributions. A study by the Hudson Institute for the U.S. Department of Labor found that 85% of the new entrants into the workforce in the next decade will be women, minorities, and immigrants. If one wants his business to be successful and competitive in the future, he will have to utilize these human resources and participate in these diversity trends. It requires an ever-increasing awareness of how people from different backgrounds deal with authority, communication, overall business etiquette, and relate to their communities of affiliation. 10. Telenor Pakistan-A wholly owned subsidiary of Telenor ASA, launched its operations in March 2005. One of the leading telecom operators providing prepaid, postpaid and value-added services to seven million customers, it is spread across the country with a network of 15 company-owned sales and service centers, more than 200 franchisees and some 100,000 retail outlets selling subscriptions and refills. Telenor Pakistan is keen to promote diversity and has achieved good results in this area. Telenor has developed requirements for diversity in both recruitment and management development programs. There is an appropriate blend of less seasoned and experienced employees. No quota has been assigned; the best-fit candidate (according to the job requirements) is employed. At the office level or call centers, even fresh graduates are apt but the director level requires a masters degree and preferably some work experience. Telenor Pakistan has a large proportion of females who are recruited for internal leadership development programs and executive positions on the basis of past performance. The organization is working on Day Care Centers to help female employees manage their responsibilities after settling down. Relocation issues are dealt cooperatively when female individuals move out of the city after marriage and wish to continue working. They are relocated and facilitated in the new city. Work force diversity has proved to be one of the key factors in the organizational efficiency of the Organization. 4

RESEARCH METHODOLOGY 11. The Problem Statement. Effective utilization of the diversified work force plays a significant role in enhancing the financial performance of the organization. This study tries to address the following key statement; “Does work force diversity if managed properly have any effect on the financial performance of the organization?” 12. Significance of the Study. The study will help in the identification of the effective utilization of diversified work force by Telenor Pakistan and how it has affected the overall work environment of the Organization. In today’s environment where the employees are so much enlightened and have a wide range of options to switch, it is very difficult to retain good employees’ loyalty along with the increase in the financial aspect of an organization when economic recession has touched all the markets. The present study will help the organization to identify the loopholes in the optimum utilization of work force diversity, if any and the ways through which the available work force can be made more productive to attain higher levels of organizational goals. 13. Research Objectives. Following objectives are the subject of present study:a. To highlight the various aspects of work force diversity. b. To identify the reasons which make the basis for enhanced organizational efficiency in response to work force diversity in an organization. c. To determine the impacts of work force diversity in the over all working environment of Telenor Pakistan. d. To draw a set of recommendations to further improve the organizational efficiency of mobile telcomm Operators in Pakistan in general and Telenor Pakistan in particular using diversified work force. 14. Research Question. The research question is a single sentence question that ultimately generates an argumentative paper or defines the real focus of the research process. The research question for this study is; “Does Telenor adequately use effective practices for managing workforce diversity in order to enhance its over all efficiency/ work environment”? The Data for this study will be gathered from Telenor Pakistan and other sources of general information on the subject. 15. Related research questions a. Is Telenor Pakistan adequately using effective recruitment practices for managing workforce diversity? b. Is Telenor Pakistan adequately using effective training and development practices for managing workforce diversity? c. Is Telenor Pakistan adequately using effective performance appraisal practices for managing workforce diversity? d. Do multicultural employees perceive a difference in the remuneration and rewards they receive compared to other employees in the Organisation? 5

e. To what extent is workforce diversity considered a problem/challenge by the Organisation? f. To what extent is workforce diversity considered to be beneficial to the Organisation? THE RESEARCH DESIGN 16. This section includes a description of the research design, population, sample, data collection procedures and instruments validation. In order to generate data of appropriate range and depth, a mixed-method approach using both a questionnaire survey and in-depth face-to-face interviews was adopted. The mixed method has been used in a prior study of Work Force Diversity (Cassell et al., 2002). 17. Sampling Characteristics. The inclusion standard for the study was employees of Telenor Pakistan in Islamabad/Rawalpindi. 18. Research Instrument: Questionnaire has been developed to cover all the aspects of Literature. 19. Research design. Data for this study were collected, using an in depth interview method (attached at annexure A) and a questionnaire survey (attached at annexure B). These methods have been described by researchers as Human resource Management practices methodological pluralism, and have been used in conducting research related to Work force Diversity in developing countries (Cassell et al., 2002; Ibeh and Young, 2001; Kamath et al., 1987; Bell and Young, 1998). Mixed methods help to prevent some of the challenges faced in such type of studies and provide rich data. 20. Population and sample. The population consisted of HRM related people at higher, middle and lower levels of Telenor Pakistan. They were selected because they are mainly concerned with the related aspects of human resources in the Organization. They were also chosen because they were convenient to reach by telephone, fax, and in person. Moreover, they were in a better position to provide the research with the necessary information regarding impact of work force diversity on the overall efficiency/out put of the Organization. 21. Survey method. Stratified sampling was used to select the people surveyed. Stratified sampling allows the researcher to obtain a greater degree of representativeness thus reducing the probable sampling error and to ensure that different groups in a population are adequately represented in the sample (Babbie, 1990, p. 94; Nachmias and Nachmias, 1992, p. 179). To avoid loss and delay due to the weaknesses in the inherent problems of communication and postal system, a drop-off and pick-up method was adopted (Ibeh et al., 2004; 2001; Okpara, 1996; Yavas, 1987). This method ensured distribution and collection procedures, which were systematic and controlled. 22. Interview method. In addition to collecting data through the questionnaire survey, a qualitative data collection technique involving one-on-one interviews with selected respondents will be conducted. This stage of research involved the selection of a quota sub-sample of 20 individuals for in-depth interviews. Line managers will be 6

interviewed because they too are now involved in human resource activities (Papalexandris and Panayotopoulou, 2005; Storey, 1992; Guest, 1987). INSTRUMENTS 23. Survey measures. The survey questionnaire was developed based on previous empirical international HRM/work force diversity research. 24. Prospects. Five major prospects were generated from prior studies (Webster and Wood, 2005; Anakwe, 2002; Ghebregiorgis and Karsten, 2006; Ghebregiorgis, 2006). Examples of these prospects include recruitment and selection, training and development, performance appraisal, challenges of work force diversity, benefits of work force diversity. Respondents were asked to indicate the impact of work force diversity on these important aspects on the future for their organization. The answers ranged from ‘‘Strongly Disagree (1) to ‘‘Strongly Agree’’ (5). Respondents were then asked to indicate any other prospects they see for the future that will enhance their work efficiency. They were also asked to state what they considered to be the major prospects they faced in accomplishing their work. 25. In-depth face-to-face interviews. Semi-structured questions based interview was developed based on the literature (Delery and Huselid, 1996; Arthur et al., 1995; Cassell et al., 2002; Webster and Wood, 2005). The questions are given at annexure A. Selected interviewees were: top level managers, middle level HR officials, lower level HR Officials and other concerned staff. The interviews lasted on average about 45 min and were tape recorded where permitted and later transcribed. 26. Survey data collection. The survey was administered to 150 HR professionals and line managers in various Departments of Telenor Pakistan in and around the capital city. Of the 150 questionnaires distributed, it was expected that 70-80% questionnaires may be received back, but encouragingly 121 were received back. 27. Ethical Consideration. The respondents were approached at their workplace and voluntary participation has been done in order to have honest responses. Briefing about the nature of the study being carried out has been provided and assurance for the confidentiality has been provided regarding the results of the respondents.

7

THE MODEL

INCORPORATING SELECTION & RECRUITING PROCESS

INCORPORATING TRAINING & DEVELOPMENT PROCESS RECRUITERS

EFFECTIVE MANAGEMENT OF WORK FORCE DIVERSITY

INCORPORATING PERFORMANCE APPRAISAL INCORPORATING REMUNERATION & REWARD SYSTEM

8

LITERATURE REVIEW 28. What is diversity? Diversity to us means all aspects in which people differ from one another. This includes both the visible and relatively easily demonstrable personal characteristics such as gender, age and ethnicity, as well as the less visible personal characteristics, such as competencies, needs and wants, work styles and character traits. Each employee has his or her own, unique combination of such characteristics. Another definition describes diversity as creating high performing organizations through valuing and using all the talents of employees of different groups. Regardless of how diversity is defined, it is an issue that is sweeping the nation. If the corporate society does not address the issue by learning how to manage diversity, they will fail. “It is very helpful to suggest that diversity is not so much an end in itself as it is a condition of our society and the condition of the World in which we live.” Frank Wong Vice President for Academic Affairs University of Redlan Diversity Management 29. Managing diversity is one of the most important challenges faced by managers and their organizations. In today’s work environment, co-workers are likely to be of different gender, age, religion, cultural background, race and ethnicity. They also differ in terms of lifestyle, choices available, perspectives, attitudes, value system, beliefs, behaviors, expectations, skills and experiences. These issues are not just about discriminatory practices but they modify the nature and demands placed on leadership and management and bring into prominence the concept of diversity. How well or how prepared managers are able to invest in the concept of diversity will impact not just on work issues but also on sensitivity to customer’s needs, legal compliance, business’ ethical issues, profitability and even social cohesion. Diversity management is a strategic process to manage a diverse work force including the fight against stereotypes, prejudice and all kind of discrimination due to the individual perceptions and assumptions- in the manner to maximize the benefit and minimize barriers of different opinions, behavior and attitudes of human beings within a company. 30. Principles of Diversity Management Diversity management can be divided into two categoriesa. The internal effect has an influence on organizational structural changes within the company. b. The external effect concerns the environment of the company e.g. customers, stakeholders, suppliers etc. 31. The concept of diversity management is extensive; there are various components of diversity as follows: a. Diversity of ethnicity, nationality and cultures b. Diversity of demography (gender, age and experience) c. Diversity of competencies (educational and professional backgrounds) 9

d. e.

Diversity of organizational functions and processes Diversity of networks (i.e. relationships and communications channels and/or patterns etc.) f. Miscellaneous diversity (sexual preferences, occupational disabilities, i.e. handicap or physical mobility, etc.) 32. Work Force as a challenge First, there is an increase in the cost of training. This increase comes from costs associated with seminars, programs and lectures given to promote diversity in the corporation. These types of training are given to all levels of staff within the organization. They teach employees others. These programs also teach one how to deal with conflicts and prejudice in a professional and civil manner. A disadvantage of diversity in the workplace is an increase in conflicts. Conflicts arise when two or more individuals or groups do not see eye to eye on a particular situation. In regard to diversity, conflicts arise largely due to ignorance. Prejudice feelings or derogatory comments cause a lack of acceptance. “This can produce negative dynamics such as ethnocentrism, stereotyping and culture clashes”. The most common conflict comes from one feeling superior. If management ignores such conflicts, the company's performance may suffer. If conflicts can be managed and controlled creativity and performance can be increased. Employers will work harder to gain acceptance by creating a solution or invention first. Increases in labor turnover and absenteeism are another disadvantage in having a diverse workplace. Research has shown that the turnover rate for African Ameri-Ongori and Agollacans in the US workforce is 40 percent greater than whites. Another study by Corning Glass stated that between the years 1980 - 1987, the turnover rate for women in a professional job was two times higher than males. Women also have a 58 percent higher absentee rate than men. 33. Yet, another study shows that a person, who is not a member of the “inner group”, will be one of the first to leave a company (White, 1999). Some research contradicts the idea that flextime reduces these rates; however absenteeism and turnover can cost a company up to and over $3 million annually. Workforce diversity increases labor turnover and absenteeism in organizations on employee satisfaction and productivity. Employees who perceive themselves as valued members of their organization are harder working, involved, and innovative. Unfortunately, minoritygroup members often feel less valued than do majority-group members due to stereotyping, ethnocentrism, and prejudice. Mismanagement of diversity in the form of denied access or unfavorable treatment can have negative consequences, such as inhibiting workers' abilities and motivation. 34. Work Force as an Opportunity Managing diversity can create a competitive advantage. Potential benefits of this diversity include better decision making, higher creativity and innovation, greater success in marketing to foreign and domestic ethnic minority communities, and a better distribution of economic opportunity. Organizations with a diverse workforce can provide superior services 10

because they can better understand customers’ needs. Diversity enhances creativity and innovation (Adler, 1997; Jackson et al., 1992), and produces competitive advantages. 35. Why should we strive for diversity in personnel? An often heard argument to avoid having to put energy into diversity is that it only leads to misunderstanding, undesired formation of groups, communication problems and conflicts in the work force. When put like this, paying attention to diversity seems a useless investment. But demographic developments cannot be ignored. In situations like labor shortage, organizations cannot permit themselves to exclude a substantial part of the labor force. Diversity in personnel has different advantages pertaining to business economics: a. Attraction for a wider group of customers: more people can identify with the organization. This could increase your turnover; b. More creativity within the organization: diversity leads to innovative products and services, which is necessary to compete with other businesses; c. An improved business image: more people see you as an ’employer of choice’. 36. Diversity covers a wide variety of issues, including communicating with employees, whose first language is not English, helping a diverse team cope with conflict, learning which rewards are valued by different groups, and dealing with discrimination. 37. Importance of Diverse Workforce Our Nation is made up of people from diverse backgrounds, cultures, customs and beliefs. It is those differences that contribute to the richness and strength of our society. Like our Nation, the workforce Is also becoming more and more diverse. As a result, in order to recruit, hire and retain the best people from every background and community, we must foster diversity in our workforce, manage it effectively, and value what it has to offer. A diverse workforce is critical for any organization that seeks to improve and maintain a competitive advantage. Focusing on diversity and looking for ways to achieve an inclusive environment is not just a “nice to have objective,” it makes a good business sense. A diverse workforce offers greater productivity and a competitive edge. Diversity improves the quality of our workforce and offers a higher return on our investment in human capital. Our agency’s future depends on the quality of employees we recruit today. New employees often consider an organization’s diversity efforts when deciding whether to accept or reject an employment offer. Potential candidates are usually more attracted to employers that are committed to sustaining a diverse workforce. Moreover, diverse perspectives increase creativity as they offer different perspectives, ideas and solutions. 11

38. Benefits of Diversity People have a lot of viewpoints and having people from many backgrounds and places in life brings a lot of those viewpoints into the mix. In some situations, a lot of viewpoints give us a lot of options. Plus, since there are many different viewpoints and environments in the workers, there are many opportunities for these different viewpoints to come into the planning of strategic initiatives, allowing the firm to serve a wider group of consumers and interests. The Various advantages of having a diverse workforce are the following; a. It helps motivating employees. b. It enhances the innovation and creativity of employees. c. It helps in reducing cost. d. It creates flexibility in the organization. e. Immediate access to problem solving. f. Easy transfer of knowledge. g. Better marketing structure. h. Innovative work environment. j. Immediate outcomes. k. Fulfillment of social responsibility. l. It helps attract and retain employees. TELENOR 39. Telenor is the fastest growing telecommunication company in Pakistan. It has a great market share in Pakistan telecom sector. Now it is leading with services it is providing other than any company of that sector. Telenor position their company by mainly targeting on the rural areas. He captures the market of the rural areas and started by capturing the vacant market of the Pakistan. And now it is growing on a large scale. Lets have a look on the development of the Organization through time: -

a.

b.

History of Telenor For over 150 years, telecommunications has played a vital part in the development of modern Norwegian society. As the incumbent provider, Telenor has been the driving force in the development of a highly sophisticated home market and is now one of the largest mobile operators worldwide. The introduction of the telephone The years of 1855 to 1920 was a pioneering period in the history of Norwegian telecommunications. During two generations, the Norwegian society experienced the introduction of three new means of communications: the telegraph in the years of 1850, the telephone around 1880 and wireless telegraphy – radiotelegraphy – at 12

c.

d.

e.

the turn of the century The spread and use of telecommunication was modest compared to later periods, but as entirely new features they received a fair amount of attention. Pioneer in mobile communications Telenor is a pioneer in mobile communications. Manual mobile telephony services were introduced in Norway in 1966, as a forerunner to the automatic NMT system, which appeared in 1981. Its digital successor, GSM, was introduced in 1993, and third generation mobile network, UMTS, was launched for commercial use in 2004.

Norwegian telecom becomes a public corporation In 1994, Norwegian Telecom was established as a public corporation. One year later, it changed its name to Telenor. In December 2000, Telenor was partly privatized and listed on the stock exchange. Telenor has undergone momentous change as a group – from being a strong national operator with significant international holdings to be coming an international, world-class provider of mobile communications services. Telenor now has mobile operations in 12 markets around the world, many of which are seeing high growth. In each of these markets we will drive towards greater competitiveness, building on the much strength we have forged during our more than 150 years of history and on our international experience. Telenor is emerging as one of the fastest growing providers of mobile communications services worldwide. Telenor is also the largest provider of TV services in the Nordic region. Telenor is organized into three business areas; Mobile operations covering 12 countries, and Fixed-line and Broadcast services covering the Nordic region. It has: 1) Mpore than 174 million mobile subscribers worldwide 2) Strong subscription growth, particularly in our Asian operations 13

Listed as No.1 on Dow Jones Sustainability Index 2008 Ranked as the world’s seventh largest mobile operator Revenues 2009: NOK 97.7 billion Workforce 2009: 35 800 man-years Listed on the Oslo Stock Exchange, with headquarters in Norway GLOBAL PRESENCE. 40. Telenor has ownership interests in 12 mobile operators across Europe and Asia. Their international mobile footprint covers more than 650 million people. It is taking its business on large scale and their business level starts growing at a very fast speed. They are the pioneers of new technology providers. Now they have set their business on a large scale. 3) 4) 5) 6) 7)

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, Telenor Satellite 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 14

· Services: Broadband, Mobile, Telephone, TV · Companies: Telenor Sweden, Bredbandsbolaget, Glocalnet, Canal Digital 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 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 15

DiGi is the fastest growing mobile operator in Malaysia · Services: Mobile . Companies: DiGi 41. Telenor in Pakistan After Telenor Pakistan launched its GSM mobile network in 2005, it quickly became the fastest growing mobile network in the country. As the number of mobile phone users is growing, from around 15 per cent in 2005 to close to 50 per cent in 2007, the number of Telenor subscribers is growing even faster. Telenor Pakistan is now acquiring more than 20,000 new subscribers every day! With coverage reaching deep into many of the remotest areas of Pakistan, Telenor Pakistan is, in some places, the only operator connecting the previously unconnected. 42. Licenses and network Telenor Pakistan currently holds nationwide GSM 900/1800 licenses. In addition the company holds a license to build and operate a mobile network in Azad Jammu and Kashmir (AJK) and the Northern Areas. Telenor Pakistan also holds a Long Distance and International (LDI) license under which it provides nationwide and international call services. After launching EDGE in August 2006, Telenor Pakistan has the country's widest EDGE coverage, allowing access to high-speed Internet and data services.

16

43. Services and innovation Telenor Pakistan offers a wide array of private and corporate services, prepaid and contract mobile telephony. Some examples of the services are: a. The Telenor Cricket Companion, a GPRS based application allowing you to get updates and watch games directly on your phone. b. The Tele Doctor Service answers medical questions from customers via SMS. c. Food recipe services, Bollywood downloads, etc. d. Apna PCO ("Our Public Call Office"), allowing people in rural areas to share a mobile phone. e. In 2008 Telenor Pakistan launched solar-powered base stations to increase network coverage. Solar-powered base stations are energy efficient and eco-friendly. 44. Market share of Telenor Pakistan The market share of Telenor Pakistan is 22.15%. And it is a great achievement for Telenor because it started its operations in 2005, whereas, Ufone started its operations in 2001 but Telenor became second in the cellular market. By adopting better strategies Telenor Pakistan is becoming the cellular market leader in Pakistan in next few years. 45. TELENOR’S MANAGEMENT TORE JOHNSEN CEO & President With over 30 years experience working at Telenor, Tore has spent a considerable amount of time on international assignments for the company including Europe, Central Asia and Asia. His most recent position in Asia was heading Digi (as CEO), Telenor’s Malaysian mobile company. Tore took over as CEO of Telenor Pakistan in August 2004. He has Masters in Electronics from the University of Technology, Trondheim, Norway. FRODE ASMUL VP HR, Admin & Security Frode has 14 years experience with Human Resource and Organizational Development. He has been associated with Telenor for the last four years. A Masters in Philosophy, Logic and Ethics, Frode was also a commissioned officer in the Norwegian Army.

17

HELGE DIETRICHSON VP Communication Helge supervises external relations, PR and media affairs for Telenor Pakistan. Having spent 12 years with Telenor, Helge brings tremendous experience to Pakistan associated with the Mobile division for the last five, with previous assignments in Bangladesh, Singapore and Telenor Asia. A PhD in Theology from the University of Oslo, Helge’s diverse career spans seven years as a TV anchorman in addition to serving as a Pastor at the Church of Norway. BJORN TAALE SANDBERG VP/CMO Commercial Division Bjorn has spent a decade in the Telecom sector, five of which were dedicated specifically to mobile. Before joining Telenor Pakistan, he was heading the Group Products and Marketing function at the Telenor headquarters in Oslo. He is a double Masters, having degrees in Science (University of Oslo) and Management from Oslo Business School. IRFAN WAHAB KHAN EVP Corporate & Regulatory Affairs Irfan heads the Corporate & Regulatory Affair Division at Telenor Pakistan. He has extensive international experience in mobile cellular industry and has worked at Orange UK, T-Mobile USA, Telecordia Technologies in USA & Saudi Arabia, Nortel Networks in Pakistan, Ericsson in the Philippines, and the Ministry of IT & Telecom, Pakistan. He holds the distinctions of having served as a Director on PTCL’s Board and Vice Chairman of GSM Alliance, North America. Irfan holds a Bachelors degree in Electrical Engineering from University of Engineering and Technology, Lahore, and a Masters degree in Mobile Communications from University of Westminster where he was also awarded “Student of the Year”. In his spare time, he enjoys golf, tennis and traveling. STEFAN CARLSSON VP/CFO Finance Division Stefan comes from the CFO position in Telenor’s Swedish mobile operation in addition to spending four years in Banking and three in Mobile. He is a Master of Finance & Accounting from Uppsala University, Sweden. KHALID SHEHZAD VP/CIO IT Division Khalid has worked extensively with the international telecom sector including stints with Motorola, Millicom, AT&T Wireless, Western Wireless, Ufone and Celtel Int. He has the distinction of being noted as IT Director of the Year for Western Wireless International in 2000 and Employee of the Year within Millicom International in 1996. Khalid has done his Bachelors at UCLA and has a BS in Computer Science and an MBA from IBA, Karachi.

18

KJELL NORDBO VP/CTO Technical Division Kjell has more than 25 years telecommunications experience in technical expert positions as well as in management positions within the Telenor Group. Kjell joins Telenor Pakistan after a 4.5 year assignment as CTO in Kyivstar, one of the major mobile operators in Ukraine. He has also gained experience from mobile operations in Greece, Ireland, and Russia. Kjell is a Master of Science from the Technical University of Trondheim, Norway. KURT SEVERINSEN VP/CPO Procurement Kurt has been associated with the international logistics and purchasing Industry for the past 24 years, 15 at the managerial level. He joined Telenor Pakistan after serving as VP of Purchasing and Logistics in Sonofon, Telenor’s Danish mobile operation, where he built the unit from the ground up and headed a number of successful international procurement projects for the group. He has also worked as Director of Logistics in the Nordic Region of UK-based United Biscuits. He has shipping education from The East Asiatic Company, Copenhagen, a diploma from the Copenhagen Business Academy in Purchasing and Logistics, and many individual courses from European Institute of Purchasing Management from France. 46. The Brand At the heart of Telenor brand is their logo -- a symbol of balance, movement and change. It represents the philosophy of innovation and democratic process, and takes its inspiration from Scandinavia’s long history of design inspired by nature. Of course a brand is much more than just a logo – it is a set of ideas, a way of doing things and a measure of behavior. In many ways, Telenor already stands out. They have shown impressive growth and an increasingly international focus, particularly in new growing markets. Aim is to be the most trusted mobile service provider in Pakistan Telenor brand is truly customer centric. They believe in understanding their customers’ needs -- which are changing constantly -- driving to continuously innovate in the products and services.

DATA ANALYSIS 19

47. Data analysis has been done to determine how the sections covered in the research project respond to the items under investigation. Descriptive statistics, Pearson product moment correlation and multiple regression methods have been employed to analyze the collected data. Figures obtained from SPSS statistical part was interpreted to come at conclusion and implications. DATA COLLECTION 48. Distribution and Responses. As stated above, Thirty (30) copies of the questionnaire were given to various sections of HR Department making the figure 150 for all the five (5) Sections. One hundred and twenty one (121) were received back for final analysis. Details are as under: Table-1 Distribution and Responses Section Selection & Recruitment Training & Development Performance Appraisal Budget & Accounts Miscellaneous

Questionnaires Distributed 30 30 30 30 30

Responses received 25 23 27 22 24

% age Responses 83 % 76 % 90 % 73 % 80 %

49. Demographic Characteristics of Respondents: First section of the Questionnaire collected demographic data of respondents and it has six (6) questions. This section helped in understanding about the type and quality of manpower of these sections. While majority of employees are Male, result shows that the Organization has inducted reasonable representation of Female employees. The organizations’ employees are mostly of Age < 30 24 % very productive age group. 31-35 46 % Only a small fraction is in 36-40 17 % higher age and those 41-45 9% might be in higher 45-50 3% management. The outcome > 50 1% Male Gender 69 % of survey is detailed in Female 31 % below table: Section

Selection & Recruitment Training & Development 20 Performance Appraisal

Others

37 % 24 % 32 % 7%

Status

Total Experience (Years)

Education

Top Level Middle Level Lower Level Staff < 10 11-15 16-20 21-25 > 26

5% 46 % 33 % 16 % 23 % 18 % 36 % 20 % 3%

Intermediate

14 %

Graduate Masters & above

45 % 34 %

HR related Others

7% -

Table 2. Demographic Statistics 50. Results. The study included 150 employees of Telenor Pakistan. The sample was selected at random from various sections of the HR Department. Data was collected using a structured questionnaire. The total length of the questionnaire was two pages and took about 25 minutes to complete. The questionnaire used in this study consisted of three major sections: biographical data, challenges and benefits, and diversity management practices in the four human resources areas under study. The second and third sections of the questionnaire used five-point Likert scales (1 = strongly disagree to 5 = strongly agree). Remuneration practices were measured using a 12-item scale (D'Netto, 1994; Newman and Krzystofiak, 1990). Cronbach's (1951) alpha coefficient was computed to test the internal consistency of the scales. The results were as follows: (challenges: eight-item scale a = 0.87, benefits of diversity: 11-item scale a = 0.93, recruitment: eight-item scale a = 0.77, training and development: 1021

item scale a = 0.84, performance appraisal: eight-item scale a = 0.70, remuneration: 12item scale a = 0.97). The questionnaires were mailed as well as personally handed over to “the concerned officials of Telenor Pakistan” included in the sample. Each questionnaire was accompanied by a covering letter which briefly explained the purpose of the study. A self-addressed prepaid envelope accompanied the questionnaire. Respondents were asked to complete the questionnaire and mail it directly. A reminder letter was sent to all respondents one week after the original mail out.

51. Main research question. The results of the study indicated that diversity management practices in Telenor Pakistan are “outstanding”. The overall variable (all HR diversity practices) had a mean of 4.53 (see Table I). The overall performance of the Organisation in each of the four human resources areas is also indicated in Table I. Variable Recruitment Performance appraisal Training and development Remuneration All HR diversity practices

Mean 4.03 4.57 4.20 4.53 4.33

Table I- Mean scores of Human Resource Combine Values

4.6

Recruitment

4.4

Performance appraisal

4.2

Training and development

4

Remuneration

3.8

All HR diversity practices

3.6

52.

Related research questions 22

has

a.

Research question No. 1In order to assess whether the Organisation effective diversity practices in the area of recruitment, the mean score for the combined recruitment variable was calculated (see Table I). The mean scores for the individual diversity practices in recruitment were also calculated. The results are presented in Table II. The results of the mean scores in Table I for the overall recruitment function and in Table II for the individual diversity practices in recruitment revealed that the overall use of diversity practices for the recruitment function in the Organizations is above average. The mean score for the overall recruitment variable was 4.03. This indicates that the current recruitment practices adequately meet the needs of a more diverse population. Variable

Mean

Top management supports local recruitment

4.77

Current job descriptions and selection processes reflect the local needs

3.71

Local employees are present on selection committees

3.05

The company has policies aimed at attracting local employees to deal with local customers

3.91

Presence of local employees in HRM department

4.36

Special programs that aim to recruit local each year

4.01

Table-II-Selection & Recruitment

23

Top m anagem ent supports m igrant recruitm ent

5 4 3 2

b.

Current job descriptions and selection processes reflect m igrants' needs M igrant em ployees are present on selection com m ittees The com pany has policies aim ed at attracting m igrant em ployees to deal w ith m igrant custom ers Presence of m igrant em ployees in HRM departm ent

1

Special program s that aim to recruit m igrants each year

0

Special program m es that aim to recruit m igrants each year

Research question No. 2. The mean score in Table I for the overall training and development function was 4.20, indicating that the overall response is once again above the mid-point of the scale. The Organization does appear to have adequate diversity policies and programs in the area of training and development. The results in Table III indicate that career management programs for the locals, cultural sensitivity courses and education programs to reduce stereotyping are adequate.

Table-III- Training & Development Variables Mean Employees' needs are assessed irrespective of their origin, to 4.05 enable full participation Individual Training plans are developed 4.68 Present skills of staff are identified through an audit process 4.03 Developing managerial skills for working in a multicultural 3.95 environment Literacy, numeracy and language skills are evaluated 3.64 Education programs to reduce stereotyping 3.73 Managers having the title of diversity managers 3.09 Local career management programs 4.06 24

Note: 1 = strongly disagree through 5 = strongly agree

Employees' needs are assessed irrespective of their origin, to enable full participation

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

Individual Training plans are developed

Present skills of staff are identified through an audit process Developing managerial skills for working in a multicultural environment Literacy, numeracy and language skills are evaluated

Education programs to reduce stereotyping

c.

Research question No. 3. In the area ofManagers performance appraisal, the having the title of diversity managers Organization appears to have good diversity management practices. The overall mean score for performance appraisal was 4.57. Respondents stated that appraisal ratings were focused on the individual's performance and that objective criterion and fair practices were used for everyone. Yet, the same respondents stated that there was inadequate inclusion of culturally diverse employees on appraisal panels and that more consideration for local needed to be introduced (Tables IV and V). Table-III- Performance Appraisal Variable Appraisal ratings are focused on the individual's performance, not personality Local employees do not have to be higher performers than Norwegians to get promoted Objective criteria and fair practices for everyone The cultural background of the appraiser does not influence the performance ratings of the appraisee Several multicultural employees are at the top of the organisation Culturally diverse employees are included on appraisal panels

25

Mean 4.19 3.91 4.86 3.71 3.56 4.31

More consideration for the locals has been introduced Top management directly intervenes to ensure cultural diversity goals are met

4.29 3.73

Note: 1 = strongly disagree through 5 = strongly agree Appraisal ratings are focused on the individual's performance, not personality

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 d.

Local employees do not have to be higher performers than Norwegians to get promoted Objective criteria and fair practices for everyone

The cultural background of the appraiser does not influence the performance ratings of the appraisee Several multicultural employees are at the top of the organisation

Research question No. 4 The mean score inCulturally Table diverse I for employees the overall on appraisal remuneration function was 4.53, indicating that the are useincluded of diversity practices in panels this function is good. Respondent organizations were satisfied that the salary and benefits of multicultural employees was quite good, when compared to other employees in the organization. Table-IV – Overall Remuneration Function Variable Mean Compensation 4.79 Working conditions 4.65 Work load 4.58 Work importance 4.56 Status/recognition 4.56 Job security 4.55 Advancement opportunity 4.49 Feedback 4.49 Social interaction 4.44 Benefits 4.43 Work variety 4.41 Authority/control/autonomy 4.41 26

Note: 1 = well below average through 5 = well above average

4.8 Compensation

4.7

Working conditions Work load

4.6

Work importance

4.5

Job security

Status/recognition Advancement opportunity Feedback

4.4

Social interaction Benefits

4.3

Work variety Authority/control/autonomy

4.2

e.

Research question No. 5. The results shown in Tables V and VI revealed that the mean score for the combined problems/challenges variable was 4.11 (see Table V). The mean scores in Table VI indicate that workforce diversity is not seen as posing major problems/challenges to the Organization. In fact, local employees do not have higher absenteeism rates and appear to work well within the Organisation. Table V- Mean score for combined problems/challenges No increased absenteeism or higher turnover 4.65 Local employees are given opportunities to improve technical and 4.34 managerial skills Local employees adapt well to the Organization's culture 4.20 No significant increase in conflicts 4.10 No significant communication problems 4.08 No significant cross-cultural problems 4.04 Complying with equal opportunity legislation

Note: 1 = well below average through 5 = well above average 27

3.82

No increased absenteeism or higher turnover

5 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0

Local employees are given opportunities to improve technical and managerial skills Local employees adapt well to the Organization's culture

No significant increase in conflicts

No significant communication problems

No significant cross-cultural problems

Complying with equal opportunity legislation

f. Research question No. 6. The mean score for the benefits combined variable was 4.46. The results in Table V and Table VI indicate that the Organization seeks several benefits from a multicultural workforce. In particular, the Organization believes that managing diversity can create competitive advantage and provide better customer service. They also believe that good management of diversity would result in highly motivated employees and increased productivity. Table VI – Benefits of diversity Variables Mean Managing cultural diversity can create 4.85 competitive advantage Full participation of all individuals 4.72 More innovative solutions 4.62 Better customer service 4.56 Highly motivated employees 4.54 Higher productivity 4.46 More diverse opinions in decision 4.40 making Higher morale 4.35 28

Managing cultural diversity can create competitive advantage

5

Full participation of all individuals

4

More satisfied employees Less internal conflict Lower turnover

4.33 4.17 4.03

More innovative solutions Better customer service Highly motivated employees

3

Higher productivity

2

More diverse opinions in decision making Higher morale

1

More satisfied employees Less internal conflict

0

Lower turnover

Note: 1 = well below average through 5 = well above average

53. Descriptive Statistics; Descriptive statistics were used to examine Mean, Median, Mode, Standard Deviation and other information. Since all the items were measured using five point likert scale starting from “strongly disagree” to “strongly agree” therefore mean values greater than 3.00 for all five variables show positive trend. The outcome explains the overall effects of work force diversity on the organizational efficiency, incorporation of selection & recruitment process, incorporation of training & development process, performance appraisal and remuneration & reward system which are positively skewed. In nutshell, most of the respondents favored the organizational policies in terms of the aforementioned variables. Table below contains data about central tendency for the predicting and criterion variables Table 3. (Descriptive Analysis Result) Measurement Effs on the selection & training & performance remuneration & organizational recruitment development appraisal reward system efficiency process process Mean Standard Error Median Mode Standard Deviation Count

4.3324 0.07

4.0320 0.06

4.2070 0.06

4.5704 0.05

4.5345 0.04

3.3 3.3 1.1759

3.4 3.40 1.1321

3.3 3.35 1.1194

3.2 3.20 1.2201

3.3 3.25 1.357

121

121

121

121

121

29

Confidence Level (95.0 %)

0.14

0.13

0.13

0.15

0.14

Figure 4 (Aggregate Mean Value) 4.7 4.6 4.5 4.4 4.3 4.2 4.1 4 3.9 3.8 3.7 Effs on the organizational efficiency

selection & recruitment process

training & development process

perform ance appraisal

rem uneration & rew ard system

54. Standard deviation varies from 1.11 to 1.35 for different variables which reflects the pattern of scatter diagram. The standard deviation is also important as it depicts an indication of the average distance from the mean. As calculated, low standard deviation shows that most observations cluster around the mean for all variables. 55. Correlation Analysis: Correlation analysis determines the relationship as well as the extent of association between variables. Result of correlation analysis show that incorporation of selection & recruitment process is found significantly correlated with effectively utilizing diversified work force. Correlation value between selection & recruitment process is found as 0.653 at 95% confidence level. Second highest correlation value is calculated as 0.542 between incorporation of training & development process and effectively utilizing diversified work force explaining slightly low relationship as compare to selection & recruitment process and effectively utilizing diversified work force but still significantly high. Item Remuneratio Performance Incorporation Incorporation Effects on n & reward appraisal of training & of selection the development & organizational process recruitment efficiency process remuneration & 1 30

reward system performance appraisal incorporation of training & development process incorporation of selection & recruitment process Effects of work force diversity on the organizational efficiency

0.453

1

0.324

0.563

1

0.526

0.482

0.712

1

0.387

0.409

0.542

0.653

1

Table 5 (Correlation Matrix) 56. Correlation value between remuneration & reward remained as 0.387 which is also significantly high but not like other three independent variables. The results are slightly different from earlier studies due to changing socio-economic environments of Pakistan. 57. Regression Analysis. Regression analysis was applied to know the interdependence of two variables. Results show that a total 58 % of the variation in effects of work force diversity on the organizational efficiency is explained by the four predicting variables of this study. The values of coefficient of determinations are found as 0.080, 0.057, 0.509 and 0.607 for remuneration & reward, performance appraisal, incorporation of training & development process and incorporation of selection & recruitment process respectively. While the t values for all the independent variables remained more than 0.9 showing significant relatedness and predicting qualities of the coefficients. In nutshell, regression analysis shows that 58% of the effects of work force diversity on the organizational efficiency depends upon remuneration & reward, performance appraisal, incorporation of training & development process and incorporation of selection & recruitment process while rest of 42% dependence is unexplained or explained by other variables which are not taken in this study. Regression Statistics Multiple R 0.659 R square 0.584 Adjusted R 0.425 Square Coefficient Standard Error t stat Intercept 1.215 0.195 6.222 31

Remuneration & reward Performance appraisal Incorporation of T & D process Incorporation of S & R process

0.080

0.087

0.916

0.057

0.054

1.064

0.509

0.071

7.172

0.607

0.064

2.054

Table 6 (Regression Table)

DISCUSSION 58. Conclusions. Research on management of workforce diversity in Telenor Pakistan has been sparse and has not adequately assessed the extent to which diversity practices identified in the literature are being used by the Organisation. Hence this study sought to examine how effectively Telenor Pakistan is using good human resource management practices to manage workforce diversity. The study also investigated the challenges and benefits of workforce diversity. 59. The main research question sought to assess the use of diversity practices at the overall level by combining the four human resources functional areas together. The results revealed that, overall; the use of diversity practices in Telenor Pakistan is “excellent”. This was indicated by the fact that the human resources combined variable had scored a mean of 4.33, sufficiently higher than the mid-point of the scale. There are a number of explanations for the presence of good diversity management practices in Telenor Pakistan. Firstly, workforce diversity has assumed the status of a key success factor in business and society since the mid-1980s. This concept is not new for the organizations in telecom sector of Pakistan. Acceptance and integration of workforce diversity practices take a considerable amount of time (Council for EEO, 1990; Industry Task Force, 1995). Secondly, it appears that in managers Telenor Pakistan pay particular attention to workforce diversity because local employees do not create many problems and appear to comply willingly with organizational rules and regulations. 60. Research question 1 examined the adequate use of effective recruitment practices for managing workforce diversity. The analysis of data revealed that 32

diversity practices in recruitment had a mean of 4.03, indicating that diversity practices in this function has been fully applied by the Organisation. Recruitment provides the entry point for this diverse pool of talent. The absence of good diversity practices in the recruitment process may result in the failure to benefit from a multicultural workforce in the future. The results of this study indicate that there is strong top management support for recruitment (mean = 4.77), this support translates into effective policies and practices at lower levels. There is adequate inclusion of locals on selection panels and in human resource departments. In addition, there are adequate policies and programs for the recruitment of local employees. Telenor Pakistan appears to be capitalizing on the abundance of skills that exist in Pakistan. The findings of this study indicate that adequate attention is being paid for development and use of proactive recruitment policies and practices to manage Workforce diversity effectively. 61. Research question 2 dealt with the adequacy of diversity practices in the training and development function. Past research has indicated that the increase in the shortage of skilled labour, the increasing competitive environment and the rapid rate of change puts an organisation under pressure to adapt to these changes, through effective training programs and courses to empower its diverse workforce (Jackson et al., 1992; Loveman and Gabarro, 1991). Thus, it is heartening to find that in the wake of the growing need for training and development, the findings of this study indicated “well above average” performance by the Organisation in training and development for diverse employees (mean = 4.20). Organisation seems to be willing to adopt appropriate diversity practices to manage the training and development function more effectively. While training and development improves an employee's knowledge and skills, it also serves to reduce turnover. Programs for training and developing local employees can help to reduce the feeling of alienation and provide career paths for these employees. The results indicated that while identification and assessment of training needs is good and relevant training programs to deal with diversity are also adequate. For example, there are adequate programs to deal with issues such as cultural sensitivity, stereotyping and managerial skills for working in a multicultural environment. In addition, the Organisation appears to be paying enough attention to developing the English language skills of multicultural employees. 62. Research question 3 addressed the issue of diversity practices in relation to performance appraisal. Good diversity practices in the area performance appraisal are essential to reduce discrimination in recognition of merit and break the glass ceiling (Powell and Butterfield, 1994). The findings indicated that Telenor Pakistan has good diversity management practices in the area of performance appraisal (mean = 4.57). Respondents were emphatic that appraisal ratings focused on the individual's performance and not personality (mean = 4.19). In addition, respondents stated that objective criteria were used and that local employees did not have to be higher performers than others to get promoted. These findings are encouraging and indicate 33

that managers do not discriminate against multicultural employees when assessing employee performance. In addition, there is direct intervention by top management to ensure that diversity goals are met (mean = 3.73). In addition, the practice of including local employees on promotion panels is common. 63. Research question 4 sought to compare the remuneration of multicultural employees. Past research has indicated that a lack of career planning and organizational discrimination in promotional opportunities against diverse employees creates mistrust, deteriorates morale and results in wage disparities (Loveman and Gabarro, 1991; Morrison, 1992; Schreiber et al., 1993). Contrary to the fears of the researchers, the results of this study indicated that Telenor Pakistan do not discriminate against diverse employees in the area of remuneration (mean = 4.53). Overall, diversity practices in the area of remuneration and benefits appear to be quite adequate. In all 12 areas of remuneration, respondents indicated that there was no significant difference between multicultural employees and others. 64. Research question 5 aimed to assess the extent to which workforce diversity was considered a problem/challenge by the Organisation. Researchers consider workforce diversity as an enormous challenge which requires cross cultural understanding in a constructive and creative manner, through establishing a cooperative, harmonious and productive working environment (Council for EEO, 1990; Office of Multicultural Affairs, 1989; Industry Task Force, 1995). However, the results of this study appear to indicate that Telenor Pakistan do not see workforce diversity as presenting major problems/challenges to their organisation (mean = 4.11). Local employees do not have higher absenteeism or turnover rates. The Organization did not experience any cross-cultural problems, communication problems or increase in training costs. In fact, local employees appear to be adapting well into the organisation culture. These positive perceptions about local employees are good. 65. Research question 6 sought to assess the extent to which Telenor Pakistan seeks to benefit from workforce diversity. Past research has indicated that workforce diversity can create opportunities not achievable in the traditional workforce (Cox and Blake, 1991; Hall and Parker, 1993). The findings of this study indicated that the Organisation strongly believe that workforce diversity can provide substantial benefits (mean=4.46). Respondents sought benefits such as improved competitive advantage, higher productivity, greater participation and increased motivation from local employees. 66. In summary, the findings indicate that Telenor Pakistan believes they can increase productivity considerably through effective management of diversity in the workforce. The overall performance in management of workforce diversity is excellent. However, room for positive changes exists in the areas of recruitment and selection and training and development. RECOMMENDATIONS 34

67. We as students of HRM can just recommend the international/multi national organizations (in this case Telenor) within the sphere of our knowledge, exposure and literature survey. It is recommended that Managers at Telenor Pakistan can improve handling of diversity issues by following these eight behaviors: a. Embrace diversity: Successfully valuing diversity starts with accepting the principle of multiculturalism. Accept the value of diversity for its own sake —not simply because you have to. You need to reflect your acceptance in all you say and do. b. Recruit broadly: When you have job openings, work to get a diverse applicant pool. Avoid relying on referrals from current employees, since this tends to produce candidates similar to your present workforce. c. Select fairly: Make sure your selection process doesn’t discriminate. Particularly, ensure that selection tests are job-related. d. Provide orientation and training for minorities: Making the transition from outsider to insider can be particularly difficult for nontraditional employees. e. Sensitize all employees: Encourage all employees to embrace diversity. Provide diversity training to help all employees see the value in diversity. f. Strive to be flexible: Part of valuing diversity is recognizing that different groups have different needs and values. Be flexible in accommodating employee requests g. Seek to motivate individually: You need to be aware of the background, cultures, and values of employees. What motivates a single mother with two young children and who is working full time to support her family is likely to be different from the needs of a young, single, part-time employee or an older employee who is working to supplement his or her retirement income. h. Encourage employees to embrace and value diverse views: Create traditions and ceremonies that promote diversity. Celebrate diversity by accentuating its positive aspects. But also be prepared to deal with the challenges of diversity such as mistrust, miscommunication, and lack of cohesiveness, attitudinal differences, and stress. 68. Limitations of the study. This study has some limitations. First, this study focused only on multiculturalism. Other dimensions of diversity, such as age and gender, were not included in this study. Second, the research design combined local employees. The aim was to assess the general use of diversity practices within the Organisation irrespective of employees' country of origin. Third, the respondents in this study were mostly part of the ``management'' team. Hence, it is likely that their responses to the adoption and efficacy of diversity management practices have a positive bias. 35

69. Implications for future research. The findings of this study have several implications for future research. First, this study focused only on four human resources areas. Future research can assess the use of diversity management practices in other areas such as leadership, teamwork, decision making, etc. Second, the respondents of this study were human resources managers in various departments related to HR. This study can be replicated using ``employees'' as a sample. This will facilitate a comparison of ``employer'' and ``employee'' perceptions of the extent of diversity management practices in Telenor Pakistan. Third, this study used a questionnaire for collection of data. Researchers can adopt “triangulation” (collecting data using three different methods), so as to enhance the reliability of the results of the study. For example, focus groups and interviews may actually capture other diversity issues. Finally, this study can be replicated in other Organizations to assess diversity management performance in the in the telecommunication market of Pakistan.

36

Annexure A INTERVIEW QUESTIONS Q-1: Describe briefly a typical day at your work? Q-2: Why did you join the Telenor Group? Q-3: What are the best parts of your work? Q-4: How would you describe Telenor’s work environment? Q-5: If you should choose one word to describe Telenor, what would it be? Q-6: Can you describe a special event that you especially enjoyed? Q-7: Describe your career in Telenor so far Q-8: What are your professional goals? Q-9: What do you enjoy doing in your spare time? Q-10: In your opinion your organisation adequately use effective recruitment practices for managing workforce diversity? Q-11: Is your organisation adequately uses effective training and development practices for managing workforce diversity? Q-12: Do you think your organisation adequately use effective performance appraisal practices for managing workforce diversity? Q-13: Do multicultural employees perceive a difference in the remuneration and rewards they receive compared to other employees in the organisation? Q-14: To what extent is workforce diversity considered a problem/challenge by your organisation? Q-15: To what extent is workforce diversity considered to be beneficial to your organizations?

37

WORK FORCE DIVE

Dear Respondent! I am a student of MBA and have d all efficiency and out put of Telen below to the best of your knowled this regard shall be highly apprecia Thanking you in anticipation.

(Please tick the appropriate checkbox b 1. Age □ (30 & Be 2. Gender 3.

Qualification 38

□ (Interme

Challenges of Work Force Diversity Q: 24 No increased absenteeism or higher turnover

1

2

3

4

5

Q: 25

Local employees are given opportunities to improve technical and Q: 26 managerial skills Q: 27 Local employees adapt well to the organization’s culture Q: 28 No significant increase in conflicts Q: 29 No significant communication problems Q: 30 No significant cross-cultural problems Q: 31 Complying with equal opportunity legislation Q: 32 No significant increase in training costs Benefits of Work Force Diversity Q: 33 Managing cultural diversity can create competitive advantage

1

2

3

4

5

1 1 1 1 1 1 1

2 2 2 2 2 2 2

3 3 3 3 3 3 3

4 4 4 4 4 4 4

5 5 5 5 5 5 5

1

2

3

4

5

Q: 34 Q: 35 Q: 36 Q: 37 Q: 38 Q: 39 Q: 40 Q: 41 Q: 42 Q: 43

1 1 1 1 1 1 1 1 1 1

2 2 2 2 2 2 2 2 2 2

3 3 3 3 3 3 3 3 3 3

4 4 4 4 4 4 4 4 4 4

5 5 5 5 5 5 5 5 5 5

Full participation of all individuals More innovative solutions Better customer service Highly motivated employees Higher productivity More diverse opinions in decision making Higher morale More satisfied employees Less internal conflict Lower turnover

Do you have additional comments or recommendations? _________________________________________________________________________________ _________________________________________________________________________________ _________________________________ Thank you very much for your assistance. If you have question or need clarification about the survey, please contact me at [email protected]/cell : 0321-6619535.

39

References Adler, N.J. (1986), ``Cultural synergy: managing the impact of cultural diversity'', The 1986 Annual: Developing Human Resources, pp. 229-38. Anthony, W.P., Perrewe, P.L. and Kacmar, R.M. (1999), Human Resource Management: A Strategic Approach, The Dryden Press, Fort Worth, TX. Armstrong, M. and Murlis, H. (1994), Reward Management: A Handbook of Remuneration Strategy and Practice, Kogan Page, London. Australian Bureau of Statistics (1990-1994), The Labour Force Australia, Cat. No. 6203.0, AGPS, Canberra. Cabezas, A. and Kawaguchi, G. (1988), ``Empirical evidence for continuing Asian American income inequality: the human capital model and labor market segmentation'', in Okihiro G.Y., Hune S., Hansen A.A. and Liu J.M. (Eds), Reflections on Shattered Windows: Promises and Prospects for Asian American Studies, Washington State University Press, Pullman. Castles, S. and Miller, M.J. (1993), The Age of Migration: International Population Movements in the Modern World, Macmillan, England. Caudron, S. (1990), ``Monsanto responds to diversity'', Personnel Journal, Vol. 41, pp. 72-80. Council for Equal Opportunity (1990), Managing Diversity, Book 8, Globe Press, Melbourne. Cornelius, N. (1999), Human Resource Management: A Managerial Perspective, Thomson Business Press, Cornwall. Cox, T.H. and Blake, S. (1991), ``Managing cultural diversity: implications for organizational competitiveness'', Academy of Management Executive, Vol. 5 No. 3, pp. 45-56. Cronbach, L.J. (1951), ``Coefficient alpha and the internal structure of tests'', Psychometrica, Vol. 16, pp. 297-334 Dagher, J., D'Netto, B. and Sohal, A.S. (1998), ``Managing workforce diversity in the Australian manufacturing industry'', Journal of Human Factors and Ergonomics in Manufacturing, Vol. 8 No. 2, pp. 1-15. Deluca, J.M. and McDowell, R.N. (1992), ``Managing diversity: a strategic `grassroots' approach'', in Jackson, S.E. (Ed.), Diversity in the Workplace: Human Resources Initiatives, Society for Industrial and Organisational Psychology ± The Professional Practice Series, Guildford Press, New York, NY. Denton, W. (1992), ``Workforce 2000'', Credit World, Vol. 81 No. 1, pp. 14-18. Deresky, H. (1994), International Management: Managing Across Borders and Cultures, Harper Collins College Publishers, New York, NY. D'Netto, B. (1994), ``Information processing and reward perception accuracy'', Doctoral Dissertation, State University of New York at Buffalo, Buffalo, NY. 40

Elmuti, D. (1993), ``Managing diversity in the workplace: an immense challenge for both managers and workers'', Industrial Management, Vol. 35 No. 4, p. 19. Fernandez, J. (1991), Managing a Diverse Workforce, Lexington Books, New York, NY. Fernandez, J.P. (1993), The Diversity Advantage, Lexington Books, New York, NY. Fulkerson, J.R. and Schuler, R.S. (1992), ``Managing worldwide diversity at Pepsi-Cola International'', in Jackson S.E. (Ed.), Diversity in the Workplace: Human Resources Initiatives, Society for Industrial and Organisational Psychology ± The Professional Practice Series, Guildford Press, New York, NY. Gerhart, B. and Rynes, S. (1991), ``Determinants and consequences of salary negotiations by male and female MBA graduates'', Journal of Applied Psychology, Vol. 76, pp. 256-62. Goldin, C. (1990), Understanding the Gender Gap: An Economic History of American Women, Oxford University Press, New York, NY. Grace, P. (1994), ``Danger-diversity training ahead: addressing the myths of diversity training and offering alternatives'', The 1994 Annual: Developing Human Resources, pp. 189-99. Hall, D.T. and Parker, A.P. (1993), ``The role of workplace flexibility in managing diversity'', Organisational Dynamics, Summer, Vol. 22 No. 1, pp. 5-18. Hayles, R. and Mendez, R.A. (1997), The Diversity Directive, McGraw-Hill, New York, NY. Industry Task Force on Leadership and Management Skills (1995), Report, (David S. Karpin, Chairman), AGPS, Canberra. Jackson, B.W., LaFasto, F., Schultz, H.G. and Kelly, D. (1992), ``Diversity'', Human Resource Management, Spring/Summer, Vol. 31 Nos 1 and 2, pp. 21-34. Jackson, S.E., May, K.E. and Whitney, K. (1995), ``Understanding the dynamics of diversity in decision-making teams'', in Guzzo, R. Salas, E. and Associates (Eds), Team Effectiveness in Decision Making in Organizations, Jossey-Bass, San Francisco, CA, pp. 204-61. Jenner, L. (1994), ``Diversity management: what does it mean?'', Industrial Management, Vol. 36, No. 1, p. 11. Kandola, R. and Fullerton, J. (1994), Managing the Mosaic, Institute of Personnel and Development, London. Kogod, S.K. (1992), ``Managing diversity in the workplace'', The 1992 Annual: Developing Human Resources, pp. 241-9. Loden, M. and Rosener, J.B. (1991), Workforce America! Managing Employee Diversity as a Vital Resource, Business One Irwin, Homewood, IL. Loveman, G.W. and Gabarro, J.J. (1991), ``The managerial implications of changing workforce demographics: a scoping study'', Human Resource Management, Spring, Vol. 30 No. 1, pp. 7-29 Lowery, C.M., Petty, M.M. and Thompson, J.W. (1996), ``Assessing the merit of merit pay: employee reactions to performance based pay'', Human Resource Planning, Vol. 19 No. 1, pp. 26-37. 41

Manning, G., Curtis, K. and McMillen, S. (1996), ``Building community: the human side of work'', Thomson Executive Press, Cincinnati, OH. Morrison, A.M. (1992), The New Leaders: Guidelines on Leadership Diversity in America, Jossey-Bass Publishers, San Francisco, CA. Nankervis, A.R., Compton, R.L. and McCarthy, T.E. (1999), Strategic Human Resource Management, Thomas Nelson, Melbourne. Newman, J.M. and Krzystofiak, F.J. (1990), ``The importance of reward sources: who pays the piper?'', unpublished working paper, Jacobs Management Center, State University of New York at Buffalo, Buffalo, New York, NY. Nunnally, J.C. (1978), Psychometric Theory, 2nd ed., McGraw-Hill, New York, NY. Office of Multicultural Affairs, (1989), Report on Best Practice in Managing a Culturally Diverse Workplace, AGPS, Canberra. Powell, G.N. and Butterfield, D.A. (1994), ``Race, gender and the glass ceiling: an empirical study of actual promotions to top management'', paper presented at he annual meeting of the Academy of Management, Dallas, TX. Robinson, R.K., McClure, G. and Terpstra, D.E. (1994), ``Diversity in the 90s: avoid conflict with EEO laws'', Human Resource Focus, Vol. 71 No. 1, p. 9. Rosen, B. and Lovelace, K. (1991), ``Piecing together the diversity puzzle'', HRMagazine, Vol. 36, No. 9, pp. 78-84. Schreiber, C.T., Price, K.F. and Morrison, A. (1993), ``Workplace diversity and the glass ceiling: practices, barriers, possibilities'', Human Resource Planning, Vol. 16 No. 2, pp. 51-69. Schuler, R.S., Dowling, P.J., Smart, J.P. and Huber, V.L. (1992), Human Resource Management in Australia, 2nd ed., Harper Educational Publishers, Sydney. Sessa, V.I. (1992), ``Managing diversity at the Xerox corporation: balanced workforce goals and caucas groups'', in Jackson S.E. (Ed.), Diversity in the Workplace: Human Resources Initiatives, Society for Industrial and Organisational Psychology ± The Professional Practice Series, Guildford Press, New York, NY. Shaw, J.B. and Barrett-Power, E. (1998), ``The effects of diversity on small work group processes and performance'', Human Relations, Vol. 51 No. 10, pp. 1307-25. Stewart, A. (1986), ``Performance appraisal'', in Mumford A. (Ed.), Handbook of Management Development, 2nd ed, Gower Publishing Company, Aldershot. Thomas, R.R. (1994), ``From affirmative action to affirming diversity'', in Thomas, R.R. (Ed.), Differences that Work: Organisational Excellence through Diversity, A Harvard Business Review Book, HBS, Boston, MA. Thomas, R.R. and Gregory, T.A. (1994), ``A diversity perspective on the language challenge'', Employment Relations Today, Vol. 20 No. 4, pp. 363-76. Torres, C. and Bruxelles, M. (1992), ``Capitalizing on global diversity'', HRMagazine, pp. 30-33. US Department of Labour (1991), A Report on the Glass Ceiling Initiative, US Department of Labour, Washington, DC 42