The Success Story Of Bharti Airtel: A Case Study

PV Vyshnavi PV Vyshnavi
Oct 23, 2020 7 min read
The Success Story Of Bharti Airtel: A Case Study

Bharti Airtel is a public limited company commonly known as Airtel. It is an Indian telecom company which is currently operating its business across south Asia, Africa and Channel Islands, it is also into the GSM providing business in all the countries including 2G and 3G services. Due to its operations in 19 countries, now Airtel is the 5th largest telecom operator in the world with over 207.8 million subscribers at the end of 2010.

It is the largest cellular service provider in India with over 152 million subscribers behind China Unicom, Airtel is the largest operator by subscriber base. Bharti Airtel rose as a successful private India telecom company and became fifth telecom operator in the world with over 243,336 million customers across 23 countries, as of 2012. Airtel is now the third largest in country mobile operator by subscriber base that provides broadband and subscription television services.

It also acts as a carrier for national and international long distances communication services. The company has submarine cable landing station at Chennai which connects the submarine cable between Chennai and Singapore. Some of the other services provided by Airtel is the Airtel Money (commerce platform in collaboration with Infosys).

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A Brief History of Bharti Airtel

Airtel first came to India in order to promote push button telephones. By the early 1990s, Airtel launched the countries first fax machine and its first cordless telephone. In 1992 Airtel won a bid to build a cellular phone network in Delhi. In 1996, cellular service extended to Himachal Pradesh. In 1999 the Bharti Enterprise went on to acquire control of JT holdings and extended cellular operations to Karnataka and Andhra Pradesh. However, in 2000 Bharti acquired the control over Skycell communications in Chennai.

In 2001, the company acquired control of the Spice cell n Kolkata. The company then got listed on the Bombay Stock Exchange and National Stock Exchange. In 2003 the cellular phone operations were rebranded under the single brand of Airtel. Airtel then acquired control over Hexcom and entered Rajasthan in 2005. It then extended its network to all across India in 2005 and launched its first international mobile network in Sri Lanka.

The success story of Bharti Airtel

Emerging Market Champion

On 13thFebruary 2008, Bharti Airtel Limited, the leading telecommunication company in India, crossed the 60 million customer mark. The wireless segment constituted 96% of BAL total customer base. The valuation of BAL then, stood at US $40 billion as of 2008. BA which was the fastest in the world and added 8 million customer in 2008. This puts Bharti Airtel among the top telecom companies in the world. Our next target is to reach 100 million mark by 2010.

HR policies of the Organization

Airtel strives to align its HR strategies with its corporate strategy. The HR team makes sure to see if the organization teams have the same attitude that would help employees realize the vision of the company. The company emphasis on recruiting young people with an average age of 26 years. This is done because the company wants to bring in young entrants and would them as per the business organization and at the same time, enhance their interaction and creativity.

Senior management was advised by the HR management as they are encouraged to put forward their views openly their views openly in order, to play more proactive role in team building efforts. This was further augmented by a reward and recognition system along with a strong training program. As a part of the planning process, the entire organization is measured on five performance parameters: Profitability, market share, customer satisfaction and employee satisfaction.

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Service Rule and Regulation

In Airtel, you are an at will employee, this mean you are working at your own will without any force or pressure before you join the company. You must sign terms and condition agreement that will state corporate governance of the company which are:

  • Employees must report to their superior and maintain disciplinary work.
  • All employees will be paid monthly by cheque's  procedure.
  • In case of leave employees must draft a detailed application mentioning the reason for leave.
  • Lunch break of 1 Hour will be provided.
Telecommunications Market shares by revenue as of 2012
Telecommunications Market shares by revenue as of 2012

Promotion policy and wage structure

A policy under which employee gets promotion in the organization which is a reward for excellent performance. The employee must have successfully completed 6 months to be eligible for promotion in Airtel. Internal application process is carried out and previous records are checked and the performance is analyzed.

The internal relationship between different jobs and wages helps the firm to decide its wage structure. 60% of its employees have a variable pay structure where they get paid according to the work done. The company considers factors such as performances and maintains internal equity to ensure people at the same people at same level are paid for the same amount of work.

Training and Development of Employees

Vast pool of human resources time to time upgraded in terms of leadership and technical skills through various outsourced and in house training and development activities such as process and project management skills and technical skills. By providing world class resources and combined efforts by Airtel many employees are being trained to become future leaders. The company HR is continuously working on launching various initiatives like on job training, programmed learning, simulated development and computed based training.

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Airtel Hiring Process

Application – In Airtel existing opening are monitored and accordingly position procedure are being carried out matching candidates profile and area of interest.

Screening – Matching of the profile is done by the company with respect to its requirements and needs.

Assessment – An aptitude test is required for the job of the front line sales. For considering the middle and senior level job occupational personality questionnaire done.

Interview – Airtel takes 1 to 3 rounds of interview process. Then the final appointment letter is being offered with company’s terms & condition memo, that every employee must sign.

Incentives and Benefits of Airtel

Airtel has an incentive pay schemes managers often use two terms synonymously incentive plan for the employees that is applicable to sales over the target achieved. Merit pay as in incentives is generally done by the company for excellent performance by employee in last term of his/her employment. The other non-monetary incentives which includes: Employee recognition, Gift certificate, Special events, merchandise incentives, free training programs.

When it comes to the Benefits, they are indirect financial and non financial payments employees receive for continuing their employment. They include things like health and life insurance pensions, time off with pay and child care assistance.  The company also provides Life and Health insurance for family and dependents. Different types of leaves like study leave, extraordinary leave, petrol allowance, and family holidays.

Methodologies that are adopted by Airtel

On job training is where a person learn a job actually doing it. Every employee from mailroom to clerk to CEO gets a job training when they join the company. Informal learning is used as 80% of the employees learn on the job they learn not through informal training, including performing their jobs on a daily basis in collaborations with their colleagues.

The company provides Job instruction training program that takes place every month in Airtel in which logical sequence of steps are the best taught step by step. On quarterly basis programmed learning is followed by Airtel in which self-learning methods that consist of Presenting questions, facts, or problems to learner and allowing the person to respond.

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Bharti Airtel is currently doing incredibly well in recent times it is expected with same quality services and has the prospective to overtake China’s Unicom in few years making Airtel one of the world leaders when it comes to being a world leader in telecommunication. This is possibly because of the company’s expansion in African and Asian countries making it a global company.  Airtel also has good relations with its business partners like Ericsson, Siemens and IBM.

The company has strong HR policies that help in maintaining its corporate governance structure. The profit and assets are also increasing at a considerably good rate making it turnout cross 3.09 billion. Good customer schemes and support services that makes Airtel to capture the competitor market.

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