Ptcl Internship Report by M.siraJ 2011

8/3/2019 Ptcl Internship Report by M.siraJ 2011

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CHAPTER NO. 01

INTRODUCTION OF PTCL


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PAKISTAN TELECOMMUNICATION COMPANY LIMITED

1. INTRODUCTION

11 years into a new century, the telecom sector of world finds itself at

crossroads after changing itself almost beyond recognition over the last 25 years.

Privatization and competition are the order of the day, with a majority of countries

having adopted these policies to advance their telecom sector.

The results have been impressive; the industry has grown at unprecedented pace.

Although here has been a phenomenal growth in Pakistan, especially in the cellular

mobile communication and in the internet, yet the late density remains almost

stagnant. So far PTCL is the sole land line service provider of Pakistan. PTCL is the

giant of Pakistan telecommunication industry and enjoying the monopoly.

1.1 CENT RAL BACKGROUND

The telecommunications industry is at the forefront of the information

agedelivering voice, data, graphics and video at ever increasing speeds and in an

increasing number of ways. Whereas wire line telephone communication was once

the primary service of the industr y, wireless communication services and cable

and satellite program distr ibution make up an increasing shar e of the industry.

The largest sector of the telecommunications industry continues to be made up

of wired telecommunications carriers. Establishments in this sector mainly provide

telephone service via wires and cables that connect customers premises to

central offices maintained by telecomm ur inations companies. The central offices

contain switching equipment that routes 1 content to its final destination or to

another switching center that determines the most efficient route for the content to

take. While voice used to be the main type of data transmitted over the wires, wired

telecommunications service now includes the transmission of all types of graphic,


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video, and electronic data mainly over the Inter net.

These new services have been made possible through the use of digital technologies

that provide much more efficient use of the telecommunications networks. One major

technology breaks digital signals into packets dur ing tr ansmission. Networks of

computerized switching equipment, called packet switched networks, route the

packets. Packets may take separate paths to their destination and may share the paths

with packets from other users. At the estination, the packets are reassembled, and the

tr ansmission is complete. Because packet switching considers alternate routes, and

allows multiple transmissions to shar e the same route, it results in a more efficient

use of telecommunications capacity as packets are routed along less congested routes.

Wireless telecommunications carr iers, many of which are subsidiaries of the

wired car riers, transmit voice, graphics, data, and I nternet access through the

transmission of signals over networks of radio towers. The signal is transmitted

through an antenna into the wire line network. Other wireless ser vices include

beeper and paging services. Because wireless devices requir e no wire line

connection, they are popular with customers who need to communicate as they travel,

residents of areas with inadequate wire line service, and those who simply desire the

convenience of portable communications. Increasing numbers of consumers are

choosing to replace their home landlines with wireless phones.

Wireless telecommunications carriers are deploying several new technologies to allow

faster data transmission and better Internet access that should make them

competitive with wire line carriers. One technology is called third generation (3G)

wir eless access. With this technology, wireless carriers plan to sell music, videos, and

other exclusive content that can be downloaded and played on phones designed for 3G

technologies. Wireless carriers are developing the next generation of technologies


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that will surpass 3G with even faster data transmission. Another technology is

called fixed wireless service, which involves connecting the telephone and/or

Internet wiring system in a home or business to an antenna, instead of a

telephone line. The replacement of landlines with cellular service has become

increasingly common because advances in wireless systems have provided data

transmission speeds comparable to broadband landline systems.

1.2 COMPANY BACKGROUND

Pakistan has made steady pr ogress in expanding telecommunication networ ks

and services in recent years. In Pakistan this industr y had few big giants in the past

with PTCL being the sole provider of landline telephone service in the country.

At present the organizations principal activity is to provide telecommunication

services all over the country. It offers both domestic and international services

throughout Pakistan. PTCL also manufactures telecommunication related equipment.

Pakistan Telecommunication Company Limited had exclusive rights to provide

basic telecom services in Pakistan till the end of year 2002. With the announcement of

Deregulation Policy by the Government of Pakistan in 2003, PTA has issued licenses

for basic telephony to the private sector in Pakistan who will be competing PTCL, the

incumbent. From the humble beginnings of Posts & Telegraph Depar tment in 1947

and establishment of Pakistan Telephone & Telegr aph Department in 1962, to this

very day, ours is a story of commitment and vision.

PTC set sails for its voyage of glor y in December 1990, taking over operations and

functions from Pakistan Telephone and Telegraph Department under Pakistan

Telecommunication Corporation Act 1991. This coincided with the Government's

competitive policy, encouraging private sector participation and resulting in award

of licenses for cellular, card-operated payphones, paging and, lately, data


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communication ser vices. Pursuing a progressive policy, the Government in 1991,

announced its plans to privatize PTC, and in 1994 issued six million voucher s

exchangeable into 600 million shares of the would-be PTCL in two separate

placements. Each had a par value of Rs. 10 per share. These vouchers were converted

into PTCL shares in mid- 1996.

In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for

PTCL monopoly over basic telephony in the countr y. It also paved the way for the

establishment of an independent regulatory regime. The pr ovisions of the Or

dinance were lent permanence in October 1996 through Pakistan

Telecommunication (Reorganization) Act. The same year, Pakistan

Telecommunication Company Limited was for med and listed on all stock exchanges

of Pakistan Since then, PTCL has been working vigor ously to meet the dual

challenge of telecom development and socio-economic uplift of the country. This

is characterized by a clearer appreciation of ongoing telecom scenar io wherein

conver gence of technologies continuously changes the shape of the sector. A

measure of this understanding is progressive measures such as establishment of the

company's mobile and Internet subsidiar ies in 1998.

As telecommunication monopolies head towards an imminent end, services and

infrastructure provider s are set to face even bigger challenges. Pakistan also entered

post-monopoly era with deregulation of the sector in January 2003. On the

Government level, a comprehensive liberalization policy for telecom sector is in the

offing. PTCL is in full awareness of the same, and future policies feature a strong

conviction of healthy competition.

The company is in process of enhancing organizational and business proficiency


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through vertical integration and horizontal diversification. At the same time, cross-

national ownerships, operations and partnerships are being evaluated with a view to

developing and diver sifying the business.

1.2.1 VISION

To be the leading ICT ser vices provider in the r egion by achieving customers

satisfaction and maximizing shareholders value.

1.2.2 MISSION

An organizational environment that fosters professionalism, motivation and

quality

An environment that is cost effective and quality conscious

Services that are based on the most optimum technology

Quality and Time conscious customer service

Sustained gr owth in ear nings and profitability

1.2.3 CORE VALUES

Professional Integrity

Customer Satisfaction

Teamwork

Company Loyalty

1.3 DEREGULATION POLICY

Telecommunication de-regulation policy (Policy) has been prepared in line with

Governments objective to de-regulate and liberalize various sectors of the economy.

The Policy applies to opening up of the fixed-line telecommunication sector. The

exclusive rights of Pakistan Telecommunication Company Limited (PTCL) to

provide basic telephone services (local, long distance, international and leased line

services), which it enjoyed under The Pakistan Telecommunication (Re-


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Organization) Act 1996 (Telecom Act 1996), have expired since 31 December 2002.

1.4 RESTRUCTURING OF PTCL

The governments efforts to restructure and pr ivatize PTCL have been on-again off-

again since 1991. It had an offer in the late 1990s for 26 percent equity, reputedly

totaling $3 billion, but held out in negotiations and ultimately missed the unique

global market window at that time. Since then, it has had dif ficulty attracting

potential buyers. Investors have been concerned about political r isk, and appropriate

support from the government to transform the utility into a commer cially-or iented

corporation. With fortunes rising in the local telecom sector, the government hoped to

make privatization of the company a landmark deal for broader reform of the

economy. A successful deal would demonstrate the governments increasing

support for market capitalism and, it was hoped to, boost anemic levels of

direct foreign investment.

PTCL and the government were contemplating different strategic options for

restructuring. Plans were vetted for both a geographic and functional split of

operations. Analysts believed the most likely scenar io is a break- up into three new

companies, tracking with the firms largest business units: local, long distance and

mobile. This approach mirrors the policy environment fashioned for new competitive

entrants. Fr om the government perspective, breaking up PTCL prior to a sell-off will

help curtail the market power of any one single service provider, thereby stimulating

competition.

Unbundling the sale was also likely to increase revenues for the government. The risk,

of course, was that the mobile company, PTML (branded as Ufone) was

disproportionately more attractive than the other businesses. According to AKD

Securities, PTMLs contribution to PTCL's total revenues was expected to rise to


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12.5% over the next five years and was assumed to contribute 39% of PTCL overall

revenue growth. Future growth of mobile, both in ter ms of subscr ibers and net

revenues, was considered to almost certainly outstrip demand for fixed line services.

The target was to sell up to a 26 percent stake in PTCL; the government held 88

percent of shares. Some estimates placed the value of the trance at around $1 billion.

PTCLs net profit for the year ending June 2003 was 23 billion rupees ($400 million).

The new buyer would gain management control.

Splitting up PTCL could take at least two year s or longer, complicating hopes

for a quick disposal. Leading international investors that publicly stated their

interest in the sale include Singapore Telecommunications Ltd., Egypts Orascom

Telecom Holding, Saudi firm Oger and the Menara Telecom consortium. Unsolicited

offers were reportedly made the planning process a moving target. The eventual new

owner(s) greatest challenge was considered to be organizational. PTCL needed a

fundamental shake-up of its corporate culture, and a massive reduction in staff.

1.5 PRIVATIZATION OF PTCL

PTCL was sold to Etisalat at a loss of $394 million with the share pr ice reduced from

the original bid of $1.96 per share to $1.66, according to a report. The or iginal bid

offered in June 2005 by Etisalat priced PTCL at $ 2.599 billion while the revised bid

approved by the cabinet in March 2006 valued the company at $2.205 billion.

However, the government denied giving any concessions to Etisalat. Officials aid the

price of 26 percent PTCL shares remained the same i.e. $2.6 billion, and then any

lowering of bid price in the revised agreement approved by the cabinet in March. The

official documents state that the accumulated bidding price in the revised bid

came down to $2.205 billion against the original Etisalat bid of $2.599 billion, said a

report in the Gulf Today.


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The PTCL privatization agreement with Etisalat allegedly inflicted a further loss of

billions of rupees to the national exchequer besides unpr ecedented concessions

offered in the long ter m, in direct conflict with Article 30 of the Public Procurement

Rules 2004, it said. By far, the PTCL has been the highest profit earning state-owned

company with real-estate assets worth billions of rupees across the country including

commercial plazas, residential colonies and exchanges.

According to the gover nment documents, the Share Purchase Agr eement (SPA)

of the PTCL with Etisalat lapsed in September 2005 after the non-payment of the

dues by the winner bidders. After further negotiations with the Etisalat

management, the government agreed to offer additional concessions and

modifications to the transaction structure.


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CHAPTER NO. 02

OVERVIEW OF THE

ORGANIZATION

2) OVERVIEW OF THE ORGANIZATION

2.1 BRIEF HISTORY


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Over the years, technology has changed the concept of communication and what was

thought to be a fictional only a decade ago, has actually made its way through to our

hands today. This is the future we dreamt of so fondly. Welcome to the modern age,

of telecommunication, which have become complementary to our lives. But there

must also be an anchor to introduce, allow, improve and channelize all these services

and innovations sweeping through the globe. In Pakistan same anchor is Pakistan

Telecommunication Company Limited from the humble beginnings of posts

&Telegraph Department in 1947 and establishment of Pakistan Telephone &

Telegraph Department in 1962, to this very day, PTCL is a story of commitment and

vision. Pakistan Telecommunication Corporation (PTC) set sails for its voyage of

glory In December 1990, taking over operations and functions from Pakistan

Telephone and Telegraph Department under Pakistan Telecommunication

Corporation Act 1991. This coincided with the Governments competitive Policy,

encouraging Private Sector participation and resulting in award of licenses for

Cellular, card-operated payphones, paging and, lately, data communication Services.

Pursuing a progressive policy, the Government in 1991, announced its Plans to

privatize PTCL, and in 1994 issued six million vouchers exchangeable into 600

million shares of the would-be PTCL in two separate placements. Each had a par

value of Rs.10 per share. These vouchers were converted into PTCL Shares in mid

1996.In 1995, Pakistan Telecommunication (Reorganization) Ordinance Formed the

basis for PTCL monopoly over basic telephony in the country. It also paved the way

for the establishment of an independent regulatory regime. The Provisions of the

Ordinance were lent permanence in October 1996 through Pakistan

Telecommunication (Reorganization) Act. The same year, Pakistan

Telecommunication Company Limited was formed and listed on all stock Exchanges


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in Pakistan. Since then, PTCL has been working vigorously to meet the dual

Challenge of telecom development and socio-economic uplift of the country. This is

Characterized by a clearer appreciation of ongoing telecom scenario where in

convergence of technologies continuously changes the shape of the Sector. A measure

of this understanding is progressive measures such as Establishment of the companys

mobile and Internet subsidiaries (U-fone & Paknet) in 1998.As telecommunication

monopolies head towards and imminent end, services and infrastructure providers are

set to face even bigger challenges. Pakistan also entered post-monopoly era with

deregulation of the sector in January 2003. On the Government level, a

comprehensive liberalization policy for telecom sector has already been announced

now. Now PTA have issued License to two new telecom companies in Pakistan

TELENOR international and WARID TEL this act will put some challenges for

PTCL to cope with.

PTCL is in process of enhancing organizational and business Proficiency through

vertical integration and horizontal diversification. At the same time, cross-national

ownerships, operations and partnerships are being evaluated with a view to

developing and diversifying the business.

2.2 NATURE OF THE ORGANIZATION

Pakistan Telecommunication Company Limited (PTCL) was incorporated

in Pakistan on December 31, 1995 and is listed on

Karachi, Lahore and Islamabad stock exchanges. It was established to undertake the

telecommunication business firmly carried on by Pakistan Telecommunication

Corporation (PTC). The business was transferred to the company on January 1, 1996

under the Pakistan Telecommunication (Reorganization) Act, 1996 at which date

PTCL took over all the properties, rights, assets, obligations and liabilities of PTC


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except those transferred to National Telecommunication Corporation (NTC),

Frequency Allocation Board (FAB), Pakistan Telecommunication Authority (PTA)

and Pakistan Telecommunication Employees Trust (PTET). Pakistan

Telecommunication Company Limited (PTCL) is the main provider of

Telecommunication services in Pakistan. It owns and operates a substantial part of the

telecommunication facilities and provides domestic and international telephone

services and other communication facilities throughout Pakistan.

2.3 BUSINESS VOLUME

Fixed line connections in the country are more than 5.4 million and the cellular

connections are 12.7 millions currently there are 315 Payphone and over 51,000

Wireless Payphones There are over 140 Data and Internet service providers (ISP's) to

whom PTCL has provided network infrastructure. PTCL generated annual Revenue of

over Rs. 11 billion from its private sector operating partners.

The PTCL's performance against a key set of parameters is summarized as:

PARAMETERS VALUE

Revenue Rs. Billion 55.254

Profit After Tax Rs. Billion 8.4

Earnings Per Share Rs. 1.65

Capital Expenditure Rs. Billion 13.128

2.4 NO OF EMPLOYEES

President & Company Secretary 02

Senior Executive Vice President 07


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Executive Vice President 22

Chief Engineers 26

General Managers 94

AGM, DY. GM, Director, System Analysts, Dy. Managers, RTO,

CS, SE, DE, SAO, DM, SRO etc 2500

ADE, AE, SDO, AO, SL, Lect etc 20,000

ES, Assistant. PA, Tech, LM. UDC, KPO,Khakroob, Mali, HC, etc 47,000 (almost)

Total Employees

Note: This figure includes all permanents, contract bases and also

appointed under new terms and conditions during the year 2005.

70,000

(almost)

Source: Ptcl Annual Report 2009-10

2.5 SERVICES OF PTCL

Pakistan Telecommunication Company Limited not only Provides Conventional

telephone facilities, it al so offers optical fiber services to the private sector. We will

briefly discuss below the product lines being offered by the PTCL. Basically PTCL

divide their services into two parts.

2.5.1 Services for consumers

2.5.1 SERVICES FOR CONSUMERS

These services are basically for the common users (Individual/home users) those use

telephone in their home/work place and they are basically non business users.

a) New Telephone Connections

As mentioned earlier, PTCL is presently the only telecom company, who provided

fixed-line telephony in the country. So whenever, any Private business concern or any

individual needs a new telephone connection for provision of telephone service.

b) Value Added Services


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CLI (Callers Line Identification)

Caller Line Identification (CLI): Calling line Identification (CLI) allow customers to

identify the caller before picking up the phone receiver. To subscribe to CLI services,

a customer needs a telephone set with display capability or a CLI device attached to

the phone.

Advantages

Check on obnoxious calls.

Complete Record of incoming / outgoing calls with time & date.

User Friendly

PREPAID CALLING CARDS

PTCL calling card is the most popular choice of millions of customers all over the

country. It is now available with balance transfer facility and follow on call facility.

Comes in easily affordable denominations of Rs. 100, 250, 500, 1000 and

2000.

Easily available throughout the country

Easy to use from any PTCL digital phone (Dial 1010)

Fast and easy, nationwide and international access

No line rent and no Phone bills

24 hours customer services through toll free number (0800-80800)

How to use it

Scratch off the security coating on the indicated strip to get your card Pin

Number.

Dial PTCLs toll free number 1010 from any digital phone.


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Dial 1 for Urdu & 2 for English Instructions; enter your card Number & Press

#.

For International Call Dial 00+CountryCode+CityCode+PhoneNumber+#.

E-BILL PAYMENT

Billing system is a part of customer services so providing connivance to its valuable

customers PTCL launched a new billing service which is available through PTCL

Calling Card This is another service from PTCL. This service is basically providing

billing solutions for the users.

How to use it

The basic concept of the service is to provide billing solution to PTCL customer. The

same PTCL Calling cards are used for this purpose. Through these cards customer can

pay his bill on phone. No additional charges for bill payment transaction.

Advantages

Customer can save his time by paying his bill on phone

Customer can pay his bill whenever he wants

DIGITAL FACILITIES

PTCL offers a variety of features to digital exchange customers like:-

Hotline

Abbreviated Dialing.

Call Waiting

Dont Disturb

Call Transfer on (a) Busy (b) No Reply (c) Immediate

Wake up call

Absent Subscriber


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Code Barring

Prepayment Telephony Services (PPT)

With the changing trends most telecoms are diversifying their services towards

Prepaid solutions .one of such modern era telecommunication service is Prepayment

Tel e Phone (PPT).It provides the facility to subscriber to load a prepayment

Telephony card against their telephone number thereby generating an account on I/N

platform and any call made from that telephone will be charged to this account. The

service will provide state of art technological facilities to the subscribers.

Target market

Target market for the service can be segmented as follow:

Budget conscious subscriber

Subscriber avoiding bill-depositing hassles

People requiring casual connections (on short term bases)

Subscriber not meeting documentation requirement

Students living in hostel s

Defaulters

Features

Account number recharging

Outgoing call pin setting

Cancel out going call pin

Balance query

Follow on call

Low balance prompt

Balance shortage warning


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Call duration prompt

Call cost prompt

Universal Access Number (UAN)

UAN (Universal Access Number) service is ideal for organizations Engaged in

marketing of products or services. Here is a list of business who can avail UAN

Service.

Banks

Insurance

Newspapers

Credit Card Companies

Airlines

Travel

Hotels

Courier Services

Shipping Lines

Utility Services

Fast Food Outlets

Trading Companies

Consumer

Stock Brokers

Voice Messaging Service (VMS)

With PTCL Messaging Service, you can have all for (or Desired) calls recorded when

you are absent, busy on phone or do not want to attend the calls for any reason. You


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can, later on at your convenience, retrieve all recorded messages from any telephone

anywhere in the country.

Security of message is ensured against eavesdropping through subscriber

controlled password.

PTCL VMS is designed for those who do not want to miss a call or Fax

because that can be beneficial.

Great for anyone owning a telephone or Fax, at home or business.

Much more powerful and flexible than answering machine due to Message

options available in your voice mail system.

Features

Call answer

Fax

Messaging

Notification

Capacity 10 messages

Free for user paying RS. 2000/- or more bill/month.

PTCL Messaging Plus

PTCL MESSAGING PLUS is designed for small and medium business enterprises

having problems with managing telephone message. PTCL MESSAGING PLUS

will definitely handle these problems for you. Advanced messaging features save

time, make you truly mobile and increase productivity. Essential for time-conscious

executives, frequent travelers and professional groups.

Features

Call answer


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Co- Location Centers

Pakistan Telecommunication Company has taken land mark decision to establish co

Location centers throughout the country.

Service concept

This service is basically for telecom data and I.T companies. These companies will

install their equipment directly in PTCL premises in ready fitted environment. The

primary purpose is to provide a number of resilient and centralized connection and

control facilities in which co-location centers communication can be located.

Benefits

Easy access to local & international connectivity

Qui ck deployment of services

Minimum capital investment and cost saving

Higher reliability and quality of service

Full connectivity under one roof

Just plug in and start business

Target market

IT companies

Telecom data companies

Universal Internet Number (UIN) 131

UIN 131 numbering scheme for internet services providers, represent exclusive code

to each ISP.

Service concept

The concept of the service just like toll free 0800 but charges a local call for each

connectivity attempt, UIN involves allocation of numbers to individual ISPs who are

licensed by PTA.


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Functionality

The service functions under single meeting billing system, with promise of rich

dividends in terms of customer care.

Benefits

The benefit goes to the end users who happen to be any ISP customers.

Once subscribed, the service means timeless communication for your

customers, allowing them to pay for a single call irrespective of its duration.

Target market

ISPs

Virtual Private Network (VPN)

Communication is the secret of success in todays highly competitive market. When it

comes to enabling your enterprise, your communication got to be instant, fast and

hassle free. The answer to thi s corporate need i s virtual private net work.

Service concept

It is an innovative and intelligent private network to integrate

business/enterpriseshaving sub-offices with in a city or nation wide. Without

necessity installation of dedicated resources, VPN enables organization to create a

private network.

Digital Cross Connect (DXX)

Telecommunication networks are the most important infrastructure elements of any

business today. As the businesses increasingly depend on it, quality of networks is

gaining strategic importance.

Service concept

PTCL offers flexible and reliable data services solutions through a high quality

platform of digital leased line network. PTCL digital cross connect (DXX) network


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provides the most dependable media for WAN connectivity with more than 200 nodes

country wide.

Features

End to end digital connectivity on digital cross connect network

Country wide as well as global coverage

Flexible bandwidth to suit the requirement

Better quality of services

Target market

Corporate customer

Software exporters

Data network operators

Airlines/travel agencies

ISPs

Financial institutes

Courier services

ISDN BRI/PRI

It is a near broadband experience suitable for household and small/medium sized

organizations.

Features

Faster and clear voice

Fax and data communication on a single phone

PRI provides thirty 64 kbps user channel plus two 16 kbps signaling channel

BRI provides two 64 kbps user channel plus one 16 kbps signaling channel

Cost effective


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SUBSIDIARIES AND COMPETITORS)

As already mentioned, presently PTCL has to face war with major competitors in

mobile phone & WLL telephony operators, however, there are also competitors of its

following subsidiaries/products: -

SUBSIDIRAY/PRODUCT COMPETITOR

Multimedia & Broad Band (ISP Product) There is about 100 competitors of product

throughout the country to provide Internet service to the customers. However, some of

the major competitor ISPs of product are Cyber net, World online, Apollo, World

Call , and Comsats WOL etc.

U-fone (Cellular service provider) There are five competitors of U-fone in cellular

phone industry i .e. Mobilink, Instaphone and C.M Pak, Telenor, Waridtel .

PTCL Calling Cards (Product) Hello Cards, Call Point Cards, Call Mate Cards,

Global Telecom Cards.

Wireless Local Loop (V-Fone) Go CDMA, Wateen Telecom & World Call are the

Fixed Wireless Telephone competitors of V-PTCL.

BRIEF INTRODUCTION OF SUBSIDIARIES

U-FONE

Launched on January 29, 2001, Ufone is growing cellular operator in Pakistan. U-

fone services are offered to you by Pak Telecom mobile Ltd., which is a 100% owned

independent subsidiary of Pakistan Telecommunications Corporation Ltd.

U-fone has been a highly successful venture both in terms of subscriber uptake and

coverage. With fastest expanding coverage, unmatched product leadership, and

consistent focus on customers, Ufone has emerged to be the most prominent player

&has 2nd largest customer base in the market in the short span of its operations.


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Current Situation of U-fone Ufone has started Sal es in all the major cities of

Pakistan which include Karachi, bad, Multan, Sukkur, Gujrat, & Gujranwala

including 1500 other small towns across the country. New Connections are available

at all ufone centers and authorized dealers for just Rs. 50/ which includes Rs. 150/ of

airtime. U-fone is in process of starting the sales of connections in a large number of

other destinations across Pakistan. This expansion will also result in increase of U-

fone coverage in many additional cities and highways.

Total User Base of U-fone

U-fone is currently enjoying 20.53% user of Pakistan mobile industry. It means U-

fone has 17,800,424 subscribers.

Main Features

Both postpai d and prepai d Ufone subscribers can enjoy any/ all Ufone services

including MMS, Ufone Internet, Global SMS, and Pocket Stocks etc. In order to use

any of the GPRS based services just call 333 and activate your GPRS subscription.

Multi Media & Broad Band (Phone n Net)

Formerly Paknet Limited a fully owned Subsidiary of Pakistan Telecommunication

Company Limited (PTCL) is now merged in PTCL as Multimedia & Broad Band

Region. It was formed in March 1999 and started commercial operation in January

2000. It is now the biggest Internet Service Provider of the Country. Besides Internet

this region also provides data communication services like Clear Channel data links,

Frame Relay and Digital Circuits on Optical fiber cross connect systems etc.

PTCL was running its Internet Division through its region by the name of Public Data

Network (PDN). On December 1999 the PDN region was dissolved and all the assets

and Liabilities were transferred to Paknet Limited. Paknet made a fresh start with an

Internet customer base of 6000 as of January 2000 and successfully achieved the


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target of its first year business plan of 50,000 Internet customers. Now it became

Multi Media & Broad Band Region which currently has a customer base of more than

130,218 (Mar 31, 2008).

The Company commenced its business in January 2000 with a balance sheet size of

over US $ 7.0 million. Currently it has a revenue base of approximately US $ 5.0

million per annum and is most likely to double in the next fiscal year keeping in view

the market demand of Data products and expansion plans of the PTCL. In near future

PTCL i s introducing a new IPTV servi ce for its valued customers.

COMPETITOR OF PTCL

There is no meager competitor of PTCL in landline but with the growth of

telecommunication industry of Pakistan competition increasing specially in mobile

phone sector. In total there are more then 800 million subscribers of mobile phone.

There are 03 bi g players in mobile phone industry but 3 of them are the competitor of

PTCL:-

Mobilink

Telenor

Warid Tel

Other players in Land Line industry:

Operator NTC Brain Limited

World

Call

Union

Communication Naya Tel

Customers 103,059 7,376 11,347 3,500 13,500

MOBILINK


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Mobilink is a largest mobile phone company of Pakistan. Mobilink is currently

having more then 31,958,597 users base which is the 36% of total cellular

industry of Pakistan. Mobilink is basically competing Ufone which is subsidiaries

of PTCL.

TELENOR

Telenor is another cell phone company it have 17,841,074 subscribers which

is 20 % of total mobile industry.

WARID TEL

Waridtel is also providing cell phone facilities in Pakistan. Waridtel having

more then 15,114,678 subscribers which is 17% of Pakistan mobile industry.

NEW COMPETITORS

Other than mobile & land line PTCL is facing competition in F.W.T (Fixed

Wireless Telephone) product market. Below are the major competitors.

TELECARD 501,680 & WORL D CALL 468,335

CHAPTER NO. 03


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ORGANIZATION STRUCTURE

3) ORGANIZATION STRUCTURE

An Organizational Structure clarify the roles of personnel of an Organization and to

determine who has to do what task, which is responsible for what, objectives to be

achieved, who is to report to whom and to remove the obstacles for performance

caused by confusion and uncertainty of job assignment as well as to make easy

decision- making and communication networks reflecting and supporting organization

objectives.

The main purpose of PTCL is allowing them to effectively and efficiently accomplish

organizational goals and objectives. Designing an appropriate structure means that


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managers must decide how to coordinate work activities and efforts both vertically

and horizontally.

Organization structure of PTCL can be described as having three components like any

other organizations:

Complexity

Formalization

Centralization

COMPLEXITY

The term complexity refers to the amount of differentiation in an organization. The

more division of labor there is in an organization, the more vertical levels in the

hierarchy and more geographically dispersed the organization's units, the more

difficult (or complex) it is to coordinate people and their activities.

When we analysis the complexity of PTCL, there is big amount about 70,000

employees and hierarchy is as under:

PRESIDENT SEVP EVP GM/CE DIRECTORSE/MANAGER

etc ENGINEER/AE/SDO/AOES/ASSISTANT T.TECH/CABLE JOIN

TER LM/UDCNAIBQASID/FRASH etc.

This is a very large hierarchy, which creates problems for the organizational activities

and coordination's. The result is a slow correspondence between management and

officials at lower levels.The Etisalat (who control the charge of PTCL) is restructuring

the organization and the work is under process.


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FORMALIZATIONS

The degree to which an organization relies as rules and procedures to direct the

behavior of employees is formalization. The PTCL organization structure operates

with standardized guidelines, rules and regulations. Each officer/official knows

his/her responsibilities of what he has to do. Due to these strict rules and regulations

the PTCL organization's structure is more formalized.

CENTRALIZATION

The term centralization describes where the decision making authority is.

In PTCL, organization decision making is highly centralized at upper levels of

management. Problems flow up to senior executives, who decides what, should be

done.

In some cases, decentralized policy is used and decision making is delegated to lower

levels of management. Which is not correct and creates problems in the creation of

long term value aided strategies.


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3.1 MAIN OFFICES

The Head Office of Pakistan Telecommunication Company Limited is situated in

Sector G-8/4, Islamabad, which is headed by the President. Besides, it has Regional

Headquarters like:

Islamabad Telecom Region,

Rawalpindi Telecom Region,

Hazara Telecom Region Abottabad,

Northern Telecom Region-I Peshawar,

Lahore Telecom Region (South),

Lahore Telecom Region (North),

Multan Telecom Region,


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Faisalabad Telecom Region

Southern Telecom Region-I Hyderabad

Southern Telecom Region-II Karachi

Southern Telecom Region-V Sukkur

Western Telecom Region Quetta.

Switching network Central region Lahore.

These Regions provide Telecommunications services to the customers in their

respective areas. Apart from these, PTCL has an Optical Fibre Construction Region

Lahore and Optic Fiber System Islamabad, each headed by a General Manager to

install, operate and look after optic fiber systems/cables.

3.1.1 TYPES OF OFFICES

Chairman Corporate Headquarter, Block-E-, G-8/4, Islamabad

Director Commercial Accounts Nabha Road Lahore.

GM Offices in every Region.

SAO Offices.

Director Offices

Senior Engineer Offices.

Assistant Engineer/ AO Offices etc

3.2 COMMENTS ON ORGANIZATIONAL STRUCTURE

The head of Pakistan Telecommunication Company Limited is called President.

Then become the SEVPs (Senior Executive Vice Presidents), i.e. SEVP (Finance),

SEVP (Operations), SEVP (Technical), and SEVP (Human Resource Management),


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SEVP (Marketing & Business Development). Then there is a chain of Executive Vice

Presidents (EVPs) like EVP (Finance Central), EVP (Marketing), EVP (HR Central),

EVP (Accounts), EVP (Operation), EVP (Information Technology, Training &

Research), and EVP (Revenue). All these are appointed at Pakistan

Telecommunication Company, Headquarters at G-8/4, Islamabad. Apart from these

EVP, there are also EVP (Operation), EVP (HR) etc who are heading the other

regions of PTCL in major cities country wide. Then there are Chief Engineers and

General Managers at H/Qs who report to their relevant EVP. Then there are Senior

Managers, Deputy Directors, Assistant Directors, Account Officers, Assistant

Account Officers, Financial Analysts, Marketing Managers, Computer Programmers,

and IT Specialists etc.

There are also Regional Heads (General Managers) to head PTCL Regions then come

the Senior Managers (Operations), Senior Engineers (Operations), Engineers to look

after the telecom system of Regions. There are also Senior Managers Finance,

Account Officers and Accountants to Handle Regional account and billing matters.

Manager HR & his staff are responsible to take care of Personnel affairs at Regional

Level. In non-gazetted staff there are Engineering Supervisors Operations

/Switching /Power plant /Optical Fiber system/M.W Media, Account Assistants,

Stenographers, Assistants, Key Punch Operators, Telecom Technicians, Upper

Division Clerks, Lower Division Clerks, Line Men, Wire Men, Drivers, Exchange

Cleaners, Naib Qasids and Peons etc. All the staff is recruited by the HR Department

headed by SEVP HR. The HR experts are responsible for hiring & to further

streamline its recruitment process.


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CHAPTER NO. 04

STRUCTURE OF HR

DEPARTMENT

4. STRUCTURE OF HR DEPARTMENT


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Source: PTCL Annual Report 2009-10

4.1 STAFF ROLE OF THE HUMAN RESOURCE DEPARTMENT

The Human Resource department of the company operates in an auxiliary, advisory,

or facilitative relationship to other departments in the organization. Any staff unit,

whether it be personnel or otherwise, exists to help the line effectively. It has been

created in the first place to take advantage of specialized talent and knowledge.

The H.R department of the company generally performs the following operation:

Policy Initiation and formulation

Advice

Service

Control


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4.1.1 POLICY INITIATION AND FORMULATION

The SEVP of the H.R. Department is the individual most actively involved in policy

revision to cover recurring problem or to prevent anticipated problems. Ordinarily

these are proposed to the presi dent of the company, and it is up on the latters

authority that the policy is actually issued. When proposing a new or revised policy

the personnel director must analyze problem that have occurred in the past, survey

other companies to determine how they handle similar situations, discuss the matter

with colleagues and subordinates and give due consideration to the prevailing

philosophy in the organization.

4.1.2 ADVICE

A major portion of the activities of those engaged in staff personnel work i s in the

nature of counsel and advice to line manager. Countless examples can be given. A

shop foreman may be confronted with a grievance over distribution of overtime.

Another foreman may have the problem employee who he feels should be disciplined

or even suspended. At the time of the annual review of all salaried personnel for

possible pay increases, the operating manager plays a key rol e in advising operating

manager on the administration of the program. An apparent concerted slow down may

occur in the assembly department. It may have been instituted by the union in

retaliation for the cutting of piece rates the week before. How should production

supervision handle this situation.

The H.R. Managers and their staffs are expected to be fully familiar with H.R. policy,

the labor agreement, past experience and the needs and welfare of both the company

and the employees in order to develop a sound solution. Successful personnel

specialist must be people centered. They must be feeling sensitive, wants, and motives

of other people. At the same time they must conti nually be cognizant of their


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obligation to preserve the structure and functioning of the organization. In fact, this

really is the essence of H.R. management. Management must seek to so di rect and

coordinate the efforts of the people that the goals of the organization are achieved

while at the same time providing need satisfactions for the members of that

organization.

4.1.3 SERVICE

The service responsibilities of the H.R. department are apparent when one examines

such things are as the employment, training, and benefits functions. The tasks of

recruiting, interviewing and testing job applicants are performed in the H.R. Dept.

Training programs are planned, Organized and often staffed through the H.R. Dept.

H.R. Dept must see that adequate instructional materials and facilities are available.

Once pension and insurance programs have been setup, all claims must be through the

H.R. Dept. The maintenance of adequate employee records i s a service function that

permeates all functional specialties within the personnel field.

4.1.4 CONTROL

The H.R. Dept carries out important control functions. It monitors the performance of

line department and other staff departments to ensure that they conform to established

personnel policy, procedures, and practices. The control function of the personnel

department is quite comparable to the activities of a quality control group that

measures product variables to ensure conformance to engineering specifications or to

the activities of the auditing staff that inspects accounting records to ascertain

conformance with prescribed standards.

4.2 HUMAN RESOURCE DEPARTMENT OPERATIONS


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H.R. Management activities are carried on both by the staff H.R. Dept and by

operating management in the course of di recting the activities of the work force.

Variation from the pattern described may occur in parti cular companies because of

special circumstances.

This function includes recruitment, selection, and induction into the organization. The

initial decision to add someone to the payroll is made by line management. It i s also

its responsibility to determine the content of the job to be performed and the employee

qualifications necessary to perform the job satisfactorily. Very commonly, statements

of job content and employee qualification have been previously worked out jointly

between line management and the H.R. Dept. These are recorded in the form of job

descriptions and job specification. The H.R. Dept must develop and maintain

adequate sources of labor. It must set up and operate the employee selection system,

which may include interviews, selection tests, a medical examination, and reference

checks. Quite commonly the role of the H.R. Dept is one of screening with the final

decision to hire or reject being made by the supervisor who requested the new

employee. However, in the case of large-scale hiring program of unskilled or skilled

workers, the H.R. Dept is commonly granted full and final authority to make the

hiring decision. The new employees supervisor bears important responsibilities for

introducing his/her to the new work environment. This i s often called orientation.

4.2.1 TRANSFER, PROMOTION, LAYOFF

For these tasks the H.R. Dept serves primarily in a coordinative capacity. When

employees are moved from one department to another either because of the needs of

the business or because of individual requests, the personnel records may be studi ed

to ascertain that they posses the requisite skills. Layoffs typically are processed by the

H.R. Dept to ensure that the proper order of preference is followed. This can become


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complicated of combinations of jobs, departmental, and plant wi de seniority rights

must be observed. When a vacancy occurs in a position, it may be filled by promotion

from within or by di rect hiring from outsi de the company. This decision is often

made jointly between the H.R. Manager and the executive in change of the

department where the vacancy has occurred. Many companies may establish policies

to cover matters of this

type. The actual final decision as to which candidate i s chosen for the promotion is

largely made by the executive in whose unit the vacancy has occurred.

4.2.2 PAY PACKAGES

The packages are also determined by the Human Resources Department. These are

determined on the basis of performance, ACR, qualification and seniority. It has

comparatively low pay packages yet good ones. The managerial posts are filled

directly by the Human Resource Department. On the other hand the Technical Lower

and mid level supervisory staff is hired by the means of:

1) Direct Hiring.

2) Promotion on seniority bases.

The promotions are on the seniority cum fitness basis .So the qualified and the

efficient workers are supposed to come up to the top. Human Resource Department

also deals with the retention and firing of the employees. In case of deceased

employee, one of his children gets the job in the company according to his

qualification. According to qualification and skills it ensures the employee benefits.

More over the Human Resource Department al so cares for the old age benefits of the

employees. It is obvious that the Human resources Department is of key importance

and is playing a complementary role in the development and promotion of the

company.


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4.2.3 INFORMATION TECHNOLOGY

The information system is the core of the operating of the each and every

organization. It helps in the policy formulation and the running of the business affairs

properly by providing the 1st hand and accurate information. The whole Human

Resource Department functionality depends upon the information system. Better the

information system, better the Human Resource Department. The company is now in

a process to develop its own HRIS system so that it may have good information

system and be able to serve the employees as well customers through Human

Resource Department efficiently and effectively.

4.2.4 COMPENSATION ADMINISTRATION

The work of designing and installing a job evaluation program is handled, for the part,

by the H.R. department with some consultation with line managers. The decision to

adopt a particular pay structure with pay grades and fixed minimums and maximums

for the grades is a top management responsibility.

The day-to-day work of analyzing jobs, evaluating thei r worth according to a formal

job evaluation plan, and maintaining suitable records i s are H.R. dept. functions

Periodic wage are conducted by the H.R. dept, but any firm decision to rise or change

the entire schedule is parti cularly always reserved for the chief executive officer of

the organization.

Following three types of compensation packages are being served to PTCL staff.

N.B.P.S (National Basic Pay Scale)

N.C.P.G (New Compensation Pay Grades)

N.T.C (New Terms and Conditions)

4.2.5 HEALTH AND SAFETY


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A significant part on occupational health programs is the identification and control of

agents within the working environment that can cause occupational diseases. Some

agents may be gases, dusts, fumes, toxic chemicals and metals, noise, heat, radiation,

biological substances and stress. Industrial hygienists are employed to identify and

control such hazards to health.

Other important elements of an employee health programs are pre-employment

medical examinations, periodi c examinations for those working on jobs having

exposure to occupational disease-causing agents, rendering of first ai d, treatment of

minor ailments such as col ds and headache, and providing health education

information. Small companies typically hire physicians, nurses and industrial

hygienists only on the consulting and part time basis. Large firms tend to be staffed

with full time personnels in these areas. The safety program is directed toward the

prevention of work injuries.

The main elements are engineering, education and enforcement. PTCL is offering

both its own medical facility setup & the private hospital s on its panel. The miner

health problems are dealt by PTCL own medical facility/staff & other in which patient

is to be admitted or operated are forwarded to the panel hospitals. PTCL also offers

reimbursement of expenses to the remote areas staff as they can not reach to PTCL

hospital in any emergency.

4.2.6 DISCIPLINE AND DISCHARGE

Discipline has two principal meanings. In the first sense it means training that molds

or corrects. This means the achieving and maintaining of orderly employee behavior

because the people understand and believe in the established codes of conduct. The

second meaning of the term discipline refers to punishment of wrongdoers. The H.R.

department commonly assumes the responsibility for formulating the list of necessary


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rules together with the range of penalties for each offense. Frequently this list of rules

and penalties is discussed and cleared with high-level line management before it is

issued and communicated throughout the organization. These rules are called terms

and conditions formerly known as Employment & Discipline (E&D) rules. Most

commonly, actual approval by the H.R. department has to be obtained before and

employee may be discharged. The reason is that discharge is a very serve penalty and

should be used only when a very clear case can be shown. In addition, it is especially

vital to achieve companywide uniformity in the handling of such cases.

4.2.7 LABOR RELATIONS

When a union has been certified by the National Industrial Relations Commission

N.I.R.C, as the result of an election, as the sole and exclusive bargaining agency

(C.B.A) for the employees, then management must bargain with it in regard to wages,

rate of pay, hours of work, and other conditions of employment. The principal tasks

involved in handling labor relations are contract negotiation, contract interpretation

and administration, and grievance handling.

The H.R. department plays very significant role in labor-management relations. The

director of industrial relation usually serves as a key member of the bargaining team

often acting a chief management spokesman. In operating on a day-to-day basis under

the terms of the labor agreement, line supervision often finds frequently occasion to

consult the H.R. department regarding such matters like allocation of over time,

handling of transfers and layoffs, and the application of contract work rules.

4.2.8 BENEFITS AND SERVICES

Included under this category are pensions, group life insurance, hospital and medical

insurance, sickness leave pay plans, supplemental unemployment compensation, loan

funds, credit unions, social programs, recreational programs and college tuition


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refunds plans. The actual decision to establish or to expand these programs is nearly

always made by top line management upon the advice and consultation of the H.R.

department. The actual design of pension and insurance programs requires a great

deal of technical knowledge. These programs are generally worked out in conjunction

with insurance companies or insurance consultants. After these plans are installed, the

day-to-day processing of claims is handled by the H.R. department

4.2.9 ORGANIZATION DEVELOPMENT

Organization development is a general approach for improving the effectiveness of an

organization that utilizes a variety of applied behavioral science methodologies.

Among the objective of the OD are to increase the level of trust and supportiveness

among people in the organization, enhance interpersonal skills, make communication

more open and direct, directly confront problems and to tap the knowledge of all who

can contribute to problem solutions wherever they may be in the organization.

Consultants are often involved in OD work they work jointly with management to

collect data, diagnose problems and work of solutions. Typical kinds of OD activities

are interventions or confrontation meetings, team buildings, survey field, back

conflict resolution, laboratory training and managerial grid exercises and projects.

4.2.10 TRANSFERING

Human Resource Department of the company also deals with the transfer of the

employees because the Human Resource Department knows the demands of the job

and the right person is employed over the right place by transferring him to that post.

Health and safety matters are al so handled by the Human Resource Department in the

organization. As there are no apparent dangers to the employees and customers hence

it is the responsibility of the Human Resource Department to see through the matter.

4.2.11 EVALUATION


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The employees are then properly evaluated by different evaluation criteria and

procedures in order to motivate them and to enhance the performance .The job

appraisal system comprises of different questionnaire depending upon which the

4.2.12 EQUAL EMPLOYMENT OPPORTUNITY

Very commonly the Senior Executive Vice President (SEVP HR) in the company

bears the major responsibility for insuring that the organization complies with the

various equal employment opportunity laws and regulations. She or he often delegates

the day-to-day detailed administration to someone within the H.R. department who

either specializes in this field of work or who performs these duties along with others

department such as the employment function. Usually the Chief Executive Officer

(CEO) of the company, whether she or he is called the chairman/chairperson of the

board or the president, plays a key role in the formulation and implementation of

equal employment policy.

4.2.13 PERSONNEL INFORMATION SYSTEM

Today, many organizations have staffs of people trained in mathematical analysis,

computers, and management information systems. Some companies have applied

these capabilities to personnel work. Among the applications have been human

resources planning, skills inventories, employee benefits analysis, and productivity

studies.


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CHAPTER NO. 05

FUNCTIONS OF HUMAN

RESOURCE DEPARTMENT

5. FUNCTIONS OF HUMAN RESOURCE DEPARTMENT

5.1 HUMAN RESOURCE PLANNING


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Another new function that has emerged in recent years in human resource planning

(also called manpower planning). Sometimes a specific person or office has this as its

primary responsibility; more commonly the responsibilities are shared by several

people within the corporate personnel unit. Human resource planning is the process

by which is a firm insures that it has the right number of qualified persons available at

the proper times, programming jobs that are useful to the organization, and which

provide satisfaction for the individuals involved. The principal elements involved in

human resources planning are as follows:

1) Goals and plans of organization.

2) Current human resource situation including skills inventory.

3) Human resource forecast including comparison of projected future demand for

employees with projected supply.

4) Designing programs to implement the plans.

5) Audit and adjustment.

The PTCL has won repute in the field of land line & WLL services for the domestic

& commercial customers .It has been achieved only due to the proper and exact

functionality of the Human Resource Department .The Head of the Human Resources

Department is the SEVP and his team comprises of EVPs & General Managers of

different zones . The Human Resource Department may advice the administration and

the board of directors on special issues of the company and then it offers services in

order to accomplish the task. The human resources are the ultimate deciders provided

by the Human Resource Department. It not only gives advice, offers services but al so

control the policies of the administration.

5.2 RECRUITMENT & SELECTION


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Recruitment Fresh recruitment of professional are only being made in areas like.

Technical Human Resource (HR expert, HR Managers) Finance & Business

development & marketing Information technology (IT Professionals)

Recruitment Procedure

The recruitment procedure of PTCL is as follows: First position or vacancy is

a n n o un c e d i n t h e e l e c t r on i c m e d i a a n d p r i n t m e d ia . through Internet

and newspapers respectively. Then applications are scrutinized as per specification in

the job description and job specification.Candidates are being short-listed.The next

step is Test of short-listed candidates. The next step of the PTCL recruitment process

is the interview. They usuallyUse a structured and semi-structured interview for the

candidates. Last but not the least is the verification of the documents.

RECRUITMENT METHODS

There are basical ly 2 methods at PTCL frequently carried out when

desired, these: methods are as follows:

Internal Recruitment

External Recruitment

Internal Recruitment

In this method the candidates are recruited within the PTCL. It is a search mode in

which the PTCL check out the potential and right and desired person within the

PTCL. In order to get desired candidates they advertise within the organization.job

specification and job description by using Notice Boards.

External Recruitment


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In this method PTCL recruit externally from the outside environment. For this

method they use different modes to recruit the people. Few of the methods are as:

follows carried out in past as well as currently.Online Recruitment.Use of Print Media

(Newspapers).

Quota System

There is a percentage reserved by each quota differentiated on the basis of Genderand

Province.

Punjab 50%

Sindh 20%

N.W.F.P 17%

Baluchistan 10%

Women 5%

Handicapped 2%

Child Labor Nil

Modes of Recruitment

PTCL Advertise its vacant positions through different sources of media these are as

follows

Official Web Site

PTV

The NEWS

The JUNG

NAWA-A- WAQT

Google (Online application forms)


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Selection is the process of choosing from a pool of applicants the individual or

individuals who best fit the selection criteria for a given position.PTCL has

got very effective andefficient selection.

SELECTION CRITERIA

These are the following steps carried out by PTCL in order to meet selection

Recruitment (Advertising Job specification &Description)

Application (Online & Forms)

Screening of applications

Test

Interview

Final Decision Making

Joining Letter

Interview Methods

The interview method depends on the situation and conditions but there are 3

types interviews but two of them are and were in focus of PTCL while carrying out

Selection. These three methods are:

Structured Interviews

Unstructured Interviews

Stress Interview

But at PTCL there are only 2 types used which are

Structured Interviews are those which are preplanned and predefined in order to

check the skills, abilities, knowledge, behavior, and required potential of

thecandidates.

Unstructured Interviews are those which are not predefined and

preplanned but they are based on conditions and possibilities.


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Format of Job Description

Following is the format of Job description given by PTCL:

Purpose of the job Role and function

Dimensions of job

Annual operating budget of unit

Number of clients served

Number of directly reports

Indirectly reports.

Specific accountabilities of the Job

Job responsibility

Achievements

General accountabilities of the Job

Peripheral accountabilities of job

Performance standards

How is the performance of this job measured?

Standard constitute.

Job Components

Communication

Initiative

Challenges

Adaptability

Team work

Guide lines

Nature of supervision received


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Leadership

Responsibilities

5.3 TRAINING, ORIENTATION AND DEVELOPMENT SYSTEM

On-the-job training and coaching are performed by the line supervisor or by a

specially designated employee who acts in the role of an instructor. It is the

responsibility of the personnel industrial relations group to determine training needs

in cooperation with the line management. Once the needs are established, the

personnel training specialists must design a program to accomplish the desired results.

If the program takes the form of in service class room courses, it usually is

administrated by H.R. Department. Coaching, performance appraisal, and post

appraisal counseling, job rotation, understudies, and special broadening assignments

are largely executed by operating managers but coordinated by a central H.R. Dept.

PTCL has established its own training facilities as detailed below:

Telecom staff College Hari Pur

Telecom Staff College Lahore Cantt

The regional level staffs training schools are also involved for extending training

facility to all the staff members of the organization, based at regional headquarter

level such kind of Regional Telecom Training schools are

R.T.T.S Lahore

R.T.T.S Multan

R.T.T.S Faisalabad

R.T.T.S Karachi

R.T.T.S Islamabad etc

The types of training being offered are:


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Initial training for the new staff generally 03-06 months as per designation at

T.S.C Lahore/ Hari Pur.

Refresher courses for existing employees.

Promotion training courses.

Special emergent technology trainings.

Sometimes PTCL also sings contracts with its suppliers/vendors for foreign

trainings.

5.4 PERFORMANCE APPRAISAL

To measure the performance there are few methods and standards

and benchmarks, which an organization have to follow, in the case of

PTCL too. Theirmain objectives are as follows: Improvement in Performance

Effectiveness, Efficiency, Productivity, Motivation Pay and Benefit Adjustments,

Training & Development Needs, Career Planning & Development with Personal and

Employee Development, Staffing (Recruitment & Selection), Response and Feedback

fromPerformance .

Appraisal Methods

There are many performance appraisal methods but in PTCL they use Rating

scalefor performance evaluation.

Rating Scale:

The rating scale method offers a high degree of structure for appraisals. Each

employee trait or characteristic is rated on a bipolar scale that usually has

several points ranging from "poor" to "excellent" (or some similar

arrangement).The traits assessed on these scales include employee

attributes such as cooperation, communications ability, initiative,

punctuality and technical (work skills) competence. The nature and scope of


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the traits selected for inclusion is limited only by the imagination of the

scale's designer, or by the organization's need to know.

5.6 COMPENSATION AND REWARD MANAGEMENT SYSTEM

The work of designing and installing a job evaluation program is handled, for the part,

by the H.R. department with some consultation with line managers. The decision to

adopt a particular pay structure with pay grades and fixed minimums and maximums

for the grades is a top management responsibility. The day-to-day work of analyzing

jobs, evaluating their worth according to a formal job evaluation plan, and

maintaining suitable records is are H.R. dept. functions Periodic wage are conducted

by the H.R. dept, but any firm decision to rise or change the entire schedule is

particularly always reserved for the chief executive officer of the organization.

Following three types of compensation packages are being served to PTCL staff.

N.B.P.S (National Basic Pay Scale)

N.C.P.G (New Compensation Pay Grades)

N.T.C (New Terms and Conditions)

Pay Scales & Opportunities

At PTCL according to the information gathered by us is as follows:

PTCL employees have good salary as we compare to other

Government Organizations PTCL employees have less pay if we compare them with

other private sector. Employees compare at same designations and jobs. Minimum

pay at PTCL RS.6000 and above For 17th Grade and above RS.25000 and above

Rests of the benefits and compensations as well as allowances are as per government

rules

Compensation


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It is a system in which an employee is rewarded on the effective and efficient required

performance. PTCL has a very organized and effective compensation system

according to the rules and regulations of Government of Pakistan. They are offering

30% more pay then other Government Organizations. The rewards,

benefits, allowances that are offered by PTCL for its employees and workers as well

as officers are as follows:

Financial Rewards Pension 60% to 65% of basic pay

Disability Pension as per Government Rules

Death Benefits Funeral amount + 5-6 months pay

Loan Facility, Car & motorcycle loan,

Loan will be deducted from monthly salary Provident Fund 8.25% of salary + interest

of 15%

NON-Financial Rewards

Maintenance

Company provides maintenance of Employees car & motorcycle Pick & Drop,

Busses are used for this purpose Own flats for lower staff (1 - 15th grade) Colonies

and Full furnished houses for high rank officers and Top management (17th21st

Grade Officers).

Leave Policy

It is up to the mark of Government rules and regulations. Leave policy contains:

Holiday: 5days a week. Saturday, Sunday is off

Earned Leaves: 45 leaves per year

Casual Leaves: 20 leaves per year (with Pay)

Maternity Leaves: 120 days

Medical benefits


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PTCL also give medical benefits to its workers and employees. PTCL employees

have free medical treatment. In all over Pakistan there are 38 dispensaries which are

working and providing free treatments to PTCL employees. This benefit is also for the

family members of the PTCL employees, after retirement too. PTCL provide the

medical benefits to its former employees. Employees from grade 1 to 16 are entitled

for medical facility up to five years of the retirement. Employees in grade 17 and

above have lifetime entitlement for the facility.

5.7 LABOR RELATION

When a union has been certified by the National Industrial Relations Commission

N.I.R.C, as the result of an election, as the sole and exclusive bargaining agency

(C.B.A) for the employees, then management must bargain with it in regard to wages,

rate of pay, hours of work, and other conditions of employment. The principal tasks

involved in handling labor relations are contract negotiation, contract interpretation

and administration, and grievance handling.

The H.R. department plays very significant role in labor-management relations. The

director of industrial relation usually serves as a key member of the bargaining team

often acting a chief management spokesman. In operating on a day-to-day basis under

the terms of the labor agreement, line supervision often finds frequently occasion to

consult the H.R. department regarding such matters like allocation of over time,

handling of transfers and layoffs, and the application of contract work rules.


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CHAPTER NO. 06

PRACTICAL EXPERIENCE

WITH PTCL DURING

INTERNSHIP

6. PRACTICAL EXPERIENCE WITH PTCL DURING

INTERNSHIP


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In the beginning they gave me a brief introduction of all the aspects related to

their field of business, different departments, their heirarchy, HR Practices. A

general overview of PTCL was given in other words.

After the orientation and introduction they breif us about all the HR plocies and

strategies and assigned us different assignments reagrading to different issues which

were currently highlighted related to PTCL employees.

Moreover, I learned how things work in a practical environment, challenges and

problems faced. The studied the recruitment and selection process were completely

and its importants things.

6.1 PROBLEMS IDENTIFIED

PTCL is a well organized company and operates efficiently in this competitive

environment so it was difficult for me to identify the problem. But nothing is perfect

in this world there is always a corner for improvement. According to my little

knowledge and experience following were the problems and challenges in PTCL that

can directly affect the efficiency and performance, in other words improvement need

be made in the following areas:

There is a lack of balance in incentives given to old and new employees. New

employees are paid more which de- motivates the old ones.

Lack of proper computer skills in old employees is another problem.

System problems do arise at times and customers have to wait for the

system to work properly.

Some employees misuse the resources of the company.

Employees were not very effective in communication among themselves. They

didnt share the exper ience with each other and didnt care about the

other employees. Some employees lacked the trust in management.


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Ineffective public dealing was another major pr oblem which I

experienced dur ing my internship.

Regularity and punctuality shows the character of big and good

executives. But this problem is also faced by the overconfident employees.


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CHAPTER NO. 07

PEST ANALYSIS

7. PEST ANALYSIS

7.1 POLITICAL FACTORS

The government plays an important role in the operation and manufacturing products

and Services in terms of regulations. Following are some of the factors


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Due to the unpredictable political and governmental changes rules and

regulation are changed quite frequently. Currently government has increased

the taxes in the telecommunication sector that will also a harder in the smooth

operation of telecom operation.

Before WTO implementation for deregulation of different sectors of the

economy. Pakistan government taken the step to regulate the telecom sector by

the authority of PTA. There are two types of Regulators held by PTA; the first

is called the Economy Wide Competition Regulator as the Monopoly Control

Authority. Also the political governmental rules cannot be completely

applicable in this sector due to the regulation authority of PTA.

Now a days Pakistani environment is instable due to political clashes among

political parties. Inside country war and drown attacks in north frontier areas.

This political instability has led to uncertain environment in the country,

which is a threat for any business including all the companies of the Pakistani

Telecom Sector.

Environment of telecom is investor friendly and have great potential to gain

profit. The mobile phone tele-density which had reached to 58.70 by the end

of February 2010. In Pakistan, the total number of subscribers which had

touched an all-time high figure of 96,231,229 in February 2010.

Due to huge budget deficit and low growth of economy government has

increased the taxes in telecom sector. Pre-paid customers were charged 10 per

cent withholding tax on every new load, which was deducted in advance. The

customers were also paying 15 per cent sales tax on every call. However, the


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18 present governments increased the sales tax from 15 per cent to 21 per cent

for mobile users by declaring the mobile phone a luxury item.

7.2 ECONOMICAL FACTORS

Economic conditions are influenced by political and government policy, being a

major influence affecting these can affect the telecom companys strategies.

Overall economic conditions are not very sound .The country risk of Pakistan goes to

3 which is a l a r m i n g situation for Pakistan. Telecom industry continued to

attract foreign direct investment (FDI) to expand the infrastructure and maintenance

of their networks. However the volume of FDI also continued to decline with the

maturity of market over the time. Foreign direct investment consists of the amount

remitted from abroad and the reinvestment of profits earned by the companies which

were supposed to be repatriated by the foreign firms. During the quarter ending

December 2009, telecom sector attracted US $ 142.7 million FDI which was 26.4% of

the total FDI in the country during this period while in previous quarter FDI in

telecom sector was reported US$ 39 million that was about 8% of the total FDI in the

country. During the last one year, sector has attracted about 37% of total FDI in

Pakistan which is a commendable.

7.2.1 Investment in telecom sector

In 2008-09 operators total US $1.6 billion worth of investment has been made

by all operators in Pakistan.

Pakistan provide profitable environment for investment for foreign investors

to invest in telecom sector of Pakistan.

Due to profitable environment, telecom sector attract US $815 million in

2008-09 which was a big investment during this financial crisis period.

7.2.2 Revenue and growth rate from telecom sector


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In last 6 months of 2009, telecom sector received over US $143 million.

Which was 18% of total Foreign Direct investment in Pakistan?

Telecom revenue showed 19.8% growth during 2008-09 but in 2007-08 it

showed 18.2%.

Cellular mobile sector continued to be the leader in telecom revenue, whose

share came out to be 64% in total revenue of telecom sector of Pakistan

Cellular mobile growth rate is 17% in 2008-09.

Government of Pakistan reduce GST/FED rate from 21% to 19.5%.

Telecom sector contribute to National exchequer112 billion in 2008-09 but in

2007-08 it was 111 billion.

Due to inflation the cost of doing business is also gone higher. Inflation

remains the biggest threat to the economy, jumping to 7.9% in 2006 to 23.3%

in first quartile of 2009. This increasing ratio will hurt the buying power of the

consumers that will overall reduce the demand for the products.

Pakistan has a growing upper class with relatively high per capita incomes. In

late2006, the Central Board of Revenue estimated that there were almost 2.8

million income-tax payers in the country with 45 % people are living on 2 $

per day.

The unemployment rate is going up and up with the increase of level of

poverty that is reducing the buying power of the people that is threat for

mobile brand.

Inflation is being controlled by state bank and under strict eyes but

unemployment rate is going up & up with the increase of level of poverty


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Economic instability is worsening day by day as liquidity crunch is prevailing

in the world.

7.3 SOCIAL FACTORS

The socio cultural environment summarizes demand and tastes, which vary with

fashion and disposable income, provide opportunities and threats to telecom

companies.

As Pakistan is an Islamic country and people are very strict in case of Islam

anything against the philosophy of Islam on either print or electronic media

are treated as against Pakistan. Most of the people dislike anything extra-

ordinary or 19 something which sabotage their culture or subculture. Pakistani

society is largely multilingual and multicultural.

The Pakistani people are more social and want to remain in contact with other

people. They celebrate lot of festivals like Jashn-e-Baharan, Eid Celebrations

and other cultural festivals. On these festivals they make calls to relative and

one of the key issues is sending SMS regarding the event. This will influence

the demand for the product.

Increasing globalization has amplified the influence of "Western culture" in

Pakistan. The life style of Pakistani people is changing rapidly. People are

more conscious about status pat most all people purchase multimedia mobile

phones. And also there is trend for Black berry sets by youth which will help

in enhancing their product and services.

The total population of Pakistan is approximately 169,248,500. The

population is increasing rapidly which increase the number of cellular usage

and help in projecting high profits.


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Most of the people dislike anything extra-ordinary or something which

sabotage their culture or subculture.

Ptcl Internship Report by M.siraJ 2011

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