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    Strategic Human resource management

    Project report on wateen telecom

    Submitted to

    Mam Aqsa akbar

    Submitted by

    Ali farooq Ba-01083-048

    Farah munir Ba-01083-056Fatima mehboob Ba-01083-055

    Qurat ul aien Ba-01083-046

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    Lahore business school

    Contents:

    Sr

    #

    Topic name Page

    #

    1 Dedication 3

    2 Acknowledgment 43 Objectives 5

    4 Introduction 6

    5 Company profile 8

    6 Vision & mission 9

    7 Product portfolio 10

    8 Corporate staregy 10

    9 Business level and Hr strategy 11

    1

    0

    Culture in wateen 12

    1

    1

    Hr department functions 13

    1 Current situation 14

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    2

    1

    3

    Recommendations 16

    1

    4

    References 17

    1

    5

    Exhibits 18

    DEDICATION:

    Firstly, we thank Allah for giving us the strength for completing

    this job.

    To all the people who prayed for us and sent us their best wishes

    and gave us the courage to keep going on and never break in the

    face of difficulties.

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    To our respected teacher Maam Aqsa Akbar, without whose

    guidance this project could not have been completed.

    ACKNOWLEDGMENT:

    Our teacher, Maam Aqsa Akbar, who provided us with endless and

    invaluable guidance throughout.

    We thank the management of Wateen Telecom for giving us their

    time and co-operating with us. They treated us with courtesy and

    provided us with all the information we needed.

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    We also thank all the individuals who have contributed towards the

    completion of this project.

    OBJECTIVE:

    In this project we have tried to observe an organization and see how it isrun.

    The main objectives were:

    To observe and study their HR strategies regarding staffing, etc.

    Observe the effectiveness of current HR

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    Assess the degree to which the HR strategies are aligned with thecorporate strategy.

    INTRODUCTION

    An organization is a social arrangement which pursues collective goals, which controls itsown performance, and which has a boundary separating it from its environment.

    A manager is the person responsible for planning and directing the work of a group ofindividuals, monitoring their work, and taking corrective action when necessary. For many

    people, this is their first step into a management career.

    Any organizations human resource is an asset, and it is very important to maintain and retain

    that asset. HR is a face value for any organization. Right from when the candidate walks forinterview in the organization till he leaves the premises of the organization the way they treata candidate the way the entire recruitment activity is schedule tells lots about the company.HR plays a pivotal role in any organization. They ensure that each individual in a company is

    properly utilized as per his/her ability to perform his/her duties as well as act as a devilsadvocate so that problems and issues are resolved immediately to ensure smooth functioningof workflow, good working environment etc.

    An HR manager is a very high and prestigious post. As an employee sponsor or advocate, theHR manager plays an integral role in organizational success via his or her knowledge aboutand advocacy of the employees. This advocacy includes expertise in how to create a work

    environment in which people will choose to be motivated, contributing, engaged, and happy.

    http://en.wikipedia.org/w/index.php?title=Social_arrangement&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=Social_arrangement&action=edit&redlink=1
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    Fostering effective methods of goal setting, communication and empowerment throughresponsibility, builds employee ownership of the organization. The HR professional helpsestablish the organizational culture and climate in which people have the competency,concern and commitment to serve customers well.

    In this role, the HR manager provides employee development opportunities, employeeassistance programs, gain sharing and profit-sharing strategies, organization developmentinterventions, due process approaches to employee complaints and problem solving, andregularly scheduled communication opportunities.

    The constant evaluation of the effectiveness of the organization results in the need for the HRprofessional to frequently champion change. Both knowledge about and the ability to executesuccessful change strategies make the HR professional exceptionally valued.

    Knowing how to link change to the strategic needs of the organization will minimizeemployee dissatisfaction and resistance to change. The HR professional contributes to the

    organization by constantly assessing the effectiveness of the HR function. He or she alsosponsors and supports change in other departments and in work practices. To promote theoverall success of his or her organization, the HR professional champions the identification ofthe organizational strategic plan: mission, vision, values, goals and action plans. Finally, heor she helps determine the measures that will tell the organization how well it is succeedingin all of this.

    A human resources manager is responsible for managing and overseeing the personneldepartment within a company, organization or agency. This includes posting advertisementsor approving advertisements for new employees, screening resumes and applications, settinginterview appointments and being involved in the hiring process. In most agencies the humanresources manager is also responsible for employee supervision and evaluations, retrainingemployees, offering mediation services for struggling employees as well as firing employeesthat are not meeting standards.

    Human resource managers must be aware of local, state and federal employment guidelines,manage payroll issues, maintain employee records, complete and record insurance and other

    programs offered to employees and be able to assist employees in understanding andevaluating the participation in these programs. Human resource managers may also beactively involved in retraining or training new employees or existing employees or answeringquestions that employees may have on policies or procedures within the company or agency.

    Workplace safety, employee absenteeism and health issues are also addressed by the human

    resources manager. The manager may be able to work directly with outside agencies toprovide on-site counselling or even specialized programs for additions or crisis interventioncounselling or services. Many human resource managers act as the bridge betweenmanagement and workers in non-union companies. Conflict resolution and improving overallworkplace moral is a key part of the role of a human resource manager.

    Common work activities include: Posting advertisements for new employees in newspapers, on the internet or in trade

    specific magazines. Contacting employment services or even executive recruiters forvery specialized postings.

    Ensuring all record keeping with regards to workman's compensation, health and

    medical insurance, and other state and government regulations is completed asrequired.

    http://www.jobprofiles.org/programs/business/communication-studies.htmhttp://www.jobprofiles.org/programs/business/communication-studies.htm
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    Overseeing the human resources department staff and handling all issues involvingemployee complaints or questions that cannot be answered by other staff.

    Managing office or agency health, safety and mental health and well-being issues. Working with employers and employees in training and in-service presentations as

    required.

    Hiring, supervising, training, monitoring and firing of staff. Involving in the resource hunting and recruitment process of an individual. Maintaining the records of all employee details. Gathering information from other departments and employees. Arranging various training and development programs. Ensuring about the employee safety, security, welfare, wellness and health. Administering the duties of the performance appraisal and motivating the employees. Providing response to the general HR enquiries verbally and written. Maintaining the routine correspondence and providing the employee satisfaction and

    feedback reports. Manage & control the departmental expenditure that exists within the budgets.

    To manage & develop reporting staff.

    Company Profile

    Wateen Telecom was formed under the auspices of the Abu Dhabi Group which is one of theleading business conglomerates in the Middle East and one of the largest foreign investors in

    Pakistan. The Group has a diverse set of business interests that offer strong financialresources and extensive management expertise, resulting in the commercial success fornumerous enterprises.

    The Abu Dhabi Group's major investments are in the following sectors:

    Oil and Gas Exploration Banking and Financial Services Automotive Hospitality Services Property Development

    Telecommunications & Technology

    Wateen Telecom is a converged communication services provider that fulfils connectivityrequirements for organizations and individuals in Pakistan. Wateen Telecom deliverscomplete solutions for Internet, Voice, Multimedia and Enterprise Solutions that make it themost comprehensive provider for all of Pakistans communication necessities. An Abu DhabiGroup venture, Wateens vision is to take Pakistan into the digital revolution of the 21stCentury and to make Pakistan a regional communications hub, connecting the East with theWest and Central Asia with the Middle East.

    Wateen began its operations in Pakistan in 2007, with the deployment of the largest fibre

    optic network in the country. Moreover, Wateen is the worlds first company to commerciallyroll out a WiMAX network on a nationwide scale. Wateen currently services over 250,000

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    WiMAX subscribers, provides enterprise solutions and data services to over 200 leadingorganizations and its wired (HFC/GPON) network reaches over 15,000 households in Lahoreand Multan. [See Exhibit-1]

    With a new strategic vision and management in place, Wateen has steadily improved its

    service provision and its corporate structure to adequately reflect its corporate motto andbeliefs of Enabling Customer Lifestyles. Wateen is aiming to help shape the education,social and economic development in the country using broad-based internet provision.

    Our vision:To lead Pakistan into the digital revolution

    Our mission:

    Deliver high-quality, flexible and innovative solutions that are cost-effective. Provide complete customer satisfaction on time, every time

    Make Broadband Pakistan a reality [See Exhibit-2]

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    Product Portfolio:

    Currently, Wateen is offering four different types of products/services for everydaycustomers as well as corporate customers:

    1. Internet2. Telephony3. Enterprise Solutions4. Television

    Corporate Strategy:

    In the Internet and Telephony market, Wateens market share is second only to PTCL.Wateens corporate strategy is growth. They want to become market leaders in their industry.Their basic corporate strategy is growth, which they are trying to achieve by implementingthe portfolio strategy. They are trying to capture high market share by providing a diverserange of products and services to customers. Plus, they have the advantage of being firstmovers of the WiMax technology and have the largest fibre optic network in Pakistan. Theyare offering a wide portfolio of products in their attempt to capture the highest market share.

    [Exhibit-3]. A generalized BCG matrix is shown below, giving an overview of their mainbusinesses and their relative positions.

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    Business Level Strategy:

    All four of Wateens businesses have different business level strategies. Enterprise solutionsare using focused differentiation. Telephony and Internet are using the cost leadershipapproach, where are as TV is using the targeting niche market approach.

    HR Strategy:

    Hiring is decentralized; the head each division does its own hiring. Since all the differentbusinesses are working with difference strategies for capturing the market, they all have theirdifferent HR strategies accordingly.

    1. Enterprise Solutions

    This business works on a differentiation policy. They provide all their corporatecustomers with exactly the type of product they require. They have a very largecorporate customer base, which includes all the five mobile phone carriers, as well asnumerous banks [see Exhibit-1]. This department hires efficient and competent peoplewho can design packages for companies and provide them solutions on time.The strategy of this department is consistent with its business level strategy like thehiring of the employees in a very good manner and the strategy is align with the goals.

    Source for hire people is electronic media, internet, newspaper To retain their employees they are using performance management

    system To achieve good targets they motivate their employees and give them

    special training & development Use by approach to hire top management

    Enterprise

    solutions

    InternetTelevisionTelephony

    Market

    Market

    higlo

    hig

    lo

    BCG Matrix of Wateen

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    To check on the performance of their employees they are using properfeedback systems

    Use diversity management to be innovative. Equal employment opportunity is not there. Use downsizing when they fire their employees. And when they need them

    back then also call them but the moral and satisfaction level fallsdown.and effect on the profitability.

    1. Internet & Telephony:This business works on a cost leadership policy. They have a bad Hr strategy for this

    product portfolio. They provide the lowest price on their services as compared to theircompetitors. They are trying to capture the highest market share, which currently

    belongs to PTCL. This department hires people on contract basis and dont give themproper benefits

    Rewards & Benefits are given to employees to retain or motivate them butlayoffs give a bad imperation to their employees

    Employees get their rewards on the basis of performance management

    They give general training to their employees Source of hirring is internal hirring for the middle management For top management hirring they use by approach. And hire people from

    big multi national companies Training for ccr is only for 4-5 days which was not enough Lay off is very common in wateen thats why there employees dont have

    job security Wateen Relaunches after every 2-3 years because they dont have loyal

    employees which have a negative impact on their business and there is noretention of employees.

    Employees are hire on contract basis There is no equal opportunity in the organization

    1. Television:This is a relatively small business, currently operating only in DHA Lahore and DHAKarachi. This department hires people who are can are generally good at dealing withcustomers. This department has less people because this is a relatively small businessunit. This product market is a niche market and also has the same Hr strategies astelephone and internet have.

    C ulture in Wateen :

    Wateen has a unique environment to work for since it houses a diversity of skills,backgrounds, viewpoints and experiences from around the world. It is ensured that hiring ison merit, skill and ability, without regarding to race, colour, religion, sex, national origin,age, marital status, or any other classification.

    Wateen Telecom is building and integrating the next generation of intelligent, convergednetworks with a plethora of key services and differentiators in the market. The primalobjective is to become a carriers carrier and provide turnkey solutions for all customerrequirements and specifications. Wateen Telecom are seeking innovative and intelligent

    people to help design, market, sell and support an innovative & intelligent product portfolio

    to a diversified evolving market. They strive to hire only the best, create an exhilaratingwork environment and above all else, respect each individual's unique contributions.

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    An organizational culture has following elements:

    Organization environment Organization values

    Organizational rites, rituals, and customs Cultural transmitter

    Wateen tries to provide the best conditions for work. There is a decentralized system but datais recorded at single place that is Lahore, Pakistan. Problems are created by using Bottom-Upstrategies. Wateen respect each individuals creative and unique contribution. With all of thisWateen employees expect more.

    HR Department Function:

    The active role of HR at every level lead towards the enhancement of skills, leadershipqualities, operations, interpersonal skills, analytical skills and career development of theemployees according to their needs of job. It is the important department in Wateen. It

    performs the staffing function for the other departments in organizing the employees andmake them efficient. HR department is directly involved in managing employee affairs and

    perform different functions i.e. care about the employees by guidance and support, developdiscipline strategies and develop opportunities for the employees and the manager to maintainthe developmental goals at individual levels and match that with the overall organizationalgoals. HR department continuously makes efforts to improve the culture by makingconsiderable change, selection processes of employees, make standards for jobs according tomeet the world overall challenges and ensure that the people at every level are devoted andwilling to achieve the organizational goals.

    Hiring of employees:

    Wateen Telecom prefers people that have creative and innovative capabilities with proper

    skills and education to meet the challenges of the market. It is ensured that hiring is on merit,skill and ability, without regarding to race, color, religion, sex, national origin, age, maritalstatus, or any other classification.

    Wateen prefer best hiring for best people but devote less resources on their selectionprocedures. It hires by itself. Wateen prefer diversity; every type of people having differentand unique skills and culture reflect this. Over the last years Wateen used different processesto select and hire the people.

    Job Analysis data may be collected from incumbents through interviews or questionnaires.The product of the analysis is a description or specifications of the job, not a description of

    the person. The purpose of Job Analysis is to establish and document the 'job relatedness' of

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    employment procedures such as training, selection, compensation, and performanceappraisal.

    Recruitment and Selection at Wateen:

    Procedure is started when different departments communicate with the HR department for thespecific job requirement person that they required. Selection of the best people for thespecific job selection is performed by different formal and informal methods. But fewresources are devoted to selection procedures because the company, currently, is not in a verygood financial position. Selection procedure includes:

    Minimum requirements (education and/or experience) for screening applicants Interview questions Selection tests/instruments (e.g., written tests; oral tests; job simulations)

    Orientation materials for applicants/new hires

    Internet sourcing: Wateen advertise jobs on their website and collect data on that. It alsogives advertisements on other sources on the internet.

    Internal sourcing: For the selection of higher level staff, internal sourcing is used. If anemployee is available for the job then he is promoted and the vacant job is fulfilled by othersources.

    Employees referrals: Staff having referred friends and family members for the vacant job atmiddle and lower level positions in the company. But it is not very effective for the overall

    performance of the business.

    Newspaper advertisement: Wateen gives newspaper advertisements for vacancies.

    Compensation Plan:

    In the Wateen Telecom compensation is good for higher levels and but lower level staff arenot paid very competently according to the industry. For the top level executives, benefits arealso given and salary even up to Rs. 500,000/-, but some low level jobs as less as PKR12,000/-.

    Promotional plans:

    Promotion is very important for the employees for retaining them in the company. Theemployees are Wateen are not given promotions that often, even if they deserve.

    Performance Appraisal:

    There is no proper record of the employees in the Human Resource Department for doingproper performance appraisal. Employees are not very dedicated to achieving organizationalgoals and turnover rate is high. Applicant appraisal/evaluation forms are used for

    performance evaluation.

    Training and Development Plan:

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    Training is very normal routine for the employees but it is not very specific in accordance tothe job (general training).

    CURRENT SITUATIONS:

    HR department is playing good role for selecting the employees. In 2005 Wateen wasestablished as a part of Warid telecom and functions are same in the single HR department. Inmid 2007 it was separated from Warid as a subsidiary. Tariq Malik was the CEO of Wateenat that time. After having a separate identity, Muhammad Farukh Saddique was manager ofthe HR department and made a policy to hire new and competitive employees. He hired alarge amount of people at Wateen. But at the same time they outsource the services for thenew projects i.e Huawei for the instalment of the network in the Pakistan.

    In 2009 company made the decision for expansion by declaring IPOs in the Karachi Stockexchange. In mid 2009 before IPOs declaration, 50% employees were fired after the exitinterview conducted from those employees. After that, the company listed was in KSE as a

    private limited company. This period of downsizing brought with it an incredible anxiety foreveryone. Both managers and employees had to "get through" this period where downsizingwas announced and individuals are notified. In 2010, after IPO of the company, 200employees resigned from the company and it includes the top management of the company,who stated:

    No salary yet, fuel cards blocked since months, bonus not yet transferred, we are in bigproblem

    CEO Mr. Tariq Malik also resigned from his position. He was honored with one of Pakistanshighest civilian awards, the Sitara-e-Imtiaz in 2005 in recognition of his role in various facetsof banking, financial advisory and investments in Pakistan. Members Board of Directors,Warid Telecom and Wateen Telecom and the key players of Dhabi Group, Mr. Bashir Tahirand Pervez Shahid have reportedly resigned from their positions. On other side, Mr. PervezShahid was the top person for Warid, Wateen and Bank Alfalah in Pakistan. Officially he wasexecutive in-charge of strategic planning division, Bank Alfalah and was authorized power ofattorney holder for Warid Telecom. Both of the brothers were running all the Dhabi Groups

    business activities in Pakistan, which includes: Wateen, Warid, Bank Al Falah, UBL, RaseenTelecom, Razi Health Care, a Sugar Mill, a construction company and more.

    A message, coming directly from Sheikh Nahyan bin Mubarak Al Nahyan, Chairman AbuDhabi Group, has been sent to media, which explains the situation after ongoing changes inthe group at management level. Chairman Dhabi group said that Mr. Zouhair A. Khaliq willserve as Executive Director and represent the Group on the boards of Warid Telecom,Wateen and WinCom, while Mr. Naeem Zamindar will hold the position as the CEO ofWateen.

    The main problems the company is currently facing are very high turnover rates. Thecompany, in their struggle to be the best, lay off a lot of people. In the last one year, theyhave fired 40 percent of their top level executives. Employee motivation is very less, becausethere is no job security. Hiring is mainly internal reference-based; first priority is given to

    people recommended by the existing workforce.

    http://www.google.com.pk/cse?cx=partner-pub-2582615005696185:uasg2e-4653&ie=ISO-8859-1&q=raseen+telecom&sa=Search&siteurl=propakistani.pk/http://www.google.com.pk/cse?cx=partner-pub-2582615005696185:uasg2e-4653&ie=ISO-8859-1&q=raseen+telecom&sa=Search&siteurl=propakistani.pk/http://propakistani.pk/2010/04/27/dhabi-group-sets-up-a-health-care-company-in-lahore/http://www.google.com.pk/cse?cx=partner-pub-2582615005696185:uasg2e-4653&ie=ISO-8859-1&q=raseen+telecom&sa=Search&siteurl=propakistani.pk/http://www.google.com.pk/cse?cx=partner-pub-2582615005696185:uasg2e-4653&ie=ISO-8859-1&q=raseen+telecom&sa=Search&siteurl=propakistani.pk/http://propakistani.pk/2010/04/27/dhabi-group-sets-up-a-health-care-company-in-lahore/
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    Plus, in the year 2009-2010 the company has been spending too much on their marketing andpromotions, which has lead to a considerable drop in the profits. [Exhibit-4]

    Analysis & Recommendations:

    The companys current HR policies are not aligned with their corporate strategy of growthand diversification. This is achieved by a creative and competent workforce who is dedicatedto their work and organizational targets.

    Our recommendations are that the company should work more towards retaining anddeveloping their employees, are hiring and training are activities which are generally costly.Employees should be trained and compensated according to the amount of work that they do,and a proper performance appraisal system should be implemented in order to analyseemployee performances and give them bonuses/promotions accordingly. Such activitiesmotivate employees and make them realise their personal as well as organisational goals.

    Turnover and its solutionIn wateen the turnover rate is very high due the following reason

    Layoffs Terminations Poor reward and benefits No job security

    Wateen should retain its employees in order to get good profits and to achieve its corporategoals wateen should have use the following ways to reduce the employee turn over

    Use the proper reward system Give proper compensation benefits to retain their employees Give them a job security

    Diversity management use in all departmentsAs a telecom company wateen shoul use the diversity management approach in theircompany to be an innovators and take the first mover advantages

    Reduce status differentialsStaus differentials should be used in the company so the employees get motivated and retainand be loyal to their company

    Downsizing with restructuring

    Wateen when downsize also restructured there company so there cost will be less ascompared to the normal downsizing situation

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    Job securityWateen should give its employees job security so the employees are motivated and loyal tothe company

    Training & developmentWateen should give its employees a proper training and development so the employees canwork with more effort and experience

    Compensation & benefitsCompany give proper compensation and benefits to its employees give their 24 hoursoperation staff a good meal to eat so they feel considered

    Counter cyclic hiringWateen should use counter cyclic hiring and hire their employees in the downturn so theyhave a good bargaining power.

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    Reference:

    Muhammad TahirAsistant manager compensation & benefits H/R

    Syed omair akbarExecutive recruitment manager H/R

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    S EXHIBIT-1

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    EXHIBIT-2

    EXHIBIT-3

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    EXHIBIT-4