ABSTRACT

in this case study the purpose is to highlight the problem of HR department in Wateen

Telecom that it faces today. Wateen has a problem of more turn over rate because of

employees less motivated and not satisfied with the job conditions. Hiring process of the

employees done by internal and external sources. But Wateen HR devote not more resources

on it. In 2009 about 50% employees are downsized and after declaration of Initial Public

Offering top management resigned from job that create real problem for the HR of Wateen

that how they make decrease the turnover rate. What type of Strategies should develop for

retaining the employees in the Wateen?.

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WATEEN TELECOM (Pvt) Ltd: How To Retain The

Employee…??

CURRENT SCENARIO:

Wateen Telecom is a Pakistani telecommunication company based in Lahore, Pakistan and

is a sister concern of Warid Telecom. Mr. Naeem Zamindar is the current CEO of the Wateen

Telecom. Wateen with the collaboration of Motorola, they plan on deploying a WiMax

country-wide network across Pakistan. The commercial launch of Wateen's mobile WiMAX

services began with 22 major cities, 65 percent of the wireless broadband market (EXHIBIT-

1).

Wateen uses MOTOwi4 WiMAX by Motorola. Other partners include Cisco, and Intel.

Wateen is giving CPEi 600 & CPEi 300 to its indoor usage while CPEo400 for outdoor usage

to its customers.Now offering its services on easily portable USB Dongles. Wateen give the

solution for the customers needs by giving the multi packages in the product lines

(EXHIBIT-2).

In mid 2007 it was separated from Warid Telecom and come with its own new identity. In

2007 it has approximately 1500 employees were present but today the number of employees

reduced upto 1000 due to the turnover of employees and downsizing policies of human

resource department.

“The Wateen management is aware of the fact that only a satisfied

worker can provide the required level of services to the customers. The

branch firmly believes that a highly motivated and well-trained

workforce is the key factor to success”.

When the employees were downsized in 2009 and people leave the company in 2010, GM of

HR department in WTL Zafar Iqba and other main heads of the department conduct the exit

interviews and after that they find out that employees are not satisfied with the job and from

the company. But what is the reason they want to know.

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INTRODUCTION OF PAKISTAN TELECOM INDUSTRY:

At the time of independence, Pakistan inherited a meager 14,000 land lines. Now, there are

over 94 million mobile phone connections in the country. The huge growth in Pakistan’s

telecom sector is characteristic of many developing countries. It is primarily meant to serve

the administrative puposes only. During the 1970s, the government had sanctioned two

phones per senator to be given to people in their constituencies. The 1980s saw heavy capital

investment to develop the telephone sector, which eventually resulted in the formation of

Pakistan Telecommunication Corporation Limited (PTCL) and the introduction of cellular

mobile services in the 1990s. in 1991 instaphone comes and after that mobilink. Ufone,

warid, zong (paktel), telenor and wateen entered in this industry and play for more market

shares bt providing unique products that satisfy the customer needs. Today is the age of

responding the world fast so the use of WIMAX increased and having 29% of total Market

shares (EXHIBIT-5).

INTRODUCTION OF WATEEN TELECOM:

Wateen Telecom is the Abu Dehbi Group’s latest venture in Pakistan. After the successful

launch of Warid Telecom in Pakistan, which has a subscriber base of over 10 millions

customers in 145 cities, Wateen Telecom has been setup to become the leading “Carier’s

Carier” providing services based on quality, reliability and affordability in the

communication and the media sectors. Wateen is committed to bring the Next Generation

services to your doorstep…. Today.

Wateen Telecom, Pakistan is largest communication company in the private sector has

become the detrimental catalyst that has rampantly moved forward the country into the digital

revolution with its ability to seamlessly connect and enable smarter, faster, cost-effective and

flexible communication solution to reach its valued customers.

Wateen offers a complete range of carriers class telecom and multimedia services like fixed

wireless and line telephone, always on broadband for data, internet/multimedia along with a

host of other value-added services and application to set the standards for a new era of

communication and entertainment in Pakistan. Wateen Telecom have the services that are not

present in other telecom companies because it is a full telecom services provider company

(EXHIBIT-3).

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Wateen continue to build on the heritage of its company – The Abu Dehbi Group. We believe

in the leadership through people. Our technology and the service-delivery strengths stem for

our valued employees who have joined Wateen from all over the world to earn customer trust

and loyalty with a continuing commitment to the deployment of innovative products and

services, reliable, high quality service and excellent customer care.

Vision:

To launch Pakistan into the 21st century digital revolution by providing complete

communication solutions to Telecom Operators, Corporate, Consumers and to be the leading

“Carriers’ Carrier” by creating a world-class cutting-edge network to deliver a broad range of

reliable, affordable and quality customer-centric services.

Mission:

To provide affordable communication services that meets and exceeds customers'

requirements

To deliver high-quality, flexible and innovative solutions that are cost effective and

conducive

To provide complete customer satisfaction on time, every time

Make ‘Broadband Pakistan’ a reality.

Achieve maximum customer satisfaction at all levels.

CULTURE IN WATEEN:

Waten has a unique environment to work for since it houses a diversity or skills, background,

viewpoints and experiences from around the world. It is ensured that hiring is on merit, skill

and ability, without regarding to race, color, religion, sex, national origin, age, marital status,

or any other classification.

Wateen Telecom is building and integrating the next generation of intelligent, converged

networks with a plethora of key services and differentiators in the market. The primal

objective is to become a carrier’s carrier and provide turnkey solutions for all customer

requirements and specifications. At Wateen Telecom we are seeking innovative and

intelligent people to help us design, market, sell and support our innovative & intelligent

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product portfolio to a diversified evolving market. We strive to hire only the best, create an

exhilarating work environment and above all else, respect each individual's unique

contributions.

An organizational culture has following elements.

Organization environment:

Organization values:

Organizational rites rituals, and customs:

Cultural transmitter

Wateen provides best conditions for work. There is decentralized system but data is recorded

at single place that is Lahore, Pakistan. Problems are created by using Bottom-Up strategies.

Wateen respect each one’s creative and unique contribution. With all of this Wateen

employees expect more.

HR DEPARTMENT FUNCTION:

The active role of HR at every level lead towards the enhancement of skills, leadership

qualities, operations, interpersonal skills, analytical skills and career development of the

employees according to their needs of job. It is the important department in WTL. It perform

the staff function for the other departments in organizing the employees and make them

efficient. HR department involve directly to manage the employees affairs and perform the

different functions i.e care about the employees by guidance and support , develop discipline

strategies and develop opportunities for the employees and the manager to maintain the

developmental goals at individual levels and match that with the overall organizational goals.

HR department continuously make efforts to improve the culture by making considerable

change, selection processes of employees, make standards for jobs according to meet the

world overall challenges and ensure that the people at every level is devoted and willing to

achieve the organizational goals.

Hiring of employees:

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

skills and education to meet the challenges of the market.

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It is ensured that hiring is on merit, skill and ability, without regarding

to race, color, religion, sex, national origin, age, marital status, or any

other classification.

Wateen prefer best hiring for best people but devote less recourses on there selection

procedures. It hire by itself. Wateen prefer diversity because every type of people having

different and unique skills and culture reflect this. Over the last years Wateen used different

processes to select and hire the people.

For specifying the job special type of job analysis is conducted but applicant appraisal/evaluation forms;

applicant appraisal/evaluation forms;

not for the person. While 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 employment procedures such as training, selection,

compensation, and performance appraisal. According to that job after analysis job description

is explained (Exhibit-6).

Recruitment and Selection at Wateen:

Procedure is started when different departments communicat with the HR department for the

specific job requirement person that they required. Selection of best people for the specific

job selection is performed by different formal and informal methods. But devote less sources

on selection because financially company has not a good position (EXHIBIT- 4).

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 advertised the job on website and collect people data on that. It

also give advertisement on the other sources on the internet.

Internal sourcing: The selection for higher level staff internal sourcing is used. If internally

employee is available for the job the he is promoted and the vacant job is fulfilled by other

sources.

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Employees referrals: Staff having refer friends and family members for the vacant job at

middle and lower level positions in the company. But it is not well effective for the overall

performance of the business.

Newspaper advertisement: Wateen also mentioned the job at newspaper but applicable

apply through internet.

Compensation Plan:

In the Wateen Telecom compensation is good for higher levels and but the lower rating not

given proper importance for competing the future in the company. For the top levels benefits

are also given and salary normally distributed upto Rs. 500,000/- and for the lower levels is

upto Rs. 12,000/- (EXHIBIT- 8).

Promotional plans:

Promotion is very important for the employees for retaining them in the company. For the

employees of Wateen long wait for next positions and increase in the status.

Performance Appraisal:

There is no proper record of the employees in the Human Resource Department for doing the

proper performance appraisal. So employees are lazy for doing work to achieve the goals and

turnover rate is high. Applicant appraisal/evaluation forms are used for performance

evaluation.

Training and Development Plan:

Training is very normal routine for the employees but it is not related very much skilled base

it is oral and promotion criteria is not well defined for the specific job.

CURRENT SITUATIONS:

HR department is playing good role for selecting the employees. In 205 Wateen was

established as a part of Warid telecom and functions are same in the single HR department. In

mid 2007 it was separated from Warid as a subsidiary. Tariq Malik was the CEO of the

Wateen at that time. After having a separate identity Muhammad Farukh Saddique was the

manager of HR department and make a policy to hire new and competitive employees. He

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hired a large amount of people at Wateen. But at the same time they outsource the services

for the new projects i.e Huawei for the installment of the network in the Pakistan.

In 2009 company make decision for expansion to declair IPO’s in the Karachi Stock

exchange. In mid 2009 before IPO’s declairation 50% employees were fired after the exit

interview conducted from those employees . After that company listed in KSE as a private

limited company. This period of downsizing brings with it incredible anxiety for everyone. 

Both managers and employees have to "get through" this period where downsizing is

announced and individuals are notified. In 2010 after IPO of the company 200 employees

resigned from the company and it includes the top management of the company with saying:

“No salary yet, fuel cards blocked since months, bonus not yet

transferred, we are in big problem”

CEO Mr. Tariq Malik also resigned from his position. He was honored with one of Pakistan’s

highest civilian awards, the Sitara-e-Imtiaz in 2005 in recognition of his role in various facets

of 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 Tahir

and Pervez Shahid have reportedly resigned from their positions. On other side, Mr. Pervez

Shahid was the top person for Warid, Wateen and Bank Alfalah in Pakistan. Officially he was

executive in-charge of strategic planning division, Bank Alfalah and authorized power of

attorney holder for Warid Telecom. Both of the brothers were running all the Dhabi Group’s

business activities in Pakistan, which includes: Wateen, Warid, Bank Al Falah, UBL, Raseen

Telecom, Razi Health Care, a Sugar Mill, a construction company and more. Board Director

at Wateen Mr. Zouhair Khaliq is flying to Pakistan to look into matter. CEO Bank Al Falah

and Warid are already in Dubai to discuss future strategy and policies. It is expected that Mr.

Zouhair Khaliq will become the top guy from the group in Pakistan.

A message, coming directly from Sheikh Nahyan bin Mubarak Al Nahyan, Chairman Abu

Dhabi Group, has been sent to media, which explains the situation after ongoing changes in

the group at management level. Chairman Dhabi group said that Mr. Zouhair A. Khaliq will

serve 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 of

Wateen.

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The culture of the Wateen build on decentralization system but when employee some benefit

from the company then move through a long and centralized process. The overall turnover

process increased from 2009 to 2011. It has direct impact on the profit of the company. The

total reserved decreases with the years passed (EXHIBIT-4).

FUTURE PROSPECTS:

Abu Dhabi Group is considering some options in agriculture and power sector. Wateen

Telecom (WTL) Director Pervez A Shahid said that the Group could have set up its own

satellite if circumstances had allowed, it reduces the overall cost of the Wateen Telecom. It is

also decided to established the optical fiber network with Netherland that is under sea system.

About future earning prospects of Wateen, he said that Wateen has sold out only three pairs

out of 24 of its 10,000 km long fibre optic, and its total capacity is heavily utilized. Wateen is

in negotiations with different companies for selling its rest of the capacity and one can

imagine if even some part of the rest of the capacity would be sold out, he added. Moreover,

it has outclassed the rest of competitors by winning majority projects offered by the

government of Pakistan under Universal Access program in low developed areas.

Zafar Iqbal is th General Manager of HR department in Wateen today has a great challenge to

meet the future prospects with increasing turnover rate. By seeing all the situations and

turnover rate after Initial Public Offering worried that how he decrease the turnover rate for

the future growth and satisfying the customer needs.

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EXHIBIT-1

EXHIBIT-2

10

EXHIBIT-3

EXHIBIT-4

11

EXHIBIT-5

12

EXHIBIT-6

JOB SNAPSHOT

 

 

 

WATEEN TELECOM

Job Description

 

Position Title

Reports To      

BPS

Date of Issue

Head of Transmission 

COO, WATEEN HQ           

19

01-01-2009

Department

Job Location              

Employment Type     

Area of Jurisdiction   

Transmission

WATEEN HQs

Regular

Transmission

EXHIBIT-7

13

Departmental Hierarchy of

Wateen Telecom

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EXHIBIT-8

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• Job Position: Top Level (Exceptional Cases)

Net Salary:Up to Rupees.

800,000/- Per Month& NormallyRupees (450,000-500,000) Per Month

• Job Position: Middle Level Net Salary:

Normally Rupees (15,000- 60,000) Per Month.

• Job Position: First Line Level Minimum Salary: Rupees. 8,000/-Per Month