Table of Contents:

ACKNOWLEDGEMENT:

EXECUTIVE SUMMARY:

INTRODUCTION:COMPANY PROFILE……………………………………………………………INTRODUCTION………………………………………………………………....VISION……………………………………………………………………………..MISSION…………………………………………………………………………...OBJECTIVES………………………………………………………………………CUSTOMER SERVICE…………………………………………………………...ORGANIZATIONAL STRUCTURE…………………………………………….

Ufone Management Profiles Mr. Abdul Aziz President & CEO Mr. Mohammad Nadeem Khan Chief Financial Officer Mr. Naveed Khalid Butt Chief Officer Government & Regulatory Affairs Mr. Ahmad Kamal Chief Officer Customer Services Operations Mr. Jafar Khalid Chief Technical Officer Mr. Faisal Khaliq Chief Information Officer Mr.Younas Iqbal Sheikh Chief Officer (Sales & Distribution) Mr. Akbar Khan Chief Marketing Officer Mr. Muzzammil Sadiq Chief Officer Procurement, Contracts and Administration Mr. Moqeem Ul Haque General Manager Corporate Strategic Planning & PMO Mr. Mohammad Zahid Qureshi General Manager Administration

Organizational Structure………………………………………………………..Structure of the organization……………………………………………………Financial Position Analysis………………………………………………………..

Market Share Revenues Investment

Marketing Goals……………………………………………………………………PROMOTION………………………………………………………………………

Strategy

Advertising Advertising Objectives Advertising Budget Advertising Strategies Advertising Message Advertising Media

Print Media Broadcast Media Display Media Online Media Events Ad Shoots Personal Selling Direct Marketing

Market shares of Ufone…………………………………………………………….

Expansion…………………………………………………………………………...

Human Resource Assessment at Ufone…………………………………………...

Recruitment at Ufone Internal Recruitment External Recruitment Direct Applicants Referrals Advertisements Private Employment Agency Through Vendors (Outsourcing) Electronic Recruiting Recruitment Procedure Replying To Candidates Scheduling Interview Screening Process Goals of Ufone HR Department Responsibilities of Ufone HR Department

PERFORMANCE MANAGEMENT SYSTEM………………………………….

Objective of the Performance Management The Performance Appraisal Process Performance Appraisal Method Use by UFONE Rewards Related to Performance

COMPENSATION AND BENEFITS…………………………………………….

Compensation Workplace Programs Individual Salary Fixation Current Base Pay: (Job Based Structure and competitive Total Compensation Assistant Manager Level Manager level Senior Manager Food Subsidy Increments Recognition of The work Permanent Employees

Minimum wage Medical Allowance Health Insurance Loan Insurance Transport allowance House Rent Overtime EOBI Children Education allowance Provident Fund Leaves Travel Policy Meal deduction Claims Expense Claim Overtime Claim Medical Claim Mobile deduction Claim Dispatching of Salary Slips

Job Involvement and Organizational Commitment……………………………...

Workgroup behavior

SWOT analysis is an overall evaluation of the company’s………………………

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

CONCLUSION……………………………………………………………………………………RECOMMENDATIONS...............................................................................................................

ACKNOWLEDGEMENT

First of all we are thankful to Almighty Allah who gave us strength for the completion of this project. And secondly thanks to our respected Sir Ali Asghar who directed us to focus really on the HR issues and department in a very effective way.

EXECUTIVE SUMMARY:

Ufone is the leading organization in the cellular industry. They have 1500 plus employees. At their head office they had 150 employees. They have many branches in different cities of Pakistan. There is open door policy prevailing at Ufone. They really care about their employees and for the improvement of HRD they continuously conducting training workshops, which are both on the job and off the job. They do there recruitment through online and also through newspapers. They use both internal and external recruitment. All the recruitment and hiring is done from the head office.

They are using a HRIS, which is a great sign for any organization especially like Ufone who are through their expansion. They do screening interviews, employment tests, job offers etc for the appointment. They also give their new entrants orientation so that they get familiar with the environment of the organization. The immediate supervisor evaluates performance. The probation period is 6 months. There are no unions in the organization.

The style of management at Ufone is different from the traditional organizations, Ufone has adopted participative management. This type of management creates a sense of ownership among the employees. There are no workingwomen issues in Ufone, and women consist of 20 percent of total work force of Ufone. The Hr department at Ufone also manages grievance. Ufone provides perfect environment for employees to work efficiently to gain experience and to add worth to the organization.

INTRODUCTION:

COMPANY PROFILE:

Pakistan Telecom Mobile Ltd, operating under the brand name of ‘Ufone’ a wholly-owned subsidiary of PTCL commenced its operations on 29 th January 2001 as a GSM 900 service provider. Since the outset it has expanded its coverage and customer base at a rapid pace and established itself as one of the leading cellular service providers in Pakistan. Ufone is now considered to be one of the most active, aggressive and innovative players in the mobile sector of Pakistan.

The growth of cellular sector in Pakistan can also be attributable to good governance and conducive policies of the government of Pakistan. In connection with that in April 2006 Emirates Telecommunication Corporation, which is commonly known as Etisalat, has assumed management control of Pakistan Telecommunication Corporation Ltd – part of the $2.6bn deal to buy a 26% stake. The successful privatization of PTCL, and consequently Ufone, is hailed as ushering in a new era for telecommunications in Pakistan.

As mobile users in the country have reached 88 million at a very rapid pace, Ufone has a subscriber base of nearly 17.5 million and a market share of nearly 21%. Ufone has seen a subscriber growth of over 10 million since July 2007 onto its network. Subsequently the growth in subscriber base caused a healthy trend in its revenues and margins.

Ufone has always played a pivotal role in the development of cellular market in Pakistan. For most part it has been a step ahead in introducing innovative products to the market. Ufone was pioneer in launching the GPRS services and Multimedia Messaging services (MMS) in Pakistan, including the lead in introducing GPRS international roaming and prepaid international roaming for these services in the Pakistani market. Currently Ufone has expanded its product portfolio to include Black Berry handsets and providing one of the largest EDGE networks in the country today.

Ufone understands the need to communicate effectively and efficiently at all levels of society, which is why various products are catering for the needs of the Pakistan corporate market. It offers services such as mobile office, virtual private network (VPN), and a lot more too revolutionized communication.

Ufone provides international Roaming facility with more than 215 international operators across 124 countries. Ufone has PRS roaming agreements with more than 100 international operators and also provides prepaid roaming facility to more than 15 destinations across the country.

INTRODUCTION:

Ufone commenced its operations, under the brand name of Ufone, from Islamabad on January 29/2001. Ufone expanded its coverage and has added new cities and highways to its coverage network. After the privatization of PTCL, Ufone is now owned by Etisalat. Under the agreement. Huawei will provide its future-oriented Energ GSM solution to expand Ufone’s network to cover 1500 cities, towns, villages, and all major highways in the country. The network also allows Ufone subscribers to enjoy high speed wireless data service. The GSM contract for Ufone also include huawei’s new generation GSM dual density BTS that feature high integrated and receiving sensitivity to improve the network performance and lower the cost

of network construction and O&M expenditure. In addition, Huawei will provide Mobile Softswitch solution based on the advance R4 architecture to satisfy Ufone’s Network expansion requirements, enables the telecom service provider to evolve into 3G smoothly. Ufone markets its prepaid services as “Prepay”. Ufone prepay is more affordable. Its primary market is intended towards teenagers and students. Posta pay services are marketed by the name “Post pay”. These services are mainly targeted towards the business community of the country. Ufone has a subscriber base of 12.498 million as on April 2007 and has network coverage in more than 166 cities.

VISION:

“To be the leading telecommunication service provider in Pakistan by offering innovate communication solutions for our customers while exceeding shareholder value & employee expectation.”

MISSION:

“Ufone it’s all about u! We are, where you want to be…………..At Ufone we aim to provide you with wider coverage, superior connectivity, clear signals & voice quality. Wherever you are, Ufone keeps you connected”

OBJECTIVES:

Ufone because it is a dynamic organization with a powerful culture that allows people to make the most of their skills, personality and career. I developed such knowledge and skills which directed to my career.

CUSTOMER SERVICE:

Ufone is proud to have an efficient and friendly customer service through 21 company-owned Sales & Customer Service Centers and nearly 250 franchisees across the country. The outlets are able to service the customers with innovative solutions, and are empowered with Web based franchise management systems. Ufone is poised to face the ever increasing challenges of the market and is confident it will attract new customers. It has the ability to retain its existing customer base with a high level of customer satisfaction via optimum network service and a 24 hour call center facility.ORGANIZATIONAL STRUCTURE :

Ufone Management Profiles:

Mr. Abdul AzizPresident & CEO

 

Mr. Abdul Aziz has rejoined Ufone as President & CEO in December 2007. A fellow Chartered Accountant, he has over fourteen years of experience in the Telecom Industry both local and International including Europe, Asia and Africa.

During his career he has held various senior level positions with companies including Warid Telecom, Millicom International, S.A., Ufone GSM and Celtel International. Mr. Aziz, being first CFO/Cosec was a key member of the Core Team which launched Ufone in 2001.

 

Mr. Mohammad Nadeem KhanChief Financial Officer

 A Fellow Chartered Accountant Mr. Nadeem Khan has

around 12 years experience in the telecommunication industry both locally and internationally. He holds a diversified portfolio as international auditor at MIC, Luxemburg and served in the capacity of Financial Controller in Millicom Cambodia before joining Ufone as Chief Financial officer (CFO) in 2003.

  Mr. Naveed Khalid ButtChief Officer Government & Regulatory Affairs

 With over 15 years of commercial & technical experience

in the telecommunication industry, Naveed Butt has worked on senior management positions with various cellular operators in Pakistan.

An engineer by profession, Naveed has done his B.E. in Electronics from U.E.T, Lahore. Presently he is heading the Regulatory Affairs departments at Ufone.

Mr. Ahmad KamalChief Officer Customer Services Operations

 

Ahmad Kamal has rejoined Ufone as Chief Officer Customer Services Operations. In his previous tenure of approximately 5 years at Ufone, he was part of the Ufone Core Launch team and was responsible for the development of Customer Services Operations department.

He possesses a cumulative experience of over 20 years in Telecommunication Industry of Pakistan. He has the exposure of previously working for country’s most renowned telecom companies including Digital Communications, Mobilink, Ufone, DVCOM and Warid where he had established his mark in Customer Operations, Sales, HR and Administration fields. In his last assignment at Warid, he was heading the Customer Services and Product & Services Departments.

 Mr. Jafar KhalidChief Technical Officer

 

Mr. Jafar Khalid is working as the Chief Technical Officer of Ufone since June 2008, and has over 14 years of diversified experience in the telecom sector. He has a proven background in successfully managing large-scale cellular projects, leading Network Planning, Operations and Implementation initiatives, establishing and improving Organizational Processes & Structure, and aligning technical activities in line with business strategies.

Before his appointment as CTO, he served as the Project Director & General Manager Network Planning in Ufone, and has held various senior technical management positions with his last employer Mobilink, where he was serving as Director Access Network Planning before joining Ufone.

Mr. Faisal KhaliqChief Information Officer

 Mr. Faisal Khaliq is the Chief Information Officer of

Ufone since June 2008. Faisal has a Masters Degree in Computer Sciences from the University of Texas at Austin. He is also a Project Management Professional (PMP) with 12 years of experience in the IT industry.

Prior to joining Ufone, Faisal was the Managing Director for Teradatas Global Consulting Center in Pakistan which is one of the largest offshore operations its kind for a multinational in Pakistan.

 Mr.Younas Iqbal SheikhChief Officer (Sales & Distribution)

 Mr.Younas Iqbal Sheikh heads Sales & Distribution at

Ufone (PTML) and has a rich working experience of 20 years most of which is in Telecom Sector serving companies like Siemens, InstaPhone, World call, Mobilink ,Wi-tribe (Qtel) & Ufone (PTML). In his career he has played a key role in the areas of Sales & Distribution, Customer Services, Operations and Marketing, throughout his career he was given challenging responsibilities, for instance heading 2 countries with a team of thousands and portfolio of Billions.

He performed major successful overhauling with self-initiatives for Process-Re-engineering in the areas of; Sales, Channel Development, Customer Services, Business Operations and was a major contributor in developing complete business launch plan for Wi-Max services business in Pakistan for Wi-tribe Pakistan (Qtel).

 Mr. Akbar KhanChief Marketing Officer

 Akbar Khan heads the Marketing Division at Ufone. He has been part of the Pakistan telecom industry in key roles since 1998. Before joining Ufone in 2008, Akbar was Head of Brands at Mobilink and before that he was Head of Marketing at Paktel Limited. Akbar has done his MBA degree from IBA Karachi.

Mr. Muzzammil SadiqChief Officer Procurement, Contracts and Administration

Muzzammil Sadiq has a Bachelors degree in Engineering from Cornell University and a Masters degree in Management Studies from Oxford University. He is seconded from Etisalat where he is the Group Vice President Procurement – Special Projects. He has over 19 years of multi-disciplinary and multi-national practices gained in Research & Development at Toshiba Corporation, Japan, Strategy Consulting at Bain & Co, USA and Australia, Commercial and Manufacturing analysis at Pirelli Cables, Australia, Revenue Assurance and Corporate Finance at Cable & Wireless and SingTel Optus, Australia and Marketing, International Investments and Procurement at Emirates Telecommunications Corporation – Etisalat, UAE.

 Mr. Moqeem Ul HaqueGeneral Manager Corporate Strategic Planning & PMO

 Moqeem Ul Haque is associate member of the Institute of

Chartered accountants of Pakistan. He brings in thirteen years of extensive experience of working in the cellular industry. He was among one of the pioneers in Warid telecom. Moqeem has also served in Mobilink.

Mr. Moqeem heads the corporate strategic planning function as well as supervises the special projects of the organization.

 Mr. Mohammad Zahid QureshiGeneral Manager Administration

Mr. Mohammad Zahid Qureshi has over 12 year experience in telecom industry. Mr. Qureshi has been associated with Paktel and later Ufone for quite sometimes.

He participated actively in successful launch of Ufone services in Lahore & Faisalabad.

His core competencies and the areas he holds expertise in includes Sales, Services and Administration. He has played an instrumental role in launch of product and system development for Ufone.

Mr. Qureshi has done MBA from Punjab University, Lahore.

Structure of the organization:

In Ufone the hierarchy is very lean, in general the whole setup is centralized, all the matters are to be reported to the main company and all the policies and targets are approved at the higher level. But at the department level the structure is decentralized.

Group analysis: in our point of view this hybrid org structure this best structure which best suits fast changing industries specially cellular industry. Because to make work formally done hierarchy should be there so that people have a head on them to whom they are suppose to report, not only this lower management a lower non managerial people need leaders or someone to guide and look after them from higher level. While such industries like cellular industry such people are required who are creative as Basharat Ullah Khan told us that In our industry we need creativity, speed, execution, written communication, attitude, knowledge & skills that’s why we prefer new and young talent that’s why we hire fresh graduate each year. so unless and until people don’t have freedom to express their views and purpose new ideas such organization can’t grow , and to support this view within each department people should have decision making power and this can be done by decentralizing.

Financial Position Analysis:

Market Share:

According to the financials results of all cellular companies Ufone captured the market share 20.56% into 2008. Market share in 2009 was 21.20%. Increase in the market share of Ufone from 2008 to 2009 was 0.64%. Above financial figures show that market share is increased smoothly.

In highly competitive sector, market share is termed to be a strong parameter to show degree of competitiveness in the sector. For a long time, Mobilink remained the market leader with a significant difference, both in terms of subscribers and revenues with rest of the operators. The PTA also declared Mobilink as an SMP operator in the mobile market. However, with new operators settling in and addition of ZONG in the local market has changed the market share structure, though Mobilink still holds highest share. Now subscribers have more choice, better options and attractive facilities like MNP.

Thus, the companies are adding new subscribers, but at the same time they are also losing the existing subscribers in favor of other operators. Figure-1 shows share comparison of each operator in terms of total subscribers during 2007-08 and 2008-09. Mobilink lost its share by 15% this year whereas the rest of the operators show increase in their market share. Telenor has the second highest share in the market (22.2%) in terms of subscribers followed by Ufone (21%) and Warid (19%).

Analyzing the market share of each operator by revenue (Figure - 16), Mobilink remained the leader, again followed by Telenor and Ufone. During the reported year, all the companies lost their share in total revenue of the industry except Ufone and Zong as their shares appreciated from 15% to 19% and 1% to 4% respectively.

Revenues:

Due to huge amount of sales Ufone‘s revenue in 2008 is 15% which was increased to 18.86% in 2009. The increase in revenues is almost 3.86% which was almost huge increment from than that of its competitors.

a major share of 64% in the total revenue of telecom industry. Today, the total revenue of mobile segment stands at Rs. 212 billion. Although there is an increase in the revenues by 16.6% this year; but the last year, the growth was over 40%. As far as financial health of the companies is concerned, it was noticed that only Ufone made profit of around Rs. 1.7 billion, and the rest of the companies faced losses. Double digit inflation and taxes could be major reason besides other factors mentioned earlier. Particularly the rising petroleum prices along with power shortage and high advertising costs put extra burden on operator’s expenses.

Among the operators, Zong performed exceptionally well in terms of increase in revenue, where the company's revenue grew three times of its actual revenue of the last year. Ufone exhibited improved growth of 45% in its revenue. Warid, Telenor and Mobilink's increase in revenue remained slow and steady during the reported period. As for Ufone's financial health, the company seems to be in total control of its finances and it is managing its financial resources very prudently.

Investment:

Investment in 2008 was US$ 27455 million and in the next year 2009 the investment increased from this point to US$ 40660 million, which shows that investors are financing in Ufone and Ufone is developing interest of investors in financing. Pakistan has been an investors' heaven especially for telecom sector for a few years. The investor friendly environment makes the country home to world telecom giants like Orascom, Telenor, Warid Telecom (Abu Dhabi Group), Singtel and the latest addition of China Mobile. These companies had been investing heavily in rolling out their networks with a pace that more than 90% of Pakistan has been provided with telecom facility within just three years.

Although the reported year did not prove to be very exciting one for the operators, and the total investment decreased by 48% but the operators are taking it as a temporary setback. Even in such a discouraging situation, the companies like Zong and Ufone have increased their

investment in the reported year. Zong plans to invest US$ 500 million more or so in the coming year to roll out the infrastructure all across the country.

We hope that investment in the sector will further increase with the introduction of 3G.While looking at individual investments, Mobilink has substantially cut down its investment to more than 70%, followed by Telenor and Warid reducing investments up to 33% and 65% respectively. The major contributor to the total investment made in the mobile segment turned out to be Telenor with a total of US$ 374 million.

Marketing Goals:

PROMOTION:

Ufone believes in Integrated Marketing Communication which is a carefully blended mix of promotion tools. Ufone employ different marketing activities and channels to communicate and deliver value to customer. These activities are coordinated to provide maximum communication output. These communication channels includes:-Advertising, sales promotion, public relations, direct marketing & personal selling.

Ufone strategize to carry out promotion in order to increase its market share.

Strategy:

Advertising:

ADVERTISING OBJECTIVES:

Ufone use advertisements when…It has to inform the customers about new or available servicesIt seeks to persuade people to purchase their service or switch to their connection from any other connection

ADVERTISING BUDGET

Ufone is a heavy spender on advertising in electronic media as well as other media. Recently Ufone invested a huge amount on mass advertising. It was definitely a risk to take such decision. They are developing and playing new advertisements on electronic media not even with a month’s gap or so.

A single Ufone advertisement played 15-20 times per day on a TV channel costs millions varying with the time of day when it is played. Ufone spends 20% of its profit on advertising and sales promotion.

ADVERTISING STRATEGIES :

Advertising strategy consists of two major elements: Advertising Message & Advertising Media. Ufone has the following strategies regarding the Message and Media of advertising:-

ADVERTISING MESSAGE:

Message Content --»The very first content of Ufone’s advertising message was humor, and then in its blooming stage it shifted its message content to youthful excitement. Recently Ufone has again adopted humorous theme for its message content. This time Ufone is winning the hearts of people through humor and it has increased RPI of Ufone. Ufone has already generated much revenue through it.

Message Format --»The format of Ufone’s advertisements has always been very colorful and eye catching. The shocking Orange & Green colors used by Ufone have always attracted people. These colors look beautiful on wall printing of Ufone.

Message Source --»The very first Ufone advertisements had Faisal Qureshi as its message source. Afterwards Ufone hired non-celebrity young models for its youthful message theme. Ufone also hired three lollywood queens i.e. Meera, Jia Ali and Veena Malik with Mikaal in an advertisement of “Baat Ban Jaye”. This advertisement created a big controversy regarding the erotic and sexually attracting acts by the three female models. Due to negative response by people Ufone had to vacate its billboards and eradicate its banners, posters etc overnight, as directed by CEO and CMO of Ufone.

But now Ufone has again hired a comedian trio featuring Faisal Qureshi, Mikaal & Hammad. The strategy behind hiring this trio is that they are economical and are personal favorites of people. Ufone always hire endorsers in group

Mr.Waqas Anjum (Senior Marketing Executive-Multan) is of view that you must bring changes in marketing to attract customers. For this purpose Ufone is re-launching itself under the name of one single brand called “UFONE”. This brand would have Orange & Black as its corporate color instead of conventional Orange & Green color.

ADVERTISING MEDIA:

To increase the reach and frequency of advertisement Ufone is using repetitive strategy for its advertisements. And the humorous theme always makes the ads more appealing and engaging the minds of customers. Ufone advertise in the following media types:-

Print Medi a:

Ufone tries and print ads in all leading newspapers including The Dawn, Jung, Nawa-i-Waqt, Khabrain and local Sindhi newspapers as well. Ufone place its ads in all leading magazines as well i.e. Sunday magazine, akhabr-e-jahan, Libas, Mag etc

Broadcast Media :

It is the prior choice for Ufone. It includes the electronic media television and radio. Ufone is advertising in all Pakistani channels including GEO, Hum, ARY, Indus, TV one, HBO, Cartoon Network etc (except MTV Pakistan). Ufone also plays its ads on local channels like WASEB and Punjab TV.

Display Medi a:

This type of media is the second choice of Ufone where it carries out its most of sales promotion and advertising. Ufone advertise using billboards, hoardings, signs (on Shop boards etc), posters, wall paintings etc. SME Multan has used a new and innovative vehicle in display media i.e. Ufone’s painted rickshaws

Online Medi a:

Internet is the online media. Ufone places flashing ads on famous portals like coolbuddy.com, pakfellows.com etc. But Ufone is not carrying out direct mail or direct e-mail advertising

Event s:

Ufone has sponsored many events in the past and holds future plans concerning it. The famous event sponsored by Ufone in 2006 was a series of musical concerts did all over Pakistan, featuring Mikaal Hassan and Junoon, it named UROCK

AD SHOOT S:

The ads of Ufone are shot mostly within Pakistan. But the PostPay ads are shot in foreign locations. Recently Ufone shot in the picturesque locations of northern areas of Pakistan in its advertisement of UWON “sabse sasti call”

Public Relations : Ufone is less conscious of developing its general public relations. But recently it has launched its “Hajj Guide” service on Ufone. It avoids getting in news stories and controversies but sometimes it proves inevitable.

Direct Marketing: Ufone employ on-road umbrella franchises where the directly market and sell their connections and Sims.

Personal Selling: Ufone administer personal selling facility to sell their Post Pay connections targeting well to do people and businessmen.

It won’t be an exaggeration to say that Ufone has placed itself where it is now through brilliant promotions.

Market shares of Ufone:

According to January 2010 market shares of telecom companies in Pakistan are as follows…………………….

Expansion:

Keeping in view the growth potential of the cellular industry there is no option but to be aggressive in order to remain a potent force in the cellular industry. In order to extend cellular network to new cities, towns and highways and enhance its current installed capacities in existing cities, Ufone has finalized a huge network expansion contract amounting to about USD 550 million, which will enhance the subscribers’ capacity by 10 million. This is the largest ever expansion project of Ufone.

A strong focus will be on maintaining high quality of service, which is always a benchmark of Ufone, increasing usage and exploring new revenue streams on value added services, market visibility through various market initiatives to fulfill subscribers’ satisfaction and demand and above all to increase the value of investment for the shareholders.

Human Resource Assessment at Ufone:

Qualified professionals from outside have been hired/are in the process of being hired, primarily to adopt customer-oriented approach with a view to strengthening customers' loyalty as well as to increase market share.

Many monitory and non-monitory incentives are provided to the employees for the purpose of, motivation, and retention. Company perks, paid leaves (in certain cases) and medical benefits are a few to mention. In spite of these measures employee retention is quite low at Ufone. A lot of new employees, both at managerial as well as non-managerial levels are found leaving the organization after just a few months of joining. Similarly new employees are hired to take their places.

One of the reasons lies in the fact that although the company is providing its members with a lot of benefits, the work load on them is very high. Employees work for longer than just 9 to 5:30 (the official work timings). Sometimes even staying for as long as 10 at night - especially during a busy season (year end etc) or at the launch of a new campaign. Due to this many employees find themselves unable to create a balance between their personal and professional life and thus avail the first better opportunity out!

Also since the telecom industry is still at its growth stage and a recent entrance of three new telecom service providers in the local market, many experienced employees find themselves with more and better job opportunities

Recruitment at Ufone :

Before recruiting a new employee, management checks whether there is a need to hire a new employee for that particular job or whether it can be incorporated into an existing employee’s job. Recruitment in Ufone may be of internal or external nature.Internal Recruitment :

In the case of internal recruitment people from within the organization are promoted to fill the vacant vacancy. The HR department and the relevant department in which the vacancy exists, analyze whether there an employee within the organization exists, who most appropriately meets the requirements of the particular vacancy. If more than one employee is eligible for the vacancy; then that employee is chosen who has the most outstanding record. After the promotion

The employee may be sent for further training. The effect of internal vacancy is that it motivates the employee to perform their best and produce maximum output. It also creates a healthy competition amongst the employees. The hiring from within may have a trickledown effect i.e. the opportunities spring not just from the first vacancy but from the vacancy created when a person in the company fills that vacancy.

External Recruitment :

If the organization feels that none of their current employees can fill out the new vacancy then they hire from external sources. In this case the human resource management considers other departments in the organization that might be interested in the appointment in order to make it a joint effort. They talk to relevant supervisors and especially to the people the new person will work with. A set of expert panelists is then selected from each relevant department to interview applicants

Direct Applicants :

Ufone maintains a data base system i.e. HRMS (Human resource management system) for its internal employees as well as the employees which they will recruit in near future. In some case certain some people just drop their CV’s at the head office. And whenever there is an opening or a vacancy occurs, the organization may call them for an interview.

Referrals :

By advertising a post internally Ufone gains an added benefit, which is; the current employees may pass the information on to any interested friends and relations. Word of mouth is also a valuable recruitment method for them and they draw on all appropriate contacts they have

Advertisements :

Since most of the posts are of a specialist nature, they intend on advertising in the journals of professional bodies and the trade press. Their next step is to find out how much adverts cost for varying amount of space and decide what they can afford.

The HR management has hired the services of Interflow, an advertising agency, to propagate their service and company for them. They are also using the services of a web designer, Eveready media, to post the advertisement of the company on the Internet.

Private Employment Agency :

The private Recruiting agencies collect information from unemployed as well as employed people about their skills and experiences. These agencies attempt to find some one suitable using its computerized inventory database of suitable individuals. These agencies charge Ufone for the referrals.

Through Vendors (Outsourcing) :

Ufone also do outsourcing for the purpose of recruitment they hire firm, which will provide employee Ufone to work in the organization, but the employee will remain employee of that firm not Ufone, and this is the most common method followed by most of organization these days. Lower management at Ufone is comes through outsourcing.

Electronic Recruiting :

The growth of information superhighway has opened up new vistas for organizations trying to recruit talent. Ufone is make full fledge use of this new technology, and it uses its own web page to advertise for new job openings.

Another aspect of the electronic recruiting is that individuals don’t have to physically go to the head office to drop their CV’s. They now can simply use the e-CV format provided by Ufone on its home page. The e-CV is then transferred to the relevant database or the HR department.

Recruitment Procedure :

The HR management decides on the length of the short-list, which includes five or six people at the most. Following the advert they need help to sift through the applications. Everything is computerized and on-line which makes it easier to handle large numbers of replies. In case they run short of time, they get the help of other staff, supervisors and managers in the

organization. Apart from the question of time, they do this to get second opinions. They look out for the following when reading an application:

How well-matched is the candidate to the requirements

Any unexplained employment gaps

The quality of presentation

How tailored the reply is to the particular job and Ufone as an organization.

Replying To Candidates :

The candidates that do not match the job are contacted as quickly as possible and dealt with courteously since the HR management believes in the philosophy that these people, and their relatives and friends, may be future customers or acquaintances of potential, future applicants. Those that match the job are called over to undertake an on-line evaluation test.

Scheduling Interview :

The candidates that pass the on-line evaluation test are then called for interviews. A date and a time are arranged and the candidate appears for the interview. The questions of this interview are designed especially for gauging the personality and ability of the candidate.

Screening Process :

The results are screened by a set of panelists in order to minimize chances of error in selecting the candidates. The HR management sometimes keeps a small number of candidates in reserve.

Goals of Ufone HR Department :

Policy initiation and formulation.

Advice (on personnel policy, labor agreement, needs and welfare of company and employee development).

Service (employment, training, development benefits functions, recruiting, interviewing, testing job applicants, maintenance of adequate employee records etc.).

Control (monitoring performance, retention and conformance of other departments to personnel policy, procedures and practices).

Responsibilities of Ufone HR Department :

Employment & recruiting (Interviewing, recruiting, selection and induction into the organization).

Transfer, Promotion, Layoff (checking conformity of skills with new department in case of transfer).

Training and Development (Orientation, coaching, performance management skill training both for technical and non technical personals, counseling, job rotation.).

Compensation Administration (designing and installing job evaluation program, pay structure, analyzing jobs and their dollar-worth, maintaining suitable records, wage and salary surveys of the labor market).

Health and Safety (health programs, safety programs, Medical facility).

Employee relations (wages, rates of pay, hours of work, conditions of employment, negotiation, contract interpretation and administration, grievance handling, allocation of overtime).

Benefits and Services (insurance programs, Transportation facility, sick leave pay plans, loan funds, LFA salary, Yearly bonus programs along with special bonuses for achieving high targets).

Organization Planning (developing concept of company as a structure or system).

Organization Development (increase level of trust and supportiveness among people in the organization, enhance interpersonal skills, make communication more open and direct, directly confront problems, tap the knowledge of all who can contribute to problem solutions wherever they may in the organization).

Human Resource Planning (right number of qualified persons available at the proper times, performing jobs that are useful to the organization and which provide satisfaction for the individuals involved, goals and plans of organization, current human resource

situation including skills inventory, human resource forecast including comparison of projected future demand for employees with projected supply, designing programs to implement the plans of recruitment, selection, performance appraisal, transfer, promotion, training, motivation, compensation, audit and adjustment).

Equal Employment Opportunity (no discrimination in terms of gender, race, age, national origin, religion. Involves complaint investigation, interpretation and policy, monitoring performance).

Personnel and Behavioral Research (improving worker productivity and also increasing the quality of working life, employee attitudes and motivation, predicting success in management and organizational relationships).

Personnel Information Systems (Maintaining HRIS i.e. human Resource Information system, HR planning, skills inventories, employee benefits analysis and productivity studies).

PERFORMANCE MANAGEMENT SYSTEM:

Objective of the Performance Management:

The basic objective for performance UFONE employees circles around the following:

To look at Performance system as a means to an end

Setting an individual’s goal

Aligning goals across the company

Ensuring employees get coaching from managers

Determining merit pay

Identifying training and development needs

Providing data for promotion decision

Input from multiple source on worker performance

The Performance Appraisal Process:

The Performance appraisal system used by UFONE for reviewing the performance status of its employee starts with identifying specific appraisal goals set by each Group for each cadre. After this a detail job analysis is done with looking in account the job expectation and then matching the actual performance with the desired performance. Afterward the performance is appraised according to the set standards and this appraisal is not done by the supervisor alone, their major focus is on taking into the account the employee’s perspective as well. Therefore whenever the appraisal is done employee is fully participative in the process.

Performance Appraisal Method Use by UFONE:

UFONE is using 180-Degree Performance Appraisal Method. Within this method, managers, peers, customers or colleagues are asked to complete questionnaire on the employee being assessed. In UFONE, performance of an employee is appraises twice a year. Once in June while other in December.

In the questionnaire there are five sections and in each section there are five questions related to the performance of employee. There are total 100 points from which an employee gets.

Rewards Related to Performance:

There is also a reward related to performance of the employees. For “Customer Facilitation Agents” there 50% pay is based on their performance which is assessing every month by their managers. For other employees like in administration, engineering, finance, marketing, etc their performance is assessed after every six and they get increased Rs.5000 in their salary as a reward. In each case employee have to show consistent performance to win reward next time.

COMPENSATION AND BENEFITS:

Ufone follow the performance base pay structure and pay for their performance and work output.

Compensation:

The total returns which an employee gets against his or her work. It maybe:

Employee Health Plans

Employee Insurance

Employee Leave

Employee Retirement Income Security Ac

Executive Compensation Maternity & Paternity Benefits Pension & Retirement Plans

Wages & Salaries

Workplace Programs:

Compensation strategies are usually market based and is linked with the performance with a greater emphasis on variable pay. Salary adjustment is based on the performance, market movement and internal/ external equity adjustment. Revision of compensation is based on total pay and monetization of benefits.

Individual Salary Fixation:

The Ufone seeks the market trend and try to compete with market for individual salary fixation but they also analyze their own financial positions and budgeting, it also varies from department to department.

Current Base Pay: (Job Based Structure and competitive):

The Ufone follows the job based structure, and compensate its employees for the work they have done, for their tasks and duties they performed, their work content, behaviour and for their responsibilities.

To develop this structure Ufone conducts some surveys, to compete with others in the same industry.

60% Basic Pay 15-k30% House Rent 7.5-k10% Utilities 2.5-k

OPD 2 Gross salariesHospitalization Employee siblings, Parents,

Wife / Spouse and children’s

Provident Fund 50% Employee, 50% OrgGratuity If work for 10 MonthsBonuses 1.4% Of Gross salaryIncentives Only Sales department

depend upon their performance.

Work Analysis

Evaluation & control

Market trends

Employee J.D Surveys

Policy Lines

Total Compensation:

Example:

Assistant Manager Level:

25000 Car allowance + 200 Liter’s petrol / Month

Manager level:

Car + Blackberry

Senior Manager:

Islamabad Club Membership + BMW Car + House + Foreign Tours

Further Ufone has developed some grades for employees.

A H

A is the minimum grade and H is the maximum grade and they compensate their employees on the basis of their grades.

Grade ‘A’ 500 minutes + 500 Rs mobile usage. Same like this all other benefits.

After every Two years Ufone give the amount of Rs 6000 to lower level employees if they want to purchase a new mobile and this limit increases as grade increases. At each stage the amount is different.

Food Subsidy:

S.E, Exe, M.T so onRs 65Rs 95 Company

A.M and Above160 RS

Increments:

The increments are totally based on the performance of the employees and their seniority level.

If the scale is 15000-20000 then the increment is the 20% of the base pay, but if any employee shows the performance then this may increase up to 35% to 50%.

Managers: Innovative ideasSilent Warriors

Recognition of The work:

On Jan 29 (anniversary of Ufone).Employees who is working in Ufone for seven years or more than seven years gets CashRewards, Trophy, badges and other things.

Permanent Employees:

Number of employees: Around 1500 – 2000

Minimum scale starts from 15000 – 20000Maximum C.E.O (Not disclosed by the organization)

UFONE focuses on providing a large number of the compensation and benefits to its employees in a form of the following categories:

Minimum wage:

The minimum salary for “Drivers” is Rs.7000 for “Tea Boys” it is Rs.6500, for Administrative Staff like HR, Finance, Marketing, etc it is Rs.20000 and for Engineering it is Rs.20000 to 25000.

Medical Allowance:

1 gross salary per year is given to each employee; half is given in mid of the year and remaining half will be given at the end of the year.

Health Insurance:

Like all other cellular companies Ufone also provides health insurance policy to its employees.

Loan Insurance:

At Ufone loan insurance policy is also provided to their employees through banks.

Transport allowance:

Rs 2500 are given to female employees only, if they travel on local transport.

House Rent:

10% of the basic salary is given to each senior/ executive level employee.

Overtime:

All employees are entitle for the overtime more then 130 hours per month .For overtime UFONE have specific formula that apply on the employees gross salary, due to which every employee have different per hour overtime rate.

EOBI:

EOBI is contributed as per the standard.

Children Education allowance:

1 gross salary per year

Provident Fund:

All permanent confirmed employees are eligible for membership of Ufone Employee Provident Fund Scheme. An employee contributes 8.33% of month basic salary in a year and an equivalent amount is being contributed by the employer.

Leaves:

7 Casual and 10 sick leaves are given to each employee at all level.

Travel Policy:

Revised and categorized different levels such as the senior level, the middle level and the junior level staff.

Meal deduction Claims:

Meal books are to be maintained of each employee who issues it, their name, employee number, designation, signature and number of book and date at which it is issued has to be recorded. The reason for maintaining the record is that the company pays 60% of the expense came over the food while 40% has to be deducted from the employee’s salary.

Expense Claim:

The expense Claims are the expenses which an employee make on the behalf of the company E.g. fuel used for business travel, overnight stays on a business tour etc, such claim are made while returning back to the office , after the whole process the HR pay them back the next month along with their salary.

Overtime Claim:

If an employee has worked for more than the regular time, they claim for the overtime amount other than their salary which they receive the next month. Overtime claim have to be approved through HR department.

Medical Claim:

Different medical facilities are provided to employees at different level of hierarchy, so if any employees make use of this facility they can claim for the amounts to be return next the month while submitting the hospital receipt. Their medical clearness is done by the HR department.

Mobile deduction Claim:

Such an expense claims which are made if an employee has made long duration call for the official purpose and they have exceeded the limit given to them then they can make a claim by attacking a copy of mobile bill and if its valid then HR department approved it and pay the employee their claimed amount along with their monthly salary of the following month.

Dispatching of Salary Slips:

Vendor prepares the salary slip and dispatch it to the HR department, further HR head office send it to the regional HR departments their concerned employees salary slip and they either give their employees through cash or transfer to their accounts.

Job Involvement and Organizational Commitment:

In Ufone according to our investigation employees are so much connected with each other that every individual is personally involved with his or her work role, and every employee is psychological attached to the organization.

Workgroup behavior

The Work group behavior of employees with each other at Ufone is very good. They work as a team, enjoy their given tasks and Coordinate with each other in difficult Situations.

SWOT analysis is an overall evaluation of the company’s:

Strengths (S)

Weaknesses (W)

Opportunities (O)

Threats (T)

STRENGTHS:

Strengths include internal capabilities, resources, and positive situational factors that may help the company to serve its customers and achieve its objectives.

The strengths of Ufone are as follows:-

Ufone’s differentiation is its biggest strength. Ufone offers lowest off-net Call rates that differentiate it from its competitors.

Ufone is offering more and better Value Added Services (VAS) than its Competitors i.e. Ufone’s Walkie Talkie.

Ufone is enjoying the second largest cellular network in Pakistan.

Ufone has the most promising and attractive ATL (Above The Line) Activities.

Ufone has great management within the organization (internally & Externally)

WEAKNESSES:

Weaknesses include internal limitations and negative situational factors that may interfere with the company’s performance.

The weaknesses of Ufone are as follows:-

Ufone has less professionalism within the organizational members.

As Ufone is a subsidiary of PTCL, which was formerly under Government management, Ufone still has a shadow of a government Organization.

Ufone still has room for the betterment of its network coverage in Comparison to the Market Giant “MOBILINK”.

Ufone has pathetic billing system for postpaid connections. This faulty System creates a negative vibe among its customers.

OPPORTUNITIES:

Opportunities are favorable factors or trends in the external environment that the company may be able to exploit to its advantage.

Ufone has following opportunities in its way:-

Ufone’s biggest opportunity lying ahead in near future is the phase of Conversion of their GSM technology into 3G (satellite based) technology.

Ufone has the opportunity of growing its customer base due to increasing Trend of using mobile phones.

Ufone has the opportunity to win the customers of its competitors by Providing them superior services on lower price.

Ufone has the opportunity that it is pioneer in southern Punjab where it Can promote it and become market leader on the basis of this very fact.

THREATS:

Threats are unfavorable external factors or trends that may present challenges to Performance.

Ufone is facing/about to face the following threats:-

Ufone’s biggest opportunity is its biggest threat as well. The phase of its Conversion of GSM technology to 3G technology can be a threat for it if not Carried out properly.

The boosting customer base of Warid and Zong is also a big threat for Ufone.

The decreasing economy rate and instability of Pakistan is a big threat for All businesses in Pakistan including Ufone.

CONCLUSION:

At Ufone HR practices are functioning very well, they have adopted modern techniques for management. Anyone can voice his/her opinion and thoughts at any time and will be taken into consideration by upper management. The HR department is doing all the things, which are necessary for improving the quality of the HR development by conducting continuous training and development programs. Ufone is among the service industries, which value its HR department and are constantly working towards its improvement by hiring qualified and capable Hr personals.

RECOMMENDATIONS:

Ufone can induct temporary or contract employees as well which will not only increase their HR inventory but also enhance their marketing representatives.

They should start installing the ERP modules so that after some time they could easily handle the whole ERP according to the organizational requirements.

Employees who have direct interaction with the customers should be evaluated on 360-degree evaluation method as well as their immediate supervisors evaluate them.

They should conduct some seminars in stress management.

They must conduct employee safety awareness programs.

They have to improve the quality of the sub-ordinates.