Professional Documents
Culture Documents
PTCL Managment Project by Aamir
PTCL Managment Project by Aamir
PROJECT OF MANAGEMENT
Presented By,
AAMIR RAZA
SADIA GULL
Group (D)
M.B.A. Regular “A”
DEDICATION
We would like to thank our professor Mr. Kashif Ammar who was always there
to help and guide us when we needed help. His perceptive criticism kept us working to
make this project more full proof. We are thankful to him for his encouraging and
valuable support. Working under him was an extremely knowledgeable and enriching
experience for us. We are very thankful to him for all the value addition and enhancement
done to me.
“To Him belongs the dimension of the Heavens and the earth, it is He who gives Life
and death and He has power over all things.”
(Al-Quran)
All acclamation to Allah who has empowered and enabled us to accomplish the
task successfully. First of all we would like to thank our Allah Almighty who really helps
us in every problem during the project. We would like to express our sincere and humble
gratitude to ALLAH almighty who‟s Blessings, help and guidance has been a real source
of all our achievements in our life. We would like to admit that we completed this project
due to parents who pray for our success. We also wish to express our appreciation to our
supervisor Mr. Faheem Athar Haqani who help us a lot and introduce us to new
dimensions of knowledge. And we would like to acknowledge all our work to our parents
and friends who guided to accomplish this never forgetting task. Last but not the least our
team efforts, support, cooperation and encouragement showed by each members in the
group with each other.
TABLE OF CONTENTS
Executive summary 05
Introduction of Research Methodology 06
o Primary data collection
o Secondary data collection
o Limitations
SWOT analysis 18
o Strengths
o Weaknesses
o Opportunities
o Threats
Porter five forces for PTCL 21
T
his project is about management affairs and management hierarchy of PTCL. PTCL is
the largest and solely line based communication system in Pakistan. The purpose of
this project is to practically know about all the aspects of management of PTCL.
V fone
PAK Net
Smart Services
We also discussed its financial aspects in which we took the analyzed is liquidity
and its profitability position. We got information about PTCL business strategies,
Motivations procedures and its internal and external resources and departmentalization,
(engineering finance, marketing and also the HR department of the PTCL. It also
includes the functions of HRM e.g. selection, training and development, motivation,
maintenance and other functions of HR department. At the end of this project we have
written down the SWOT analysis of PTCL Company and HR department.
INTRODUCTION OF RESEARCH
Today, the telecommunications industry is exposed to fierce competition.
National and geographical borders no longer coincide with those of telecommunications.
The same products and services are developed and offered in a number of different
countries.
RESEARCH METHODOLOGY
The research techniques that are adopted for the purpose of this study are as follows:
Formal Interviews
Informal Interviews
The formal interviews include people from the top management and the informal
interviews included people from middle and lower management.
Secondary Data Collection
Internet search
www.ptcl.net.pk
Newspapers
References books and other literature
Annual reports of the organizations
LIMITATIONS
One of the major limitations while carrying out this research was the lack of
cooperation on the part of the management of the PTCL in providing the data regarding
the company and its policies.
INTRODUCTION OF TELECOM INDUSTRY
Since the independence of Pakistan, basic telecom services were being provided by a
monopolist, previously called as Telephone and Telegraph department (T&T). The
department was being run by the government and played multiple roles as regulator,
policy maker, operator and service provider in the country. The T & T department was
later converted into a corporation. Although the corporation was earning huge profits
from the services, it was re-investing the same profits into the sector for the provision of
more telecom service but the investment was not enough.
Further, with the technological advancement, more and more telecom services were
becoming available but there was not enough money available with the corporation to
install new telecom systems for the provision of modern services. Resultantly, a digital
divide prevailed in Pakistan keeping it behind its neighbors and other comparable
countries in terms of telecom access. The Telecom Sector has contributed 2 percent
towards the overall GDP growth with revenues of over PKR 235bn.
PAKISTAN TELECOMMUNIUCATION COMPANY LIMITED
Introduction
With employee strength of 35,000 and 5.7 million customers, PTCL is the largest
telecommunications provider in Pakistan. PTCL also continues to be the largest CDMA
operator in the country with 1.1 million V-fone customers.
The year also witnessed the entry of major telecom companies, most notably China
Telecom and SingTel, into the market. Restructuring and re-engineering are in their final
stages along with the implementation of ERP system. From the end customer's
perspective, a major initiative was put in place in the shape of 'Broadband Pakistan'
service launch as a first step towards providing its customer with more value added
service and convenience. The company also continued to invest in infrastructure
development and addition of network capacity with a view to enhance services and to
expand its reach across the country.
HISTORY OF PTCL
From the humble beginnings of Posts & Telegraph Department in 1947 and
establishment of Pakistan Telecommunication Company Limited, to this very day, ours is
a story of commitment and vision.
The erstwhile Telegraph and Telephone (T&T) Department was converted into a
Statuary Corporation on 15-12-1990. It has its own legal identity totally separated from
Government of Pakistan.
RE-STRUCTURING OF PTC
The P.T.C. was further segregated into four separate units in 1996.
P.T.C.L.
P.T.A.
N.T.C.
F.A.B.
Pakistan Telecom Authority (PTA) was established in 1996. It falls under the
preview of Government of Pakistan. It issues licenses to various companies for carry out
certain activities. This authority is responsible to monitor the establishment of telecom
related firms, companies, the import of telecom equipments etc in the country. It is a
regulatory body formed to accomplish rules and regulations relating to the
telecommunication matters.
This organization has been established to allocate Radio and Wireless telecom
frequencies to various organizations/companies within the country. The latest
development in this regard is that F.A.B. is establishing Monitoring Stations in order to
check the validity and legality of the utilization of circuits.
NATURE OF BUSINESS
PTCL’S SUBSIDIARIES
The company‟s performance during the current year has been very encouraging
despite the stiff competition in Pakistan‟s cellular market especially after the emergence
of two new international players in the last quarter of the year. Throughout the year,
UFONE pursued a growth strategy and managed to almost double its revenue compared
to last year. The company successfully increased UFONE‟s market share from 16% to
22%, a significant achievement. On June 30, 2007 the total number of subscribers of
UFONE was 4.6 million versus 2.8 million at the same year.
During the year PTML successfully launched its Phase-IV network expansion
project costing more than US$ 160 million. UFONE now covers more than 200 cities and
towns, prominent highways and caters for international roaming with 135 operators
worldwide.
The fully owned subsidiary of PTCL owns the largest ISP network spread over
2,900 cities/locations with 43 POPs. It has extensive data transmission capabilities but
has been incurring losses due to poor business orientation and excessive overheads.
During the year Paknet recorded sales revenue of Rs. 213.9 million, which is 19% loser
than last year. The company posted a loss of Rs. 42.2 million vs a loss of Rs. 111.5
million last year. The quantum of loss is lower as compared to last year mainly due to
reversal of provisions against doubtful debts of Rs.44.1 million made in prior years and
reversal of deferred tax asset of Rs. 34.9 million in the last year.
PTCL as the sole shareholder of Paknet is highly concerned with the poor
performance of this subsidiary and is currently undertaking a strategic review of this ISP
subsidiary of determine the future course of action
BOARD OF DIRECTORS
• HIFZ-UR-REHAMN
Chairman PTCL Board
• NOOR-UD-DIN-BAQAI
Member (Telecom)
• AHSANULLAH KHAN
Ambassador (U.A.E.)
• FARRAKH QAYYUM
Secretary (Govt. of Pakistan)
• ABDULAZIZ A. AL SAWALEH
Human Resource Officer
• FADHIL AL ANSARI
Executive Vice President
• ABDULAZIZ H. TARYAM
General Manager
• FARAH QAMER
Company Secretary
MISSION STATMENT
VISION
The future is unfolding around us. We are striving towards mobilizing the world for
the future. By becoming partners in innovation, we are ready to shape a future that offers
telecom services that bring us closer.
CORE VALUES
Professional Integrity
Customer Satisfaction
Teamwork
Company Loyalty
Corporate Information
REGISTERED OFFICE
PTCL Headquarter
AUDITORS OF PTCL
Chartered Accountant s
Chartered Accountant s
BANKERS OF PTCL
PTCL st renght s and weakneses are discussed in det ail belo w. Which
will define our work regarding to PTCL company affair s.
Stren gths
Weakness
Not been able to nurture its growth around customer services oriented strategy
Internal organizational and business processes issues
Monopolistic culture has further added to its complexities
Paknet, the internet service provider arm of Ptcl continues to incur losses due to
poor management and lack of network optimization
Ptcl-v, the fixed wireless phone service is poor
Over employment & low productivity.
Slow decision making including external interferences.
Corporate culture akin to government departments.
Opportunities
Porter five forces for Pakistan Telecommunication Company limited are as fallows,
The five forces for Pakistan Telecommunication company limited are now discussed
in detail.
Threat of New Entry
Power of buyer is high in telecommunication sector. There are six market players
and players are offering different packages at different prices and a situation of
price war is running. Buyers have a power to buy any package which is suited to
them.
Cost of switching from one company package to other company package is low.
Hence, power of buyers is high.
Government also gave so many land lines and wireless local loop licenses to
different companies like PTCL wireless local loop, GO CDMA etc. these services
in future will be like mobile phone services like they are planning to offer services
a lot but currently they are offering SMS and CLI services to their customers.
Competitive Rivalry
Currently there are six market players but in future they will be eight and nine or
even more.
Thruway satellite service is offering subscribers freedom of mobility and
uninterrupted service. Thruway‟s satellite technology supplements of existing
mobile service providers, overcoming the challenges of large geographical areas
and insurmountable terrain.
ANALYSIS OF EXTERNAL ENVIRONMENT
Pakistan followed a gradual approach to liberalize its telecom market. During 1990s,
as a first step, market was opened for value added services and competition was
introduced in cellular mobile sector as four licenses were issued (Mobilink, PTML,
Paktel and Instaphone). The government monopoly was retained in fixed line services,
however, PTCL legal monopoly ended with effective from 31 st December 2002. The
government announced Telecom Deregulation Policy and Cellular Mobile Policy in 2003
and 2004 respectively. The telecom regulatory, issued new licenses for Long distance
International (LDI) and Local Loop Fixed (LLFixed), Wire Local Loop (WLL) and
Cellular Mobile. With the issuance of new licenses the market is now open for full
competition in all segments of the sector.
Pakistan‟s telecom sector has finally begun moving and looked set for an era of
phenomenal growth. The sector has witnessed tremendous growth in recent years with
Teledensity depicting major expansion after deregulation. The primary purpose of
deregulation of the sector was to encourage healthy competition while providing better
quality products and services to customers on lower prices as well providing best
technology available worldwide.
Current Teledensity in Pakistan has expanded exponentially from 4.3 percent in 2002-03
to stand at 48.4 percent in 2006-07 with currently standing at over 52 percent, with better
services and competitive rates. Also, increasing inflow of foreign investment in the
telecomm sector has resulted in the introduction of new cut throat technologies for
provision of various telecom services including cellular, wireless and internet services. In
recent times, the focus has increasingly shifted from Fixed Lines to Cellular and Wireless
Fixed Lines (WLL), with better portability and convenience. WLL has shown an
improvement from 0.7 percent to 1.1 percent in 2006- 07 from last year with subscribers
of 2 mn.
Cellular segment remained the vital player with increase in total Teledensity
contributing 48 percent. In the urban markets introduction of Broadband internet services
by various Telecomm giants such as PTCL, World Call and Wateen has further benefited
the consumers to access timely information over the internet with competitive rates. The
broadband penetration however has not depicted as much growth as expected growing
with 3.5mn subscribers in 2007 against 2.4mn subscribers in 2006. PTA estimates
broadband subscribers to grow to over 5mn by 2010. World Call has initiated cable
television services with PTCL expected to follow suite by providing IPTV services
through its Triple Play services, ensuring diversification of products and services. Recent
conducive environment provide by PTA has resulted in increased FDIs in the sector with
investments of USD2.7 bn during the last five years making it the largest recipient of
highest FDI during the past few years. The future for telephony lies amongst unexplored
rural regions of Pakistan with all major telecom operators looking forward to tap these
markets with a major contribution by WLL and Cellular segments due to cheaper
installation costs. With healthy competition instigating lower local and international
tariffs and availability of alternative services has progressively benefited the consumers
overall.
Market Operation
PTCL Competitors
Mobilink Gsm
Warid Tel
China Mobile
Telenor
Market St ructu re
Wireless Local Loop (WLL) is growing at a rate of about 100 percent per annum as
its Teledensity has reached to 1.34 percent by end of December 2007. The quarterly
addition of WLL subscriber is approximately 0.14 million on an average.
PTCL, the incumbent operator in fixed line in Pakistan has also emerged as market
leader with 57 percent market share followed by Telecard and World call with 19.6
percent and 20.2 percent market share at the end of December 2007.
It is believed that fixed-line Tele-density will recover with WLL taking off due to
its cost effectiveness and in particular this technology suits for the hilly areas and far-
flung regions in the country. The estimated WLL per line cost is around US$ 100-150 in
comparison to wire line cost which still remains to be more than US$ 250-350 per line.
PTCL has already covered over 11,500 cities/towns/villages while other major operators
like World call, Telecard and Great bear are increasing their coverage too.
WLL system is used when low to medium subscribers densities are located apart
from each other and deployment of primary or secondary copper network is difficult.
WLL system is best suited for rural, sub urban areas and very congested metropolitan
areas.
The local telecom market has altered significantly since the creation of PTA as an
independent regulatory agency and had enjoyed sizeable success to open up the local
market to competing operators. With the governments deregulation policies, Etisalat, the
UAE based telecom player being the highest bidder emerged as the buyer of the 26
percent share in PTCL in April 2006. PTCL, despite being a giant, had to face many
bottlenecks in its operations with such large network.
PTCL has recently taken an initiative to right size itself by introduction of VSS for
its employees where about 28000 employees are accepted under the scheme. Introduction
of various diversified products and services to sustain its market share, Implementation of
ERP solutions to provide integration of various departments through acquisition of SAP
software and state of the art billing and customer service software, translates PTCL‟s
long term goals of operational effectiveness into practice. The telecom giant PTCL has
observed cutthroat competition from various service providers after the implementation
of the deregulation policies by the PTA. However, through the vast infrastructure and
being the carriers‟ carrier, PTCL with diversification of its various services has enjoyed
well-built position and posses immense potential for growth, while need for telecom
services is on rise as economy continues to grow on the right track.
The telecom De-regulation and Cellular Mobile Policies announced by the Federal
Government place certain obligations on Pakistan Telecommunication Company Limited
(PTCL) to facilitate market liberalization. PTCL is bound to comply with these
obligations within a stipulated time frame. These obligations are of paramount
importance for successful implementation of the policy and failure or any deviation
thereof may result in substantial damage to the deregulation process/liberalization
program. Similarly Defense, NTC and SCO also depend on PTCL for many facilities.
Therefore, PTCL has important obligations towards Defense of the country and other
existing operators. In addition, PTCL has been declared SMP operator. Under the status
of SMP also, PTCL has certain obligations. PTA, as regulator, has to ensure that new
management of PTCL fulfils all these obligations.
ANALYSIS OF INTERNAL ENVIRONMENT
Being a public limited company whose majority shares are controlled by the
Government of Pakistan, PTCL is responsible to provide telecommunication services in
the country on affordable prices while ensuring that the telecom services become
accessible throughout the country. Since exclusivity of PTCL has ended on 1st Jan 2003,
the telecom sector of Pakistan has entered into a new era and PTCL is slowly moving
towards competition in the basic telecom services. The company‟s policy objectives are
as follows:
Increase service choice for all consumers of telecom services at competitive and
affordable prices
Increase private investment in the telecom sector and encourage local telecom
manufacturing/service industry
Enhance long run benefits to the Government‟s financial position by expanding
the taxable revenue base.
Accelerate expansion of telecom infrastructure to extend telecom services to
unserved and undeserved areas.
Encourage fair competition among service providers, while maintaining
leadership in the telecom sector
Maintain consistency with the Pakistan IT and internet promotion policy of low
prices for Bandwidth and Internet access.
ORGANIZATIONAL MANAGEMENT CYCLE:
At the end of first quarter, the company stock was trading at a P/E ratio of 18.20.
As illustrated by the graph, the stock has performed remarkably well relative to the
market. The stock has shown consistent performance over the three months, dropping
only slightly as the rest of the market dipped sharply during August. As a consequence of
the fading sales revenue for the period, the profit after tax of the company in FY06
declined by 21.91% over FY05. The net profit margin has also been declining since the
FY'04 and the trend persisted in FY06. The decline in profit margin may be attributed to
a 5.25% increase in operating expenses for the year.
Fig Below: 5 years Financial Analysis of PTCL
Profitabi lity Position
PTCL posted a net profit of Rs 15.64 billion (EPS Rs 3.07) in FY07 against last
year's figure of Rs 20.78 billion. The declining trend in profitability continued during the
financial year ended June 30, 2007 due to structural adjustments brought about in the
telecom sector by competition. Although PTCL maintained its leading market share in
the fixed line, there was a decrease in revenues by 5.5% mainly due to substitution
impact of mobile expansion. There was also an increase in operating expenses by 11.7%
mainly due to prudent provisions for doubtful debts and long term systematic
improvements in operations and customer services.
In spite of decline in profit, the PTCL managed to increase its operating cash
flows to Rs 35.54 billion compared to Rs 35.19 billion last year. Considering the cash
requirements for restructuring and development plan, the company declared a final
dividend of Rs 2.00 per share for the financial year ended June 30, 2007. The total
revenue for FY 2006-07 stood at Rs 65.28 billion against Rs 69.09 billion of FY 2005-06.
The decrease in revenue was mainly in the domestic segment due to competition and
reduction in tariffs. However, PTCL is making all efforts to boost revenue by improving
customer service and launching new services to turn around the situation.
Liquidity Position
The liquidity position of the company suffered a setback in FY06. This trend has
been witnessed despite increasing current assets, as current liabilities grew more sharply.
The short term borrowings of the company have been mounting for the last few years and
this has contributed to the current trend of the current ratio. It may be noted that the
company holds large amounts of cash and bank balances compared to the other
companies in the business. This may provide an edge to the company over its
competitors. Although the liquidity stance of the company is fairly satisfactory at the
moment, but a continuation of the current negative trend may spell trouble for the
company.
Leverage Position
The debt ratios showed a decreasing trend in the FY07. The debt to asset ratio of
the company had declined considerably in FY05 but the trend reversed in FY06,
declining again in FY07. It is important to note that the company maintains a largely
unleveraged capital structure, with the current trend in debt ratios bought about largely by
changes in current liabilities of the company. This was brought about mostly due to a
decline in current liabilities of the company in FY05 and an increase in the same in
FY06. The absence of the dividends payable portion of current liabilities in FY05 and its
coming back online in FY06 was an important contributor to the trend. Further, the FY06
also saw an increase in short term borrowings of the company, complemented by
increases in other components of current liabilities. Increases in assets, mainly arising
from higher cash and bank balances, could not prevent the trend of the debt ratios.
Activity Position
The DSO of PTCL witnessed an upward trend throughout the period under
analysis, except in FY05 when an improvement was marked. The ratio jumped up
considerably in FY06, completely nullifying the effect of the decline in FY05, and
exacerbating the already long collection period of the company. However, DSO showed a
decline in FY07 showing that management of PTCL is constantly striving for
improvement and enhancement despite stiff competition. As a result, the operating cycle
has also decreased in FY07. The total assets turnover and sales to equity ratio of the
company also declined in the FY'06 as revenues shrunk during the period. Sales/equity
declined with the increase in equity of the company.
Dividends
PTCL has had a history of paying out significant portion of its earnings to its
shareholders. However, with huge cash requirement for Voluntary Separation Scheme,
PTCL is unlikely to announce any cash payout during FY08. Therefore, once the ongoing
process of VSS is through, which requires a cash outflow of PkR23.2bn, dividend payout
is likely to resume to its initial levels.
BUSINESS STRATEGIES
As part of the Company‟s vision of maintaining and growing its position as the
leading ICT service provider and a profit leader, a five year Strategic Master Plan for the
Company, with defined corporate KPI targets, timelines and ownerships was developed
by the PTCL management. Defining yearly targets on market shares for various voice and
data services, introduction of a corporate KPI based performance measurement system,
Restructuring of the organization, formulation of IPTV, Triple Play and converged
services, migration to an end to end IP based network, Investment strategies such as
Assets Management for risk diversification and improved Return on Investments, were
all part of the master plan. The five year master plan will be reviewed and updated on an
annual basis.
PTCL chose August 14th, the Independence Day, to launch its new logo and theme
of „feel the difference‟. To support the new spirit and to reinforce its commitment, PTCL
offered „free‟ nationwide calls to the people of Pakistan. The traffic on 14th August 2007
jumped to 4 times the level on a similar holiday to give credence to our hypotheses that
the „good old telephone‟ Company is still the trusted landmark of the people of Pakistan.
This unprecedented response to free calls on 14th August was a heart warming
experience as it reassured the faith of our customers in our services, making us even more
aware of our responsibilities towards putting our customer first.
PTCL‟s fixed line segment has witnessed decline in numbers in 2007-08 as against last
year with a decrease of 452K lines during the past year. The market for the FLL segment
has least amount penetration primarily due to the major inclination towards cellular
and wireless segments by users. PTCL‟s fixed line potential is anticipated to remain
stable with its having the largest network, coverage and better quality service as
compared to WLL and cellular networks. The fixed line segment is anticipated to cater
the needs of the business community at large and as expected is to be driven by the
country‟s future economic growth.
PTCL through diversification and assorted products and services could retain its
fundamental presence in the Telecom Sector. Introduction of DSL Broadband services
across major cities with plans to include more cities in times to come will enhance the
revenue base of PTCL. Stiff competition from other cable based broadband service
providers and local cable operators still persists. PTCL‟s broadband services were
introduced in Jun 2007 with free installation service with an initial capacity of 100,000
subscribers by providing services in the five largest cities and had a decent start by
adding over 10,000 subscribers within the first few months of its operations depicting
PTCL‟s brand recognition. Furthermore, with the introduction of WLL segment, Phone N
Net, IPTV, VMS and Carrier Services is expected to bring product leadership in the
sector.
ENTREPRENEURSH IP – INNOVATIO N & INCENTIVE PLANS
Quality Services
In the backdrop of this situation, PTCL management is taking key initiatives in different
business areas. One important move aimed at improving the Sales and Customer
satisfaction is to boost the morale and motivation level of our employees.
An Incentive Plan has been worked out to present substantial cash rewards to the
employees performing beyond the specified benchmarks. This will be the start of an era
where the rewards shall be linked with the performance and achievement of targets.
While the first phase focuses on front end of the Supply chain, it would subsequently be
expanded to other segments of the organization like Fault management, WLL and IP TV
etc. Important features of this plan are:
PTCL proudly presents Free Internet facility for its landline valued customers. All
PTCL landline subscribers can now experience the best dial up speeds with unlimited
internet usage during night hours from 10:00pm to 07:00am. Furthermore subscribers can
also avail up to 100 hours of free dialup internet on monthly basis from 0:700 am to
10:00pm every day.
Free unlimited dialup internet will be available from 10pm to 7am in the morning
every day.
For day time users (7am to 10pm) PTCL is offering up to 100 free hours on
monthly basis to entire subscriber base.
Customers exceeding 100 hours in a month (during day time from 7am to 10pm)
will be charged as per existing tariff of Rs. 6/Hour.
ORGANIZATIONAL STRUCTURE
In other words, the organization structure sets forth each principal, management position
and helps to define authority, responsibility and accountability.
An organization chart is essential to the development of a cost system and cost reports
which indicates the responsibilities of individuals for implementing management plans.
In PTCL President / CEO is the head of major functional areas. i,e State management,
Finance, Technical, Operations, HR & Admn and Corporate affairs. So Senior Executive
Vice President who are the head of these units generally reports directly to the President.
The main purpose of PTCL is allowing them to effectively and efficiently accomplish
organizational goals and objectives. Designing an appropriate structure means that
managers must decide how to coordinate work activities and efforts both vertically and
horizontally.
Organization structure of PTCL can be described as having three components like any
other organizations:
Complexity
Formalization
Centralization
COMPLEXITY
When we analysis the complexity of PTCL, there is big amount about 70,000 employees
and hierarchy is as under:
This is a very large hierarchy, which creates problems for the organizational activities
and coordination‟s. The result is a slow correspondence between management and
officials at lower levels. The Etisalat (who control the charge of PTCL) is restructuring
the organization and the work is under process.
FORMALIZATIONS
The degree to which an organization relies as rules and procedures to direct the
behavior of employees is formalization. The PTCL organization structure operates with
standardized guidelines, rules and regulations. Each officer/official knows his/her
responsibilities of what he has to do. Due to these strict rules and regulations the PTCL
organization‟s structure is more formalized.
CENTRALIZATION
The term centralization describes where the decision making authority is.
In some cases, decentralized policy is used and decision making is delegated to lower
levels of management. Which is not correct and creates problems in the creation of long
term value aided strategies.
DEPARTMENTS OF PTCL
Engineering:
Engineering Department of PTCL is responsible for:
Maintenance department
Operations department
Finance
Finance department deals with
Accounts department
Revenue department
Taxation department
Human Resource Department
HR department is responsible for the management of human resources needed in
the organization efficiently and effectively. It includes;
SENIOR EXECUTIVE
VICE PRESIDENT
EXECUTIVE VICE
PRESIDENT
REGIONAL G.
MANAGER
Director (SENIOR
MANAGER)
Managers
SENIOR MANAGERS
ENGINEER
Introduction
The Human Resource Department in PTCL was formally established in 1996 and
it was re-organized in 2005. PTCL human resource system is known as HRIS-PTCL and
it is working under SEVP & GM at regional centers.
HR manager plays a very important role in hierarchy, and also in between the higher
management and low level employees. He is one of the most important people to achieve
company‟s overall objective by properly managing the most useful company resources.
HR Importance
The main objective of HR department in PTCL is to meet company needs of the
human resources and the needs of the people hired by the company. The management of
PTCL considers that in order to stay competitive and to meet the needs of their
customers they should focus on their employees. They consider employees the main
assets of organization and focusing on providing them the better facilities
Chain of Command of HR
President
Chief Executive
HR
Senior Executive
Vice President HR
Vice President
of HR
G.M HR
Director
Senior Manager
Main Pillars of HR
1. Staffing
2. Training and Development
3. Motivation
4. Maintenance
Staffing
Activities in HRM are concerned with seeking and hiring qualified employees. Staffing
includes
Job Analysis
Recruitment
Selection
Job Analysis
Job Analysis provides the information about the jobs currently being done and the
knowledge, skills and abilities that individuals need to perform the job adequately.
Job Specification
Job Description
Job Evaluation
For the purpose of job analysis the company provides different tasks to check their
efficiency. The company also checks the grip of the employees on his job requirement
and observes his interaction with other employees. They mainly focus to check their
attitude because in service sector customers are directly involved with the employees.
The company matches whether employee is fulfilling his tasks properly or not, if
not the company try to find that reason. The company also checks number of
complaints against the employee and what the basis of that complaint is.
Recruitment
Company uses different sources to fulfill vacant vacancies. First of all it identifies
how many employees are required and for which posts. This job analysis is done by
PTCL HR governing body consisting of highly skilled persons. The company evaluates it
on the basis of different regulations given by the Pakistan government and Labors Law
enforced in Pakistan.
Internal sources
External sources
Internal Sources
In the internal sources company promote its contract basis employees on
permanent basis and also promote the permanent employees according to their
performance and qualification. Recommendations are usually not preferred.
External Sources
Through external sources company attract fresh as well as experienced persons.
Print media and electronic media are utilized to achieve their goal of hiring best suited
employees. For technical staff candidates holding engineering degree are invited from all
over Pakistan and for management staff people with MBA are invited but the preference
is given to LUMS students because PTCL partner with LUMS.
Selection
Selection attempts to thin out the large set of applications that arrive during the
recruiting phase and to hire an applicant who will be successful on the job.
After conducting test and interviews potential candidates are selected and they are given
jobs on the following five categories.
Regular
It is the selection on the permanent basis.
Daily wages
Usually security guards and peons are selected on daily wage basis.
Project based
People are selection and there time duration depends on the time of the project.
ROLE OF HUMAN RESOURCE
The VSS marked the single largest most successful exercise in the history of
Pakistan. In the highly challenging marketplace, PTCL HR wing stepped forward to
facilitate the emergence of new Corporate Culture by becoming Equal opportunity
employer, inducting fresh blood from the market, improving the way PTCL runs and
reducing the number of employees having outdated skill set. The Training &
Development wing of the HR Department also organized a comprehensive six months
“Urgent Training Needs” program in technical and managerial fields to enhance soft
skills.
Healthy improvements have been made in the area of Recruitment and Retention
as the whole recruitment process has been redefined to cope with the changing business
requirements. Detailed facilitation programs have been initiated for the orientation of
newly hired employees. PTCL employees have been provided excellent international
placement opportunities across various Etisalat International Business Operations.
REFERENCE OFFICERS
We have completed our project of management for about two weeks. During this
period we have gained a lot of knowledge and practical experience.
After a complete research work we will conclude that decision making power in
PTCL is fully centralized. All the powers lie in the hands of CEO of the company. Main
decisions are made by board of directors. And confirmation of their decision is given by
president of the company. We analyze the organizational structure of PTCL.
Organizational structure of PTCL is fully straight forward. For this purpose we got help
from Mr. Abdul Qayyum who is the revenue officer in PTCL Sargodha, and Mr. Zafar
Nadeem who is the senior manager in gateway Islamabad.
We can conclude that since the HR department of PTCL has been re-organized in
2005, there is still a long way to go for achieving the competitive advantage. Although
the strategies they are adopting are good but they still need further improvement for the
satisfaction of their employees and best utilization of human resources so in return they
would be able to increase their market share.