Professional Documents
Culture Documents
PTCL
PTCL
PTCL
PREPARED BY
BBA-Finance
SESSION 2009-2010
i
9
004
Preface
Acknowledgmen
Financial analysis
- 23
Activity ratio
S ub sid ia rie s 2 5 -2 7
Ufone
Multi Media Broad Band
Competitors 28-29
Mobilink
Telenor
Warid
SW OT Analysis 42-44
My project 45-67
Weakne s7O-71
Recommendations 72
Conclusions 73
Appendi
DFD's
Organization Chart
Financial Statements
PREFACE
This report is the practical part of the most vital practice of our MBA-HR program. The
sole objective is to familiarize the student with the practical manipulation of business
organization. This report has been written to know how big organizations like PTCL
manage their teams to achieve their common goals.
In the next part, SWOT analysis of the firm have been done by the help of
which it is identified that what are the strong areas of the company and where it lacks so
that it can improve, and then in the end most important my experience while working in
the PTCL as internee is explained.
Author
PTCL
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Acknowledgement
In the name of Almighty Allah who is most merciful, and who give me strength to write
this internship report in a different way.
My parents, classmates, friends come next in the list of those whom I have to thank.
TRANSMITTAL MEMORANDUM
Internship report on any organization is a necessary element to get the MBA degree from
any university. I have written an internship report on PTCL and review its Human
Resource system / procedures adopted for such purpose.
My major recommendation is this: PTCL should improve their contact with middle &
lower level employees’ especially supervisory level and establish internal performance
appraisal system to avoid the future complications & to evaluate the employee
performance & encouraging them. That conclusion was arrived at after eight weeks
extensive practical training/study in the HR department of the company. Besides this, I
also studied the role of C.B.A during the latest proposal of Volunteer Separation Scheme
(VSS) for employees.
Because of my analysis, company’s officials felt these flaws in the system & are agree on
my suggestions and wanted to implement them in near future. I am grateful to my
seniors, colleges, and subordinates who assist me to complete this comprehensive report
in an excellent way.
If the members of the review committee of this report have any additional questions, I
Inshallah will try my best to do it more well way. At last I thankful to the University who
give me an opportunity to review/study the HR system/process of company.
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EXECUTIVE SUMMARY
PROCESS OF REVIEW
Data from June, 2005-2007 were taken for analysis, and
METHODOLOGY: Human Resource Management practices followed by the
company seen practically whether the company adopted
them according to the international labor law standards or
not. I had been working in this organization since five
years. Therefore, I was in a better position to review the
system in an efficient way.
I point out those weak areas, and hope that company if,
adopted my suggestion and recommendation can overcome
the problems. This will also benefit for the other systems of
the company.
O V E R V IE W O F T
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S
INTRODUCTION
even years into a new century, the telecom sector of world finds itself at
countries
crossroads after changing itself almost beyond recognition over the last 25
having adopted these policies to advance their telecom sector.
years. Privatization and competition are the order of the day, withThe results of
a majority
have been impressive; the industry has grown at unprecedented pace. Although there
has been a phenomenal growth in Pakistan, especially in the cellular mobile
communication and in the internet, yet the late density remains almost stagnant.
So far PTCL is the sole land line service provider of Pakistan. PTCL is the giant of
Pakistan telecommunication industry and enjoying the monopoly. This part of the
report contains a brief introduction of PTCL. This introduction is divided into two parts,
history and current situation.
BRIEF HISTORY
Over the years, technology has changed the concept of communication and what was
thought to be a fictional only a decade ago, has actually made its way through to our
hands today. This is the future we dreamt of so fondly. Welcome to the modern age, of
telecommunication, which have become complementary to our lives. But there must
also be an anchor to introduce, allow, improve and channelize all these services and
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Pakistan Telecommunication Corporation (PTC) set sails for its voyage of glory In
December 1990, taking over operations and functions from Pakistan Telephone and
Telegraph Department under Pakistan Telecommunication Corporation Act 1991. This
coincided with the Government’s competitive Policy, encouraging Private Sector
participation and resulting in award of licenses for Cellular, card-operated Payphones,
paging and, lately, data communication Services.
Pursuing a progressive policy, the Government in 1991, announced its Plans to privatize
PTC, and in 1994 issued six million vouchers exchangeable into 600 million shares of
the would-be PTCL in two separate placements. Each had a par value of Rs.10 per
share. These vouchers were converted into PTCL Shares in mid 1996.In 1995, Pakistan
Telecommunication (Reorganization) Ordinance Formed the basis for PTCL monopoly
over basic telephony in the country. It also paved the way for the establishment of an
independent regulatory regime. The Provisions of the Ordinance were lent permanence
in October 1996 through Pakistan Telecommunication (Reorganization) Act. The same
year, Pakistan Telecommunication Company Limited was formed and listed on all stock
Exchanges in Pakistan. Since then, PTCL has been working vigorously to meet the dual
Challenge of telecom development and socio-economic uplift of the country. This is
characterized by a clearer appreciation of ongoing telecom scenario where in
convergence of technologies continuously changes the shape of the Sector. A measure
of this understanding is progressive measures such as Establishment of the company’s
mobile and Internet subsidiaries (U-fone & Paknet) in 1998.
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post-monopoly era with deregulation of the sector in January 2003. On the Government
level, a comprehensive liberalization policy for Telecom sector has already been
announced now. Now PTA have issued License to two new telecom companies in
Pakistan TELENOR international and WARID TEL this act will put some challenges
for PTCL to cope with.
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Historical Backwound
1947
Posts &Telegraph Dept. established
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After having brief introduction from past end of PTCL now we move towards the
current situation of the company. In this part focus will be on the:
Structure of organization
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Presidents (EVPs) like EVP (Finance Central), EVP (Marketing), EVP (HR Central),
EVP (Accounts), EVP (Operation), EVP (Information Technology, Training &
Research), and EVP (Revenue). All these are appointed at Pakistan Telecommunication
Company, Headquarters at G-8/4, Islamabad. Apart from these EVP, there are also EVP
(Operation), EVP (HR) etc who are heading the other regions of PTCL in major cities
country wide. Then there are Chief Engineers and General Managers at H/Qs who
report to their relevant EVP. Then there are Senior Managers, Deputy Directors,
Assistant Directors, Account Officers, Assistant Account Officers, Financial Analysts,
Marketing Managers, Computer Programmers, and IT Specialists etc.
There are also Regional Heads (General Managers) to head PTCL Regions then come
the Senior Managers (Operations), Senior Engineers (Operations), Engineers to look
after the telecom system of Regions. There are also Senior Managers Finance, Account
Officers and Accountants to Handle Regional account and billing matters. Manager HR
& his staff are responsible to take care of Personnel affairs at Regional Level.
All the staff is recruited by the HR Department headed by SEVP HR. The HR experts
are responsible for hiring & to further streamline its recruitment process.
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MAIN OFFICES
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Switching Technology
There are 7 different kinds of switching technologies currently operational in PTCL
network.
> Alcatel
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Mar, 2008
Installed capacity 5273091
Working connections 4,405,161
These are few basic facts about PTCL network. So taking over from posts & Telegraph
Department in 1947 to now providing sate of art technology it is really big achievement.
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PTCL
is continuously improving its network. During the year 2007 PTCL installed
capacity was 4940154 but now in current year the installed capacity is improved. PTCL
achieved 1 00% digitalization in this year.
This feature of PTCL improved network & is being used to register & rectify Land Line
Faults in a computerized way. This system was working in few cities but now it is
available all over the Pakistan. (1 8)
Launch Of IN Platform
To augment the capacity and introduce additional value added services a new Intelligent
Network (IN) Platform was launched in October 2003. This platform has higher capacity
for prepaid calling cards and provision for introduction of new services.
This was the brief introduction of PTCL network now we move further and develop our
understanding about PTCL services and offerings.
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SERVICES OF PTCL
These services are basically for the common users (Individual/home users) those use
telephone in their home/work place and they are basically non business users.
Caller Line Identification (CLI): Calling line Identification (CLI) allow customers to
identify the caller before picking up the phone receiver. To subscribe to CLI services, a
customer needs a telephone set with display capability or a CLI device attached to the
phone.
Advantages:
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PTCL calling card is the most popular choice of millions of customers all over the
country. It is now available with balance transfer facility and follow on call facility.
Comes in easily affordable denominations of Rs. 100, 250, 500, 1000 and 2000.
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The basic concept of the service is to provide billing solution to PTCL customer. The
same PTCL Calling cards are used for this purpose.
Through these cards customer can pay his bill on phone. No additional charges for bill
payment transaction.
Advantages
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With the changing trends most telecoms are diversifying their services towards
Prepaid solutions .one of such modern era telecommunication service is Prepayment
Tele Phone (PPT).It provides the facility to subscriber to load a prepayment
Telephony card against their telephone number thereby generating an account on I/N
platform and any call made from that telephone will be charged to this account. the
service will provide state of art technological facilities to the subscribers.
Target market
Target market for the service can be segmented as follow:
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PTCL is striving hard to facilitate its valued corporate customers at each level of
service. PTCL offers a host of unmatched services to suite the needs of the Corporate
Customers. The list of Corporate Services is given as under. For more information
regarding any of the following services, PTCLCorporate CustomerCenters can be
contacted.
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I
/
Universal Access Number (UAN):
UAN (Universal Access Number) service is ideal for organizations Engaged in
marketing of products or services. Here is a list of business who can avail UAN
Service.
Banks
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Features
Call answer
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Service concept
This service is basically for telecom data and I.T companies. These companies will
install their equipment directly in PTCL premises in ready fitted environment. The
primary purpose is to provide a number of resilient and centralized connection and
control facilities in which co-location center’s communication can be located.
Benefits
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Service concept
The concept of the service just like toll free 0800 but charges a local call for each
connectivity attempt, UIN involves allocation of numbers to individual ISP’s who
are licensed by PTA.
Functionality
-
The service functions under single
meeting billing system, with promise of rich
dividends in terms of customer care.
Benefits
The benefit goes to the end users who happen to be any ISP customers.
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Target market
Corporate customer
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FINANCIAL ANALYSIS
Financial analysis of any organization is very necessary for the evaluation and
assessment of a firm. The information derived from these types of analysis should be
blended to determine the overall financial position. This analysis includes ratio analysis,
common size analysis and the study of differences in components of financial
statement. One of the primary objectives is identification of major changes in trends,
amounts and relationship and investigation of the reasons underlying those changes.
In the financial analysis of P.T.C.L we will analyze some important information about
the company. As I did my internship in human resource management, but it has not an
independent organization so I have to analyze the P.T.C.L for the analysis purpose.
Current ratio
Current Ratio is an indicator to determine the short term debt paying ability or the
liquidity of a company. It tells us that how many current assets are available to pay for
the current liabilities of the company. Current ratio of the company in 31 Mar 2008 is
1.67& is favorable for a company. The ideal condition is 1.1 but ratio is quite
reasonable.
.
Quick ratio:
Quick ratio or the acid test ratio also performs the same task as is performed by current
ratio but with more sophistication. Quick ratio of the company is 1.5 up to Mar 31, 2008
its quick ratio is decreasing. As P.T.C.L is a service organization there fore the quick
ratio is very good because there is not need of inventory as any manufacturing
organization needs.
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As already mentioned, presently PTCL has to face war with major competitors in
mobile phone & WLL telephony operators, however, there are also competitors of its
following subsidiaries/products: -
SUBSIDIRAY/PRODUCT COMPETITOR
PTCL Calling Cards (Product) Hello Cards, Call Point Cards, Call Mate
Cards, Global Telecom Cards.
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UFONE E its
3U
all aDOU11
Launched on January 29, 2001, Ufone is growing cellular operator in Pakistan. Ufone
services are offered to you by Pak Telecom mobile Ltd., which is a 100% owned
independent subsidiary of Pakistan Telecommunications Corporation Ltd.
U-fone has been a highly successful venture both in terms of subscriber uptake and
coverage. With fastest expanding coverage, unmatched product leadership, and
consistent focus on customers, Ufone has emerged to be the most prominent player &
has 2nd largest customer base in the market in the short span of its operations.
Ufone has started Sales in all the major cities of Pakistan which include Karachi,
Lahore, Islamabad, Peshawar, Rawalpindi, Kohat, Jehlum, Quetta, Sialkot, Faisalabad,
Multan, Sukkur, Gujrat, & Gujranwala including 1500 other small towns across the
country. New Connections are available at all ufone centers and authorized dealers for
just Rs. 50/ which includes Rs. 150/ of airtime. U-fone is in process of starting the sales
of connections in a large number of other destinations across Pakistan. This expansion
will also result in increase of Ufone coverage in many additional cities and highways.
U-fone is currently enjoying 20.53% user of Pakistan mobile industry. It means U-fone
has 17,800,424 subscribers.
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Main Features
Both postpaid and prepaid Ufone subscribers can enjoy any/ all Ufone services
including MMS, Ufone Internet, Global SMS, and Pocket Stocks etc. In order to use
any of the GPRS based services just call 333 and activate your GPRS subscription.
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PTCL was running its Internet Division through its region by the name of Public Data
Network (PDN). On December 1999 the PDN region was dissolved and all the assets
and Liabilities were transferred to Paknet Limited. Paknet made a fresh start with an
Internet customer base of 6000 as of January 2000 and successfully achieved the target
of its first year business plan of 50,000 Internet customers. Now it became Multi Media
& Broad Band Region which currently has a customer base of more than 130,218 (Mar
31,2008).
The Company commenced its business in January 2000 with a balance sheet size of
over US $ 7.0 million. Currently it has a revenue base of approximately US $ 5.0
million per annum and is most likely to double in the next fiscal year keeping in view
the market demand of Data products and expansion plans of the PTCL. In near future
PTCL is introducing a new IPTV service for its valued customers.
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COMPETITOR OF PTCL
There are 03 big players in mobile phone industry but 3 of them are the competitor of
PTCL:-
> MobiIink
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Warid Tel
Waridtel is also providing cell phone facilities in Pakistan. Waridtel having more then
15,114,678 subscribers which is 17% of Pakistan mobile industry.
NEW COMPETITORS
Other than mobile & land line PTCL is facing competition in F.W.T (Fixed Wireless
Telephone) product market. Below are the major competitors.
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Marketing Department
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department so we have to move traditionally .Classically, Marketing has been all about
the "four P’s": Product, Place, Price and Promotion. The marketer identifies a target
market, defines the product and Pricing to appeal to this market and a strategy to deliver
the product to the market. Thus the marketer is the steward of the value proposition,
ensuring that the firm is delivering maximum value to its customers.
We will briefly discuss below the marketing strategy, product planning, development &
management, Pricing strategy, distribution strategy and promotional strategy: -
Marketing Strateam
Normally, a marketing strategy identifies the target markets, the desired position in each
market and the marketing mix that will persuade those target markets to part with their
money. Market is targeted through market segmentation. Segmentation can be done on
four types i.e. Demographic Segmentation (age, gender, race/ethnicity, household type,
home ownership, education, employment, income etc.), Geographic segmentation.
Positioning oneself by product can do positioning differentiation, positioning by
product usage, positioning against a particular competitor, positioning against an entire
product category, positioning by association and positioning by problem, Marketing
Mix includes P’s i.e. Product, Price, Promotion and place.
TARGETAL4RKET
PTCL’s 80% revenue comes from just 20% customers, who are corporate customers
and other big and small business organizations. The main focus of PTCL marketing
efforts is on retaining and satisfying that 20% chunk of key customers at any cost. For
this purpose, PTCL is now established Corporate Customer Services Centers in major
cities to take care of these vital customers. Apart from these important customers,PTCL
targets general public and other small business companies for sale of its landline
telecom services like telephone, fax, Internet, as well as other services like CLI, VMS,
and Digital Facilities etc.
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2. Market Segmentation
Basically PTCL segmented its market on two bases
- Telephony
- Data
- Video
PTCL has segmented its market for its services and products to effectively deal with its
customers. Some of its services like Universal Access Number, Co-Location centers
and virtual private network are specially targeted at corporate customers and business
concerns. The other services like new telephone connections, digital services etc. are
meant for mass market. The services like Internet, fax facility etc. are targeted at both
the corporate and general customers.
POSITIONING STRATEGY
As PTCL is the sole provider of the landline telecom services in the country; it is the
market leader in providing these services because there are no competitors to challenge
its market leader status. Thus presently PTCL is facing no problems in positioning its
services in the market as a market leader because it enjoys monopoly in the industry.
However, with the deregulation of telecom sector PTCL is gearing up itself to maintain
this market leader position, on the other hand competitors are doing to challenge it.
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S.# Type of PSTN UAN Tele. 0800 0900 VPN PPCC VOIP
Customers M
BASIC TELEPHONY & VALU ADDED SERVICES
A. CORPORATE
1 Companies Y Y Y Y Y Y
2 ISP’s
3 Financial Institutes Y Y Y Y X
4 Data Operators Y
5 Special License Y
6 Govt. Y Y
7 Foreign Missions Y Y
B. RESIDENTIAL Y Y
DATA
DXX PRA BRA UIN VOIP CATV Co.Loc DSL
A. CORPORATE
1 Companies Y
2 ISP’s Y Y Y
3 Financial Institutes Y Y Y
4 Data Operators Y Y
5 Special License
6 Govt. Y Y
7 Foreign Missions Y Y Y Y
B. RESIDENTIAL Y Y Y
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3. MARKETING MIX
Product Planning:
In PTCL, so far products had been planned and developed by the engineering
department and marketing professionals had no role in product planning as there was no
marketing department in the Company. But now marketing professionals have been
inducted in the Company and they will definitely have a close coordination with
engineering department in planning and development of products to satisfy customers’
desires. It should also be kept in mind that PTCL is a technical organization enjoying
state-of-the-art telecom technology. The services offered by PTCL are built in the
technology and with the passage of time; PTCL rolls out these products in the market.
even many products, which have become obsolete in developed countries, are launched
as new products by PTCL. But we cannot deny the fact that being monopolist, PTCL is
depriving customers of many digital services that are available free in many other
countries. However, as the Marketing department has been established now, it is
expected that in future there will be close coordination and liaison between marketing
professionals and engineers for planning and developing customers oriented products.
PTCL is also in the process of hiring brand Managers to manage its different products
in a thorough professional way.
Pricing Strategy:
Being a government organization, PTCL is not authorized to determine the prices of
its products itself, the Telecom Regulator Authority viz. Pakistan Telecommunication
Authority (PTA) fixes the prices of telecom services. The process is such that whenever
PTCL intends to increase or reduce the rates of its services, it submits its Proposal to
PTA for approval. PTA then calls consumers’ representatives, journalists and other
interested groups for discussion on the proposal. After listening to the viewpoints of all
the interested parties, PTA gives its decision. If PTA approves PTCL’s proposal, the
new rates are enforced. It may be mentioned here that telecom technology is only
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technology whose rates are on the decline with the passage of time. PTCL also
rationalizes its tariff with the passage of time. Tariff rationalization process started in
1997 as part of GoP Telecom Sector policy for privatization of this sector. It was mainly
focused on rebalancing the domestic process like NWD, international, local call, line
rent etc. Rebalancing is completed by the end of 2003 (as per Tariff rates) with the
objective to position PTCL for competition.
4. PROMOTIONAL STRATEGY
PTCL is using following components of promotional mix for the promotion and
Publicity of its product/services.
Advertising:
In promotional mix, PTCL’s main stress is on advertising in print and electronic media.
PTCL periodically places its advertisements in print media on services like "H/Qs
hotline 0800-44544", "Caller line identification (CLI)", "Voice Messaging Service",
"Digital Facilities'' "PTCL Prepaid
, Calling Cards", "Inquiry 17", "Complaint 18",
phone bill cards prepaid telephone etc. to remind the customers of these services.
Sometimes, corporate ads are also released to print media to mark special occasions.
PTCL’s Commercials on "Prepaid Calling Card", "CLI", "Voice Messaging", "Digital
Facilities" etc. are also broadcast immediately on electronic media as reminders to
Customers.
Sales Promotion:
PTCL charges 1/3rd rates on national calls from 06:00 pm – 07:00 am and local calls
are free from 1 1:00 pm to 06:00 am to promote the usage of its telecom network.
Moreover, PTCL offers special rate packages on special occasions like Ramadan
Package and EID package, which offer customer reduced rates for specific timings. For
Example, In EID Package PTCL charges half rates from 6:00am - 6:00pm and quarter
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from 6:00pm - to attract customers to use its telephone service. These rates
6:00 am
result in increased revenue for PTCL and also facilitate the customers to talk to their
near and dear ones on these special occasions on affordable rates.
Personal Selling:
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This toll free No is used to change the tariff packages of land line, WLL (V-fone),
PTCL phone n net service activation, & for Broad Band customers. The service
activation is electronically ordered & activated within 24 hours through concerned
department.
b) 17 (Telephone Directory)
This facility is also Tol Free & is used to obtain the telephone numbers of some specific
subscribers (College, Govt. offices, Private offices etc.). This is centralized & is being
used as Telephone Directory.
To register the faulty Telephone complaints PTCL has established a Toll Free No 18
where a computerized central node is used to register & rectify the consumer
complaints for land line numbers.
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REVENUE DEPARTMENT
The revenue generated by the marketing department through selling the company
services/products is collected by the Revenue Department. The roles played by the
Revenue Department are following.
The printing is basically carried out by regional billing computer center at every
regional headquarter. These printed bills are handed over to Post Office after sorting &
stapling by the Assistant Revenue Officer’s staff at Distt level.
In case of late payment or any other discrepancy due to missed collection by banks the
previous amount is also included in the new bill. The revenue office is responsible for
such kind of correction.
The amounts defaulted by the customers or the bad debts are also collected through
revenue department. Each Telecom Recovery Inspector (TRI) is assigned a target of bad
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debts collection on monthly bases. Now a days as incentive is also offered on more than
1 00% recovery each month.
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Now we move towards the most important part of the internship report the SWOT
analysis after working 2 month in the company I find some critical issues about PTCL.
After carefully analyzing these true issues of an organization now I am able to
understand the organization in right way so at the end of my report I will go for SWOT
analysis of PTCL.
=>STRENGTH
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State Of The Art International Gateway Exchanges & Satellite Earth Stations
PTCL have largest net work with its state of art technology and new digital
exchanges. These are the few important characteristics of PTCL network.
International Submarine Cables
Large Earnings
As described earlier that PTCL with more then 4 million users having greet
revenues this is another strength of the company
Government support
=> WFAKNESS
> Image – Government organization
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=> OPPORTUNITY
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Mv Pro ect
0
The H.R department of the company generally performs the following roles:
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The SEVP of the H.R. Department is the individual most actively involved in policy
revision to cover recurring problem or to prevent anticipated problems. Ordinarily these
are proposed to the president of the company, and it is up on the latter’s authority that
the policy is actually issued. When proposing a new or revised policy the personnel
director must analyze problem that have occurred in the past, survey other companies to
determine how they handle similar situations, discuss the matter with colleagues and
subordinates and give due consideration to the prevailing philosophy in the
organization.
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ADVICE
A major portion of the activities of those engaged in staff personnel work is in the
nature of counsel and advice to line manager. Countless examples can be given. A shop
foreman may be confronted with a grievance over distribution of overtime. Another
foreman may have the problem employee who he feels should be disciplined or even
suspended. At the time of the annual review of all salaried personnel for possible pay
increases, the operating manager plays a key role in advising operating manager on the
administration of the program. An apparent concerted slow down may occur in the
assembly department. It may have been instituted by the union in retaliation for the
cutting of piece rates the week before. How should production supervision handle this
situation.
The H.R. Managers and their staffs are expected to be fully familiar with H.R. policy,
the labor agreement, past experience and the needs and welfare of both the company
and the employees in order to develop a sound solution. Successful personnel specialist
must be people centered. They must be feeling sensitive, wants, and motives of other
people. At the same time they must continually be cognizant of their obligation to
preserve the structure and functioning of the organization. In fact, this really is the
essence of H.R. management. Management must seek to so direct and coordinate the
efforts of the people that the goals of the organization are achieved while at the same
time providing need satisfactions for the members of that organization.
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SERVICE
The service responsibilities of the H.R. department are apparent when one examines
such things are as the employment, training, and benefits functions. The tasks of
recruiting, interviewing and testing job applicants are performed in the H.R. Dept.
Training programs are planned, Organized and often staffed through the H.R. Dept.
H.R. Dept must see that adequate instructional materials and facilities are available.
Once pension and insurance programs have been setup, all claims must be through the
H.R. Dept. The maintenance of adequate employee records is a service function that
permeates all functional specialties within the personnel field.
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Control
The H.R. Dept carries out important control functions. It monitors the performance of
line department and other staff departments to ensure that they conform to established
personnel policy, procedures, and practices. The control function of the personnel
department is quite comparable to the activities of a quality control group that measures
product variables to ensure conformance to engineering specifications or to the
activities of the auditing staff that inspects accounting records to ascertain conformance
with prescribed standards.
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H.R. Management activities are carried on both by the staff H.R. Dept and by operating
management in the course of directing the activities of the work force. Variation from
the pattern described may occur in particular companies because of special
circumstances.
This function includes recruitment, selection, and induction into the organization. The
initial decision to add someone to the payroll is made by line management. It is also its
responsibility to determine the content of the job to be performed and the employee
qualifications necessary to perform the job satisfactorily. Very commonly, statements of
job content and employee qualification have been previously worked out jointly
between line management and the H.R. Dept. These are recorded in the form of job
descriptions and job specification. The H.R. Dept must develop and maintain adequate
sources of labor. It must set up and operate the employee selection system, which may
include interviews, selection tests, a medical examination, and reference checks. Quite
commonly the role of the H.R. Dept is one of screening with the final decision to hire or
reject being made by the supervisor who requested the new employee. However, in the
case of large-scale hiring program of unskilled or skilled workers, the H.R. Dept is
commonly granted full and final authority to make the hiring decision. The new
employee’s supervisor bears important responsibilities for introducing his/her to the
new work environment. This is often called orientation.
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President of PTCL
IF
SEVP HR
IF IF IF
IF
I F IF IF
IF IF
I F
S.E TRAINING R.T.T.S --
LHR
OFFICE STAFF TO
R.M HR
S.E TRAINING RTTS
MULTAN --
* The staff tree for other GM’s HR (South, North) is also same as per GM HR Central.
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For these tasks the H.R. Dept serves primarily in a coordinative capacity. When
employees are moved from one department to another either because of the needs of the
business or because of individual requests, the personnel records may be studied to
ascertain that they posses the requisite skills. Layoffs typically are processed by the
H.R. Dept to ensure that the proper order of preference is followed. This can become
complicated of combinations of jobs, departmental, and plant wide seniority rights must
be observed. When a vacancy occurs in a position, it may be filled by promotion from
within or by direct hiring from outside the company. This decision is often made jointly
between the H.R. Manager and the executive in change of the department where the
vacancy has occurred. Many companies may establish policies to cover matters of this
type. The actual final decision as to which candidate is chosen for the promotion is
largely made by the executive in whose unit the vacancy has occurred.
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On-the-job training and coaching are performed by the line supervisor or by a specially
designated employee who acts in the role of an instructor. It is the responsibility of the
personnel industrial relations group to determine training needs in cooperation with the
line management. Once the needs are established, the personnel training specialists
must design a program to accomplish the desired results. If the program takes the form
of in service class room courses, it usually is administrated by H.R. Department.
Coaching, performance appraisal, and post appraisal counseling, job rotation,
understudies, and special broadening assignments are largely executed by operating
managers but coordinated by a central H.R. Dept.
PTCL has established its own training facilities as detailed below:
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trainings.
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COMPENSATION ADMINISTRATION
The work of designing and installing a job evaluation program is handled, for the part,
by the H.R. department with some consultation with line managers. The decision to
adopt a particular pay structure with pay grades and fixed minimums and maximums for
the grades is a top management responsibility.
The day-to-day work of analyzing jobs, evaluating their worth according to a formal job
evaluation plan, and maintaining suitable records is are H.R. dept. functions Periodic
wage are conducted by the H.R. dept, but any firm decision to rise or change the entire
schedule is particularly always reserved for the chief executive officer of the
organization.
Following three types of compensation packages are being served to PTCL staff.
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Discipline has two principal meanings. In the first sense it means "training that molds or
corrects." This means the achieving and maintaining of orderly employee behavior
because the people understand and believe in the established codes of conduct. The
second meaning of the term discipline refers to punishment of wrongdoers.
The H.R. department commonly assumes the responsibility for formulating the list of
necessary rules together with the range of penalties for each offense. Frequently this list
of rules and penalties is discussed and cleared with high-level line management before
it is issued and communicated throughout the organization. These rules are called terms
and conditions formerly known as Employment & Discipline (E&D) rules.
Most commonly, actual approval by the H.R. department has to be obtained before and
employee may be discharged. The reason is that discharge is a very serve penalty and
should be used only when a very clear case can be shown. In addition, it is especially
vital to achieve companywide uniformity in the handling of such cases.
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LABOR RELATIONS
When a union has been certified by the National Industrial Relations Commission
N.I.R.C, as the result of an election, as the sole and exclusive bargaining agency
(C.B.A) for the employees, then management must bargain with it in regard to wages,
rate of pay, hours of work, and other conditions of employment. The principal tasks
involved in handling labor relations are contract negotiation, contract interpretation and
administration, and grievance handling.
The H.R. department plays very significant role in labor-management relations. The
director of industrial relation usually serves as a key member of the bargaining team
often acting a chief management spokesman. In operating on a day-to-day basis under
the terms of the labor agreement, line supervision often finds frequently occasion to
consult the H.R. department regarding such matters like allocation of over time,
handling of transfers and layoffs, and the application of contract work rules.
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The actual decision to establish or to expand these programs is nearly always made by
top line management upon the advice and consultation of the H.R. department. The
actual design of pension and insurance programs requires a great deal of technical
knowledge. These programs are generally worked out in conjunction with insurance
companies or insurance consultants. After these plans are installed, the day-to-day
processing of claims is handled by the H.R. department
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ORGANIZATION DEVELOPMENT
Organization development is a general approach for improving the effectiveness of an
organization that utilizes a variety of applied behavioral science methodologies. Among
the objective of the OD are to increase the level of trust and supportiveness among
people in the organization, enhance interpersonal skills, make communication more
open and direct, directly confront problems and to tap the knowledge of all who can
contribute to problem solutions wherever they may be in the organization.
Consultants are often involved in OD work they work jointly with management to
collect data, diagnose problems and work of solutions. Typical kinds of OD activities
are interventions or confrontation meetings, team buildings, survey field, back conflict
resolution, laboratory training and managerial grid exercises and projects.
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Very commonly the Senior Executive Vice President (SEVP HR) in the company bears
the major responsibility for insuring that the organization complies with the various
equal employment opportunity laws and regulations. She or he often delegates the day-
to-day detailed administration to someone within the H.R. department who either
specializes in this field of work or who performs these duties along with others
department such as the employment function. Usually the Chief Executive Officer
(CEO) of the company, whether she or he is called the chairman/chairperson of the
board or the president, plays a key role in the formulation and implementation of equal
employment policy.
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RECRUITMENT:
The department first determines the need of employees to be hired .The post against
each vacancy is advertised and then the applications are invited from the applicants .If
there is a post of manager cadre; the SEVP personally is the interviewer of the
interviewees along with his team.
TRAINING:
Then the qualified candidates undergo a training period under the banner of Human
Resource Department .There are Telecom Staff colleges at Lahore & Hari Pur. Then the
specified persons are appointed against each specified post so the best results are
expected and hence the performance and good will of the PTCL is increased.
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TRANSFER:
Human Resource Department of the company also deals with the transfer of the
employees because the Human Resource Department knows the demands of the job and
the right person is employed over the right place by transferring him to that post.
Health and safety matters are also handled by the Human Resource Department in the
organization. As there are no apparent dangers to the employees and customers hence it
is the responsibility of the Human Resource Department to see through the matter.
EVALUATION:
The employees are then properly evaluated by different evaluation criteria and
procedures in order to motivate them and to enhance the performance .The job appraisal
system comprises of different questionnaire depending upon which the whole system is
forwarded.
UNION:
The union plays an essential part for the labor management relation.It bargains with the
management in the light of the demands of the employees .It is the responsibility of the
Human Resource Department which holds the formal talks and the negotiations
between the parties. Human Resources Department is also responsible for the dealing
with other organizations running the same business.
Discipline and discharge is the necessity of each organization and it is maintained by
the Human Resource Department of the company. If an employee is creating problems
for the administration for nothing, he may be warned and depending upon the severity
of the matter and allegation he may be suspended and even terminated.
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REFRESHING COURSES:
The refreshing courses enhance the potential capabilities of the staff and the
performance as well. The refreshing courses are conducted by Regional Telecom
Training Schools (RTTS) and some times by Telecom Staff Colleges & are attended by
the staff members on the recommendations and behalf of the H.R. Department.
Refreshing courses are for the managerial and Technical staff. So they are equally and
firmly evaluated and enhancement of their capabilities is achieved.
PAY PACKAGES:
The packages are also determined by the Human Resources Department. These are
determined on the basis of performance, ACR, qualification and seniority. It has
comparatively low pay packages yet good ones.
The managerial posts are filled directly by the Human Resource Department. On the
other hand the Technical Lower and mid level supervisory staff is hired by the means
of:
1) Direct Hiring.
2) Promotion on seniority bases.
The promotions are on the seniority cum fitness basis .So the qualified and the efficient
workers are supposed to come up to the top. Human Resource Department also deals
with the retention and firing of the employees. In case of deceased employee, one of his
children gets the job in the company according to his qualification. According to
qualification and skills it ensures the employee benefits.
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More over the Human Resource Department also cares for the old age benefits of the
employees .It is obvious that the Human resources Department is of key importance and
is playing a complementary role in the development and promotion of the company.
INFORMATION TECHNOLOGY:
The information system is the core of the operating of the each and every organization.
It helps in the policy formulation and the running of the business affairs properly by
providing the 1st hand and accurate information. The whole Human Resource
Department functionality depends upon the information system. Better the information
system, better the Human Resource Department. The company is now in a process to
develop its own HRIS system so that it may have good information system and be able
to serve the employees as well customers through Human Resource Department
efficiently and effectively.
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CURRENT HR ISSUES OF
PTCL
Under this program, all regular status employees under the age of 58 as of 15
November, 2007 are eligible to participate in this PTCL VSS. Employees interested in
opting for VSS will have 60 days from the announcement date of 15 Nov, 2007 to
complete and submit the enclosed Option/Wavier Form to the VSS Support center using
the enclosed pre- addressed & pre-paid envelop. If an employee choose not to opt for
the VSS & remain at PTCL under the current terms of employment. The VSS is
completely voluntary. Employee decision either to participate or not to participate is
voluntary at his will.
Additionally PTCL established a VSS support center to assist employees in the decision
making process. The support center staffed with Support Officers that can help
employees understand his individual VSS package & answer any questions he may
have. The support center remained available through out the VSS program rollout,
Monday to Thursday 08:30 AM to 05:00 PM – Friday 08:30 Am to 12:30 PM (Break
12:30 PM to 02:00 PM) -
Saturday 08:30 AM to 03:30 PM by calling toll free number
0800-13531. ^ E-mail: vss@ptcl.net.pk
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Post Marked
No later than 14 Jan,
2008
-
---~'
Employees Call VSS
Support center to
confirm Receipt of
Option Form
After 15 days of
submitting Form
I
PTCL Ma i agement
Reviews & Accept or
reject Applications
Postmarked
No later than
24 Feb, 2008
-
----~
Employees Submit
40~ Completed off -
Boarding & or Pension
paperwork
No Later than
4 April, 2008 No Later than 15 days
After VSS Acceptance
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WEAKNESSES
The Human Resource Department is not up to the mark for the proper
appraisal system of the staff.
The policies of the company are determined by the board of directors in
accordance with the H.R. Department. However there are certain policies in
which the Human Resource Department is dependent on the Ministry of IT
& T Govt. of Pakistan
Employees have developed a psychology that promotion criteria &
procedures of the Human Resource Department of the company are not
justified.
The quality of service in areas is much poor hence creating the problems for
customer.
1 1Human
- Resource Department is lacking employee training centers. There are
only two Staff colleges. On the other hand the training opportunity is not
provided to all the staff equally.
If an employee wants to study during the job, he has to take approval from
the Human Resource Department of the company; there are certain bottle
necks for taking such approval. The management also never encourages
employees for enhancing there qualifications/technical skills.
The staff did not get any benefit for their higher qualifications in the shape
of promotions or pay increments.
Proper evaluation of the employees is not in the normal functioning of the
company.
Refreshing courses are on & off, not timely and frequently.
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g The
o. proper information system is not in progress for the Human Resource
Department. The automation process by the Human Resource Department is
slow hence delaying the functioning of the company.
1 Human
1- Resource department lacks trained & related qualified staff and it is
very difficult for the SEVP Human Resource to do the right things for the
organization and it takes much time for normal working of the organization.
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RECOMMENDATIONS
The Human Resources should take less time in recruitment and training the
staff.
Highly qualified & trained staff may be deputed in HR department.
Refreshing courses should be adequate and more frequent during the year.
The promotional criteria by the Human Resource Department should be
defined and be as per rules.
More training centers should be established. If there is lack of resources, it is
difficult, the training centers of the other organizations in the same capacity
can be utilized by determining the terms and conditions.
1 During
1 '. the training by Human Resource Department the ethical values
should be more emphasized.
The proper and competitive evaluation of the methods and procedures
adopted by other competitors will enhance the performance of Human
Resource Department.
This is the era of Information Technology. The functions and procedures of
the company should be converted from manual to the automatic. It will
enhance the performance & accuracy of the Human Resource Department
and ultimately of the company. Human Resource Department should allocate
resources for this purpose.
Human Resource Department may advice and train employees for one
window operation in order to reduce the time and conserve the resources.
Agents for the promotion of the company policies and to facilitate the
1 1 1 '.
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CONCLUSIONS 0
No doubt PTCL is enjoying monopoly but the time is came when competition will force
company to change its policies to become favorite telecom service provider in the
market & keep its current place & customer base. The actual working substances are the
human beings .It goes with out saying that Human resources are the most important in
the organization and so does the Human Resource Department .It integrate all the
activities and functions of the company like job analysis, recruitment, staffing, training,
designing compensation package, employee’s appraisal system. Human Resource
Department plays the key role in the hiring, retention, motivation and promotion of the
employees .Actually it assign the specified duties to the specified persons in this age of
specialization. Human Resource manager should be well versed and confident in his
field. He should be humane, well natured and have go face reading capabilities .All this
ensures his success.
He should be of the notion "victory is not everything, but the way of fighting is''
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Chan2e of Address
Customer
Request --
Not Verified
IF
stom
Verification
Verified
IF
IF
CRC Send
Document With Log
in which he writes
Address or May be
Reason
Bills Late Receive / Not Received/Return
Customer
Request --
Not Verified
IF
stom
Verification
1. Address is
right, Verified
2. Post is
received if yes
then who is
received give IF
the name of
CRC Check the Reason of
this person.
Problem
3. Address is -- NIC
right But Not
Name of Owner
Located by Father’s Name
Post man
Address
Ph No.
References
IF
Customer
Request --
Not Verified
IF
om
Verification
Verified
IF
Customer ---
Request -
Not Verified
IF
orne
Verification
Verified
1. If Value
Added service
is being offered
by the PTCL. IF
Customer
Request --
Not Verified
IF
om
Verification
Verified
1. Verify
user’s
previous
payments IF
IF
--
CRC Change the
Package and
send the Log
Complaint Re2istration for Faultv Phone (Land Line)
Customer request
(Dialed 18) Complaint
registered got Complaint
Number
IF
1. Verify IF
Customer Address.
& cu
2. Verify
ddre
Customer Name. I verification along 1 . Verify
Natur
Cabinet /DP/Pair.
fault
2. Verify from
'~,~ Switch room.
IF
3. Locate the
concerned E.S,L/M
4. Handover
M
a
n
By Line
the fault to E.S,L/M
IF
Verification by CFMS
by dialing customer
T/No
IF IF
Request rejected
IF
IFEmployee Request for
Leave
IF
IF Parent SE Operation
Verify Record
Leave
-- Balance
Record in
Master
HRIS
Data
Sufficient Leave Balance in
Hand
IF
IF
I r
Leave Approved
Leave Approved by
(Regional) Manager HR
IF
Copy of Approval
forwarded to G.M HR for
master record (Leave)
update.
ORGANIZATION CHART OF PTCL
SEVP
(I/ AUDIT) COMPANY G.M
G.M SECRETARY N. S. S
(I/AUDIT)
EVP EVP EVP EVP EVP EVP EVP EVP EVP EVP EVP EVP
(Accounts) (Finance) (R
-) mev) cf.h & SL Pl) (0) (0) (0) ITT&R I/C (M~Mfim& (Bus. Dev.)
H/QTRS CENTRAL SOUTH C/C)
C.E
(Po & Reg.)
Company
Financial Statements
IF
-
7
-1
1,
----4
~ft
~~
-
-
-}
4
I
PAKISTAN TELECOMMUNICATION COMPANY LIMITED
CONDENSED INTERIM BALANCE SHEET
AS AT MARCH 31, 2008 (LIN-ALIDITED)
(Rupees in thousand)
18,957,421 17,459,855
CURRENT LIABILITIES
138,850,414 152,820,860
V- '~''
.1-09
ptl ~t0
PAKISTAN TELECOMMUNICATION COMPANY LIMITED
CONDENSED INTERIM BALANCE SHEET
AS AT MARCH 31, 2008 (UN-AUDITED)
(Rupees in thousand)
CURRENT ASSETS
-
Receivable from Government ofPakistan for VSS 2,164,072
Loans advances, deposits, pre-payments and other receivables 5,870,399 5,228,560
138,850,414 152,820,860
PAKISTAN TELECOMMUNICATION COMPANY LIMITED
~W,
0 401
S A 10,A 0
(Rupees in thousand)