ORGANIZATIONAL BEHAVIOR

PROJECT ASSIGNMENT:

SUBMITTED TO:
Sir, SYED ZAHEER ABBAS

SUBMITTED BY:
Syed Muhammad Hassan 10160
Shahid Ali 10168

NATIONAL UNIVERSITY OF MODERN LANGUAGES

1st Dec, 2010

Introduction

Pakistan Telecommunication Company Limited (PTCL) is all set to redefine the established
boundaries of the telecommunication market and is shifting the productivity frontier to new
heights. Today, for millions of people, we demand instant access to new products and ideas.
More importantly we want them for their better living standards with increased values in this
ever-shrinking globe of ours. We are setting free the spirit of innovation.
PTCL is going to be your first choice in the future as well, just as it has been over the past six
decades.

Vision

To be the leading Information and Communication Technology Service Provider in the region by
achieving customer satisfaction and maximizing shareholders' value'.

The future is unfolding around us. In times to come, we will be the link that allows global
communication. 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.
Mission

To achieve our vision by having:

 An organizational environment that fosters professionalism, motivation and quality

 An environment that is cost effective and quality conscious
 Services that are based on the most optimum technology
  "Quality" and "Time" conscious customer service
 Sustained growth in earnings and profitability

Core Values

 Professional Integrity
 Customer Satisfaction
 Teamwork
 Company Loyalty

Corporate Responsibility 

 PTCL employees donate One-Day salary for IDPs 

 Donation to SOS Villages
 Scholarships for Persons with Disabilities
 Collaboration with Universal Service Fund (USF)
 Donation to Earthquake victims in Balochistan
 Donation to Benazir Income Support Program
 PTCL Gets Environment Friendly
PTCL Privatization:

PTCL is the largest telecommunication company in Pakistan. This company provides

telephony services to the nation and still holds the status of backbone for country's
telecommunication infrastructure. The company consists of around 2000 telephone
exchanges across country providing largest fixed line network. GSM, CDMA and
Internet are other resources of PTCL, making it a gigantic organization.
The Privatization Commission, Government of Pakistan had planned to privatize 51
% shares of entity through bidding. In response, the government faced stirred
opposition from the employees of PTCL lead of employee’s parties and strike of
about 20 days lead the knees of government down, which re-scheduled the
mechanism and presented plan of privatizing 26 % of shares along with the
managerial powers in 2006 for some about US$ 2.6 billion to a Dubai based
TelecomCompanyEitsalat.
PTCL was one of the Pakistan profits earning Telecom Company. After getting
Privatized PTCL is losing its base as its subscription declined from 5.12 million to
4.40 million in 2008. While the revenue declined from Rupees 69,085 million in 2006
to RS. 61,085 million in 2008. Similarly the Profit after tax in 2006 was some about
Rs 20,777 million while in 2008 there is a loss of Rs. 2,825 million. The financial
statement shows a continuous growth till 2006 while after privatization the company
is facing severe financial shortcomings (PTCL. limited). (Source from ptcl web)

A challenge aroused to PTCL when government announced 50% increase in employees pays and
other facilities are also provided in budget 2010.the notification was sent to all division.
(exhibit:1)but the ptcl hr made some amendments in this notification and sent a interoffice
memo.(exhibit:2)

Ptcl employees start strike in protest against the lack of increments and allowances by the PTCL
management in accordance with a federal government decision. PTCL employees observed full
day strike over “Salary Package 2010” that offers 50 percent pay raise of their salaries in year
2008.

Strike resulted into a virtual halt of almost all PTCL services including 1217, 1218, OSS centers
and others. PTCL employees are demanding Pay Raise by 50% of their current basic salaries as
per government’s notification, medical allowance, Eid reward and promotions for all.

Government of Pakistan had issued a notification of 50 percent pay raise of current salaries of
PTCL employees. But ptcl management didn’t take any step. In response to it workers strike
effect the organization in the following way.

 PTCL was losing both the revenue and its clientele

 many industrialists customers have switched over to wireless
 PTCL was not receiving complaints. It affects company goodwill.
 facing shortage of staff
  increased work-load on remaining workers, affected their performances
 Number of complaints had also in handling time keeping in mind the increased work-load
on linemen.
 delay in complaint handling
 Problems of consumers and complaints were mounting as rainy

 The protesters have locked down all 84 telephone exchanges in the different region. As a
result, all telecommunication services in the region remained suspended with PTCL
consumers being unable to get their dead telephone connections repaired.

The PTCL employees on strike vowed to continue the protest until their salaries were increased
and the PTCL management retracts its decision to freeze salaries and Eid bonuses of employees
on strike.

Pakistan Telecom Company Limited workers protest entered a complex phase with Company
management trying to hoodwink both the workers and the media over the issues of thousands
striking employees. The management issued a loose letter signed by the Executive Vice
President (Finance) of the Company claiming that it had decided to withdraw new Unified Pay
Scales (UPS). Other than a small minority of the workers not more than 260 employees
belonging to Malik Maqbool union, majority of protesting employees rejected the loose letter.
They demanded prudent revision of pay scales of as many as 23,000 employees affected by the
UPS out of the total strength of the Company at around 40,000.
The united union of the PTCL employees therefore vowed to continue strike until their demands
were met. Waseem Minhas one of the workers leaders told The Nation that they had invited their
regional affiliate unions to the federal capital for mounting up their protest campaign.
Other than withdrawal, the loose letter of the PTCL also stated, As far as salaries of around 260
employees who reported for duty after the strike of the NCPG employees, it has been agreed that
their salaries will be released immediately after they call off the strike and sincerely work for the
betterment of the Company.
The protesting employees alleged that the letter issued by the Companies Public Relations
Department was fake and a mere deceptive technique. They also alleged that under the
camouflage of releasing NCPG employees’ salaries the management has been trying to bribe a
certain group of the workers.

Meanwhile, the talks between Mutahidda Workers Ittehad delegation with Secretary Labour &
Manpower Iqbal Puri failed without any development.

A 5-member employees’ delegation, headed by Chairman Employees Union Haji Zahid, called
on the Secretary Labour and held talks for fulfillment of their demands. However, the talks
failed, as neither side was ready to show flexibility over the issue. The issue becomes more
complex as the days passes.

The Secretary Labour urged the delegation that they had already been given 30 percent salary
raise by the management and they should call off the strike call.
QUEASTIONS:

Q1: what was the main cause of conflict?

Q2: Who was the aggrieved part?

Q3: Was the conflict good for organization explained with reasons?

Q4: What would be your decision if you are the part of management?

Q5: Who is liable for damages due to strike?

REFRENCES:

www.ptcl.com

Dawn news

Annual report ptcl; 2006

EXIHBIT:1
EXIHBIT: 2

No. HR/Salary/2010                                              Dated: August 11th, 2010

Inter Office Memo

Subject: Salary Increase for Regular & NCPG Employees

The Management is pleased to announce the following increase in salary for all the Regular and
NCPG employees as an immediate relief to cover the inflation in the country effective 1st July
2010.

1. Non-Management Employees:

1.1. For the non-management Regular employees, the increase in salary will be equal to 50% of
the initial Basic Pay of PTCL Pay Scales, 2008. This will be termed as “PTCL Allowance”.

1.2. For NCPG employees, the same increase will be allowed in accordance with the equivalent
mapped scales as elaborated in the salary package 2008 notified on 29-9-2008.

2. Management Employees:

2.1. For the Regular Management employees, the increase in salary, termed as PTCL Allowance,
will be based on the individual’s performance as depicted in the last PMS for the calendar year
2009.

The individual performance will be determined on the basis of the Forced Ranking system as per
the following categorization:

S. No. Ranking Salary Increase

 Top 10% 50%

 Next 20% 42%
 Next 40% 34%
 Next 20% 26%
 Bottom 10% 18%

This allowance will also be calculated based on the initial basic pay of the PTCL Pay Scales,
2008.

In addition to the above, management, in line with the assigned business targets, is
currently considering to issue further incentives in terms of salary increase based on the
performance of the company during first and second half of this financial year ending
December 2010 and June 2011 respectively. These will be communicated shortly as soon as
finalized. (Shahzad Safdar Khan)GM (OD)