Introduction To PTCL:: History

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INTRODUCTION TO PTCL:

Pakistan Telecommunication Company Limited(PTCL) is a megacorporation and a leading telecommunication authority in the Pakistan. The corporation provides telephonic services, intrnet services and many other services through nation-wide and is the backbone for country's telecommunication despite arrival of a dozens other telecommunication corporations, including Telenor, Wateen, World call, China Mobile Ltd, etc. The corporation managed and operates around ~2000 telephone exchanges across the country, providing the largest fixed line network. Data and backbone services such as GSM, CDMA, Broadband Internet, IPTV (smart tv). HISTORY: the Government in 1991, announced its plans to privatize PTCL, 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. SHARES OF PTCL: In 2005 Government of Pakistan decided to sell 26 percent of this company to some private corporation. There were three participants in the bet for privatization of PTCL. Etisalat, a U.A.E based company was able to get the shares with a large margin in the bet. OWNERS OF PTCL Government of Pakistan(62%) Etisalat(26%) General share holders(12%) COMPANY PROFILE: Corporate Vision: To be the leading Information and Communication Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders' value'. 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 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. PTCL is the incumbent fixed line operator providing premium quality with outreach. We support both VoIP and TDM through our gateways and soft switches. .PTCL owns more than 20,000Km optical fiber (OFC) network connecting 1062 cities/towns which are providing voice, data and video services. CUSTOMER PROFILE: PTCL is successfully maintaining its leadership position in domestic telecommunication market with 23.5 Million LL /WLL/GSM subscribers. We provide Broadband, IPTV and Telepresence, and host of other value added services. SERVICES PROVIDED BY PTCL:

Landline EVO Wireless Broadband

Broadband Pakistan IPTV Service (Smart TV) Pak Internet Exchange V-fone International Network

COMPETITIVE PRESSURE OF PTCL: Before 2002 PTCL had no competitor in the market and other companies are legally not allowed to enter into competition with PTCL. So PTCL was performing its activities freely without any pressure. But now PTCL has to change its strategies to face the competitors because there are competitors such like: China Mobile Mobilink Telenor Warid Word Call, etc in the market to compete the PTCL.

Company Registration Number : 0035959 Company NTN number : Net income: Revenue: Website : 0801599-6 U.S. $16 million (2011) U.S. $310 million (2011 www.ptcl.com.pk

ORGANIZATIONAL STRUCTURE:
Organizational structure describe the organizationals framework or system of communication and authority. In other words the Organizational structure sets forth each principle, management position and helps to define authority and responsibility. The organizational structure of PTCL is as follows:

ORGANIZATIONAL CHART
Presiden t & CEO

SEVP (Technic al)

SEVP (Operati ons)

SEVP (Finance )

SEVP (Comme rcial) EVP (Custom er Services )

SEVP (Corp. Div.)

SEVP (HR & Admin)

SEVP (B. Zone North)

EVP (Switchin g)

EVP (Transmi ssion)

EVP (Finance )

EVP (Sales)

EVP (Marketi ng)

GM (South)

GM (North)

Regional GM (South)

Regional GM (North)

Regional GM (Central)

Walid Irshaid President & Chief Executive Officer Muhammad Nehmatullah Toor S.E.V.P (Finance) / Chief Financial Officer(C.F.O) Muhammad Nasrullah Chief Technical Officer (C.T.O) Syed Mazhar Hussain S.E.V.P (Human Resource) Hamid Farooq S.E.V.P (Business Development)

Sikandar Naqi S.E.V.P (Corporate Development) Naveed Saeed S.E.V.P (Commercial) Furqan Habib Qureshi S.E.V.P (Business Zone South) Jamal Abdalla Salim Hussain Al Suwaidi S.E.V.P (Business Zone Central) Jamil Khwaja S.E.V.P Special Projects Farah Qamar Company Secretary Zahida Awan E.V.P (Legal) In PTCL, president/ CEO is the head of major functional areas i.e state management, finance, technical, operation, HR and Admn. So Senior Executive Vice president who are the head of these units generally reports directly to the president. The main purpose of PTCL is to allowing them to achieve the desire goal. When designing the structure of organization, managers must know how to coordinate work activities and efforts both vertically and horizontally. Organizational structure of PTCL can describe the three components as the other organization have. These are: 1. Complexity 2. Formalization 3. Centralization 1.COMPLEXITY: The term complexity refers to the amount of differentiation in an organization. The more division of the work in labors of a organization, the more vertical levels in the hierarchy, and more geographically dispersed the organizations unit, the more difficult or complex is to coordinate people and their activities. When we analyze the complexity of PTCL,there is a big amount of employees about 70,000 and hierarchy is as under: PRESIDENT SEVP ENGINEER/AE/SDO/AO EVP GM/CE DIRECTOR ES/ASSITANT etc SE/MANAGER etc

This is a very large hierarchy which creates problems for the organization activities and coordination. The result is slow corrrespondence between management and officials at lower level. 2. FORMALIZATION: The degree on which a company relies on the rules and procedures to direct the behavior of the employees is formalization. The PTCL structure operates with standarised guidelines, rules and regulation. Each officer knows his/her responsibities of what to do. Due to these srtict regulation PTCL is more formalized. 3.CENTRALIZATION: In PTCL organization, decision making is highly centralized to upper level of management. Problems flow up to senior officers who decide what do to. In some cases decentralization is used and decision making is delegated to lower level of management.

FINANCE SYSTEM OF THE ORGANIZATION The office of the Director General (Finance) controls all financial activities and system of PTCL. All financing decisions, capital budgeting decisions and processing on real and financial assets are major responsibilities of finance department of PTCL. Necessary future plans and projects are analyzed and selected as per their positive results i.e; (Investment decision) installation of new telephone exchanges and lines. Lending and borrowing decisions are also made as per loans, interest rates, time period and lending agencies and banks etc. Necessary sanctions of writeoff and depreciation rate are also issued by the finance department. Finance department also plays a vital role in coordination, with dividend policy matters, internal and external auditors and share registrars. Pensions, insurance, preparation of budget and taxation dealings are also important factors of PTCL finance department.

DEFECIENCIES OF PTCL:
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 managment 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.

WEAKNESS OF FINANCE DEPARTMENT In Finance department a large number of employees have not sufficient knowledge of computer. So their performance can be increase by this training. Data can not update well in time, which creates problems for staff. The lower scale employees of the Financial Department are not giving any training of modern tolls used in finance technology. There exist no interlink between the Finance Offices. If these are connected then most of the problems will be solved automatically. Finance related units/offices are not interconnected. Finance related transactions are not fully computerized. Data is not fully updated. Persons working in finance department have not enough knowledge of computer applications. There exist a large number of employees who do not know the basic knowledge of computer. Finance related office is not fully computerized till yet. There does not exist a planned program for their training. The different offices do not use the same format in financial transactions. Latest financial techniques and modules are not uses in these departments. The most of the persons working in the finance department are irrelevant i.e. they belong to other cadres. Lack of coordination between different departments. Lack of database management in finance department. There doesn't exist planned program for the loaning policies of employees. DEFECIENCIES OF HR MANAGEMENT: PTCL is an overstaffed organization. The employees of PTCL lacks motivation. Staffing is not done by fair means. The action on the complaints of the customer is very delay. Wrong billing Complaint department is inefficient.

RECOMMENDATION FOR IMPROVEMENT: In every year PTCL starts new ventures and services in the country but on the other hand, the people of Azad Kashmir, and many other Rural Areas are still being neglected. There is a high potential market for value added services of PTCL in Azad Kashmir and Rural Areas. The company should start the internet, Pay-card Phone, and Mobile phone services in these areas in collaboration with private investors. There exist a huge amount of outstanding bills to be collected by the defaulters. The company should frame tight and effective policies to ensure the collection of its outstanding bills. The revenue officers should be provided incentives and bonuses on achieving the determined targets of revenue collection. Hundred percent computerization in PTCL would be helpful to save the time and money and provision of quick services to its valued customers. Human resource development is a key component in every organization; In PTCL this is not going well. So there is an immense need to improve this department. Over employment is main and major problem in PTCL. Reduction / Right Sizing in over employment can give better results. PTCL management should give more emphasis towards customer satisfaction, delight and retention. PTCL higher management should adopt a uniform policy for every region. Finally, PTCL revenue is decreasing due to arrival of market competitors in the country, so the management should adopt special careful steps to face this competition environment. After training, the employees should be on right position for which they are trained. Along with domestic trainers PTCL should hire trainers from other countries so that they will make the organization according to international standard. Immediate response to the customers. Improve complaint department. Staffing should be on the basis of merit and fair means. Promotion should be on the basis of performance, skills and responsibilities.

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