Compensation Management

&

Benefit

Class project

Submitted To: Sir. Abid Waseem

Group Members: Akbar Lakhani

55071

Fahad Sahghal 55540

M. Sufiyan Saba 54195

Khizar Khatri 55588

Sufyan Wazir 55380

EXECUTIVE SUMMARY

This project has been undertaken in order to highlight the Human Resource Practices of

“Ufone”. It’s all about YOU its all about “Ufone”, a company very highly spoken of

these days. A company paying more attention to its customer’s delights rather then the

customer’s satisfaction. Ufone is a company starting from scratch and has shown utmost

performance in the last seven years. Ufone owes its success to its employees believing

that providing employees with job satisfaction motivates them to work hard and provide

better results.

Company Introduction

Ufone PTML is a wholly owned subsidiary of PTCL established to operate cellular

telephony. The company commenced its operations, under the brand name of Ufone,

from Islamabad on January 29, 2001

During the year, as a consequence of PTCL’s privatization, 26% of its shares were

acquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the

management of Ufone has also been handed over to Etisalat. During the year July 2005 to

June 2006, Ufone continued on the path to success. The Company further expanded its

coverage and has added new cities and highways. Ufone has network coverage in more

than 3475 locations and across all major highways of the country.

Ufone currently caters for International Roaming to more than 200 live operators across

121 countries and introduced International roaming facility for Prepaid subscribers in

Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal, Thailand,

Cyprus, Bangladesh, Uzbekistan, Tunisia and Kuwait with lowest rates, featuring no

security deposit and activation charges. GPRS Roaming facility is available with more

than 100 Live Operators across 80 countries.

Mission Statement

To become the best cellular communication option available in the country for “u”.

Vision Statement

In order to evolve with our customers and to keep pace with your needs, we rejuvenated

and revamped our image by changing our visual identity. At Ufone we understand the

value of words and the need to communicate effectively and efficiently at all levels of

society, which is why our primary focus is on U, our valued customers bring strength to

our company.

With a fresher look than is accepted and appreciated across the board by people of all

ages, we aim to connect with you and provide you state of the art services. No matter

who you are, where you are, what you want to say, how you want to say it or how you

feel, you are our focus. Because at Ufone, it’s all about U,

Services line of Ufone There are two basic products of Ufone “Ufone Prepaid” and “Ufone Post pay”. Both of

these products are available at their franchise for public.

Prepaid

Post paid

COMPANY ANALYSES

Structure of Ufone

When a company wants to compete in innovation, it needs to maximize flexibility.

Flexibility is maximized by aggregating work into larger, holistic pieces that are executed

by teams of higher wages, high skilled workers. Giving the units their own support

systems and decision-making authority to take advantage of local opportunities in

regional or specialized product markets also enhances flexibility.

Corporation

Engineer- ing

Administ- ration &

Procurem

ent

CEO

Secretariat

Commerci

al

Customer

Care

Human

Resource

Finance IT

Access

Networkin

g Planning

Administr

ation

Corporate

Business

Analysis

Marketing

Customer

Care

(MNP

Human

Resource

T&D

Financial

Control

IT

Corporate

Core

Networkin

g Planning

Administr

ation

Procurem

ent

Internal

Audit

Commerci

al

Corporate

Quality

Assurance

& Retention

Human

Resource

Operation s

Finance

Corporate

Data ware

House &

Software Support

Corporate Engineeri

ng

General

Administr

ation

Governme

nt

Relations

Corporate

Sales

Customer Coordinati

on

Finance Legal &

Taxation

Enterprise

Solution

&

Security

Operation

BSS

Dealer

Sales

Customer Care

(Service

Centre)

Perman-

ent

Finance

Operation

Enterprise

Solution

&

Security

Operation

NSS Retail

Sales

Customer

Care

(Franchise

)

Outsour-

ced

Finance

Treasury

&

Planning

Mediation

& Client System

Site

Acquisitio

n

RGM

Support

Customer Care

(Corp

Services)

Finance

Accounts

Network

Operation

Sales &

Distributi

on

Customer

Care (Billing)

System

Administr

ation

Credit

Manage-

ment

Call

Centre

Customer

Care

Training

Keeping in view of all these factors the structure of Ufone is designed i.e. the overall

Structure of the Ufone is Divisional (More flexible and innovative). Mainly Ufone has

four regions and within those regions the structure is functional .The decision making

authority is centralized at the top but within the regions it is decentralized i.e. regional

heads have to inform top management before making any decision.

Departmental Division In order to give a jump-start to the company, a comprehensive initiation plan has been

made along with aggressive customer acquisition, care and retention strategies. Ufone has

the best integration of eight departments each project director.

Engineering

Administration

Business Analysis

Marketing & Sales

Customer Care

Human Resource

Finance

Information Technology

Human Resource Department at Ufone

UFONE considers their employees to be the asset of the company, so in order to retain

their employees following practices are followed in the company.

HR PRACTICES

Recruitment and selection

Orientation

Training and development

Compensation and Benefits

Performance Appraisal

WORK FORCE

HR at UFONE is divided into the following two major categories

Permanent Employees (1500-2000 Approximately)

Outsourced Employees (2000 Approximately)

Permanent employees

HR Permanent employees are further divided into following two categories.

Operation

Training and Development

Operational Department

It covers all the areas including hiring recruitment, selection and payroll etc. HR

operation team manages all the employee activities gathers all the information and make

use of it for further processes.

Training and Development HR team of training and development make a performance evaluation of all the

employees and the see where the gap occurs between the actual performance and the

desired performance. Then training is designed for area which needs to be improved. On

the job and off the job both the trainings are given according to the need of the employee.

Employee Benefit & Compensation

Training & Development

Employee Motivation

Retention of Employees

Career Planning/ Succession Planning

Employee Relations/ Communication

Employee Awards

Employee Events Management

Medical & Life Insurance

COMPENSATION AND BENEFITS

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

output.

Compensation The total returns which an employee gets against his or her work.

It maybe:

Employee Health Plans

Employee Insurance

Employee Leave

Employee Retirement Income Security Act

Executive Compensation

Maternity & Paternity Benefits

Pension & Retirement Plans

Wages & Salaries

Workplace Programs

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

UFONE focuses on providing a large number of the compensation and benefits to its

employees in a form of the following categories:

Minimum wage: The minimum salary for “Drivers” is Rs.7000 for “Tea Boys” it

is Rs.6500, for Administrative Staff like HR, Finance, Marketing, etc it is

Rs.20000 and for Engineering it is Rs.20000 to 25000.

Medical Allowance: 1 gross salary per year is given to each employee; half is

given in mid of the year and remaining half will be given at the end of the year.

Health Insurance: Like all other cellular companies Ufone also provides health

insurance policy to its employees.

Loan Insurance: At Ufone loan insurance policy is also provided to their

employees through banks.

Transport allowance: Rs 2500 are given to female employees only, if they travel

on local transport.

House Rent: 10% of the basic salary is given to each senior/ executive level

employee.

Overtime: All employees are entitle for the overtime more then 130 hours per

month .For overtime UFONE have specific formula that apply on the employees

gross salary, due to which every employee have different per hour overtime rate.

EOBI: EOBI is contributed as per the standard

Children Education allowance: 1 gross salary per year

Provident Fund: All permanent confirmed employees are eligible for

membership of Ufone Employee Provident Fund Scheme. An employee

contributes 8.33% of month basic salary in a year and an equivalent amount is

being contributed by the employer.

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

Travel Policy: Revised and categorized different levels such as the senior level,

the middle level and the junior level staff.

Meal deduction Claims: Meal books are to be maintained of each employee who

issues it, their name, employee number, designation, signature and number of

book and date at which it is issued has to be recorded. The reason for maintaining

the record is that the company pays 60% of the expense came over the food while

40% has to be deducted from the employee’s salary.

Expense Claim: The expense Claims are the expenses which an employee make

on the behalf of the company E.g. fuel used for business travel, overnight stays on

a business tour etc, such claim are made while returning back to the office , after

the whole process the HR pay them back the next month along with their salary.

Overtime Claim: If an employee has worked for more than the regular time, they

claim for the overtime amount other than their salary which they receive the next

month. Overtime claim have to be approved through HR department.

Medical Claim: Different medical facilities are provided to employees at

different level of hierarchy, so if any employees make use of this facility they can

claim for the amounts to be return next the month while submitting the hospital

receipt. Their medical clearness is done by the HR department.

Mobile deduction Claim: Such an expense claims which are made if an

employee has made long duration call for the official purpose and they have

exceeded the limit given to them then they can make a claim by attacking a copy

of mobile bill and if its valid then HR department approved it and pay the

employee their claimed amount along with their monthly salary of the following

month.

Dispatching of Salary Slips: Vendor prepares the salary slip and dispatch it to

the HR department, further HR head office send it to the regional HR departments

their concerned employees salary slip and they either give their employees

through cash or transfer to their accounts.

Job Analysis Job analysis is systematic exploration of activities within a job. It is a technical procedure

used to define the duties, responsibilities, and accountabilities of job. It is proved that job

analysis is almost first activity of HR department to be done. Because on this, pay

packages, compensations, job descriptions, job specifications, job evaluation etc are

made. So at Ufone experts do job analysis. They construct “Job Analysis form”.

Ufone Job Analysis

Following steps should be taken by the Ufone.

Step1: Obtain Documentary information such as procedure manuals and written

instruction.

Step 2: Ask about more general aspect such as the job purposes, the main activities.

Step 3: Ask the jobholders about the job.

Step 4: Observe the jobholders to see what they actually do.

Information Collected in Job Analysis

Work activities

Worker-oriented activities

Machines, tools, equipment, and work aids used

Job-related tangibles and intangibles

Work performance

Job content

Personal requirements for the job

Why Ufone conducts job analysis

The Ufone conducts the job analysis to get the right person for the right job at the right

time. If the Ufone does not conduct the job analysis then there will be a huge chance of

selecting the wrong person or to reject the right person who is suitable for the job.

Knowing Who Does What

Major duties or activities required

Conditions under which the job is performed

Job analysis procedure of the Ufone

There are mostly following procedure of the Ufone about analysis of a job:

Direct Observations

Interviews

How Ufone formulate job description and specification

In Ufone most of the announcements for jobs are being done through newspapers having

wide circulation in the country. Whenever Ufone offers any job it also describes the

responsibilities and duties with in a job to be performed. The HR people after analyzing

any job that has become vacant makes a job description defining clearly what the

jobholder will do and how it will be done. On the whole job description defines

characteristics of job, environmental conditions and responsibilities of the job.

The HR people define the job in such a way that it clearly describes the job and guides

new employees what to do etc. now they are moving towards E-Recruitment also to

ensure best candidates apply for the jobs and professional people are employed in the

Organization.

Job specification

Ufone also has well developed criteria for each job in term of the job specification. In all

the area of the jobs the pre- requisite for the job are defined for example:

Qualification required for a job

Skill required for a job

Experience required for a job

Job Description

Human Resource Division analyzes each job and its required outcomes. Job analysis is

done by analyzing the past experience and emerging trends.

Ufone holds documents about terms, duties responsibilities, and specifications about each

job. In job description Ufone define the following:

Duties of HR manager is to select, hire and train employees

Responsibilities are to update records and processing insuring claims

Task is to complete the job related activity

PERFORMANCE MANAGEMENT SYSTEM Objective of the Performance Management:

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

To look at Performance system as a means to an end

Setting an individual’s goal

Aligning goals across the company

Ensuring employees get coaching from managers

Determining merit pay

Identifying training and development needs

Providing data for promotion decision

Input from multiple source on worker performance

The Performance Appraisal Process:

The Performance appraisal system used by UFONE for reviewing the performance status

of its employee starts with identifying specific appraisal goals set by each Group for each

cadre. After this a detail job analysis is done with looking in account the job expectation

and then matching the actual performance with the desired performance. Afterward the

performance is appraised according to the set standards and this appraisal is not done by

the supervisor alone, their major focus is on taking into the account the employee’s

perspective as well. Therefore whenever the appraisal is done employee is fully

participative in the process.

Performance Appraisal Method Use by UFONE

UFONE is using 180-Degree Performance Appraisal Method. Within this method,

managers, peers, customers or colleagues are asked to complete questionnaire on the

employee being assessed. In UFONE, performance of an employee is appraises twice a

year. Once in June while other in December.

In the questionnaire there are five sections and in each section there are five questions

related to the performance of employee. There are total 100 points from which an

employee gets.

Rewards Related to Performance

There is also a reward related to performance of the employees. For “Customer

Facilitation Agents” there 50% pay is based on their performance which is assessing

every moth by their managers. For other employees like in administration, engineering,

finance, marketing, etc their performance is assessed after every six and they get

increased Rs.5000 in their salary as a reward. In each case employee have to show

consistent performance to win reward next time