ptcl internship report by m.siraj 2011
TRANSCRIPT
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CHAPTER NO. 01
INTRODUCTION OF PTCL
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
1. INTRODUCTION
11 years into a new century, the telecom sector of world finds itself at
crossroads after changing itself almost beyond recognition over the last 25 years.
Privatization and competition are the order of the day, with a majority of countries
having adopted these policies to advance their telecom sector.
The results have been impressive; the industry has grown at unprecedented pace.
Although here 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.
1.1 CENT RAL BACKGROUND
The telecommunications industry is at the forefront of the information
agedelivering voice, data, graphics and video at ever increasing speeds and in an
increasing number of ways. Whereas wire line telephone communication was once
the primary service of the industr y, wireless communication services and cable
and satellite program distr ibution make up an increasing shar e of the industry.
The largest sector of the telecommunications industry continues to be made up
of wired telecommunications carriers. Establishments in this sector mainly provide
telephone service via wires and cables that connect customers premises to
central offices maintained by telecomm ur inations companies. The central offices
contain switching equipment that routes 1 content to its final destination or to
another switching center that determines the most efficient route for the content to
take. While voice used to be the main type of data transmitted over the wires, wired
telecommunications service now includes the transmission of all types of graphic,
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video, and electronic data mainly over the Inter net.
These new services have been made possible through the use of digital technologies
that provide much more efficient use of the telecommunications networks. One major
technology breaks digital signals into packets dur ing tr ansmission. Networks of
computerized switching equipment, called packet switched networks, route the
packets. Packets may take separate paths to their destination and may share the paths
with packets from other users. At the estination, the packets are reassembled, and the
tr ansmission is complete. Because packet switching considers alternate routes, and
allows multiple transmissions to shar e the same route, it results in a more efficient
use of telecommunications capacity as packets are routed along less congested routes.
Wireless telecommunications carr iers, many of which are subsidiaries of the
wired car riers, transmit voice, graphics, data, and I nternet access through the
transmission of signals over networks of radio towers. The signal is transmitted
through an antenna into the wire line network. Other wireless ser vices include
beeper and paging services. Because wireless devices requir e no wire line
connection, they are popular with customers who need to communicate as they travel,
residents of areas with inadequate wire line service, and those who simply desire the
convenience of portable communications. Increasing numbers of consumers are
choosing to replace their home landlines with wireless phones.
Wireless telecommunications carriers are deploying several new technologies to allow
faster data transmission and better Internet access that should make them
competitive with wire line carriers. One technology is called third generation (3G)
wir eless access. With this technology, wireless carriers plan to sell music, videos, and
other exclusive content that can be downloaded and played on phones designed for 3G
technologies. Wireless carriers are developing the next generation of technologies
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that will surpass 3G with even faster data transmission. Another technology is
called fixed wireless service, which involves connecting the telephone and/or
Internet wiring system in a home or business to an antenna, instead of a
telephone line. The replacement of landlines with cellular service has become
increasingly common because advances in wireless systems have provided data
transmission speeds comparable to broadband landline systems.
1.2 COMPANY BACKGROUND
Pakistan has made steady pr ogress in expanding telecommunication networ ks
and services in recent years. In Pakistan this industr y had few big giants in the past
with PTCL being the sole provider of landline telephone service in the country.
At present the organizations principal activity is to provide telecommunication
services all over the country. It offers both domestic and international services
throughout Pakistan. PTCL also manufactures telecommunication related equipment.
Pakistan Telecommunication Company Limited had exclusive rights to provide
basic telecom services in Pakistan till the end of year 2002. With the announcement of
Deregulation Policy by the Government of Pakistan in 2003, PTA has issued licenses
for basic telephony to the private sector in Pakistan who will be competing PTCL, the
incumbent. From the humble beginnings of Posts & Telegraph Depar tment in 1947
and establishment of Pakistan Telephone & Telegr aph Department in 1962, to this
very day, ours is a story of commitment and vision.
PTC set sails for its voyage of glor y 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
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communication ser vices. Pursuing a progressive policy, the Government in 1991,
announced its plans to privatize PTC, and in 1994 issued six million voucher s
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 countr y. It also paved the way for the
establishment of an independent regulatory regime. The pr ovisions of the Or
dinance were lent permanence in October 1996 through Pakistan
Telecommunication (Reorganization) Act. The same year, Pakistan
Telecommunication Company Limited was for med and listed on all stock exchanges
of Pakistan Since then, PTCL has been working vigor ously 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 scenar io wherein
conver gence 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 subsidiar ies in 1998.
As telecommunication monopolies head towards an imminent end, services and
infrastructure provider s are set to face even bigger challenges. Pakistan also entered
post-monopoly era with deregulation of the sector in January 2003. On the
Government level, a comprehensive liberalization policy for telecom sector is in the
offing. PTCL is in full awareness of the same, and future policies feature a strong
conviction of healthy competition.
The company is in process of enhancing organizational and business proficiency
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through vertical integration and horizontal diversification. At the same time, cross-
national ownerships, operations and partnerships are being evaluated with a view to
developing and diver sifying the business.
1.2.1 VISION
To be the leading ICT ser vices provider in the r egion by achieving customers
satisfaction and maximizing shareholders value.
1.2.2 MISSION
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 gr owth in ear nings and profitability
1.2.3 CORE VALUES
Professional Integrity
Customer Satisfaction
Teamwork
Company Loyalty
1.3 DEREGULATION POLICY
Telecommunication de-regulation policy (Policy) has been prepared in line with
Governments objective to de-regulate and liberalize various sectors of the economy.
The Policy applies to opening up of the fixed-line telecommunication sector. The
exclusive rights of Pakistan Telecommunication Company Limited (PTCL) to
provide basic telephone services (local, long distance, international and leased line
services), which it enjoyed under The Pakistan Telecommunication (Re-
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Organization) Act 1996 (Telecom Act 1996), have expired since 31 December 2002.
1.4 RESTRUCTURING OF PTCL
The governments efforts to restructure and pr ivatize PTCL have been on-again off-
again since 1991. It had an offer in the late 1990s for 26 percent equity, reputedly
totaling $3 billion, but held out in negotiations and ultimately missed the unique
global market window at that time. Since then, it has had dif ficulty attracting
potential buyers. Investors have been concerned about political r isk, and appropriate
support from the government to transform the utility into a commer cially-or iented
corporation. With fortunes rising in the local telecom sector, the government hoped to
make privatization of the company a landmark deal for broader reform of the
economy. A successful deal would demonstrate the governments increasing
support for market capitalism and, it was hoped to, boost anemic levels of
direct foreign investment.
PTCL and the government were contemplating different strategic options for
restructuring. Plans were vetted for both a geographic and functional split of
operations. Analysts believed the most likely scenar io is a break- up into three new
companies, tracking with the firms largest business units: local, long distance and
mobile. This approach mirrors the policy environment fashioned for new competitive
entrants. Fr om the government perspective, breaking up PTCL prior to a sell-off will
help curtail the market power of any one single service provider, thereby stimulating
competition.
Unbundling the sale was also likely to increase revenues for the government. The risk,
of course, was that the mobile company, PTML (branded as Ufone) was
disproportionately more attractive than the other businesses. According to AKD
Securities, PTMLs contribution to PTCL's total revenues was expected to rise to
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12.5% over the next five years and was assumed to contribute 39% of PTCL overall
revenue growth. Future growth of mobile, both in ter ms of subscr ibers and net
revenues, was considered to almost certainly outstrip demand for fixed line services.
The target was to sell up to a 26 percent stake in PTCL; the government held 88
percent of shares. Some estimates placed the value of the trance at around $1 billion.
PTCLs net profit for the year ending June 2003 was 23 billion rupees ($400 million).
The new buyer would gain management control.
Splitting up PTCL could take at least two year s or longer, complicating hopes
for a quick disposal. Leading international investors that publicly stated their
interest in the sale include Singapore Telecommunications Ltd., Egypts Orascom
Telecom Holding, Saudi firm Oger and the Menara Telecom consortium. Unsolicited
offers were reportedly made the planning process a moving target. The eventual new
owner(s) greatest challenge was considered to be organizational. PTCL needed a
fundamental shake-up of its corporate culture, and a massive reduction in staff.
1.5 PRIVATIZATION OF PTCL
PTCL was sold to Etisalat at a loss of $394 million with the share pr ice reduced from
the original bid of $1.96 per share to $1.66, according to a report. The or iginal bid
offered in June 2005 by Etisalat priced PTCL at $ 2.599 billion while the revised bid
approved by the cabinet in March 2006 valued the company at $2.205 billion.
However, the government denied giving any concessions to Etisalat. Officials aid the
price of 26 percent PTCL shares remained the same i.e. $2.6 billion, and then any
lowering of bid price in the revised agreement approved by the cabinet in March. The
official documents state that the accumulated bidding price in the revised bid
came down to $2.205 billion against the original Etisalat bid of $2.599 billion, said a
report in the Gulf Today.
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The PTCL privatization agreement with Etisalat allegedly inflicted a further loss of
billions of rupees to the national exchequer besides unpr ecedented concessions
offered in the long ter m, in direct conflict with Article 30 of the Public Procurement
Rules 2004, it said. By far, the PTCL has been the highest profit earning state-owned
company with real-estate assets worth billions of rupees across the country including
commercial plazas, residential colonies and exchanges.
According to the gover nment documents, the Share Purchase Agr eement (SPA)
of the PTCL with Etisalat lapsed in September 2005 after the non-payment of the
dues by the winner bidders. After further negotiations with the Etisalat
management, the government agreed to offer additional concessions and
modifications to the transaction structure.
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CHAPTER NO. 02
OVERVIEW OF THE
ORGANIZATION
2) OVERVIEW OF THE ORGANIZATION
2.1 BRIEF HISTORY
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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 innovations sweeping through the globe. In Pakistan same anchor is Pakistan
Telecommunication Company Limited from the humble beginnings of posts
&Telegraph Department in 1947 and establishment of Pakistan Telephone &
Telegraph Department in 1962, to this very day, PTCL is a story of commitment and
vision. 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 Governments 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 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.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
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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 companys
mobile and Internet subsidiaries (U-fone & Paknet) in 1998.As telecommunication
monopolies head towards and imminent end, services and infrastructure providers are
set to face even bigger challenges. Pakistan also entered 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.
PTCL is in process of enhancing organizational and business Proficiency through
vertical integration and horizontal diversification. At the same time, cross-national
ownerships, operations and partnerships are being evaluated with a view to
developing and diversifying the business.
2.2 NATURE OF THE ORGANIZATION
Pakistan Telecommunication Company Limited (PTCL) was incorporated
in Pakistan on December 31, 1995 and is listed on
Karachi, Lahore and Islamabad stock exchanges. It was established to undertake the
telecommunication business firmly carried on by Pakistan Telecommunication
Corporation (PTC). The business was transferred to the company on January 1, 1996
under the Pakistan Telecommunication (Reorganization) Act, 1996 at which date
PTCL took over all the properties, rights, assets, obligations and liabilities of PTC
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except those transferred to National Telecommunication Corporation (NTC),
Frequency Allocation Board (FAB), Pakistan Telecommunication Authority (PTA)
and Pakistan Telecommunication Employees Trust (PTET). Pakistan
Telecommunication Company Limited (PTCL) is the main provider of
Telecommunication services in Pakistan. It owns and operates a substantial part of the
telecommunication facilities and provides domestic and international telephone
services and other communication facilities throughout Pakistan.
2.3 BUSINESS VOLUME
Fixed line connections in the country are more than 5.4 million and the cellular
connections are 12.7 millions currently there are 315 Payphone and over 51,000
Wireless Payphones There are over 140 Data and Internet service providers (ISP's) to
whom PTCL has provided network infrastructure. PTCL generated annual Revenue of
over Rs. 11 billion from its private sector operating partners.
The PTCL's performance against a key set of parameters is summarized as:
PARAMETERS VALUE
Revenue Rs. Billion 55.254
Profit After Tax Rs. Billion 8.4
Earnings Per Share Rs. 1.65
Capital Expenditure Rs. Billion 13.128
2.4 NO OF EMPLOYEES
President & Company Secretary 02
Senior Executive Vice President 07
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Executive Vice President 22
Chief Engineers 26
General Managers 94
AGM, DY. GM, Director, System Analysts, Dy. Managers, RTO,
CS, SE, DE, SAO, DM, SRO etc 2500
ADE, AE, SDO, AO, SL, Lect etc 20,000
ES, Assistant. PA, Tech, LM. UDC, KPO,Khakroob, Mali, HC, etc 47,000 (almost)
Total Employees
Note: This figure includes all permanents, contract bases and also
appointed under new terms and conditions during the year 2005.
70,000
(almost)
Source: Ptcl Annual Report 2009-10
2.5 SERVICES OF PTCL
Pakistan Telecommunication Company Limited not only Provides Conventional
telephone facilities, it al so offers optical fiber services to the private sector. We will
briefly discuss below the product lines being offered by the PTCL. Basically PTCL
divide their services into two parts.
2.5.1 Services for consumers
2.5.1 SERVICES FOR CONSUMERS
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.
a) New Telephone Connections
As mentioned earlier, PTCL is presently the only telecom company, who provided
fixed-line telephony in the country. So whenever, any Private business concern or any
individual needs a new telephone connection for provision of telephone service.
b) Value Added Services
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CLI (Callers Line Identification)
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
Check on obnoxious calls.
Complete Record of incoming / outgoing calls with time & date.
User Friendly
PREPAID CALLING CARDS
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.
Easily available throughout the country
Easy to use from any PTCL digital phone (Dial 1010)
Fast and easy, nationwide and international access
No line rent and no Phone bills
24 hours customer services through toll free number (0800-80800)
How to use it
Scratch off the security coating on the indicated strip to get your card Pin
Number.
Dial PTCLs toll free number 1010 from any digital phone.
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Dial 1 for Urdu & 2 for English Instructions; enter your card Number & Press
#.
For International Call Dial 00+CountryCode+CityCode+PhoneNumber+#.
E-BILL PAYMENT
Billing system is a part of customer services so providing connivance to its valuable
customers PTCL launched a new billing service which is available through PTCL
Calling Card This is another service from PTCL. This service is basically providing
billing solutions for the users.
How to use it
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
Customer can save his time by paying his bill on phone
Customer can pay his bill whenever he wants
DIGITAL FACILITIES
PTCL offers a variety of features to digital exchange customers like:-
Hotline
Abbreviated Dialing.
Call Waiting
Dont Disturb
Call Transfer on (a) Busy (b) No Reply (c) Immediate
Wake up call
Absent Subscriber
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Code Barring
Prepayment Telephony Services (PPT)
With the changing trends most telecoms are diversifying their services towards
Prepaid solutions .one of such modern era telecommunication service is Prepayment
Tel e 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:
Budget conscious subscriber
Subscriber avoiding bill-depositing hassles
People requiring casual connections (on short term bases)
Subscriber not meeting documentation requirement
Students living in hostel s
Defaulters
Features
Account number recharging
Outgoing call pin setting
Cancel out going call pin
Balance query
Follow on call
Low balance prompt
Balance shortage warning
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Call duration prompt
Call cost prompt
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
Insurance
Newspapers
Credit Card Companies
Airlines
Travel
Hotels
Courier Services
Shipping Lines
Utility Services
Fast Food Outlets
Trading Companies
Consumer
Stock Brokers
Voice Messaging Service (VMS)
With PTCL Messaging Service, you can have all for (or Desired) calls recorded when
you are absent, busy on phone or do not want to attend the calls for any reason. You
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can, later on at your convenience, retrieve all recorded messages from any telephone
anywhere in the country.
Security of message is ensured against eavesdropping through subscriber
controlled password.
PTCL VMS is designed for those who do not want to miss a call or Fax
because that can be beneficial.
Great for anyone owning a telephone or Fax, at home or business.
Much more powerful and flexible than answering machine due to Message
options available in your voice mail system.
Features
Call answer
Fax
Messaging
Notification
Capacity 10 messages
Free for user paying RS. 2000/- or more bill/month.
PTCL Messaging Plus
PTCL MESSAGING PLUS is designed for small and medium business enterprises
having problems with managing telephone message. PTCL MESSAGING PLUS
will definitely handle these problems for you. Advanced messaging features save
time, make you truly mobile and increase productivity. Essential for time-conscious
executives, frequent travelers and professional groups.
Features
Call answer
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Co- Location Centers
Pakistan Telecommunication Company has taken land mark decision to establish co
Location centers throughout the country.
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 centers communication can be located.
Benefits
Easy access to local & international connectivity
Qui ck deployment of services
Minimum capital investment and cost saving
Higher reliability and quality of service
Full connectivity under one roof
Just plug in and start business
Target market
IT companies
Telecom data companies
Universal Internet Number (UIN) 131
UIN 131 numbering scheme for internet services providers, represent exclusive code
to each ISP.
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 ISPs who are
licensed by PTA.
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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.
Once subscribed, the service means timeless communication for your
customers, allowing them to pay for a single call irrespective of its duration.
Target market
ISPs
Virtual Private Network (VPN)
Communication is the secret of success in todays highly competitive market. When it
comes to enabling your enterprise, your communication got to be instant, fast and
hassle free. The answer to thi s corporate need i s virtual private net work.
Service concept
It is an innovative and intelligent private network to integrate
business/enterpriseshaving sub-offices with in a city or nation wide. Without
necessity installation of dedicated resources, VPN enables organization to create a
private network.
Digital Cross Connect (DXX)
Telecommunication networks are the most important infrastructure elements of any
business today. As the businesses increasingly depend on it, quality of networks is
gaining strategic importance.
Service concept
PTCL offers flexible and reliable data services solutions through a high quality
platform of digital leased line network. PTCL digital cross connect (DXX) network
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provides the most dependable media for WAN connectivity with more than 200 nodes
country wide.
Features
End to end digital connectivity on digital cross connect network
Country wide as well as global coverage
Flexible bandwidth to suit the requirement
Better quality of services
Target market
Corporate customer
Software exporters
Data network operators
Airlines/travel agencies
ISPs
Financial institutes
Courier services
ISDN BRI/PRI
It is a near broadband experience suitable for household and small/medium sized
organizations.
Features
Faster and clear voice
Fax and data communication on a single phone
PRI provides thirty 64 kbps user channel plus two 16 kbps signaling channel
BRI provides two 64 kbps user channel plus one 16 kbps signaling channel
Cost effective
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SUBSIDIARIES AND COMPETITORS)
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
Multimedia & Broad Band (ISP Product) There is about 100 competitors of product
throughout the country to provide Internet service to the customers. However, some of
the major competitor ISPs of product are Cyber net, World online, Apollo, World
Call , and Comsats WOL etc.
U-fone (Cellular service provider) There are five competitors of U-fone in cellular
phone industry i .e. Mobilink, Instaphone and C.M Pak, Telenor, Waridtel .
PTCL Calling Cards (Product) Hello Cards, Call Point Cards, Call Mate Cards,
Global Telecom Cards.
Wireless Local Loop (V-Fone) Go CDMA, Wateen Telecom & World Call are the
Fixed Wireless Telephone competitors of V-PTCL.
BRIEF INTRODUCTION OF SUBSIDIARIES
U-FONE
Launched on January 29, 2001, Ufone is growing cellular operator in Pakistan. U-
fone 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.
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Current Situation of U-fone Ufone has started Sal es in all the major cities of
Pakistan which include Karachi, bad, 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 U-
fone coverage in many additional cities and highways.
Total User Base of U-fone
U-fone is currently enjoying 20.53% user of Pakistan mobile industry. It means U-
fone has 17,800,424 subscribers.
Main Features
Both postpai d and prepai d 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.
Multi Media & Broad Band (Phone n Net)
Formerly Paknet Limited a fully owned Subsidiary of Pakistan Telecommunication
Company Limited (PTCL) is now merged in PTCL as Multimedia & Broad Band
Region. It was formed in March 1999 and started commercial operation in January
2000. It is now the biggest Internet Service Provider of the Country. Besides Internet
this region also provides data communication services like Clear Channel data links,
Frame Relay and Digital Circuits on Optical fiber cross connect systems etc.
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
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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 i s introducing a new IPTV servi ce for its valued customers.
COMPETITOR OF PTCL
There is no meager competitor of PTCL in landline but with the growth of
telecommunication industry of Pakistan competition increasing specially in mobile
phone sector. In total there are more then 800 million subscribers of mobile phone.
There are 03 bi g players in mobile phone industry but 3 of them are the competitor of
PTCL:-
Mobilink
Telenor
Warid Tel
Other players in Land Line industry:
Operator NTC Brain Limited
World
Call
Union
Communication Naya Tel
Customers 103,059 7,376 11,347 3,500 13,500
MOBILINK
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Mobilink is a largest mobile phone company of Pakistan. Mobilink is currently
having more then 31,958,597 users base which is the 36% of total cellular
industry of Pakistan. Mobilink is basically competing Ufone which is subsidiaries
of PTCL.
TELENOR
Telenor is another cell phone company it have 17,841,074 subscribers which
is 20 % of total mobile industry.
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.
TELECARD 501,680 & WORL D CALL 468,335
CHAPTER NO. 03
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ORGANIZATION STRUCTURE
3) ORGANIZATION STRUCTURE
An Organizational Structure clarify the roles of personnel of an Organization and to
determine who has to do what task, which is responsible for what, objectives to be
achieved, who is to report to whom and to remove the obstacles for performance
caused by confusion and uncertainty of job assignment as well as to make easy
decision- making and communication networks reflecting and supporting organization
objectives.
The main purpose of PTCL is allowing them to effectively and efficiently accomplish
organizational goals and objectives. Designing an appropriate structure means that
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managers must decide how to coordinate work activities and efforts both vertically
and horizontally.
Organization structure of PTCL can be described as having three components like any
other organizations:
Complexity
Formalization
Centralization
COMPLEXITY
The term complexity refers to the amount of differentiation in an organization. The
more division of labor there is in an organization, the more vertical levels in the
hierarchy and more geographically dispersed the organization's units, the more
difficult (or complex) it is to coordinate people and their activities.
When we analysis the complexity of PTCL, there is big amount about 70,000
employees and hierarchy is as under:
PRESIDENT SEVP EVP GM/CE DIRECTORSE/MANAGER
etc ENGINEER/AE/SDO/AOES/ASSISTANT T.TECH/CABLE JOIN
TER LM/UDCNAIBQASID/FRASH etc.
This is a very large hierarchy, which creates problems for the organizational activities
and coordination's. The result is a slow correspondence between management and
officials at lower levels.The Etisalat (who control the charge of PTCL) is restructuring
the organization and the work is under process.
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FORMALIZATIONS
The degree to which an organization relies as rules and procedures to direct the
behavior of employees is formalization. The PTCL organization structure operates
with standardized guidelines, rules and regulations. Each officer/official knows
his/her responsibilities of what he has to do. Due to these strict rules and regulations
the PTCL organization's structure is more formalized.
CENTRALIZATION
The term centralization describes where the decision making authority is.
In PTCL, organization decision making is highly centralized at upper levels of
management. Problems flow up to senior executives, who decides what, should be
done.
In some cases, decentralized policy is used and decision making is delegated to lower
levels of management. Which is not correct and creates problems in the creation of
long term value aided strategies.
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3.1 MAIN OFFICES
The Head Office of Pakistan Telecommunication Company Limited is situated in
Sector G-8/4, Islamabad, which is headed by the President. Besides, it has Regional
Headquarters like:
Islamabad Telecom Region,
Rawalpindi Telecom Region,
Hazara Telecom Region Abottabad,
Northern Telecom Region-I Peshawar,
Lahore Telecom Region (South),
Lahore Telecom Region (North),
Multan Telecom Region,
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Faisalabad Telecom Region
Southern Telecom Region-I Hyderabad
Southern Telecom Region-II Karachi
Southern Telecom Region-V Sukkur
Western Telecom Region Quetta.
Switching network Central region Lahore.
These Regions provide Telecommunications services to the customers in their
respective areas. Apart from these, PTCL has an Optical Fibre Construction Region
Lahore and Optic Fiber System Islamabad, each headed by a General Manager to
install, operate and look after optic fiber systems/cables.
3.1.1 TYPES OF OFFICES
Chairman Corporate Headquarter, Block-E-, G-8/4, Islamabad
Director Commercial Accounts Nabha Road Lahore.
GM Offices in every Region.
SAO Offices.
Director Offices
Senior Engineer Offices.
Assistant Engineer/ AO Offices etc
3.2 COMMENTS ON ORGANIZATIONAL STRUCTURE
The head of Pakistan Telecommunication Company Limited is called President.
Then become the SEVPs (Senior Executive Vice Presidents), i.e. SEVP (Finance),
SEVP (Operations), SEVP (Technical), and SEVP (Human Resource Management),
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SEVP (Marketing & Business Development). Then there is a chain of Executive Vice
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. In non-gazetted staff there are Engineering Supervisors Operations
/Switching /Power plant /Optical Fiber system/M.W Media, Account Assistants,
Stenographers, Assistants, Key Punch Operators, Telecom Technicians, Upper
Division Clerks, Lower Division Clerks, Line Men, Wire Men, Drivers, Exchange
Cleaners, Naib Qasids and Peons etc. 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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CHAPTER NO. 04
STRUCTURE OF HR
DEPARTMENT
4. STRUCTURE OF HR DEPARTMENT
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Source: PTCL Annual Report 2009-10
4.1 STAFF ROLE OF THE HUMAN RESOURCE DEPARTMENT
The Human Resource department of the company operates in an auxiliary, advisory,
or facilitative relationship to other departments in the organization. Any staff unit,
whether it be personnel or otherwise, exists to help the line effectively. It has been
created in the first place to take advantage of specialized talent and knowledge.
The H.R department of the company generally performs the following operation:
Policy Initiation and formulation
Advice
Service
Control
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4.1.1 POLICY INITIATION AND FORMULATION
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 presi dent of the company, and it is up on the latters
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.
4.1.2 ADVICE
A major portion of the activities of those engaged in staff personnel work i s 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 rol e 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 conti nually be cognizant of their
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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 di rect 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.
4.1.3 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 i s a service function that
permeates all functional specialties within the personnel field.
4.1.4 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.
4.2 HUMAN RESOURCE DEPARTMENT OPERATIONS
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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 di recting the activities of the work force.
Variation from the pattern described may occur in parti cular 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 i s 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 employees supervisor bears important responsibilities for
introducing his/her to the new work environment. This i s often called orientation.
4.2.1 TRANSFER, PROMOTION, LAYOFF
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 studi ed
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
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complicated of combinations of jobs, departmental, and plant wi de seniority rights
must be observed. When a vacancy occurs in a position, it may be filled by promotion
from within or by di rect hiring from outsi de 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 i s chosen for the promotion is
largely made by the executive in whose unit the vacancy has occurred.
4.2.2 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.
More over the Human Resource Department al so 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.
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4.2.3 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.
4.2.4 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 thei r worth according to a formal
job evaluation plan, and maintaining suitable records i s 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 parti cularly always reserved for the chief executive officer of
the organization.
Following three types of compensation packages are being served to PTCL staff.
N.B.P.S (National Basic Pay Scale)
N.C.P.G (New Compensation Pay Grades)
N.T.C (New Terms and Conditions)
4.2.5 HEALTH AND SAFETY
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A significant part on occupational health programs is the identification and control of
agents within the working environment that can cause occupational diseases. Some
agents may be gases, dusts, fumes, toxic chemicals and metals, noise, heat, radiation,
biological substances and stress. Industrial hygienists are employed to identify and
control such hazards to health.
Other important elements of an employee health programs are pre-employment
medical examinations, periodi c examinations for those working on jobs having
exposure to occupational disease-causing agents, rendering of first ai d, treatment of
minor ailments such as col ds and headache, and providing health education
information. Small companies typically hire physicians, nurses and industrial
hygienists only on the consulting and part time basis. Large firms tend to be staffed
with full time personnels in these areas. The safety program is directed toward the
prevention of work injuries.
The main elements are engineering, education and enforcement. PTCL is offering
both its own medical facility setup & the private hospital s on its panel. The miner
health problems are dealt by PTCL own medical facility/staff & other in which patient
is to be admitted or operated are forwarded to the panel hospitals. PTCL also offers
reimbursement of expenses to the remote areas staff as they can not reach to PTCL
hospital in any emergency.
4.2.6 DISCIPLINE AND DISCHARGE
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
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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.
4.2.7 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.
4.2.8 BENEFITS AND SERVICES
Included under this category are pensions, group life insurance, hospital and medical
insurance, sickness leave pay plans, supplemental unemployment compensation, loan
funds, credit unions, social programs, recreational programs and college tuition
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refunds plans. 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
4.2.9 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.
4.2.10 TRANSFERING
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 al so 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.
4.2.11 EVALUATION
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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
4.2.12 EQUAL EMPLOYMENT OPPORTUNITY
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.
4.2.13 PERSONNEL INFORMATION SYSTEM
Today, many organizations have staffs of people trained in mathematical analysis,
computers, and management information systems. Some companies have applied
these capabilities to personnel work. Among the applications have been human
resources planning, skills inventories, employee benefits analysis, and productivity
studies.
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CHAPTER NO. 05
FUNCTIONS OF HUMAN
RESOURCE DEPARTMENT
5. FUNCTIONS OF HUMAN RESOURCE DEPARTMENT
5.1 HUMAN RESOURCE PLANNING
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Another new function that has emerged in recent years in human resource planning
(also called manpower planning). Sometimes a specific person or office has this as its
primary responsibility; more commonly the responsibilities are shared by several
people within the corporate personnel unit. Human resource planning is the process
by which is a firm insures that it has the right number of qualified persons available at
the proper times, programming jobs that are useful to the organization, and which
provide satisfaction for the individuals involved. The principal elements involved in
human resources planning are as follows:
1) Goals and plans of organization.
2) Current human resource situation including skills inventory.
3) Human resource forecast including comparison of projected future demand for
employees with projected supply.
4) Designing programs to implement the plans.
5) Audit and adjustment.
The PTCL has won repute in the field of land line & WLL services for the domestic
& commercial customers .It has been achieved only due to the proper and exact
functionality of the Human Resource Department .The Head of the Human Resources
Department is the SEVP and his team comprises of EVPs & General Managers of
different zones . The Human Resource Department may advice the administration and
the board of directors on special issues of the company and then it offers services in
order to accomplish the task. The human resources are the ultimate deciders provided
by the Human Resource Department. It not only gives advice, offers services but al so
control the policies of the administration.
5.2 RECRUITMENT & SELECTION
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Recruitment Fresh recruitment of professional are only being made in areas like.
Technical Human Resource (HR expert, HR Managers) Finance & Business
development & marketing Information technology (IT Professionals)
Recruitment Procedure
The recruitment procedure of PTCL is as follows: First position or vacancy is
a n n o un c e d i n t h e e l e c t r on i c m e d i a a n d p r i n t m e d ia . through Internet
and newspapers respectively. Then applications are scrutinized as per specification in
the job description and job specification.Candidates are being short-listed.The next
step is Test of short-listed candidates. The next step of the PTCL recruitment process
is the interview. They usuallyUse a structured and semi-structured interview for the
candidates. Last but not the least is the verification of the documents.
RECRUITMENT METHODS
There are basical ly 2 methods at PTCL frequently carried out when
desired, these: methods are as follows:
Internal Recruitment
External Recruitment
Internal Recruitment
In this method the candidates are recruited within the PTCL. It is a search mode in
which the PTCL check out the potential and right and desired person within the
PTCL. In order to get desired candidates they advertise within the organization.job
specification and job description by using Notice Boards.
External Recruitment
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In this method PTCL recruit externally from the outside environment. For this
method they use different modes to recruit the people. Few of the methods are as:
follows carried out in past as well as currently.Online Recruitment.Use of Print Media
(Newspapers).
Quota System
There is a percentage reserved by each quota differentiated on the basis of Genderand
Province.
Punjab 50%
Sindh 20%
N.W.F.P 17%
Baluchistan 10%
Women 5%
Handicapped 2%
Child Labor Nil
Modes of Recruitment
PTCL Advertise its vacant positions through different sources of media these are as
follows
Official Web Site
PTV
The NEWS
The JUNG
NAWA-A- WAQT
Google (Online application forms)
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Selection is the process of choosing from a pool of applicants the individual or
individuals who best fit the selection criteria for a given position.PTCL has
got very effective andefficient selection.
SELECTION CRITERIA
These are the following steps carried out by PTCL in order to meet selection
Recruitment (Advertising Job specification &Description)
Application (Online & Forms)
Screening of applications
Test
Interview
Final Decision Making
Joining Letter
Interview Methods
The interview method depends on the situation and conditions but there are 3
types interviews but two of them are and were in focus of PTCL while carrying out
Selection. These three methods are:
Structured Interviews
Unstructured Interviews
Stress Interview
But at PTCL there are only 2 types used which are
Structured Interviews are those which are preplanned and predefined in order to
check the skills, abilities, knowledge, behavior, and required potential of
thecandidates.
Unstructured Interviews are those which are not predefined and
preplanned but they are based on conditions and possibilities.
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Format of Job Description
Following is the format of Job description given by PTCL:
Purpose of the job Role and function
Dimensions of job
Annual operating budget of unit
Number of clients served
Number of directly reports
Indirectly reports.
Specific accountabilities of the Job
Job responsibility
Achievements
General accountabilities of the Job
Peripheral accountabilities of job
Performance standards
How is the performance of this job measured?
Standard constitute.
Job Components
Communication
Initiative
Challenges
Adaptability
Team work
Guide lines
Nature of supervision received
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Leadership
Responsibilities
5.3 TRAINING, ORIENTATION AND DEVELOPMENT SYSTEM
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:
Telecom staff College Hari Pur
Telecom Staff College Lahore Cantt
The regional level staffs training schools are also involved for extending training
facility to all the staff members of the organization, based at regional headquarter
level such kind of Regional Telecom Training schools are
R.T.T.S Lahore
R.T.T.S Multan
R.T.T.S Faisalabad
R.T.T.S Karachi
R.T.T.S Islamabad etc
The types of training being offered are:
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Initial training for the new staff generally 03-06 months as per designation at
T.S.C Lahore/ Hari Pur.
Refresher courses for existing employees.
Promotion training courses.
Special emergent technology trainings.
Sometimes PTCL also sings contracts with its suppliers/vendors for foreign
trainings.
5.4 PERFORMANCE APPRAISAL
To measure the performance there are few methods and standards
and benchmarks, which an organization have to follow, in the case of
PTCL too. Theirmain objectives are as follows: Improvement in Performance
Effectiveness, Efficiency, Productivity, Motivation Pay and Benefit Adjustments,
Training & Development Needs, Career Planning & Development with Personal and
Employee Development, Staffing (Recruitment & Selection), Response and Feedback
fromPerformance .
Appraisal Methods
There are many performance appraisal methods but in PTCL they use Rating
scalefor performance evaluation.
Rating Scale:
The rating scale method offers a high degree of structure for appraisals. Each
employee trait or characteristic is rated on a bipolar scale that usually has
several points ranging from "poor" to "excellent" (or some similar
arrangement).The traits assessed on these scales include employee
attributes such as cooperation, communications ability, initiative,
punctuality and technical (work skills) competence. The nature and scope of
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the traits selected for inclusion is limited only by the imagination of the
scale's designer, or by the organization's need to know.
5.6 COMPENSATION AND REWARD MANAGEMENT SYSTEM
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.
N.B.P.S (National Basic Pay Scale)
N.C.P.G (New Compensation Pay Grades)
N.T.C (New Terms and Conditions)
Pay Scales & Opportunities
At PTCL according to the information gathered by us is as follows:
PTCL employees have good salary as we compare to other
Government Organizations PTCL employees have less pay if we compare them with
other private sector. Employees compare at same designations and jobs. Minimum
pay at PTCL RS.6000 and above For 17th Grade and above RS.25000 and above
Rests of the benefits and compensations as well as allowances are as per government
rules
Compensation
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It is a system in which an employee is rewarded on the effective and efficient required
performance. PTCL has a very organized and effective compensation system
according to the rules and regulations of Government of Pakistan. They are offering
30% more pay then other Government Organizations. The rewards,
benefits, allowances that are offered by PTCL for its employees and workers as well
as officers are as follows:
Financial Rewards Pension 60% to 65% of basic pay
Disability Pension as per Government Rules
Death Benefits Funeral amount + 5-6 months pay
Loan Facility, Car & motorcycle loan,
Loan will be deducted from monthly salary Provident Fund 8.25% of salary + interest
of 15%
NON-Financial Rewards
Maintenance
Company provides maintenance of Employees car & motorcycle Pick & Drop,
Busses are used for this purpose Own flats for lower staff (1 - 15th grade) Colonies
and Full furnished houses for high rank officers and Top management (17th21st
Grade Officers).
Leave Policy
It is up to the mark of Government rules and regulations. Leave policy contains:
Holiday: 5days a week. Saturday, Sunday is off
Earned Leaves: 45 leaves per year
Casual Leaves: 20 leaves per year (with Pay)
Maternity Leaves: 120 days
Medical benefits
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PTCL also give medical benefits to its workers and employees. PTCL employees
have free medical treatment. In all over Pakistan there are 38 dispensaries which are
working and providing free treatments to PTCL employees. This benefit is also for the
family members of the PTCL employees, after retirement too. PTCL provide the
medical benefits to its former employees. Employees from grade 1 to 16 are entitled
for medical facility up to five years of the retirement. Employees in grade 17 and
above have lifetime entitlement for the facility.
5.7 LABOR RELATION
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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CHAPTER NO. 06
PRACTICAL EXPERIENCE
WITH PTCL DURING
INTERNSHIP
6. PRACTICAL EXPERIENCE WITH PTCL DURING
INTERNSHIP
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In the beginning they gave me a brief introduction of all the aspects related to
their field of business, different departments, their heirarchy, HR Practices. A
general overview of PTCL was given in other words.
After the orientation and introduction they breif us about all the HR plocies and
strategies and assigned us different assignments reagrading to different issues which
were currently highlighted related to PTCL employees.
Moreover, I learned how things work in a practical environment, challenges and
problems faced. The studied the recruitment and selection process were completely
and its importants things.
6.1 PROBLEMS IDENTIFIED
PTCL is a well organized company and operates efficiently in this competitive
environment so it was difficult for me to identify the problem. But nothing is perfect
in this world there is always a corner for improvement. According to my little
knowledge and experience following were the problems and challenges in PTCL that
can directly affect the efficiency and performance, in other words improvement need
be made in the following areas:
There is a lack of balance in incentives given to old and new employees. New
employees are paid more which de- motivates the old ones.
Lack of proper computer skills in old employees is another problem.
System problems do arise at times and customers have to wait for the
system to work properly.
Some employees misuse the resources of the company.
Employees were not very effective in communication among themselves. They
didnt share the exper ience with each other and didnt care about the
other employees. Some employees lacked the trust in management.
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Ineffective public dealing was another major pr oblem which I
experienced dur ing my internship.
Regularity and punctuality shows the character of big and good
executives. But this problem is also faced by the overconfident employees.
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CHAPTER NO. 07
PEST ANALYSIS
7. PEST ANALYSIS
7.1 POLITICAL FACTORS
The government plays an important role in the operation and manufacturing products
and Services in terms of regulations. Following are some of the factors
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Due to the unpredictable political and governmental changes rules and
regulation are changed quite frequently. Currently government has increased
the taxes in the telecommunication sector that will also a harder in the smooth
operation of telecom operation.
Before WTO implementation for deregulation of different sectors of the
economy. Pakistan government taken the step to regulate the telecom sector by
the authority of PTA. There are two types of Regulators held by PTA; the first
is called the Economy Wide Competition Regulator as the Monopoly Control
Authority. Also the political governmental rules cannot be completely
applicable in this sector due to the regulation authority of PTA.
Now a days Pakistani environment is instable due to political clashes among
political parties. Inside country war and drown attacks in north frontier areas.
This political instability has led to uncertain environment in the country,
which is a threat for any business including all the companies of the Pakistani
Telecom Sector.
Environment of telecom is investor friendly and have great potential to gain
profit. The mobile phone tele-density which had reached to 58.70 by the end
of February 2010. In Pakistan, the total number of subscribers which had
touched an all-time high figure of 96,231,229 in February 2010.
Due to huge budget deficit and low growth of economy government has
increased the taxes in telecom sector. Pre-paid customers were charged 10 per
cent withholding tax on every new load, which was deducted in advance. The
customers were also paying 15 per cent sales tax on every call. However, the
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18 present governments increased the sales tax from 15 per cent to 21 per cent
for mobile users by declaring the mobile phone a luxury item.
7.2 ECONOMICAL FACTORS
Economic conditions are influenced by political and government policy, being a
major influence affecting these can affect the telecom companys strategies.
Overall economic conditions are not very sound .The country risk of Pakistan goes to
3 which is a l a r m i n g situation for Pakistan. Telecom industry continued to
attract foreign direct investment (FDI) to expand the infrastructure and maintenance
of their networks. However the volume of FDI also continued to decline with the
maturity of market over the time. Foreign direct investment consists of the amount
remitted from abroad and the reinvestment of profits earned by the companies which
were supposed to be repatriated by the foreign firms. During the quarter ending
December 2009, telecom sector attracted US $ 142.7 million FDI which was 26.4% of
the total FDI in the country during this period while in previous quarter FDI in
telecom sector was reported US$ 39 million that was about 8% of the total FDI in the
country. During the last one year, sector has attracted about 37% of total FDI in
Pakistan which is a commendable.
7.2.1 Investment in telecom sector
In 2008-09 operators total US $1.6 billion worth of investment has been made
by all operators in Pakistan.
Pakistan provide profitable environment for investment for foreign investors
to invest in telecom sector of Pakistan.
Due to profitable environment, telecom sector attract US $815 million in
2008-09 which was a big investment during this financial crisis period.
7.2.2 Revenue and growth rate from telecom sector
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In last 6 months of 2009, telecom sector received over US $143 million.
Which was 18% of total Foreign Direct investment in Pakistan?
Telecom revenue showed 19.8% growth during 2008-09 but in 2007-08 it
showed 18.2%.
Cellular mobile sector continued to be the leader in telecom revenue, whose
share came out to be 64% in total revenue of telecom sector of Pakistan
Cellular mobile growth rate is 17% in 2008-09.
Government of Pakistan reduce GST/FED rate from 21% to 19.5%.
Telecom sector contribute to National exchequer112 billion in 2008-09 but in
2007-08 it was 111 billion.
Due to inflation the cost of doing business is also gone higher. Inflation
remains the biggest threat to the economy, jumping to 7.9% in 2006 to 23.3%
in first quartile of 2009. This increasing ratio will hurt the buying power of the
consumers that will overall reduce the demand for the products.
Pakistan has a growing upper class with relatively high per capita incomes. In
late2006, the Central Board of Revenue estimated that there were almost 2.8
million income-tax payers in the country with 45 % people are living on 2 $
per day.
The unemployment rate is going up and up with the increase of level of
poverty that is reducing the buying power of the people that is threat for
mobile brand.
Inflation is being controlled by state bank and under strict eyes but
unemployment rate is going up & up with the increase of level of poverty
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Economic instability is worsening day by day as liquidity crunch is prevailing
in the world.
7.3 SOCIAL FACTORS
The socio cultural environment summarizes demand and tastes, which vary with
fashion and disposable income, provide opportunities and threats to telecom
companies.
As Pakistan is an Islamic country and people are very strict in case of Islam
anything against the philosophy of Islam on either print or electronic media
are treated as against Pakistan. Most of the people dislike anything extra-
ordinary or 19 something which sabotage their culture or subculture. Pakistani
society is largely multilingual and multicultural.
The Pakistani people are more social and want to remain in contact with other
people. They celebrate lot of festivals like Jashn-e-Baharan, Eid Celebrations
and other cultural festivals. On these festivals they make calls to relative and
one of the key issues is sending SMS regarding the event. This will influence
the demand for the product.
Increasing globalization has amplified the influence of "Western culture" in
Pakistan. The life style of Pakistani people is changing rapidly. People are
more conscious about status pat most all people purchase multimedia mobile
phones. And also there is trend for Black berry sets by youth which will help
in enhancing their product and services.
The total population of Pakistan is approximately 169,248,500. The
population is increasing rapidly which increase the number of cellular usage
and help in projecting high profits.
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Most of the people dislike anything extra-ordinary or something which
sabotage their culture or subculture.