Ufone

Human Resource Management

Submittal Date

: January 4, 2013

Submitted by: Zainab Amir Submitted to: Sir Salman Rehman

1|Page

Ufone

Contents
Background & History ....................................................................................................................................................3 Organizational Structure................................................................................................................................................4 Eight Major Operations .................................................................................................................................................6 Finance Department .............................................................................................................................................6 Information Technology Department ....................................................................................................................6 Customer Operations Department ........................................................................................................................6 Engineering Department .......................................................................................................................................6 Human Resource Department ...............................................................................................................................7 HRM System ..................................................................................................................................................................8 Staffing ......................................................................................................................................................................9 Human Resource Planning ......................................................................................................................................12 Recruitment and Selection ......................................................................................................................................13 Training and Development ......................................................................................................................................15 Performance Appraisal ............................................................................................................................................16 Compensation ..........................................................................................................................................................18 Competitors .................................................................................................................................................................21 Jazz ..........................................................................................................................................................................21 Telenor ....................................................................................................................................................................24 Warid .......................................................................................................................................................................25 Evolution of cellular industry .......................................................................................................................................26 Growth of Cellular Mobiles in Pakistan .......................................................................................................................26 Challenges to Industry .................................................................................................................................................27 Products/Services ........................................................................................................................................................27 Marketing operations ..................................................................................................................................................28 Marketing Mix of Ufone ..............................................................................................................................................29 Pricing ................................................................................................................................................................29 Placing ................................................................................................................................................................29 Promotion ...........................................................................................................................................................29 Product ...............................................................................................................................................................29 Exhibit-1 .......................................................................................................................................................................32 Bibliography .................................................................................................................................................................33

2|Page

Ufone

Background & History On January 29, 2001 a new cellular company with GSM technology came into the market and commenced its operations, under the brand name of Ufone. The government of Pakistan had granted Pak Telecom Mobile Ltd the license in 1996 to operate GSM 9000 all over Pakistan. Ufone established its position in the market by providing quality service at low rates. Ever since, it has steadily and rapidly expanded its coverage and customer base allover Pakistan. To begin with, the company only operated in major cities like Lahore, Karachi, Islamabad, Rawalpindi and on main national highways. Later on, the services were extended to other cities and towns thus, establishing Ufone as one of the top cellular service provider in Pakistan. In April 2006, Emirates Telecommunication Corporation, commonly (Etisalat), took over Pakistan Telecommunication Corporation Ltd, the owner of Ufone. Ufone focused on improving its quality by investing around $65 million to setup its modern technical infrastructure. At the same time Ufone introduced lower rates and different service products with names like Jazba etc to attract lower and middle class people.

Ufone managed to make mobile possible for almost everyone by keeping in mind the needs of every segment and fulfilling them by providing GPRS, SMS, MMS and other Info services that provide information about news, sports, religion, horoscope, stock exchange etc. Since day one, Ufone wanted to make mobile phone into an everyday commodity. This approach helped Ufone revolutionize the market, increasing its size considerably. This strategy helped Ufone exceed all of its expected goals. Though Ufone always focused on providing good quality rather than increasing the subscriber base, it still managed to acquire the third largest market share.

Mission Statement: To be the best cellular option for U

.

3|Page

Ufone

Ufones Key Operations

Ufone has increased its revenues and after-tax profits by 87% and 54% respectively since the last year due to its aggressive policies and exercising strict control over expenses. High quality of service is a benchmark of Ufone. To fulfill subscribers satisfaction and demand and above all to increase the value of investment for the shareholders and maintain competitive edge over the competitors, the companys operations must work like a well-oiled machine. The organizational operations can be illuminated by studying the nature of Ufones organizational structure and hierarchy.

Organizational Structure
When a company wants to compete on the platform of 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. Ufone has a decentralized organizational structure. In such structures the flow of information is simple and easy. A company with a decentralized structure is divided into different interconnected departments and every department has its head. In case of Ufone, there are 8 such departments that are proficiently operating, for the satisfaction of its customers demand and for the betterment of the company. The companys Board of directors is reported by CEO (Chief Executive Officer), who is supervising the 8 major operations of the company.

There are four BU (Business Unit), each Project Director is responsible for, for these eight divisions. BUs are divided geographically into four divisions 1. F BU North (Peshawar to Jhelum) Islamabad (Head Office) 2. F BU Central-1 (Gujranwala till Sialkot) 3. F BU Central-2 (Multan till Rahim Yar Khan) 4. F BUM South (Sindh and Balochistan)

4|Page

Ufone

5|Page

Ufone

Eight Major Operations

The 8 major operations are divided into departments that are:

Finance Department
The head of finance department is designated as CFO Chief Financial Officer or Vice president of financial head. There are further 4 sub-heads in Finance Department: CNC (Maintains the record of all postpaid subscribers) Budgeting and Planning Accounts Revenue Assurance

Marketing Department
The head of marketing department is designated as CMO- Chief Marketing Officer or Vice President of Marketing Head. It has further 3 subheads: Brands Marketing Strategy and Analysis VAS Value Added Services

Information Technology Department

The head of information technology is termed as CIO- Chief Information officers. This department has further 2 sub-heads: Billing IT Development

Customer Operations Department

This is a department for the handling of the existing customers. The head of this department is designated as VP COPs Vice president Customer Operations. It is further divided in to two sub-groups: Customer Care Govt. Relations

Engineering Department
This is the companys backbone. The head of the department is termed as CTO - Chief Technical Officers or Vice president. Divided into 3 sub-heads, BSS Business Support System NSS Network Switching Subsystem IN Intelligence Network

6|Page

Ufone

Sales Department
This department is headed by Vice president of Sales. The department is divided into 3 sub-heads. Corporate Sales Franchises & Retail Outlets Sales operations

Human Resource Department

This department works for the employees of the organization. Human Resource department executive is designated as Chief of Human Resource Department. UFONE considers their employees to be the asset of the company, so in order to retain their employees it manages an entire HRM system.

7|Page

Ufone

HRM System Components of a HRM System

Human Resource Planning

Career Development

Compensation & Benefits

Recruitment/ Decruitment

HRM

Performance Management

Selection

Orientation

Training/ Development

HR Functions Primary Functions: Staffing: Job analysis Human resource planning Recruitment & selection Training and Development Organization development Career development Performance Appraisals Compensation management Monetary Benefits Non-monetary Benefits Safety & Health

8|Page

Ufone

Secondary functions: Interaction of Human Resource Research & Development in HR Implementation of HR HR department at Ufone is very much involved in Analyzing, Managing, Evaluating and improving performance of employees Keep complete check on human capital to get the things done

Staffing
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 usually the first activity of HR department. Because of this, pay packages, compensations, job descriptions, job specifications, job evaluation etc are made. At Ufone experts do job analysis. They construct Job Analysis form. Ufone Job Analysis Following steps should be taken by the Ufone. Step 1 Step 2 Step 3 Step 4 Obtain Documentary information such as procedure manuals and written instruction. Ask about more general aspect such as the job purposes, the main activities. Ask the jobholders about the job. 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

9|Page

Ufone

Why Ufone conducts job analysis? Ufone conducts the job analysis to get the right person for the right job at the right time. If the Ufone does not carry out a careful analysis, there will be a huge chance of selecting the wrong person or to reject the right person who is suitable for the job. The major information revealed through analysis is: Knowing Who Does What Major duties or activities required Conditions under which the job is performed

Job analysis procedure of Ufone Direct Observations Interviews Questionnaires

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 describes the responsibilities and duties with in a job to be performed. The HR department, 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 to ensure best candidates apply for the jobs and professional people are employed in the organization. Job specification Ufone has well developed criteria for each job in term of the job specification. In all areas of the job 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

10 | P a g e

Ufone

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 of a HR manager, Ufone defines 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 activities.

11 | P a g e

Ufone

Human Resource Planning Actual Need Analysis Supply of Inside Candidates Supply of External Candidates At Ufone supply of inside candidates is preferred and Position Replacement Charts are maintained to find out right person for right job. Need Analysis At Ufone, human resource need is analyzed on the bases of following points: What type of person we need? How much organization can spend on that particular person for particular job? What type of job knowledge and skills are needed for a particular position? What kind of methods will be used for performing job analysis for a particular position? What level of employee we need (corporate, business or functional)?

Supply of Inside candidates Sources of Supply inside candidates: Promotion Rehiring Job posting Succession planning

Supply of External candidates Referral hiring Internet Advertisements HRIMS (HR Information Management System) Employments Agencies Out sourcing (Dencom) College Recruitment Head Hunters (For top level management)

12 | P a g e

Ufone

Recruitment and Selection Recruitment is the process of finding and attracting a capable pool of applicants. Qualified professionals from outside have been hired. Many benefits are provided but Employee Retention is quite low due to heavy Burdon of their job. Low flexibility in performance and thats why Ufone HR department is continually engage in recruitment & selection procedure.

Generating pool of candidates for recruitment 1. Internal Recruitment For the top and middle management, they prefer to promote someone from within the organization by analyzing their performance from their central data base. As internal recruitment fosters healthy competition among the employees, it motivates them to perform their assigned duties to achieve the organization goal. 2. External Recruitment To employ the enthusiastic and potential candidates from the labor market the HR department uses various techniques and tools to hire the applicants for the proposed job. They also discuss and take the ideas of the supervisors and managers of the relevant department when they are going to make the job description along with job specification. They are using the following methods of recruitment. Referrals: Ufone gains added advantage by advertising the job internally i.e. the current employees of Ufone can pass on the information to their relatives and friends. This is a valuable source of advertisement. Advertisement: The HR department hires the services of Interflow, an advertisement agency, to propagate their service and company for them. They also take the benefit of the web designer.

13 | P a g e

Ufone

Private employment agency: As the private employment agencies collect information about employed and unemployed people along with their skills and knowledge, they try to find right applicant for the proposed job.

Selection: Selection is the process of deciding whether to hire or not to hire an applicant. The HR management decides on the length of short list, which is of normally not more than five or six applicants at maximum. If they are short of time, they involve the supervisors and managers of the relevant department to utilize the span of time. Apart from time, they do this to take their point of view as well. They look for following things in the CV: Education Experience (related to work) Performance in the previous work Domain knowledge Abilities Does the applicant meet the requirement of the job? Is there any unexplained employment gaps? In the future will the applicant be an asset of the organization? The quality of presentation

Those who meet the requirements of job specification are called for the online evaluation test; those who pass the test are then called for the interviews. The date and time are given for the interviews. The interviews are designed in such a way that personality and ability of the applicant can be judged. After the interviews a panel screens the results in order to minimize the chances of error. Selection process: Screening applications Employment Test Employment Interview Job Offer Medical Test Reference checks

14 | P a g e

Ufone

Training and Development Orientation of the Employees Orientation involves providing the new employee with basic information about the company and making them feel welcome and comfortable in the organization. It involves: Visits to different departments of the company Introduction to Companys Policies, Rules and Regulations

Training Methods Two types of trainings are conducted at Ufone: On-the-job Training Off-the-job Training

On the job training: Basically there are two types of on the job training done in Ufone. One is when they hire new employee with the condition that they will not leave the organization for a specific period of time, which according to them has positive results. The second is done after the evolution of the employees. They assess and gave the training according to the needs of each employee. Off the job training: Off the job training is done for the senior management of organization. It may be in the form of workshops, seminars etc. Recently a workshop was held in Islamabad, the focus was to equip them with the latest knowledge in MS OFFICE.

15 | P a g e

Ufone

Performance Appraisal Ufone Philosophy: Impact is no longer about counting heads; its about making each Head count. Objective of the Performance Management: The basic objective for performance of Ufone employees circles around the following: To look at Performance system as a means to an end Setting an individuals 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 team. After this, a detailed job analysis is done while keeping in mind 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 employees perspective as well. Therefore whenever the appraisal is done, employee is fully participative in the process. Performance Appraisal Method Used by UFONE Ufone is using 360-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 appraised twice a year; in June and 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 an employee can get.

16 | P a g e

Ufone

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 month by their managers. For other employees like in administration, engineering, finance, marketing, etc their performance is assessed after every six months and they get an increase of Rs.5000 in their salary as a reward. In each case, employees have to show consistent performance to win reward next time.

17 | P a g e

Ufone

Compensation
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 Category 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 Category HR team of training and development make a performance evaluation of all the employees and then 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.

18 | P a g e

Ufone

HRM

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

19 | P a g e

Ufone

Strategic Pay Plans 1. Direct financial payments Salaries Incentives Commissions Bonuses Rewards

2. Indirect payments Medical allowances/ hospitalization Conveyance allowances Vacations Education allowances Pension Plans

Benefits And Services 1. Employees motivation Employees are motivated at Ufone by conducting events such as: Annual Employee Day Birthday Celebration

2. Flexible Benefits Program Cafeteria Gym TV lounge Sports club Exertion trip

3. Retirement Benefits Age of 55 60 years Provident fund Gratuity

20 | P a g e

Ufone

Competitors
Indirect competition: The indirect competition is from: Fixed line services. Card payphone services. Prepaid calling cards.

Massive expansion in penetration and quality of fixed line, payphone and prepaid calling cards can effect mobile business environment. Direct competition: Direct competition to Ufone service is from: Mobilink Warid Telenor Zong

In the beginning, Ufone did not face much competition in the market as there were no other competitors there in the market. Then in 1994 Mobilink Communications owned by the Orascom Telecom Egypt was founded in Pakistan and Ufone was their sole competitor. Mobilink operated in Pakistan with the name of "Jazz" and it exercised certain techniques to avert Ufone's customers to Jazz. Then as the Telecom industry developed in Pakistan, more and more companies poured into the telecom market. With the advancement in the telecom sector other cellular companies launched their products in the market. Right now Ufone has following competitors:

Jazz
Pakistan Mobile Communications Limited, better known as Mobilink GSM, is a telecommunication service provider in Pakistan. The company is Pakistan's leading cellular operator with a subscriber base of 31.5m and market share of 31% in October 2010. Mobilink started operations in 1994 as the first GSM cellular service in Pakistan Later on it was sold to Orascom Intl. of Egypt.

Strength
Market Leader (Market share) Largest Network Coverage Strong Brand (Jazz) High %age of high end customers

21 | P a g e

Ufone

Low network dependency on 3rd Party (own backhaul fibre & LDI) On net advantage Can charge price premium Strong media presence Financial muscle through strong top line Experienced & dynamic team

Weakness
Most exposed to loss of customers Weak customer care Billing issues & hidden charges Technical issues due to mix of old and new infrastructure and multiple vendors Slow process due to OT Internal bureaucracy Unsustainable Opex structure

Opportunities
Extensive rural market presence Geared for 3G (Substantial high end customer base) Presence in international financial market No hurdle in International borrowing Able to hire cream resources from market Use of MVNO to increase revenue New Revenue streams (Mobile advertisements/ mobile commerce etc.)

Threats
Industry reaching maturity Higher probability of churn in the industry Customer loyalty low in the industry as price war can hit more MNP major loser in industry

22 | P a g e

Ufone

Zong
China Mobile Company owns Zong. China Mobile is the world's largest telecom operator, having a customer base of over 300 million. Its network routes 700 million text messages every day and handles 250 million calls every hour. China Mobile Pakistan (CMPak) is a subsidiary of China Mobile. The pioneering overseas set up of China Mobile came through acquisition of a license from Millicom to operate a GSM network in Pakistan.

Strengths
China mobile financial strength Clear strategy to achieve market share Long term vision for profitability Decent brand China Influence on government

Weakness
Perception of china Cheap Lack of international management experience Time of entry 5th operator Issues with distribution structure Lack of On net volume

Opportunities
3G makes sense for business Use of MVNO to add to revenues stream Buy out of operator Insta Youth market

Threats
Unable to meet customer expectation Market reaching maturity Socio/economic indicator Industry can strongly react PTA regulations Team development

23 | P a g e

Ufone

Telenor
Telenor Pakistan is owned by the Telenor Group, an international provider Telenor is a Norway based company with its headquarters in Oslo. It started its operations in Pakistan in 2005. They provide services in 11 countries across Europe and Asia.

Strengths
Global Operator Aggressive rollout of network Brand consistency Strong retail network Employee loyalty (HR) Quick reaction to competitors 100% equity financed operation Long term vision for profitability Strong & effective marketing Strong vendors (Nokia Siemens) Maintaining substantial growth in revenue

Weakness
Top management Non-Pakistani Single Vendor High Capex&Opex cost ZTE equipment in northern area (untapped market)

Opportunities
Geared to Challenge No. 1 position Employer of Choice 3G part of their business case

Threats
Geo/socio/economic factors Religious elements opposition Irrational behavior of industry (Zong)

24 | P a g e

Ufone

Warid
Warid Telecom is a joint venture between Abu Dhabi Group & SingTel Group. Subsequent to this in July 2007, SingTel acquired 30% percent equity stake in Warid Telecom, Pakistan, for US$758 million. This partnership is part of a strategy to support Warid Telecoms continued growth and to enhance its market position.

Strengths
SingTel International partner Price perception Postpaid base Government links/influence Affinity partners (BAL) Owned Backbone Infra Ericsson Network infra limited presence of Hauwai

Weakness
Disorganized team High Bad debts Weak distribution structure Low brand image Current network footprint

Limited telecom experienced management Opportunities

Blackberry to attract high end market Synergies with group companies (BAL /Wateen / Wincom) Singtel buyout of major stake in company Brand revamping

Threats
Market reaching maturity Socio/economic indicator PTA regulations HR (FnF)

25 | P a g e

Ufone

Cellular Market Share

Ufone and Telenor are neck to neck for grabbing the 2nd spot of largest cellular network (as per subscriber base). According to the Market share as at 2009-10Ufone appears to be at the 3rd spot with 21.2% of the total market positioned close to Telenor at 2nd position with 22.1% of the market share with Mobilink at top with around 31% (Exhibit-1).

Evolution of cellular industry

As described earlier Ufone evolved as a pioneer in the Pakistan telecom industry. Since the beginning, Ufone has focused on the people of Pakistan especially youth, empowering them with the most relevant communication modes and services that enable them to do a lot more than just talk, at a price which is highly competitive. In the beginning as there was not much competition in the market plus the number of users were not that high so Ufone had to stick to an orthodox business model for a few years but after when they got more consumers they expanded their network by Total Subscribers Moblink Telenor Ufone Zong Warid 120.5 Million 36,073,988 30,162,943 23,829,009 17,801,032 12,646,458 investing more capital on the promotions and campaigns. With a strong and uniquely humorous communication direction that has now become Ufones signature across all advertising media, Ufone gives its customers many reasons to smile. As the world of telecommunications advances and matures specially in Pakistan, Ufone promises its customers to stay ahead, developing and evolving, to go beyond their expectations, because at Ufone, its all about U. Ufone since its inception has been targeting the

youth of Pakistan almost in all of their promotion campaigns and ads youth are shown texting, calling an using other Ufone features. This is because according to UNDP 63% of population of Pakistan are aged 15-25 (overall in rural and urban areas) and after so much advancement in the cellular industry the access of mobile to everyone has become more convenient.

Growth of Cellular Mobiles in Pakistan

26 | P a g e

Ufone

Challenges to Industry
Increased trend of social networking, telecom companies are coming up with special packages to enable the users to stay connected with the Internet which may acquire additional funds for the company. Within 7 years access to mobile phone has become more convenient due to which there is a huge load over the network which the companies have to handle for example routing restrictions, Traffic load, overall reliability and cost. Within a few years Mobile phone companies realized that they may have a growing market in the rural areas but extending the networks In the rural areas isnt as easy because the infrastructure is not that good and more work has to be done on the companies part on the awareness issue

Products/Services
Ufones brand has grown leaps and bounds and its continuous presence and unique humor has elevated its perception and equity drastically. The Brand has found its way into the hearts of the people and the message of Saaf Awaz, Fauri Raabta, Behtreen Network and Sastay Tareen SMS / Call Rates is now strongly associated with Ufone.

27 | P a g e

Ufone

Ufones service offerings: Short Messaging Service (SMS) & International SMS Caller Line Identification (CLI) Voice Mail GPRS enabled MMS, WAP & Internet Access Internet Access MMS Content Download

Product offerings: Ufone prepay which also include u-won, u-won + , public demand, Josh, Tension Free Ufone Postpaid

Some of the Terms & Conditions defined for this offering are as follows: It is not valid for calls made on Friend & Family numbers, free & short code numbers. Calls made using Voice Buckets (Value Added service) will not be eligible for this offer.

Marketing operations
Since its beginning Ufone has opted many different marketing strategies. Ufone has marked its strong position in the cellular industry in Pakistan in the past ten years employing different tactics for example in its early days Ufone had named itself as Awami connection (connection for the masses), then focusing on the youth focusing over their campus and social life using the tagline Everybody loves to Ufone prepay and then finally they rejuvenated and revamped their image by changing the visual identity Ufone tum hi toh ho! or Its All About U, by achieving a more fresher, vibrant look and aggressive media campaign, people at Ufone believe that over a last couple of years Ufone has reached the end of its growth stage which corresponds to the period in which Ufone has a rapid market acceptance and increasing profit

According to the facts and figures the market share of Ufone has been kept constant throughout the years despite of the increasing number of competitors there is not much deviation in the expected Ufone market share. Both Ufone and Telenor are having a tug of war for the 2nd position in the cellular industry with Mobilink on the top with 31%.

28 | P a g e

Ufone

Marketing Mix of Ufone Pricing

Since its beginning Ufone is trying to provide its users with call rates cheaper than the other service providers. Ufone offer call packages, SMS packages, International packages but as a matter of fact the pricing Ufone is offering is not unique and different from what other cellular connections are providing.

Placing
Right now Ufone is operating in 10,000 locations and across all major highways of Pakistan. Ufone currently caters for international roaming to more than 228 live operators in more than 160 countries. Moreover Ufone also offers Pakistans most extensive GPRS and Blackberry available with more than 200 operators across 122 countries.

Promotion
Ufones promotional and ad campaigns are categorized as one of the best in the market. To attract attention Ufone always uses novelty and contrast.

Product
Ufone tries to come up with better offerings, packaging. They tend to provide their users with superior quality, functionality, accessories and services. Ufones famous campaigns have been the following Ufone its all about you campaign Uth records

Compensation Responsibilities of Ufone HR Department Compensation Administration (designing and installing job evaluation program, pay structure, analyzing jobs and their dollar-worth, maintaining suitable records, wage and salary surveys of the labor market). Health and Safety (health programs, safety programs, Medical facility). Employee relations (wages, rates of pay, hours of work, conditions of employment, negotiation, contract interpretation and administration, grievance handling, allocation of overtime). Benefits and Services (insurance programs, Transportation facility, sick leave pay plans, loan funds, LFA salary, Yearly bonus programs along with special bonuses for achieving high targets).

29 | P a g e

Ufone

Employees Reaction to the system As mentioned above that Ufone follow the job based and competitive structure, so this thing is in the nature of human that to react against any system because by implementing structure everybody in the organization thinks that he or she is doing much and organization is not treating them well with the comparison of others. But at Ufone as observed most of the permanent employees are quite satisfied with this system as compared to the contractual employees. Their reaction towards the system is cooperative because of their appraisal system; the Ufone performance appraisal system is very effective after every six months everybody knows that what their score is.

Ufone is a performance oriented organization so they compensate their employees on the basis of their performance so everybody know that if they show the results then the organization will compensate them good if not then they will never expect, This is a good approach for performance oriented organizations to implement the system like this because of this system everybody interests involves in it. And the Ufone also adopted the Competitive approach for compensation, because of this system every employee know what the other organizations are paying for the same job and what they are getting is fair or not. Some are not satisfied because they think that they are seniors and the organization should compensate them for their seniority not for just the work done, (Loyalty factor including).

Principal fault lines and some suggestions for improvement While answering a question the manager of H.R expressed his thoughts that the employees who are hired by third party and working in organization on contractual basis, the manager answered we dont want them so we are not bound to compensate them equally in comparison with our permanent employees.

The organization size figures show there are more than 2000 employees that are on contractual basis which are more than the 55% of the overall size of the organization. And all those employees are not much satisfied because of these criteria and they are a big part of the organization, they are stressed with their job because they are getting only salary not benefits or any other compensation tools against their work. This shows that there is a lack of motivational factor among contractual employees and cause increase in turnover rate. These things increase the cost of new hiring and training of new employees. Another important point observed with the prospective of Human Resource practices was that in the organization the concept of relational return is not very satisfactory but this matters a lot in organizations like Ufone.

30 | P a g e

Ufone

Third setback is that they have some problems with their compensation procedures; the organization size is more than 4000 employees but they have only two executives who are working on carrying out compensation tasks. Ufone should focus on the contractual employees and motivate them by compensating fairly and through clear communication. They have to provide them the necessary benefits, bonuses and incentives according to their performance.

Ufone should start some career development programs to attract and retain most valuable employees, once if the employee feels that they have some career growth in the organization they are motivated and loyal to the organization.

HR Department must also forecast for long-term Human Resource needs. It is also found that no referral bonus was given to contractual employees who refer competent, skilled and knowledgeable candidate. The HR Department must convince the higher management to give such bonus which not only motivate the employees but the organization can in this way get competent, skilled and experienced worker which may participate in the success of the organization. Ufone HR Department must clearly communicate its promotion policy to all employees

31 | P a g e

Ufone

Exhibit-1

Market Share 2011-2012

13% 25% Warid Moblink Zong 30% 19% Ufone Telenor

13%

Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012

Ufone Users 801,160 2,579.103 7,487,005 14,014,044 18,100,440 20,004,707 19,161,118 23,829,009

Total Users 5,022,908 12,771,203 34,506,557 63,159,857 88,019,812 94,342,030 98,001,022 120,500,000

Market Share % 15.95% 20.19% 21.70% 22.19% 20.56% 21.20% 19.55% 19.78%

32 | P a g e

Ufone

Bibliography

UfoneGSM : Company Profile . 2011. UfoneGSM : Company Profile . [ONLINE] Available at: http://www.ufone.com/about.aspx. [Accessed 17 December 2011] Pakistan Telecommunication Authority . 2011. Pakistan Telecommunication Authority. [ONLINE] Available at: http://www.pta.gov.pk/. [Accessed 18 December 2012]. Engineering Pakistan- Telecom Engineering 2005, Sector Overview. 2011.Engineering PakistanTelecom Engineering 2005, Sector Overview. [ONLINE] Available at: http://www.engineeringpakistan.com/EMS/sectoroverview.php. [Accessed 20 December 2012]

Pakistan Telecommunications Industry Growth and Challenges | Teletimes International. 2011. Pakistan Telecommunications Industry Growth and Challenges | Teletimes International. [ONLINE]Availableat:http://teletimesinternational.com/articles/411/pakistantelecommunications-industry-growth-and-challenges. [Accessed 27 December 2012].

Welcome to PTCL. 2011. Welcome to PTCL. [ONLINE] Available at:http://www.ptcl.com.pk/pd_content.php?pd_id=48. [Accessed 26 December 2012].

33 | P a g e