Role of Human Resource Management (HRM) in

Ufone, Pakistan
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A Research Project

By

Saoud Shahzad (Reg #316-FMS/MBAITM/F08)

Waqar Ahmed (Reg #318-FMS/MBAITM/F08)

IN SUPERVISION OF
Sir.Hasseb Sajjad

Faculty of Management Sciences

Department Of Technology Management
International Islamic University, Islamabad
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Year 2010

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 FINAL APPROVAL

It is certified that we have read this project report and fully evaluated the project undertaken by
Saoud Shahzad and Waqar Ahmed. This project meets the requirement o f the Department and
University.

PROJECT EVALUATION COMMITTEE

EXAMINER;

Mr. Nayer Kazmi

Head DTM
Faculty' of Management Sciences
International Islamic University, Islamabad

Supervisor:

Mr.Haseeb Sajjad
I^ecturer
Faculty' of Management Sciences
International Islamic University, Islamabad
 Acknowledgment

Everything that we have achieved, we did it by the grace o f Almighty Allah. We were introduced
by our parents so we them everything that we have or that we ever will have. Our Holy prophet
is the beacon of all guidance for our parents would have not been able to guide us through the
mundane life towards our real destination. We run short o f words whenever we think o f thanking
all our mentors, our teachers and our friends. We feci ourselves extremely lucky when we look at
this stage and find so many encouraging nods from so many beacons o f pour life.

Throughout our academic career, we have had cherish able tcachcrs without their constant
direction, we were simply nothing. They were all very supportive and encouraging. We take this
opportunity to thank our Supervisor Sir Haseeb Sajjad for their support, guidance and
encouragement. We have taken quite a lot of their precious time that we are grateful for. It is also
important to thank our university, HUI, for polishing our talent and giving us the skills we never
had before we stepped here.

We would like to appreciate and thanks to Umair Arif (HR Manager, UFONE) and Salman
Mahmood (HR Executive, UFONE). Mr.Rashid Khatak (Researcher) for their immense support
and contribution. They support was helpful and should be given full credit as a coauthor due to
their innovative ideas and help

Saoud Shahzad
316-FMS/MB A-1TM/F08

Waqar Ahmad
318-FMS/MBA-ITM/F08
 Table of Contents
Chapter 1 Introduction................................................................................................ 6
1.1 Introduction..................................’.............................................................. 7
1.1.1 Rational of study....... ................................................................... 7
1.1.2 Objective of study....................................................... ................. 7
1.1.3 M ethod............. ^............................................................................ 7
1.1.4 Sample and Procedure.................................................................. 7
1.1.5 Instruments and M easurement.................................................... 8
1.1.6 Scope and Limitations................................................................... 8
1.2 Industry Overview...................................................................................... 8
1.2.1 The cellular Network in Pakistan.............................................. 8
1.3 Organizational Overview........................................................................... 10
1.3.1 U-fbne............. ;............................................................................. 10
1.4. Human resource Management in U -fonc................................................ 14
1.4.1 Role of HR Department................................................................ 14
1.4.2 Functions of HR Department...................................................... 14
1.4.3 Assessing work and work outcomes......................................... 15
Chapter 2 Literature Review...................................................................................... 16
2.1 Literature review ....................................................................................... 17
2.1.1 Introduction....................................... ;........................................ 17
Chapter 3 Research M ethod....................................................................................... 22
3.1 Research M ethod....................................................................................... 23
3.1.1 Sample............................................................................................ 23
3.1.2 Research Design............................................................................ 23
3.1.3 Research M ethod........................................................................... 23
3.1.4 Source o fD a ta ............................................................................... 23
3.1.5 Primary Source............................................................................. 23
3.1.6 Secondary Source...................................................................... 23
3.1.7 Research Instrument..................................................................... 24
3.1.8 Procedure................................. ..................................................... 24
3.1.9 Tim ing................. .. . . . t ................................................................. 24
3.1.10 Check of the questionnaire answer sheet................................... 24
Chapter 4 Questionnaire Analysis............................................................................. . 25
4.1 Operationalization..................................................................................... 26
4.1.1 Questionnaire Analysis................................................................ 26
Chapter 5 Main Aspects of HRM in Ufone................................. ............................ 36
5.1 Main Aspects o f HRM in Ufone.............................................................. 37
5.1.1 Recruitment & selection............................................................... 38
5.1.2 Acquiring Human Resource........................................................ 38
5.1.3 Types o f Selection Methods........................................................ 42
5.1.4 Organization and Induction o f new^ recruits.............................. 43
5.1.5 Role of HR Recruitment............................................................... 45
5.1.6 Recruitments Source................................................................... 46
5.1.7 Recruitment Channel................................................................... 47
5.2 Training and Employee Development.................................................... 48
 5.2.1 Training..................................... ................................................... 48
5.2.2 Designing effective training systems........................................ 48
5.2.3 Selecting Training M ethods....................................................... 51
5.2.4 Evaluating Training Programs.................................................. 54
5.2.5 Developing H u m ^ Resources..............................................54
5.2.6 Approaches to employee D evelopm ent.................................. 54
5.3 Compensation............................................................................................ 56
5.3!1 Compensation Human Resource............................................... 57
5.3.2 Developing Pay Levels.............................................................. 57
5.3.3 Employees as a Resource........................................................... 58
5.4 . Career Development....................................•............................................ 59
5.4.1 Career Plarming........................................................................... 59
5.4.2 Career Development Issues....................................................... 59
Chapter 6 Problems Faced during HRM atUfone................................................. 63
6.1 Problems Faced during HRM at Ufone................................................... 64
6.1.1 No Assessment Centers.............................................................. 64
6.1.2 High Turnover R ate................................................................... 65
6.1.3 Succession Planning................................................... ^.............. 65
6.1.4 Who and When to Train................................................. ........... 65
Chapter 7 Conclusion and Recommendations............................. -.......................... 68
7.1 Recommendations...................................................................................... 69
7.1.1 Assessment Phase........................................................................ 70
7.1.2 Direction Phase............................... •.......................................... 72
7.1.3 Development Phase..................................................................... 72
7.2 Conclusion................................................................. .................................. 75
7.3 Appendix and References.......................................................................... 77
 Chapter #1
INTRODUCTION
 1 INTRODUCTION
Prior, to the mid sixties personnel departments in organizations were olten perccived as the
“heahh and happiness” crews. Their primary job activity involved planning company picnics,
scheduling vacations, enrolling workers for health care coverage, and planning recruitment
parties. That has certainly changed in the past four dccades.
Now state laws and corporate policies have placed many new requirements conccming hiring
and employment practices on employers: Jobs Have also changed and o f course global
competition has increased the need for out class performance from organizations. Perfonnance of
organizations is based on the work done by the employees without whom the assets of the
organizations will rot away. Now the most important asset o f any organization is the human
capital they possess. Proper management of this resource is the key to success o f organizations.

T.1,1 Problem Statement

I'he main purpose of the study is to analyze the strategic significance o f Human Resource
Management in Ufone. This study focuses on digging deep into the main aspects of HRM in
Ufone. I hc study will enable us to not only have insight into their practices but will also help us
to find solutions to the problems faced by the management with respcct to human resource
management. The study will provide solutions to the problems and suggest ways to improve the
current practices.

1.1.2 Objective Of The Study

Objective of this study is to know about the practices o f Ufone regarding their employees and
know how keep up with the intense competition in the industry. The study focuses on coming up
with the best possible solutions for the problematic areas in the organization.

1.1.3 Method
The study was carricd out through interviews and questionnaire analysis. The study is descriptive
and focuses on describing the practices of Ufone.

1.1.4 Sample And Procedure

I'hc sample was taken from the employees o f Ufone in the Islamabad office and around 45
respondents were given questionnaires and data was gathered from the executives by conducting
interviews with them. Both the questionnaires (for employees and interview o f executives) can

be referred in the annexure.

1.1.5 Instruments and Measurement

fhc questionnaires filled out by the employees were analyzed and responses were quantified in
percentage distribution.

1.1.6 Scope and limitations

The study was faced by certain limitations and those limitations included time constraints and
resources constraints which limited our research to only the Islamabad office o f the organization

1.2 INDUSTRY OVERVIEW

1.2.1 The Cellular Network In Pakistan
Since the inception o f Pakistan, basic telecom services were being provided by a monopolist,
previously called as Telephone and Telegraph department (T&T). The department was being run
by the Government and played multiple roles of regulator, policy maker and operator in the
country. The T& T department was later converted into a corporation. Although the corporation
was earning huge profits from the services, it was re-investing the same profits into the sector for
the provision of more telecom service but the investment was not enough. Further, with the
technological advancement, more and more telecom services were becoming available but there
was not enough money available with the corporation to install new telecom systems for the
provision of modem services. Resultantly, a digital divide prevailed in Pakistan and we remained
far behind our neighbors and other com parable' countries in terms o f telecom access
(uww'. telecompk.wordpress.com).
Cellular mobile services in Pakistan were commenced in 1990s when tw o'cellular mobile
telephone licenses were awarded to Pakteband Instaphone for provision o f cellular mobile
telephony in Pakistan.

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The cellular market in Pakistan has started showing modest signs o f recovery despite the
uncertainty that hovers around the overall economy at the start o f the new millennium. Alter nine
years of careful repositioning by the current operators, cellular phones have finally gained the
acceptability of masses as an alternative business tool. Instaphone’s successful venture into the
prepaid market has helped rid cell phones o f their ‘growth restricting’ bad image.
Meanwhile, Mobilink with its own creative bent and technological superiority has further
highlighted the value proposition o f office mobility By pioneering extra value-added services.
Paktel, on the contrary, has barely managed to remain afloat with an uninspiring performance
(www.pta.gov.pk).
In the start of the new millennium, a fourth cellular and second GSM operator; Ufone opens its
door for business. Because of increased competition, advertising and awareness, and new
customer offerings, mobile communications grew in all sectors; business, consumer and mass
markets. For the last four years, Mobilink and Ufone both were jockeying for position. I ’hc
prepaid and postpaid services o f both the operators totally changed the mind set of the masses
and crcated a need in everyone’s mind to avail the cellular services. Apart from them, Instaphone
started aggressive marketing in the year 2003-2004 and make a new trend o f involvement of
(
cellular companies in excessive advertising campaign. In the'same year, Paktel came up with its
new^ vision, new image and new technology to eliminate its stagnant and uninspiring image from
people’s mind.
The year 2003-2004 is considered as a historical year in the history o f telecommunication in
Pakistan. The telecom deregulation which started early this year in Pakistan has revolutionized
the whole industry. Significant landmarks are achieved and the local telecom scenario is
completely changed. Moving ahead in the deregulation process, the government issued licenses
to Iw'o companies Telenor (A Norway based Company) and Warid Telccom (An Abu-Dhabi
Group Company).
In March 2005, the launch o f the Telenor in the three main cities accompanied by an aggressive
print, electronic and outdoor advertising campaign disturbs the comfortable environment for
Mobilink and Ufone. Telenor brings with it new features in terms o f quality and pricing.
After two months, a new cellular player Warid Telecom entered the saturated ground of already
existing five cellular players. Warid Telecom launches its services in 28 cities in the first go
compared to the launch o f Telenor in only 3 cities along with much exciting features that others
don't have. The launch o f the company was not accompanied by much advertising. Within only
one and a half months of operations, Warid Telecom is' entering into its second phase of
expanding its coverage in more than 121 cities.
Currently there are six cellular players- in the market, five*with GSM and one with AMPS
technology. In the year 2004-2005, the growth in the telecom sector is significant.

13 ORGANIZATION OVERVIEW
1.3.1U-FONE
Iji 1990, Pakistan was introduced to the world o f mobile telephone. Realizing the unquestionable
advantage provided by mobile telephones to both the individual and the economy, the
Government of Pakistan granted U-fone, Pak telecom Mobile limited the license to operate a
GSM 9000 cellular service all over Pakistan. In a very short time span, U-fone has succeeded in
setting up both a technical and service infrastructure required to provide world-class service
quality to its subscribers.
Ufone launched on January 29, 2001, as a new cellular operator in Pakistan. Pak Telecom mobile
Ltd. offers Ufone services to you, which a 100% is owned independent subsidiary o f Pakistan
1’elccommunications Corporation Ltd (www.ptcl.com.pk). ^
U-fone is an independent organization having 50% share owned by P'FCL against its equity and
50% investment is borrowed loan from banks. There is a miss conception about the organization
ownership that it is completely owned by the government but it is not true. It operates
independently with some shares advanced to PTCL and loan taken from Nortel.
When PTCL was acquired by Etisalat then being part o f PTCL, the management of Ufone has
also been handed over to Etisalat. During the year July 2005 to June 2006, Ufone continued on
the path to success. The Company further expanded its coverage and has added new cities and
highways. Ufone has network coverage in more than 750 cities, towns and across all major
highways of the country.
During the year Ufone successfully completed the network .expansion o f Phase IV in existing as
well as in new cities and towns, which amounted to more than US Dollar 170 million. As a result
the asset base of the Company has increased from Rs. 20 billion to 27 billion (www.ufone.com).
During the year Ufone adopted the policy o f simplified tariffs with no hidden charges, which
I
resuhed in positive impacts on the usage Irends o f subscribers as well as total subscriber base,

10
 ■-S-' -

which has increased from 2,579 k in June 2005 to 7,487 k in June 2006. Ufonc currently caters
for International Roaming to more than 195 live operators across 119 countries and introduced
International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United
Arab Rmirates, Singapore, Portugal and Kuwait with lowest rates, featuring no security deposit
and activation charges. GPRS Roaming facility is available with more than 75 Live Operators
across 59 countries.
rhe company has also been awarded a new License for providing cellular services in Azad
Jammu & Kashmir and Northern Areas. During the year, as a consequence of P'fC L's
privatization, 26% of its shares were acquired by Emirates.
Ufone’s television commercials have received a lot o f appreciation from both the valued
customers and advertising industry professionals in Pakistan. Ufone, with Pakistan's largest
advertising company Interflow Communications Private Limited, has aiw-ays tried to deliver
truthful and interesting advertising'to its viewers (Economic Survey o f Pakistan 2006-2007).
Ufonc first introduce the Nortel wireless network build in Pakistan, they are committed to
Pakistan and see tremendous opportunities for growth, and both in delivery o f high-quality voice
communications and, down the line, high-speed Wireless Internet and Optical Internet sem ccs.
The deployment of a high-performance GSM wireless network in Pakistan provides the country
with technology, which is competitive globally.

Ufone's GSM 900 network offers such IN (Intelligent Network) services as voice mail, short
messaging and prepaid calling, as well as advanced billing, customer care and transmission
services. The expansion contract includes a General Packet Radio Services (GPRS) solution,
which will enable Ufone to offer consumers wireless Internet access, e-commercc, virtual private
networking, and other value-added mobile rriultimedia services.
An investment o f 60 million dollar has been made in setting up the technical infrastructure that
will link Pakistan via crystal clear voice and fest data transmission capabilities. Ufone's
operational performance has been very encouraging. Despite the stiff competition in Pakistan
telccom market which has led to reduction o f prices to bare minimum level, due to its aggressive
policies and exercising strict control over expenses the Company managed to improve its
revenue and after-tax profit by 87% and 54% respectively.

/
11
Ufone started its services to 15 major cities o f Pakistan but now days Ufone is available to all
major cities and highways in Pakistan. With the expansion paced with this fast, Ufone will very
soon provide its services in all over the Pakistan.
Ufone has packages for all types of customers from executives' up to students. As far as data
capability is concerned, Ufone provides the SMS services at extremely reasonable rates. The
Ufone subscribers will be able to now only communicate via voice is also be able to send and
reccivc text messages and emails anywhere any time. With Ufone info services, customers
receive a huge range of information right when they require it. Suppose when the customer need
to know the weather or want update on the cricket score, just ask for it via mobile and it will
update them immediately. Ufone is committed to providing something for every one. Other
services including Virtual Private Network, Call Management, Missed Call Notification.
Phonebook Saver and a host of Infotainment and Entertainment services right on cell phone.
Backup all customers’ contacts with Ufone's Phonebook Saver and retrieve any lost information
directly from their server. Book, Calendar & Planner, POP3 Alerts, Email Address as well as
Infotainment Services that let them subscribe to daily horoscope, quotes, jokes, and much more.
The customers can create account on their website and get access to a host o f personalized online
services like Address Along with all these services, Ufone also offers GPRS, MMS and WAP
access to enhance mobile internet experience. . This network is also expected to provide a
scalable platform for future deployment o f high-performance Wireless Internet services in
Pakistan (www.ufone.com).
Keeping in view the growth potential o f the cellular industry there is no option but to be
aggressive in order to remain a potent force in the cellular industry. In order to extend cellular
network to new cities, towns and highways and enhance its current installed capacities in
existing cities, Ufone has fmalized a huge network expansion contract amounting to about USD
550 million, which will enhance the subscribers' capacity by 10 million.
A strong focus will be on maintaining high quality o f service, which is always a benclimark of
Ufone. increasing usage and exploring new revenue streams on value added services, market
visibility through various market initiatives to fulfill subscribers' satisfaction and demand and
above all to increase the value of investment for the shareholders. With fastest expanding
coverage, unmatched product leadership, and consistent focus on customers, Ufone has emerged
to be the most prominent player in the nriarket in the short span o f its operation

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Goals
IJfone has following corporate goals:
• Earn profit without compromising on the company’s mission.
• Maintain the quality of the business.
• Keep the product innovative with the help of research and development.

• Product development through market research.

V

• Keep the company image high.

• Keep in touch with the market through surveys and reach.
Integrity
• Walk and talk.
• Transparency.
• Resist Politics.

Sense O f Urgency
. • Strive For speed and simplicity in everything we do.
• Fight bureaucracy.
• Focus on delivery. ^
Em pow erm ent
• A corollary of respect for people achieve through powerful mission and transparent
proccss.
• Encourage and reward self-confidence and initiative.
Coverage
• Invite open and challenging discussion upfront.
• Face the reality, make timely difficult decisions and follow them.
• Set demanding targets and standard for others and ourselves.
NetAvorking
• Reach beyond the boundaries to share information and ideas.
• Promote collaboration and break down silos.
• Positive networking requires courage and integrity.
Creativity

1
 • Think out of the box.
f
• Seek out best practices extend to all areas of work.

1.4 HUMAN RESOURCE MANAGEMENT AT UFONE

1.4.1 Role O f HR Department
• Policy initiation and formulation
• Advice (on personnel policy, labor agreement, needs and welfare o f company and
employees)
• Service (employment, training, benefits functions,recruiting, interviewing, testing job
applicants, maintenance of adequate employee records etc.)
• Control (monitoring performance and conformance o f other departments to personnel
policy, procedures and practices)
i

1.4.2 Functions Of HR Department

• Employment (recruitment, selection and induction into the organization)
• 1 ransfer, Promotion, Layoff (checking conformity of^skills with new department in case
of transfer)
• Training and Development (coaching, performance appraisal, post appraisal counseling/
job rotation, understudies, special broadening assignments, feedback)
• Compensation Administration (designing and installing job evaluation program, pay
structure, analyzing jobs and their dollar-worth, maintaining suitable records, wage and
salary surveys o f the labor market)
- • Health and Safety (health programs, safety programs)
• Discipline and Discharge (Discipline = training that mould or corrccts, punishment of
wrongdoers. Training people to abide by rules o f behavior and punishing those who
don't, formulating list of rules and penalties for each offence, approval for discharge)
• Labor relations (wages, rates^ of pay, hours o f work, conditions o f employment,
negotiation, contract interpretation and administration, grievance handling, allocation of
overtime)

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 • Benefits and Services (pensions, insurance programs, sick leave pay plans, loan Junds.
social programs, recreational programs)
• Organization Planning (developing concept o f company as a structure or system)
• Organization Development (increase level o f trust and supportiveness among people in
the organization, enhance , interpersonal skills^ make communication more open and
direct, directly confront problems, tap the knowledge o f all who can contribute to
problem solutions wherever they may in the organization)
• Muman Resource Planning (right number o f qualified persons available at the proper
'X

times, performing jobs that are useful to the organization and which provide satisfaction
for the individuals involved, goals and plans o f organization, current human resource
situation including skills inventory, human resource forecast including comparison of
projected future demand for employees with projected supply, designing programs to
implement the plans of recruitment, selection, performance appraisal, transfer, promotion,
training, motivation, compensation, audit and adjustment)
• Equal Employment Opportunity (no discrimination in terms o f gender, race, age, national
origin, religion. Involves complaint investigation, interpretation and policy, monitoring
performance)
• Personnel and Behavioral Research (improving worker productivity and also increasing
the quality o f working life, employee attitudes and motivation, predicting success in
management and organizational relationships)
• Personnel Information Systems (HR planning, skills inventories, employee benelits
analysis and productivity studies)
r
1.4.3 Assessing Work And Work Outcomes
Work is designed to maximize productivity. The quantity and quality\)f services, behaviors and
products that employees are providing are also identified, fhis area o f the Ufone HR
management deals with:
• Designing work to maximize employees' innovation, creativity, product quality and
customer service
• Determining employees' productivity and quality o f their work
' • Measuring employees’ attitudes about the work and work environment

15
 Chapter#02

LITERATURE REVIEW

16
2.1 LITERATURE REVIEW

2.1.1 Introduction
An excellent workforce determines the competitiveness o f business firms and overall success. A
firm’s workforce can constitute the differentiating factor that sets a firm apart from its
competitors or the workforce can contribute to the cost advantage o f firms in a highly
competitive industry. (Porter 1998) The literature review covers various theories and empirical
data revolving around hiring, retention and staff investment strategies to achieve targeted
fmancial and non-fmancial returns. The literature review takes a deductive approach by starting
with the general principles and moving on to specific concepts.

I
Developments in the field of HRM are now well documented in the management literature (see
e.g. Boxall. 1992; I.egge, 1995; Schuler and Jackson, 2007; Sisson and Storey, 2000; Torrington
ct al., 2005). The roots o f HRM go back as far as the 1950s, when writers like Drucker and
McGregor stressed the need for visionary goal-directed leadership and management of business
integration (Armstrong, 1987). This was succeeded by the ‘behavioral sciencc movement' In the
1960s, headed by Maslow, Argyris and Herzberg. fhese scholars emphasized the ‘value’ aspect
o f human resources (HR) in organizations and argued for a better quality o f working life for
workers. This formed the basis of the ‘organizational development movement' initiated by
Bennis in the 1970s. The ‘human resource accounting’ (HRA) theory developed by Flamholtz
(1974) was an outcome o f these sequential developments in the field o f HRM and is considered
to be the origin of HRM as a defined school of thought. HRA emphasized human resources as
assets for any organization. This ‘asset’ view began to. gain support in the 1980s (llendry and
Pettigrew, 1990). The last tw^enty-five years or so have then witnessed rapid developments in the
field of HRM, which are an outcome of a number o f factors such as growing competition
(mainly to US/UK firms by Japanese firms),

Human resources (HR) are the backbone o f an organization (Gerhart & Milkovich 1990, Pfeffcr
1998). Moreover, the continuing prosperity o f a firm is likely to be enhanced by employees who
hold attitudes, value and expectations that are closely aligned with the corporate vision (Borman
& Motwidlo 1993, Spector 1997, Cable & Parsons 2001, Feldman 2003). Clearly, hiring capable

17
people is an attractive point of departure in the process, but building and sustaining a committed
workforce is more likely to be facilitated by the employment o f sophisticated human resource
management (HRM) infrastructures (Schuler & Jackson 1987, Beechler, Bird & Raghuram
1993).
Human resource management (HRM) encompasses hiring and retention (Bratton & Gold 2000),
as aspects of investments in the right staff. Literature provides different perspectives o f human
resource management. On one hand, Bratton and Gold (2000) define HRM as the process of
developing knowledge and practices on the nature and requirements o f tasks and regulation of
employment relations. Boyd (2003) also considers HRM as encompassing the aggregate o f
work-based processes such as work environment, terms of employment, and representation. On
the other hand, Mathis and Jackson (2006) is an approach o f achieving firm goals by developing,
directing and utilizing human resource knowledge, skills and talents botii effectively and
efficiently. The latter definition considers hiring, retaining and investing as areas of strategy
development so that this coincides with the concept o f strategic human resource management,
which involves the management of human resources in line with tlrm goals (Armstrong & Baron
2002). It is the latter definition of human resource management and the concept o f strategic
human resource management that provides theoretical support to the study.

Literature provides requisites to the implementation o f effective hiring, retention and staff
investment strategies covering two perspectives, which are organizational and employee
perspectives. In terms of the organizational perspective, organizational culture emerged as the
factor that the firm needs to focus on to support strategy formulation governing hiring, retention
and staff investment. Katz and Khan (1996) define organizational culture as the shared ideas,
norms, rules, values, processe"s and systems^that unify a group o f people. Organizational culture
defines the working environment, work relations, and work completion processes (Cabrera &
Bonache 1999). Literature point to the importance o f building a strong organizational culture but
the organizational culture should match the business context o f the firm. With regard to the
employee perspective, motivation and job satisfaction have been widely discussed as directly
linked to hiring, retention and staff investment. Luthans (1998) define motivation as the process
of meeting need deficiencies that affect the work behavior o f employees. As such, Sonnenbcrg
(1991) explained that motivating employees considers needs, drivers, and incentives. Meyer and

18
Allen (1997) add that motivation is the psychological state o f workers towards their jobs, co­
workers, working environment, and the firm. Lulhans (1998) explain job satisfaction as made up
of the three dimensions, which are emotional reaction to the work situation, the extent of
expectation matching, and attitudes as response to motivation activities by the firm. However,
literature differs on the manner o f ensuring motivated and satisfied employees to secure and
retain excellent employees. Heneman (1992) explains that rewards comprise the most common
motivation and satisfaction determinant of employees but reward systems do not necessarily
ensure motivation. As such, other studies looked into other factors such as a good working
environment (Schermerhorn 2001) or extrinsic (Wiley 1997) and intrinsic rewards (Quigley &
Tymon 2006) linked to fair and uniform performance measures (De Waal 2007). Since many
factors motivate and satisfy employees, the intrinsic and extrinsic or intangible and tangible,
taken together, comprise the determinants of. motivation and job satisfaction that affect hiring,
retention and staff investment.

Literature also provides specific strategies targeting hiring, retention and staff investment
in separate studies. Sheehan (2000) provides that aptitude, attitude, motivation and personal
chemistry are variables in hiring,the right personnel. However, hiring the right personnel
involves not only the requirements o f the firm but also focusing oii the development o f a good
firm reputation (Barrett, Neeson & Billington 2007) to attract qualified employees (Heneman &
Berkeley ) 999). Strategies for retaining employees are diverse such as good compensation and
benefits programs (Hannay & Northam 2000), pensions and other work benefits ( faylor 2000),
and mission statement that influence positive attitudes (Brown & Yoshioka 2003). Literamre also
■provides the importance of investing in staff to prevent turnover (Huselid 1995) and reflecting
the prioritization and valuation of personnel in the organizational culture (Pickett 2000).

Miller and Wheeler (1992) found that the lack o f meaningful work and opportunities for
promotion significantly affected employees' intentions to leave an organization.
Organizations were able to improve their employees’ retention rate by adopting job enrichment
programs and enhancing their advancement ,opportunities. Besides promotion opportunities, the
evaluation criteria used in the promotion and reward system also had significant effects on
employees’ turnover intentions (Quarles, 1994). Ineffective performance appraisal and planning

19
syslems contributed to employees' perceptions o f unfairness and they were more likely to
consider leaving the organization (Dailey and Kirk, 1992).

A good HRM program will, recruit, select, motivate, and retain employees who have the required
workforce characteristics (Deshpande, Golhar, and Stamm .1993; Saha 1989). A majority of the
published research investigating HRM issues in small businesses is conceptual and has
concentrated on diverse HRM topics. Maurer and Fay (1986) examined the legal issues involved
in employee selection methods used in small business. Gatewood and Field (1987) proposed a
model selection program for small business. Fairfield-Sorm (1987) developed a strategic process
model to guide the establishment of small business training and development programs. Curran
(1988) suggested various training strategies for small business. Fowler and Murlis (1989)
proposed compensation systems for small companies. Cosgrove and Dinerman (1982) addressed
industrial relations issues in small firms. Holley and Wolters (1987) examined cmploymcnt-at-
will issues in small businesses. Finney (1987) and Smith (1991) addressed personnel challenges
faced by FIRM managers o f small firms and proposed strategies for effective HRM.

A commitment HRM bundle includes diverse practices such as training, sharing information,
employment security,: perfo rm ^ce based compensation, employee participation, and ensuring
employees’ well-being (Chang, 2005). Arthur (1994) reported that organizations with
“commitment” human resource systems, emphasizing the development o f employee
commitment, had higher productivity measured with lower scrap rates and lower employee
turnover than firms with "control” systems, emphasizing efficiency and the reduction of costs,
when he collected data from 30 steel mills. Thus, previous studies have mostly reported the
•effect of HRM practices on firm performance and very few on employee attitudes (Arthur, 1994;
Batt, 2002; Huselid, 1995).

Kinicki et al. (1992) found that the relationship between HRM practices and work attitudes were
mediated by employee perceptions of an organization’s commitment to its human resource
practiccs that benefit employees. In a similar study, Koys (1988) found that employees'
organizational commitment was related to their perceptions that the organization used their HRM
practices to attract and retain good employees and to be fair in their treatment o f employees.

20
However, this set of primarily normative literature on international HRM docs not really address
in detail why MNCs do not or cannot pursue home country HR practices in their host country
plants. This absence o f knowledge is particularly noted in the study o f MNC manufacturing
plants in China, with the important exception of Taylor’s studies (1999, 2001). I'here have been,
however, several important comparative studies on the HR and employment practices ot MNGs,
notably that of Japanese MNC manufacturing plants in different countries (eg Gereffi, 1996;
Kenney t al, 1998; Taylor, 1999, 2001; Wilkinson et al, 2001; Frenkel and Scott, 2002).

.
‘If the types and levels of skills are not equally distributed, such that some firms can acquire the
talent they need and others cannot, then (ceteris paribus) that form o f human capital can be a
source of sustained competitive advantage’ (Snell et al 1996:65).

21
 Chapter #3

RESEARCH METHOD

22
 3.1,Research Method
3.1.1 Sample
The samples I have chosen to conduct my research have 45 respondents and the total population
in the organization comprise upon approximately 80-90 employees.
• Types O f Respondents
a) Executives
b) Employees
^ 3.1.2 Research Design
• rhe research design o f the thesis was based on exploratory research.
• People's opinion and views were gathered by preparing questionnaires.
• After the questionnaires were completed, a small informal interview was conducted to
clarify confusion and to understand what else the respondent has in the mind about the
topic. ' ^
• The research was designed in such a way that it will be very bcneficial for the
organizations to improve their existing Human Resource Management.

3.1.3 Research Method

• The research method of the thesis was based on data collection method.
• A lot of data was to be gathered which was only possible through questionnaires that
were filled by various respondents.

3.1.4 Source Of Data

There are two sources o f data, which will be used in this research:
❖ PRIMARY SOURCES.
SECONDARY SOURCES.

3.1.5 Primary Sources

Primary sources of data were the questionnaires which were filled by the respondent and the
^ various small informal interviews, which were conducted.

23
3.1.6 Secondary Sources
'r
Although the core o f the present work is dependent on primary data the study, hke other research
work, use some secondary data for better understanding o f the study area. Secondary sources of
data are some SME related websites, online-magazines, articles and Journals that will help me in
gelling a clear picture o f my thesis.

3.1.7 Research Instrument

The research instrument that was used in this project was a questioner that was filled by the
employees of UFONE (Islamabad Office).
\

3.1.8 Procedure

First of all the geographical area (i.e. Islamabad within which the research was to be conducted
was identified. The reason for choosing this is that the Head office/HR office o f UFONE is also
situated in Islamabad. Therefore gathering data through questionnaires will be helpful.

3.1.9 Timing
The field work/survey was conducted in June and July 2010.

3.1.10 Checking O f The Questionnaire Answer Sheet

Every weekend, the answers were checked for completeness, mistakes, omission and irrelevant-
responses. Identified mistakes and problems were again discussed with some of the respondents
had to be re-intervicw.

24
 Chapter#04

QUESTIONNAIRE ANALYSIS
(EMPLOYEE RELATED)
RESULTS AND DISCUSSION

25
 4.1 OPERATIONALIZATION

Figure 4.1

4.1.1 Questionnaire Analysis

Employees at Ufone were given a questionnaire carrying questions about the main HR aspccts.
The responses are as below and the discussion provides the interpretation o f the results making it
easier to understand the point of view of employees and figure out the major areas of concern.

26
1) Arc you satisfied with the type of recruitment process ifoUowed by Ufone?
Highly Highly
Dissatisfied Dissatisfied Moderate .'Satisfied satisfied
1 2 3 4 5
37.5% 25% 12.5 25% 0

Table 4.1

The responses show that employees are not highly satisfied with the recruitment process and they
do have reservations regarding it. Some feel that as they are into the organization so they are now
not concerned about it but the employees who want to have proper competition and want the
organization to grow then Ufone does need to improve their recruitment process.

« Highly Oissotiified

m Dissoiisfied
m Moderate
IS Satisfied
^ Highly sati'sried

\f
I

Fig.4.2

2) If not satisfied with the recruitment process then which aspect do u consider as
faulty amongst the following?

A
Online testing Less advertisement References Biographical data
>
50% . 30% 10% . 10%

Table 4.2

27
rhe responses show that online testing is the aspect which concerns the employees most and they
feel that recruitment through online testing is not very efficient and it does put the whole
recruitment process under a lot of stress to cope up with candidates nol having the right amount
o f potential. So the management has to look’into the possibility o f getting assessment centers for
a more transparent and trust worthy result.

Fig.4.3

3) In your opinion what is the reason for high employee turnover in your
organization?

Lack of job Low wages Lack of Less Rigid work-

satisfaction. encouragement. empowerment. hrs

20% 10% 10% 30% 30%

Table 4.3

The employees feel that the reasons why their peers or other workers left are mainly less
empowerment and rigid schedules and working hours. These factors force the employees to leave
the organization. The other factors are also to be kept in mind and looked after in order to make
the working atmosphere more conducive to learning and more productive too.

28
 ■ Lack of lob satisfciction.

« Lov.^vagov
s Lack of cncouragenit’Ml,

m Less. em powerineiU.
IS Rigid woi'k-hr%

Fig.4.4

4) Does management face difficulty finding proper replacement for the vacant position
in a timely manner? ^
YES NO
70% 30%

Table 4.4

The responses show that management finds it really hard'to find a suitable replacement for the
employee who leaves the organization. This aspect raises a lot o f questions that if the
organization and employees feel so much difficulty then they should certainly do something
regarding it.

«YE5
■ NO

Fig.4.5

29
5) Do employees get over burdened with the work of the employee who recently left the
organization?
YES NO
60% 40%
Table 4.5

J)ue to lack of appropriate succession planning the work, to be done by the employee left is
handed over to other employees this not only makes them over worked but it also makes them
dissatisfied. There dissatisfaction lowers their motivation level and then certainly with low
motivation and dissatisfaction the work done is not o f the quality previously produced.

I NO
ii:

Fig.4.6

6) Is there a need to develop a proper succession plan in order to fill up the vacant
position as soon as possible?
YES NO
80% 20%

Table 4.6

Almost all the employees feel the need that the organization should come up with a proper
succession plan. Knowing that which employee is to replace whom will make it easy for the
management to hand over responsibilities to the next person in line and will also make it easy for
the employees to know who will be assigned which position and will get what responsibility.

30
 r

1YC5
I. N O

Fig.4.7

7) Arc you satisfied with the way the organization carries out its employee assessment
and development plans?

YES NO
60% 40%

Table 4.7

Employees have a mix reaction to this question where a lot o f them say that they arc satisfied
how the organization sketches their developmental plans and assesses them but still the majority

«V£3
• NO

Fig.4.8

8) Do you feel that a proper plan can" be implemented and encouraged in the
organization which will help it to develop its employees more efficiently?

31
 YES NO
70% 30%

Table 4.8

Hmployees at Ufone feel that the management will surely use a proper plan if they have one and
they will certainly implement it to ensure proper development o f their employees. The plan will
not just develop employees but it will make them more productive too and which will be
beneficial for the organization at the end of the day.

«YlS

Fig.4.9

9) To what extent do you agree that the training sessions announced earlier have better
results and higher motivation level as compared to the ones announced few days before
commencement?
Highly Disagree Moderate Agree Highly Agree

Disagree 2 3 4 5

1
0 0 25% 25% 50%
Tahle 4.9

Majority of the respondents feel that the training session announced earlier are more productive
and give better results as compared to the ones which suddenly come up. So employees feel
more comfortable with the training sessions they are aware o f before time and tend to be more
motivated and productive in those.

0 0

m ( li«h(y D isagree
■ Disat;fC-e

* M odel J l e

■ A g ree

» A g ro c

Fig.4.10
10) Is there a . properly established criterion on which employees are selected to get
training?
YES NO
50% 50%
%

Table 4.10

The responses show that not all of the employees are aware o f the criterion on which employees
arc selected to get training. So its necessary to make the criterion d e ar and known to ail.

■ YES

■ NO

Fig.4.11
11) Are you satisfied with the methods of training used in training programs conducted
for its employees by Ufone?
 TABLE 6.11
YES . NO
90% 10%

Table 4.11

Only 10% employees are not satisfied with the methods o f training used by Ufone but the rest of
90% arc satisfied and they approve of the ways Ufone uses in training its employees. This means
that the training sessions attended by employees are highly productive as the methods used in
them make the employees learn and they get proper training in those sessions.

» Y lS

■ NO

Fig.4.12

34
12) To what extent do you agree that the compensation package offered by Ufone is
satisfying?

Highly Dissatisfied Moderate Satisfied Highly

Dissatisfied 2 3 . 4 satisfied
1 5

0 5% 10% 25% 60%

Tahle 4,12

The responses confirm that employees are satisfied with the compensation they get and they do
not have any issues regarding it. Improvement is always a good thing so they can improve their
package if they want to increase the motivation level and satisfaction o f the employees.

« Highly D issatisfied

M Disstitisficd

§1 M o d o u ito

9 Satisfied '

SB Highty w tisfie d

Fig.4.13

35
 Chapter #5

MAIN ASPECTS OF HRM IN UFONE

36
5.1 MAIN ASPECTS OF HRM IN UFONE
To get full knowledge regarding the working o f the HR department at Ufone, we did inter\'iews
o f the executives and asked them questions as how they manage their employees and what arc
the ways used by Ufone in carrying out different HR activities.
We interviewed Mr. Umair A rif (Senior HR Executive) and Mr. Salman Mehmood (HR
Executive) and got to know the policies and procedures followed at Ufone regarding the main
HR aspects. ^
Following questions were asked with respect to the recruitment and selection o f employees at
Ufone;
. A. RECRUITMENT: '
1) What are your recruitment policies?
2) What steps do you take in planning the recruitment process and how do you indulge in
each step?
B. SELECTION METHODS:
3) What selection methods do you employ at your organization?
4) What exact steps do you follow in each o f the methods employed by your organization?
C. INDUCTION:
5) Do you carry out an organized induction process for the newcomers? If yes, then what
steps exactly do you follow?
6) What are the advantages of carrying out this induction?
D. ROLE OF HR RECRUITMENT:
7) What are some of the more important personnel policies implemented at your
organization?
E. RECRUITMENT SOURCES:
8) Which source of HR do you use? How do you determine the internal and external supply
o f HR?

F. RECR UTTMENT CEIANNELS:

9) What channels o f recruitment exist at your organization?

37
5.1.1 Recruitinent & Selection
Recruitment is an important part of a business' human resource planning. In all businesses,
people are a vital resource and they need to be managed as such./Fhe overall aim o f recruitment
and selection process is to obtain the number and quahty o f employees that are required in order
for the business to achieve its objectives,
rhere arc three main stages in recruitment

Idcntiiy and define the requirements.

Attract potential employees from every possible source.
Select and employ the appropriate people from the job applicants.

Recruitment reflects the increasing need for a we 11-motivated and flexible workforce that
requires less management supervision. Recruitment has always been key to organizations
retaining their competitive edge. Having the right processes can help them to select the best
potential candidates. The requirements set out the knowledge skills and behaviors required and
as such provide a set of criteria against which can assess candidates and avoid attracting
inappropriate candidates.

People are the most important asset of any organization and the success o f that organization
depends on having people with the right skills and abilities. To make sure that the right people
are recruited in the first place, a fair, structured and professional selection process must be used
because the management of any organization believes that Poor selection decisions can result in
increased staff turnover, increased costs for the organization the lowering o f morale amongst the
existing staff

5.1.2 Acquiring human resources ^

Regarding the question related to their recruitment policies the executives responded and gave
the following information: ^ ,

Customer needs for newer and better cellular' services influence the number and type of
employees that mobile phone businesses need to be successful. Management o f Ufone is in the

‘ ^ 38
proccss of predicting the number and type o f employees who are needed to meet customer
demands for cellular services. Management is also identifying current or potential employees
who can successfully deliver the required services., This area o f U fone’s human resource
management deals with:
• Determining human resource requirements— that is, human resource planning.
• Recruiting employees and placing them in jobs that best use their skills
• Selecting employees

• Getting the right people

The recruitment process is planned to provide Ufone with the best available talent, consistent
with the needs o f the business and its capacity to make full use of those recruited.

• Getting the people right

Ufone has consistent policies and practices in training and developing staff and involving them
as 'partners' in the business rather than as functionaries whose roles are restricted to obeying
instructions.

• Planning the recruitment process

The process involves the following steps and procedures;

1. Decisions on vacancies
Before deciding on the existence o f a vacancy, management checks whether there is a need for
the work to be carried out at all or whether it can be incorporated into an existing employee's
job. In case an external source is needed, management then checks whether it should be a
permanent, liill-time employee or whether it should be a contractual one.

2. Consulting other staff who is involved

rhe human resource management then considers other departments in the organization that
might be iritcrested in the appointment in'order to make it a joint effort. They talk to relevant
supervisors and especially to the people the new^ person will work with. A set o f expert panelists
arc then selected from each relevant department to interview' applicants.

39
 3 . Working out the sort of person required
rhc human resource management then lists the duties, responsibilities, authority and
relationships that the job involves. They decide what quaUfications are needed, what type and
length of experience are required, and what personal attributes are important. On this basis they
then draw up an up-to-date job description and person specification and proceed to forecast how
soon the person is expected to be competent, what training they are prepared to give and when
the start date o f the job should be.

4. Finding out if he/she exists

The HR management then speculates whether they are likely to fmd the qualities, qualifications
and experience that they are seeking in one person. If so, research is carried out on the kind of
pay and benefits package to offer. They do this through monitoring advertisements, referring to
salary surveys and-networking with other employers in their area and sector. This research will
* aiso detennines whether they are likely to find suitable candidates locally or whether they will
have to look further the field. Then they contemplate whether people will want to join the
organization and on how to attract them.

5. Planning on how to find them

The HR management gives priority to its own employees even in case o f a negative assessment.
They first advertise the post internally, both as a courtesy to staff and because they may pass the
information on to any interested friends and relations. Word o f mouth is also a valuable
recmitmcnt method for them and they draw on all appropriate contabts they havT.

6. Decision on whether to advertise

Once the HR management decides that there is a need to advertise, they pinpoint the part of the
f

press that they need to contact. Since most o f the posts are o f a specialist nature, they intend on
advertising in the journals o f professional bodies and the trade press. Their next step is to find
out how much adverts cost for varying amount o f space and decide what they can afford.

7. Writing the advertisement

The HR management has hired the services o f Interflow, an advertising agency, to propagate
their service and company for them. They are also using the services o f a web designer, '
Eveready media, to post the advertisement o f the company on the Internet. T h ejo g o of the

40
organization is right across the middle of the page and they have dedicated an entire page
especially for questions that anyone might have. All their adverts for jobs mention the following
clcarly but succinctly:

• The duties and responsibilities of the job

• The qualification and experience required including hands-on experience, internal and
external experience
• The personal qualities sought including age, gender etc.
i

• Where the job is based and e-mail contacts

• Indications of the salary or type of salary
• What form of reply is demanded (CV or request for an application form) .

8. Drawing up a short list

Then the HR management decides on the length of the short-list, -wliich includes five or six
people at the most. Following the advert they need help to sift through the applications.
Everything is computerized and on-line which makes it easier to handle large numbers of replies.
In case they run short o f time, they get the help o f other staff, supervisors and managers in the
organization. Apart from the question of time, they do this to get second opinions, fhey look out
for the following when reading an application:
• How well-matched is the candidate to the requirements
• Any unexplained employment gaps
• The quality of presentation ^
• How tailored the reply is to the particular job and .Ufone as an organization.

9. Replying to candidates
The candidates that do not match the job are contacted as quickly as possible and dealt with
courteously since the HR management believes in the philosophy that these people, and their
relatives and friends, may be future customers or acquaintances o f potential, future applicants.
Those that match the job are called over to undertake an on-line evaluation test.

41
 10. Interviewing Potential Candidates
The candidates that pass the on-Hne evaluation test are then called for interviews. A date and a
lime are arranged and the candidate appears for the interview. The questions o f this interview are
designed especially for gauging the personality and ability o f the candidate.

11. The Screening Process

The results are screened by a set of panelists in order to minimize chances o f error in selecting
the candidates. The HR management sometimes keeps a small number o f candidates in reserve.

5.1.3 Types of selection methods

Following are the responses on the executives which tell about the common selection methods
employed by HR management at Ufone:

• Interviews
“A dialogue initiated by one or more p ersons.to gather information and evaluate the,
qualifications of an applicant for employment”. The HR staff;
• Keep the interview structured, standardized, and focused on accomplishing a small
number of goals. That is, they plan to come out o f each interview with quantitative
ratings on a small number of dimensions that are observable and avoid ratings o f abilities
that may be better measured by tests.
• Ask questions dealing with specific situations that are likely to arise on the job, and use
these to determine what the person is likely to do in that situation.
• One part is “experience based” questions, which require the applicant to reveal an
actual experience he/she had in the past when confronting the situation.
• The other part are “future oriented” questions, which require the person to state
what he/she is likely to do when confronted with a ccrtain hypothetical situation
in the future.

• References and biographical data

Ufone solicits information on the employee from the people who know the candidate thiough
reference checks.
Biographical data is collected directly from the job applicant.

42
 i. Cognitive ability tests
These tests differentiate between the mental capacities o f individuals. There are three dominant
facets of the tests that the HR management applies:

ii. Verbal comprehension

They check on the candidate’s capacity to understand and use written and spoken language

iii. Quantitative ability

They check the speed and accuracy with which the candidate can solve arithmetic problems of
all kinds

iv. Reasoning
fhey check the candidate's capacity to invent solutions to many adverse problems

• Personality inventories
There are five common features o f personality:
• Extroversion
• Adjustment
• Agreeableness
• Conscientiousness

• Inquisitiveness
The HR management records the mix of these features in each employee’s individual record.

• Work Samples
Work-sample tests and job-performance tests simulate the job in miniaturized form. HR
management checks the behavioral consistency between the requirements o f the job and the
requirements of the test.

5.1.4 ORGANISING THE INDUCTION OF NEW RECRUITS

The purpose of induction is to ensure that new employees:
• Are integrated into their working environment as quickly as possible v
• Leam relevant aspects of the organization's mission, culture, policies, procedures and
methods of working

43
 • Become productive and well motivated
• Become awarfc o f the skills and knowledge needed for the job
• Understand their responsibilities

o Advantages
• Newcomers are integrated more quickly into the organization and become productive
earlier
• You show that you value the newcomer, making them feel welcome and giving them a
sound impression of the organization

• Recruitment costs are seem as an investment

• Successful induction is an essential first stage o f an employee development program

• Appointing a mentor
fhe MR management usually makes someone about the same age and grade o f the newcomer act
as a friend and advisor for the first few weeks. They monitor the relationship and step in if it isn't
working.

• Planning the induction and involving and informing others

fhc induction program is drawn up and authorized by the newcomer's manager. The mentor, if
any, is also involved in the process. Other staffs that will be working with the new employee are
informed of the induction program whether or not they will be irivolvcd. The induction plan
contains three stages in a thirty-day period: the first stage covers the bare essentials and the
objectives to be met; the second stage involves learning by a mix o f approaches; the final stage
familiarizes the new comer with all departments.

• Preparing The Work Area

I ’hc new employee’s work area is kept in perfect shape. All relevant stationery is checked and it
is seen to that the equipment is in working order.

• Introducing the recruit to the organization and the department:

The newcomer is informed of housekeeping arrangements and provided with the employee
handbook. He/she is given copies o f the necessary documentation, the organization chart and job

44
 description etc. An introduction to the department and team in which he/she will be working
must also be made. Although the newcomer will be introduced to people around the
TS
organization, a detailed look at what other departments do will follow at a later stage of the
induction process.

• Emphasizing the importance of organization policies and procedures:

i
New employees are made aware at an early stage of policies and regulations based on legislation.
Other procedures based on national standards and other schemes are also introduced.

• Planning a balanced introduction to the work:

No'mattcr how the training is done, a mix of explanation, observation, practice and feedback is
continuously dispersed. Information overload is avoided. The new employee is straightaway
given real work to do to avoid boredom and to give early opportunities for achievement.

• Clarifying performance standards:

The performance levels required are made clear from the beginning since HR management is
aware of the fact that employees cannot be expected to meet standards o f which they are
unaware.

• Conducting regular reviews of progress: ,

1hese are made during the induction program on a periodic basis, to ensure that all the objectives
and the new employee’s needs are being met. The program sometimes has to be adapted to
match individual learning requirements and speeds. The usual reviews consist o f informal chats
but a more formal appraisal interview takes place at the end o f the program, particularly when
the employee is on probation. The views o f the employee on the overall induction process are
sought for the design of future programs.

5.1.5 Role of HR Recruitment:

• Personnel policies:
I'hese arc organizational decisions that affect the nature of the vacancics for which people are
recruited. They affect the following specific features of a vacancy:

45
 r

I. Internal vs. External Recruiting;

One desirable feature o f a vacancy is that it provides ample opportunity for advancement and
promotion. Ufone recruited for upper-level vacancies externally. The top brass of Ufone are top
executives working previously for other cellular service cornpanies and hence carrying the
required experience and expertise.

II. EmpIoyment-at-will policies;

These state that either party in the employment relationship can terminate that relationship at any
lime, regardless of cause. Ufone does not believe in employment-at-will policies and has the
typical due process policies. Due process policies formally lay out the steps an employee can
take to appeal a termination decision.

/ //. Lead-the-market pay strategics;

7

A policy w^here applicants are offered highef-than-market wages. Ufone believes in these
strategies and has successfully implemented them.

IV. Image advertising;

Ufone is portraying itself as a people-oriented organization where human resources are the
primary concern and it is aiming at being the best cellular operator in Pakistan.

5.1.6 Rccrutement Sources:

• Internal vs. External sources;

c

External recruitment is currently the trend at Ufone as it is still in its infancy but once all
vacancies are filled, the organization will switch over to internal sources. Ufone at this moment
is looking for the perfect mix of employees in order to combine the best o f all worlds and expose
the organization to new ideas and new ways o f doing business etc. The final philosophy behind
internal recruitment sources is that a sample o f applicants are generated who are well known to
\

^ 46
the firm, these applicants are relatively knowledgeable about the company's vacancies which
minimizes the possibility o f inflated expectations about the job and above all, it is faster to fill
vacancics internally.

• Direct applicants and referrals:

Direct applicants are people who apply for a vacancy without prompting from the organization.
Referrals are people who are prompted to apply by someone within the organization. Ufonc uses
both sources of recruits since they have certain advantages e.g. before applying for the vacancy,
they have already collected information regarding the job and believe themselves to possess
qualifications in conformity with the requirements.

• Advertisements in newspapers and periodicals:

Ufone believes that these generate less desirable recruits and at a greater expense. Two points
that management especially notes in designing the job advertisements:

• What to say: The organization tries its utmost to give enough infonnation to persons
reading an ad to evaluate the job and its requirements, allowing them to make a well-
informed judgment regarding their qualifications. Sometimes this means running longer
advertisements, which costs more. However, these additional costs arc evaluated against
the costs o f processing a huge number o f applicants who are not reasonably qualified or
who would not find the job acceptable once they learn more about it.

• To whom to say it: The organization is using the Internet, newspapers, word o f mouth
ctc. and is taking one step at a time. Right now they are involved in general advertising
but will soon try to reach specific parts o f the overall labor market.

• Colleges and universities:

Fresh graduates from colleges and universities are also a welcome source to Ufone.

5.1.7 Recruitment Channels:

• Job posting programs:^

47
These inform employees about openings and required qualifications and invite qualified
employees to apply.

• Departing Employees:
In case of Ufone, a buyback occurs when the employee resigns to take another job, management
tries to outbid the new job offer and get back the employee.

5.2 Training & Employee Development

The executives were asked following questions regarding the training and development aspect of
Human Resource Management at Ufone
TRAINING SYSTEM:
1) How would you define the training system at your organization? W hat steps have you taken in

designing it?

2) W hat are the different training m ethods used by the organization?

• HR DEVELOPMENT:
3) Do you believe in HR developm ent? W hat do you expect to achieve out o f it? What are your

approaches to it?

5.2.1 Training:
Training is the organized procedure by which people leam knowledge and/or skills for a dcfmite
purpose. Almost every employee hired by an organization will require some training in his or her
job. Some training programs may be more extensive than others, but all require the trainer to
have identified content and subject matter needed in the training and tasks to be performed on the
job to ensure that the training will prepare individuals to perform the job effectively. Many fums
provide new employees with copies of the descriptions and specifications for the jobs to which
they have been assigned. This aids in orienting them and acquainting them with what they are
expected to do.

5.2.2 Designing Effective Training Systems:

Ufone uses an “Instructional design process” (which refers to a systematic approach (or
developing training programs). It consists o f the following:

48
 • Conducting needs assessment:
There are different pressure points that suggest whether training is necessary such as
performance problems, new technology, internal and external customer requests for training, job
redesign, new legislation, changes in customer preferences, new services or employees' lack o f
basic skills. The assessment carried out by Ufone involves:

• Organizational analysis;
Determining the appropriateness of training, given Ufone’s business strategy, its resources
available for training and support by managers and peers for training activities.

• Person analysis:
Determining whether performance deficiencies result from a lack o f knowledge, skill, or ability
or from a motivational or work design problem; identifying who needs training; and determining
employees' readiness for training. ;

• Task analysis:
Identifying important tasks, knowledge, skills and behaviors that need to be emphasized in
training.

• Creating a learning environment:

For employees to acquire knowledge and skills in the training program and apply this
information to their jobs, the training program includes specific learning principles. Following
arc some of the principles followed by Ufone:

• Employees need to know why they should learn:

Ufone HR management realizes that employees ieam best when they understand the purpose and
expected outcome o f training activities. The training objectives have three components and help
employees understand why they need the training:
• A statement o f what the employee is expected to do (performance)

49
 A statement of the quality or level o f performance that is acceptable (criterion)
A statement of the conditions under'which the trainee is expected to perform the desired
outcome (conditions)

• Employees use their own experiences as a basis for learning;

Sincc‘ employees are more likely to learn when the training is linked to their current job
experiences and tasks, hence they are provided an environment that is identical to the
environment they will be working in.

• Employees need to have opportunities to practice;

Practice involves having the employee demonstrate the knowledge, skill or behavior emphasized
in the training objectives under the conditions and performance standards specified by the
objective. The Ufone HR management makes it a point that instruction does not exceed
employees’ short-term and long-term memory capacity. If lengthy procedure or process is to be
taught, instruction is delivered in shorter sessions, or chunks, in order not to exceed memory
limits. Visual images are also used to reduce demands on memory.
I'here arc multiple practice sessions, distributed over a period o f 3 months.

• Employees need feedback;

Employees need information about how well they are meeting the training objectives. Feedback
focuses on specific behaviors and is provided as soon as possible after the trainees’ behavior in
order to be effective. Also, positive trainees’ behavior is verbally praised or reinforced
depending on the circumstances. Videotapes are also an integral part o f the practice sessions. The
trainers view the videotape with trainees, provide specific information about how behaviors need
to be modified, and praise trainee behaviors that meet objectives.

50
 • Employees learn by observing the others;
A process called behavior-modeling training, which uses models to get trainees' attention and to
demonstrate the skills or behaviors that trainees need to learn. For the model to be effective, HR
management clearly specifies the desired behaviors or skills and gives the model characteristics
similar to the target audience. After observing the m odel trainees are given the opportunity to
reproduce the skills or behavior shown by the model in practice sessions.

• Employees need the training program to be properly coordinated and arranged:

Good co-ordination ensures that trainees are not distracted by events that could interfere with
learning. Activities before the program include communicating to trainees the purpose of the
program, the place at which it will be held, the name o f a person^to contact if they have any
questions, and any preprogram work they are supposed to complete. Books, speakers, handouts
and videotapes are prepared. All necessary arrangements to secure rooms and equipment arc
made. The physical arrangement o f the training room complements the training .^technique.
Trainees are informed o f starting and finishing times, break times, and location o f bathrooms.
Distractions arc kept to a minimum. When trainees are asked to evaluate the program and take
tests to determine what they have learned, time is allotted for this activity at the end of the
program. Following the program, any credits or recording o f the names of trainees who
completed the program are noted down. Handouts and other training materials are stored or
returned to the consultant. At the end of the program, the manager considers how it could be *
improved for the following time,

• Ensuring transfer of training:

For training programs to be successful, trainees are made to use training in their work. Transfer
of Training— the use of knowledge, skills and behaviors learned in the training environment on
the job— is influenced by the degree to which learning occurred in the training program, the
work environment, and the extent to which trainees are prepared to deal with factors in the work
environment that inhibit use o f new skill, knowledge or behavior.

51
5,2.3 Selecting training methods:

Ufone uses the following training methods in order to train and equip their employees with the
neccssary skills:

• Presentation techniques:
These involve traditional classroom instruction, distance learning and audiovisual techniques.
They are used ideally for presenting new facts, information, different philosophies and
alternative problem-solving solutions or processes. They consist of:

• Classroom Instruction: The trainer lectures a group. In many cases the lecture is
supplemented with question-and-answer periods, discussions and case studies. The
instructor tries to build active participation, job-related examples, and exercises into
traditional classroom instruction so that trainees will learn and use the information
presented on their job.

• Distance Leaning: It will be used by the Head Office and Branch offices to provide
information about new services, policies or procedures as well as skills training and
expert lectures. It involves two-way communication between people. It includes audio
conferencing, videoconferencing and docu-confcrencing (this allows employees to
collaborate on a shared document via computers).

• Audiovisual Techniques: This is a common method used by Ufone that involves

overheads, slides and video. Video is the more popular instructional method. It is being
used by the organization for improving communication skills, interviewing skills and
customer service skills and for illustrating how procedures should be followed. It is
usually used in conjunction with lectures to show trainees' real life experiences and
examples.

52
 • Hands-on techniques:
I ’hcse include:

• On-the-job Training: It is used for newly hired employees, upgrading the skills of
experienced employees when new technology is introduced, cross-training employees
within a department or work unit, and orienting transferred or promoted employees to
their new jobs. The basic philosophy o f the HR management o f Ufone is that employees
^ learn through observing peers or managers performing the job and trying to imitate their
behavior.

• Simulations: A training method that represents a real-life situation, with trainees’

decisions resulting in outcomes that mirror what would happen if the trainee were on the
job. They allow trainees to see the impact of their decisions in an artificial, risk-free
environment and use simulations to teach management, interpersonal as well as technical
skills. ^

• Business Games and Case Studies: These are designed to make the trainees study and
discuss among themselves (case studies), while in business games, the trainees must
gather information, analyze it and make decisions. Ufone believes in business games
because they stimulate learning since participants are actively involved and they mimic
the competitive nature of business. The types of decisions that participants make in
games include all aspects of management practice.

• Behavior Modeling: Each training session focuses on one interpersonal skill and
includes a presentation o f the rationale behind the key behaviors, a videotape of a model
performing the key behaviors, practice opportunities using role playing, evaluation of a
model's performance in the videotape and a planning session devoted to understanding
how the key behaviors can be used on the job. In the practicc sessions, trainees arc
provided with feedback regarding how closely their behavior matches the key behaviors
demonstrated by the model. The role-playing and modeled performance are based on

53
 actual incidents in the employment setting in which the trainee needs to demonstrate
success. ' V,

Interactive Video: Instruction is provided one-on-one to trainees via a monitor

connected to a keyboard. Trainees use the keyl!)oard or touch the monitor to interact with
the program. This is used to teach technical procedures and interpersonal skills.

Group building techniques:

These help trainees share ideas and experiences, build group identity, understand the dynamics
of interpersonal relationships, and get to know their own strengths and weaknesses and those of
their co-workers.

5.2.4 Evaluating Training Programs:

Ufonc continuously monitors its training programs in order to:
• Determine whether the program is meeting objectives, is enliancing learning and is
resulting in transfer o f training to the job. .
• Determine whether trainees believe that the content and administration of the program
were satisfactory

5.2.5 Developing Human Resources:

I'he HR manager ensures that employees have the necessary skills to perform current and future
jobs. Because of the new technology and the quality movement in this field, Ufone believes in
work performed by teams. Hence,.managers and employees develop skills to be successful in a
team environment. Because many employees value work that is personally rewarding and docs
not interfere with non-work activities, the HR management also helps employees identify their
work interests and goals and cope with issues such as balancing work and family roles. This area
o f Ufone’s human resource management deals with:
• Ensuring that employees have the skills needed to perform their current job
• Preparing employees for future work roles
• Identifying employees’ work interests, goals and values and other career issues

54
5.2.6 Approaches to Employee Development:
rhcrc are 4 approaches:

• Formal education:
These involve lectures by business experts, business games and simulations and meetings with
customers. Separate education programs are offered for supervisors, middle managers and
executives. Special programs for particular jobs are also offered.

• Assessment:
I'his involves collecting information and providing feedback to employees about their behavior,
communication style or skills. The employees, their peers, managers and customers are asked to
provide information. It is used to identify employees with managerial -potential and to measure
current managers' strengths and weaknesses. It is also used to identify managers with the
potential to move into higher-level executive positions, and is used with work teams to identify-
the strengths and weaknesses of individual team members and the decision processes or
communication styles that inhibit the team’s productivity.

• Job experiences:
A major assumption of Ufone is that development is most likely to occur when there is a
mismatch between the employee’s skills ad past experiences and the skills required for the job.
l o be successful in their jobs, employees must stretch their skills— that is, they are forced to
learn new skills, apply their skills and knowledge in a new way, and master new experiences.
The various ways in which job experiences are used by Ufone for employee development is;

• Enlargement of current job;

Management gives its employees an opportunity to develop in their current job by adding
challenges or new responsibilities.

• Job rotation;
It involves providing employees with a series o f job assignments in various functional areas of
the company or movement among jobs in a single functional area or department. Management
does this to help employees gain an overall appreciation of the company's goals, increase their

55
understanding of different company fiinctions, develop a network o f contacts, and improve their
problem-solving and decision-making skills.

• Succession planning:
It involves the identification and tracking of “high-potentiaf’ employees. They are those that the
company believes capable of being successful in higher-level managerial positions. The HR
management then gives them special assignments, such as making presentations and serving on
committees and task forces.

• Interpersonal relationships;
Employees are made to develop skills and increase their knovs^ledge about the company and its
customers by:

Mentoring: A mentor is an experienced, productive senior employee who helps develop

a less experienced employee (the protege). Most mentoring relationships develop as a
result of interests or values shared by the mentor and the protege.
Given the advantage of these programs that they ensure access to mentors for all employees,
regardless of gender or race, Ufone management uses them to socialize new employees, lo
increase the likelihood o f skill transfer from training to work setting, and to provide
opportunities for women and minorities to gain the exposure and skills needed to move into
managerial positions. .

%
b. Coaching Relationships: A coach can be a peer or a manager who works closely with a
person to help him or her develops skills and strengthens behavioral weaknesses. The
coach provides feedback, interprets company issues related to their weaknesses, acts as a
sounding board for new ideas and sets up exercises to help the person practice new
behaviors. The progress is evaluated after 6 to 8 months o f working together/

• Development for managers with dysfunctional behaviors:

Certain managerial behaviors can cause otherwise competent managers to be ineffective. These
behaviors include insensitivity to others, inability to be a team player, arrogance and poor

56
conflict-management skills. Assessment, training and counseling are typically used by Ufone to
help managers change the dysfunctional behavior

5.3 Compensation ^
Following questions were asked from the HR Executives regarding the compensation and
bencllts provided to the employees at Ufone;

EM PLOYEE C O M PEN SA TIO N & BENEFITS:

1) W hat system do you have regarding em ployee com pensation?

2) W hat sort o f pay system do you be offer your em ployees? How do you develop the pay system?

The following material is extracted from the responses given by the Executives and arranged and
elaborated for better understanding.

5.3.1 Compensating Human Resources:

Besides interesting work, pay and benefits are the most important incentives that companies can
offer employees in exchange for contributing to productivity, quality and customer service. Also,
pay and benefits are used to reward employees’ membership in the company and attract new
employees. The positive influence of new work designs, new technology, and the quality
movement on productivity can be damaged if employees are not satisfied with the level of pay
and benefits or believe pay and benefits are unfairly distributed. This area of Ufone’s human
resource management deals w ith:'
• Creating pay systems. They have a competitive pay system in which the basic pay is
maintained 30% over and above the market rates.
• Rewarding employee contributions with monetary and non-monctary incentives.
• Providing employees with benefits. These include medical insurance and retirement
benefits.

57
5.3.2 Developing Pay Levels:

• MARKET PRESSURES:
The company has developed pay levels based on two important competitive market challenges
which are as following:

• SERVICE MARKET COMPETITION;

Ufone needs to be able to sell its services at a frequency and pricc that will bring a sufficient
return on its investment. Ufone is maintaining its labor costs at par with its service-market
competitors and hence is able to compete with attractive price levels.
a) The major component of their labor costs is the average cost per employee, which
includes:
• Direct payments (in wages, salaries and bonuses) .
Indirect payments (in health insurance etc.)
• The second major com ponent\>f labor costs is the staffing level (the number of
employees) which is adequate and economic in this case.

• LABOUR MARKET COMPETITION;

It is the amount Ufone must pay to compete against other mobile companies.

5.3.3 Employees As A Resource:

Ufone considers the employees as a resource in which it has invested and from which it expects
valuable returns. Although controlling cost has a direct effect on Ufone’s ability to compete in
the service market, it maintains its competitive position by not keeping costs low at the expense
of employee productivity and quality.
Ufone offers attractive and competitive pay policies and programs for encouraging desired
employee behaviors and discouraging undesired behaviors.

• DECIDING WHAT TO PAY:

The advantage of paying above market level is the ability to attract and retain the top talent
available, which can translate into a highly effective and productive work force. Ufone
management has collected market-survey data on minimum and maximum rates o f pay. The

- 58
company makes use o f ranges to recognize differences in employee performance, seniority,
training, and so forth in setting individual pay.

• EMPLOYEE COMPENSATION:
This includes:
• Minimum wage
• Overtime
• Equal employment opportunities (in terms o f equal pay without' discriminating against
sex or race)
• Merit pay (payment based on performance)
• Individual incentives (reward for individual performance that can be earned and re-
eamed)
• Profit sharing (focuses on individual employee)

1) EMPLOYEE PARTICIPATION IN DECISION MAKING:

Ufone believes that involvement in design and implementation o f pay policies leads to higher job
and pay satisfaction because employees have a better understanding o f and greater'commitmenl
to the policy when they are involved.

• EMPLOYEE BENEFITS:
These include:
• Insurance benefits (health, life, disability)
• Employee security benefits (income security, retirement security)
• Time off benefits (on-the-job breaks, sick days "and w ell.pay, holidays and vacations,
leaves of absence)
• Work scheduling benefits (deadlines must be met whether from home or from office)
• Employee services (educational, financial, social)

59
 5.4 CAREER DEVELOPMENT
As career development has become a very important aspcct o f every em ployee's life that is why
we asked the Executives to tell us regarding Ufone’s approach towards career development of its
employees
C A R EER D EV ELO PM EN T:

1) W hat issues do you face on career developm ent? How will you handle them ?

5.4.1 CAREER PLANNING:

It entails matching an individual’s skills and aspirations with opportunities that are or may
fcbccomc available in the organization. This matching process requires that those in charge of
carcer planning know the skill requirements o f the various jobs. This allows them to guide
individuals into jobs in which they will succeed and be satisfied.

5 4.2 CAREER DEVELOPMENT ISSUES:

The issues at Ufone involve: ^

• SOCIALIZATION AND ORIENTATION:

fhere are various aspects: ^

• ORGANIZATIONAL SOCIALIZATION.-
Organizational socialization is the process by which new employees are transfonncd into
effective members of the company. It involves being prepared to perform the job effectively,
learning about the organization, and establishing work relationships. It involves four phases:

• Anticipatorv Socialization: It occurs before the individual joins the company.

Individuals develop expectations about the company, job, working conditions, and
interpersonal relationships through interactions with representatives from the company
during the selection process and prior work experiences in similar jobs. Potential
employees are provided with realistic information about the job, working conditions,
company and location, to ensure that they develop appropriate expectations. Ufone
management ensures that there are no unmet expectations.

60
 • Encounter; No matter how realistic the information they were provided during the
interviews and site visits, individuals beginning a new job will experience shock and
surprise. Employees need to become familiar with job tasks, receive appropriate training,
and understand company practices and procedures. Ufone ensures challenging work and
complete cooperation and help of managers and peers to enhance employees’ learning a
new job.,
• Settling In: In this phase, employees begin to feel comfortable with their job demands
and social relationships. They begin to work on resolving work conflicts and conflicts
between work and non-work activities. Employees are interested in the company's
evaluation of their performance and in learning about potential career opportunities
within the company. Ufone facilitates all their needs and desires.
• Orientation: At this point Ufone management familiarizes new employees with
company rules, policies, and procedures.

• CAREER PLATEAUING:
An employee is considered plateau if the likelihood o f receiving future job assignments with
increased responsibility is low. Employees can plateau for several reasons:
f

• Lack of training
• Low need for achievement
• Unfair pay decisions or dissatisfaction with pay raises
• Confusion about job responsibilities
• Slow company growth resulting in reduced development opportunities
Managers have developed preventive measures to avoid plateauing. They are as follows:
• Help the employees understand that being “stuck’* in a position is not necessarily the
employee’s fault
• Provide performance feedback to employees, especially to unproductive ones
• Encourage employees to become involved in developmental opportunities, including
training courses, job exchanges, and short-term assignments in which the employees can
use their expertise outside their departments.
• Encourage employees to seek career counseling if they ever feel plateau and available
options accompanying the counseling to help deal with the problem.

61
 • SKILLS OBSOLESCENCE:
It is a reduction in an employee’s competence resulting from a lack o f knowledge o f new work
processes, techniques, and technologies that have developed since the employee completed
his/her education. Ufone management has made provision for this by:
• Providing employees with the opportunity to exchange information and ideas
• Giving employees challenging job assignments early in their careers

• Providing job assignments that challenge employees and require them to “stretch” their
skills
• Providing rewards for updating behaviors, suggestions, and customer service and service
innovations
• Allowing employees to attend professional conferences, subscribe to professional
journals and magazines, attend seminars i

• COPING WITH JOB LOSS:

Companies that lay off employees can experience lowered job commitment, distrust of
management, and difficulties recruiting new employees. It also causes stress and disruption in
the personal lives of laid off employees. Managers must first help the employees who will lose
their jobs and then take steps to ensure that the '‘survivors" o f the layoff remain productive and
committed to the organization.

• RETIREMENT:
It involves leaving a job and work role and making a transition to life without work. Ufone
management has taken a proactive approach on this issue in the following manner:

62
 • PRE-RETIREMENT SOCIALIZATION;
The process of helping employees prepare for exit from work. Management encourages
employees lo leam about'retirem ent hfe; plan for adequate financial, housing and health-care
resources; and form accurate expectations about retirement.

• EARI.Y RETIREMENT PROGRAMS:

rhcse offer employees financial benefits to leave the company. Ufone management has decided
on a lump sum of money and a percentage o f salary based on years o f service
Eligibility for early retirement.

63'
 Chapter#06

PROBLEMS FACED DURING HUMAN RESOURCE

MANAGEMENT AT UFONE

64
6.1 PROBLEMS FACED DURING HUMAN RESOURCE MANAGEMENT
AT UFONE

Ufone being the second most widely used mobile service has to encounter the ever changing
requirements of the industry and they have to work in the best possible way to get their
organization in the position of maintaining their service quality and aiming to achievc higher
than before.

Every organization has some problems within as nothing is perfect in the corporate sector. Ufone
too has some problems which pose threat to their efficiency and can bring about major negative
effects on their performance if not properly and timely handled.

rhc problems we are going to discuss here are regarding their Human Resource Management
and it is imperative that now Ufone has to take immediate measures to solve these problems in
order to get over the persistent negative effects o f the lags and shortcomings o f their practiccs
and policies.

The major problems currently faced by Ufone Human Resource Management are as following:

6.1.1 No Assessment Centers:

Ufone carries out its recruitment process by using online tests for the selected applicants in order
10 shortlist the best possible individuals. The online testing is not a very appropriate method of
assessing an individual's abilities. The basic hurdle faced by Ufone in conducting a regular test is
lack of assessment centers and high cost o f outsourcing. The organization cannot afford to have
its own assessment centers and cannot outsource it so they rely on on-line testing which is not
very reliable and it has the chances of candidates using unfair means to pass the test and get into
the short listed candidates.

If the first step has some loops and holes then it affects the remaining process too. So, the
recruitment process's first step of test doesn’t let the organization get the best possible candidates

^ . 65
short listed so they have a fauUy pool of potential candidates which will not result in effective
recruitment but v^ll make it difficult for the organization to find the best fit for the job.

6.1.2. High Turnover Rate:

One of the biggest problems faced by Ufone is that they have a very high turnover rate and that
not only has negative impact on their productivity but it also stains their reputation. Employees
leave the organization and then the management has to look for their replacement and invest
resources into it and the loss of time becomes another problem for the organization.

Currently Ufone has turnover rate of 24-25% and on the other hand the overall industry turnover
rate is approximately between 6-7% which clearly indicates that Ufone is facing a serious
problem in retention of employees and somewhere or the other there are ccrtain hidden reasons
which force the employee to leave the organization. These hidden reasons need to come out in
the open and be soelved otherwise the organization will keep on losing employees, resources and
time.

6.1.3 Succession Planning:

Ufone looks into the replacement and succession planning o f the top level employees only and
they pay less attention to have any kind o f plans when a junior level employee leaves the
organization for some or the other reason. The lack o f planning for the junior level makes it
difficuh for the organization to come up with a clear replacement and they waste a lot of time to
hand over the responsibilities to someone in case any employee leaves his/her job.

Because of this the time lost in finding the right replacement the organization faces delays and
poor quality o f work. The delays and poor quality o f work not only negative effect the.
organization's productivity but they also ruin the image o f the organization in the eyes of the
customers and other employees.

6.1.4 Who and When to Train:

Another problem observed in ufone is that the employees are not aware o f the criterion on which
they will be sent for training and there are no pre-defined training schedules for the employees.

66
Sudden training sessions not only create a discomfort in employees but they also tend to lower
their morale and make them feel over worked and loaded. Such sudden training session may also
affect their motivation level as they might have prior commitments and any off the job training
can create a problem for them.

67
 s

Chapter#07
RECOMMENDATIONS AND CONCLUSION

68
7.1 RECOMMENDATIONS

In order to assure a better and more efficient human resource management system in Ufone there
are certain measures that will enable it to become more productive. The efforts directed towards
betterment of any business procedure not only give a better result for that particular system but it
also improves the overall productivity of the organization.

Problems faced by Ufone do not point out towards any major organizational mismanagement but
they direct us towards the lack o f confidence in employees by the organization and the lack of
interest of employees in becoming part of the company. This problem is not a one sided
phenomenon and has to be addressed froni the point o f view o f not only the organization but also
from the employees' side. Considering both the parties as equal sufferers we can have a better
and deeper look into the matter and thus come up with a comprehensive solution which
addresses grievances o f both the parties.
-4 ■ ^

In today’s dynamic world the organizations compete not on technologies but on the human
capital and the expertise they possess. It is the human intellect, which makes the difference in
■performance of big corporations and takes them sky high. At Ufone employees are considered as
an asset but sometimes-due to some issue or the other this asset is lost in the hands o f other
telecom companies.

After looking at the detailed analysis of HR at Ufone, following recommendations can be given
to the management to improve their practices and to eliminate the above mentioned problems
prevailing at Ufone:

• For the efficient working o f HR, Ufone should employ additional headcount under the
HR department required to fulfill employee needs since Ufone is expanding in operations
and now more is expected from existing employees.

• Ufone should develop a recruitment assessment centre team for major regional olfices,
one time cost will definitely reduce the recurring expense over the longer term, fhis will
also reduce the hiring of inefijcient talent at Ufone.

69
1 o reduce turnover rate, there should be a shift ftom monetary-based compensation to a
mixture o f both, monetary and non-monetary benefits like entertainment events, club
memberships and discounted vacations.

Turnover can also be reduced through consistent developmental activities, appreciation,

certification, excellence awards, and giveaways for lower level (junior) employees. For
example, employee of the month

o Best Achiever

o Best Performer

6 Best innovator

Ufone should also make increased use o f employee empowerment through which they
will be more motivated to do their jobs as they will feel ownership o f their work and the
results. ,

Ufone should also introduce ‘flextime" as its other competitors. They should use many
flexible work schedules especially for their female employees. They should have
discretion over when to arrive and when to leave remaining within certain established
parameters.

In order to be able to have a proper replacement o f employee the organization can opt for
subsequent level trainings where the employee may be given the necessary training for
the next level he/she is supposed to take the responsibility o f in the near future. I'hc
training session can elaborate the necessary requirements o f that higher level and prepare
the employee for taking up more responsibilities. In this way successor to any post wont
be difficult to find and the best performing candidate in the training session might be
considered to be given a promotion when a higher level vacancy is available.

For better succession planning Ufone can ask its employees to mentor their juniors and
continuous mentoring will enable the juniors to learn the work easily and replace the boss
if anything goes wrong.

A proper year plan will enable the employees and the management to take care of all their
responsibilities more efficiently. A scheduled training plan clearly chalking out the

70
 months and spans o f training sessions will make the employees more comfortable and the
training will be more fruitful. The year plan will not only carry the training schedules but
will also have the important milestones and meetings mentioned in it in order to make the
management more vigilant arid efficient and planning ahead o f time is never fruitless but
always gives better results and good management.

Improving HR practices regarding career development o f employees in organization is

important. No special approaches are taken in this regard at Ufone. They should design a
career counseling model for their employees in which a suitable career ladder should be
designed for employees keeping their competencies and abilities in mind.

A special process particularly designed to ensure proper growth and development of

employees is as following:
I
CAREER DEVELOPMENT PROCESS:

Fig. 7.1
7.1.1 Assessment Phase:
The assessment phase of career development involves activities ranging from self-assessment to
organizationally provided assessment. This kind o f clarification helps employees to further
enhance their career that is realistically obtained and a good fit to determine the weakness they
need to overcome to achieve the^career goals.

71
 1 ^

• Self-assessment:
This approach is used to empower the employees to take control o f their careers. The
major tools used for self- assessment are workbooks and work shops.

Workbooks contain a statement of the organization's policies and procedures regarding

career issues as well as description o f the career paths and the options available in the
organization. The company HR department leads career-planning workshops. Through
these work shops employees get information about career options available in the
organization and also give feed back on their career aspirations and strategy.
Organizations mostly hold these workshops during company time.

Organizational assessment:
Following tools at organizational level are used for career development. These are
assessment centers, psychological testing and performance appraisals.

Assessment centers arc situational exercises such as interviews, in basket exercises, and
business games that are often used to select managerial talent. Assessment centers arc
used for selection as a part o f the carcer development o f employees.

At Ufonc they can use psychological testing to help their employees to better understand
their skills and interests.

Performance appraisal is another source o f valuable career development information

after conducting evaluation of employees. It is the- responsibility o f HR manager to help
employees in order to set their career goals that are consistent with their skills,
knowledge, experience and interests by providing feedback based on observations and
assessment of their abilities, readiness and potential.

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7.1.2 Direction Phase:

The direction phase of career development involves determining the type of career that
employees want and the steps they must take to realize their career goals because they believe
appropriate direction requires an accurate understanding o f one’s current position. Direction
phase is represented by the competencies based on a eyeful assessment o f what is needed in the
profession. Major approaches used to career direction include information services and job
posting.

Information services provide career development information to employees. The most

commonly used information services are skills inventories, career paths and career
resource centers.

Job posting system is a fairly easy and direct way o f providing employees with
information on job openings. The jobs available in an organization are announced on
bulletin board in a company newsletter through a computer system, or over the company
intranet. Such information helps employees determine whether they are qualified for the
position or not. By this they not only motivate employees to maintain and improve their
performance but also tend to reduce.turnover.

7.1.3 Develojiment Phase:

Meeting the requirements necessary to move up in an organization can require a great deal of
employee’s growth and their self development. The development phase involves making
organizations taking actions to create and increase skills o f their employees in order to prepare
them for future job opportunities. Development programs offered by them consist o f tuition
assistance and job rotation.

They offer Tuition assistance ^programs to support their employee’s education and
development. These programs consist of seminars and workshops. Tuition and other costs of

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educational programs may be entirely covered, partially covered or covered contingent upon
adequate performance in the program.

They provide opportunity o f job rotation to their employees so that they acquire wider base of
skills. They believe that broadening job experience can give workers more flexibility to choose
an appropriate career path and also job rotation results in a trained and skilled workforce for the
employer.
This process will enable Ufone management to have continuous check on their employees and
develop them throughout their career. Not only the organization will bear fruit in shape of well
equipped employees but the employees themselves will be more motivated and satisfied with
their work.

7.2 CONCLUSION

fhis project was meant to be a learning experience for all the individuals involved. It not only
tells about the practices of one of the biggest cellular companies o f Pakistan regarding its human
asset, but it also intends to fmd out ways to make their practices better than before. By this way
they come up with an ideal system to deal with the human capital o f the organization.

The study provides deep insight into the human resource management system o f Ufone and gives
each and every detail regarding the basic and main aspects o f it. From the study we have done
we can conclude that human issues are a very important aspect for every organization. In order to
perform above all the competitors the latest technology is not enough but you have to create such
an atmosphere for the people in the organization which motivates them and drives them to use
that technology in the best possible way and gain maximum benefits from it.

Every organization has a reputation in the market because o f which it attracts talented lot from so
many individuals searching for jobs. When any organization treats its people well the employees
are happy ,and they tell it to everybody so the reputation o f that organization improves and that
organization attracts the best possible candidates for the positions vacant. As far as Ufone is
concerned in this matter they hold a good reputation but due to high turnover rate their reputation
is in danger and has great chances of deteriorating so it has to take up immediate measures and

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 i ■T
i

assure this trend of high turnover to decrease and come to at-leasl the industry average of 6-7%.
The suggestions in this regard are to be considered which will certainly help them retain their
employees.

Use of flexi time plans can help employees in multiple manners and will also keep them glued to
the organization as they will easily adjust in the organization. The proper succession planning
will make ernployees more aware o f the opportunities coming their way. It will make them more
focused towards their goal otherwise ambiguity will make them confused, diverting their
attention from work and making them less productive.

Ufone is doing very well in the telecom sector and it will continue to grow as it has many great
plans of expansion and growth. To compliment their success and growth it is necessary that their
employees remain an integral part of their success and celebrate it with the organization. In order
to ensure employee citizenship Ufone Has to make few changes .in their HRM system and come
up with a more employee friendly and focused system.

Perfectly sketched out plans do not succeed until and unless they are implemented in a manner
which makes them easily acceptable. So in order to have happy and hard working employees
Ufone cannot just focus on the best plans and policies but it also has to take into account the
situation and circumstances faced by individuals working for them. Making employees feel
important not only increases their self esteem but also motivates them in the right direction.
This study is aimed to bring improvement and positive changes in the already well planned
human resource management system of Ufone and intends to make it better than all others.

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 ■ %

7.3 APPENDIX AND REFERENCE

76
APPENDIX ‘A ’

ORGANOGRAM President
U-fone

APPENDIX

HUMAN RESOURCE DEPARTMENT

APPENDIX ‘C ’

\
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 Interview Sheet for Executives
This questionnaire is directed towards getting a complete and comprehensive insight into the
human resource management at Ufone and will be o f great help to the project being done
regarding different aspects o f HRM of Ufone.

RECRUITMENT:
Q ] . W hat are your recruitm ent policies?

Q2. W hat steps do you. take in planning the recruitm ent process and how do you indulge in each

step?

SELECTION METHODS:

Q3. W hat selection m ethods do you em ploy at your organization?

Q4. What exact steps do you follow in each o f the methods employed by your organization?
INDUCTION:
Q5. Do you carry out an organized induction process for the new com ers? If yes, then what steps

exactly do you follow ?

Q6. W hat are the advantages o f carrying out this induction?

ROLE OF HR RECRUITMENT:
Q7. W hat are some o f the m ore im portant personnel policies im plem ented at your organization?

RECR UITMENT SOURCES:

\

Q8. W hich source o f H R do you use? How do you determ ine the internal and external supply o f HR?

RECR UITMENT CHANNELS:

Q9. W hat channels o f recruitm ent exist at your organization?

TRAINING SYSTEM:

QIO. H ow would you define the training system at your organization? W hat steps have you taken in
t
designing it? '

O i l - W hat are the different training m ethods used by the organization?

HR DEVELOPMENT:
0 1 2 . Do you believe in HR developm ent? W hat do you expect to achieve out o f it? W hat are your
approaches to it?

EMPLOYEE COMPENSATIONiSi BENEFITS:

0 1 3 . W hat system do you have regarding em ployee com pensation?
Q 14. W hat sort o f pay system do you be offer your em ployees?

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I low do you develop the pay system ?

CAREER DEVELOPMENT:

Q 15. W hat issues do you face on career developm ent? How will you handle them ?

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APPENDIX ‘D ’

Questionnaire for employees

]. Are you satisfied w ith the type o f recruitm ent process follow ed by Ufone?

Option Descriptive equivalent

1 H ighly D issatisfied
2 Dissatisfied
3 M oderate

4 Satisfied

5 \ H ighly Satisfied

2. If not satisfied with the recruitm ent process then w hich aspect do u consider as faulty

am ongst the follow ing?

Option Descriptive equivalent

1 Online testing ^

2 Less advertisem ent

3 . References

4 B iographical data

3. In your opinion w hat is the reason for high em ployee turnover in your organization?

Option Descriptive equivalent

1 lack o f jo b satisfaction
2 low wages
i 3 lack o f encouragem ent

4 rigid w ork hours ^

5 less em pow erm ent

4. Does m anagem ent face difficulty finding proper replacem ent for the vacant position in a time
m anner?

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Option Descriptive equivalent
1 yes
2 no

5. Do em ployees get over burdened w ith the w ork o f the em ployee who recently left the

organization?

Option Descriptive equivalent

1 yes

2 , no

6. Is there a need to develop a proper succession plan in order to fiil up the vacant position as
soon as possible? ' ^

Option Descriptive equivalent

1 yes
2 no
7. Are you satisfied w ith the way the organization carries out its em ployee assessm ent and

developm ent plans?

Option Descriptive equivalent

1 yes

2 no

8. Do you feel that a proper plan can be im plem ented and encouraged in the organization which

will help the organization to develop its em ployees more efficiently?

Option Descriptive equivalent

1 ^ yes
2 no

9. To what extent do you agree that the training sessions announced earlier have better results
and higher m otivation level as com pared to the ones announced few days before
com m encem ent?

81
 Option Descriptive equivalent
1 " H ighly Disagree

2 Disagree

3 • M oderate

4 Agree

5 H ighly Agree

10. Is there a properly established criterion on which em ployees are selected to get training?

Option Descriptive equivalent

1 yes
2 no

11. Are you satisfied w ith the m ethods o f training used in the training program s conducted for

em ployees by Ufone?

Option Descriptive equivalent

1 ^yes

2 no

12. To what extent do you agree that the com pensation package offered by Ufone is satisfying?

Option Descriptive equivalent

1 H ighly Dissatisfied

2 D issatisfied

3^ M oderate
4 Satisfied

5 Highly Satisfied

82
 REFERENCES

Rcscarch Papers:.
1) Mathis, Robert L.. and John H. Jackson (1991), personnel/Human Resource;
Management. 6th ed. West Publishing Company: St. Paul, Minn.
2) Saha, Amnodaya (1989), "Human Factors Behind the Development o f Japanese Product
Quality," International Journal of Quality and Reliability Management 6, 71-80.
3) ‘ Smith, Patricia L. (1991), "Personnel Rx for the Small-Business Owner," HR Magazine
36 (March), 52-54.
4) Rratton, J & Gold, J 2000,' Human Resource Management; Theory and Practice, 2nd edn,
Macmillan Press Ltd, London.
5) Batt, R. and Valcour, P. M. (2003). Human resources practices as predictors of
workfamily outcomes and employee turnover. Industrial Relations, 42(2).
6) Mathis, RJ: & Jackson, JH 2006, Human Resource Management, 11th cdn, Thompson
South-Western, Boston, MA.
7) Holt, David H. (1993), Management Principles and Practices. 3rd ed. Prenticc Hall:
Englewood Cliffs, N J .
8) .Human Resource Management by De Senzo and Robbins (fifth edition)
9) Business Research Methods by Donald R. Cooper and C. Willaim Emory (Fifth Edition)
t -

10) International Human Resource Management (Routledge Global Human Resource

Management Series) by Dennis Briscoe
11) Mathis, Robert L., and John H. Jackson (1991), personnel/Human Resource
Management. 6th ed. West Publishing Company: St. Paul, Minn.
12) Saha, Arunodaya (1989), "Human Factors Behind the Development o f Japanese Product
Quality," International Journal of Quality and Reliability Management 6, 71-80.
13) Smith, Patricia L. (1991), "Personnel Rx for the Small-Business Owner," HR Magazine
36 (March), 52-54.
14) Bratton, J & Gold, J 2000, Human Resource Management: Theory and Practice, 2nd cdn,
Macmillan Press Ltd, London.
15) Batt, R. and Valcour, P. M .. (2003). Human resources practiccs as predictors of
workfamily outcomes and employee turnover. Industrial Relations, 42(2).
16) Mathis; RL & Jackson, JH 2006, Human Resource Management, 11 th edn, I'hompson
South-Western, Boston, MA.
17) Holt, David H. (1993), Management Principles and Practices. 3rd ed. Prentice Hall:
Hnglewood Cliffs, N.J.
URLs And Websites:
18) www.channelnewsasia.com* (July 2010)
19) au.news.yahoo.com (June 2010)
20) http ://en. Wikipedia. org/wikiAJfone(July 2010)
21) http://en.wikipcdia.org/wiki/Ufone#Introduction(July 2010)
22) hltp://en.wikipedia.org/wiki/Ufone#Company_Profile(June 2010)
23) http://en.wikipedia.0 rg/wiki/Uf 0ne#Netw 0 rk_Upgradati0n (July 2010)
24) htlp://en.wikipedia.org/wikiAJfone#Prepaid_Service (July 2010)
25)Ufone: Profile and Outlook - State o f Telecom Industry in Pakistan - Sunday, June
12th,2010
26)http://www.pta.gov.pk(July 2010)
27) http://www.pta.gov.pk/iridex.php?option=com content& task^view&i
(July 2010)
28) http://www.restechco.com/index__low.php?page==about_us(May 2010)
29) hltp://www.restechco.com(July 2010)
30) http://www.ufone.com/about.aspx(July 2010)
j
31) http://WWW.ufone.com/mobile_products.aspx(July 2010)
32) http://www.businessweek.eom/magazine/conterit/05_05/b3918096.htm(June 2010)
33) hUpV/www.businessmonitor.com/telecommunications/pakistan.html(July 2010)

34) http://telecompk.wordpress.com/(July 2010)

35) http://telecompk.wordpress.com/about/(June 2010)

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