Human Resource Management (Internship Report)

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I dedicate this project to my beloved

parents, teachers and friends for keeping

my spirit high and for their love, support

and guidance throughout my life.

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UNIVERSITY OF CENTRAL PUNJAB MBA – 7 L1F07MBAM2175

ACKNOWLEDGEMENT

All Praise to Allah. First and foremost I thank Allah, the Generous, for having finally made this effort a reality. I praise Him because if it were not for His Graciousness, it would never materialize.

I’m extremely grateful to my course instructor’s entire course instructor. who spent a lot of valuable time with me and gave all the related information and expertise very generously about related courses.

I thankful to UFONE PTML and its employees who provide the platform to complete my internship successfully, specially thanks to Sr. Manager HR Abdul Rehman Fiasal, Astt. Manager HR Farooq Naeem Sofi, Sr. HR Ex. Waheed Anwar, HR Ex. Raza Hussain, and HR Ex. Mohammad Shawzib.

At last I, express our deepest gratitude to all those who contributed directly or indirectly to bring this report to this final format, because I would never have been able to achieve this by my self.

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UNIVERSITY OF CENTRAL PUNJAB MBA – 7 L1F07MBAM2175 3.2 COMPETITOR ANALYSIS ... 16 3.2.1 Major Competitor ... 16 3.2.1.1 Mobilink ... 17 3.2.1.2 Telenor Pakistan ... 17 3.2.1.3 Warid Telecom ... 18 3.2.1.4 Paktel ... 18 3.2.2 Market Shares ... 18 3.2.3 Their Goals ... 19 3.2.3.1 Mobilink Goals ... 19 3.2.3.2 Telenor Goals ... 19

3.2.3.3 Warid Telecom Goals ... 19

3.2.3.4 Paktel Goals ... 19

3.2.4 Their Strategies ... 19

3.2.4.1 Mobilink Strategy ... 19

3.2.4.2 Telenor Strategy ... 19

3.2.4.3 Warid Telecom Strategy ... 20

3.2.4.4 Paktel Strategy ... 20

3.3 TECHNOLOGY ANALYSIS ... 20

3.3.1 Technical Methods That Affect The Industry ... 20

3.3.1.1 CDMA Technology ... 20

3.3.2 Innovations ... 21

4 INTERNSHIP DEPARTMENT ... 21

4.1 DEPARTMENT WORKED DURING INTERNSHIP ... 21

4.1.1 Contribution Made Or Responsibilities ... 21

4.2 HUMAN RESOURCE DEPARTMENT AT UFONE ... 22

4.2.1 Goals Of Ufone HR Department ... 24

4.2.2 Responsibilities of Ufone HR Department ... 24

4.2.3 Directional Strategy Of Ufone ... 25

5 IDENTIFICATION OF A MAIN PROBLEM ... 25

5.1 ANALYSIS PROBLEM ... 25

5.2 RECRUITMENT PROBLEM ... 26

5.3 PAYROLL PROBLEM ... 26

6 FINDINGS (SWOT ANALYSIS) ... 26

7 CONCLUSION & RECOMMENDATION ... 28

8 BIBLIOGRAPHY ... 30

APPENDIX – A: EVALUATION SHEET ... 31

APPENDIX – B: EXPERIENCE LETTER ... 32

APPENDIX – C: JOINING LETTER ... 33

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EXECUTIVE SUMMARY

This project has been undertaken in order to highlight the Human Resource Practices of “Ufone”. It’s all about YOU its all about “Ufone”, a company very highly spoken of these days. A company paying more attention to its customer’s delights rather then the customer’s satisfaction. Ufone is a company starting from scratch and has shown utmost performance in the last four years. Ufone owes its success to its employees believing that providing employees with job satisfaction, motivates them to work hard and provide better results. Proper planning is Ufone’s strongest point; all the products that they have launched so far are backed by wise strategies with proper market research and massive advertisement campaigns. Decisions are taken at top level with some participation from the lower levels showing that they do comprehend the worth of Group decision-making. However goal setting is a procedure dedicated to only the top management. Working on newer technologies is a specialty of ufone

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1 INTRODUCTION

1.1 Background of Telecom Industry In Pakistan

Today information has become the most vibrant force and factor of production in the new economy. The foundation of the information infrastructure is the telecom system. Initially, the telecom industry was monopoly. The world started to see an initiation of reform in this sector from early eighties of previous century. In Pakistan the liberalization of telecom sector started in early 1990s. The real defining moment was the passage of Telecom Re-organization Act of 1996, which established the Pakistan Telecom Authority (PTA) as independent regulator of the sector and set timeframe for ending the PTCL monopoly. This act paved the path for liberalization of the telecom sector in line with the global trends and Pakistan’s commitment to the international treaties like WTO.

With the deregulation of telecommunications sector in Pakistan in early 90s, Ministry of Communications awarded two licenses to begin cellular operations based on AMPS technology. Paktel and Instaphone were formed as joint venture between foreign and local partners. Instaphone initiated its services in 1990, while Paktel started its operations in 1992. Both the companies were using AMPS technology. A year later, a third license was awarded to the Saif Group that led to the inception of Mobilink that started its services in 1994. It was the first company that introduced GSM technology in Pakistan. In 1995, the Cellular Industry suffered a major blow with the closure of operations in Karachi, the largest market, but the closure sanction was lifted after almost two years. On January 19th_{, 2001, PTCL entered the}

cellular market with its on operator based on GSM technology under the brand name of Ufone.

In April 2004 Pakistan Telecommunication authority (PTA) awarded two new licenses under an open auction process for a fee of $291 million. These were purchased by two companies namely, Warid telecom and Telenor. Telenor started its operations on March 15, 2005. Al-Warid started its operations on 23rd_{May 2005.}

The cellular industry had been offering attractive rewards and pays since the beginning. However, with the introduction of the two new companies Telenor and Al Warid, the pays and rewards have taken a rise. The two new companies especially Telenor have been able to attract highly qualified workers of two main companies namely Ufone and Mobilink by offering them higher pays and rewards. Keeping this in view, the Mobilink and Ufone had to revise their pay plans and rewards. Currently, there is tough competition in the cellular industry and all the companies are trying hard to attract, retain and motivate their employees by offering them attractive pay packages.

1.2 Industry Background At International Level

The mobile phone industry experienced better than expected sales, as worldwide mobile phone unit sales total 112.7 million units, an 18% increase from the first quarter of 2005. The mobile handset industry rode the crest of a wave of robust replacement demand to realize record levels of sales to end-users for the first quarter. Significant demand was recorded across all geographical regions during the quarter, and annualized sales trends based on these

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results suggests the market could be on pace for a double-digit rate increase for the full calendar year.

1.3 Company Background

1.3.1 History of Ufone

Ufone PTML is a wholly owned subsidiary of PTCL established to operate cellular telephony. The company commenced its operations, under the brand name of Ufone, from Islamabad on January 29, 2001

During the year, as a consequence of PTCL’s privatization, 26% of its shares were acquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been handed over to Etisalat. During the year July 2005 to June 2006, Ufone continued on the path to success. The Company further expanded its coverage and has added new cities and highways. Ufone has network coverage in more than 750 cities, towns and across all major highways of the country.

During the year Ufone successfully completed the network expansion of 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 Rs. 27 billion. During the year Ufone adopted the policy of simplified tariffs with no hidden charges, which resulted in positive impacts on the usage trends of subscribers as well as total subscriber base, which has increased from 2,579 k in June 2005 to 7,487 k in June 2006. Ufone currently caters for International Roaming to more than 200 live operators across 121 countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal, Thailand, Cyprus, Bangladesh, Uzbekistan, Tunisia and Kuwait with lowest rates, featuring no security deposit and activation charges. GPRS Roaming facility is available with more than 90 Live Operators across 66 countries. The company has also been awarded a new License for providing cellular services in Azad Jammu & Kashmir and Northern Areas.

1.3.2 Mission Statement

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

1.3.3 Vision Statement

In order to evolve with our customers and to keep pace with your needs, we rejuvenated and revamped our image by changing our visual identity. At Ufone we understand the value of words and the need to communicate effectively and efficiently at all levels of society, which is why our primary focus is on U, our valued customers bring strength to our company.

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With a fresher look than is accepted and appreciated across the board by people of all ages, we aim to connect with you and provide you state of the art services. No matter who you are, where you are, what you want to say, how you want to say it or how you feel, you are our focus. Because at Ufone, it’s all about U,

2 COMPANY ANALYSIS

2.1 Operational Analysis

When a company wants to compete in innovation, it needs to maximize flexibility. Flexibility is maximized by aggregating work into larger, holistic pieces that are executed by teams of higher wages, high skilled workers. Giving the units their own support systems and decision-making authority to take advantage of local opportunities in regional or specialized product markets also enhances flexibility.

Keeping in view of all these factors the structure of Ufone is designed i.e. the overall Structure of the Ufone is Divisional (More flexible and innovative). Mainly Ufone has four regions and within those regions the structure is functional .The decision making authority is centralized at the top but within the regions it is decentralized i.e. regional heads have to inform top management before making any decision

Board Of Directors CEO Project Director Marketing & Sales Finance Information System Customer Care Engineering Quality Assurance Business Unit Khi/Lhr/Fsd HR & Admin 4

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This is what Ufone looks from the organizational hierarchy point of view. There are eight different departments each headed by a Project Director. They report directly to the CEO. There are four BU (Business Unit) each Project Director is responsible for these eight divisions. BUs are divided geographically into three divisions

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BU North (Peshawar to Jehlum, including Islamabad)

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BU Central-1 (Gujranwala till Sialkot)

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BU Central-2 (Multan till Rahim Yar Khan)



BUM South (Sindh and Balochistan)

In order to give a jump-start to the company, a comprehensive initiation plan has been made along with aggressive customer acquisition, care and retention strategies. Ufone has the best integration of eight departments each project director.

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Finance

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Engineering

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Customer Care

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Marketing & Sales

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Human Resource

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Busines Units Khi/Lhr/Fsd

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Information Systems

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Quality Assurance

Provision of quality service to the customers is of utmost importance for the progress of any service-based company. At Ufone the management is mindful of the same and has been constantly endeavoring to enhance the existing facilities. Therefore operations at Ufone are all planned and carried out in such a way so as to maximize operational efficiency and customer satisfaction.

Although it is the subsidiary of the Pakistan Telecom Company Limited (PTCL), Ufone carries out its operations autonomously under the license of Pakistan Telecom Mobiles Limited (PTML). The company head office is established in Islamabad (F-7 Markaz), which serves as the center for all its strategic activities.

2.1.1 Operating Performance

HR hires the best people to work and adjust them into these four departments according to their specialization. HR conducting its best practices to recruit, train and motivate their employees.

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Ufone’s operational performance has been very encouraging. Despite the stiff competition in Pakistan telecom market which has led to reduction of 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, as compared to last year.

2.2 Financial Analysis

Ufone has over the last six and a half years made huge investments in the national economy. PTML has successfully been able to build upon its excellent financial results from the previous year. During the year Ufone successfully completed the network expansion of 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 Rs. 27 billion.

Since Ufone is an SBU of PTCL therefore they are not authorized to disclose their profits separately. For the same reason PTCL’s financial statement incorporates the profits earned through its mobile operations and the figure are displayed in their annual reports.

2.2.1 Ratio Analysis of Ufone

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Ufone current ratio in 2006 was 0.30

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Asset test ratio in 2006 was 0.31

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Ufone debt to equity ration inn 2006 was 0.35

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Ufone debt to total assets ration in 2006 was 0.64

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Ufone interest covering ratio in 2006 was 16.3

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Their receivable turnover ration in 2006 was 07.07 times.

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Inventory turnover ratio in year 2006 was 18.6 times.

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Total assets turnover ratio in year 2006 was 0.32

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Net profit margin in 2006 was 28.4%

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Ufone return on investment in 2006 was 10%

2.2.2 Future Financial Plans

Keeping in view the growth potential of 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

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existing cities, Ufone has finalized a huge network expansion contract amounting to about USD 550 million, which will enhance the subscribers’ capacity by 10 million. This is the largest ever expansion project of Ufone.

A strong focus will be on maintaining high quality of service, which is always a benchmark 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.

2.3 Human Resource Assessment At Ufone

Qualified professionals from outside have been hired/are in the process of being hired, primarily to adopt customer-oriented approach with a view to strengthening customers' loyalty as well as to increase market share.

Many monitory and non-monitory incentives are provided to the employees for the purpose of, motivation, and retention. Company perks, paid leaves (in certain cases) and medical benefits are a few to mention. In spite of these measures employee retention is quite low at Ufone. A lot of new employees, both at managerial as well as non-managerial levels are found leaving the organization after just a few months of joining. Similarly new employees are hired to take their places.

One of the reasons lies in the fact that although the company is providing its members with a lot of benefits, the work load on them is very high. Employees work for longer than just 9 to 5:30 (the official work timings). Sometimes even staying for as long as 10 at night - especially during a busy season (year end etc) or at the launch of a new campaign. Due to this many employees find themselves unable to create a balance between their personal and professional life and thus avail the first better opportunity out!

Also since the telecom industry is still at its growth stage and a recent entrance of three new telecom service providers in the local market, many experienced employees find themselves with more and better job opportunities

2.3.1 Recruitment At Ufone

Before recruiting a new employee, management checks whether there is a need to hire a new employee for that particular job or whether it can be incorporated into an existing employees job. Recruitment in Ufone may be of internal or external nature.

2.3.1.1 Internal Recruitment

In the case of internal recruitment people from within the organization are promoted to fill the vacant vacancy. The HR department and the relevant department in which the vacancy exists, analyze whether there an employee within the organization exists, who most appropriately meets the requirements of the particular vacancy. If more then one employee is eligible for the vacancy; then that employee is chosen who has the most outstanding record. After the promotion the employee may be sent for further training. The effect of internal vacancy is that it motivates the employee to perform their best and produce maximum output. It also creates a healthy competition amongst the employees. The hiring from within may

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have a trickle down effect i.e. the opportunities spring not just from the first vacancy but from the vacancy created when a person in the company fills that vacancy.

2.3.1.2 External Recruitment

If the organization feels that none of their current employees can fill out the new vacancy then they hire from external sources. In this case the human resource management considers other departments in the organization that might be interested 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 of expert panelists is then selected from each relevant department to interview applicants

2.3.1.3 Direct Applicants

Ufone maintains a data base system i.e. HRMS (Human resource management system) for its internal employees as well as the employees which they will recruit in near future. In some case certain some people just drop their CV’s at the head office. And whenever there is an opening or a vacancy occurs, the organization may call them for an interview.

2.3.1.4 Referrals

By advertising a post internally Ufone gains an added benefit, which is; the current employees may pass the information on to any interested friends and relations. Word of mouth is also a valuable recruitment method for them and they draw on all appropriate contacts they have

2.3.1.5 Advertisements

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

The HR management has hired the services of Interflow, an advertising agency, to propagate their service and company for them. They are also using the services of a web designer, Eveready media, to post the advertisement of the company on the Internet.

2.3.1.6 Private Employment Agency

The private Recruiting agencies collect information from unemployed as well as employed people about their skills and experiences. These agencies attempt to find some one suitable using its computerized inventory database of suitable individuals. These agencies charge Ufone for the referrals.

2.3.1.7 Through Vendors (Outsourcing)

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Ufone also do outsourcing for the purpose of recruitment they hire firm, which will provide employee Ufone to work in the organization, but the employee will remain employee of that firm not Ufone, and this is the most common method followed by most of organization these days. Lower management at Ufone is comes through outsourcing.

2.3.1.8 Electronic Recruiting

The growth of information superhighway has opened up new vistas for organizations trying to recruit talent. Ufone is make full fledge use of this new technology, and it uses its own web page to advertise for new job openings.

Another aspect of the electronic recruiting is that individuals don’t have to physically go to the head office to drop their CV’s. They now can simply use the e-CV format provided by Ufone on its home page. The e-CV is then transferred to the relevant database or the HR department.

2.3.2 Recruitment Procedure

The HR management decides on the length of the short-list, which 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 of time, they get the help of other staff, supervisors and managers in the organization. Apart from the question of time, they do this to get second opinions. They look out for the following when reading an application:

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How well-matched is the candidate to the requirements

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Any unexplained employment gaps

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The quality of presentation

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How tailored the reply is to the particular job and Ufone as an organization.

2.3.2.1 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 of potential, future applicants. Those that match the job are called over to undertake an on-line evaluation test.

2.3.2.2 Scheduling Interview

The candidates that pass the on-line evaluation test are then called for interviews. A date and a time are arranged and the candidate appears for the interview. The questions of this interview are designed especially for gauging the personality and ability of the candidate.

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

2.4 Marketing Analysis

Today, Ufone is the affordable mobile service option available in the local market with all facilities available at affordable prices. Right now Ufone commercials are beings aired in 15 different TV dramas. These television commercials have received a lot of appreciation from both their valued customers and advertising industry professionals in Pakistan. Ufone, with Pakistan's largest advertising company Interflow Communications Private Limited, has always tried to deliver truthful and interesting advertising to its viewers.

Ufone invests heavily on its advertising budget and its commercials are not only aired on TV and radio but are also printed in the leading newspapers and magazines of the country. Huge billboards and banners have also been put up at eye catching locations in different cities, advertising the latest new services being offered. It also participates in sponsoring various theatre and stage plays in various cities along with live rock concerts held across the country. Cricket matches are another area in which Ufone ads are commonly viewed. It even allows its subscribers to receive wicket alerts and download animated video clips of falling wickets and via its MMS service.

At times Ufone has even restored to aggressive marketing strategy in order to gain a larger market share. They are using dumping strategy to gain maximum market.

2.4.1 Marketing Department

Their Marketing department consists of following four units.

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Brand Marketing

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Value Added Services (VAS)

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International Roaming

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Marketing Operations. Marketing Brand Marketing Marketing Operations International Roaming VAS 10

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2.4.1.1 Brand Marketing Department

Brand marketing department of Ufone deals with the advertisement agencies, all the ad’s shootings, animation, posters, billboards, TV ads, radio newspaper etc. They Create ideas ot hire some firm to make their up coming promotion.

2.4.1.2 Value Added Service (VAS) Department

Value added service department deals with the different packages related with the ufone connection, they do research and market analysis to find out customer needs and then design vale added package for those customer like for example these days most famous value added package is 1000 SMS is Rs 75 which can be activated by dialing 777 from the Ufone prepaid connection.

Some of the features offered on Prepay are as follows:

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Voice Mail: Ufone Voice mail lets you receive and store messages when you are unable to attend your calls; if your phone is switched off, not responding, busy or out of coverage.

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SMS: With Ufone's Short Messaging Service you can send unlimited messages to your friends, loved ones and colleagues

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GPRS: Ufone GPRS allows you to check your e-mails, chat with friends or browse the internet from your mobile phone

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MMS: MMS allows you to send photographs or video clips to an email or another Ufone. International SMS:

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International SMS: You can now send unlimited messages to 449 operators in over 169 countries all over the world at a standard SMS rate.

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Downloads: Ufone provides a wide range of downloads for your mobile in form of Java Games picture messages, color wallpapers, ring tones, logos etc.

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International Roaming department deals with people who went across the country boarder with Ufone SIM with international roaming activated. I more frequently related with the people who went for Umrah and Hajj.

2.4.1.4 Marketing Operations

Marketing Operations department at Ufone deals with all non-electronic activities like billboards, outdoor, sponsorship, event-sponsorship, franchise out-wall and in-wall monitoring

3 ENVIRONMENTAL ANALYSES

The environment of any organization plays a very vital role in bringing out the inner qualities and talents of people. On entering the Ufone office, what strikes a person most is their atmosphere and decor. The atmosphere of the Ufone head office is a very pleasant one, with a large impressive lobby welcoming the distinguish customers. The décor includes glass and steel walls. This communicates that Ufone has effectively dealt with its most toughest and delicate issues with care.

To make the atmosphere more pleasant, a touch of greenery has been added, to communicate that Ufone is an eco-friendly organization. The security check on entering the majestic hall gives the customer a sense of security. It requires the person visiting the office to sign an entry form and wear a badge.

All these things made the office informally communicate that it welcomed customers and guests, but the most important element that makes this backdrop complete is the employees, all formally dressed, communicating that the organization strictly adheres to dress code.

3.1 Industry & Market Analysis

All mobile phone operators in Pakistan have two basic types of connections i.e.

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Prepaid

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Post paid

3.1.1 Major Product Lines & Market Segments

3.1.1.1 Ufone Product Lines

There are two basic products of Ufone “Ufone Prepaid” and “Ufone Postpay”. Both pf these products are available at their franchise for public.

Ufone Prepaid

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Ufone Prepaid is with a wide range of products and features your Ufone Prepay connection is a complete communication solution that offers you SMS, GPRS, MMS, Call Features, International Roaming and a variety of amazing Mobile Products

Short Messaging Service (SMS) & International SMS

You can send and receive text messages up to 160 characters per SMS. If your handset supports more than 160 characters, one SMS will be sent for every 160 characters. You can exchange text message both nationwide & worldwide.

Caller Line Identification (CLI)

You can find out the caller’s number automatically before answering the phone as it is displayed on your handset.

Call Waiting

Call Waiting allows you to receive calls while in conversation with another caller. To activate your call waiting please call 333.

Voice Mail

Voice mail lets you receive and store messages when you are unable to attend your calls; if your phone is switched off, busy or out of coverage. To activate your voice mails please call 333. To retrieve your voice messages please dial 191. You can enjoy message storage capacity of 10 messages.

Phonebook Saver

Lost or changed your phone and worried about your contacts? With Phonebook Saver, now you can retrieve all your contact numbers instantly whenever you lose them. So go on and create your personal Phonebook Saver account and never lose a contact again.

GPRS enabled MMS, WAP & Internet Access

With GPRS (General Packet Radio System) you can access emails, browse the internet, send and receive multimedia messages from your handset.

Internet Access

You can access the internet by simply entering the desired website address on your phone’s internet browser

MMS

This service allows you to send and receive pictures, sound & video clips. Emails: you can access your office emails and internet based emails using the GPRS enabled handset.

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UNIVERSITY OF CENTRAL PUNJAB MBA – 7 L1F07MBAM2175 Prepay IR

Now roam in various important destinations worldwide with the most affordable and economical tariff offering. For details please call 333 from your Ufone.

Ufone Postpay

Ufone Postpay is a brand that keeps up with you, understanding your drive for victory in the business arena and your sense of belonging in your personal life. On Ufone postpaid they aim at providing you with the most superior mobile phone services, widest quality network & best customer services for you on your journey to success. It have following features;

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Special discounts: on a range of talk plans you can choose from.

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Virtual Private Network (VPN): Your own private network within the Ufone network.

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GPRS: Internet Access on your GPRS enabled phone & mobile office so you can be in touch with business while you are out and about.

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Umail: To enjoy wireless email products.

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International Roaming: in countless destinations, keeping you connected worldwide.

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Exclusive Customer Care: with personal service to help set up your phone to suit your needs.

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Exclusive Rewards: that you will receive on using your Postpay connection.

3.1.1.2 Mobilink Product Lines

There are two basic products of Mobilink they are given as following;

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Jazz

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Indigo

These products have following VAS characteristics.

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SMS

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Web-SMS Chat

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

TV- SMS Service

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On Call Services

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Dedication Service

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Missed Calls Alerts

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Mobile Banking

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Fun Messaging

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Payment Solutions

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Fax & Data

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G-Mail

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Stock Watch

3.1.1.3 Telenor Product Lines

There are two basic products of Telenor “Telenor Prepaid” and “Telenor Postpaid”. Both of these products are available at their franchise for public.

Telenor Prepaid

Telenor has following two packages;

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Telenor Talkshawk Har Second

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Telenor Talkshawk 30 Second

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Telenor Talkshawk Azadi

Telenor Postpaid

Telenor Postpaid connection is the billing package with lots of value added services for their user.

GPRS: Which gives you high speed WAP on your handset and Internet connectivity anytime, anywhere

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Downloads: Now you can select and receive the latest ring tones, pictures, background themes and games

WAP: Keeps you up to date with the latest happenings in news, entertainment, sport, downloads and much more

3.1.1.4 Warid Product Lines

There are two basic products of Warid Telecom they are given as following;

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Zem Prepaid

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Zahi Postpaid

3.1.1.5 Paktel Product Lines

There are two basic products of Paktel they are given as following;

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GSM Prepaid

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GSM Postpaid

3.1.2 Growth Rate of Telecom Industry

The mobile phone, an extension of the information technology, has assumed the role of a magic wand in today's life style. The fascinating options offered by this technology at both ends of the users (dialing or receiving) while in movement give a sense of freedom to the people. This freedom of movement perhaps the major reason for phenomenal spread of this little wonder around the globe.

Unlike the landline connections, the growth of mobile phones has smashed all bureaucratic hurdles of the landline phone connections. Market experts are of the opinion that call charges are still on higher side which are hampering further growth of this sector. They hope that further growth of this industry calls for reduction in call charges, as a large market was still untapped in Pakistan due to cost factor.

However, the overwhelming growth of cellular phones in a poor country like Pakistan is a win-win situation for investors in this sector.

3.2 Competitor Analysis

3.2.1 Major Competitor

There are four major mobile telecommunication competitors of Ufone PTML and they are given as followoing;

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Mobilink

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

Telenor



Waird Telcom



Paktel

3.2.1.1 Mobilink

Mobilink GSM is the market leader in providing state-of-the-art communications solutions to more than 11,000,000 (eleven million) people in Pakistan. Being the first cellular service provider in Pakistan to operate on a 100% digital GSM technology.

Mobilink offers tariff plans that are exclusively designed to cater to the communication needs of a diverse group of people, taking into account occasional users to businessmen.

In addition to providing advanced voice communication services, Mobilink also offers a number of value added services to its valued subscribers. Keeping in mind customers' convenience, they have also bundled mobile handsets, sold either independently or bundled in Get Set Go Pack.

Mobilink GSM started operations in the year 1994, from then on it has shown enormous growth. At the time when it entered the market it was a small player in the cellular market of Pakistan it is now the market leader both in terms of growth as well as having the largest subscriber base in Pakistan.

3.2.1.2 Telenor Pakistan

Telenor Pakistan launched its operations in March 2005 as the single largest direct European investment in Pakistan, setting precedence for further foreign investments in the telecom sector. In a little over two years, they have grown to become a leading telecom operator in the country. In fiscal year 2006, they achieved nearly 200% growth in our subscriber base – the highest in the industry by a wide margin.

They are the fastest growing mobile networks in the country, with coverage reaching deep into many of the remotest areas of Pakistan. In the most difficult terrains of the country, from the hilly northern areas to the sprawling deserts in the south, at times they are the only

operator connecting the previously unconnected.

They are keeping ahead by investing heavily in infrastructure expansion. With USD1 billion already invested, they have extended agreements with our vendors for network expansion and services until 2009. The agreements, with a potential to result in USD750 million worth of orders from Telenor Pakistan, are some of the biggest of their kind in the industry.

They are spread across Pakistan, creating 2,200 direct and 20,000-plus indirect employment opportunities. They have a network of 15 company-owned sales and service centers, more than 200 franchisees and some 100,000 retail outlets

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3.2.1.3 Warid Telecom

Warid Telecom takes pride in being backed by the Abu Dhabi Group, one of the largest groups in the Middle East and the single largest foreign investor group in Pakistan. It has a diversified business interest in the institutions that have enjoyed commercial success as a result of its strong financial resources and extensive management expertise.

Warid Pakistan launched its services in May 2005. Within 80 days of launch Warid Pakistan claims to have attracted more than 1 million. users. According to Pakistan Telecommunication Authority, currently Warid Telecom has more then 10 millions subscribers in Pakistan. And is ranked as the fourth largest operator in Pakistan. Warid Pakistan claims it has the largest "post-paid" subscriber base.

3.2.1.4 Paktel

Paktel started its commercial operations in Pakistan in November 1990 as the pioneer of Cellular telephony with an AMPS network which was converted to TDMA (Digital) in 2003. Due to innovation in the sector (primarily in Europe), GSM quickly gained popularity all over the world and became the technology of choice leaving AMPS/TDMA far behind.

Paktel finally decided to convert to GSM on October 26th 2004 with the launch of 31 cities. The current coverage footprint consists of 341 cities.

Paktel’s principal shareholder was Millicom Pakistan B.V, which held 98.86% equity of Paktel. Millicom Pakistan B.V. was a 100% owned subsidiary of Millicom International Cellular S.A. Millicom is a global telecommunications operator with ventures in 16 countries worldwide including countries in Latin America, Asia and Africa.

On 13th November 2006 Millicom announced that it planned to exit from Pakistan due to its inability to generate returns on investment in Paktel at the levels required by Millicom.

On Feb 13th 2007 Millicom announced that it had completed the sale of its 88.86 per cent shareholding in Paktel Limited to China Mobile Communications Corporation which finalized Millicom’s exit from Pakistan. China Mobile has aggressive plans for Pakistan and this will be a new beginning for Paktel.

3.2.2 Market Shares

According the the results of research on market shre of Pakistan’s mobile companies we have following data.



Ufone 21%

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

Mobilink 49%



Telenor 11%



Waird Telecom 14%



Paktel 5%

3.2.3 Their Goals

3.2.3.1 Mobilink Goals

Mobilink’s goal is to increase ARPU (Average Revenue per Unit). Penetrate into the markets by product and pricing strategies. It started with image positioning product but now they are getting into masses.

3.2.3.2 Telenor Goals

Instaphone have unique technology positioning. Telenor is targeting modern generation. They have also heavily invested in advertising.

3.2.3.3 Warid Telecom Goals

Capture the maximum market strength by penetration and provide coverage all over the country accordingly.

3.2.3.4 Paktel Goals

Paktel has also a low price positioning. But its customers are rather confused. They have undercut their prices, specially prepaid will be positioned as low.

3.2.4 Their Strategies

3.2.4.1 Mobilink Strategy

Mobilnk believes in an Extensive and Intensive distribution Strategy.

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Telenor's previous activities in Asia have focused on the development of mobile networks from scratch, and so the current activity is a continuation of their previous successful strategy

3.2.4.3 Warid Telecom Strategy

They believes in expending the network at low price strategy.

3.2.4.4 Paktel Strategy

Their strategy is innovation and technological edge.

3.3 Technology Analysis

Mobile users tend to associate service access and availability with their handset devices rather than their locations or service providers. So as long as they have their device with them customers feel they should be able to use the same services they use at home wherever they are in the world. And over the years GSM operators have developed the network, service, inter-working and billing capabilities to satisfy such expectations. Roaming is an advantage the GSM community must continue to leverage with the development of enhanced data services and the roll out of next generation networks.

3.3.1 Technical Methods That Affect The Industry

The choice of technology is important in this industry because it can provide the operator with product differentiation in a crowded market. Ufone is the technology leader with GSM and GPRS infrastructure.

For any operator, in selecting GSM technology, there are two routes to follow. Either start as a technology leader with large investments in GSM / GPRS / EDGE technology or start a phased roll out and adopt a “build as they come” approach, using infrastructure sharing and roaming arrangements to provide coverage to its users. The first approach allows the operator to charge a price premium and rollout services on top of its higher speed network. The second approach is accompanied with a price discount strategy capturing the low-end market segment in the initial phase and moving on later to the higher margin customers.

3.3.1.1 CDMA Technology

If an operator selects CDMA technology, it might have a couple of advantages. At this time, services offered on the CDMA networks in US, Japan and Australia are much faster as compared to the GSM / GPRS /EDGE standard. Another benefit for CDMA is the enhanced network capacity and spectral efficiency in the CDMA network as compared to a GSM / GPRS network and the availability of CDMA EVDO high-speed data infrastructure. If an operator wants to roll out a CDMA network, the commitment will be much higher in terms of initial capital expenditure, since a nation-wide network would be required to launch service and infrastructure sharing or roaming would not be possible with existing GSM operators. On the other hand, for a GSM operator, the initial investment can be much less if roaming and infrastructure sharing is to be used. However, in the long term, there will be no product differentiation between similar GSM networks except marketing and price competition. For 20

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a GSM based operator in the Pakistani market, there is less risk and less return while for a new CDMA operator there is higher risk and financial commitment but it also offers a probability of higher returns in the future.

3.3.2 Innovations

Using its GPRS enabled network, Ufone launched innovative services, and mobile applications such as games, video clips, etc, and introduce MMS multimedia messaging. The cellular technology is growing at a fast pace. Each year a new innovation is rolled out leaving the old ones obsolete. Some of these recent innovations, which are currently being used in Pakistan, are stated below;



Short Message Service (SMS)



Multimedia Messaging Service (MMS)



General Packet Radio Service (GPRS)



Wireless Application Protocol (WAP)



3rd_{Generation General Packet Radio Service (3GPRS)}



Enhanced Data Rates for Global Evolution (EDGE) Technology

4 INTERNSHIP DEPARTMENT

4.1 Department Worked During Internship

Working in the Human Resource Department (Operations) of best cellular and a well-reputed organization was an opportunity in itself for me.

The idea of internship before formally joining any organization is to enhance ones interpersonal skills, confidence, to gain a sense of responsibility and to acquaint oneself with the overall office environment of an organization.

This period was a chance to learn the basic office operations, policy and procedure, recruiting and selection, orientation programs, training preparations meeting the deadlines, submission of projects, interactions with peers and superiors. Fortunately it was a fair chance not only to learn and overcome the shortcomings not only by the guidance of the colleagues but also by the diversity of nature of interactions.

4.1.1 Contribution Made Or Responsibilities

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

Providing HR assistance to the department and coordinating with other departments, when required.



Developing of probation report of contractual employees.



Preparing expense and medical claims report for the payroll.



Assisting in monthly payroll, and preparing the reports.



Completed internal audit for contractual employees and conducted meal survey.



Maintaining the database for new hiring, transferring, promoting and firing of employee. Filing and maintaining the records of all documentation and information.

4.2 Human Resource Department At Ufone

There are three Sub units of Human Resource Department at Ufone which are given as following;



Training & Development



HR Operations



Outsource Operation

The above 3 sub depts. Do the following tasks;



Recruitment.



Policy & Procedures Development.

HR Department Training & Development Outsource Operation HR Operations 22

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

Employees Data Management.



Employee Benefit & Compensation.



Training & Development.



Employee Motivation



Retention of Employees



Career Planning/ Succession Planning



Employee Relations/ Communication



Employee Awards



Employee Events Management



Medical & Life Insurance

The senior manager and the assistant manager are responsible for the training and development functions of the organization. They take main decisions regarding the final hiring of the employees and the pay and rewards packages allocated to them. They are also responsible for the establishing of the performance evaluation criteria. The manager and the executives are responsible for the operations. But besides taking care of the day-to-day operations, they perform the function of recruiting and staffing as well. Conducting the job analysis for each job is also the responsibility of the manager and his executives.

Senior Manager HR

HR Manager

Assistant Manager HR

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4.2.1 Goals Of Ufone HR Department



Policy initiation and formulation.



Advice (on personnel policy, labor agreement, needs and welfare of company and employee development).



Service (employment, training, development benefits functions, recruiting, interviewing, testing job applicants, maintenance of adequate employee records etc.).



Control (monitoring performance, retention and conformance of other departments to personnel policy, procedures and practices).

4.2.2 Responsibilities of Ufone HR Department



Employment & recruiting (Interviewing, recruiting, selection and induction into the organization).



Transfer, Promotion, Layoff (checking conformity of skills with new department in case of transfer).



Training and Development (Orientation, coaching, performance management skill training both for technical and non technical personals, counseling, job rotation.).



Compensation Administration (designing and installing job evaluation program, pay structure, analyzing jobs and their dollar-worth, maintaining suitable records, wage and salary surveys of the labor market).



Health and Safety (health programs, safety programs, Medical facility).



Employee relations (wages, rates of pay, hours of work, conditions of employment, negotiation, contract interpretation and administration, grievance handling, allocation of overtime).



Benefits and Services (insurance programs, Transportation facility, sick leave pay plans, loan funds, LFA salary, Yearly bonus programs along with special bonuses for achieving high targets).

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

Organization Planning (developing concept of company as a structure or system).



Organization Development (increase level of trust and supportiveness among people in the organization, enhance interpersonal skills, make communication more open and direct, directly confront problems, tap the knowledge of all who can contribute to problem solutions wherever they may in the organization).



Human Resource Planning (right number of qualified persons available at the proper times, performing jobs that are useful to the organization and which provide satisfaction for the individuals involved, goals and plans of 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 of 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 of working life, employee attitudes and motivation, predicting success in management and organizational relationships).



Personnel Information Systems (Maintaining HRIS i.e. human Resource Information system, HR planning, skills inventories, employee benefits analysis and productivity studies).

4.2.3 Directional Strategy Of Ufone

Ufone is currently following “Internal growth strategy”, as it is the second largest cellular company operating in Pakistan. The company is mainly focusing on market development i.e. they are expanding their network to capture large market share Along with that they are also doing product development for which training will be of a more technical nature, as well as focusing on interpersonal skills such as team building.

5 IDENTIFICATION OF A MAIN PROBLEM

5.1 Analysis Problem

As I had analyzed the planning process of Ufone, I come to the point that the involvement of top management and the relevant departments in the planning process is a very healthy sign but I have found few discrepancies in that system as well.



Proper forecasting is lacking in this organization from which they cant predict supply and demand for various of human resources to predict areas within the organization where there will be future labor shortage or surpluses hence by not implementing

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complete forecasting system they are unable to predict the areas where there are surpluses specially in the customer service.



As marketing is there core competence they fail to get the best candidate at times because of their weak forecasting system.



No overtime facility is given to the permanent staff by which they get de motivated due to their work overload. No plans have yet been implemented to overcome this problem. What I have analyzed, that due to this problem they can’t properly entertain and satisfy their customers and many employees leave this organization due to their weak planning work schedule.



Keeping in view of the global development and advancement in the field of telecommunication one can say without any hesitation that ufone has no plans to hire people for any future product development. All what they are doing is that they have outsourced all the technological development for which they are paying thousand of money for that. No proper plans have yet been implemented to hire and train personals for their future demand.



There is no concept of temporary workers, which is also hampering their cost because through that they can save thousand of money.

5.2 Recruitment Problem

Looking at the Ufone recruitment process mostly they are using internal recruiting source as their main source. I have found some discrepancies in ufone system, which is worth mentioning.



Lack to follow due process policy. Due to this they are losing their ace employees.



Due to lack of proper advertisement they are unable to grab the best employees for their organization.



They are not following the lead the market pay strategies due to which they are suffering from high turnovers

5.3 Payroll Problem

By involving my self in the monthly payroll process rum by Human Resource Department I have noticed that this process take longer time to complete and have duplication of steps that already done by other departments.

6 FINDINGS (SWOT ANALYSIS)

Strengths

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

Ufone is a government company and therefore it enjoys a lot of concessions, which the private cellular companies cannot enjoy.



GSM technology.



It has a strong brand identity. It has successfully projected itself as a company meant to serve its people.



Ufone has Wide network.



Ufone has a comprehensive promotional strategy.



Ufone has a unified network of franchises.



Electronic Voucher Distribution (EVD) is a great new re-charge option for prepaid subscribers that doesn't relay on the availability of scratch cards for topping up their Ufone credit. This service is great because it ensures that the credit require for Ufone connection will always be available on-demand.

Weakness



Ufone being a government organization has relatively less human and financial capital available as compared to its major competitors that are subsidiaries of large multinationals such as Mobilink and Telenor.



Customer services provided by Ufone are not according to the requirements of their customers.



High Turnover rate.

Opportunities



There are vast opportunities of growth as market penetration rate of the cellular market of Pakistan is only 2.3%



The introduction of new technologies in the cellular industry has increased the demand for it along with reducing the operation costs for these companies.



Ufone can develop direct relationship with retailers on large scale through Electronic Voucher Charge.

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

With the globalization of the world Mobilink can further increase its market.



They should call in at different universities and offer jobs there for students to give them employment in the organization. They can post their job advertisements on university bulletin boards and also ask the fresh graduates for walk in interviews.



Headhunters can be used when senior management positions become vacant. Headhunters will use their knowledge of the employment market to find suitable candidates.

Threats



Just as Telenor, Ufone’s greatest threat is its competitors especially Telenor and Al-Warid. These companies have introduced new technologies with consumer friendly packages. Ufone will have to devise its defensive strategies tactfully in order to retain its share in the market



Changing technology is also a threat for Ufone because things are changing so frequently in the market with the change in technology.

7 CONCLUSION & RECOMMENDATION

Improvise The HR Process

Although it was stated by the HR heads that they follow a good and systematic process but when we went around asking the employees they told that the HR process is not up to the mark.

They should follow the world standard or the HR 360 degree standard where not only the boss evaluates the employees but the whole panel and the colleges and sub ordinates also evaluate the employee on work performance.

Shift To Be An Employee Oriented Company As Well

At the moment Ufone is just a procedure-oriented company. It should shift from that to an employee oriented company so as to satisfy and motivate the HR. Ufone does not take its employees into consideration so it should also value its staff.

Motivation

Again although Ufone HR management says that it motivates its employees but according to the employees there is no motivational aspect present which gives a positive impact.

Have A More Professional Attitude

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Ufone does not follow a very professional attitude and a lot of biasness and personal favoritism is present and employees are also evaluated on the personal relations with their respective upper management with out taking performance much into consideration.

Training Free Of Condition

At the moment Ufone does give the employees a lot of training sessions but they have a condition on that. The respective employees has to sign a bond with the organization that they will not leave the organization for a specified period of time lets say for 5 years and if they do they would have to pay an amount of money as a fine if they have received the training. So this bounds the employees willingly or unwillingly, which can have a positive impact according to the company’s point of view only.

Redesign Of Payroll Process

Ufone need to redesign the payroll procession for the Human Resource Department because it has duplication of steps.

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8 BIBLIOGRAPHY



Human Resource Management By: Decenzo Robbins



Management

By: Weihrich koontz.



Organizational Behavior By: Stephen P. Robbins



Principle of Marketing By: Philip Kottler



www.ufone.com



www.mobilinkgsm.com



www.telenor.com.pk



www.waridtel.com



www.paktel.com



www.ptcl.com.pk



www.pta.gov.pk 30

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APPENDIX – B: EXPERIENCE LETTER

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