CHAPTER # 1

INTRODUCTION

1

1 Introduction:

Pakistan Telecommunication Company limited (PTCL) PTCL is the largest

telecommunication provider in Pakistan with employee strength of 30,089 and around 4

(Millions) land line customer base. It also continues to be the largest CDMA (Core Division

Multiple Access) operator in the country with 0.8 million V-fone customers. Moreover, the

company maintains a leading position in Pakistan as an infrastructure provider to other

telecom operators and corporate customers of the country. It is an instrumental agent in

Pakistan’s economic growth. PTCL has laid optical fiber Access network in the major

metropolitan centers of Pakistan and it has modernized and upgraded the local loop services

from copper to optical fiber network.

A new shift in the ownership of the company has been taken in April 2006, when Emirates

Telecommunication Corporation which is commonly known as Etisalat, assumed

management control of PTCL part of the $2.6 billion deal to buy a 26% stake in PTCL .The

successful privatization of PTCL and consequently Ufone, is hailed in a new era for

telecommunication in Pakistan.

Etisalat has been the telecommunication service provider in the UAE since 1976 and stands

140th among the financial times’ top 500 corporations in the world in terms of market

capitalizations. Etisalat is currently operating in 16 countries of Middle East, Asia and Africa

and is continuing to pursue new fixed and mobile line opportunities in many growth markets.

1.1 History of PTCL:

2

Telecom Sector of Pakistan:

The telecom sector of Pakistan has also entered into a new era. The monopoly of PTCL

is now over and the sector is moving towards liberalization. While liberalization and

competition are synonymous, the future scenario also poses some challenges to the market

dominance of PTCL. The company is ready to face this challenge and maintain its revenue

streams in the face of forthcoming competition.

History of Telecommunication:

From the humble beginnings of Posts & Telegraph Department (P&T) in 1947 and

establishment of Pakistan Telephone & Telegraph Department (T&T) in 1962, to this very

day here is a story of commitment and vision.  The history of telecommunication in the Sub-

Continent is as old as the history of our slavery. In the subcontinent, before Independence this

sector was under the Indian Post & Telegraph Department and developed as a successful

industry.

The role of telecommunication in Pakistan can be broadly divided into four phases:

1 Pakistan Post & Telegraph (P&T):

This department started its telephone service with only 12346 telephone lines and seven

telegraph offices all over Pakistan. All the telephone system at that time was manual. This

department continued its business up to 1962. At the time of independence the postal and

telecommunication services were performed by a single department known as Pakistan Post

& Telegraph (P&T). The Government of Pakistan adopted the Government of India

Telegraph act 1885 to control and direct the activities of telecommunication.

2 Pakistan Telephone & Telegraph (T&T):

Pakistan Post and Pakistan Telephone & Telegraph (PT&T) under the presidential

ordinance was the first step towards reforms in the telecommunication sector. It was made in

1962, when the Ayub Khan’s government decided to split up the P&T department into two

separate departments. Director General headed this department. The decision making power

was concentrated with the post of DG, while the responsibilities were delegated to General

Managers and Chief Engineers throughout the organization. The PT&T were in fact a civil

3

service department under the ministerial control. The PT&T organizational structure had 20

Chief Engineers and General Managers reporting directly to the Director General. At the time

of inception of PTC the total number of employees working in PT&T was 45686 and the total

network comprised of 922,000 telephone lines.

3 Pakistan Telecommunication Corporation (PTC):

The decade of 1990s brought about many changes in the economic structure of Pakistan. The

government of Pakistan pursued the deregulation and liberalization policy in production and

service industry. The major change in this regard was privatization and deregulation of many

of the departments of government of Pakistan. The objective was to reduce the burden of the

government, minimize the bureaucratic influence and improve the efficiency of these

departments.

A major breakthrough in the history of Telecommunication in the country occurred with the

gradual deregulation and privatization of T&T. at the first stage Pakistan Telephone &

Telegraph Department (T&T) was converted into a statutory corporation Pakistan

Telecommunication Corporation. On December 15, 1990 the PT&T department was

transformed into Pakistan Telecommunication Corporation with legal identity separate from

the Government. This change into statute introduced by the Government of Pakistan enabled

PTC to move from administrative to contractual relationship with its customers. It provided

the opportunity for the development of Telecommunication facilities to an unprecedented

level and also for an increased customer satisfaction.

Working under the PTC Act No XVIII of 1991, the Corporation was responsible for

establishment of international link with all member countries of ITU (International

Telecommunication Union).

Pakistan Telecommunication Corporation in its five years life spread the network of its

services all over the country and the total number of telephone lines expanded to 21, 27, 344

in addition to telegraph and telex services. The total number of employees at the end of 1995

was 53705 and till today are 65000.

In addition to inland telephone network, PTC did a lot to improve the International

communication. The International Communication Network of PTC comprised of variety of

satellite earth stations, terrestrials systems, submarine cable system and coastal radio system,

as well as international gateway exchange.

4

4 Pakistan Telecommunication Company Limited (PTCL):

Pakistan Telecommunication Company Limited (PTCL) is a company established to

undertake the telecommunication business formally carried on by Pakistan

Telecommunication Corporation (PTC). Pakistan Telecommunication Corporation (PTC) was

transformed into Pakistan Telecommunication Company Limited (PTCL) on January1, 1996

under Pakistan Telecommunication Reorganization Act, 1996 according to which PTCL took

over all the properties, assets, rights and obligations of PTC.

1.1.2 Four Bodies of PTCL:Under the PTC Reorganization Act, 1996 the telecommunication sectors was split into four

bodies.

o Pakistan Telecommunication Company Limited (PTCL)

o Pakistan Telecommunication Authority (PTA)

o National Telecommunication Corporation(NTC)

o Frequency Allocation Board (FAB)

I. Pakistan Telecommunication Company Limited (PTCL):

PTCL was established with a view to undertake the telecommunication business formally

carried in Pakistan. Pakistan Telecommunication Corporation (PTC) was transformed into

Pakistan Telecommunication Company Limited (PTCL) on January 1, 1996 under Pakistan

Telecommunication Reorganization Act, 1996 according to which PTCL took over all the

properties, assets, rights and obligations of PTC.

II. Pakistan Telecommunication Authority (PTA):

Pakistan Telecommunication Authority (PTA) is a regulatory body responsible for

monitoring the telecommunication business in Pakistan. It frames rules and regulations for

private telecom companies such as mobile phone companies, Internet service providers,

paging companies and pay card phone companies. Moreover, issues licenses to the new

companies entering into this business.

III. National Telecommunication Corporation (NTC):

National Telecommunication Corporation (NTC) is responsible to provide the

telecommunication services to the various departments of government and armed services.

5

IV. Frequency Allocation Board (FAB):

Allocates radio frequency spectrum to the Government, providers of telecommunication

services, radio and television broadcasting operators, public and private wireless operators

and others

Historical Background:

Since then, PTCL has been working vigorously to meet the dual challenge of telecom

development and socio-economic uplift of the country. This is characterized by a clearer

appreciation of ongoing telecom scenario wherein convergence of technologies continuously

changes the shape of the sector. A measure of this understanding is progressive measures

such as establishment of the company's mobile and Internet subsidiaries in 1998.

As telecommunication monopolies head towards an imminent end, services and infrastructure

providers are set to face even bigger challenges. Pakistan also entered post-monopoly era

with deregulation of the sector in January 2003. On the Government level, a comprehensive

liberalization policy for telecom sector is in the offing.

1947 Posts & Telegraph Dept. established

1962 Pakistan Telegraph & Telephone Depts.

1990-91 Pakistan Telecom Corporation

1995 About 5 % of PTC assets transferred to PTA, FAB & NTC.

1996 PTCL Formed listed on all Stock Exchanges of Pakistan

1998 Mobile & Internet subsidiaries established

2000 Telecom Policy Finalized

2003Telecom Deregulation Policy Announced

2006Etisalat Takes Over

2008launching of IPTV (PTCL Smart)

6

1.1.3 Privatization of PTCL:

Saturday, the June 18, 2005 was an important day in the history of PTCL, which witnessed

the successful sale of 26% strategic shares to Emirates Telecommunications Corporation

“Etisalat” For many, the process of PTCL Privatization might have been a routine

government affair, but factually the process has been a long drawn and an arduous one.

The Strategic Scale:

The issued share capital of PTCL is PKR 51,000,000,000 divided into 5,100,000,000

ordinary shares of PKR 10 each, of which approximately 3,774,000,000 are “A” ordinary

shares and 1,326,000,000 are “B” ordinary shares. In simple terms, each “B” ordinary share

carries four votes and each “A” ordinary share carried one vote. In respect of dividends,

voting rights on all matters (other than election of directors) and all other rights as

shareholders, there is no difference between “A” ordinary shares and “B” ordinary shares.

The Bidders:

In the final process of bidding that was concluded in June 2005, 18 investors submitted

Expression of Interests “EOIs” out of which 6 did not submit Statement of Qualifications

(SOQs). Out of 12 SOQs, 2 did not meet bidding requirements; hence 10 potential buyers

were invited for due diligence process. Out of these, 3 were dropped and 7 bidders came to

Pakistan in the months of April and May 2005 to take part in the due diligence process.

Finally, 3 bidders Singapore Telecommunications (Sing Tel), China Mobile (Hong Kong)

Limited and Etisalat participated in the final bidding process held in Islamabad on June 18,

2005.

7

Emirate Telecommunication Company “Etisalat”:

Founded on August 30, 1976, the Emirates telecommunications Corporation-Etisalat-

provides telecommunication services to the United Arab Emirates, and is one of the leading

service providers in the Middle East. Eitsalat is embracing new technologies, new

philosophies and new ways of doing business. Eitsalat was one of the first to introduce

mobile telephones in the Middle East in 1982 and launched the GSM Service in September

1994.Mr.Obaid the Chief Executive officer, Eitsalat says that the new Management will take

steps for improving quality, reorganization and extension of PTCL service to more areas; he

further added that technical staff might be sent to Africa and other countries after imparting

additional training to them. Emirates Telecommunications Corporation (Eitsalat) was the

highest bidder for the acquisition of a 26 per cent stake in Pakistan Telecommunication

Corporation Limited (PTCL).This latest win reflects the determination of Etisalat to

strengthen its position as the leading telecommunications company in the region. The

acquisition of 26 per cent of PTCL provides Eitsalat International access to the management

of the company and a pool of experienced professionals.

8

1.2 Information about PTCL:

VISION

“To be the leading Information and Communication Technology Service

Provider in the region by achieving customer satisfaction and

maximizing shareholders' value'”

MISSION

To achieve our vision by having:

An organizational environment that fosters professionalism,

motivation & quality.

An environment that is cost effective & quality conscious.

Services that are based on the most optimum technology.

“Quality” & “Time Conscious” Customer service.

Sustained growth in earnings & profitability

VALUES

Professional Integrity

Customer Satisfaction

Teamwork

Company Loyalty

9

Subsidiary of PTCL:

PTCL is the exclusive provider of basic telephony in Pakistan .Besides providing fixed line,

value added and other ancillary services, PTCL owns subsidiary that provides cellular

services. Since its transformation from a public sector corporation into a publicly listed

corporate entity in 1996, PTCL has implemented an aggressive restructuring program, the

primary aim of which is to improve profitability through increased customer focus and

efficiency and to prepare the company for the highly competitive environment.

PTCL launched its mobile and data services subsidiaries in 2001 by the name of Ufone and

PakNet respectively. However none of the brands were able to compete in their respective

categories in beginning.

1.2.4 PRODUCTS AND SERVICES

PTCL achieves its customers’ satisfaction by providing them with features and services

like network coverage, performance, reliability & security at their specific locations.

PTCL’s offers services to two types of Customers:

1. Consumers

2. Corporate customers

CONSUMER SERVICES:

1. PSTN (Public Switch Telephone Network)

2. V fone

3. Broadband

4. IPTV (PTCL Smart TV)

5. VMS (Voice Mail Service)

6. Free Internet Facility

10

7. Kehdo SMS

8. PTCL Direct

9. PTCL Calling Cards

1-PSTN (Public Switch Telephone Network):

This service is available on conventional fixed line phone. This service includes

convenient features and options like Caller-ID, Call Forwarding, Call Waiting,

Conference Calling, Call Barring and Do not Disturb.PTCL also offers flat calling rates

for local, nationwide and international calling services to its customers. For further

details on PSTN, help line 1236 can be contacted.

2-VFONE FIXED WIRELESS ACCESS NETWORK:

It is a replacement of fixed line phone mainly in the areas where there is not network

availability. Wireless phones are based on CDMA2000 1X technology. PTCL has built-

up capacity of 2.6M covering over 10,000 urban, suburban and rural villages. The

network is enabled for Voice, Dialup-Internet access (115kbps) and EVDO Broadband.

3-BROADBAND:

PTCL is offering high speed broadband to its consumers for high speed internet

connectivity with easy downloads & uploads. Free DSL modems are offered to the

customers while special discounted student package is offered to the students as well.

4-PTCL SMART TV:

It’s a fixed line service that allows the customers to experience telephony, Broadband

and multi-channel TV service all at the same time, on the same line. No additional cable

would be required to receive cable TV / Multi channel TV. An IP (Internet Protocol)-

based platform allows the TV service to be ‘smarter’ than the traditional broadcast and

cable TV services, by making the TV viewing experience more interactive and

personalized.

5-VOICE MESSAGING SERVICE (VMS):

PTCL is offering phone to phone Voice Mail Service that works all of the time - even in

power outage. After 6 or 7 rings the voice mail service activates and the caller can leave

the message in his voice. Voice mailbox can be accessed 24 hour a day, 7 days a week

11

and the customer would never miss an important call. PTCL has extended its Voice

Messaging Service to 38 cities and it’s all free.

6-FREE INTERNET FACILITY:

PTCL has offered Free Internet facility for its landline valued customers. All PTCL

landline subscribers can now experience the best dial up speeds with unlimited internet

usage during night hours from 10:00pm to 07:00am.

7-KEHDO SMS (VOICE SMS):

Adding voice to the SMS takes SMS to the next generation of value. In this service, the

caller can leave a text message from his digital phone to any cell phone number. That

text message is received with voice on the cell phone as an incoming call.

8-PTCL DIRECTS:

PTCL direct is a pre-paid international calling service for making calls from the UK to

Pakistan. The service aims to extend PTCL’s reach to UK based callers wishing to stay

in touch with their family & friends in Pakistan. Customers can purchase credit online

(using a credit card) and make calls to any number in Pakistan direct through PTCL.

The calls will be charged according to prescribed PTCL tariffs. www.ptcldirect.com is

the website for further information on PTCL Direct.

9-CALLING CARDS DENOMINATIONS:

PTCL Calling cards are available at Sales & Service Centers, PTCL Customer Service

Centers and retail shops, in following denominations:

CORPORATE SERVICES:

1. UAN (Universal Access Number-111)

2. UIN (Universal Internet Number-131)

3. Business DSL

4. DPLC (Domestic Private Leased Circuit)

5. IP Connect

6. ISDN BRI (Integrated Services Digital Network Basic Rate Interface

12

7. ISDN PRI Integrated Services Digital Network Primary Rate Interface

8. Co -locations

9. DXX Connectivity

10. Call Centers

11. Audio Conference

12. VPN (Virtual Private Network)

13. Premium Rate Service (0900)

14. V-Connect

15. International IP services

16. PTCL Webhosting

17. Payphones

18. Evo Wireless Broadband

1-UAN (Universal Access Number):

UAN (Universal Access Number) consists of 6 digits, preceded by 3 digit code of 111,

common to all UANs. UAN operates on existing telephone connection without

disturbing normal phone number. UAN never changes, if you move your office or your

normal telephone number is changed, your UAN will remain unchanged. UAN can be

accessed from other cities by dialing the area code first.

2-UIN (Universal Internet Number):

131 numbering scheme for Internet Service Providers, represents exclusive code

assigned to each ISP. Functioning just like UAN-0800 toll-free service, UIN involves

allocation of numbers to individual ISPs who are licensed by PTA. This service

functions under a single-metering billing system with the promise of rich dividends in

terms of customer care.

3-Business DSL:

PTCL’s business DSL solution provides a reliable, business-class broadband

connectivity, which will help the customers to download software and large files,

research the web and communicate with their business associate’s and business

partners.

13

4-Domestic Private Leased Circuit (DPLC):

This service is also called even stream/channel stream. In this service, PTCL provides

leased line services to other service providers & corporate customers for data or voice

communication by establishing a connection between two exchanges.

5-IP Connect:

The “IP Connect” service is based on Internet Protocol Virtual Private Networks (IP-

VPN), which allows companies with locations spread out in PAKISTAN to connect and

transfer data on a private and secure way over reliable robust network infrastructure.

6-ISDN BRI (Integrated Services Digital Network – Basic Rate Interface):

This service allows the customer to have two connections on a single line. In addition, it

allows clearer voice communication plus a faster way to send and receive fax, video

images, graphics and computer data on a phone line. You can have a single Tele Plus

connection, just like a conventional phone line. Moreover, Customer can go utilize

phone line as well as internet at one and the same time. Total bandwidth of the BRI is

128 kbps.

7-ISDN PRI (Integrated Services Digital Network – Primary Rate Interface):

This service allows the customer to have thirty connections on a single line. Small as

well as medium sized clients usually go for this facility to facilitate their internal &

external Customers. Business customers can operate their PABX more efficiently while

using PRI’s. Total bandwidth of the BRI is 2 MB. Call centers operate on PRI.

8-Co-location centers:

Pakistan Telecommunication Company Limited (PTCL) has taken the landmark

decision to establish Co-Location centers throughout the country. In the first phase,

these centers are established at Islamabad, Lahore and Karachi. PTCL has rented out its

free premises with ready fitted environment (with AC and DC power) to other Telecom

and IT Companies where they have installed their equipment directly.

14

9-Digital Cross Connect (DXX):

PTCL offers flexible and reliable services through a high quality platform of Digital

Leased Line Network to organizations, normally to financial institutions (banks).It is

meant for data communication only and provides connectivity between two offices.

PTCL digital cross connect (DXX) network provides the most dependable media for

WAN connectivity with more than 200 Nodes countrywide.

10-CALL CENTERS:

International Call Centers:

Call centers operate through a 0800 Toll-Free Service, wherein overseas customers'

calls are routed to Pakistan or overseas destinations through VoIP (Voice over internet

protocol) technology where trained agents are ready to respond to the queries of the

customers. This service however involves certain human resource requisites like

communication skills and customer handling to be arranged by the subscribers.

Domestic Call Centers:

Domestic Call Centers also operate through 0800 Toll-Free Service, wherein customer’s

calls are routed to a call center where trained agents respond to the inquiries of the

customers. This service however involves certain human resource requisites like

communication skills and customer handling to be arranged by the subscribers.

11-Audio Conference:

PTCL offers audio conferencing services for SME/Corporate Customers   with up to 120

participants per conference. Audio conferencing services are easy to use with

interesting billing packages, designed for maximum user comfort and

convenience with web integrated interface. Audio Conferencing allows organizations to

conduct virtual meetings between clients/customers/staff both locally and

internationally.

12-VPN Service:

This service allows a private enterprise to have a virtual private network using public

network resources, without requiring the installation of dedicated network resources.

With the VPN service one can flexibly control the outgoing call authority of phones by

15

setting the closed group. Moreover, VPN allows making calls on reduced rates on all

the numbers on the virtual private network.

13-Premium Services (0900):

These services are based on the system called IVR (Interactive Voice Response) .PTCL

offers Standard Service and Advanced Service for accessing the service providers with

features that are helpful to the customers in customizing their service according to their

needs.

14-V-Connect:

This service is offered to big organizations in remote areas where V-Connect provides

data connectivity in client server mode through dial up process, where the client can be

mobile or stationary and the client requires low bandwidth to access the server.

15-International IP Services:

PTCL is the largest IP services carrier in Pakistan with extensive international peering

capacity. It provides secure and reliable VoIP solutions catering to the requirements of

LDIs and other operators in the marketplace. PTCL provides dedicated IPs to other

organizations that would help them to transfer data with increased security and

connectivity.

16-PTCL Web Hosting Services:

PTCL offers world class hosting on windows platform. It provides the control,

flexibility and reliability required to create and manage a successful web presence by

other organizations. Moreover the self healing backbone of PTCL makes sure the high

availability of the customer’s website.

17-PTCL Payphone:

This service operates like a PCO. It is compatible with a call centre solution and

generates printed receipts at the end of call at call centre. PTCL payphone provide Wide

Area Network coverage, quality service, best speech quality, and reliability. ‘

18. EVO WIRELESS BRAODBAND: (launched in 3rd June, 2009)

This service operates with Evo wireless broad band’s 3 G technology by this customer have

the convenience of being able to access internet with fast speed by using USB modem and

PCMICA card.

16

1.2.5 Year of Customer Care 2008-09:

The year 2008-09 was declared as the “year of customer care” by the President & CEO,

PTCL. A steering committee of senior management from core business areas was constituted

and given the mandate to devise and implement frame-work for customer focused business

operations.

Voluntary Separation Scheme (VSS):

Before its privatization, PTCL had a total of 65000 employees out of which 51326 were the

regular employees. The government privatized 26% of the company handing over the

management to Etisalat. Being the government organization PTCL was over staffed that were

a burden on the organization. The new management decided to right size the organization

staff by offering a scheme named as “Voluntary Separation Scheme”. In this scheme about

20000 regular employees were targeted and were offered to get the separation from the

company by getting the compensations thrice more than those which they would have got in

regular retirement from the company.

17

The cases were offered to the employees and their options were asked, the cases of

employees who chose to avail the opportunity were sent to the management where they were

considered for acceptance or rejection. More than 33000 cases were accepted for this

purpose.

According to the terms and conditions, the employees separated through this scheme from the

company were not able to apply in PTCL for the next 3 years after their retirement. The

company rejected some cases on the basis of keeping the key employees with it and some of

the cases were deferred for the purpose that the outgoing employees should train the persons

replacing them on the key posts and could leave the company after 6 months period. After the

success of this scheme the company came out of a burden of over staffing but on the other

hand faced the problem of shortage of employees on some places, there were some exchanges

in which all of the employees working there chose the VSS, leaving the whole exchange

station vacant and non operational. For the purpose of performance of operations and

uninterrupted services to the customers the employees were transferred to the main stations

and on the other hand the functions of the exchanges in peripheral areas were shifted to the

near by main exchanges.

1.3 Organizational Structure:The extroverted structure of PTCL is stretched over the whole country which facilitates the

company in providing services to the valued customers in every part of Pakistan.

Geographically the company is divided into following zones:

North

South

At the Headquarters the company is structured around the following departments.

1.3.2 MAJOR DEPARTMENTS

HR & Administration:

The functional responsibilities of this department include core human resource areas

like recruitment & manpower planning, training and development, performance

management, organizational restructuring, building competitive market pay structures,

18

developing the HR policies, Procurement etc. This department also indulges in

administrative responsibilities including overall maintenance of the company,

management of the Training Colleges and Institutes, providing medical services to the

employees, employee relations etc.

Technical & Operations:

Technical Department deals with the preparation of annual and five year technical plan.

It ensures that engineering standards and practices are executed properly; the technical

specifications are met for telecom equipment used in PTCL and cost effective

technologies are introduced This department is responsible for the final technical

evaluation.

Corporate Development:

This department formulates Master plan with short, medium and long term objectives,

strategies and KPIs based on Available market data, Competitive /strategic landscape,

Input from internal stakeholders. Choosing strategic projects and closely monitoring

domestic and international market for new investment opportunities is also part of the

responsibilities. Effective Corporate communications, formulation of corporate strategy,

Management of Intl Business Relations, Carrier Services and wholesale and dealing

with Regulatory Affairs are the prime areas of corporate development.

Commercial:

The Commercial Department develops strategic business plans, sales strategy, budget,

policies and procedures, relations with major accounts and marketing plan for PTCL. It

plans for maintaining and increasing the market share, penetrating and developing

existing and new market segments by developing products and sales programs to reach

market segment objectives

Business Zone:

This department is divided in two areas Business Zones- North, Business Zones –

South .This department is responsible for developing business plans, sales strategies and

manages all the operations performed in the zones of PTCL. This department is taking

care of overall management of all the matters relating to the EVP’s Business in the

Zone areas. Formulate strategies to enhance utilization of PTCL available businesses,

also implement business and marketing plans for sustained growth of PTCL revenues.

19

Plan and approve business areas for implementation of IT, E-commerce, Web-hosting

and host of new services

Finance:

This department drives financial visions and direction of the company in line with the

overall business strategies. It delivers increasing shareholders’ value, directs and

monitors financial system and strategies. The principal functions include financial

policies and procedures, costing and regulatory affairs, Budget control, Treasury,

Revenue accounts.

Procurement & Administration:

Procurement department is responsible for all kind of purchase. Procurement is carried

out by issuing tenders or by price negotiations Tender is issued only in the funded

institutions or Govt organization and price negotiation is done in private organizations.

In PTCL, procurement is done by issuing tenders as well through price negotiation.

Information Technology:

This department is responsible for all IT related issues and network issues with in the

company. Furthermore, it is responsible for overall PTCL IT Operations and Data

centers.

IT department builds, manages and maintains PTCL’s IT Infrastructure and ensures the

availability and the stability of the IT systems and solution. Responsible for the

implementation of SLA with other departments

OTHER IMPORTANT AREAS

Legal Affairs:

The department handles Commercial and Corporate, Regulatory, Employment Laws

and HR, Litigation, and Subsidiaries Affairs

Internal Audit:

This department carries out the General Internal Audit and IT Audit. It performs a wide

range of services including financial audits, compliance audits, operational audits and

information technology audits.

20

Revenue Assurance:

The main function of this department is to effectively manage the high risk areas of PTCL

and reduce the possibility of revenue leakage and bad debts, identify revenue generation

streams, ensure revenue generation & billing and identify cases of lost opportunities. Other

responsibilities include formulation and implementation of RA plans and strategies, network

surveillance and surveillance etc.

21

CHAPTER # 2

DEPARTMENTAL INFORMATION

22

2.1 Internal Analysis of PTCL:

SWOT Analysis:

For a company to avail maximum and avoid minimum, it has to know what it has to avail and

what it has to avoid. The external environment has to be scanned by the management for any

arising opportunities or any critical threat. The resources of a company constitute its strengths

and weaknesses.

External factors that are affecting the efficiency and performance of PTCL are broadly

categorized into;

Economic forces

Social, cultural, demographic and environmental forces

Technological forces

Competitive forces

Internal forces are:

Marketing strength of firm

Financial/Accounting resources

Human resources

Computer information system

Production/operations etc

I tried to use my keen observation in order to find the strengths, weaknesses, opportunities

and threats of PTCL. As it is very difficult for an internee to discuss with the employees of

any organization about its weaknesses; moreover they are also not open with in telling their

strengths and opportunities in front of them.

Strengths:

A professional management is running PTCL. PTCL Management is continuously allocating

funds for new technology, enhancing knowledge pool, acquiring professionally skilled

personnel and so many arrangements regarding meeting the requirements of rapidly changing

environment.

23

Biggest Foreign Exchange Earner:

Modern Technology:

Good Will:

Largest Installed Network:

OSS (One Stop Shop) Provider:

Weaknesses:

Communication Barriers:

Lack of Professional Staff in Region:

Low Employee Work Morale:

Ambiguity in Strategic Direction:

Lack of Training Program:

Essence of Bureaucratic Touch:

Opportunities:

PTCL has a vast network spread all over Pakistan. Due to its experience in the field of

telecommunications and a trained workforce PTCL has a great opportunity to do well in the

deregulated scenario under the Etisalat Management.

Market Size

Privatization & liberalization of IT sector

Govt. IT operations & projects

Increasing Awareness Rate:

Skillful Human Resources:

Telecom facilities in the rural areas:

Addition to the Product line:

24

Licensing as a Source of Revenue:

IT and Communication: Vehicles of Modern Businesses:

Threats:

Deregulations not only provide new opportunities but also pose some threats. Up till now

PTCL is enjoying a monopoly in fix line telephony but after deregulation of telecom market

PTCL is facing competition from other telecom companies. This may result in fall of traffic

and revenue.

Unstable Economic and Political Condition of Pakistan:

Decrease in Market Share Due to Competition:

Increased Competition and Turnover:

Due to emergence of bulk of WLL, ISP’s, Mobile companies and WLL operators, company

would have to compete for quality human capital also. Though the pay structure has greatly

improved after privatization of PTCL, but as new employees are on contract so company

should provide competitive pays to its employees. Other wise the human capital trained and

developed by PTCL would be captured by bulk of other telecom industry companies.

2.2 External Analysis of PTCL:

PEST analysis:

The PEST analysis is a framework that strategy consultants use to scan the external macro-

environment in which a firm operates. PEST is an acronym for the following factors:

PEST (or sometimes rearranged as "STEP") factors play an important role in the value

creation opportunities of a strategy. However they are usually outside the control of the

corporation and must normally be considered as either threats or opportunities. Remember

macro-economical factors can differ per continent, country or even region, so normally a

PEST analysis should be performed per country.

PTCL is now facing lot of challenging by politically, economically, socially and

technologically. Because the key to success for telecom industry is customer Nowadays lots

of threat and economical recession also suffered the industries as whole. As far the concern of

25

social, PTCL is doing work on social welfare, training of human beings, reduction of

pollution, and providing the facilities of technology.

 In the table below you can find easily examples of each of these factors facing by PTCL.

Political Economic Social Technological

Environmental

regulations and

protection

Economic growth Income distributionGovernment

research spending

Tax policiesInterest rates &

monetary policies

Demographics,

Population growth

rates, Age

distribution

Industry focus on

technological effort

International trade

regulations and

restrictions

Government

spending

Labor / social

mobility

New inventions and

development

Contract enforcement

law Consumer

protection

Unemployment

policyLifestyle changes

Rate of technology

transfer

Employment laws Taxation

Work/career and

leisure attitudes

Entrepreneurial

spirit

Life cycle and speed

of technological

obsolescence

Government

organization / attitude Exchange rates Education

Energy use and

costs

Competition regulation Inflation rates Fashion, hypes (Changes in)

26

Information

Technology

Political StabilityStage of the

business cycle

Health

consciousness &

welfare, feelings on

safety

(Changes in)

Internet

Safety regulationsConsumer

confidenceLiving conditions

(Changes in) Mobile

Technology

 Completing a PEST Analysis is relatively simple, and can be done via workshops using

brainstorming techniques. Usage of PEST analysis can vary from: company and strategic

planning, marketing planning, business and product development, and research reports.

27

CHAPTER # 3

INTERNSHIP EXPERIENCE

28

Internship Experience:This internship was a good experience for my future job. I have used many skills which are

described below.

3.1 Type of skills used and gained:

a) Computer Skill: In this modern world, office work has shifted from manual to computer.

So it is very important to have good knowledge and sharp computer skills to work efficiently

in an office environment. Almost all of my work was done on computer so the computer

skills, which I possessed, help me a lot.

b) Work Management Skills: In the office environment a person is known by the work he

or she does, the better one performs the more is one praised. So the work management skills

that I had gained during the MBA program helped me manage the work. I also got the chance

to improve those skills because skills become more effective with practice.

c) Communication Skill: Business communication is the heart of the effective and efficient

working of an organization. In PTCL I utilized the communication skills which I learnt in my

first two semester of MBA in the course of Business Communication taught by Miss.SADIA.

Using these skills I was able to disseminate information to my seniors and to the manager.

d) Relationship Management Skills: During the internship period I was able to exercise the

techniques of relationship management as I had the opportunity to communicate and develop

relations with my colleagues and seniors. PTCL headquarters was the best place to implement

these methodologies due to large number of employees working there.

e) Coordination Skills: Success of any organization depends upon the level of coordination

among its employees. I learnt how to coordinate with other employees at the same level and

with the upper level. During the Internship, I improve my coordination skill with working

different persons having different ranks. For Example when I am coordinating with the

manager, I am more formal than coordinating with immediate officer.

f) Stress Management Skills: The work in the office has to be completed in the specific

time period so this creates a stressful situation for the employees. It is therefore important to

exercise the stress-management skills in order to get ready for the next task. I implemented

these techniques.

29

SEVP HR

EVP HR

GM HR Admin

EVP Training & Career

Development

GM Employee Relations

GM Recruitment &

manpower planning

EVP OD & HR Planning

GM Compensation & HR

Policies

GM Organizational Design

GM Training & Career

Development

GM PTCL Academy

GM Training Administration

GM Training Services

g) Time Management Skills: Managing many things at time is the skill which we learnt

during our MBA program where we had to manage many projects at time helped me to do

multi tasking at same time, for example dealing with clients at same time and working.

h) Conflict Resolution Skills: I gained the skill to manage conflicts amongst employee

because small conflicts do arise in large organizations as the work is interlinked. As the

output of one department becomes the input of the other department.

i) Self-management Skills: The next thing I was able to learn was indeed very important

for a young professional like me was self-management. I was bound to follow the rules and

regulations being followed in PTCL therefore I was able to develop discipline in myself.

3.2 Concern Department Information:

HUMAN RESOURCE DEPARTMENT

The functional responsibilities of this department include core human resource areas

like recruitment & manpower planning, training and development, performance

management, succession planning, organizational restructuring, building competitive

market pay structures, developing the HR policies, Procurement etc. This department

also indulges in administrative responsibilities including overall maintenance of the

company, management of the Training Colleges and Institutes, providing medical

services to the employees, employee relations etc

ORGANIZATIONAL STRUCTURE OF HR

30

SUB DEPARTMENT OF HR

1. Training & Career Development

2. HR Administration

3. Recruitment

4. Organizational Design

5. Compensation and HR Policies

1. TRAINING &CAREER DEVELOPMENT

Key Activities of Training & Career Development:

o Responsible for planning preparation, and execution of the projects for

expansion of training facilities. Also Introduces modern techniques and methods

in training with a view to adding value to and increasing efficacy of the training

activities

o Conducts and arrange foreign and local training courses for the PTCL

employees.

o Prepares annual training plan for the company ensuring credible trainers and

selects the most appropriate methods for conducting the programs.

This department is also responsible to conduct undergraduates and graduate

courses in different disciplines in line with the company policy at PTCL

academy. Training department is responsible for coordination of all trainings.

Given below is the list of training institutes of PTCL:

31

Training Centers of PTCL:

Islamabad PTCL

AcademyPTCL Training

Center Peshawar

PTCL Training

Center Multan

PTCL Training

Center LahorePTCL Training

Center Haripur

PTCL Training

Center Sukkur

PTCL Training

Center KarachiPTCL Training

Center Quetta

PTCL Training

Center Faisalabad

2. HR ADMINISTRATION

Key Activities of HR Administration:

o Plans and executes transfer plans of the management employees country-wide

based on the functional and business requirements

o Process the disciplinary cases in line with the prevailing regulations

o Execute the various functions relating to position management so as to match

the skills set of the employees with the positions

o Manage the permission requests of the employees as part of both external and

internal regulatory requirements

o Liaise with the external agencies viz. various functions relating to discipline

etc.

o Deals with leave management affairs of the cases falling under the purview of

SEVP (HR&A)

3. RECRUITMENT

Key activities of Recruitment:

32

o Maintain a close liaison with the top-tier engineering and business schools so

as to ensure a steady supply of high-class talent streams

o Conducts the complete hiring process from advertising the positions in various

media to the final selection in both management and non-management cadres

o Short lists the CVs received by both external (advertisement & executive

search firms) and internal (internal advertisement job posting) sources.

o Schedule interviews and panel nominations and makes interview calls to the

shortlisted candidates.

o Issues the appointment letter after the approval of higher management,

document verification and medical fitness test.

o Devises policies and procedures for instituting a selection process that is able

to attract the best available talent in the market

o Puts in place a mechanism to select the most suitable candidates from amongst

the choices available

o Conducts Realistic Job Previews with the new hires so as to give them a

factual and rational depiction of their jobs

o Provision of facilities (FSTC, business cards, assigning work locations, email

accounts, medical cards, processing of salaries, generating employee number

through SAP) to the new joiners.

o Deliver orientation to the new joiners with the basic information about all the

products & services, departmental overview and other general information

about the organization.

4. ORGANIZATIONAL DESIGN

Key Activities of Organizational Design:

o Responsible for creation of organizational structure for all hierarchy levels at

PTCL.

o Conduct studies to ensure management effectiveness, productivity, and

efficiency with a view to guiding the Company towards highest levels of

efficiency and performance

33

o Manage to excel in the mastering of the skills, tools, and values to help the

management and the company thrive in today’s turbulent business environment

5. COMPENSATION & HR POLICIES

Key Activities of Compensation & HR Policies:

o Responsible for data Gathering regarding description and responsibilities for the

various jobs.

o Prepare job descriptions for the whole company across all the hierarchical

levels.

o Design a uniform salary structure for the whole of PTCL that complies with the

criteria of internal as well as external equity

o Study and analyze the HR policies of different market players so as to establish

benchmarks for PTCL’s HR policy.

Compiles and develops the various HR guidelines and policies into a comprehensive HR

policy manual for the whole organization so as to ensure role clarity / definition and eliminate

duplication of tasks

SEVP HR & Administration is having two EVP working under him, EVP HR & EVP

Administration. EVP Administration has one GM, who has three senior managers. Senior

Manager; Medical Services, Senior Manager; Maintenance and Senior Manager;

Administration

Composition of Human Resource Committee

Chairman:

Mr. Abdulaziz A. Al Sawaleh

Members:

Mr. Abdulrahim A.Al Nooryani

34

Mr. Noor-ud-Din Baqai

Mr. Fadhil Al Ansari

Mr. Abdulaziz H. Taryam

Mr. Walid Irshad

Syed Mazhar Hussain

Secretary Human Resource Committee:

Ms. Farah Qamar (Company Secretary)

Function of the HR Committee:

Review and recommendation development and malignance of long term HR Polices, an

effective employee development program, appropriate compensation and benefit plan and

good governance model in line with statutory requirement and best polices. It ensures the

Governance and HR Polices and aligned with the strategic vision and core objectives of

the Company. It provides Leadership and guidance for the organizational transformation

needed in achieving its corporate objectives.

Job Responsibilities:

o SM Medical Services: In charge of all the medical facilities provided to PTCL

employees. One manager is working under SM Medical Services.

o Manager RHD: Looks after over all medical facilities.

o SM Administration: One manager reporting SM Administration.

o Manager L.P: Responsible for local purchases like refreshments (for meetings etc.),

traveling arrangements for official visits, office stationary, computer accessories etc.

o SM Admin. & Maintenance: Responsible for administration & maintenance of vehicles,

residences, office buildings & logistics.

o Manager Fleet: Deals issues related to vehicles.

o Manager states: Deals with allotment of residents to the officers & staff in PTCL

colonies.

o Manager Offices: Is responsible for maintenance of headquarters buildings. e.g.;

whitewash etc.

35

o Manager Residents: Is responsible for the maintenance of residences in PTCL colonies.

o Manager E & L: Is responsible for electricity & logistics issues e.g. maintenance of AC

plants & units. Also electricity related other issues are handled by him.

End user sends his requisition to admin along supporting documents directly. If large amount

is involved then he has to get approval from his high-ups & then forward that approved

request to admin. Administration section is responsible for maintenance & administration

issues of head quarter & blue area ONE STOP SHOP (OSS). Regions have to do their

maintenance & administration by themselves, for that separate budget is allocated to them.

When an employee leaves PTCL job, he has to do clearance from administration first. When

PTCL got privatized, a major change in the set up was required. Most important thing was the

change in property title/ownership from PTC to PTCL. Administration had done this job &

few things are yet to be done. Although this was not under the job description of those posts

but it was a special assignment from CEO to this section. So administration also does special

projects.

Report:

A monthly report is sent to the top management stating how much property had been

transferred from government ownership to PTCL & how much is yet to be transferred. Also

mentioning specific issues, as per the case is. Further there are no specific reports to be

presented to high ups periodically.

Recruitment Help Desk (RHD):RHD is a one-window service point for all the initial needs of the new staff member and

would provide the new employee with a Complete Starter Pack(ID card, Medical Book,

Laptop/desktop arrangements, Cell phones and other facilities according to entitlement)

on the date of joining.

The new hires are required to report to the Recruitment Help Desk on the date of joining. A

Joining Report is to be provided which is to be filled by the employee and verified by the

reporting authority. The employee is to be asked to submit the report to the reporting officer

and provide a copy to the recruitment department for further processing. The orientation

manual is delivered to the employee on the date of joining.

36

Processes undertaken by RHD:

RHD Bank Account Opening:

Bank Account form : Initially the candidate is provided with the Bank Account form and

panel Banks List

Bank Referral letter: The candidate selects the Bank and is given a Bank Referral letter

being addressed to the Manager of the bank.

Salary imbursement: After that the candidate open an account in the respective Bank

and informs the RHD , which then sends the account details to the Manager Payroll for

Salary imbursement

Existing Account: Incase if the candidate already has an account in the Panel Banks on

the panel, then he just has to provide the Account number.

Generating E-Mail ID:

After receiving the Joining Report from the candidate, a request is sent to the IT

Administrator for the generation of E-Mail ID and Password.

Generating Employee Number:

Mgt Staff & Non-Mgt Staff: Joining Report, Personnel information & bank Account

letter is received by RHD. Or Non-Management staff request is forwarded to GM HR & A

and for Management Staff to the OD Department.

Employee Number: From their onwards candidates get their position Numbers and are

entered in SAP and eventually get their Employee Number.

Employee ID card:

Temporary card : Filled forms are submitted to the RHD with requisites , who verifies

them and issues a Temporary Card to the Employee

These filled forms are then sent to the Dir Security who prepares the ID card and sends it

to the RHD.

RHD hands over the ID card to the employee and Temporary Card is taken back and

returned to the Security Department.

Issuance of ITS Equipment:

For the Issuance of IT Equipment a request is forwarded from RHD IT Department. IT

department forwards the request to Procurement Department. After purchase the Procurement

department sends the Equipment to the IT dept for Installation.

The Installed equipment is sent to the RHD by the IT Dept, where it is handed over to

Employee and receiving is obtained.

37

RHD, for smooth and efficient operations maintains a pool of IT equipment; for this purpose

the requisition for IT equipment is sent to IT and Procurement department 2 months in

advance.

3.3 Recruitment and Selection at PTCL:

3.4 Compensation:PTCL employees are divided into three categories on the whole that is:

1. New Terms and Conditions (NTC).

2. New Compensation Pay Grades (NCPG).

3. Regular.

The total number of employees at PTCL are 2600, 8400 and 20000 under categories 1, 2 and

3 respectively. NCPG and NTC employees are salaried under same general formula that is:

Basic pay + House rent + Utility allowance.

Where as the Regular employees follow the compensation plan as that of government

employees.

38

Position Defined Budget Approval

Advertisement

Receiving CVs Short listing Candidates Panel members decided

Conducting interview

Consultation with the concerned department

If selected confirmation from candidate

EvaluateAppointment letter

Orientation

PTCL is offering 45 types of different allowances to its employees besides the basic salary.

Out of these 45, employees get a combination of 9 to 10 types normally that are included in

their pay depending on their designations, category under which they are working and the

location of their work. Some of the allowances can be common to all employees like medical

allowance for all the regular employees is Rs. 400. The number of allowances increases with

the level of designation. Some of the compensations and allowances are mentioned as under:

Free Service Telephone Connection (FSTC) is given to the employees through land line

but differs in the number of free units provided according to the designation.

General Managers and above level of employees are given the mobile phones and mobile

cards up to the limits according to their designations.

Headquarters allowance is given to all the workers that are working at headquarters.

Gratuity that is one month basic pay is calculated for the regular employees for every

completed year and is given to the employees in the end of their service.

Benefits:PTCL provides the following benefits to the employee as per the policies which are

subjected to change from time to time as per management decision. Some major benefits are

the following.

1. Medical:

Employees and their dependents are entitled to free medical facility as per the company

policy.

2. Telephone Connection:

Employees shall be provided with official telephone connection at residence, DSL

connection, Free Cell Phone set connection and credit amount according to their entitlements.

3. Leave:

Employees are entitled to annual leave.

4. Leave fare assistance: LFA shall be provided to the entitled employees as per company

policy.

5. Gratuity: The employees shall receive gratuity for every completed year of the service on

the expiry of the appointment.

6. Car Maintenance allowance: CMA shall be provided to the entitled employees.

39

7. Travel Allowance: PTCL provides travel allowance to the employees for official trips

according to the entitlements.

Performance Management system:As in PTCL there are regular an NTC employees, to appraise the regular employees the

method used is annual confidential report (ACR).But as discussed with regular employees in

the organizations this system is not utilized effectively i-e the employees are promoted,

transferred or referred for the training. And there is no time period defined when the ACR’s

are conducted. It may be after one year and even when discussed with employees some of

them have not been evaluated since the last 5 years. As for as the NTC employees are

concerned the method for evaluating the performance as named by the PTCL’s management

is 180 degree, in which first the reporting officer(immediate boss) evaluates the employee as

criteria defined in the appraisal form and then the reviewing officer is going to evaluate the

appraisal form.

Estate Management:This department was established about 3 years earlier means soon after the privatization to

solve all the land related problems. This department is actively working since last one year.

In one year this department has solved about 3384 land issues and about 162 issues are

pending. The reason for the establishment of this department is that earlier Pakistan post and

PTCL were working together after the independence. Since both organizations are working

independently but the lands were not transferred to the name of PTCL. Estate management

dept. is currently transferring the lands to PTCL and has resolved many issues.

Clearance Help Desk:Just like RHD which is also a one window operation that facilities the incoming employees

but the difference is that CHD exists to facilitate the outgoing employees. So that they can

easily get the clearance certificate CHD comes in to action when an employee either resigns,

retires, terminated or expiry of contract. If any of these activity is going to happen. If any of

this activity is going to happen then the HR manager sends mail to the concerned department

40

manager, senior manager, GM, EVP and SEVP. And also mails it to the HR department,

where manager, senior manager, GM, EVP and SEVP (HR & A) and checks that every thing

is clear from the employees side to the PTCL as well as from the PTCL to the employee side.

The employee resolves all the issues regarding to leave encashment; gratuity etc. And the

PTCL checks all the issues like Advances (House building advance, motor ca allowance etc),

PC and personal equipment, car/ motorcycle (with keys and registration) mobile phone, keys

of office cabinet, library, residential phone status, departmental identity card etc. Once the

clearance process is completed, the notification is issued and employee gets the clearance

certificate and he/ she is given the dues if any (in case of dismissal or retirement) and if

transferred in now ready to join the other department.

3.5 Working Experience:Internship is a program where students are taught general procedures of organization.

Because the internees are not part of organizations as other employees are, so some secrets

are kept and essential information is not told to them. Because of this experience in internship

is different then working for the organization as an employee.

As far as my internship is concerned, it was a great experience of gaining knowledge about

telecommunication industry and the accounting system of PTCL. First of all let me tell my

fellows that getting internship anywhere is very different unless and until you do not have

any reference. In PTCL here first they see the academic background of the student, second

comes the reference. With all the above starting points, what I really mean to say is taking

entrance in big organization is not simple, one should be capable from all aspects.

It is important to tell that with the privatization of the biggest information and communication

technologies company Pakistan Telecommunication Company Limited this industry has

attracted many new foreign companies like Telenor and Al-Harid to start their operation in

Pakistan. These new companies have generated job opportunity for the competent and

hardworking smart people to contribute towards their growth. MBA’s with HR background

and experience of Telecommunication sector makes you to earn money and get in to

community of professional.

During my course of internship, I had chance to observe closely that how real

professionalism take place in any organization. I learnt that how much the time is important

41

in organizations. It is the time management that makes an organization capable of completing

its tasks in a professional manner. So the trainees should also develop these skills.

Another important aspect of organization, which I learnt, is teamwork. Working in large

organizations cannot be done without efficient teamwork.

3.5.1 Learning / Achievements:

Positive and Negative Points Which I Learned:

During the internship period, I got the chance to learn a great deal about the various

procedures and regulations observed at PTCL. Some were good and some need to be

improved in my opinion. These things learned are the key points that are not to be found in

any university, school or books.

Positive Points:

I got the chance to observe how employees behave in organizational culture.

The internee must not take the task he cannot perform in the efficient manner because that

will bring a bad name on his part.

I have acquired the ability to adapt myself with the changing taking place in the

environment.

I have been involved in various activities that have helped me to acquire coordination

with other staff members of the department.

Senior staff members are mentors so the internee must follow their instructions and

always welcome their advice.

The internee must have good communication skill because he has to provide his

supervisor complete information and also needs to focus on the performance of the tasks

assigned to him.

I learnt that employees work better in friendly and co-operative atmosphere.

Negatives Points:

When the internee goes to the practical work place from the university area, he seeks

proper guidelines from the senior staff that is not provided to them.

In an office environment, there is a personal bias which lead toward communication gap

between employees and that goes on for years.

42

There is lack of positive synergy among the employees that prevents them to work

collectively and achieve excellence.

Employees of the organization keep their personal goals ahead of the organizational goals

and tend to protect each other when some one breaks the organizational rules.

The employees Most of the employees of organization are not technology oriented and

they avoid using latest technology.

3.5.2 Systems, Applications and Products (SAP) at PTCL:

SAP was founded in 1972 in Walldorf, Germany. It stands for Systems, Applications and

Products in Data Processing. Over the years, it has grown and evolved to become the world

premier provider of client/server business solutions for which it is so well known today. The

SAP R/3 enterprise application suite for open client/server systems has established new

standards for providing business information.

Due to deregulated market, increase in competition, to retain the subscribers, responsiveness

to the customers and due restructuring PTCL’s management considered it important to

implement system application program at PTCL. This project has a total cost of Rs. 2 billion

and its implementation will take 20 months. SIEMENS engineering company will be

implementing SAP at PTCL

SAP at PTCL will be implemented in the following functional areas.

Financial controlling (FICO)

Material Management (MM)

Human Capital Management (HCM)

Network Life Cycle Management (NLCM)

As I did my internship in HR department so I got the information about the module of SAP

utilized in HR. As mentioned earlier the module of SAP which is used in HR

Department is named as Human Capital Management (HCM).

HCM is performing core function in the following areas;

Retirement

Vacancy Planning

Time and Attendance

43

Payroll

Benefits Information

And HCM is performing strategic functions in the following areas;

Recruitment

Performance appraisal

Qualification Updates

Employee training

Salary increment and promotion

Career planning

By implementing SAP at PTCL its workforce is reduced up to 50 %.

Why SAP?

The main advantage of using SAP as the ERP system of the company is that SAP has a very

high level of integration among its individual applications which guarantee consistency of

data throughout the system and the company itself. In a standard SAP project system, it is

divided into three environments, Development, Quality Assurance Sand Production.

In order to minimize your upgrading costs, the standard programs and tables should not be

changed as far as possible. The main purpose of using standard business application software

like SAP is to reduce the amount of time and money spends on developing and testing all the

programs. Therefore, most companies will try to utilize the available tools provided by SAP.

SAP is table drive customization software. It allows businesses to make rapid changes in their

business requirements with a common set of programs. User-exits are provided for business

to add in additional source code. Tools such as screen variants are provided to let the clients

set fields attributes whether to hide, display and make them mandatory fields. The table

driven customization are driving the program functionality instead of those old fashioned

hard-coded programs. Therefore, new and changed business requirements can be quickly

implemented and tested in the system.

44

SAP with Small Business Enterprises:

SAP has been working with over 10,000 small businesses to help them reach their goals. In

fact, more than 65% of SAP customers are small- and midsize companies. SAP Business

One, designed exclusively to meet the needs of small businesses, is an integrated, affordable

business management application. It's a single system that can automate critical business

operations, such as sales, finance, purchasing, inventory, and manufacturing. And it provides

accurate, up-to-the-minute views of business data. SAP Business One is easy to buy, quick to

install.

Implementation of SAP:

Every industry has its own unique business processes, requirements, and challenges. That's

why SAP offers industry-specific solutions to meet the needs of the organization.

SAP Business All-in-One provides a proven platform – based on SAP ERP and SAP Best

Practices – which partners can extend, using their industry expertise and services. SAP offers

more than 700 qualified partner solutions in more than 50 countries, spanning all major

industries.

Data migration strategies in ERP:

Data migration is the most important activity determining the success of an ERP

implementation. Effectively migrated data is a demonstration to the stakeholders that the ERP

system is an accurate reflection of their current organization. This increases their confidence

in the system and in turn is a key factor in the ultimate success of ERP implementation.

Unfortunately, in many cases, this important activity does not get the kind of serious attention

that it deserves. The problem can be traced to the lack of a planned approach to data

migration.

Advantages:

With SAP ERP Operations, the company can:

Automate and streamline operational processes with greater adaptability and ensure faster

adoption of new releases and changes in business processes

45

Increase productivity in your operations with a role-based solution and centralized

information. Improve operations performance with strategic business insight. SAP enables the users to solve work challenges with business management software Help the companies to evaluate the cost of business management concerns. Provide the power to adapt quickly to changing industry requirements. Avoid project and business risks Decrease support costs with faster and higher acceptance among end users Achieve operational excellence and growth

Disadvantages:

Usually many obstacles can be prevented if adequate investment is made and adequate

training is involved, however, success does depend on the skills and the experience of the

workforce to quickly adapt the new system.

The need to reengineer business processes

These systems can be costly for some organizations to install and run

It is an expensive system for some of the organizations

46

CHAPTER # 3

RECOMENDATIONS AND CONCLUSION

47

4.1 RECOMMENDATIONS FOR ORGANIZATION

1. Training:

Training is very much needed for new employees so organization must have focused on

proper training for new employees and if it launches a new application system as like SAP

then training for all needed employees.

2. Discrimination:

There is discrimination between employees for some core issued as promotion. This needs to

be corrected and there should be an equal promotion opportunity.

3. Reduce politics:

In this organizational setup there is lot of policies which employees have to follow it other

wise they shall be terminated from the job. So these policies should be reduced and taken

care off and tried to be minimized. Promotions should be given on performance and they

should be justified so that other employees are not de-motivated. Organization must focused

on gap between employees and try not to expand it a lot other wise it will create problem for

both organization and employees

4. Technology:

Technology is changing in very next moment. Organization must have futuristic plan to come

over the futuristic problem and aware to its employees as much as they can by providing the

necessaries information

5. Teamwork:

Teamwork is an effective way to get the best out of the employees so teamwork should be

applied. Different people have different ideas and different ways of analyzing things.

6. Network Expansion:

Mobile networks are reaching those areas where PTCL lines have not reached. PTCL should

focus on capacity enhancement to cater for the market demand. Until PTCL expands it

network it would not be able to capture the Market.

48

7. Quality Services:

PTCL should provide uninterrupted telecom services to PTCL customers and other operators.

Customer complaints should be taken care of as soon as possible. There should be an

automated billing data collection system introduce so data will be updated very quickly and

efficiently

4.2 RECOMMENDATIONS FOR CONCERN DEPARTMENT (HR)

1. Properly Place Employees:

Employees should be properly fitted within the organizations as well as their jobs. Proper

recruiting and selection techniques should assist in creating this match. HR department fulfill

the need of individual and addresses them individually.

2. Set Achievable Goals & Rewards:

The achievable goals must be set within the organizations for the employees so that

employees can do them by taking them challenging. Proper feedback must also be necessary

at this stage. The rewards must be paid to the individuals for their performance. The rewards

may either bye in form of monetary or something other than that. Each reward must be shown

to be the result of achieving organizational goals

.

3. Flexible Working Hours:

Flexible hours must also be provided to the employees at the organization, whereby the

employees contract to work a specific number of hours a week but are free to vary the hours

of work within certain limits. HR department also focus on home work for those who can not

work proper in the office environment so department provide them needed tools so that they

can work at home very effectively

Benefits :

The employees will be entitled to overtime at double the ordinary rate of basic pay and cost

of living allowance, house-building and motorcycle advances, burial charges, marriage grant

and education grant in accordance with prevailing company regulations and policies.

The employees can also apply for allotment of PTCL quarters and allotments will be made in

accordance with the entitlement, seniority and company rules.

49

 

CONCLUSION

In the end of my report, I would like to finish up of my internship experience by saying that I

had great experience of working in Pakistan Telecommunication Company Limited. During

my internship I came to know lot of things related to working of PTCL but also how to work

in professional environment. With the help of this experience I think I would be able to work

any where with the help of my communication skills and knowledge.

While working with officers of PTCL-Headquarters, HR Department I learned lot of new

things and observe theoretical strategies of Management, Human Resource Management

being put in practice. PTCL being a service organization, cannot afford lose any customers.

Customer’s satisfaction is therefore the most important element of telecommunication. So

that’s why they have said this year to customer care year.

In the end I am very much thankful to Pakistan Telecommunication Company Limited for

providing me such a great opportunity of working and employees for their supportive

attitude.

50

REFERENCE

Abbas, F. A. (2009). Central payments : Orientation report. Unpublished manuscript, Pakistan

Telecommunication Company Limited, Islamabad, International Revenue Department

Jabeen, A. (2008). Orientation report Unpublished manuscript, Pakistan Telecommunication

Company Limited, Islamabad, Advisory Section.

Marvin, W. (1973) Effects of personnel turnover, employee qualifications, and professional staff

ratios on administrative intensity and overhead. Sociological Quarterly, 14: 359-358.

Pakistan Telecommunication Company Limited, (2008). Third Quarter Report. Islamabad,

p.13

Wikipedia (n.d.) Ufone Retrieved July 21, 2008, fromhttp://en.wikipedia.org/wiki/Ufone

.

Pakistan Telecommunication Company Limited, Annual financial report. For the Year 2008-

09

51