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Published by: num_1 on Jun 22, 2010
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 This case deals with basic Human Resource issues in the company, like issue of recruitment and selection, early retirements and performance appraisal inadequacy. The case revolves around the issue of an inappropriate recruitment and selection of employees and early retirement issues. Moreover unjust and opaque performanceappraisal system is also the theme behind writing this case study. This ultimatelyaffects the corporate culture, employee commitment and flow of innovative ideas inorganization.
Subject area of the case
Corporate Culture and Employee Commitment
Key words
Employee recruitment and selection, Corporate culture, Annual Confidential Report,Employee commitment.
Zahid Iqbal was over filled with joy when he sat on the seat, after which he was forone long year surreptitiously. At last his efforts were fertile because this becomepossible after the transfer of the former accounts officer Taimoor Shahid to the othercenter. The whole transfer case was a plot because the General Manager Mrs. Bushra Riazwas supporting Zahid and striving hard to make him take over his seat. She in returnwas proceeding with the aegis of the Managing Director, Tauqeer Razzaq. Taimoor was on vacations when he received the call disclosing the decision of histransfer and was mildly alarmed, as he had anticipated the action in advance. Thereand then he thought how would this corporate politics and hypocrisy would come toan end.
 TV3 is a public limited company. The government of Pakistan controls it. Governmentholds all its shares. The decision to establish a general-purpose television servicewith the participation of private capital and under the general supervision of theGovernment of Pakistan (GOP) was taken in October 1963. Subsequently the GOPsigned an agreement with Nippon Electronic Company of Japan, allowing it to operatetwo pilot stations in Pakistan. On November 26 1964 the first pilot station went on airfrom Lahore. On the completion of the experimental phase, a private limitedcompany, called Television Promoters Limited was set up in 1967, which wasconverted into a public limited company in 1969.Television centers were establishedin different cities.  TV3’s existing work comprises of five TV centers at Islamabad, Lahore, Peshawar,Quetta and, Karachi and an educational TV center at Islamabad and 29 RE-Broadcasting stations throughout the country, extends TV coverage to 87%population and 36% area of country through TV3 and 56.5% population and 23.6%area through TV3-2. The Board of Directors is appointed by the Government of Pakistan to manage itsaffairs. The Managing Director of the corporation, duly appointed by the Governmentof Pakistan and approved by the Board of Directors (BOD) is the administrative andexecutive head of corporation. It is competent authority to implement rules for thecorporation and its employees.
 There is no separate Human Resource Department in TV3. The Administration andPersonnel Division are presently performing the functions of HR management. TheAdministration and Personnel Division takes care of HRM functions like recruitment,training, promotion, placement, performance appraisals, establishment,appointments, Salary administration and pay packages, transfers, staff facilities,pension and old age benefits, group insurance, grievance matters, disciplinarymatters. Basically their duty is to select the employees, train them and to devise thepolicy for training the existing employees. The training, which is given to theemployees, is for the better performance. Academies are created under humanmanagement to give the training to people. One academy is to train thephotography, how to operate the cameras and how to focus the picture and scene. 
 The role of HRM in TV3 is to link the performance of the individuals towards theachieving goals and objectives of the Corporation through suitable remuneration,rewards, incentives, and paypackages to meet the challenge of retention of its experienced professionals who arereal assets and have market value in the field of broadcast management. The present era of automation computerization and specialization demands creationof a separate independent HR Department in TV3 to meet the emerging challenges of the day. However, keeping in view the importance of HR Department, TV3 hasrecently hired HR Trainees to meet the present growing needs and realization of aseparate HR Department. TV3 is keen on the following steps of the governmentpolicies in which they are working to HR Departments in all the major organizations.
 TV3’s profits started declining since 2000. The reason behind this decline was theentry of private channels as arc rivals, fierce and ever growing competition of theindustry and the low quality TV3 productions supplemented by purchases of substandard privately made serials and programs.A meeting was called of Board of Directors, Managing Director, General Managersand selected officers from all departments of different centers all over Pakistan. Thismeeting had the agenda to find the reason for declining position of TV3 in marketand ever losing customer base.But during the meeting besides quality many other reasons came to lime light andquality shortcoming was seen to be an offshoot of them.
 The basic problem was that the corporate culture of GMT was not up to the mark. These cultural flaws were because of the over priority given to “hiring from within”policy.GMT is short of well-educated employees and when these employees without proper,current and up-to-date information, if promoted to higher position cannot take overand own the responsibilities. Similarly this practice inhibited hiring of new freshgraduates. Thus TV3’s culture was depriving creativity.Another problem that came to light was the early retirements of higher officials,which had the positions of controllers, deputy controller or other. These employeesare offered higher than the market rate salaries, ranging from Rs. 70,000—90,000. They took early retirement from the organization and joined TV3 as consultants,which then were compensated in the range of Rs.100, 000-200,000. Thirdly another problem area identified was the performance appraisal system knownas Annual confidential report, ACR. This was a highly confidential and biased form of evaluating the employees. It did not evaluated employees on the basis of theirperformance but rather on the basis of the relationships they had with theirimmediate supervisors. Better the employee-supervisor relationship better the ACR.
Proposed solution

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