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ACKNOWLEDGEMENT

We are very thankful to Mr. Naveed Anjum, the course instructor, who assigned such a practical project in which we compelled to apply and use all all skills to do this project successfully. We all are satisfied from our efforts devoted to the compeletion of this project. And To

1. Mr.Jawad Ali

Recruitment & Compensation Officer, Mobilink
2. Mr.Mumtaz Ali Staffing and Compensation Associate Mobilink, Islamabad 3. Mr. Saddat Shah Compensation Officer Telenor, Islamabad

4. Mr. Faisal Ameen People Excellence Officer Telenor, islamabd

5. Mr. Fahad Jahangir People Support officer Telenor, Islamabd

For devoting us precious time, valuable information and kind assistance in this project, we will remember their kind efforts and saying bundle of thanks. THANKS Arif and group members

Barriers in the execution of this project

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The proposal of this project was about the analyzing the compensation strategies of the Mobilink, comparing these with the major competitor Telenor. The compensation strategies of such organizations are very delicate and confidential. We tried all the possible major as well as minor sources to get the access to their strategies. We are not told the core strategies which create the edge in the market, but a general overview has given. So this project finding may not be 100% accurate but we hope best for the significance of these findings. The next phase of this project of conducting salary survey of the telecom industry, targeting the HR people, We are again coming with sorry to expose that no one has granted the permission to go for salary survey. We this survey is not successful because of the limitation and business secret policies.

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Project out line
Studying the Compensation Strategies, policies and practices of Mobilink Focusing on Individual Incentives plans Incentives Plans & Group Special

Organizational Incentives Plans & Incentives Plans Job Evaluation methods of Mobilink

Studying the Compensation Strategies, policies and practices of Competitor: Telenor

Gap Analysis

Salary Survey of HR people in telecomm Sector Table of Contents

Recommendation & Conclusion

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Sr. No

Topics Preface Introduction
The Compensation Strategies of the MOBILINK INCENTIVES PLAN • Individual Incentives Plan: • Group Incentives Plan Organizational Incentives Special Incentives

Page No. 01 02 03 03 04 05 05 05 06 06 06 08 09

Job Evaluation methods:
Point Method Ranking Methods

Pay Packages and Employee Benefits
Promotion Policies Overview of Performance appraisal in Mobilink

Compensation Strategies of Telenor Telecom 11 Incentives Plans
• • • • Individual Incentives Plans Group Incentives Plan Organizational Incentives Special Incentives

Job Evaluation in Telenor Pay Packages and employee benefits
GAP Analysis
Strong & Weak Points of Mobilink Strong and Weak points of Telenor

12 13 14 15 15 16 18 18 19 23 25 26 26

Salary Survey Survey Results Recommendations Conclusion

Preface
This project is about analysis of the compensation strategies of Mobilink Telcomunication Pvt.Ltd. the market leader in telecomm sector and the first GSM Service 6

provider in the area. In this project their compensation strategies of carefully studies, analyzed critically, explored the methods and process of job evaluation and the pay structures of the Mobilink. After that the same procedure is adopted for Telenor in order to conclude the best practices among them. This is done by going for GAP analysis between the Mobilink and Telenor compensation strategies.

This project really polished out compensation Mangement skills and we get aware of the fact that needs to be kept in front while designing the HR strategies. Hence this was a really enjoyable, learning and practical experience, very much related to the application of the basic theoretical knowledge.

The Compensation Strategies of the MOBILINK
The Mobilink that claims of the major market shareholder in telecom industry has shown very traditional approach towards the compensation management. The leading organizations always try best to have a best-fit strategic approach towards the Human Resource Management within organization but unfortunately the leading organization like Mobilink is also use best practice approach in compensating approach. During this research we also come to conclude that these best practice are not fully implemented in whole soul but they are either partially implemented or just remained in name. Lets the incentives Plan being implemented in Mobilink are: INCENTIVES PLAN Incentives are designed to encourage employees to achieve objectives. They are intended to direct motivation for present and future performance, promising “ do this and we will make it worth your while”

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Incentives are generally financial but they can promise non-financial rewards such as recognition, promotion or particularly interesting assignment. Individual Incentives Plan: Individual incentives plans are those that are concerned to compensate the individual efforts that result in organizational outcomes. In Mobilink the individual incentives plans don’t exist in any form. Although this kind of incentives plan is only for the sales people in the form of commission on sale. But we disagree with them because it is individual incentive plan because this is pay at risk and where risk exists its not incentive. One other form of incentives plan is that they are paying overtime to the lower management on the hour’s basis they spent besides the duty hours. Further discussion revealed that they used to give Departmental objectives that further divided into level objectives and finally individual objectives, if the whole department objectives are met and the Company performance enhanced than they pay to all departments instead of paying right-to-right person. And if the company objectives are not achieved and individual objectives are achieved, than in this case they don’t use to go for incentives to individual or group etc. Group Incentives Plan The Mobilink prefer to team and group working. People are recognized from their respective group or team with in organization. Like sales people, marketing team, finance analysis team, finance allocation team, HR peoples, etc The group incentives are based on the objectives being assigned to each team or group. If they successfully achieved within the given constraints and also these achievement led company performance to enhance than they will be entailed for group incentives in following manner: • • • • Per unit incentives Monthly incentives Continuous incentives Remote areas incentives

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The per-unit incentives are given mostly to the sales and production teams, the units they produced and similarly to those the unit sold per/day or week. These per unit incentives are not paid to individual but to the whole team. The monthly incentives are for marketing team, Human Resource Management, and Finance for achieving their excellent performance. The monthly incentives are mostly in the form of a bonus salary, house rent or some other cash-based rewards, but mostly it is in the form of a bonus salary for every member within the team. The continuous Incentives are for those teams whose maintained and improved performance with increasing rate for three or more than three months. These are in the form of cash bonus, salaries and other benefits according to the impact of performance on overall organizational achievements. The remote areas where the basic facilities are limited, has little security etc like mountains, deserts and or like FATA. The group incentives pattern is widely spread in Mobilink and they say that we are concentrating on group incentives because to ensure internally and externally that we are unite and the culture is collectivism not individualism. Organizational Incentives The organizational performance is measured in the form or increase in Annual sales, No of subscribers, and increase in market share. The individual objectives are sequentially tied with the company performance. When company succeed in achieving these objectives. These incentives are in the form of Upper Management: Three Gross Salary in a year Lower management: Two gross salaries Special Incentives According to the Mobilink Compensation Officer, “There are very few and rare special incentives because the group incentives and organization incentives plan are designed in such a way that each and every individual is performing special”. But few types of special incentives plan are: • Recognition:

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If some one extra ordinary perform in sales or production department, they various types of recognition like 1. “Man of the year” which contain certificate and some other prizes. 2. Excellence certificate 3. Placing the name and Picture in organization top performers gallery • • Appreciation: the individual is appreciated personally by the General manager either meeting personally or through call or through email etc Special Cash Amount is given on the occasion when someone (mostly given to HR) for attracting and hiring top performers of Competitors.

Job Evaluation methods:
Mobilink uses two methods for evaluating job in order to know the worth of the job. 1. Point method 2. Ranking method The reason that Mobilink uses two methods is the importance being given to the level of management. Point Method The point method is used to evaluate the middle level management. The importance is given more to critically know each and every job worth because • The middle level is act is a bridge between upper level and lower level management. If this level is enough strong to get the stress of the upper management as well as to be enough competent to supervise and motivate the lower management to work effectively. • The middle level jobs are mostly technical and coordination nature, that’s why point method is best to know the level of competency required for each job. In this point method besides other compensating factors more and large portion of weighed is given to the “Technicality” and “Coordination” this two components or factors weight-age is about 70% in all-compensable factors.

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Ranking Methods In the top level management the Mobilink is using ranking methods because these people have higher professional profile, what the market is paying, the Mobilink tries to pay them some higher than the market, therefore the point method seems very conflicting in designing the pay structure. And there is a risk if point method is used result in decrease in the current pay, so he/she may leaves. In the lower management the ranking method is used because these jobs are mostly entry level having the specific level of skill requirement, so all jobs at entry level are ranked equally.

Pay Packages and Employee Benefits
Mobilink like other organization has three level of management. • • • Lower Management Middle Management Upper Management

The pay package and benefits are as under: Lower management 1. Basic Pay (unknown/confidential) 2. Utilities (foods, Cell phone connection and monthly allowance) 3. Transport facilities (only for females) 4. Annual Increment 5. Subsidized rate (discount at company products) Middle Management 1. Basic Pay (unknown/confidential) 2. House rent 3. Utilities (foods, Cell phone connection and monthly allowance) 4. Transport facilities 5. Annual Increment 6. Medical allowance 11

7. Subsidized rate (discount at company products) 8. Cell phone (Blackberry) 9. Learning and growth opportunities 10. Training & Development 11. Promotions Upper Management (Managerial) 1. Basic Pay 2. Annual Increment 3. Annual Bonus 4. Medical allowance 5. Car (limited Fuel & Maintenance) 6. Utilities (foods, Cell phone connection and monthly allowance) 7. Cell Phone (Black berry) 8. Laptop 9. Learning and growth opportunities 10. Training & Development 11. Life insurance 12. Promotions 13. Subsidized rate (discount at company products) Upper Management (Directors & VP) 1. Basic Pay 2. Annual Increment 3. Annual Bonus 4. Car (unlimited Fuel & maintenance) 5. House 6. Cell phone (Blackberry +postpaid connection) 7. Laptop 8. Training & Development 9. Promotion 10. Medical Allowance 12

11. Life Insurance 12. International trips 13. Social clubs memberships The annual increment is subjected to the annual performance appraisal results. Therefore this increment varies from individual to individual working on same position in same department or other.

Besides these package following facilities are provided 1. Effective working environment 2. Office facilities 3. Flexibility 4. Learning environment Promotion Policies The new company structure is in five layers, comprising associates, specialists, managers, directors and chief officers------in that order starting from the bottom and working towards the top rung of the ladder. Until approved otherwise, it would be mandatory for the employees to spend the following maximum period at each level before a promotion to the next level depending upon availability of a slot: Associate Specialist Manager Director Chiefs 3-4 years 3-4 years 2-3 years According to the president decision According to the president decision

However, employees who may not get a chance of promotion due to the non availability of an existing slot, will be compensated by being “moved over” within the new salary range specified by the company

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Overview of Performance appraisal in Mobilink The top management decides the company objectives for the particular session. The objectives are translated into the departmental objectives that are further divided and subdivided into group and individual objectives respectively. The individual performance is measured against the pre-defined objectives given individually. The individual appraises self first, than the concerned supervisor appraises it and the concerned supervisor is supervised/evaluated by other supervisor. Similarly the manager measures the supervisor’s performance, the Directors evaluate the manager’s performance and the Vice Presidents measure Director’s performance and Vicepresidents are by President. Performance Appraisal in Mobilink Company Objectives
Objectives Standards

Deptt: 1 Objectives

Deptt: 2 Objectives
Objectives Standards

Deptt: 3 Objectives

Team.1 Objectives
Objectives

Team.2 Objectives

Team.3 Objectives
Standards

In order to decide which individual, team and team was well performer to achieve the company objectives in order to facilitate the process of employee compensation in term of pay raise, increment level, incentives, training and development, a performance appraisal process is carried out to improve the compensation system fairness. Performance Appraisal Process in Mobilink
Individual’s Performance
Self-Appraisal

Individual.1

Individual.2

Individual.3

Individual.4

Individual.5

Supervisor

Sr.Supervisor 14 Manager V.President President Director

Mobilink Main purpose behind the above stated strategies and job evaluation and performance appraisal is to ensure Business Excellence in order to create competitive edge enabling Mobilink to sustain the market leader status. Let’s have a brief overlook to the compensation strategies of Telenor, a leading competitor and threat to Mobilink.

Compensation Strategies of Telenor Telecom
The Telenor entered the market with aggressive strategies at all level, never compromised on quality service and positioned as self as “Better Quality at lower possible rates” services provided in the market, succeed in capturing major market share in a very short time. The Mobilink availing the market leader status didn’t succeed in defending it status. All this credit goes to the Human Resource Management, which strategically aligned all HR practices with the core Business strategies of becoming market leader. We will here discuss only the compensation strategies of Telenor as a tool for attracting, retention and motivation of productive employees. The Telenor from the very first stages concentrated on the “Best fit approach” rather the traditional and “Best Practice Approach”. Following are the few compensation strategies because their strategies are strictly confidential and the information provider may get lost his/her job.

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Incentives Plans The Telenor uses various incentives plan. Different packages and plan are deisgned for different people and groups according to the nature of the job and the impact on the organizational achievement. The commonly used plans are • • • • • • Individual incentives plan Group incentives plan Organization incentives plan Special incentives plan Motivation incentives plan Coordination Incentives plan

Let’s discuss the features of these incentives plans and the outcomes created from these outcomes.

Individual Incentives Plans In Telenor they strongly give importance to the individual performance because it is the individual performance that enhances the group performance and ultimately organizational performance. According to their words, if we fail to identify the individual performance level, it will leads to the unfair compensation which will definitely result in de-motivation and leg-pulling in the organization which is very dangerous for organization on such stage where it has reached to the stage to take over. The individual incentives plans are based on the successfully achievement of the individual predefined goals and objectives. These incentives are in various forms like • • • • • • Commission Bonus pay Cash rewards Over-time payments Bonus one month cell phone charges Leaves in cash 16

• •

Days off Shift payment and unsocial hours

The commission incentive is tied with the sales performance or performance in production and also in customer services where the individual incentive is given for effectively treating the customer. This commission is not like a exposure of employee more pay to risk. If an employee doesn’t succeed in meeting the target, his/her she training needs are identified, trained accordingly and if not achieving performance standards after that, than job rotation technique is applied in order to make employee feel secure. Bonus pay is granted to those individual who achieve the targets which more prominent results. Bonus pay is the more successful tool for motivating each and every employee to do some thing extra ordinary. Cash rewards are also subjected to the individual performance in the group. These are given besides the group incentives for the purpose to make differentiation between the higher performer and low performer within the group but it is managed in such a way that eliminated discrimination. These cash bonus are given when group rewards are also granted. One month bonus cell charges are also used as a incentives plan to recognize the individual efforts to all the people in organization. This will act as tool for motivation. Leave in cash and day off are those incentives plan that are mostly granted to mostly every individual but the days off are only granted to those employee who over perform the performance targets. The Telenor incentives plans are not strictly tied with the company objectives achievement, if the individual objectives are achieved within given constraints than they are eligible for their individual incentives. The shift incentive plans are for those people whose service is for 24/7 times, like the customer representative officer. And unsocial hours like working on the specific festivals like Eid, Sunday etc Group Incentives Plan 17

Group incentives plan are mostly designed for the technical staff, engineers, sales team and marketing teams. These group incentives plans are • • • • • • • Project rewards Group rewards Group trips Remote areas incentives Group annual bonus Special assignment or project provision Special group meal

Projects rewards are for the project teams for completing the projects in the given deadlines of time, resources and quality. These rewards are subjected to the extent of the quality and the nature of the projects. These are huge cash bonuses for each and every member but due to individual incentive plan a slight difference may be possible. Group rewards are similar to the project rewards but its amount is lesser and it is given frequently to the technical group, Marketing team and sales team for achieving the monthly targets successfully. These are mostly in the form of cash rewards. The group trips are also used a group incentive but as tool of recognition, these trips are fully financed by the organization either national or international level. Here employees are also paid some amount of cash to go for personal enjoyment there, like shopping, playing etc. Remote area incentives are those cash and facilities provision to those teams or groups working in remote areas like mountains, FATA etc. Group annual bonus is in the form of bonus salaries to all the member of the group for showing extra-ordinary result crossing the boundaries of targets given. These are mostly given to the sales groups and production teams. Special Assignment or project provision is also a group incentive plan in the form of career development opportunities, learning and exposure in order to be eligible for the higher position in near future. It is also the form of recognition.

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Special Meal is also a form of group incentives used as a tool of recognition the group efforts. The group members are served with a special lunch or dinner in five stars of seven stars Hotel. Organizational Incentives These are those incentives granted to almost all employees when organization meets the set objectives either financial or strategic. These includes • • • Bonus pay Payments Cash Bonus Annual Cash Bonus

These organizational incentives in not limited to the one or two level of management but it is subjected to all employees according to the position and pay structures because all these incentives plans are streamed out from the pay grades.

Special Incentives The Telenor has a very distinct special incentives plan in comparison to other competitors. Following are the few effective special incentives plan not exist in Mobilink. • • Golden Hellos Golden Handcuffs

Golden Hello is that incentive plan that is used to attract the cream from the competitors. It is either in the form of lump sum payment or in phases and some times for couple of years depending on the nature of the people aimed to attract. Golden handcuffs are also special individual pay incentives used to lock the best employee within organization and eliminate the fear of being attracted or hired by other competitor. These are also in the form of lump sum; phase, couple or years cash payments. Management Incentives Plan Management incentives plan are those only for managers for achieving excellence in the management and optimal utilization of organizational resources. These incentives may 19

cover two-three years gross salaries payment or a certain amount of cash payment for fixed time period. The objective of this incentive plan is to keep the managers at optimal level.

Job Evaluation in Telenor
The job evaluation in Telenor is used in three different ways, its usage is depend on the nature of the job, demand of that job, supply of people, time and cost constraints. Generally the following three methods are used from time to time: 1. Point-methods 2. Straight ranking method 3. Paired comparison The point method is widely used method for almost all jobs evaluation for technical, coordination, production, customer services, managerial, Directors level jobs. The entrylevel jobs, sales jobs and other level jobs, the paired comparison method is widely used because of easiness and cost effective but when there is any thing wrong in such jobs evaluation is also used for confirmation. The higher jobs like Vice-presidents and present jobs are evaluated only through the job ranking method.

Pay Packages and employee benefits
Due to hierarchical and nature of jobs the pay packages and benefits plans also varies from level to level and even from employee to employee. Lower Level Management 1. Base pay 2. Annual increment 3. Variable pay 4. Individual incentives (varies due performance) 5. Medical allowance 6. Transportation 7. Location charges 8. Utilities (cell phone, limited free service, food etc) 9. Subsidized products 20

Middle Management 1. Base pay 2. Annual increment 3. Individual incentives (varies due performance) 4. Medical allowance 5. Transportation 6. Location charges 7. Utilities (cell phone, limited free service, food etc) 8. Subsidized products 9. Life Insurance 10. Annual bonus 11. House allowance 12. Training and development

Upper Management (Managerial) 1. Base pay 2. Annual increment 3. Management Incentives 4. Medical allowance 5. Location charges 6. Utilities (cell phone, free service, food etc) 7. Subsidized products 8. Life Insurance 9. Annual bonus 10. House allowance 11. Training and development 12. Projects payments 13. Car (Fuel & maintenance) 14. Social club Membership 15. Annual international trips 16. Laptops 21

Upper Management (Directors and above) 1. Base pay 2. Annual increment 3. Annual cash bonus 4. Medical allowance 5. House 6. Car (fuel & maintenance) 7. Utilities Expenses 8. International trips 9. Life Insurance 10. Social club membership 11. Two days off in a week 12. Children welfare allowance 13. Laptops 14. Cell phone and unlimited post paid connection 15. Limited shares option

GAP Analysis
Strong & Weak Points of Mobilink Strong Points The employee satisfaction level is higher in comparison to the expected range. The Mobilink has established a competent HR department consists of 40 HR professional in order to maximize the motivation and commitment level of the human resource. The Mobilink has started modifying the management style from the traditional towards modern style in which they can be able to recognize and reward individual efforts in near future. The continuous incentive plan has a positive impact on those employees who has received, trying their best to sustain this incentive for longer time and also a tool for motivation to bring up with more innovative efforts to gain this incentive that has not received.

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One other organizational incentive of “three gross salaries” compel every employees to go for best effort impact in order to ensure the achievements of organizational goals for the specific time period. Weak points • Mobilink currently ignores the rewarding of individual efforts. They reward individual efforts when the company meets the targets. If the company fails to do so, they don’t rewards those individual who successfully achieved their individual objectives. Here it may be possible that the objectives assigned by their respective department are not properly aligned with the organizational goals. So here the individual suffers on the cost of their upper management. • The reward system is not properly directed or aligned with the business objectives; the goal here should be to bring all employees to a common point in order to create synergy. Because they pay in comparison to the some international company or findings survey firm. • • • • The incentives plans are very narrow and limited. It needs to be extended in order to gain the loyalty and commitment at individual, group and organizational level. The base of individual incentives plan is very week and some time non-existing. The middle management’s incentive is also not to the extents it is expected from them. The job ranking method is the widely used method in Mobilink, although point method is also used but limited. The job ranking method doesn’t give enough information in deciding how much should be given to the individual. • The performance evaluation is also traditional; no proper performance appraisal feedback is given to the employees at the end. The training needs assessment is not tied with the performance results at lower management level. • The performance evaluation is linear process where is such dynamic organizations leaner performance evaluation is not effective because the employee’s performance is measured from multifaceted directions. • Mobilink don’t go for the implication of “Best-fit approach” but it is stuck with the initial and old ”Best practice approach”. And one thing more the “BestPractice approach” is also used partially. 23

Mobilink strategic approach is focused on to sustain or maintain the current market share in this tough competition, where is such scenario it is unwise to go for such approach. It should be focused on growth improvement.

Strong and Weak points of Telenor Telenor has proved itself as real dynamic a firm who has adapted itself in the tough competition, got major market share from the existing company Mobilink in a very short time. The Telenor has large number of strong points and few weak points.

Strong points • Telenor focused on individual performance, have made the reward system in such a way to recognize the efforts and effectively remunerate these. Therefore the incentives plans are very diverse and up-to-date. • • The arrangement is very concise in such manner that it even rewards the marginal higher efforts of individual within the teams or groups. The special incentives like “Golden Hellos” and “Golden handcuffs’ are very efficient in given them the best professional from the market and also the ability to retain them for life time. • • The performance of individual is even rewarded if the organization fails to achieve its goal. Once the individual succeed in its targets their rewards are due. The Telenor has specific incentives plan for every level and for every nature. The Management incentives plan is one of the example. This incentive doesn’t exist in Mobilink. • The job evaluation method widely used is Point-method. And that’s the reason the employee satisfaction in Telenor is more than Mobilink because the pay structure created from the point method are very concise and reflects the efforts granted. • The pay packages and incentives plans are attractive and gives more remunerations at all level. Wide range of incentives keeps the employees satisfied, committed, loyal and productive all the time. 24

It’s the outcome of compensation strategies that attracted the competent and key professional of Mobilink, and retained them for lifetime. Here the Telenor got competitive edge to have such professional whose have sufficient knowledge of competitor in deciding which business strategies can result in overtake.

The performance appraisal in Telenor is multifactor and multifaceted that ensures the proper and true evaluation of employee.

Weak Points • The employee’s interrelationship is not strong as it is in Mobilink. The culture in Telenor is going towards isolated environment where every individual will be concerned for its own self-interest. • There are two types of employees. Permanent and contract employees. The Telenor approach towards the contract employee is not so much devoted as it is for permanent employees. This may leads to the employee discrimination and the disloyalty might be result in. • Their employees are not aware of the reward policies. This is some time good but some time creates problem. The Telenor has kept confidential the compensation strategies even from the employees.

Gap Analysis (comparison) of Mobilink and Telenor Compensation Strategies

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Incentives Plan Individual Incentive Plan • • • • • • • Commission Bonus pay Cash rewards Over-time payments Bonus one month cell phone charges Leaves in cash Days off

Mobilink

Telenor

Favorable

75% 5% 10% 99% 10% 75% 50% 20%

50% 80% 65% 99% 60% 75% 50% 70%

Telenor Telenor Telenor Both Telenor Both Both Telenor

• Shift payment and unsocial hours Group Incentives Plan • • • • • • • • • • Per unit incentives Monthly incentives Continuous incentives Project rewards Group cash rewards Group trips Remote areas incentives Group annual bonus Special assignment or project provision Special group meal

80% 60% 50% 40% 30% 80% 90% 50% 30% 70%

10% 5% 5% 80% 55% 90% 99% 75% 75% 80%

Mobilink Mobilink Mobilink Telenor Telenor Both Both Telenor Telenor Both

This comparison has been drawn in order to magnify the impact or magnitude of each Mobilink Telenor Favorable incentive in both organizations. The Telenor has advantage over Mobilink in Individual Organizational Incentives incentives. The reason is that Telenor is paying more attention towards the recognition of Incentives Plan • • 99% 70% Mobilink Bonus pay Payments efforts. Its main concern is that if individual efforts are maximized, the individual 50% 85% Telenor Cash Bonus organization will grow that why it has a very distinct Individual incentive plan from the 60% 65% Same Annual Cash Bonus Mobilink.

• Special Incentives • • • •

In all other organizational, group and special incentives both organization are almost 30% 85% Telenor Golden Hellos similar in practices. But due to individual incentives it has attracted competent people 65% 70% Telenor Golden Handcuffs from Mobilink. 90% 65% Mobilink 26 Recognition Further clarity will be seen from the salary survey. This is mentioned in next chapter. 90% 65% Mobilink Appreciation

Salary Survey
In order to know the market rate of Human resource in the telecom industry, we conducted a salary survey in the following telecom organizations • • • • • Mobilink Telenor Ufone Warid Zong

Neither of the above organization provided sufficient information to make successful this survey, because of their information confidentiality issues. However the Mobilink and 27

Telenor has showed very little response to our salary survey questionnaire. The questionnaire is attached at the end of this report. The findings of the salary survey in both organizations are as under. Total number of respondents: Telenor: Mobilink: 06 04

Let’s summarize the questions and responses Respondent Job Position in the Management hierarchy Middle Telenor 2 Mobilink 3 Respondent’s satisfaction from his/her efforts Yes Telenor 4 Mobilink 4 Provision of case bonus Yes Telenor 3 Mobilink 4 Frequency of cash bonuses Once Twice Telenor 4 1 Mobilink 4 0 This bonus based on…?
Individual performance Company Performance

Upper

Lower 4 1 Don’t Know 2 0

No 1 0 No 3 0 Three times 0 0
1st and 2nd

Irregular 1 0
Pre-decided Don’t know

Telenor 5 Mobilink 0 Other non-cash benefits
Medical

0 1

0 2
Mobile allowance Insurance Food

0 0
Transport

1 1
Pension

House Allowance

Telenor 6 4 6 6 Mobilink 4 2 4 3 Organization paying level in comparison to market Telenor Mobilink Above 1 2 Middle 4 2

0 0

3 4 Below 1 0

0 0

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Pay fairness Yes No Don’t know Telenor 1 3 2 Mobilink 2 0 0 If employee were the employer than he/she will pay employees Same Telenor 1 Mobilink 4 Other facilities
Comfortable working environment

Justified 0 2

More 5 0
Office facilities Flexibility Development opportunities

Less 0 0
Learning environment

Telenor Mobilink Comments:

5 4

6 2

6 3

4 3

5 3

This salary survey indicates that Mobilink has a more stable Human resource system. The employee satisfaction is higher as comparison to the Telenor. The reason may be that in Telenor, they are only paying attention towards the individual environment where in Mobilink the team work culture is more prevailing, It’s may be also concluded from this survey that the financial rewards is not the only tool for employee satisfaction and commitment. A combination of intrinsic and extrinsic reward package should be deigned accordingly keeping the limitation of organizational policies and resources. Mobilink’s employees have the confidence in Mobilink pay rate that it is externally and internally equitable while in Telenor where a large number of employees are on contract based, are paid differently. Recommendations • • Mobilink should not tied the individual reward with the company performance but the rewards of individual is should be based on individual efforts and results. Mobilink pay structures grow more seniority. This trend may cause deproductivity in the new innovators and highly active competent people. Therefore Mobilink should minimize this rate and increase the rate of pay for performance. • The performance appraisal process of Mobilink should be more concise in the way where the employee evaluation continues for the whole year. It should 29

replace the linear performance appraisal with the multi-directional performance appraisal. This appraisal process may be set like o Planning work and setting expectations o Monitoring and measuring performance o Developing the capacity to perform o Periodically rating performance in a summary fashion o Recognizing and rewarding good performance Practicing good performance management requires proficiency in certain competencies. Competencies are observable, measurable Patterns of skills, knowledge, abilities, behaviors and other Characteristics that an individual needs to perform work roles or Occupational functions successfully. Performance management Competencies that all supervisors (and team leaders) at Mobilink Should develop and demonstrate include • The individual incentives plans should be extended up to the competitor scale in order to lock the exit of the talent from the company. And the individual goal setting should be aligned properly with the organizational goal, in order to make effective decision in giving rewards for individual goal achievements. • The job evaluation method should be set according to the culture and need of the market. The old fashion of ranking method practice should be reduced by replacing it with the point-method. This will introduce a culture of performance. • Mobilink should increase the special incentives plan and incentives for the lower management as well. Because the lower management carry out the directions of upper management accordingly. Conclusion It is concluded from this report findings that Mobilink is no doubt the market leader in HR systems but it needs upgrading, renovation and improvement in order to effective defend the competitors aggressive strategic actions. Mobilink is loosing its market share as well as key employees to Telenor because Telenor is providing attractive packages. The Mobilink should start moving towards the culture of pay for performance instead of paying for tenure of skills. This can be achieved by implementation of effective performance management and compensation system. Mobilink shouldn’t believe on its 30

current workforce but also seek for the best people in the market, because if these best people are hired by the competitors, this would result in further hardship to defend. Therefore proper performance appraisal, feedback and rewards should be ensured.

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