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An Analysis of Mobilinks Performance Appraisal System

A Career Planning & Management Project

Contents
Mission Statement .............................................................................................................................3

Vision ................................................................................................................................................4 History of Company ...........................................................................................................................4 Values ...............................................................................................................................................5 Products of Mobilink ..........................................................................................................................5 Services offered .................................................................................................................................5 Major Clients/Customers ...................................................................................................................6 Number of Customers ........................................................................................................................6 Competition.......................................................................................................................................6 Major Departments ...........................................................................................................................6 Human Resource Management Department .......................................................................................7 Mission Statement .........................................................................................................................8 Sections .........................................................................................................................................8 Strategies.......................................................................................................................................9 HR Practices ................................................................................................................................. 11 Performance Appraisal ................................................................................................................. 11 Objectives of Performance Appraisals ....................................................................................... 12 Appraisal Policy ........................................................................................................................ 12 Performance Review................................................................................................................. 12 Appraisal categories ................................................................................................................. 12 Sources of Performance Appraisal ............................................................................................. 13 Feedback .................................................................................................................................. 13 Training and Development ........................................................................................................ 14 Training Methods ..................................................................................................................... 15 Types of Training in Mobilink .................................................................................................... 15 Performance Measurement System .......................................................................................... 16 Career Planning & Development ............................................................................................... 17 Promotion Policies.................................................................................................................... 18 Bonuses ................................................................................................................................... 19 Reward System......................................................................................................................... 19 Conclusion ....................................................................................................................................... 20 Recommendations ........................................................................................................................... 20 References .................................................................................................................................................. 23

Mission Statement

To be the unmatchable mobile system of communications in Pakistan this provides the best value to its customers, employees, business partners and shareholders. Vision To be the leading telecommunication services provider in Pakistan by offering innovative communication solutions of our customers while exceeding shareholder value and employee expectations History of Company
Mobilink is a subsidiary of Orascom telecom. Orascom telecom is headed by Egyptian based chairman Mr. Naguib Sawiris. It was founded to achieve a fundamental target to build one unique telecommunications entity of Arab identity. In its effort to fulfill its regional strategy, Orascom Telecom now has 20 operating licenses; 5 in Arab countries (Egypt, Jordan. Syria, Yemen and recently Algeria) one in Pakistan and 15 in central and sub-Saharan African countries (cote D Ivory, Zimbabwe, Chad, Congo Brazzaville, Zambia, Uganda, The central African republic, DRC, Togo, Benin, Chad, Gabon, Burundi and Niger). It adopted Mobilink in June 2000, since then it has seen a dynamic and full throttled speed of development and prosperity. PMCL (Pakistan Mobile Communication (Pvt.) Limited) was set up in 1994 with its head quarters in Lahore. PMCL is a joint venture between Motorola incorporated and Saif Media Group. Mobilink first launched its services in Lahore in August of 1994. Since then the network has grown and now Mobilink covers thirty-nine cities. Mobilink uses Motorolas infrastructure and upgrades through technological support and advancement. Seeing that Motorola is the worlds largest manufacturer of cellular phones and the second largest company in cellular infrastructure, it is the cornerstone of the Mobilink

structure. It has already achieved the 6- sigma level of quality i.e. three defects per million parts.

Values
Trust and integrity Commitment to total customer satisfaction Team work and respect for people Passion or business excellence Responsible corporate citizen

Products of Mobilink
Mobilink have two products Jazz Indigo

Services offered
MOBILINK GSM has always been the market leader when it comes to introducing state-of-theart communication solutions for its customers. We are continuously adding up to the range of our Value Added Services, all for your convenience. Following are the major services
Caller time identification Call waiting Call holding Call forwarding Short messaging services Fax and data services International rooming

News information services Mobilink(GSM)G mail Superior security in billing Mobile TV Entertainment & many more

Major Clients/Customers
Mobilink has about 53% market share.

Number of Customers
Total numbers of subscribers are about 12 Million. The major customers are from jazz package.

Competition
The Company is facing competition from all operators in telecom including SGM (Global System of mobile) operators, CDMA operators and LDI operators and land line operators. All these telecom companies are mobilizing their Human Resource Departments to ensure a constant supply of new and efficient employees. Therefore, there is stiff competition in the telecom market for Mobilink. Major competitors include, Telenor Ufone Warid Zong

Major Departments

Finance Department
Credit and collection Procurement imports Revenue assurance

Customer Services Department


Customer services operations Customer services system

Commercial Department
Marketing Direct sales Indirect sales

Technical Department
Switching Operations / operation support Logistics Infrastructure Systems planning

Information Technology Department


Billing IT

Human resources Administration and legal affairs & government relation department Internal audit department Customer services

Human Resource Management Department

Mission Statement To lead the organization in enhancing its human capital and create a winning environment where everyone enjoys contributing to the best of ones ability.

Mobilink plans to achieve this by:

Inspiring and motivating its people. Developing its people to strive for higher standards. Driving an open minded and enterprising corporate culture where people through leadership at all levels dare to dream, dare to try, dare to fail and dare to succeed. Attracting and recruiting the best talent

Mobilink has a very defined and well structured department and its various policies of keeping each employee productive part of the organization are intoned with the corporate worlds requirement. Employees in the company are largely committed to their organization and have shown progress in the company. Employees are satisfied with the HR department of Mobilink GSM Company. Humans are the basic tool for having competitive edge in the market for most of the organizations and Mobilink is one of these. Mobilink has one of the best HR systems in Pakistan that gives it an edge over its competitors.

Sections

HR department of Mobilink has three sections. Employee Services Payroll information Leave and medical record Final settlements and provident fund Policies and procedures Employees record and recreation OD & Effectiveness Training plan Talent management Performance management Employees retention Orientation employee communication Staffing and Compensation Staffing plan and HR budgeting Management trainee and internship program Interviewing and selection Headhunters Compensation, benefits and incentive Strategies Human resource department is putting its efforts towards nurturing a winning corporate culture and building organizational capabilities by ensuring that its people at all levels are both able and willing to perform at consistently exceptional levels. At MOBILINK the people have been empowered to a large degree by minimizing out dated rules /regulations and plan to further eliminate the bureaucratic barriers to capitalize on their ingenuity and talent. HR strategy refers to the specific human resource management course of actions that a company pursues to achieve its objectives. But how these strategies/policies/practices are formulated and implemented at Mobilink. There is a whole process behind this. The top team continues to play its role in providing the guidance and support to people at all levels. The HR (peoples) function ensures that it leads the transformational change by nurturing a climate, which would help in converting the huge potential at disposal of the company into world-class performance.

The active and effective role played by HR in people development at different levels organizational, departmental and individual is considered in MOBILINK to be one of the most critical factors leading to the development of a winning corporate culture. The effort continues to be directed towards developing the skills of the shop floor employees, improving competencies of Business Support Officers (BSOs), and enhancing the leadership qualities of managers. Like most big organizations, the development of HR Strategies is also done in accordance with companys mission. First, Strategic planners analyze what actually is the p revalent culture of the organization, what are the strengths, weaknesses, opportunities, threats (SWOT analysis) of business and its market, and on the basis of all the above analysis, companys strategic plan is established. In the end Based on these HR strategies, HR policies and practices are also formed and implemented. Any abrupt change in the market requires the organization to follow this analysis in order to be successful. That why organizations continuously keeps on updating their strategies and policies. Whole system for development of HR strategies/policies/practices is as below:

Mobilinks Competitive Environment Economic, Political, Demographic, Competitive and Technological Trends

Companys Strategic Situation

Companys Strategic Plan

Companys Internal Strengths and Weaknesses

Organizational Performance

Companys HR strategies

Formulation of HR policies

Formulation of HR practices

HR Practices Some basic HR practices being carried out at Mobilink are,

Planning Recruitment Selection Performance Appraisal System Compensation Training & Development Career Planning and Development

Occupational Health and Safety measures Research and Development Reward Management Employee Relations

Performance Appraisal Reviewing performance and taking positive steps to develop employees further is a key function of management and is a major component in ensuring the success of the company through effective employee performance. Although the appraisal process is conducted at each department by their own supervisors through interviews or written forms, the screening process is carried out by the HR department itself. However, due to certain policies of the management, the confidentiality of the system is very high. Though we did manage to gather some information regarding the system and how it leads to the development of the employee, we were not able to attain the complete system with supporting data. A review is about ensuring people know what levels of performance are expected of them and then taking action to ensure they are trained and developed to perform effectively.

Objectives of Performance Appraisals


To measure the work performance To motivate and assist employees in improving their performance And achieving their professional goals To identify employees with high potentials for advancements To identify employees training and development needs To provide a solid path for career planning for each individual

Appraisal Policy The intent of these appraisals is to review current job performance and responsibilities, set goals and discuss further opportunities with reference to past performance at Mobilink.

Performance Review At MOBILINK a review is intended to be an open and frank discussion between an employee and their Team Leader/Manager. Generally there are two elements: First is the element in which discussion takes place over the strengths and areas which need to be developed as displayed by the job holder over the past 12 months. The performance is of course judged comparing the performance against the core indicators of Job. The second element is concerned with discussing the training needs/inputs activities that are considered to be appropriate to help the jobholder overcome some of development areas discussed in the review and also those activities that are deemed appropriate to build upon their current strengths.

Appraisal categories

Appraisal category

Definition of category Indicates exceptional performance Indicate performance that consistently meets the requirements of the position, very good indicates the individual is on track for advancements

% Of total numbers of employees which can be rated in this category 15%

1. Expert

2. Very Good

10%

3. Good

Indicated performance that requires improvement (i.e. meet requirements without initiative or advancement)

8%

4. Basic

Performance to be improved (hardly meets requirements)

5%

Sources of Performance Appraisal At Mobilink the primary sources of performance appraisal are the managers and secondary sources are employees themselves. Though the peers also give their opinion but it usually does not have any consideration unless a conflict arises between the manager and the employee.

Feedback

Workers at MOBILINK are informed of their performance and given the opportunity to express their opinion over their own level of performance against each competence. This serves the following two main purposes: It enables the reviewer to redefine whether the initial assessment was correct, as circumstances may exist that the reviewer is unaware of. By asking the worker what he sees to be his own strengths and development areas often help to reduce negative responses and makes planning training needs/inputs activities easier if the person is able to express for himself the areas in which he feels he can improve.

Training and Development The second step of the appraisal process after reviewing is the training and development of the employee. Now Mobilink focuses keenly on the weaknesses of its employees in order to identify and eradicate them.

Training is a planned effort to facilitate employees learning of job-related competencies and overcoming their weak points. These include knowledge, skills or behaviors that are critical for the successful job performance.

At MOBILINK, there is a continuous assessment of the technical and managerial skills. For the further enhancement of these skills formal training programs are offered at all levels. The employees are provided with opportunities to put these skills into practice, in preparation for the move to a managerial role.

Training is viewed at MOBILINK as a way of creating intellectual capital. Employees are expected to acquire new skills and knowledge, apply them on job and share this information with other employees. The training is cross-functional for sharing of skills.

The employee are trained periodically either locally or abroad according to preplanned schedules. The objective of such training is to upgrade the capabilities of employees. If an employee attends an overseas training then he/she has to serve the company for a certain period after the date of completion of training subject to the cost and duration of training itself. In case an employee leaves the company during this period he/she will have to pay the amount specified at that point in time. Training Methods On Job Training Special Training Sessions Team Building Problem Based Refresher Courses

Types of Training in Mobilink On a general basis the training done in Mobilink can be divided into two categories: Soft skill training Technical Training

Soft Skill Training Helping your employees develop a stronger base of knowledge on topics that affect their personal lives can make them more productive and less distracted in their jobs. Soft skill development courses in areas like personal finance and childcare can help your team better manage the most important areas in their personal lives. This may include the following things for e.g. Conflict management training People management training

Communication skills Anger management Time management training Teamwork training etc

Technical Training This type of training has direct effect on the job of the employee. Specific skills are focused and developed accordingly. The engineering trainings of Mobilink are also included with this along with Customer Services training Sales related training Marketing and technology training etc.

All these types of training are done to enhance the employees job skills at the level he is at. Training programs leads to: Leadership Influencing Creative Problem Solving

Performance Measurement System Strengths: Though the management claims that their Performance Measures are congruent to strategies, reliable and acceptable but they emphasized that the main strengths of their systems are the validity and specificity. Validity: The performance measurement systems used at PMCL are valid. As stated by the management, the core job areas extensively. They are not only aligned with the companys

strategic objectives but are also free from deficiency. Contamination is acceptable as a few things extra from the actual job requirements are expected. Specificity: The performance measure used at PMCL has a very high specificity because it guides the employees as to where they lack and how can they improve.

Career Planning & Development Mobilink faces much competition in the telecom industry so now they are focusing on career Management of their employees in which they enable the employees to better understand and develop their career skills and interests and to use these skills and interests most effectively both within the company and after they leave the firm. Career planning is the deliberate process through which someone becomes aware of personal skills, interests knowledge, motivation, and other characteristics; acquires information about other opportunities and choices; identifies career related goals and establishes action plans to attain specific goals. Career development is the lifelong series of activities (such as workshops) that contributes to a person career exploration, establishment, and success. Mobilink gives promotion to their employees on the performance basis. The Mobilink HR department develops the employees career development plans in which the HR department predicts the next logical step for their employees within five years. Importance of Career planning in todays competitive world is as important as any other HR function. Retaining your valuable Human resource today is one of the biggest challenges that organizations are facing. So, HR needs to come up with new strategies. Career planning and development is one of the basic tool and strategy organizations are using for retaining their employees. This function actually makes employees feel that they are important to the organization and Mobilink wants them to be at the top in their careers. However, at Mobilink this function is not fully performed or we should say this function is not performed satisfactorily. There are some policies on these but those are not recognized that

well. One point of policy is found along with the compensation other with the recruitment. There should have been separate head for these policies. As far as the practices are concerned, all the employees were reluctant to talk about this during our interview. However, what we analyzed is that career development is practiced but not that openly. Specially, in case if some employee is considering of joining the competitors firm. If such is a case then organization has discipline policies for that even. 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. Promotions are also reward management technique to motivate employees. In MOBILINK promotions are based on the merit and seniority (experience) basis. The one who performs well consistently over time gets reward in the form of promotion.

Bonuses The employee may receive 1 to 3 month bonus subject to evaluation of accomplished objectives. In Mobilink the reward system is based on the individual performance and individual employee performance is judged for the reward. The manager of respective departments recommends a candidate from his section for the reward purpose to HR. Reward System Mobilink considers its employees not just as a cost but also as a resource in which the company has invested from which it expects valuable returns. Pay policies and programs are one of the most important human resource tools for encouraging desired employee behaviors. The advantage of paying above the market average is the ability to attract and retain the top talent available, which can translate into highly effective and productive work force.

The incentive schemes and incentive objective have been clearly communicated to all individuals and depends on their performance and appraisals. Intrinsic and Extrinsic rewards include: Smart/Quality work Exceptional performance in a project Targets achievements Special assignments Medical care Life insurance Vacations Relocation Credit advance policy provident policy/advance against provident fund and a capping of gratuity Recreation Club Policy Travel

Education assistance policy Mobile phone Business mobile phone policy Official Blackberry Policy Life insurance Medical entitlement

Conclusion
Mobilink exhibits a strong appraisal system. Although it is difficult to analyze and assess the whole system on such less information, the extent of confidentiality is understandable owing to the need of a competitive advantage. However, it can still be deduced that the system in place is effective and yielding results as Mobilink is the market leader in the telecom sector in Pakistan.

Recommendations
To establish core competence and to bring competitiveness, Mobilink should implement numerous effective plans to improve the performance of its various departments. Supervisors must manage employee performance well in order for Mobilink to accomplish its mission and achieve its goals. Following are some recommendations for Mobilink, Effective Performance Management

Performance management is one of the most important parts of a Supervisors or team leaders job. Developing skills in performance Management is wise investments that will help Mobilink achieve its Goals.

Managing employee performance includes: Planning work and setting expectations Monitoring and measuring performance Developing the capacity to perform Periodically rating performance in a summary fashion 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:

Communication Establishing and maintaining effective communications with each Employee not only requires good oral and written communications Skills, but it also includes the ability to establish good working Relationships. To communicate effectively with employees, Supervisors must establish an environment that promotes an open Door atmosphere, the sharing of ideas, and employee involvement in decision making processes. This will help in better understanding of where the employee is lacking and how the company can help him develop.

Setting Goals

Setting long and short-term goals with employees gives focus to Employee efforts. When goal setting is done correctly, employees strive to accomplish those goals and feel confident in achieving them. When goal setting is done poorly, work does not progress as desired. Knowing how to set goals effectively is an important part of Performance management. To do this well, supervisors need to be able to clarify expectations and to set realistic standards and targets. Measuring Employee Performance Credible measures of performance that employees understand and accept are critical for achieving high level performance. Measuring employee accomplishments, using both qualitative and quantitative measures, provides the information that supervisors and employees need in order to monitor performance.

Giving Feed Back Feedback should inform, enlighten, and suggest improvements to employees regarding their performance. Supervisors should describe specific work related behavior or results they observe as close to the event as possible.

Coaching & Developing Using their coaching skills, supervisors evaluate and address the developmental needs of their employees and help them select diverse experiences to gain necessary skills. Supervisors and employees create development plans that might include training, new assignment, job enrichment, self study or work details.

References
1. Mr. Syed Sohaib Hassan Associate Organizational Development Human Resource Department, MOBILINK, F-8/3, Islamabad.

2. Mr. Hasan Jahangir MOBILINK, F-8 Markaz, Islamabad. 3. Usman Ahmad

MOBILINK, F-8 Markaz, Islamabad.

4. Searching for overview on Performance Appraisal Searched at: www.mobilinkgsm.com. Accessed on: 18th May 2009 5. Searching for Performance Appraisal Systems Searched at: www.google.com Accessed on: 18th May 2009 6. Searching for history of Mobilink and its performance appraisal systems Searched at: www.wikipedia.com Accessed on: 19th May 2009