Topic: Subject: Principle of Management sir

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On behalf of the Board of Directors, we would like to thank all our customers, suppliers, contractors, service providers and shareholders for their continued support. We also would like to record our appreciation for the hard work and dedication of our employee’s throughout the country ho made it possible for PTCL to sustain its leading position in this challenging telecom market in Pakistan. We would also like to thank the Government of Pakistan and Ethical for their continued support in the post privatization era.




Department of management sciences of the university advised every student to submit. It was done after the completion of all subjects. The main purpose of this reports, review of the human resources techniques & systems adopted by the organization. Find out their weaknesses and give suggestions for improvements. I strongly recommend that company should improve their contact with middle & lower level employees’ especially supervisory level and establish internal performance appraisal system to avoid the future complications & to evaluate the employee performance & encourage them.

PROBLEMS: A central problem in the HRM systems of the company is lack of contact & feedback from & to employees there is alack of co-ordination between different departments of the Organization as well as into a specific branch. Another problem is lack of trained staff & political pressure for transfers/postings etc on middle management. Like wise lake of automation and state-of-the-art latest IT technology for correspondence between the contents of the company causing the delay in work and negatively affecting the overall performance of the company. I point out those weak areas, and hope that company if, adopted my suggestion and recommendation can overcome the problems. This will also benefit for the other systems of the company. TIME FRAME: 4

Finally, if the recommendations are accepted, the program could be, put into effect within six months.

“To be the leading information and communication technology service provides in the region by achieving customer satisfaction and maximizing shareholders value”


To achieve our mission by having: • • • An organizational environment that fosters professionalism; motivation and quality. Quality and time conscious customer service. Sustained growth in earnings and profitability.


Corporate Information
Managements of PTCL
1. Walid Irshaid President & Chief Executive Officer 2. Ismail Salih Taha S.E.V.P (HR & Admn) 3. Muhammad Nehmatullah Toor S.E.V.P (Finance) 4. M. Mashkoor Hussain S.E.V.P (Operations) 5. Fazal Hussain S.E.V.P (Corporate Affairs) 6. Sikandar Naqi S.E.V.P (Special Projects) 7. Dr. Sadik Al-Jadir S.E.V.P (Commercial) 8. Shaukat Hayat Javed Acting S.E.V.P (Technical) 9. Farah Qamar Company Secretary


Dr. Sajid Qureshi E.V.P (Legal Affairs

Introduction of PTCL
PTCL is the largest telecommunication company in Pakistan. This company provides telephony services to the nation and still holds the status of backbone for country's telecommunication infrastructure despite arrival of a dozen including telecom giants like Telenor and China Mobile. The company consists of around 2000 telephone exchanges across country providing largest fixed line network. GSM, CDMA and Internet are other resources of PTCL, making it a gigantic organization. The government of Pakistan sold 26% shares and control of the company in 2006. The Government of Pakistan retained 62% of the shares while the remaining 12% are held by the general public.



Head Office: -

Established on January 1, 1996 Pakistan Telecommunication Company LimitedG-8/4, Islamabad



even years into a new century, the telecom sector of world finds itself at Cross roads after changing itself almost beyond recognition over the last 25 Years. Privatization and competition are the order of the day, with a majority of countries having adopted these policies to advance their telecom sector. The results have been impressive; the industry has grown at unprecedented pace. Although there has been a phenomenal growth in Pakistan, especially in the cellular mobile communication and in the internet, yet the late density remains almost stagnant. So far PTCL is the sole land line service provider of Pakistan. PTCL is the giant of Pakistan telecommunication industry and enjoying the monopoly. This part of the report contains a brief introduction of PTCL. This introduction is divided into two parts, history and current situation.

BRIEF HISTORY:Over the years, technology has changed the concept of communication and what was thought to be a fictional only a decade ago, has actually 9

made its way through to our hands today. This is the future we dreamt of so fondly. Welcome to the modern age, of telecommunication, which have become complementary to our lives. But there must also be an anchor to introduce, allow, improve and canalize all these services and innovations sweeping through the globe. In Pakistan same anchor is Pakistan Telecommunication Company Limited from the humble beginnings of posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, to this very day, PTCL is a story of commitment and vision. Pakistan Telecommunication Corporation (PTC) set sails for its voyage of glory In December 1990, taking over operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. This coincided with the Government’s competitive Policy, encouraging Private Sector participation and resulting in award of licenses for Cellular, cardoperated Payphones, paging and, lately, data communication Services. Pursuing a progressive policy, the Government in 1991, announced its Plans to privatize PTC, and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be PTCL in two separate placements. Each had a par value of Rs.10 per share. These vouchers were converted into PTCL Shares in mid 1996.In 1995, Pakistan Telecommunication (Reorganization) Ordinance Formed the basis for PTCL monopoly over basic telephony in the country. It also paved the way for the establishment of an independent regulatory regime. The Provisions of the Ordinance were lent permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act. The same year, Pakistan Telecommunication Company Limited was formed and listed on all stock Exchanges in Pakistan. Since then, PTCL has been working vigorously to meet the dual Challenge of telecom development and socioeconomic uplift of the country. This is characterized by a clearer appreciation of ongoing telecom scenario where in 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 (U-fone & Paknet) in 1998. As telecommunication monopolies head towards and imminent end, services and infrastructure providers are set to face even bigger challenges. Pakistan also entree - post-monopoly era with deregulation of the sector in January 2003. On the Government level, a comprehensive liberalization policy for Telecom sector has already been announced now. Now PTA have issued License to two new telecom companies in Pakistan TELENOR international and WARID TEL this act will put some challenges for PTCL to cope with. PTCL is in process of enhancing organizational and business Proficiency through


vertical integration and horizontal diversification. At the same time, cross-national ownerships, operations and partnerships are being evaluated with a view to developing and diversifying the business.

Privitization of ptcl:
Pakistan Telecommunication Corporation Limited, a governmental entity is a high earning organization in the country. The Privatization Commission, Government of Pakistan had planned to privatize 51 % shares of entity through bidding. In response, the government faced stirred opposition from the employees of PTCL lead of employee’s parties and strike of about 20 days lead the knees of government down, which re-scheduled the mechanism and presented plan of privatizing 26 % of shares along with the managerial powers. The contentions of opposing the Privatization of PTCL are : The services of employees may not be safeguarded by new management The privatization is on very cheap rates as it is evident from the following rates prescribed for some installations at FCT It is a very high profit oriented organization and its share to the national economy is very high and its privatization on nominal rates would deprive the economy of a major share in future It is a sign of integrity and privatization of such an institutions would lead to the loss of national assets and foreign organizations winning the bid could change the structural system points in favor of privatization could be : though it is a profit oriented organization, yet in future by adding of numerous mobile companies the share of PTCL would decrease giving managerial powers to the new company would increase competition and consumers would be having benefit out of healthy competition The privatization will increase great amount to the economy and great


relief would occur and this additional amount could be utilized for development of certain other projects.

Changes in ptcl:
• • • • • • • Change in technology Changes in task More worker responsibility Services Packages Call rates Management

Impact of changes :
• • • • • • • • • Increase internal control on employees and performance Customers are motivated for the usage of ptcl Less national and international rates are introduced Corruption is minimized Customer complaints are handled properly Win backs customers People are more responsible now More advertising expense are incurred to market the ptcl Redemand of ptcl is created

Financial Performance
The Company posted a net profit of Rs.15.64 billion(EPS Rs.3.07) against last year's figure of Rs.20.78billion. The declining trend in profitability continued during the financial year ended June 30, 2007 due to structural adjustments brought about in the telecom sector by competition. Although PTCL Maintained its leading market share in the fixed line, there was a decrease in revenues by 5.5%mainly due to substitution impact of mobile


Expansion. There was also an increase in operating expenses by 11.7% mainly due to prudent provisions for doubtful debts and long term systematic improvements in operations and customer services. In-spite of decline in profit, the Company managedtoincrease its operating cash-flows to Rs.35.54billion as compared toRs.35.19 billion of last year .Considering the cash requirements for restructuring and development plan, your company declared a final dividend of Rs.2.00 per share for the financial

Ptcl share price:
Sale of 26 percent shares of PTCL has turned out to be the most ambiguous financial deal ever carried out in national histor The process of PTCL privatization was initiated in November 2004, when Privatization Commission invited Expressions of Interest through advertisements in local and international newspapers. Early in January 2005, 18 companies registered their EOI (Expressions of Interest), out which 3 bidders qualified for the final bidding which held on June 18, 2006.Consortium of Emirates Telecommunication Corporation (Etisalat) and Dubai Islamic Bank, Etisalat International Pakistan (EIP) gave the highest bid US $ 1.96 per share, equivalent to PKR 117.01 per share, which translates into US 2,598,960,000 (2.599 billion) or PKR 155,157,912,000.00.


Performance of ptcl for the five year



Corporate Social Responsibility: As a socially responsible corporate entity, PTCL has been pursuing different social causes to contribute to society .We have been touching upon the areas of culture, sports, music, environment and general welfare by supporting different initiatives and activities .In wake of the heavy destruction caused by 8th October’s deadly earthquake PTCL sponsored a 48-bed Eye Hospital of LRBT at Mansehra, set up free help lines and also facilitated the collection of relief goods. During the year PTCL also regularly sponsored and supported cultural activities like Basant, stage theatre, musical evenings, charity balls, sports such as Golf and Derby which contributed towards enhancing the image of


MAIN OFFICES:The Head Office of Pakistan Telecommunication Company Limited is situated in Sector G-8/4, Islamabad, which is headed by the “President”. Besides, it has Regional Headquarters like:  Islamabad Telecom Region,  Rawalpindi Telecom Region,  Hazara Telecom Region Abottabad,  Northern Telecom Region-I Peshawar,  Lahore Telecom Region (South),  Lahore Telecom Region (North),  Multan Telecom Region,  Faisalabad Telecom Region  Southern Telecom Region-I Hyderabad  Southern Telecom Region-II Karachi  Southern Telecom Region-V Sukkur  Western Telecom Region Quetta.  Switching network Central region Lahore. These Regions provide Telecommunications services to the customers in their respective areas. Apart from these, PTCL has an Optical Fibre Construction Region Lahore and Optic Fibre System Islamabad, each headed by a General Manager to install, operate and look after optic fibre systems/cable


Current PTCL Network:Installed capacity Working connections Total exchanges Telephone density per 100 population Countries on ISD/(ISD STATION) Customer service centers Card pay phone NWD stations UIA stations Total length of main optical fiber link Optical fiber short haul links Optical fiber spur links DSL connection all over Pakistan use student & commercial 527309 1

2962 2.9 242 154 387,490 2092 1898 4591km 127.2k m 3241km 530256

These are few basic facts about PTCL network. So taking over from posts & Telegraph Department in 1947 to now providing sate of art technology it is really big achievement.


Ptcl slogan:
“Feel the difference”

Core values
• • • • • Professional integrity Customer satisfaction Team work Company loyality Corporate information

Pakistan Telecommunication Company Limited not only Provides Conventional telephone facilities, it also offers optical fiber services to the private sector. We will briefly discuss below the product lines being offered by the PTCL. Basically PTCL divide their services into two parts. 1. services for consumers 2. services for corporate customers

Services for Consumers:These services are basically for the common users (Individual/home users) those use telephone in their home/work place and they are basically non business users.

New Telephone Connections:
As mentioned earlier, PTCL is presently the only telecom company, who provided fixed-line telephony in the country. So whenever, any Private business concern or any individual needs a new telephone connection for provision of telephone service. 19

Land line services
CLI (Caller’s Line Identification) Caller Line Identification (CLI): Calling line Identification (CLI) allow customers to identify the caller before picking up the phone receiver. To subscribe to CLI services, a customer needs a telephone set with display capability or a CLI device attached to the phone. Advantages:  Check on obnoxious calls.  Complete record of incoming / outgoing calls with time & date.  User Friendly

PTCL offers a variety of features to digital exchange customers like: Hotline  Abbreviated Dialing.  Call Waiting  Don’t Disturb  Call Transfer on (a) Busy (b) No Reply (c) Immediate  Wake up call  Absent Subscriber  Code Barrin



PTCL V-Fone (WLL Service) was another major area of focus for PTCL during the year. Few prominent measures taken in this area during the year were launching of free home delivery service. No line rent package was launched in September 2007. In June 2008, 30 seconds billing was introduced contributing as an effective customer retention tool. PTCL has expanded the net work to provide coverage in all large and small cities including over 10,000 villages in rural areas of Pakistan. As Vfone becomes the Wireless substitute to landline in unserved areas, it will be a robust line for voice, data and fax services for use at home and in the office. In business markets it will be positioned as the CDMA tell extension to add trunk lines to the ever expanding business PABXs. Vfone will be spearheading the launch of the new post pay and pre-pay tariffs with no line-rent to meet the market demand. The tariff will include new postpay unlimited local and nationwide calling packages to bring traffic back to PTCL’s networks to stabilize the revenues. Ufone (Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL commenced its operation son 29th January 2001 as a GSM 900 service provider. Since the outset, it has expanded its coverage and customer base at a rapid pace and established itself as one of the leading cellular service providers in Pakistan. Ufone is now considered to be one of the most active, aggressive and innovative players in the mobile sector of Pakistan .The growth of the cellular industry is a direct result of the successful implementation of the Ufone's operational performance has been very encouraging despite stiff competition in Pakistan telecom market which has led to reduction of
prices to bare minimum level. Ufone managed to improve its revenue and operating profit by 35% and 47% respectively, as compared to the last year through aggressive policies and exercising strict control over expenses.

Smart TV services : Launched for (IP)

the first time in Pakistan using the flexible Internet Protocol technology, PTCL’s Smart TV is service which allows customer to be more interactive and more in control with their TV service as compared to 21

conventional TV broadcast or cable TV. Smart TV delivers television programs to households via broadband connection and requires a subscription, a set-top box, and offe key advantages over existing cable TV. You will now be able to:

DLS:Ptcl is now leader in consumer broadband in Pakistan. Leading the country into 21st century. PTCL broadband inter net facilities for its valued customer. With effect march232009. The existing packages .it available all over Pakistan. with different packages. It’s fast and unlimited down load. Just charges 1000per 1Mb. For student. And charge 1500 per 1MB for business or commercial customer. it fast speed facilities the Pakistan people. at most 40000 people is using broadband all over Pakistan. which is great achievement for any company such like PTCL.

There is no meager competitor of PTCL in landline but with the growth of telecommunication industry of Pakistan competition increasing specially in mobile phone sector. In total there are more then 800 million subscribers of mobile phone. There are 03 big players in mobile phone industry but 3 of them are the competitor of PTCL: Mobilink  Telenor  Warid Tel Tele nor 22

Mobilink is a largest mobile phone company of Pakistan. Mobilink is currently having more then 31,958,597 users base which is the 36% of total cellular industry of Pakistan. Mobilink is basically competing Ufone which is subsidiaries of PTCL.

Telenor is another cell phone company it have 17,841,074 subscribers which is 20 % of total mobile industry.

Waridtel is also providing cell phone facilities in Pakistan. Waridtel having more then 15,114,678 subscribers which is 17% of Pakistan mobile industry.



Ptcl competitors is Wateen which is providing most popular product against the ptcl.wateen is now a days leading company in Pakistan. It not only provides landline service but also providing GSM service like


Warid tele com.its provideing greant package agint the ptcl.and making problem for Ptcl.Wateen different prodcut which is as…….. • Telephony: It is provide faster landline service agents the pt cl with the low rate of call Rs call 1.20per 30sec it price little low rather then PTCL. •

Wateen provide different types of

broadband services acc ording to the customer want and need. Rather then the ptcl provide different packages.it price and services it hight againt the PTCL Brond.its not provide Studant package whichs make little down aginst PCL

• Wateen TV:
Agent the ptcl smart TV wateen also louch V service with the DVD picture quality and provide 100 TV channel with demand.it price very agint the PTCL Tv. But this is avialbe only in Lahore not all over pakistan.

Wateen WIMA
Wateen wimax it a new services of wateen internet answer for you. No busy phone lines, no more waiting and no problems. Our 'always-on' high-speed “Wireless” connection


gives you the ability to access your favorite websites faster, and lets you experience the web at its maxi mum potential. With Internet speeds ranging from 128 Kbps to 2Mbps, surfing the Internet is a whole new experience with increased speed, improved productivity and substantial cost saving. Utilizing the trusted 802.16e standard enables Wateen’s Wireless Broadband to easily adapt itself to the needs of almost any requiremen

PTCL department
Ptcl is different Department working for benefit of PTCL and promoting PTCL services to the his customer .

 Marketing department  Customer Care & Customer Services department  HR department  Revenue departmen  One Stop Shop:  HUMAN RESOURCE DEPARTMENT

Marketing Department
Marketing Department is called a revenue-generating department of an organization. Marketing Department undertakes market research and gives feedback to management about customers needs and wants on the basis of which, products and services are developed and positioned to give value to the customers. Thus Marketing department of an organization plays a pivotal role in its business development, growth & expansion. During my internship I worked with PTCL marketing department. Through working there I gain so much practical knowledge that will help me during my practical life. For understanding the work flow and the operation of the department we have to move in 25

certain manner. We have to look the key operation the structure of the department and in the end the focus will be on the critical analysis. So we will move in the pattern describe below: Marketing strategy of PTCL  Market segmentation of PTCL  Promotional strategy of PTCL

1. Marketing Strategy of PTCL
For understanding the marketing department work flow and its function we must have clear picture of the PTCL’s marketing strategy. For developing clear understanding of marketing strategy of PTCL there is no one line statement or clear vision of marketing department so we have to move traditionally .Classically, Marketing has been all about the “four P’s”: Product, Place, Price and Promotion.

2. Market Segmentation
Basically PTCL segmented its market on two bases • To better implement customer services features, segment the market on a customer basis: – Corporate – Resident ional • on the basis of services as: – Telephony – Data – Video PTCL has segmented its market for its services and products to effectively deal with its customers. Some of its services like Universal Access Number, Co-Location centers and virtual private network are specially targeted at corporate customers and business concerns. The other services like new telephone connections, digital services etc. are meant for mass market. The services like Internet, fax facility etc. are targeted at both the corporate and general customer


Marketing Strategy
Normally, a marketing strategy identifies the target markets, the desired position in each market and the marketing mix that will persuade those target markets to part with their money. Market is targeted through market segmentation. Segmentation can be done on four types i.e. Demographic Segmentation (age, gender, race/ethnicity, household type, home ownership, education, employment, income etc.), Geographic segmentation. Positioning oneself by product can do positioning differentiation, positioning by product usage, positioning against a particular competitor, positioning against an entire product category, positioning by association and positioning by problem, Marketing Mix includes P’s i.e. Product, Price, Promotion and place.

The revenue generated by the marketing department through selling the company services/products is collected by the Revenue Department. The roles played by the Revenue Department are following.  Bill Printing & Distribution  Issuance of Duplicate Bills.  Error correction of Bills. Collection of defaulter amounts

Customer service is a series of activities designed to enhance the level

of customer satisfaction – that is, the feeling that a product or service has met the customer bexpectation. High standard customer service is an integral 27

part of PTCL’s customer value proposition. As part of strategy PTCL has invested huge some of money to improve the environment & efficiency of its service centers. With all together complete change in outlook, services to customers & facilities available, these centers are called “One Stop Shop”. They are aimed to provide better services to our valued customers for sales of products and after sales services. These “OSS” are nine in number and are in Major cities of Pakistan. By the end of this year there will be 19 OSS operational in 11 cities of Pakistan. Customer feedback about services standards at these OSS is very positive; these centers help us to provide better service to our customers

The PTCL has won repute in the field of land line & WLL services for the domestic &commercial customers .It has been achieved only due to the proper and exact functionality of the Human Resource Department .The Head of the Human Resources Department is the SEVP and his team comprises of EVP’s & General Managers of different zones .The Human Resource Department may advice the administration and the board of directors on special issues of the company and then it offers services in order to accomplish the task. The human resources are the ultimate deciders provided by the human Resource Department. It not only gives advice, offers services but also control policies of the administration.

The department first determines the need of employees to be hired .The post against ach vacancy is advertised and then the applications are invited from the applicants .If here is a post of manager cadre; the SEVP personally is the interviewer of the interviewees along with his team.


Then the qualified candidates undergo a training period under the banner of Human resource Department .There are Telecom Staff colleges at Lahore & Hari Pur. Then the specified persons are


appointed against each specified post so the best results are expected and hence the performance and good will of the PTCL is increased.

Human Resource Department of the company also deals with the transfer of the employees because the Human Resource Department knows the demands of the job and right person is employed over the right place by transferring him to that post. Health and safety matters are also handled by the Human Resource Department in the organization. As there are no apparent dangers to the employees and customers hence it is the responsibility of the Human Resource Department to see through the matter.


The work place training or on job training (O.J.T) is the key factor of the policies of the Human Resources Department .As the company is public dealing entity so the workplace training is the integral factor for the good will and the status of the policies and services of the company.

Being a public limited company whose majority shares are controlled by the Government of Pakistan, PTCL is responsible to provide telecommunication services in the country on affordable prices while ensuring that the telecom services become accessible throughout the country. Since exclusivity of PTCL has ended on 1st Jan 2003, the telecom sector of Pakistan has entered into a new era and PTCL is slowly moving towards competition in the basic telecom services. The company’s policy objectives are as follows: • • • • · Increase service choice for all consumers of telecom services at competitive and affordable prices · Increase private investment in the telecom sector and encourage local elecoManufacturing/service industry · Enhance long run benefits to the Government’s financial position by expanding the taxable revenue base. · Accelerate expansion of telecom infrastructure to extend telecom services to unnerved and undeserved areas.


• • •

· Encourage fair competition among service providers, while maintaining leadership in the telecom sector · Maintain consistency with the Pakistan IT and internet promotion policy of low prices for Bandwidth and Internet access.

ANALYSIS OF EXTERNAL ENVIRONMENT Pakistan followed a gradual approach to liberalize its telecom market. During 1990s, as a first step, market was opened for value added services and competition was introduced in cellular mobile sector as four licenses were issued (Mobilink, PTML, The government monopoly was retained in fixed line services, however, PTCL legal monopoly ended with effective from 31st December 2002. The government announced Telecom Deregulation Policy and Cellular Mobile Policy in 2003 and 2004 respectively. The telecom regulatory, issued new licenses for Long distance International (LDI) and Local Loop Fixed (LLFixed), Wire Local Loop (WLL) and Cellular Mobile. With the issuance of new licenses the market is now open for full competition in all segments of the sector.


Swot analysis of ptcl:
Strengths: • • • • • • Largest operational network and infrastructure An integrated monopoly Market leadership Ptcl u fone is market challenger Competitors still depend on ptcl network either directly or indirectly Experienced telecom recourses

• • Internal organizational issues Monopolistic culture has further added to its complexities 31

• • •

Ptcl v,the fixed wireless phone service is poor Over employment and low productivity Slow decision making

• • • Low teledensity of pakistan Have fast infrastructure and real estate Scope for cost effective operations

• • • • • Increased competition in long distance continues Exposure to market competition Migration to cellular networks Ability to attract and retain quality Reduction in international settlement rates

The service responsibilities of the H.R. department are apparent when one examines such things are as the employment, training, and benefits functions. The tasks of recruiting, interviewing and testing job applicants are performed in the H.R. Dept.Training programs are planned, Organized and often staffed through the H.R. Depth’s. Dept must see that adequate instructional materials and facilities are available. Once pension and insurance programs have been setup, all claims must be through the .HR derpt intendance of adequate employee records is a service function that Permeates all functional specialties within the personnel field.

It is concluded that privatization has great advantages of itself. And on the other side “not everything that is faced can be changed ,but


nothing can be changed until it is faced” and time change and we change with them.

For the successful completion of this report, we have utilized different available recourses, from which we have obtained required data. Most of information is collected through internet, while a visit to company is also made to get further information .we are thankful to the company management who had welcomed and cooperate with us .Recourses which are consulted discussed below: www.ptcl.com.pk google.com businessrecorder.com Aurora business magazine Security and exchange commission of Pakistan