EXECUTIVE SUMMARY This project has been undertaken in order to highlight the Human Resource Practices of “Ufone”.

It’s all about YOU its all about “Ufone”, a company very highly spoken of these days. A company paying more attention to its customer’s delights rather then the customer’s satisfaction. Ufone is a company starting from scratch and has shown utmost performance in the last seven years. Ufone owes its success to its employees believing that providing employees with job satisfaction motivates them to work hard and provide better results. Company Introduction Ufone PTML is a wholly owned subsidiary of PTCL established to operate cellular telephony. The company commenced its operations, under the brand name of Ufone, from Islamabad on January 29, 2001 During the year, as a consequence of PTCL’s privatization, 26% of its shares were acquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been handed over to Etisalat. During the year July 2005 to June 2006, Ufone continued on the path to success. The Company further expanded its coverage and has added new cities and highways. Ufone has network coverage in more than 3475 locations and across all major highways of the country. Ufone currently caters for International Roaming to more than 200 live operators across 121 countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal, Thailand, Cyprus, Bangladesh, Uzbekistan, Tunisia and Kuwait with lowest rates, featuring no security deposit and activation charges. GPRS Roaming facility is available with more than 100 Live Operators across 80 countries.

Mission Statement

To become the best cellular communication option available in the country for “u”.
Vision Statement

In order to evolve with our customers and to keep pace with your needs, we rejuvenated and revamped our image by changing our visual identity. At Ufone we understand the value of words and the need to communicate effectively and efficiently at all levels of society, which is why our primary focus is on U, our valued customers bring strength to our company. With a fresher look than is accepted and appreciated across the board by people of all ages, we aim to connect with you and provide you state of the art services. No matter who you are, where you are, what you want to say, how you want to say it or how you feel, you are our focus. Because at Ufone, it’s all about U,

Giving the units their own support systems and decision-making authority to take advantage of local opportunities in regional or specialized product markets also enhances flexibility.e. F Prepaid F Post paid COMPANY ANALYSES Structure of Ufone When a company wants to compete in innovation. Both of these products are available at their franchise for public. holistic pieces that are executed by teams of higher wages. Mainly Ufone has four regions and within those regions the structure is functional .The decision making authority is centralized at the top but within the regions it is . it needs to maximize flexibility. Flexibility is maximized by aggregating work into larger.Services line of Ufone There are two basic products of Ufone “Ufone Prepaid” and “Ufone Post pay”. (click on the following image to enlarge) Keeping in view of all these factors the structure of Ufone is designed i. high skilled workers. the overall Structure of the Ufone is Divisional (More flexible and innovative).

Therefore operations at Ufone are all planned and carried out in such a way so as to maximize operational efficiency. care and retention strategies. Ufone carries out its operations autonomously under the license of Pakistan Telecom Mobiles Limited (PTML). They report directly to the CEO. a comprehensive initiation plan has been made along with aggressive customer acquisition.e. The company head office is established in Islamabad (F-7 Markaz). At Ufone the management is mindful of the same and has been constantly endeavoring to enhance the existing facilities. Human Resource Department at Ufone UFONE considers their employees to be the asset of the company.decentralized i. so in order to retain their employees following practices are followed in the company. There are eight different departments each headed by a Project Director. F Engineering F Administration F Business Analysis F Marketing & Sales F Customer Care F Human Resource F Finance F Information Technology Provision of quality service to the customers is of utmost importance for the progress of any service-based company. Although it is the subsidiary of the Pakistan Telecom Company Limited (PTCL). BUs are divided geographically into three divisions F BU North (Peshawar to Jehlum) Islamabad (Head Office) F BU Central-1 (Gujranwala till Sialkot) F BU Central-2 (Multan till Rahim Yar Khan) F BUM South (Sindh and Balochistan) Departmental Division In order to give a jump-start to the company. There are four BU (Business Unit) each Project Director is responsible for these eight divisions. regional heads have to inform top management before making any decision. Ufone has the best integration of eight departments each project director. HR PRACTICES F Recruitment and selection F Orientation F Training and development . Division of branches geographically (Location) This is what Ufone looks from the organizational hierarchy point of view. customer satisfaction and employees motivation. which serves as the center for all its strategic activities.

selection and payroll etc. Training and Development HR team of training and development make a performance evaluation of all the employees and the see where the gap occurs between the actual performance and the desired performance. Compensation The total returns which an employee gets against his or her work.F Compensation and Benefits F Performance Appraisal WORK FORCE HR at UFONE is divided into the following two major categories • • Permanent Employees (1500-2000 Approximately) Outsourced Employees (2000 Approximately) Permanent employees HR Permanent employees are further divided into following two categories. It maybe: Employee Health Plans Employee Insurance Employee Leave . HR operation team manages all the employee activities gathers all the information and make use of it for further processes. • • Operation Training and Development Operational Department It covers all the areas including hiring recruitment. On the job and off the job both the trainings are given according to the need of the employee. Employee Benefit & Compensation F Training & Development F Employee Motivation F Retention of Employees F Career Planning/ Succession Planning F Employee Relations/ Communication F Employee Awards F Employee Events Management F Medical & Life Insurance COMPENSATION AND BENEFITS Ufone follow the performance base pay structure and pay for their performance and work output. Then training is designed for area which needs to be improved.

to compete with others in the same industry. Assistant Manager 7. it also varies from department to department. M. G.T Individual Salary Fixation: The Ufone seeks the market trend and try to compete with market for individual salary fixation but they also analyze their own financial positions and budgeting. Permanent Executive 9. V. Current Base Pay: (Job Based Structure and competitive) The Ufone follows the job based structure. market movement and internal/ external equity adjustment. and compensate its employees for the work they have done.D Surveys Policy Lines Total Compensation: Example: 60% Basic Pay 15-k 30% House Rent 7. Outsourced Executive 10. Senior Manager 5. Salary adjustment is based on the performance. Senior Executive 8. Levels of Ufone: Hierarchy 1.Employee Retirement Income Security Act Executive Compensation Maternity & Paternity Benefits Pension & Retirement Plans Wages & Salaries Workplace Programs Compensation strategies are usually market based and is linked with the performance with a greater emphasis on variable pay. To develop this structure Ufone conducts some surveys. Work Analysis Evaluation & control Market trends Employee J.O 2.M 4.P 3. their work content. for their tasks and duties they performed. Revision of compensation is based on total pay and monetization of benefits.5-k .E. behaviour and for their responsibilities. Manager 6. C.

M and Above 160 RS Increments: The increments are totally based on the performance of the employees and their seniority level. Parents. but if any employee shows the performance then this may increase up to 35% to 50%. M. After every Two years Ufone give the amount of Rs 6000 to lower level employees if they want to purchase a new mobile and this limit increases as grade increases. 50% Org If work for 10 Months 1. Wife / Spouse and children’s 50% Employee. Grade A 500 minutes + 500 Rs mobile usage. Food Subsidy: S. If the scale is 15000-20000 then the increment is the 20% of the base pay. At each stage the amount is different.10% Utilities OPD Hospitalization Provident Fund Gratuity Bonuses Incentives 2. Same like this all other benefits. Exe.T so on Rs 65 Rs 95 Company A.4% Of Gross salary Only Sales department depend upon their performance. AH A is the minimum grade and H is the maximum grade and they compensate their employees on the basis of their grades.E. Assistant Manager Level: 25000 Car allowance + 200 Liter’s petrol / Month Manager level: Car + Blackberry Senior Manager: Islamabad Club Membership + BMW Car + House + Foreign Tours Further Ufone has developed some grades for employees.5-k 2 Gross salaries Employee siblings. Managers: Innovative ideas Silent Warriors Recognition of The work: .

7000 for “Tea Boys” it is Rs. An employee contributes 8. F House Rent: 10% of the basic salary is given to each senior/ executive level employee. half is given in mid of the year and remaining half will be given at the end of the year. employee number. The reason for maintaining the record is that the company pays 60% of the expense came over the food while 40% has to be deducted from the employee’s salary. F Transport allowance: Rs 2500 are given to female employees only.20000 to 25000. Employees who is working in Ufone for seven years or more then seven years gets Cash Rewards. F Medical Allowance: 1 gross salary per year is given to each employee.33% of month basic salary in a year and an equivalent amount is being contributed by the employer. F Health Insurance: Like all other cellular companies Ufone also provides health insurance policy to its employees. F Leaves: 7 Casual and 10 sick leaves are given to each employee at all level.O (Not disclosed by the organization) UFONE focuses on providing a large number of the compensation and benefits to its employees in a form of the following categories: F Minimum wage: The minimum salary for “Drivers” is Rs. etc it is Rs.E. their name. Leave fair assistance 1 year 20 holidays 1 Gross salary 40 leaves 2LFA’s Permanent Employees: Number of employees: Around 1500 – 2000 Minimum scale starts from 15000 – 20000 Maximum C. F Loan Insurance: At Ufone loan insurance policy is also provided to their employees through banks. signature and number of book and date at which it is issued has to be recorded. Marketing. Finance.For overtime UFONE have specific formula that apply on the employees gross salary. badges and other things. the middle level and the junior level staff. designation. F Meal deduction Claims: Meal books are to be maintained of each employee who issues it. if they travel on local transport.6500.On Jan 29 (anniversary of Ufone). . F EOBI: EOBI is contributed as per the standard F Children Education allowance: 1 gross salary per year F Provident Fund: All permanent confirmed employees are eligible for membership of Ufone Employee Provident Fund Scheme. Trophy. for Administrative Staff like HR.20000 and for Engineering it is Rs. F Travel Policy: Revised and categorized different levels such as the senior level. due to which every employee have different per hour overtime rate. F Overtime: All employees are entitle for the overtime more then 130 hours per month .

F Overtime Claim: If an employee has worked for more than the regular time. so if any employees make use of this facility they can claim for the amounts to be return next the month while submitting the hospital receipt. Salary Surveys Collections of salary and market data. cost of living indicators. after the whole process the HR pay them back the next month along with their salary. F Mobile deduction Claim: Such an expense claims which are made if an employee has made long duration call for the official purpose and they have exceeded the limit given to them then they can make a claim by attacking a copy of mobile bill and if its valid then HR department approved it and pay the employee their claimed amount along with their monthly salary of the following month. Any person who is employed on merit and is performing very well will be given salary on the basis of his performance and merit. Their medical clearness is done by the HR department. Job Analysis . such claim are made while returning back to the office . F Medical Claim: Different medical facilities are provided to employees at different level of hierarchy.F Expense Claim: The expense Claims are the expenses which an employee make on the behalf of the company E. If any post is vacant those past performance on that post is evaluated and the market conditions are observed and then the job is evaluated. the job evaluation is linked with the merit. it includes average salaries. fuel used for business travel. The value of any job can be increased if the employee on certain post has performed very well and his appraisal report is very outstanding then according to his performance value of job is increased and this process is carried out by the HR department of Ufone. F Dispatching of Salary Slips: Vendor prepares the salary slip and dispatch it to the HR department. Whenever the appraisal report of any employee is generated he is being paid according to his performance. overnight stays on a business tour etc. inflation indicators. The present basic salary structure of Ufone is based on Job description (Tasks and duties performed). further HR head office send it to the regional HR departments their concerned employees salary slip and they either give their employees through cash or transfer to their accounts. Ufone conducts its own market survey and match its standards with other telecommunication companies specifically with Mobilink and telenor. Moreover. Overtime claim have to be approved through HR department.g. they claim for the overtime amount other than their salary which they receive the next month. salary budget averages. The job evaluation method was not very much good in the past but now it is linked to appraisal system of Ufone. The job is evaluated on the basis of appraisal reports. (Research firms and personally) Job Evaluation Method The job evaluation method of Ufone is lined to appraisal system. The value for the job is concerned with the performance report.

job specifications. It is a technical procedure used to define the duties. Step 2: Ask about more general aspect such as the job purposes. job descriptions. On the whole . Step 4: Observe the jobholders to see what they actually do. and accountabilities of job. Step 3: Ask the jobholders about the job. They construct “Job Analysis form”. pay packages. tools. Step1: Obtain Documentary information such as procedure manuals and written instruction. It is proved that job analysis is almost first activity of HR department to be done. The HR people after analyzing any job that has become vacant makes a job description defining clearly what the jobholder will do and how it will be done. compensations. Ufone Job Analysis Following steps should be taken by the Ufone. the main activities. So at Ufone experts do job analysis. Knowing Who Does What Major duties or activities required Conditions under which the job is performed Job analysis procedure of the Ufone There are mostly following procedure of the Ufone about analysis of a job: • • Direct Observations Interviews How Ufone formulate job description and specification In Ufone most of the announcements for jobs are being done through newspapers having wide circulation in the country. and work aids used Job-related tangibles and intangibles Work performance Job content Personal requirements for the job Why Ufone conducts job analysis The Ufone conducts the job analysis to get the right person for the right job at the right time. Because on this. job evaluation etc are made. If the Ufone does not conduct the job analysis then there will be a huge chance of selecting the wrong person or to reject the right person who is suitable for the job. Whenever Ufone offers any job it also describes the responsibilities and duties with in a job to be performed. Information Collected in Job Analysis Work activities Worker-oriented activities Machines.Job analysis is systematic exploration of activities within a job. responsibilities. equipment.

now they are moving towards ERecruitment also to ensure best candidates apply for the jobs and professional people are employed in the Organization. In job description Ufone define the following: Duties of HR manager is to select. In all the area of the jobs the pre. Ufone holds documents about terms. and specifications about each job. (click on the following image to enlarge) . environmental conditions and responsibilities of the job. Job specification Ufone also has well developed criteria for each job in term of the job specification. The HR people define the job in such a way that it clearly describes the job and guides new employees what to do etc. hire and train employees Responsibilities are to update records and processing insuring claims Task is to complete the job related activities. Job analysis is done by analyzing the past experience and emerging trends.requisite for the job are defined for example: Qualification required for a job Skill required for a job Experience required for a job Job Description Human Resource Division analyzes each job and its required outcomes.job description defines characteristics of job. duties responsibilities.

their . Afterward the performance is appraised according to the set standards and this appraisal is not done by the supervisor alone.PERFORMANCE MANAGEMENT SYSTEM Objective of the Performance Management: The basic objective for performance UFONE employees circles around the following: F To look at Performance system as a means to an end F Setting an individual’s goal F Aligning goals across the company F Ensuring employees get coaching from managers F Determining merit pay F Identifying training and development needs F Providing data for promotion decision F Input from multiple source on worker performance The Performance Appraisal Process: The Performance appraisal system used by UFONE for reviewing the performance status of its employee starts with identifying specific appraisal goals set by each Group for each cadre. After this a detail job analysis is done with looking in account the job expectation and then matching the actual performance with the desired performance.

performance of an employee is appraises twice a year. marketing. Once in June while other in December. In each case employee have to show consistent performance to win reward next time. For “Customer Facilitation Agents” there 50% pay is based on their performance which is assessing every moth by their managers. For other employees like in administration. Therefore whenever the appraisal is done employee is fully participative in the process. Within this method. etc their performance is assessed after every six and they get increased Rs. In UFONE. engineering. finance. . There are total 100 points from which an employee gets. Rewards Related to Performance There is also a reward related to performance of the employees.major focus is on taking into the account the employee’s perspective as well. managers.5000 in their salary as a reward. peers. Performance Appraisal Method Use by UFONE UFONE is using 180-Degree Performance Appraisal Method. In the questionnaire there are five sections and in each section there are five questions related to the performance of employee. customers or colleagues are asked to complete questionnaire on the employee being assessed.




Yearly bonus programs along with special bonuses for achieving high targets). LFA salary. maintaining suitable records. the Ufone performance appraisal system is very effective after every six months every body knows that what their score is. F Benefits and Services (insurance programs. Employees Reaction to the system As mentioned above that Ufone follow the job based and competitive structure. Medical facility). so this thing is in the nature of human that to react against any system because by implementing structure every body in the organization thinks that he or she is doing much and organization is not treating them well with the comparison of others. wage and salary surveys of the labor market).A bell shaped distribution comes out to show the performance Compensation Responsibilities of Ufone HR Department F Compensation Administration (designing and installing job evaluation program. negotiation. F Health and Safety (health programs. rates of pay. contract interpretation and administration. loan funds. Their reaction towards the system is cooperative because of their appraisal system. And the . F Employee relations (wages. Ufone is a performance oriented organization so they compensate their employees on the basis of their performance so every body know that if they show the results then the organization will compensate them good if not then they will never expect. Transportation facility. analyzing jobs and their dollar-worth. This is a good approach for performance oriented organizations to implement the system like this because of this system every body interests involves in it. allocation of overtime). grievance handling. But at Ufone as we observed mostly of the permanent employees are quite satisfied with this system as compared to the contractual employees. conditions of employment. safety programs. pay structure. hours of work. sick leave pay plans.

It is also found that no referral bonus was given to contractual employees who refer competent. And all those employees are not much satisfied because of these criteria and they are a big part of the organization. with communication and make them understand that what they are getting is fair. Some are not satisfied because they think that we are very senior and the organization should have to compensate us for our seniority not for our work done.D. Ufone should have to start some career development programs to attract and retain most valuable employees. They have to provide them some necessary benefits.R expressed his thoughts that the employees who are hired by third party and working in organization on contractual basis. Third setback is that they have some problem with their payroll. bonuses and incentives according to their J. the organization size is more the 4000 employees but they have only two executives who are working for the pay roll and on the compensation so there are many troubles to run the payroll accurately and compensate every one fairly on the basis of their performance. We observed another important point with the prospective of Human Resource practices that in organization the concept of relational return is not very satisfactory but this matter a lot in organizations like Ufone. This thing shows that there is a lack of motivational factor among contractual employees and cause increase in turnover rate. Principal fault lines and some suggestions for improvement While answering a question the manager of H. because of this system every employee know what the other organizations are paying for the same job and what they are getting is fair or not. . they are stressed with their job because they are getting only salary not benefits or any other compensation tools against their work. These things increase the cost of new hiring and training of new employees. skilled and experienced worker which may participate in the success of the organization. We think the Ufone should have to focus on the contractual employees and needs to motivate them by compensating fairly. the manager answered “we don’t want them so we are not bound to compensate them equally in comparison with our permanent employees”. In our point of view as we see the organization size figures that show there are more then 2000 employees are on contractual basis which are more then the 55% of the overall size of the organization. skilled and knowledgeable candidate. once if the employee feels that they have some career growth in the organization they are motivated and loyal to the organization. The HR Department must convince the higher management to give such bonus which not only motivated the employees but the organization can in this way get competent. HR Department must also forecast for long-term Human Resource needs. (Loyalty factor involves). because of work burden.Ufone also adopted the Competitive approach for compensation.

Ufone HR Department must clearly communicate its promotion policy to all employees. .

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