Netsol Final Project

INTRODUCTION TO NETSOL

VISION STATEMENT

By 2010 we want to be a No.1 IT Solution provider in Asia Pacific for the Lease & Finance sector and we also want to be the best IT Company in Pakistan.

MISSION STATEMENT

Deliver High Quality, innovative and best-in-class IT solutions and services to help our customers achieve their business objectives and operational efficiencies.

BACKGROUND

Founded in 1995, NetSol Technologies (NASDAQ: NTWK) is a global provider of software solutions and IT services, ranging from consulting and application development to systems integration and outsourcing. Headquartered in Calabasas, California, NetSol employs over 550 employees globally, with locations in the U.S. , Europe, China and Asia Pacific. The commitment to quality is demonstrated by their ISO 9001 certification and the SEI (Software Engineering Institute) CMMI® (Capability Maturity Model Integration) Level 5 designation.

NetSol Technologies specializes in quality custom software development. As one of the few companies in the world with a SEI-CMMI® Level 5 rating, qualifies NetSol as a global preferred software solutions provider. NetSol's unique approach combines deep domain expertise in financial services and emerging technologies with a world-class development team that delivers critical solutions on time and within budget.

NetSol provides a range of software products, custom development and consulting services. LeaseSoft, an end-to-end core asset finance accounting and portfolio management solution, is an industry standard in a growing number of countries. NetSol's list of clients includes blue-chip companies, the non-profit sector, technology and telecommunications, and financial institutions. Among those who have used their services are Mercedes-Benz, Motorola, Citi Group, BMW, Daimler Chrysler, Toyota, Yamaha, Quest Communications, and The Innovation Group (TIG). Recently, Intel has launched an "Intel Solution Blueprint" for LeaseSoft, the first of its kind in the leasing and asset based financing sector.

NetSol's core competencies include all areas of Internet Technologies, n-tier Applications, Object-Oriented Technologies, Groupware Automation and Large Scale System Integration. NetSol is also actively involved in Business Process Re-engineering, Legacy Systems Management and Data Migration, Quality Engineering and Processes Improvement Consulting as well as R and D assignments.

- 1 - COMSATS Institute of Information Technology

ACHIEVING SOFTWARE MATURITY & QUALITY ASSURANCE

NetSol, from the outset, invested heavily in creating a state of the art, world-class software development capability. A series of QA initiatives resulted in both ISO 9001 certification as well as a CMMi level 5 assessments. These assessments solidify NetSol’s project delivery ability as well as permit the Company to target market segments consisting of organizations and corporations who prefer to work with software providers having the ultimate quality standard, CMMi Level 5 rating. Achieving these CMMi targets required dedication by all levels of the Company.

Software Engineering Institute’s (“SEI”) CMMi, which is organized into five maturity levels, has become a de facto ‘Gold Standard’ for assessing and improving software processes. Through the CMMi, SEI and the software development community have established an effective means for modeling, defining, and measuring the maturity of the processes used by software professionals. The CMMi for software describes the principles and practices underlying software process maturity and is intended to help software organizations improve the maturity of their software processes in terms of an evolutionary path from ad hoc, chaotic processes to mature, disciplined software processes. Mature processes meet standardized software engineering methods and are integratable into a customer’s system. Mature processes ensure enhanced product quality resulting in faster project turn around and a shortened time-to-market. In short, a mature process would, ideally, have fewer bugs and integrate better into the customer’s system.

The Company has always strived to improve quality in every aspect of its business. This quality drive, based on the Company’s vision, trickles down from the top to the lowest levels in the organization. The Company believes that it is this quality focus that enabled the Company’s software development facility to become the first ISO 9001 certified software development facility in Pakistan in 1998. This accomplishment marked the beginning of the Company’s continuing long term program towards achieving the higher challenges of SW-CMMI. Thanks to the dedication of the Company’s employees, it is the first ever to reach CMMi level 5 in Pakistan. Achieving the ultimate quality standard of CMMi Level 5 has been one of the most significant milestones in the history of NetSol and the company now joins the ranks of select club of global IT giants like IBM, Boeing, Infosys, and Lockheed Martin offering the highest quality of products and services. According to SEI there are less than 100 companies in the world claiming certification of CMMi Level 5.

AWARDS and ACHIEVEMENTS

• Best IT Employer in Pakistan• The only Intel Solutions Blueprint for Leasing Vertical• 5th NCR IT Excellence Award for “IT Pioneer of the Year”• 6th NCR IT Excellence Award for “Highest Exports for Year 2004” in Pakistan


• 7th NCR IT (National Cash Register) Excellence Award for Highest Exports in Pakistan

• Pakistan Software Houses Association Award for largest exports in 2003-04 and 04-05

Over the years, NetSol's endeavor in strengthening its reputation as a world class solutions and services provider has resulted in number of recognitions.

• NetSol Technologies LeaseSoft Product Wins Best Financial Industry Application for 2007 by APICTA

• Achieved CMMI Maturity Level 5 to join world's elite Software Houses.• LeaseSoft prized with Intel's Outstanding Solution Provider Award.• LeaseSoft awarded best of Financial Applications 2004 by Pakistan Software Houses

Association (PASHA ICT AWARD).• LeaseSoft: Preferred solution of DaimlerChrysler Services AG Germany.• NetSol: Acknowledged with NCR IT Excellence Awards. • NetSol: Acknowledged with Highest IT Exporter Award by Pakistan Software Export

Board (PSEB).• PASHA ICT Awards for:

– LeaseSoft as best of Financial Applications – E-CIB as best of E-Government Applications

• FPCCI (Federation of Pakistan Chambers of Commerce and Industry )Export Performance Award

CORE VALUES

According to NetSol the core values of the organization are, They care for their employees who are their most valuable assets. NetSol offers its

employees a challenging and harmonious work environment where they encourage every one to work to his or her utmost potentials.

NetSol will always aim to develop long lasting relationship with its customers by delivering value for their investments.

The work place will be an environment of great learning, extra ordinary customer service, consideration for the colleagues and self development. A place where they are happy to spend their working days.

They will be diligent expending company resources. They will use them to serve our clients better and perform our roles more effectively.

While they grow in size and scale they will continue to improve their quality of service delivery.

They will work tirelessly to grow in the efficiency and productivity using Best Practices, Innovation and Imagination.

As they are global company they will respect every other culture, religion and embrace the change and the challenges that come with such diversity.

BEHAVIOUR


According to NetSol the appropriate corporate behaviors adopted by organization are, While they grow in size and scale they will continue to improve their quality of

service and scale. They will continue to improve our quality of service delivery. They will continue to invest in training in quality. They will grow quality initiative with Best practices and more quality

accreditations. NetSol will implement better tools for measuring quality both in production and

customer services. Quality is not a domain with the few chosen ones but is a responsibility of all. NetSol will not pass the bucks to the Quality People when we can see and address

deficiencies ourselves.

STATEMENT OF ETHICAL PRACTICES

Following practices are observed by each and every family member of NetSol regardless of the cadre to which he or she belongs.

All the directors, employees and other personnel must observe the laws and regulations.

NetSol does not permit bribery in any form of any person involved in the company’s business.

NetSol requires competition in the market place and compliance with anti trust and competition rules.

All employees and personnel must maintain the confidentiality of price sensitive information.

Employees and others should not use the price sensitive inside information for their personal advantage.

Employees and other personnel should avoid situations where personal interests could conflict, or appear to conflict, with the interest of their employer.

THE NETSOL GROUP


ORGANIZTIONAL STRUCTURE


HISTORY OF HR DEPARTMENT

The HR department was established as an independent and fully functioning department in 1999. The department was established for meeting the following needs of the company,

1. Acquiring Human Resources2. Training Human Resources3. Developing Human Resources

VISION STATEMENT OF HR DEPARTMENT

Align Human Resource Capital with Corporate Objectives.

MISSION STATEMENT OF HR DEPARTMENT

To attract, develop, reward, retain and motivate our valuable asset by ensuring highest level of employee satisfaction.

OBJECTIVES

The HR department was established with the above mentioned needs and had the following main objectives behind its creation,

• To be a true EEO (Equal Employment Opportunity) Employer • To determine and categories the organizations long range and short range HR needs• To attract the right potential candidate to the right job• To satisfy and strengthen excellence of the workforce.• To explore new recruitment sources • To have trusting good relationship with all the departments• To provide the best services in HR• To maintain database of quality applicants

HR FUNCTIONS AT NetSol

The HR department performs the following functions at NetSol, although the main heads are still the same but overall the following functions are performed by the HR department of NetSol. These include:

• Strategic HR Management• HR Planning • Designing & Implementation of Human Resource Policies/ Procedures• Human Resource Development (HRD)• Career Management• Compensation/Benefits/ Perks Management• Performance Management


• Employee Relationship Management• Job Satisfaction• Environment, Health & Safety Management (EHS)• HRIS-HRMS / eRMS • HR Auditing• Travel Management• Entertainment Management


HEAD OF HR DEPARMTNET

Manager T& D

Manager Compensation and

traveling

Manager recruitment &

selection

Manager HR

operations

Payroll

Traveling Management

Employee Relations

Formulating the Policies and Procedures

Performance Management

1. STRATEGIC HR MANAGEMENT

Following are the areas of concern in this function:

• To conduct SWOT analysis• To set HR objectives/goals • To formulate policies, procedures and strategies • To forecast/plan the Human Resource Requirements to address the goals• To design the skill set and knowledge base for Human Resources to accomplish the goals• To create career paths for Human Resources• To reward and retain the Human Resources

2. HR PLANNING AT NETSOL

HR Planning

Resources are selected based on following:�Academic Qualification•Knowledge, Skills & Abilities (KSA)•Work Experience•Attitude •Stability & Reliability

Placement is based on:�Tests • Interviews (Technical/ Non-Technical)

• Job History• Proficiency in Tools/ Techniques

HR Planning at NetSol

Assessment, Selection & PlacementRecruitment•Job Analysis•Job Designing•Salary Structure•Work Location•Succession Planning•Perks Evaluation

Different channels of Recruitment•Advertising (Paper/ Electronics Media)•Placement Bureaus (Universities/ Colleges/ Institutes)•Employment Agencies•Job Fairs•References •Consultants•NetSol HR Data Bank

Resources are selected based on following:�Academic Qualification•Knowledge, Skills & Abilities (KSA)•Work Experience•Attitude •Stability & Reliability

Placement is based on:�Tests • Interviews (Technical/ Non-Technical)

• Job History• Proficiency in Tools/ Techniques

HR Planning at NetSol

Assessment, Selection & PlacementRecruitment•Job Analysis•Job Designing•Salary Structure•Work Location•Succession Planning•Perks Evaluation

Different channels of Recruitment•Advertising (Paper/ Electronics Media)•Placement Bureaus (Universities/ Colleges/ Institutes)•Employment Agencies•Job Fairs•References •Consultants•NetSol HR Data Bank

3. RECRUITMENT PRACTICES

The process of recruitment consist of the following phases

Human Resource Forecasting

The human resource forecasting is practiced according to the following flow chart:


STRATEGIC RECRUITMENT


RECRUITMENT STRATEGIES

Budget for Recruitment and Selection

Like every where the main factor that should be considered is the cost so the entire process should be an efficient and effective at the same time.

1. To control hiring costs after selection, orientation, and start-up (training etc.) as well as costs associated with employee replacement.

2. Choosing Recruitment Sources3. Untapped Recruitment Sources

Remote Areas Physically disabled Employees

4. Diversity

RECRUITMENT CHANNELS

Depending upon the needs and situation the recruitment channel varies nevertheless the main channels and the sub channels that NetSol uses for the recruitment process are,

a) Internal Job Posting Employee Referral Programs etc. Skills Inventory A list of each employee and the KSA’s(knowledge, skills and abilities)

each possesses

b) External College and Universities Recruiting (Placement Bureaus, Alumni) Job Fairs (Rozee, PASHA, Soft-tech, LUMS, PCBA) Paper Advertisement (Dawn, News, Jang) Recruitment and Head Hunting Agencies (OMNI, SKP, Core, Redical

Hire) Executive Search Firms (Saiqa, Tahira, Personal Involvement etc.) Web Advertisement (NetSol Websites, Rozee, Mustaqbil, Yahoo groups

etc.) Walk in New Channels to explore E.g. New Head Hunters, New Recruitment

Agencies or Websites.


4. RECRUITMENT & SELECTION PROCESS

Generally recruitment is a very length process that starts from the time when a position is opened in any specific department. It can be proceed internally if the HR department gets a requisition from people already working in the company or it can be through the laborious process of CV scanning.

STAGES IN RECRUITMENT PROCESS

1. Position OpeningAny position opening for any department against any project is acknowledged through Personnel Requisition. Orally they try to avoid initiating the recruitment process

2. Personnel Requisition ProcessIn this process any PM /Head of Dept use eRMS to submit his personnel requirements for approvalPersonnel Requisition FormIt is make sure that Personnel Requisition Form must be filled with its all fields. Which include position Title, No. of resources, No. of years of Experience and specific KSA, (Knowledge, Skills and Abilities), Reason for hiring, Addition or replacement etc.


3. HR CVs Screening ProcessInitially most of the time, CV is short-listed from emails then saving in the Soft Folders and Hard folders. Printing of CVs and study the details of prospect profile keeping KSA and experience in mind. Huge number of quality CVs are given to Technical Teams after initial level short-listing.

Technical CVs ScreeningAfter initial screening, CVs are sent to technical teams through email or by hand. CVs are short-listed from the technical team and sent back to HR for Interviews scheduling.

4. Interviews Scheduling Candidates are called for Interviews, evaluating on phone (Communication skills, Interest, current involvement), communicating them brief requirements of job, JD, Time, Date and direction of NetSol and answers of their Question (Salary, Designation, JD etc.), Developed a proper System for Interviews scheduling.

Interviews Calendar and arrangementsAll the Interviews schedules are sent to the Interview panel through Lotus Calendar. Room is arranged and CVs with evaluation form are given to the team.


IntervieweeWelcome the candidate, ask him/her for any refreshment, and send him to Interview Room. After completion of Interview, thanks and tell them

Interview Feedback and Follow upsInterviews feedbacks get on the daily basis and follow up. Feedbacks are saved in different status in folders e.g. Recommended, Deferred, Rejected, and Hold. A regret email is generated to all the rejected and deferred Interviewees. They have developed a proper system for it.

Interview Evaluation SheetInterview Evaluation is filled, consisting score in the Interview, comments and recommendations of the technical team. They have developed different types of Evaluation sheets.

5. HR Interview and DocumentsHR Interview is conducted and trying to see all the non-technical aspects from the prospect. Some of the details are given in the next slide. The company requires different documents during HR Interview. Some time Originals Documents. List of documents are given.

6. Offer Letter, Arrangements and AcknowledgementsOffer Letter is made and discuss any issue regarding offer with the candidate. An email is generated for the arrangements of new employees from different departments and also acknowledging to the hiring teams.

The process is completed in a flow chart form in the following manner,

Position Opening↓

Personnel Requisition with specific KSA’s is made to HR Department↓

CV Searching from Database↓

CVs Screening↓

CVs are forwarded to hiring department↓

Interview↓

Short listing↓

Job Offer↓

Offer Accepted↓

Search Ends↓

Induction of Employee


↓Orientation

↓Start – up trainings

If Applicants are not found from Database↓

External Search Begins↓

Advertisements Developed and Placed in Target Media↓

Applicants prescreened by HR↓

Pool Forwarded to Hiring Dept.↓

Subset of applicants is interviewed↓

Job Offer Made↓

Offer Accepted↓

Search Ends

RECRUITMENT PROGRAM NetSol is a well defined blend of seasoned as well as fresh talent all of which are inducted into the organization by either of the below listed ways,

Regular Career Opportunities Fresh Graduates Hiring Management Trainee Program Internship Program

TYPES OF EMPLOYMENT

Similarly Contract (Part Time Consultants/employees, Full time Consultants/employees) Intern Permanent

5. TRAINING AND DEVELOPMENTThe below discussed chart is followed in NetSol in order to fulfill the training & development needs of the organization,


Test for FreshGraduates

If Offer is RejectedThe Search process again begins

6. PERFORMANCE MANAGEMENT

Performance appraisals are conducted on every 06 months basis. Mid year salary increments and promotion can be done on the basis of any previous commitment and performance during the period. Reports are formed, analysis work is done.

Performance appraisal is carried out with the following objectives• Employees are appraised on half yearly basis to check their current progress.• Training needs of employees are identified for their career development.• Need for compensation and reward is highlighted.

7. EMPLOYEE SATISFACTION

The employee’s satisfaction is catered in the following ways• Employee Job Satisfaction Surveys• Market Surveys

∙ Salary Structure ∙ Benefits/Perks∙ Working Environment∙ Growth Trends∙ Job Security


∙ Demand and Supply Analysis of Resources∙ Competitor’s SWOT Analysis

8. RELATIONSHIP MANAGEMENT

HR promotes sound relationships among all the NetSolians. The Relationship Management Program includes:

• Open Communication among all the tiers• Friendly Working Environment• Career Counseling• Grievance Handling

ENVIRONMENT, HEALTH & SAFETY MANAGEMENT

NetSol is committed to conducting its business operations in a manner that sustains the environment and protects the health and safety of its employees. NetSol strives for continuous improvement in its environmental, health and safety program and has set forth the following objectives:

∙ Compliance with all applicable laws, regulations, and standards. ∙ Conservation of energy and natural resources. ∙ Consideration for employee safety and well being. ∙ Cooperation and positive relationships with Suppliers and Subcontractors.

Encourage alignment with its Environmental, Health and Safety Policy.∙ Communication of NetSol Environmental, Health and Safety policy to

employees, partners, and associates.

OBJECTIVES OF ENVIRONMENT, HEALTH & SAFETY PROGRAMS

NetSol is fully committed to provide a healthy, safe and risk free environment to its employees for which a comprehensive health and safety program. The major activities of the program are:

∙ Conducting fire drills and training∙ Educating staff about electric safety∙ Ensuring ergonomic design of workplace ∙ Provide hygienic conditions in the work environment∙ Provide First Aid in case of emergency∙ Maintaining a blood group database∙ Ensuring Health and Safety rules are being followed by both employees and

the management of the company

TRAVEL MANAGEMENT

• Following are the Services offered by HR Department:• Travel Arrangements

– Domestic


– International • Travel/Medical Insurance • Visa Processing• Travel Guides• Travel Advance• Accommodation Arrangements

9. DESIGNING & IMPLEMENTING COMPANY POLICIES

HRD is responsible for developing and implementing company policies. All employees of the company have access to the company policies and forms on the company’s intranet (HR Web Portal):

Employee Handbook

Each employee has access to the employee handbook to have first hand knowledge about the rules and regulations and policies of the company.

Legislation ManagementAs a social responsible organization, the company comply all the applicable legislation. The HR Department follows all the relevant labor laws, ordinances, standing orders and guidelines e.g.

• Salary/Wages• Working Hours• Working Conditions• Employee Health and Safety• Provident Fund• Employee Old Age Benefits• Group Insurance etc.

10. ENTERTAINMENT MANAGEMENT

Entertainment Management is core part of NetSol HR Department to balance the work load and social life. It includes the following activities:

∙ Entertainment Club∙ Sports/Games∙ Musical Nights∙ Food Festivals∙

11. HUMAN RESOURCE INFORMATION SYSTEM (HRIS)

Human Resource Department is currently using two Software eRMS and HRMS to for the following purposes:

To monitor and maintain daily activities To mark attendance electronically To manage and maintain Employee Tasks through tasking database of eRMS


To manage leaves automatically To maintain travel history of employees To prepare reports for Project Costing

HRMS Human resource management system is working with following aims and goals,

∙ To Automate HR Activities∙ Recruitment and Selection (CV Management, CVs Short Listing, ∙ Interview Arrangement, and Selection) ∙ To maintain employee Profile and Job History∙ Training Record Management∙ Performance Appraisal Automation and Record keeping∙ Payroll System∙ To prepare reports to help management for Decision Making

12. COMPENSATION & BENEFITS

Compensation is a systematic approach to provide monetary value to employees in exchange for work performed. Compensation may achieve several purposes assisting in recruitment, job performance, and job satisfaction.

IMPORTANCE OF COMPENSATION

Compensation is a tool used by management for a variety of purposes to further the existence of the company. Compensation may be adjusted according the business needs, goals, and available resources.

OBJECTIVES

Compensation system in NetSol work with the following objectives,

Recruit and retain qualified employees. Increase or maintain morale/satisfaction. Reward and encourage peak performance. Achieve internal and external equity. Reduce turnover and encourage company loyalty.

Recruitment and retention of qualified employees is one of the prime tasks of compensation team qualified applicants for open positions is determined by market factors beyond the control of the employer. But still the

Compensation is also used as a reward for exceptional job performance for individual who are already working for NetSol, commissions, stock, profit sharing, gain sharing are common rewards that are offered to employees.


http://130.0.2.223:8080/hrms-netsol/

The company’s compensation system includes both the intrinsic and extrinsic compensation. According to the Manager these have different level of importance in the organization generally individuals who are in the early stage of their career prefer the extrinsic compensation more because they have drive for money but the people in their mid or late career stage prefer intrinsic rewards more as compared to extrinsic rewards. This was the general behavioral pattern that is exhibited by the people of NetSol.

Like all advanced organization the concept of seniority pay does not exist in NetSol and people are paid on how they perform. So the main focus of compensation department is on the performance of the individual rather than his age.

COMPENSATION SYSTEM

NetSol does not posses any specific software e.g. HAY SYSTEM for its compensation system and the compensation strategies and policies are designed mutually by the higher management and the SVP of the HR department and the head of compensation department on the yearly basis. The salary or other incremental plans are made every year after discussing the targets for the new year as well as by monitoring the past achievements. Nevertheless the compensation system offers the following monetary and non monetary rewards. As a universal practice the compensation system can be divided into two broad categories namely

1. Intrinsic compensation2. Extrinsic compensation

1. INTRINSIC COMPENSATION

The management at NetSol strongly believes in the investing for its human resource and for making them have a sense of ownership for the organization so every member irrespective of his/her cadre is allowed to act as a single person and his voice is never unheard. Although intrinsic compensation is of more value for the senior employees but it is never ignored by the management.

2. EXTRINSIC COMPENSATION

Extrinsic compensation includes monetary and non monetary rewards. These can be grouped as;

a. Core compensationb. Legally required benefitsc. Fringe/ discretionary benefits

a. CORE COMPENSATIONThe different types of core compensation that are in practice at NetSol include:

Base pay Commissions Overtime Pay only for sweepers, office boys, drivers and security guards Bonuses, Profit Sharing, Merit Pay


Stock Options Travel/Meal/Housing Allowance Benefits including: dental, insurance, medical, vacation, leaves, retirement, taxes...

Base Pay

This amount varies from job to job and is decided after considering the knowledge, skills and abilities of an individual. So the base pay of two individuals who work on the same post can also vary based on the difference of competency level of the two individuals. This base pay than serves as the ground level for determining the utilities (which is 10% of base pay) and house rent (40 % of base pay) for any specific individual.

Commission

The commissions are not that much pronounced in the organization mainly because of the industry in which it operates and the nature of its business.

Overtime Pay

This mode is only for sweepers, office boys, drivers and security guards and these people of the lower staff are paid this overtime according to the government regulations for the over time. Employees other than these such as the engineers who some time work late for nights are not paid any such amounts and only specified salary is paid to them.

Bonuses and Merit Pay

These all are part of regular reward to employees for performing their jobs in an exceptional manner and are all performance related. The bonuses can be awarded to individuals when the supervisors feels an extra ordinary effort is put forth by the employees so that employee upon the notification of his supervisor gets the cash bonus mad a certificate of appreciation as well. As far as the merit pays are concerned this increment is on yearly basis and is based on the results of individual’s performance of the complete past year.

Stock Options

To increase employees’ commitment and sense of ownership the employees are offered the stock options as NetSol is a KSE registered company so it offers its employees for the stock options.

GROSS SALARY:

The gross salary that is awarded to employee of any cadre whether a sweeper or even SVP is divided into following three basic categories which are,

1. Base Pay is 2/3 of Gross salary 2. House Rent is 40% of basic salary


3. Utilities are 10% of basic salary

Net salary = Gross salary less Arrears

The difference between gross & net salary is also calculated by the compensation department which is actually that salary after deduction. These may be due to some deduction of provident fund (which according to SECP should be at least 2% & up to 10% of basic salary, this same amount is added by the company for each employee & is invested some where which is given to employee when he leaves the job, in NetSol this rate of PF is 10%), EOB (employee old age benefit is also deducted from the employees gross salary. According to the new budget the minimum salary would be Rs. 6000 & 1% of this is deducted from employees salary while 6% is added by the company & this amount is deposited in the institute known as EOBI, it is deducted on monthly basis) & in some cases social security is also deducted (for employees whose salary falls below Rs. 10,000, 7% of employees gross salary is deducted & it is deposited in this social security fund). But even the sweepers are paid well above this minimum level. Beside the monthly pay individuals can also enjoy the following facilities

MEDICAL REMBIURSMENTSNetSol offers medical aids in three broad categories which are,

1. Out-patient2. In-patient:3. Maternity Benefits:

Out-patient: Every employee at NetSol can avail this opportunity and can have consultancies which amount about 05% of gross salary per month.

In-patient: Hospitalization charges per cadre. 15,000- 500,000 annually.

Maternity Benefits:This facility can be availed by an individual twice in a Service but is only available for every permanent employee: the range of expenses that the company bears is fromRs. 25,000 to Rs. 40, 000

b. LEGALLY REQUIRED BENEFITS

As a socially responsible organization, NetSol comply with all the applicable legislations. The HR Department follows all the relevant labor laws, ordinances, standing orders and guidelines. The people of NetSol also enjoy the following legally required benefits that include,

1. Group life Insurance


The organization looks after its employees in case of any mishap although the insurance amount varies with cadre yet it provides sufficient help to the entire staff.As per following category in case of death or any disability the employees of NetSol are paid according to the category in which they fall according to the designation:

A+ (Management) A (CFO, CBA) B+ (SVP, VP) B (PM) C (PSE, SSE) D (SE) E (General Staff)

2. Permanent Employment LeavesThe permanent employees can avail annual leaves, medical leaves, casual leaves and compensatory leaves. The annual leaves are added up into next year if they are not utilized I none year. NetSol also facilitate the female staff by providing paid maternal leaves to them.

3. Contract Employment LeavesAlthough these are not as lucrative as given to permanent employees yet some casual leaves are offered to these employees as well.

4. Employees old age benefits institute EOBIThe employee old age benefits are Rs. 2,000/- per month after retirement of at least 15 years of service and age around 58 years.

5. Minimum wage actThe government’s regulation regarding the minimum wage act is strictly followed here in NetSol and even the office sweepers are paid well above it so the government’s regulation regarding the minimum wage act is actually followed here in NetSol.

6. Provident fundAccording to SECP contribution to provident fund should be at least 2% & up to 10% of basic salary, this same amount is added by the company for each employee & is invested some where which is given to employee when he leaves the job, in NetSol this rate of PF is 10%), so the same amount is contributed by NetSol for employees benefits, this is another way by which the employees are attracted and retained by NetSol.

7. Workers health and safety at NetSolThe health and safety of workers is given prime importance in NetSol and safety awareness programs are arranged by the organization to add to this the health issues particularly the ergonomics is given much importance at NetSol and ease and comfort at work is provided to everybody. In order to avoid any accidents and as precautionary measure fore extinguishers are also placed in each department.

8. Working hours


The working hours are also according to the regulations which are 9-6 with Saturday being an off day as well. So compliance with international standards of healthy work life is also evident from these timings.

9. Social securityNetSol is registered even with the social security department and it comply with the rules of the department. The employees of lower level such as the sweepers, office boys, security guards and other such staff are properly looked under the assistance of social security institute of Pakistan.

c. FRINGE BENEFITSBesides the monetary rewards that are offered by NetSol it also offers a variety of the non monetary rewards a glimpse of all these is given as under,

Pick n drop (for female staff) Gym Daycare Centre Tours (recreational visits to hilly areas) Dinners/Sports gala

Pick n drop (for female staff)A unique and very attractive facility provided by the organization is its transport facility which is free of cost to the female employees of the organization. This is indeed a very powerful retention tool that is sued by the organization and in spite of its odd location female employee come and work here because of this facility. GymThe health and fitness of the employees is never ignored by the organization and in order to cater this need of the employees the company has arranged a fully functional gym for its female as well as male employees. The employees after their hectic lives can relax in the gym so that their minds remain healthy and fit. This is also a mean to strengthen the association of the employees with the organization.Daycare CentreNetSol has also established a day care facility for the employees who have toddlers who can not be left back at homes. The day care is built to cater the needs of these parents and a minimal amount is charged deducted from these parents on monthly basis. Still it is very helpful for the parents’ especially talented females who are restricted from working because of child care issues.

Tours (recreational visits to hilly areas)The recreational tours for every department are arranged by the organization on periodic basis so that the employees get time to enjoy with their colleagues and to relax after hectic work life. The most attractive aspect of these trips is that more than 60% of the whole expenses are bared by the organization itself.

Dinners/Sports gala


Annual dinners and sports galas are also arranged by NetSol all these activities are undertaken to create a sense of understanding among the employees that they are indeed valued by the organization and are the real asset if the organization which need to be cared.

KNOWLEDGE OR SKILL BASED PAY

Like all competitive organizations NetSol provides a combination of both knowledge and skills based pay as according to their manager an individual is not only selected if he posses knowledge under his belt instead those people are preferred at NetSol who have a blend of both knowledge and experience under their belt. So acquiring both knowledge and skills of relevant field is must in order to get the increments.

Stair step model

The company follows the stair step model for compensating the employees and the individual who join the organization follow a stair approach in which the necessary skills and experience of one designation serve as the prerequisite for promotion and possible increment in the salary for the next stage.

SWOT ANALYSIS

SWOT analysis stands for analyzing the Strengths, Weaknesses, Opportunities and

Threats of a certain industry or company. In this post we do the SWOT analysis of the

Telecom Industry of Pakistan. In upcoming posts we will go in detail of individual companies

and discuss the problems and how to make use of the opportunities.

Strengths

Exponential growth.

Skilled Human Resource at low-cost.

Access to Infrastructure – optical network and satellite links.

Favorable policies (to some extent) and regulator.

Strong international brand names.

Weaknesses

Quality of Service.

Low revenue per user (ARPU).

Customer retention.


No clear strategic direction.

Poor organizational structure.

No research and development programs.

Employee skill inconsistency.

Very low employee morale.

Opportunities

Huge market size.

Local handset manufacturing.

Making technology accessible to all (e.g. broadband).

Adopt latest technologies.

Removal of international trade barriers.

Threats

Recession in economy.

Inconsistent and adhoc decisions from regulatory authorities.

Political Instability, Security issues.

Adverse shifts in trade policies of government

CONCLUSION

This is the essence of the information we managed to get from NetSol and form our project i can conclude that NetSol has quite a well established compensation system although we could not get information about the way in which internal consistency is achieved by the organization nor about the strategies for building competitive pay structures yet we have worked on the information that was provided to us by complete commitment.


Zeeshan MaqsoodMBA (COMSATS)Lahore, Pakistan.

E-mail: [email protected]: 0300-4111570


Netsol Final Project

Documents

Transcript of Netsol Final Project