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PAKISTAN TELECOMMUNICATION COMPANYLIMITED-PTCL

(The Organizations Analysis)

Submitted to: Miss Umara RanaSubmitted by: Nauman Feroz 2083286

Asghar Raza

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Table of contents Introduction

Nature of the business

Mission statement Vision Statement

Core Values

Objectives & goals

Scope of the Company

Culture of PTCL

Organizational Management Cycle

Motivation of employees by upper Level Management

Organizational Structure

Recommendations and suggestions

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INTRODUCTION OF TELECOM INDUSTRY

Since the independence of Pakistan, basic telecom services were being provided by a monopolist,

previously called as Telephone and Telegraph department (T&T). The department was being run by the

government and played multiple roles as regulator, policy maker, operator and service provider in thecountry. The T & T department was later converted into a corporation. Although the corporation was

earning huge profits from the services, it was re-investing the same profits into the sector for the

provision of more telecom service but the investment was not enough. Further, with the technological

advancement, more and more telecom services were becoming available but there was not enough

money available with the corporation to install new telecom systems for the provision of modern services.

Resultantly, a digital divide prevailed in Pakistan keeping it behind its neighbors and other comparable

countries in terms of telecom access. Cellular mobile services in Pakistan commenced in 90s when two

cellular mobile telephone licenses were awarded to Paktel and PakCom (Instaphone) for provision of

cellular mobile telephony in Pakistan. Currently there are six cellular players in the market. The Telecom

Sector has contributed 2 percent towards the overall GDP growth with revenues of over PKR 235bn.

PTCL PAKISTAN TELECOMMUNICATION COMPANY LIMITED

Introduction

PTCL is the largest telecommunications provider in Pakistan. PTCL also continues to be the largest

CDMA operator in the country with 0.8 million V-fone customers. The company maintains a leading

position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of

the country. It has the potential to be an instrumental agent in Pakistans economic growth. PTCL has

laid an Optical Fiber Access Network in the major metropolitan centers of Pakistan and local loop

services have started to be modernized and upgraded from copper to an optical network. On the Long

Distance and International infrastructure side, the capacity of two SEA-ME-WE submarine cables is

being expanded to meet the increasing demand of International traffic. With the promulgation of

Telecommunication (Re-Organization) Act 1996, the Pakistan Telecommunication Authority was

established as the Telecom Regulatory body. Following the open licensing policy in BUY @ PKR 45.40

accordance with the instructions of Government of Pakistan and in exercise of powers conferred by

Pakistan Telecommunication (Re-Organization) Act 1996, the basic telephony was put under exclusivity

and PTCL was given a seven years monopoly over basic telephony which ended by December 31, 2002.

The year 2006-07 in the telecom sector witnessed a phenomenal growth in the mobile phone sector in

Pakistan, which doubled its subscriber base to 60 million. The Tele density increased from 26% to 40%,

helping to spread the benefits of communication technology across the country. PTCL's mobile phone

subsidiary Ufone's subscriber base grew by more than 87%, from 7.49 million to 14 million. The year alsowitnessed the entry of major telecom companies, most notably China Telecom and SingTel, into the

market. Restructuring and re-engineering are in their final stages along with the implementation of ERP

system. From the end customer's perspective, a major initiative was put in place in the shape of

'Broadband Pakistan' service launch as a first step towards providing its customer with more value added

service and convenience. With this offering, the PTCL not only bringing the benefit of high speed Internet

access to subscribers in major cities but will also generate new revenue streams for future growth. The

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company also continued to invest in infrastructure development and addition of network capacity with a

view to enhance services and to expand its reach across the country.

Nature of the business:

PTCL is a telecom company and is providing infrastructure to other telecom operators and corporatecustomers of Pakistan.

Mission statement

To be the leading Information and Communication Technology Service Provider in the region by

achieving customer satisfaction and maximizing shareholders value

The future is unfolding around us. In times to come, we will be the link that allows global communication.

We are striving towards mobilizing the world for the future. By becoming partners in innovation, we are

ready to shape a future that offers telecom services that bring us closer.

The mission of PTCL is to achieve our vision by having:

An organizational environment that fosters professionalism, motivation and quality

An environment that is cost effective and quality conscious

Services that are based on the most optimum technology

"Quality" and "Time" conscious customer service

Sustained growth in earnings and profitability

Vision Statement

To be the leading ICT Service provider in the region by achieving customers satisfaction and maximizing

shareholders value.

Core Values

Professional Integrity

Customer Satisfaction

Teamwork

Company Loyalty

Corporate Culture

Objectives of the Company

Objectives & goals

The primary objective of Pakistan Telecommunication Company Limited is to provide telecommunication

services to the people in the country or in short to satisfy the telecommunication needs of its customers.

Responding to the rapid economic and technological growth, the company is determined to meet the

challenge of expanding needs of telephone and data communication such as public data network,

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integrated services digital network and Internet services. The major focus of attention is to improve and

expand the services, minimize the faults and provide communication facilities to rural areas. It is also one

of the major objectives of management that the company should not improve its performance but also

encourages the private sector to enter the Tele business. The company has entered the domain of free

market economy, which necessitates the liberal management policies and private sector. The followingbasic policy steps have been taken to meet the objectives laid in PTCL Act to expand and operate

telecommunication services in the country. The main objective of any company is to earn the profit and

minimize expenses by winning goodwill in the market. The objectives can be divided into two phases:

Financial Objectives

Marketing Objectives

The following are the long-term objectives of the organization:

Telecom services all over the country.

Plan, establish and maintain telecommunication

Acquire, promote and manage research and development , transfer of technology and software

development including manufacturing of telecommunication equipment and plant

Enhance efficiency, improve quality and expand the system to meet customs satisfaction and

provide service on demand.

Create congenial climate for binding of human skill and horizon of employees through training

and education.

Convert its cash basis single entry accounting system to accrual basis double entry system

meeting the commercial international accounting standards.

Launch consumer satisfaction survey.

To introduce computerized directory assistance and complaint services reform billing and a

revenue collection system. Strengthen relation with foreign international administration, entities, services providers,

international and regional telecom organizations for better international communication and

technical cooperation in telecommunication business.

Expand customer awareness of all value-added services of PTCL.

To improve the efficiency of Customer Service Centers by deputing qualified persons who are

well aware of public relation techniques.

To introduce new services of audio Tex and video conferencing for the business community.

Scope of the Company:

PTCL has expanded its business through the following products and services:

PTCL Landline

Since the deregulation of the telecom sector, a large number of foreign investors opted for

licenses in LL, LDI and cellular operations, identifying Pakistan as an emerging market. Investors entered

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the market forcefully in the cellular segment, introducing heated competition for PTCL. In this situation

PTCL's counter strategy for landline service, during the year 2007-08 was aimed to increase ARPU,

acquire new subscribers and contain churn.

To increase operations, PTCL shifted from its conventional duration based charging system to value

based options, like 'Pakistan Package' that offered 5,000 minutes for on-net nationwide calls at Rs.

199/month. PTCL also launched 'International Plus' package to facilitate cost effective international calls

at unmatchable rates alongside offering Voice messaging and Phone n Net services, adding more value

to the landline service. To increase customers' base, 'order on phone' was introduced, allowing customer

to apply for a new connection by simply calling 0800-80800.To tackle the churn PTCL established an

outbound call center to reach out to potential customers with an objective to attain higher level of brand

loyalty.

PTCL V-Fone

PTCL V-Fone (WLL Service) was another major area of focus for PTCL during the year.

A 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 network 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 un-served 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 tellular 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 post-pay unlimited local and nationwide calling packages to bringtraffic back to PTCLs networks to stabilize the revenues. After the initial launch, the Company aims to

retain the momentum by offering different bundled packages for voice to increase the subscriber base;

including specifically targeting the rural areas where copper infrastructure does not exist. On Wireless

broadband front, a major upgrade of PTCL WLL CDMA network is underway to provide Wireless

broadband services in 17 major cities by end 2007. Currently technical trial is in progress which will be

followed by a pilot project on WiMax technology. This will enable PTCL to maintain its competitive edge.

Ufone

(Pakistan Telecom Mobile Ltd) a wholly-owned subsidiary of PTCL commenced itsoperations on 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 telecom

deregulation and cellular mobile policy by the Ministry of IT and Telecommunications (MOIT&T) and the

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support, guidance and timely enforcement of regulatory process by the Pakistan Telecommunication

Authority (PTA).

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.

Paknet Limited

Paknet was incorporated in year 2000 for providing internet related services in the country

is being wound up. However, PTCL has developed its own voice, data and video infrastructure and

services. Paknet's operations have been closed and liquidator appointed for completing the formalities

involving the company closure. All customers, assets, liabilities and capital stand transferred to PTCL in

accordance with the special resolution passed in General Meetings.

PTCL Broadband

The first major product initiative taken towards a changing PTCL during the year 2006-

07, was the launch of PTCLs Broadband service under the theme of Broadband Pakistan by the Prim e

Minister of Pakistan. The service was launched on PTCLs new state of the art Broadband infrastructure

that was added to our network during the last three quarters of 2007 with the initial capacity of over

100,000 subscribers.

PTCL achieved unprecedented success as it added over 10,000 customers within the first 120days of its

launch while historically it had taken four years collectively for all the other operators to achieve 30,000customers in Pakistan! The hallmark of PTCL service was the removal of the traditional barriers such as

the upfront costs of installation and customer premises equipment and added bandwidth download. This

high customer take up also reflected on the Companys trusted image in the eyes of the nation. The

service is already available in the five largest cities of Pakistan and will be expanded into another dozen

cities during the coming year.

Smart Services

In March 2008, PTCL introduced a trial service that put PTCL on the path of a paradigm

shift. Branded under 'PTCL Smart Line; the service included Interactive Television, Broadband and voice

Telephony all at the same time on PTCL's telephone line. The 'Smart TV', for the first time offered TV

viewers the power to control the TV channels interactively. This included the ability to rewind and pause

live TV channels, block / unblock any TV channel for parental lock and search through video on demand

content. The Commercial launch of the PTCL Smart Line services across the three largest cities in

Pakistan was arranged on the 14th of August 2008 which will be expanded to the other cities during the

course of the year.

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Culture of PTCL

Attention to detail:

PTCL employees do work at their best. They always do their work in detail in order to maintain their

organization best of best among the tele-communicative organizations.

People orientated:

PTCL organization is people orientated organization. They always concentrate on their employees.

They say that if their employees are satisfied then it will increase their organization production.

Team orientated:

PTCL employees prefer in team work. They according to them team work is better than individual.

Aggressiveness:

PTCL employees are aggressive and competitive rather than co-operative.

Stability:

PTCL top management decisions and actions emphasize on the employees to maintain their status

and work hard to get goals.

Innovation and Risk taking:

PTCL top management always encouraged their employees to be innovative and takes risk.

PTCL employees donate One-Day salary for IDPs:

PTCL employees have contributed their one day salary that amounts Rs. 20million for the support of

internally displaced people of Swat and other affected areas.

CEO and President of PTCL Mr. Walid Irshaid called on Prime Minister Syed Yousuf Raza Gilani at

PMs House and presented him a cheque of Rs. 20 million on behalf of PTCL employees for PMs

Special Fund for the Relief of Victims of Terrorism

PTCL Management issued Revised Statement of Ethics and Personal Information Form

With a view to bringing more clarity about the company rules and corporate values, a Statement of

Ethics was circulated among employees having the following broader objectives:

a. Bringing a healthy and friendly relationship with employees based on their respect and dignity.

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b. Introducing the culture of in-discrimination and fair practices

c. Providing better working environment to our employees.

d. Creating awareness of the practices which are beneficial for them or otherwise.

e. Up-dation of record.

This is a normal practice which has been implemented in many good organizations and has brought

positive results. However it has come to our knowledge that some doubts and ambiguity have been

created among employees which is not the purpose of this exercise. PTCL always believe that they must

be open and fair with our employees and dont believe in any hidden agenda. They also dont want to

create any fear or feeling of insecurity in the company.

In order to remove any doubt, fear or ambiguity, the Statement has been made more clear and simple. It

has further been decided that the signatures of the employees will not be required on this Statement;

however they should read and follow the Ethical values to bring the culture of hard work, honesty, andmerit in PTCL. Only personal Information Form may be updated.

Organizational Management Cycle

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The cycle above describes the Organizational Management process at PTCL. Yellow blocks describe the

core functions of the Company performed at all levels in the Organization. Blue Blocks are the Strategic

functions which are performed at the Strategic level only.

Cultural/ Workforce Diversity in PTCL

A workforce is considered diverse if it has people of race, color, religion, national origin, gender,

disabilities, physical appearance, sexual orientation, marital status, culture or ethnic group. The most

important global challenged faced by corporate leaders, HR managers and managing consultants is the

successful management of todays increasingly diverse workforce.

PTCL is one of the largest companies in the country with nationwide services. Pakistan like all other

countries has many employment laws enforced to ensure any kind of discrimination is not done against

any specific group. PTCL is also employing people from all over the country. But like any othergovernment organizations PTCL is also facing conflicts among the staff because of nepotism, biasness,

stereotyping and other problems associated with diversity. To address these problems and reap full

benefits of diversity PTCL needs to take a few very important steps. Like training is very important at

managerial as well as all other positions. People need to be properly educated regarding the importance

and benefits of diversity. There interpersonal skills need to be enhanced and supportive environment

needs to be created where constructive criticism and merit is promoted. Thus, these things along with

tolerance for others values can create a very productive environment.

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After the takeover of PTCLs management rights by Etisalat, a UAE telecommunication giant, things

never seemed normal as the huge workforce of PTCL, who were enjoying government jobs for long,

were struck with job insecurity suddenly. Eventually, they all came on roads and protested against the

privatization of PTCL but to no avail as Etisalat was in no mood to quit the venture. Now, Etisalat has

many challenges to face, biggest of all is the bureaucratic environment of PTCL, including many others.Since PTCL has network and infrastructures all over the country therefore, having a diversified workforce

can solve a lot of problems and it doesnt seem to be a bad approach at all, keeping in view the current

position of the organization

PTCL is encouraging workforce diversity and they are introducing quota systems like:

Special persons {disable}

Females

Old employees

Motivation of employees by upper Level ManagementAccording to Mr. Dolat since the company has to rely on shift work they know that the work performed

makes tributes on the employees and their motivation. PTCL have recognized some very common

motivational factors such as salary, working hours and benefits.

According to manager Mr. Mansoor explains that the salary of the workers is controlled by collective

agreements, but PTCL has chosen to pay a salary that is ten percentages higher than the collective

agreement as a way to motivate their employees since they know that the work is very demanding.

Attempts have been made to improve the shift hours and the company welcomes ideas from employees

in order to make improvement of work hours.

PTCL wants to engage their employees in health activities, but it is a small number that participate in

these activities. PTCL has recognized that good salaries and working schedules are two important

motivational factors and the company wants to work with their employees and is very open to

suggestions from coworkers for improving matters and the company would like the employees to be able

to influence their own working environment.

Director Mr. Dolat states that it is very easy for leaders to form an opinion of a certain group. Not all

young people entering the work force want to have challenges, but it is very easy to judge the entire

group as a unity. Managers at PTCL makes attempt to talk and recognize people who want to work in

projects and improve work place. The psychological work environment is considered to be good at PTCL,

which includes friends, coffee breaks, parties, gifts, etc.

The physical environment still needs improvements. Having fun at work is also very important. Leaders

are there to support the fun activities that already exist at work and make them even more stable and

PTCL has improved well in this area, but in the end it is all up to the individual, each individual is

different, but having respect for others as well as for general human values is an important factor. It is

important to be respected, respect others and an individual that can show consideration, be present and

be confident in one self can be generous with others. When recruiting personnel PTCL looks for

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managers with the above characteristics. If a leader has self awareness as well as formal knowledge it

might be a good leader for the company.

Motivation and gender at PTCL

Managing employees is a very important task a manager performs and the relationship betweenmanager and employee can be considered a motivational factor. When managers are motivated

themselves they are better suited at motivating their employees as well although the companies lack

knowledge and experience in the area of motivation the respondents were highly competent. The both

wished to improve themselves, but still they seemed a bit afraid of changes, but they wanted to know

how to progress their performance and worked very hard with this issue. Today it appears that feedback

has gained presence in organizations and the daily feedback has greater importance than having

employee conversations each year. Autonomy is also very important since it allows the flexibility to

balance work and life and this aspect is even more important for the new generation. Workforce diversity

has increased the problems for the management. Nowadays women are working side by side men in

almost every field. The motivational tools used for women are slightly different from those used for male

employees. The managers shall ensure workplace safety for the female employees and also healthy

working environment shall be made available to them. Managers need to understand the psychology of

their female employees to motivate them well.

Organizational Structure

Decentralization

Al though government of Pakis tan st il l ho lds a major it y of share in PTCL but the new

leadership has opted to decentralize the operation to a greater extent in comparison to the

previous. The new management decentralized certain decision to regional /exchange level

such as, DSL l ink approving the authority of another ISP , To we r us ag e permission by otherISPs, approval of new connections, lesser documentation.

W i d e r S p a n o f C o n t r o lSpan of control has been widened for functions such as fields installation, customersupport, exchange operation, etc. Instead of creating redundant managerial levels, a teamleader approach is adopted where required .For example PTCL has reduced number of Gmpositions by appointing only a single regional GM for a particular department.

Less Depar tmenta l iza t ionW i t h t h e w i d e n i n g o f s p a n o f c o n t r o l , t h e departmentalization has also been reduced.

Less Formal iza t ion

Th e mo s t imp o r t a n t a sp e c t o f t h i s re -s t ru c tu r i ng wa s L e ss in g o f f o rma l i za t i o n i nPTCL. Unnecessary ru les , p roducer s documentations, verifications, and approvals wereeliminated in order to cut the red tape and serve customers efficiently and effectively

Recommendations and suggestions

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Major recommendations are:

1. PTCL should improve their contact with middle & lower level employees especially

supervisory level and establish internal performance appraisal system to avoid the future

complications and to evaluate the employee performance and encouraging them.

2. Due to the potential economic problems of the country and the industry employees should be

aware of that the organization will acquire them to work harder. Managers have to

communicate that the company is dependent on the workers and their dedication to

excellence in every aspect of their work

3. The organization has to have close relationships with managers and key employees to

establish a plan for attaining increased excellence in every department. The plan could

include special financial incentives or perks, employee recognition awards and employee

training. Motivating the staff and have them working together will help them focus on what is

important, continue doing a great job.

4. Before organizing and establishing a plan, the manager has to learn all there is about

employee motivation. Focus on processes that help to enhance the involvement of employeesat the company and inspire feelings of responsibility for the company's overall success.

5. Managers should set up employee suggestion systems, focusing on the topic "How to

increase productivity to offset an economic slowdown." Employees are the ones that conduct

work tasks on a routine basis and therefore they are the best to suggest improvements and

help the company survive hard times.

6. The organization has to encourage managers to step to the front lines and become as

pragmatically involved in the day-to-day operations of the business as possible. Many

managers view themselves as being somewhat better than other employees and this

viewpoint can be disastrous during difficult financial periods.

7. Managers should be creative and encourage creativity among employees in the organization.

Search for ways to improve processes and performance so it might become cheaper, faster

and more efficiently.

References

1. Mr. Dolat Nazi r, Director (PTCL office near social security hospital.)2. Mr. Mansoor, (supervisor)3. www.google.com4. www.google.com5. Companys website -www.ptcl.com.pk6. PTA reports

http://www.ptcl.com.pk/http://www.ptcl.com.pk/http://www.ptcl.com.pk/http://www.ptcl.com.pk/