INTERNSHIP REPORT

SUBMITTED TO
QURATULANN BANGASH
AM ( HR & A)
PTCL

SUBMITTED BY
MUHAMMAD AAMIR
&
AROOJ KIRAN

Table of contents:
Acknowledgement....................................................................................................... i
Executive summery................................................................................................. ii
Chapter # 1 Introduction Of PTCL.............................................................................. 3
1.1 PTCL: An Overview............................................................................................ 3
1.1.1 Brief History:............................................................................................... 3
PRIVATIZATION:........................................................................................................... 4
1.1.2 ORGANOGRAM:........................................................................................... 4
1.1.2 VISION STATEMENT:..................................................................................... 5
1.1.3 MISSION STATEMENT:.................................................................................. 5
Goals and objectives of the company:..................................................................5
1.1.4 CORE VALUES:............................................................................................. 5
1.1.5 PRODUCTS AND SERVICE............................................................................ 6
1.2. PTCL: AN OVERVIEW............................................................................................ 9
1.2.2Structure of the organization.......................................................................9
1.2.1. STRUCTURE OF HR DEPARTMENT.............................................................15
1.2.2. Culture of the organization.......................................................................15
1.2.3. Customers & Markets............................................................................... 16
Chapter 2: A Managerial View of PTCL......................................................................17
2.1 Planning:......................................................................................................... 17
2.1.1 Planning Process and Related Issues:........................................................17
Probability Theory:............................................................................................. 18
2.2 Organizing:...................................................................................................... 19
2.2.1 Organizational Structure and design:........................................................19
\2.2.2 Organizing the human resource:..............................................................20
2.3 Leading............................................................................................................ 20
2.3.1 Groups and teams..................................................................................... 20
2.3.2 Motivational Techniques Used to Increase Productivity.............................20
2.4 Controlling....................................................................................................... 21
2.4.1 Basic controlling Authorities......................................................................21
Chapter 3: Structure and Design.............................................................................. 22

3.1 Divisions/Departments.................................................................................... 22
3.3 Structural Dimensions..................................................................................... 25
3.3.1 FORMALIZATION........................................................................................ 25
3.3.2. CENTRALIZATION...................................................................................... 25
Chapter: 4 Review of the Past Performance through Financial Analysis....................26
Chapter 5: Human Resource Management (HRM) Practices.....................................34
5.1 HR Department............................................................................................... 34
5.2 Job Analysis..................................................................................................... 34
A. Job Specification............................................................................................. 35
B. Job Description:.............................................................................................. 35
5.3 Recruitment & Selection.................................................................................. 35
5.4 Orientation:..................................................................................................... 38
5.5 Training & Development:.................................................................................38
5.6 Performance Management................................................................................. 39
5.7 Benefits & Compensation:...............................................................................39
Chapter 6: SWOT Analysis........................................................................................ 40
6.1 SWOT ANALYSIS OF PTCL:................................................................................ 40
6.2 Recommendations........................................................................................... 44
6.2 CONCLUSIONS:................................................................................................ 45

Acknowledgement
In the name of Almighty Allah who is most merciful, and who give me strength to write this
internship report in a different way.
I extend my heartiest thanks to my seniors, colleagues, and subordinates who assist me on every
occasion to enable me to write this report.
My parents, classmates, friends come next in the list of those whom I have to thank.
I pay special homage to the following persons.
Sir usmannasir&
Miss. Qurrat-ul-ain

Executive summery

This report is the practical part of the most vital practice of our BS(hons.) in management
sciences, HRprogram. The sole objective is to familiarize the student with the practical
manipulation of business organization. This report has been written to know how big
organizations like PTCL manage their teams to achieve their common goals. In the first phase of
the report there is the general introduction about the company and then different terms have been
explained, then the mission, values, different services and different strategies of the organization
have been explained. In the next part, SWAT analysis of the firm have been done by the help of
which it is identified that what are the strong areas of the company and where it lacks so that it
can improve.

Chapter # 1 Introduction Of PTCL

1.1 PTCL: An Overview
Pakistan Telecommunication Company Limited (PTCL) is the largest telecommunication
company in Pakistan. PTCL provides telephonic services to the nation and is the backbone for
country's telecommunication infrastructure. The company consists of around 2000 telephone
exchanges across Pakistan. They provide the largest fixed line (land-line) network, currently
having 4.8 million fixed line customers. GSM, CDMA and Internet are other services of PTCL.
The Government of Pakistan sold 26% shares and control of the company to Etisalat (U.A.Es
telecom company) in 2006.

1.1.1 Brief History:

PTCL is a largest telecommunications provide 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 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 Net work 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 cable is being expanded to meet the increasing demand of international
traffic.
1947

Inception as Post & telegraph Department

1961

Conversion into Telephone & Telegraph (PT&T) Department

1990

Conversion into PAKISTAN Telecom Corporation (PTC)

1994

Listing on all stock Exchanges of Pakistan as a public limited company thus

becoming Pakistan Telecommunication Company limited (PTCL)

1995

Separartion of three
organizations:Pakistan
corporation(NTC)

2001

Establishment of mobile (Ufone) & internet (PakNet) subsidiaries

2006

Etisalat takes over management control of PTCL

PTCs department as
Telecom
Authority

independent Government
(PTA),Telecommunication

PRIVATIZATION:
In April 2006, Emirates Telecommunication Corporation, commonly known as Etisalat, acquired
26% shares of PTCL along with Management Control. Etisalat has been the telecommunications
service provider in the UAE since 1976 and stands 140 among the Financial Times top 500
corporations in the world in terms of market capitalization and is ranked as the 6th largest
company in the Middle East in terms of capitalizations and revenues. Etisalat is currently
operating in 18 countries namely UAE, Saudi Arabia, Egypt, Pakistan, Afghanistan, Sudan,
Niger, ivory coast, benin, togo, Tanzania, bukina, paso, gabon and central African republic and is
continuing to pursue new mobile and fixed line opportunities in many developing markets.

1.1.2 ORGANOGRAM:

CEO
CHRO

EVP

GMs

SMs
MGR/AM
SUPPORTING
STAFF

1.1.2 VISION STATEMENT:

To be the leading information and communication Technology service provider in the region by
achieving customer satisfaction and maximizing shareholders value.

1.1.3 MISSION STATEMENT:

An organizational environment that fosters professionalism, motivation & quality.

An environment that is cost effective & quality conscious.
Services that are based on the most optimum technology.
Quality & time conscious customer service.
Sustained growth in earning & profitability

Goals and objectives of the company:

Profit maximization
Differentiation
Cost leadership ( for the time being)
Retain customers
Best and affordable service

Needed competencies to achieve the GOALS:

Following are the needed competencies for achieving companys objectives

Employees behavior
Skill and experience
Networking
Loyalty

1.1.4 CORE VALUES:

Professional Integrity
Teamwork
Customer Satisfaction
Loyalty to company.

1.1.5 PRODUCTS AND SERVICE

Pakistan Telecommunication Company Limited not only ProvidesConventional telephone

facilities, it also offers optical fiber services to the private sector. We will briefly discuss below
the product lines being offered by the PTCL.
BasicallyPTCL divide their services into two parts.
1.services for consumers
2.services for corporate customers

Services for Consumers

These services are basically for the common users(Individual/home users)those use telephone
intheir home/work placeand they are basically non business users.
a) New Telephone Connections:
As mentioned earlier, PTCL is presently the only telecom company,whoprovided fixed-line
telephony in the country.Sowhenever, any Private business concern or any individual needs a
new telephone connection for provision of telephone service.
b)Value Added

Services:

CLI(Callers Line Identification)Caller Line Identification (CLI): Calling line Identification

(CLI) allow customers to identify the caller before picking up the phone receiver. To subscribe to
CLI services, a customer needs a telephone set with display capability or a CLI device attached
to the phone.

Advantages:

Check on obnoxious calls.

Complete record of incoming / outgoing calls with time & date.
User Friendly

PREPAID CALLING CARDS:

PTCL calling card is the most popular choice of millions of customers all over the
country. It is now available with balance transfer facility and follow on call facility.

Comes in easily affordable denominations of Rs.100, 250, 500, 1000 and 2000.
Easily available throughout the country
Easy to use from any PTCL digital phone(Dial 1010)
Fast and easy nationwide and international access
No line rent and no Phone bills
24 hours customer services through toll free number (0800-80800)

Advantages

Customer can save his time by paying his bill on phone

Customer can pay his bill whenever he wants

DIGITAL FACILITIES:
PTCL offers a variety of features to digital exchange customers like:

Hotline
Abbreviated Dialing.
Call Waiting
Dont Disturb
Call Transfer on (a) Busy (b) No Reply (c) Immediate
Wake up call
Absent Subscriber
Code Barring

Prepayment Telephony Services (PPT)

With the changing trends most telecoms are diversifying their services
towardsPrepaidsolutions .one of such modern era telecommunication service is PrepaymentTele
Phone (PPT).It provides the facility to subscriber to load a prepayment Telephonycardagainst
theirtelephone number thereby generating an account on I/N platform and any call madefrom
that telephone will be charged to this account.the service will provide state of art technological
facilities to the subscribers.

SERVICES FOR CORPORATE CUSTOMERS

PTCL is striving hard to facilitate its valued corporate customers at each level of service. PTCL
offers a host of unmatched services to suit the needs of the Corporate Customers. The list of
Corporate Services is given as under. For more information regarding any of the following
services, PTCLCorporate Customer Centers can be contacted.

Universal Access Number(UAN):

UAN (Universal Access Number) service is ideal for organizations Engaged in marketing of
products or services. Here is a list of business who can avail UAN Service.
Banks
Insurance
Newspapers
Credit Card Companies
Airlines
Travel
Hotels
Courier Services
Shipping Lines
Utility Services
Fast Food Outlets
Trading Companies
Consumer
9

Stock Brokers Products Companies

Voice Messaging Service: (VMS)

With PTCL Messaging Service, you can have all for (or Desired) calls recorded when you
are absent, busy on phone or do not want to attend the calls for any reason. You can, later
on at your convenience, retrieve all recorded messages from any telephone anywhere in
the country.
Security of message is ensured against eavesdropping through subscriber controlled
password.
PTCLVMS is designed for those who do not want to miss a call or Fax because that can
be beneficial.
Great for anyone owning a telephone or Fax, at home or business.
Much more powerful and flexible than answering machine due to Message options
available in your voice mail system.

1.2. PTCL:AN OVERVIEW

1.2.2Structure of the organization

During my internship at PTCL I worked in fallowing department ofPTCL

Marketing department
Customer Care & Customer Services department
HR department
Finance department
Commercial department
Operational department
Technical department
IT department
Corporate development department
Special department

Marketing department

10

Marketing Department is called a revenue generating department of an organization.Marketing

Department undertakes market research and gives feedback to management about
customersneeds and wants on the basis of which, products and services are developed and
positioned to give value to the customers. Thus Marketing
Department of an organization plays a pivotal role in its business development, growth &
expansion. During my internship I worked with PTCL marketing department. Through working
there I gain so much practical knowledge that will help me during my practical life.For
understanding the work flow and the operation of the department we have to movein certain
manner. We have to look the key operation the structure of the department and in the end the
focus will be on the critical analysis.
Marketing Strategy
Normally, a marketing strategy identifies the target markets, the desiredposition in eachmarket
and the marketing mix that will persuade those target markets to part with their money. Market is
targeted through market segmentation. Segmentation can be done on four types i.e. Demographic
Segmentation (age, gender, race/ethnicity, household type, home ownership, education,
employment, income etc.), Geographic segmentation. Positioning oneself by product can do
positioningdifferentiation,positioning
by
product
usage,
positioning
against
a
particularcompetitor, positioning against an entire product category, positioning by association
and positioning by problem, Marketing Mix includes Ps i.e. Product, Price, Promotion and
place.

MARKETING MIX Product Planning:

In PTCL, so far products had been planned and developed by the engineering department and
marketing professionals had no role in product planning as there was no marketing department in
the Company. But now marketing professionals have been inducted in the Company and they
will definitely have a close coordination with engineering department in planning and
development of products to satisfy customers desires. It should also be kept in mind that PTCLis
a technical organization enjoying state-of-the-art telecom technology. The services offered by
PTCL are built in the technology and with the passage of time; PTCL rolls out theseproducts in
the market. even many products, which have become obsolete in developed countries, are
launched as new products by PTCL. But we cannot deny the fact that being monopolist, PTCL is
deprivingcustomers of many digital services that are available free in many othercountries.
However, as the Marketing department has been established now, it is expected that in future
there will be close coordination and liaison between marketing professionals and engineers for
planning and developing customers oriented products. PTCL is also in the process of hiring
brand Managers to manage its different products in a thorough professional way.
11

Pricing Strategy:
Being a government organization, PTCL is not authorized to determine the prices of its products
itself; the Telecom Regulator Authority viz. Pakistan Telecommunication Authority (PTA) fixes
the prices of telecom services. The process is such that whenever PTCL intends to increase
orreduce the rates of its services, it submits its Proposal to PTA for approval. PTA then calls
consumers representatives, journalists and other interested groups for discussionon the proposal.
After listening to the viewpoints of all the interested parties, PTA gives its decision. If PTA
approves PTCL s proposal, the new rates are enforced. It may be mentioned here that
telecomtechnology is onlytechnology whose rates are on the decline with the passage of time.
PTCL also rationalizes its tariff with the passage of time
PROMOTIONAL STRATEGY
PTCL is using following components of promotional mix for the promotion and Publicity of its
product/services.
Advertising:
In promotional mix, PTCL s main stress is on advertising in print and electronic media. PTCL
periodically places its advertisements in print media on services like H/Qs hotline 0800-44544,
Caller line identification (CLI), Voice Messaging Service, Digital Facilities, PTCL
Prepaid Calling Cards, Inquiry17, Complaint 18,phone bill cards prepaid telephone etc. To
remind the customers of these services.
Sales Promotion:
PTCL charges 1/3rdrates on national calls from 06:00 pm 07:00 am and localcalls are free from
11:00 pm to 06:00 amto promote the usage of its telecom network. Moreover,PTCL offers
special rate packages on special occasions like Ramadan Package and EID package, which offer
customer reduced rates for specific timings. For Example, In EID Package PTCL charges half
rates from 6:00am -6:00pmand quarter-37-from 6:00pm 6:00 am to attract customers to use its
telephone service. These rates result in increased revenue for PTCL and also facilitate the
customers to talk to their near and dear ones on these special occasions on affordable rates.

CUSTOMER CARE & CUSTOMER SERVICES DEPARTMENT

PTCL has established its Customer Services Department at different levels the overview of the
said department is as follows.

Corporate Customer Care Center

Operation Region Level
12

Customer Services Centers Tehsil Level

Toll Free Help Lines
For Complaint & Enquiry

Finance department

This department is divided into following three sub-sections:

Finance

Accounts

Revenue

The Finance Wing deals with the revenue matters of the company & the Accounts Wing is
responsible for proper book-keeping of the financial transactions, commercial audit &
preparation of periodic accounts of the company. The Accounts Office of PTCL is in Lahore.
Finance is the backbone of every organization because without finance any organization cant
run its business. It plays an important role in determining the long-term objectives and evaluating
the feasibility of the business. The financial activities of PTCL have been split up into three
major branches: Finance, Accounts & Revenue. The details regarding this section will be covered
in finance section with reference to my project

STRUCTURE OF THE FINANCE DEPARTMENT

Initially, Finance Department was supervised by GM but after the recent change in management
structure, Finance Department of PTCL is headed by Senior Executive Vice President (Finance),
who is responsible for accounting and finance functions of the organization. The Senior
Executive Vice President is the head of Accounts Department and the Vice Executive President
Finance is the head of Finance Department.
Diagram 5.1

13

H ie r a r c h a l S t r u c t u r e o f F in a n c e D e p a r t m e n t

S E N IO R V IC E E X E C U T IV E P R E S ID E N T
E V P (A c c o u n ts )
G M (S to re s )

G M (A c c o u n s )

E V P (F in a n c e )

E V P (R e v e n u e )

G M (F in a n c e )

G M (R e v e n u e )

Senior Vice Executive President (Finance)

Executive Vice President (Accounts)

Executive Vice President (Finance)

Executive Vice President (Revenue)

General Manager (Store)

General Manager (Accounts)

General Manager (Finance)

General Manager (Revenue)

FUNCTIONS OF FINANCE DEPARTMENT

Finance system of the organization

Accounting system of the organization
14

Mobilization of funds
Generation of funds
Allocation of funds

Commercial Department

Commercial section with qualified/experienced staff is being established.

Company section is taking both short-term and long-term view of emerging trends of
highly competitive markets as its monopoly is coming to an end.
It analyzes all the possible Company options, i.e. introducing new services, adopting new
technologies to maintain the leading role in the sector and preserve its dominant position
in the industry.
The Company likes to reiterate that it will continue to play a prominent role in Telecom
sector of Pakistan.
It considers that one of the most important aspects of the forthcoming competitive
environment is pricing of products and services.

The new paradigm would require cost-based services with thin-profit margins but higher
volumes. Inherently, PTCL services were not cost-based. There were in-built subsidies and
long distance calls, both domestic and international, were highly priced. The Company,
therefore, evolved strategies of gradual price rationalization
Operational Department
Manages operations of PTCL HQ, with regional offices, branches, and, subsidiaries as well as
with other corporations.
Technical Department
This department is engaged in the management and control of technical aspects of the company,
e.g. technical manpower, technical training, technical equipment, etc.
IT Department

This department is established to introduce new and advance technology in PTCL. Due to IT
department working system is to converted in a computerized system.
15

Corporate Development Department

This department deal corporate level issues such as PTA, International Telecom Union, Legal
and Regulatory affairs etc.

Special Projects Department

This department is doing their activities on behalf of president.

Human resource department:

It is a huge organization and being considered as one of the biggest company in Pakistan.

It has more than 56,000 employees and a huge network of organizational management has
been spread throughout the country.

PTCL is engaging a substantial number of experts and specialists of standing caliber in

different spheres of profession.

Job analysis and revision of jobs description was undertaken for improving the performance
standards.

To meet the future challenging situations in the face of privatization and post

Monopoly challenges, a corporate culture and competitive environment has to be

Developed, for which all the available resources have been taped.

Special training courses and workshops have been conducted for the top and middle
management through reputed organizations like UST Bannu.

Efforts are being made to improve productivity and efficiency of the Company while
16

emphasis is also being placed on effective management employees relationship and better
line of communications to achieve corporate goals

GM

1.2.1.
SM STRUCTURE OF HR DEPARTMENT
SM HR BP
SM HR BP

MEDICAL
CENTRAL
SR.DENTA
L
SERGENT

SMO
RTTS

SMO
MTR

SMO
CTO

SMO
GTR

SLMO
MTR

SMO
FTR

SMO
MTR

SLMO
FTR

SLMO
MTR

SM HR BP
FTR

SM HR BP
MTR

CENTAL

CENTRAL

MGR HR
BP

MGR HR
BP

MGR
ADMIN

MGR HR
BP
GTR

MGR
ADMIN
FTR

MGR
ADMIN
MTR

MGR EFC

MGR
PAYROLL

MGR
SECURITY

MGR HR
BP GTR

MGR HR
BP
FTR

MGR HR
BP
MTR

17
SLMO
GTR

SM HR BP
GTR

SM ADMIN
CENTRAL

1.2.2. Culture of the organization

PTCL place a strong emphasis on the development of our human capital by providing them
with numerous learning opportunities that are in sync with our corporate objectives.
In recent years, PTCL has firmly established its reputation for redefining and realigning
the industrial relations paradigm. In line with contemporarybusiness requirements, it has led
organizational development and employee welfare by successfully creating a win-win situation,
both for the employees and the organization, to emerge as anemployer of choice.

1.2.3. Customers & Markets

The annual report of Pakistan Telecommunications Authority (PTA) has declared Pakistan
Telecommunication Limited (PTCL) to be the market leader in broadband within Pakistan. PTCL
lead the market share in Broadband in FY2012 by claiming 60 percent share whereas last year,
the company owned 57 percent of the total broadband connections in the country.
Broadband subscribers had crossed the figure of 2 million with a 41 percent growth rate during
FY2012. According to the latest statistics available on PTA website, broadband subscriber of

18

PTCL reached over 2.35 million depicting a growth of 9.9 percent within 6 months from June
2012 till December 2012.
The total number of Broadband subscribers was 2.1 million as compared to 1.49 million last
year. The total broadband penetration in the country still remains at 1.2 percent, up from 0.89
percent at the end of previous year. Since 2007, the broadband industry has maintained a growth
rate of 127 percent, which coincides with the fact that PTCL started its broadband operations in
the same year.

Chapter 2: A Managerial View of PTCL

2.1 Planning:
Plan is a document that outlines how goals are going to be met including resource allocations,
schedules, and other necessary actions to accomplish the goals.

19

Planning is a process that involves defining the organizations goals, establishing an overall
strategy for achieving those goals, and developing a comprehensive set of plans to integrate and
coordinate organizational work.

2.1.1 Planning Process and Related Issues:

Planning tools that are used in PTCL are as follow:

Budget
Probability theory
Scheduling
PERT network analysis

Budget Planning:
A budget is a numerical plane for allocating resources to the specific activities.
Budget Plan Packages of PTCL
1. Basic Budget (For Low end Users)
Package charges: of Rs. 249 per month
Free minutes : 200 On-Net minutes
Line rent: Zero
Package type: Opt In
Subscription: 1st of next month

2. Budget Plus (For Low to Medium Users)

Package charges: of Rs. 399 per month

Free minutes : 400 On-Net minutes

Line rent: Zero

Package type: Opt In

Subscription: 1st of next month

20

3. Family Budget (For Medium to High Users)

Package charges: of Rs. 699 per month

Free minutes: 750 On-Net minutes

Line rent: Zero

Package type: Opt In

Subscription: 1st of next month

4. Business Budget (For Business / Commercial users)

Package charges: of Rs. 1,999 per month

Free minutes : 3,000 On-Net minutes

Line rent: Zero

Package type: Opt In

Subscription: 1st of next month

21

Probability Theory:
Probability means expectation of a particular situation. Every organization makes their
expectation of different things e.g. expected rate of future salaries, number of skilled employees,
etc.

Expected rate of increase per annum in future salaries 8%.

Expected rate of return per annum on investments by funds 10%
Actual return on investments Rs. 3,310,530 thousand Indexation of pensions 5%.
Expected withdrawal rate based on Experience.

CHRO
2.2 Organizing:

EVP HR
2.2.1 Organizational Structure and design:
GM HR
BZS
SM
SM
Medical manager
MOs

Manager

SM
admin

SM
Medical

SM
Manager

MOs

Manager

AM
supportin
g staf

GM HR
BZC

GM HR
BZN

AM
22

Supporti
ng Staf

SM
Admin

SM
SM
Medical Manager
MOs Manager
AM
supportin
g Staf

SM
Admin

\2.2.2 Organizing the human resource:

2.3 Leading
PTCL is leading company in the market, Till December 2002 due to its monopoly status in the
country and was the sole and largest Telecommunication services provider in Pakistan. Now
there are five other companies in the market. PTCL aims at using the latest technology for its
services. PTCL is also inducting professionals in the field of engineering and information
technology. It is also getting consultancy from international companies in order to remain leader
in telecommunication sector.

2.3.1 Groups and teams

In PTCL there are different temporary base group which are working together to achieved a
specific object of the organization.

2.3.2 Motivational Techniques Used to Increase Productivity

PTCL conduct different kinds of workshop r seminar through which the Motivate there employee
in there working environment and also provide opportunity to come in this session in which SM
also there so they can easily communicate with them to solve any query r ask any question freely
related to certain topic.

23

2.4 Controlling
2.4.1 Basic controlling Authorities

CEO

CHRO

EVP

GMs

SMs

MGR/AM
SUPPORTING
STAFF

24

Chapter 3: Structure and Design

3.1 Divisions/Departments

HR
DEPARTMENT
SPECIAL
PROJECTS
DEPARTMENT

COMMERCIA
L
DEPARTMENT

FINANCE
DEPARTMENT

PTC
L

OPERATIONA
L
DEPARTMENT

IT
DEPARTMENT

CORPORATE
AFFAIRE
DEPARTMENT
TECHNIACAL
DEPARTMENT

25

3.2 Geographic Distribution

MAIN OFFICES

The Head Office of Pakistan Telecommunication Company Limited is situated in Sector G-8/4,
Islamabad, which is headed by the President.
Besides, it has Regional Headquarters like:

Islamabad Telecom Region,

Rawalpindi Telecom Region,
Hazara Telecom Region Abottabad,
Northern Telecom Region-I Peshawar,
Lahore Telecom Region (South),
Lahore Telecom Region (North),
Multan Telecom Region,
Faisalabad Telecom Region
Southern Telecom Region
I Hyderabad
Southern Telecom Region-II Karachi
Southern Telecom Region-V Sukkur
Western Telecom Region Quetta.
Switching network Central region Lahore.

These Regions provide Telecommunications services to the customers in their respective areas.
Apart from these, PTCL has an Optical Fibre Construction Region Lahore and Optic Fibre
System Islamabad, each headed by a General Manager to install, operate and look afteroptic fibre
systems/cables.

26

27

3.3 Structural Dimensions

3.3.1 FORMALIZATION
The degree to which an organization relies as rules and procedures to direct the behavior of
employees is formalization. The PTCL organization structure operates with standardized
guidelines, rules and regulations. Each officer/official knows his/her responsibilities of what he
has to do. Due to these strict rules and regulations the PTCL organization's structure is more
formalized.

3.3.2.CENTRALIZATION
The term centralization describes where the decision making authority is.
In PTCL, organization decision making is highly centralized at upper levels of management.
Problems flow up to senior executives, who decides what, should be done.
In some cases, decentralized policy is used and decision making is delegated to lower levels of
management. Which is not correct and creates problems in the creation of long term value aided
strategies.

28

Chapter: 4 Review of the Past Performance through

Financial Analysis

Liquidity Analysis:

The measure to meet the current liabilities with current assets. This ratio have different meaning
for the point of view of creditors and the owners of any company. For owners of any company
high liquidity means inefficiency of its company and inefficiency of the management of that
company, whereas for the creditor it will be considered as a favorable obligation. Following are
the most commonly used liquidity ratios used by any company to analyze their liquidity.

Current Ratio:

The formula to calculate the current ratio is to divide the current assets by the current liabilities,
this will show the ability of any firm to cover up their liabilities with assets. Table below will
shows the three year current ratio of PTCL:
Current Assets
Current Liabilities
Current Ratio

2011
39,369,186
20,612,564
1.91

2012
50,168,177
30,275,532
1.66

2013
54,202,838
24,447,741
2.22

(Rs. In Thousand)

29

Chart Title
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
2011

2012

201 3

Interpretation:

Current ratio of 2 is reflected satisfactory, firms listed on quality & Poor 500 Index has a mean
current ratio of 1.5. But in 2011, current ratio was 1.91 and in 2013 the current ratio is 2.22 i.e.
Pakistan Telecommunication Company Limited has Rs.2.22 to pay Rs.1 of every short term
liability. The current ratio is giant because PTCL has retained less on investing in capital
disbursement collate to 2012. In 2012 they have spent Rs.17.51 billion in capital expenditure
while in 2013 it is 10.11 billion.

Quick Ratio:

Quick ratio display the power of business firm that how quickly it can remunerate into non
liability without taking into the inventorying and prepaid expenses of the firm, which are least
liquid portion of the current assets. Liquidity means the ability of an asset to be converted into
cash without significant loss in value. It is calculated as current assets subtract inventory divided
by current liabilities.
Quick Assets
Current Liabilities
Quick Ratio

2011
35,942,564
20,612,564
1.74

2012
45,732,498
30
30,275,532
1.54

2013
50,323,632
24,447,741
2.06

(Rs. In Thousand)

Chart Title
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
201 1

2012

2013

Interpretation:

Quick portion of the business firm is almost to stream ratio of the firm as it has decreased from
2011 onwards but still it is encouraging. Display that the firm is liquid enough to wage its
liability at short circuit notice but this trend of increasing is favorable for short term creditors of
the firm. This ratio has been affected by the huge amount of dividend declared by the fellowship.
The company can easily improve the ratio by reducing the dividend in the future but they have to
consider overall situation i.e. investors involvement, creditors interest etc.

Receivable Turnover Ratio:

31

This ratio provides penetration of the caliber of the houses receivables and how successful the
firm is in its collection. In short it tells the bit of time receivables into annual net credit rating
2011
2012
2013
Total Revenue
75,972,363
69,085,436
65,277,025
Receivables
7,645,845
7,573,730
5,228,560
R.T.Ratio
9.94
9.12
12.48
sales.

Chart Title
15.00%
10.00%
5.00%
0.00%
2011

2012

2013

Interpretation:

The higher the proportion, the shorter will be the meter between the typical sales and cash
collection. The drift analysis shows that turnover ratio is decreased in 20twelve while increased
in 2013. In the year 2013 receivable turnover ratio are 12.48 shows that PTCL is turning its
receivables into cash more than twelve times in a financial year. This trend of decreasing in this
ratio is because of decrease in receivables is less than the decrease in the sum gross.

32

Inventory turnover ratio:

This ratio determines how effectively the firm is managing its inventory. It is calculated as price
of goods sell divided by inventory. In the case of PTCL we will put operating toll.

Operating Cost
Inventory
I.T.Ratio

2011
39,608,639
3,326,622
11.91

2012
41,687,918
3,435,679
12.13

2013
45,564,338
3,879,206
12.00

Chart Title
12.20%
12.10%
12.00%
11.90%
11.80%
2011

2012

201 3

Interpretation:

Inventory turnover ratio was 11.91 in 2011 but increased to 12.13 in 2012 and in 2013 it again
decreased to 12.00. However PTCL has shown good public presentation in 2012 by controlling
inventoryturnover.
33

Profitability Ratio:

Ratios that relate profits to sales and investing are called profitability ratios. It is of two type i.e.
profitability to sale & profitability in relation to investment.

ROI:

It is calculated as net after taxes divided by total assets

Net Profit after Taxes

Total Assets
Return on Investment

2011
26,605,657
135,884,608
19.58%

2012
20,777,430
152,240,022
13.65%

34

2013
15,638,753
152,820,860
10.23%

Chart Title
20.00%
18.00%
16.00%
14.00%
12.00%
10.00%
8.00%
6.00%
4.00%
2.00%
0.00%
2011

201 2

2013

Interpretation:

Return on investment in 2013 is ten .23% that is a profit over the business firms investment
resulting from its operations. It explains that the firm has earned a 10.23% over each rupee
invested in 2013. ROI in 2011 and 2012 is nineteen .58% and 13.65% respectively.

Return on Equity:
It is calculated as lucre profit after revenue enhancement (minus preferred stock dividend)
divided by shareholders equity. Return on equity reflects the earning mightiness of shareholder
Holy Writ value of investment. A high school comeback on equity reflects the firms acceptance
35

of strong investment opportunities and effective disbursal management.

Net Profit after Taxes

Shareholders equity
Return on Equity

2011
26,605,657
100,014,031
23.6%

2012
20,777,430
105,475,464
19.7%

36

2013
15,638,753
110,913,264
14.10%

Chart Title
25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
2011

2012

2013

Interpretation:
In 2011 and 2012 ROE was 26 .6% and nineteen .7% respectively and in 2013 it is 14.1%. The
drift is negative and decreasing continuously. PTCL has shown twenty-eight % decrease in ROE
in 2013 as compared to that of 2012. The debt ratio is not too high which way that there are
strong investment opportunities. And there is effective disbursal management but PTCL will
have to control its decreasing trend of ROE.

37

Financial Position:

(Rs.in Million)
2011
51000.00
47261.88
98261.88
25466.33
0.00
740.74
28020.31
152519.86
272157.85
195333.27
76824.58
18588.82
6607.44
39011.64

Paid-up Capital
Reserves & Surplus
Shareholders Equity
Deferred Taxation / Liabilities
Suppliers Credit
Long Term Security Deposits
Current Liabilities
Total Assets
Fixed Assets (Gross)
Accumulated Depreciation/Amortization
Fixed Assets (Net)
Capital work in progress
Long Term Investment
Current Assets

2012
51000.00
54473.96
105473.96
30155.46
0.00
707.67
20548.66
156948.72
286306.06
207417.35
78888.71
9781.29
6607.44
47359.33

2013
51000.00
49782.47
100782.47
8872.84
0.00
529.36
38583.25
181908.48
308015.24
223906.98
84108.26
8268.17
7791.30
74917.96

Chapter 5: Human Resource Management (HRM) Practices

5.1 HR Department

38

Human Resource Department of PTCL was accepted in 1996 and was restructured in 2005 when
Etisalat took over the charge of management and acquires 26% shares of PTCL. Pakistan
Telecommunication Company Limiteds human resource system if also called as HRIS-PTCL
and is under control of SEVP Human Resource & Administration at their respective regional
centers.
HR Manager & HR Asst. Manager plays the most vital role in the ranking and also in between
the top board and the lower level workers. They are the most essential people to attain the
companys general objectives and goals by managing properly the most practical assets of the
company.

5.2 Job Analysis

Job analysis is exploration of activities in-accordance to the job. It is the initial task to be
performed.
In PTCL Job analysis is done by some strategy manual:

For future yield they do predictions

After they do forecasting they examine the vacant position, either it is in the Head
Quarters, CCS, Regions or somewhere else.
They also engage managers and supervisors for collection of data, and also give their
own inputs.
PTCL collect data for analysis through informal questionings, interviews as well as
observations about the specific job.

Job analysis is done to analyze that:

What type of work is required for the job?

What tasks and activities should be performed?
What competencies are required for the job?
What person should be hired for the job?
What type of qualification is require to perform the job?
Where the job is going to be performed?
A. Job Specification:
After they analyze the job, job specification is written in which following things are taken under
consideration:

Experience
39

Qualification
Skills Required
Personality & Behavior

B. Job Description:
After the job specification the further step is taken towards job description and write details of
responsibilities, duties, working conditions and other main aspects of job.

5.3 Recruitment & Selection

Human Resource are concerned with seeking, selecting and hiring qualified employees which
suits best to the vacant position.
The process of recruitment and selection has been shortened a lot, if we compare the recruitment
process, with the process couple of decades back. It took several months, almost more than a
year to recruit staff, but now the recruitment process has been made fast and convenient. Political
pressure was also a major hurdle to select the employees on merit and often resulted in recruiting
more than actually required. But now all the staff is hired and selected on merit and is purely
business-driven.
It was experienced that the process of hiring the candidates has become much faster and the
management can hire a candidate within a fortnight. It has also become possible to attract and
hire the best talent from the market, as they are providing market-based salaries. PTCL have a
condition that they only accept applications from the persons who gets 70% or above marks or
CGPA of 3 or above. The company also arrange the job fairs at different universities to get the
best lot of students from universities.

PTCL, like other companies use different origins for fulfilling their empty positions. Firstly the
company identify, how many workers are required to fill up and how many positions. Job
analysis is done by Pakistan Telecommunication Company Limited HR governing body
consisting of highly skilled management of PTCL. PTCL evaluates it as per according to the
procedures given by the Pakistani Government then putting in forward the Labors Law enforced
in Pakistan and Pakistan Telecommunication Company Limited.
The main sources which PTCL use for recruitment is as follow:

40

Direct Staff
Outsourcing Staff
Internal Candidates
External Candidates

Direct Staff:
Direct Staff i.e. the management staff which is above the 17th grade are recruited by the Head
Quarter of PTCL established in Islamabad. They include all the staff that is above the rank of 17.
That means A.M and above posts are recruited directly from the Islamabad.
Process
Following is the Flow chart of the process of recruiting direct staff
PTCL Website/Portal

C.V Upload

Short Listing

Video Confrencing

Information of Candiddate

Medical of Candidate

Appointment Letter

Outsourcing

41

Outsource staff is recruited by the third party vendors, Mr. Usman HR recruiter and Assistant
Manager of EFC (Employee Facilitation Center) recruits the outsource staff.
Outsourcing is done for the non-managing staff of PTCL which includes the following
designations:
FSA

Field Sales Agent

CPEI

Customer Premises Equipment Installer

CCA

Call Center Agent

CCE

Call Center Executive

CSR-I

Customer Services Representative-I

CSR-II

Customer Services Representative-II

Internal Candidates:
Methods PTCL use for selection of their internal candidates are:

PTCL has an online Performance evaluation software known as PMS

Performance should be measured by asking the immediate boss of an employee.
Boss may nominate his/her employee who is eligible.

External Candidates:
For creating a pool of candidates PTCL use the following methods:

Different media channels

Submission of C.Vs online.
Recruiting firms
Recruiting sites (Rozee.pk etc.)

42

5.4 Orientation:
Orientation is given to new employees according to manual/forum

Policies, Rules and Regulations of the organization

Duties and responsibilities to be performed
Routine Task
Communication to colleagues and immediate boss

5.5 Training & Development:

Orientation is given to the new employees in which following things are elaborated to them:

Policies of the company

Rules and regulations of the company
Duties to be performed
Responsibilities that need to be took care off
Routine task of company
Manuals
Whom to communicate/immediate boss

On The Job training:

On the job training includes:

Learning from the higher level employees

Training by supervisors
Learning from colleagues
Doing things by own self

43

Off the job training:

PTCL have training centers for this purpose

RTTS Lahore Cant

ITC academy Islamabad
Current employees give training sessions to the new employees
Evaluate the difference in performance

5.6 Performance Management

This department works out on the work behavior of employees with their duties, tasks, goals etc.
An employee complete the task effectively and efficiently and then he is provided with incentive,
and different benefits according to his work. If anyone has any deficiency they find out the
problem and solves it through proper channel.

5.7 Benefits & Compensation:

PTCL give benefits and compensation to its employees in form of both monetary and nonmonetary manners, but as per according to the task achieved by them in organization. These
facilities includes:

Free internet service

Telephone facility at home and office
Medical facility
Accommodation facility
Transport facility

44

Chapter 6: SWOT Analysis

6.1 SWOT ANALYSIS OF PTCL:

Now moving on to the most important part of my internship SWOT analysis. After working with
PTCL for 6 weeks I found some very critical issues and problems regarding PTCL. But as soon
as I analyze the issues I am able to understand the Pakistan Telecommunication Company
Limited in the right way. SWOT analysis is provided below:

Strengths:

Adequate Financial Earnings

Backed by Government
Foreign Exchange Earner
Internationally Good Quality Services
Large Number of Customers
Enjoying Monopoly
Market Leader
State of the Art Facilities
Long List of Products

Adequate Financial Earnings

A major source for PTCLs capital is its earnings of billions of rupees, these adequate earnings of
finances help to increase the services and the product lines of PTCL without any financial
pressure or difficulty.
Backed by Government
As it is the strongest strength of PTCL that it is backed by the Government of Pakistan. Hence it
had a great support by the Government, as it is a Semi-Government organization.
45

Foreign Exchange Earner

PTCL is a well-known organization, which earns a lot of foreign exchange for Pakistan, it may
not be wrong to say that it earns one of the largest portion of foreign exchange for Pakistan from
its international traffic.
Large Number of Customers
It is one of the biggest strength of PTCL, that it has retained its more than 4 million customers all
over the country.
Enjoying Monopoly
PTCL is only the telecommunication service provider in the country with the below mentioned
services and products. It is actually the market leader, because none of its competitors are able to
compete with its market leadership in these services:

Fiber Optic with High Capacity Backbone Ring

Facility of Expansion in more than 40 transit exchanges
Has digitalized about 99% of Countrys Network
Customers over 4 million
Service Exchanges for Value Addition
International Cables for Submarine

Market Leader
Leading company which provide telecom facilities all over the country. In the field of
Engineering and I.T it uses the latest technology. It also is consulted by the company of U.A.E
named as Etisalat which possess 26% shares of the company.

State of the Art Facilities

Large networks with the State of the Art facilities and digital exchanges. Here are mentioned
some important characteristics:

46

Service Exchanges for Value Addition

Fiber Optic with High Capacity Backbone Ring
Has digitalized about 99% of Countrys Network
International Cables for Submarine
Facility of Expansion in more than 40 transit exchanges
Customers over 4 million

Weaknesses

Low Customer Focus

Less Attention on Corporate Culture
Less Attention on Customer Services
Out-dated Staff
Still working on Old Technology
Government Organization
Management Style is Ambiguous
Social Responsibility
Still Over Employed
Lack of Technical Staff
Organizational Structure is Poor
No Research
No Development Programs
New Services has less marketing
Political Intervention
Over Hiring

Opportunities

Developing in telecom industry

Can increase market share due to huge market size
Develop innovative products
Increase company product lines
Re-structure the hierarchy
Latest technologies can be adopted
Adopt aggressive marketing stunts
Hire competent marketers
Can improve customer services
Hire technical staff to satisfy customer needs

47

Threats

Strong competition
New players in telecom industry
Inconsistency
Increase in cyber crime
Political instability
Fraud issues
Inflation rate is increasing
Raise in government taxes
Economy is in recession

48

6.2 Recommendations

The Human Resources should take less time in recruitment and training the staff.
Highly qualified & trained staff may be deputed in HR department.
Refreshing courses should be adequate and more frequent during the year.
The promotional criteria by the Human Resource Department should be defined
and be as per rules.
More training centers should be established. If there is lack of resources, it is
difficult, the training centers of the other organizations in the same capacity can be
utilized by determining the terms and conditions.
During the training by Human Resource Department the ethical values should be
more emphasized.
The proper and competitive evaluation of the methods and procedures adopted by
other competitors will enhance the performance of Human Resource Department.
This is the era of Information Technology. The functions and procedures of the
company should be converted from manual to the automatic. It will enhance the
performance & accuracy of the Human Resource Department and ultimately of the
company. Human Resource Department should allocate resources for this purpose.
Human Resource Department may advice and train employees for one window
operation in order to reduce the time and conserve the resources.

49

 Agents for the promotion of the company policies and to facilitate the customers
by the Human Resource Department may be appointed with proper check and
balance system.
Pay packages may be revised in the light of profit earned by the organization.

50

6.2 CONCLUSIONS:
No doubt PTCLis enjoying monopolybut the time is came when competition will force company
to change its policies to become favorite telecom service provider in the market& keep its
current place & customer base. The actual working substances are the humanbeings.It goes with
out saying that Human resources are the most important inthe organization and so does the
Human Resource Department .It integrate allthe activities and functions of the company like job
analysis, recruitment, staffing,training, designing compensation package, employeesappraisal
system.Human Resource Department plays the key role in the hiring, retention,motivation and
promotion of the employees .Actually it assign the specifiedduties to the specified persons in this
age of specialization.Human Resource manager should be well versed and confident in his field.
Heshould be humane, well natured and have go face reading capabilities .All thisensures his
success.He should be of the notion victory is noteverything, but the way of fighting is.

51

52