PERFORMANCE AND COMPENSATION, MANAGEMENT SUBMITTED BY: MARYAM GUL AAMARA RASOOL AMNASHAHID BEHJAD RUBAB SABA WAHEED

IZZA BUTT SUBMITTED TO: MAM ZARA SABEEN BBA (HONS) 19-B DATED: October 27, 2011

INTRODUCTION:
PTCL is the largest telecommunication company in Pakistan. The Company provides telephony services nation-wide and is the backbone for country's telecommunication infrastructure despite arrival of a dozen other telecommunication companies, including giants like Telenor and china mobile. The company operates around 2000 telephone exchanges across the country, providing the largest fixed line network. Data and backbone services such as GSM, CDMA, Broadband Internet, and IPTV, wholesale are an increasing part of its business. Originally fully owned by the Government of Pakistan, this holding has since 2006 been reduced to 62%, when 26% of shares and control was sold to Etisalatand the remaining 12% to the general public. 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 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.

PERFORMANCE APPARISAL AT PTCL:

the method used to appraise by ptcl is Forced ranking method .Forced ranking is a workforce management tool based on the premise that in order to develop and thrive, a company must identify its best and worst performers it uses rigorous evaluation and routing of employees by their immediate supervisors on agreed-upon abilities, skills, and attitudes. Everybody from the top down is placed on a bell-shaped, company-wide curve, or in one of four quartered-square "quartiles," or "buckets." Other companies use a 1-to-5 ranking scale. Employees who finish in, say, the first 15 percent of the curve or the top left quartile or are rated as 5 are marked as a players, and given raises, stock options and training. In contrast, those in the bottom right hand square, the bottom ten percent, or rated as 1 are given no raises and either given training or fired. Performance evaluations are conducted on the basis of the employee category. All management employees will be give an additional allowance, ranging from 15% to 5% of the Running Basic Pay, based on their performance evaluation results and categorization.ptcl even appraise the lower order employees also. Employees who have less grade get low evaluation. These rankings come during intense yearly performance reviews; during which managers must place each of their underlings in their proper place performance evaluation results and categorization. At the heart of the system is the belief that the ranking will result in a bell-shaped curve.. In order to rate workers honestly, managers need an objective set of criteria. In order to be as objective as possible, the decision should never be left to one person, since different people see different things. Many organizations have adopted forced ranking performance appraisal systems. Each employee is evaluated against peers and performance arranged from highest to lowest.

These ends of the year performance appraisals resemble report cards for adults. There seems to be more angst though, since compensation, career direction, ego, prestige, and morale are all involved. The performance appraisal ranking process is not quite the same as a single winner election, but the method is subject to the flaws identified by the theorem: (1) Strategies can be employed by a subset of the electors to lead to an outcome that is not the choice of the majority; (2) Biases can be introduced if the voting methods are simplified. Companies certainly need methods and processes to accurately identify people who are not making the grade. But quota systems don't work for many reasons, including flaws in the normal distribution curve approach that is used to identify poor performers, as well as limitations in human judgment. In fact, systems that force managers to cut a certain percentage of their people often don't reveal the root causes of problems, often do not elevate performance and can ultimately be counterproductive.

Advantages and disadvantages of forced ranking performance appraisals:

They create and sustain a high performance culture in which the workforce continuously improves. They increase unhealthy cut-throat competitiveness They discourage collaboration and teamwork They harm morale They are legally suspect giving rise to age discrimination cases.

ORGANIZATIONAL STRUCTURE:

Chief human resource Officer

General Manager

General Manager of Planning

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ASSISTANT MANAGERS

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SENIOR EXECUTIVES

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