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1 REPORT PAKISTAN TELECOMMUNICATION COMPANY LIMITED Submitted To: Sir Umer Mukhtar Submitted By: Sikandar sajjad 10108018 BBA
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REPORT
PAKISTAN TELECOMMUNICATION
COMPANY LIMITED
Submitted To:
Sir Umer Mukhtar
Submitted By:
Sikandar sajjad
10108018
BBA
Batch Fall 2010
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1) ACKNOWLEDGMENT
I thank, first and foremost, ALLAH Almighty for having enabled me to complete my report that would not have been possible for me to accomplish without his help in all stages of its preparation. May His Mercy and Peace Be Upon all His messengers including my Mild Tempered Lord, the Sovereign of (scared) Madina, who brought the last and final message from Him to a mankind. I have a pleasant opportunity to work with”PTCL”. In this connection, I pay my heartily thanks to Sir umer mukhtar who are my instructor and very kindly provided me the opportunity to internship at the highly prestigious organization. I would like to thank Mr. Tayyab Shabbir (Manager HR) for providing me an exploring task under the cover of internship at PTCL. They encouraged me in spite of my mistakes. I’m really thankful to Mr.Khurram Sehzad (AM), Mr.Rizwan (coordinator EFC) and Mr. Abdul Waheed (Coordinator EFC) for their cooperation with me. All the staff of PTCL (HRM) is really cooperative. I’m also really thankful to my parents & my family, who are my first teacher in this world.
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2) Introduction
The telecommunications industry is at the forefront of the information age—delivering voice, data, graphics and video at ever increasing speeds and in an increasing number of ways. Whereas wire line telephone communication was once the primary service of the industry, wireless communication services and cable and satellite program distribution make up an increasing share of the industry.
The largest sector of the telecommunications industry continues to be made up of wired telecommunications carriers. Establishments in this sector mainly provide telephone service via wires and cables that connect customers’ premises to central offices maintained by telecommunications companies. The central offices contain switching equipment that routes content to its final destination or to another switching center that determines the most efficient route for the content to take. While voice used to be the main type of data transmitted over the wires, wired telecommunications service now includes the transmission of all types of graphic, video, and electronic data mainly over the Internet.
These new services have been made possible through the use of digital technologies that provide much more efficient use of the telecommunications networks. One major technology breaks digital signals into packets during transmission. Networks of computerized switching equipment, called packet switched networks, route the packets. Packets may take separate paths to their destination and may share the paths with packets from other users. At the destination, the packets are reassembled, and the transmission is complete. Because packet switching considers alternate routes, and allows multiple transmissions to share the same route, it results in a more efficient use of telecommunications capacity as packets are routed along less congested routes.
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3) Overview of the Pakistan Telecommunication Company Limited
History:
Pakistan remains one of the fastest growing telecom markets in the world and PTCL is the oldest and foremost part of this market. It has been serving the nation since the times of formation of Pakistan. The series of changes through which PTCL has passed through in the history is described below: - From the beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, PTCL has been a major player in telecommunication in Pakistan. Despite having established a network of enormous size, PTCL workings and policies have attracted regular criticism from other smaller operators and the civil society of Pakistan. Pakistan Telecommunication Corporation (PTC) took over operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. This coincided with the Government's competitive policy, encouraging private sector participation and resulting in award of licenses for cellular, card-operated, pay-phones, paging , lately, and data communication services.
Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTCL, and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be PTCL in two separate placements. Each had a par value of Rs. 10 per share. These vouchers were converted into PTCL shares in mid-1996.
In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over basic telephony in the country. The provisions of the Ordinance were lent stability in October 1996 through Pakistan Telecommunication (Reorganization) Act. The same year, Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of Pakistan.
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PTCL launched its mobile and data services subsidiaries in 2001 by the name of Ufone and PakNet respectively. None of the brands made it to the top slots in the respective competitions.
Lately, however, Ufone had increased its market share in the cellular sector. The PakNet brand has effectively dissolved over the period of time. Recent DSL services launched by PTCL reflect
this by the introduction of a new brand name and operation of the service being directly supervised by PTCL.
A shop of Pakistan Telecommunication Company Ltd PTCL in Islamabad as telecommunication monopolies head towards an imminent end, services and infrastructure providers are set to face even bigger challenges. The post-monopoly era came with Pakistan’s Liberalization in Telecommunication in January 2003. On the Government level, a comprehensive liberalization policy for telecoms sector is in the offering.
PTCL is all set to redefine the established boundaries of the telecommunication market and is shifting the productivity frontier to new heights. Today, for millions of people, customer demand instant access to new products and ideas. More importantly PTCL’s aim is to provide better living standards with increased values in this ever-shrinking globe of ours. PTCL is setting free the spirit of innovation
PTCL’s aim is to be customer’s first choice in the future as well, just as it has been over the past six decades for providing.
Vision
“To be the leading Information and Communication Technology Service Provider in theRegion by achieving customer satisfaction and maximizing shareholders' value”
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MISSION
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
Core Values
Professional Integrity
Customer satisfaction
Team Work
Company Loyalty
Corporate Information
Historical background
1947 Post and telegraph Dept. established
1962 Pakistan telegraph & telephone Dept.
1990-91 Pakistan telecom corporation
1995 About 5% of ptcl assets transferred to PTA,FAB & NTC
1996 PTCL formed listed on all Stock Exchange of Pakistan
1998 Mobile & internet subsidiaries
2000 Telecom policy finalized
2003 Telecom deregulation policy announced
2005 26% Shares by Etisalat UAE through open bidding
Pakistan Post & Telegraph (P&T):
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In the beginning, both the postal and telecommunication services were performed
a single department known as Pakistan post & telegraph (P&T). This department started
it telephone service with only 12,346 telephone lines and seven telegraph offices all
over the Pakistan.
Pakistan Telegraph and Telephone department (T&T):
The P & T department was modified into Pakistan telegraph and telephone department
in the year 1962. The present systems as well as new installations were managed by the
T&T quiet efficiently.
Pakistan Telecommunication Corporation (PTC):
Telegraph and telephone (T&T) department was then converted into a statuary
corporation on 15th December, 1990. It had its own legal identity totally separated from
government of Pakistan
Pakistan Telecommunication Limited (PTCL):
PTCL was incorporated on December 31st 1995 and commenced business on January
1st 1996. The basic purpose of its formation was to provide better services to its
customers. This was established to undertake the telecommunication business formally
carried out by PTC. It was responsible for carrying out all kinds of telecommunications
activities in the country and to look after the existing telecom installations and their
automation and development. It was also to undertake development program in
telecom field. All properties, assets, obligations and liabilities of PTC were accordingly
transferred to the PTCL on the 1st January, 1996.
Pakistan Telecom Authority (PTA):
Pakistan telecom authority (PTA) was established in 1996. It falls under the preview of
government of Pakistan. It issues licenses to various companies for carrying out certain
activities. This authority is responsible to monitor the establishment of telecom related
firms, companies, the import of telecom equipments etc. in the country.
Nature Of Organization:
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It is a telecommunication company which provide following services. Pakistan
Telecommunication Company Limited (PTCL) was incorporated in Pakistan on December 31,
1995 and is listed on Karachi, Lahore and Islamabad stock exchanges. It was established to
undertake the telecommunication business firmly carried on by Pakistan Telecommunication
Corporation (PTC). The business was transferred to the company on January 1, 1996 under the
Pakistan Telecommunication (Reorganization) Act, 1996 at which date PTCL took over all the
properties, rights, assets, obligations and liabilities of PTC except those transferred to National
Telecommunication Corporation (NTC) , Frequency Allocation Board (FAB), Pakistan
Telecommunication Authority (PTA) and Pakistan Telecommunication Employees Trust
(PTET). The company commenced business on January 1, 1996. The registered office of the
company is situated at Block-E, PTCL Headquarter, G-8/4 Islamabad.
Pakistan Telecommunication Company Limited (PTCL) is the main provider of
Telecommunication services in Pakistan. It owns and operates a substantial part of the
telecommunication facilities and provides domestic and international telephone services and
other communication facilities throughout Pakistan.
Landline
PTCL landline has always been a part of family and providing services from generations and it continues to be the primary choice of customers for making voice calls from many decades. PTCL gives its customers highest quality at very affordable rates along with attractive packages and Value Added Services to choose from. PTCL offers many attractive packages like Freedom Package, International Packages, Mobile Buckets & Double Up Unlimited (double play services)
EVO Wireless Broadband
PTCL EVO 3G Wireless Broadband is Pakistan’s fastest wireless internet which offers its customers – “superior 3G internet experience”. EVO Wireless Broadband is enabling the wireless broadband revolution in Pakistan with flexibility to roam freely like never before. PTCL EVO has revolutionized the way people connect to the internet by offering true mobility. PTCL
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EVO gives its customers the advantage of nationwide roaming with seamless internet connectivity across Pakistan. Evo coverage is in over 350 cities, whereas EVO customers can also enjoy CDMA-1X data rates of up to 153.6 Kbps at more than 1000 destinations across Pakistan.
PTCL Introduced EVO 3G Nitro in Pakistan - “The World’s first & most cutting-edge EV-DO Rev.B commercial network”. PTCL is the first operator in the world to commercially launch EV-DO Rev.B products, which offer blazing fast speeds of up to 9.3 MBPS.
EVO 3G Nitro is all set to meet the next-generation’s need for ultimate speed & superior performance. It is the next step in Evolution of the Wireless Broadband Revolution!
Whether it is streaming High Definition video or music, conducting a video conference while simultaneously browsing the Internet or uploading multimedia content, in the Nitro Universe, everything happens at the speed of light.
PTCL introduced Pakistan’s First 3G Enabled Smartphone Android Tablet—3G EVO Tab. Powered by Google Android Froyo 2.2 OS, EVO Tab is a 7’’ capacitive multi gestures touch screen tablet packed with features of both a tablet and a GSM phone that lets you surf, talk, tweet & do a lot more simultaneously on-the-go in more than 350 cities nationwide
Say Hello to the Future with Pakistan’s first 3G enabled Android Smartphone; “Evo Droid”--a GSM Smartphone that keeps you connected to your world without being tied to a Wi-Fi connection or the worry of being stuck with a slow mobile data connection. With Evo Droid, Get ready to experience the magic of 3G right on your cell phone.
PTCL has introduced pocket-sized Evo 3.1 mbps & Nitro 9.3 mbps 3G Wi-Fi Clouds that enable its customers to create instant 3G Wi-Fi hotspot. Users can connect up to 5 Wi-Fi gadgets simultaneously, use these as external storage device via the provided Micro SD Card slot, and
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also use these to charge other devices. Both the Clouds have a super-charged built-in battery that lasts up to 12 hours.
Introducing Pakistan’s first 3G USB modem with built-in Wi-Fi hotspot - EVO Wingle is all out & about! The most talked about futuristic Wi-Fi tool that lets you effortlessly connect multiple Wi-Fi gadgets simultaneously at Hyper Speeds of up to 9.3 Mbps* in over 250 cities, and auto switch over to Evo 3.1 Mbps speeds in over 350 cities. It lets you connect ’n’ share effortlessly through any external USB power adapter.
Broadband Pakistan
PTCL Broadband is the largest and the fastest growing Broadband service in Pakistan. Launched in 2007, PTCL Broadband Internet has acquired over 1 Million Broadband customers in over 2000 cities and towns across Pakistan, leading the proliferation and awareness of Broadband services across Pakistan.
With its entry in this market segment, PTCL opened up a broadband culture in Pakistan, where till a couple of years back there was very little awareness in the country about broadband & high speed internet services. PTCL made the broadband technology affordable by lowering the barriers to entry, by geographically bringing the service within the reach of a common user across Pakistan and by continuous improvements in customer care for the service.
Unique offers that makes PTCL’s Broadband unmatchable are special packages for the student segment, FREE modem and installation, Availability of Wi-Fi Modems, FREE dial up service for its Broadband customers and FREE access to movies, music, classical Pakistani dramas, cricket matches, online gaming, educational and religious content on PTCL’s entertainment portal ‘BUZZ’, (the access to PTCL Buzz & Gaming lounge is exclusive to PTCL Broadband subscribers). PTCL also offers multiple FREE personalized e-mail accounts exclusively to its broadband users. In addition, PTCL recently doubled its broadband speed for all its existing and new customers at the same price, making 1 MB as its minimum offered speed.
IPTV Service (Smart TV)
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PTCL entered the media sector on 14th August 2008, by launching a digital interactive television service for the first time in Pakistan. PTCL brought Pakistan in the list of a few countries across the globe that offer this state of the art interactive TV service to its subscribers. PTCL SMART TV service using its state of the art Broadband network, employs the IPTV (Internet Protocol TV) technology.
Branded as ‘PTCL Smart TV ’, the service includes Interactive Television, Broadband and voice telephony all at the same time on PTCL’s telephone line. Besides offering the highest digital quality TV picture, the most revolutionary section of this offering is the ability to ‘rewind’ and ‘pause’ live TV channels through TSTV ( Time Shift Television) feature, the ability to block / unblock any TV channel for parental lock and the ability to search through video on demand content. Currently PTCL Smart TV offers its viewers 125 live channels and over 500 Movie titles through its Video- on Demand service’. The service is available in more than 50 cities across Pakistan and PTCL is planning to expand to all remaining cities and towns across the country during the year 2013.
V-fone
PTCL also continues to be the largest CDMA operator in the country with approximately 1.4 million Vfone customers. It gives the liberty of payment in both prepaid and postpaid options.
It offers fixed wireless telephone for your homes & business. With CDMA2000 1X technology, ours is the largest WLL network with a capacity of 2.6M, covering over 10,000 urban & rural areas. The network is already enabled for Voice, Dialup-Internet access (153.6kbps), SMS and for EVDO Broadband.
Business Volume
Fixed line connections in the country are more than 12 million and the cellular connections are
15 millions
Currently there are 315 Payphone and over 51,000 Wireless Payphones
There are over 140 Data and Internet service providers (ISP's) to whom PTCL has provided
network infrastructure.
PTCL generated annual Revenue of over Rs. 11 billion from its private sector operating partners.
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Installed capacity up to 6 million
Working connections 4,405,161
Total exchanges 2962
Telephone density per 100 population 2.9
Countries on ISD/ (ISD STATION) 242
Customer service centers 154
Card pay phone 387,490
NWD stations 2092 UIA stations 1898
Total length of main optical fiber link 4591km
Optical fiber short haul links 127.2km
Optical fiber spur links 3241km
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No of employees:
President & Company Secretary 02
Senior Executive Vice President 07
Executive Vice President 22
Chief Engineers 26
General Managers 94
AGM, DY. GM, Director, System Analysts, Dy. Managers, RTO, CS, SE,
DE, SAO, DM, SRO etc 1800
ADE, AE, SDO, AO, SL, Lect etc 8,000
ES, Assistant. PA, Tech, LM. UDC, KPO,Khakroob, Mali, HC, etc
20000
(almost)
Total Employees 32000
(almost)
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Product line:
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Consumer Products
PSTN (Public Switch Telephone Network)
V-fone
V fone postpaid
Broadband
PTCL Smart TV
VMS (Voice Main Service)
Free Inter Facility
Kehdo SMS
PTCL Direct
EVO Wireless Broadband
PTCL Calling Cards
Corporate Products
UAN (Universal Access Number-111)
UIN (Universal Internet Number-131)
Business DSL
DPLC (Domestic Private Leased Circuit)
IP Connect
ISDN BRI (Integrated Services Digital Network Basic Rate Interface)
ISDN PRI (Integrated Services Digital Network Primary Rate)
Co- locations
DXX Connectivity
Call Centers
Audio Conference
VPN (Virtual Private Network)
Premium Rate Service)
V-Connect
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International IP Services
PTCL Webhosting
Payphones
4) Organizational Structure
Main Offices
• Chairman Corporate Headquarter, Block-E-, G-8/4, Islamabad
• Director Commercial Accounts Nabha Road Lahore.
• GM Offices in every Region.
• SAO Offices.
• Director Offices
• Senior Engineer Offices.
• Assistant Engineer/ AO Offices etc
Organizational Structure describes the organization's formal framework or system of communication and authority.
In other words, the organization structure sets forth each principal, management position and helps to define authority, responsibility and accountability.
An organization chart is essential to the development of a cost system and cost reports which indicates the responsibilities of individuals for implementing management plans.
In PTCL President / CEO is the head of major functional areas. i,e State management, Finance, Technical, Operations, HR & Admin and Corporate affairs. So Senior Executive Vice President who is the head of these units generally reports directly to the President.
The main purpose of PTCL is allowing them to effectively and efficiently accomplish organizational goals and objectives. Designing an appropriate structure means that managers must decide how to coordinate work activities and efforts both vertically and horizontally
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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.
President & CEO of PTC
Mr. Walid Irshaid
President & chief executive officer
Management
Walid IrshaidPresident & Chief Executive Officer
Muhammad Nehmatullah ToorS.E.V.P (Finance) / Chief Financial Officer (C.F.O)
Mohammad Nasrullah Chief Technical Officer (C.T.O)
Syed Mazhar HussainS.E.V.P (HR / Admin & Procurement)
Hamid FarooqS.E.V.P (Business Development)
Javed MushtaqC.I.O
Sikandar NaqiS.E.V.P (Corporate Development)
Naveed SaeedS.E.V.P (Commercial
AbdullahYousefS.E.V.P (Business Zone South)
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Nasir IqbalS.E.V.P (Business Zone Central)
Farah QamarCompany Secretary
Legal AffairsZahida AwanGhulam Mustafa
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5) Critical Analysis:-
Horizontal and vertical analyses compare one figure to another within the same category. It is
also essential to compare figures from different categories. This is accomplished through Ratio
Analysis.
Ratios may be classified in number of ways. Different kinds of ratios are selected for different
type of situations.
Gross Profit Margin
The gross profit margin reveals the percentage of each rupee left over after the business has paid
for its goods. The highest the gross profit earned the better.
Gross profit = net sales - cost of goods sold.
2012 2011 2010
57.86 56.58 52.24
Comment
The PTCL is constantly showing a good gross profit margin ratio. During the year 2012 its gross
profit margin has maximum value.
Net Margin
The ratio of net Profit after tax to net sales is called the Net profit margin. It indicates the
profitability generated from revenue and hence is an important measure of operating
performance.
Net Profit Margin = Profit after taxes / Sales
2012 2011 2010
39.02 45.3 38.05
Comments
PTCL has shown a good improvement in its Net profit margin ratio. During the year 2011
company has shown a phenomenal growth of 45.3%.
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RETURN ON INVESTMENT
Return on investment (ROI) is a key, but rough, measure of percentage. ROI shows the extent
through which earnings are achieved on the investment made in the business.
There are basically three ratios that evaluate the return on investment. These are:
Return on total operating assets
Return on equity
Return on capital employed
Return on total operating assets
Return on Assets (ROA) = Profit after taxes / Total Assets
2012 2011 2010
41.55 44.12 38.09
The return on total assets (ROA) indicates the efficiency with which management has used its
available resources to generate income.
Comments
PTCL has shown a remarkable improvement in its Return on total assets ratio. This means that
PTCL is effectively using its all available assets to generate revenue. During the year 2010, this
ratio is 38.09% which is maximum among the analysis years.
Return on Equity
ROE measures the overall firm performance. ROE compares net profit after taxes (minus
preferred stock dividends, if any) to the equity that shareholders have invested in the firm.
Return on Equity (ROE) = Profit after taxes / Shareholders’ Equity (book value)
2012 2011 2010
27.43 28.20 26.75
Comments
This ratio tells us the earning power on shareholders book value investment and is frequently
used in comparing two or more firms in an industry. A high return on equity often reflects the
firm's acceptance of strong investment opportunities and effective expense management.
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Return on Capital
The relationship of net profit after taxes to total capital is known as the Return on Capital.
Return on Capital = (Net income – Dividends) / (Debt + Equity)
2012 2011 2010
25.91 27.00 23.63
The value of this ratio is increasing every year from 2010 to 2012. But in 2012 value of this ratio
decreases with respect to previous year.
Liquidity Ratios
Liquidity is a company's ability to meet its maturing short – term obligations. Liquidity is
essential to conducting business activity, particularly in times of adversity, such as when
business is shut down by strike or when operating losses ensue due to an economic recession etc.
Liquidity ratios are static in nature as of year-end. Therefore, it is important for management to
look at expected future cash flows. If future cash outflows are expected to be high relative to
inflows, the liquidity position of the company is deteriorate.
Current Ratio
Current ratio is equal to current assets divided by current liabilities. This ratio is used to measure
the ability of an enterprise to meet its current liabilities out of current assets. The formula can be
written as:
30-june-10 = 54,220,241 / 36,086,322
= 1.50
30-June-11 = 45,450,236 / 30,192,778
= 1.51
30-june-12 =39011643 / 28020314
= 1.39
Current ratio= Current Assets/ Current Liabilities
Quick Ratio
2012 2011 2010
1.39 1.51 1.50
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The quick ratio, also known as the acid-test ratio is strongest test of liquidity. In it more liquid
current assets are divided by current liabilities. It can be written as:
30-june-12 =39011643-265232 / 28020314
= 1.38
30-June-11 = 45,450,236-223123 / 30,192,778
=1.49
30-june-10 = 54,220,241-265232 / 36,086,322
=1.49
Quick Ratio = (Total Current Assets - Inventories) / Total Current Liabilities
2012 2011 2010
1.38 1.49 1.49
Comments
By comparing the figures of analysis years, the ratio is declining in 2012 as compared to 2011.
Price Earnings Ratio
The market price per share of a firm's common stock divided by the most recent 12 months of
earning per share.
2012 2011 2010
15.01 12.88 11.86
Comments
Table shows the P/E ratio of years from 2010 up to 2012. This ratio is maximum during the year.
Debtors Turnover Ratio
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The relationship of net sales to total debt is known as the Debtors Turnover Ratio.
2012 2011 2010
7.6 8.32 7.60
Comments
Table shows the values of debtor's turnover ratios of the organization. The value of this ratio is
gradually increasing from 2010 up to 2012 but in 2011 the value of this ratio increase with
respect to the previous year.
Fixed Assets Turnover
The relationship of net sales to total assets is known as the Fixed Asset Turnover.
2012 2011 2010
2.04 2.01 1.98
Comments
Table shows the values of fixed asset turnover ratios of the organization. The value of this ratio
is gradually increasing every year from 2010 up to 2012.
Breakup Value
The value of a firm measured as the sum of the values of its operating units if each is sold
separately.
2012 2011 2010
22.12 21.39 21.17
Comments
Breakup value is maximum in 2012.
Leverage Ratio
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Leverage equivalent to solvency or long-term debt. Solvency is a company's ability to meet its
long-term obligations as they become due. An analysis of solvency concentrates on the long-term
financial and operating structure of the business. The degree of long-term debt in the capital
structure is also considered. Further, solvency is dependent upon profitability since in the long
run firm will not be able to meet its debts unless it is profitable.
These ratios help in measuring the financial contribution of the owners compared with that of the
creditors, also the risk of debt financing.
Debt / Equity Ratio
The debt/equity ratio is a significant measure of solvency since the high degree of debt in capital
structure makes difficult for organizations. Excessive debt will result in less financial flexibility.
Debt/equity ratio equals to total liabilities divided by equity.
Debt to Equity Ratio = Total Debt / Total Equity
2012 2011 2010
11.00 11.06 11.98
Total Asset Turnover
The total asset turnover ratio is useful in evaluating a company's ability to use its asset base
efficiently to generate revenue. A low ratio may be due to many factors, and it is important to
identify the underlying reasons.
Total Assets Turnover = Sales / Average Total Assets
2012 2011 2010
0.55 0.54 0.52
Earnings Per Share (Pre Tax)
Earnings per share indicate the amount of earnings for each common share held. Earnings per
share are useful indicator of the operating performance of the bank.
2012 2011 2010
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7.79 8.63 7.37
Earnings Per Share (After Tax)
Earnings per share indicate the amount of earnings for each common share held. Earnings per
share are useful indicator of the operating performance of the bank.
2012 2011 2010
5.22 5.72 4.53
Comments
The firms earning per share are generally of interest to present or prospective stockholders and
management. The Earning per Share (EPS) represent the number of rupees earned on behalf of
each outstanding share of common stock. They are closely watched by the investing public are
considered an important indicator of corporate success. The value of EPS is maximum in 2011
and minimum in 2010 in pre tax and after tax cases. And this value decrease in 2012.
Dividend Payout Ratio (Before Tax)
Indicates the percentage of each Rupee earned that is distributed to owners in the form of cash,
calculated by dividing the firm cash dividend per share by its earnings per share.
2012 2011 2010
24.66 57.91 47.49
Dividend Payout Ratio (After Tax)
Indicates the percentage of each Rupee earned that is distributed to owners in the form of cash,
calculated by dividing the firm cash dividend per share by its earnings per share
2012 2011 2010
37.44 87.42 77.34
Comments
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Creditors and investors use the following ratios to see if the company has adequate cash flow for
invest or dividend. There exists a rise in percentage in every year from 2010 to 2012. Dividend
payout ratio is maximum in 2011.
Pre Tax Margin/ Operating Profit Margin
The operating profit margin / pretax margin measures the percentage of each sales remained after
all cost and expenses other than interest and taxes are deducted.
It represents the pure profits. Operating profit is pure because they ignore any financial and
governments charges (Interest & Taxes) and measure only the profit earned on operations. A
high operating profit margin is preferred.
2012 2011 2010
52.32 59.41 55.93
Comments
Table shows the pure profits of company, which shows a good percentage in every next coming
year. Operating profit is pure because they ignore any financial and governments charges
(Interest & Taxes) and measure only the profit earned on operations. A high operating profit
margin is preferred. Pre tax margin is maximum in 2011 and its value is minimum in 2010.
Dividend Per Share
Cash payments declared and paid by the corporation to stockholders.
Dividends are the only cash payments regularly made by corporations to their stockholders. They
are decided upon and declared by the board of directors and can be range from zero to virtually
any amount the corporation can afford to pay.
2012 2011 2010
4.00 3.00 3.5
COMMENTS
Table shows the Dividend per share paid by the corporation during the years 2010 up to 2012.
This value is maximum Rupees 4.00 in 2012 and minimum in 2010.
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Horizontal Analysis (Excel Sheet)
Horizontal Analysis
Horizontal analysis is used to evaluate the trend in accounts over the years. This helps in
disclosing changes on the items in financial statements over the years. In horizontal analysis, any
one year is taken as base year and all items are compared with corresponds items in base year.
Horizontal analysis of PTCL under my discussion provides the information about the
organization where it stands in its financial status from 2007 to 2012. Whether it improving it
position or not, all this is know through this analysis.
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ANALYSIS
Share Holder Equity & Liabilities
By comparing the data from 2007 to 2012, it is clear that reserves are increasing with respect to
base year 2007, but in 2012 the value is reduced as compared to 2011. The reason is that during
this year, the capital of the company remains same, reserves increase but the value of profit
decrease during this year, which affects the overall value of 2012.
Noncurrent liabilities are reducing during the analysis years with respect to base year. During the
years, Suppliers credit, deferred taxation and long term security deposits are reduced but the
retirement benefits increased in 2012, which affects the overall value of this year.
By comparing the figures of Current Liabilities of these years base year, it is clear that during the
years 2008-2012 Payables / Borrowing increase gradually with respect to 2007 but the Interest
and Markup accrued, Taxation decreased with respect to base year. The overall value of Current
liabilities decreases.
Total Assets
The overall value of Fixed Capital decreases with respect to base year. The value of Property,
Plant, and Equipment during these years' decreases but the value of Capital work in progress
increased during 2011-12. On the other hand the value of Intangible assets increases much more
during 2012.
The overall value of the long term investment and loans increased with respect to base year
2007. During the year 2007 this value reduces. The reason behind this that during 2012, there
was not as such investment occurred and value of loans also reduced as compared to previous
years.
The overall Current Assets decrease during the year 2007, 2008 & 2012. but increase during the
year 2011. Hence overall situation is not as good as compared to base year.
Profit & Loss Account
From horizontal balance sheet, it is clear that Revenue of the company is increasing in the
coming years with respect to base year 2007. This increase in value of Revenue shows that
company is moving in the right direction and showing best results for investors and stockholders.
Operating cost is increasing with respect to base year with the passage of time.
Comparison shows that operating profit is increased every year with respect to base year.
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Result
The overall Horizontal analysis shows that the company is in good condition for its stock holders
and the persons interested in this organization. The company is in running in profit situation.
There is increase in profit in the next coming years. In 2011, the company gets maximum profit
while in 2012 there is decrease in the value of profit as compared to 2011. The reason behind this
is the uncertainty in the process of privatization scenario, increase in the operating cost, decrease
in inappropriate profit, increase in payables, increase in capital work in progress, less new
investment and loans etc.
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Vertical Analysis
Vertical Analysis
In vertical analysis, a significant item on a financial statement is used as a base value, and all
other items on the financial statement are compared to it. Vertical analysis is used to disclose the
internal structure of an enterprise.
In performing vertical analysis for the balance sheet, total assets and Total Equity & Liabilities
are assigned 100 percent. Each account is then expressed as a percentage of these values. In
profit and loss account, Revenue is given the value of 100 percent and all other items are
evaluated in comparison to this Revenue. All this is done for the purpose of evaluating financial
position of PTCL.
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ANALYSIS
Share Holder Equity & Liabilities
By comparison it is clear that Share capital & Reserves are some equal during the year 2007 to
2012. During the period Reserves are increasing every year, but in 2010 and 2012 were
decreases Capital %age almost remain its value constant i.e. no significant difference.
Noncurrent liabilities are also increasing every year but 2010, a slight rise in value exist. When
we analysis its individual values, it is clear that Suppliers credit is decreasing significantly but
the other values like Deferred taxation , Retirement benefits, Security deposits have mixed affect.
In different years its %age values are different. But overall liabilities are decreasing.
Current liabilities in base year 2007 when we study individual item in Current liabilities, it shows
that Interest & Markup accrued decreases.
Profit & Loss Account
During the vertical analysis of Profit and Loss Account Revenue is taken as 100% and all other
items are compared with respect to this Revenue
Operating profit is maximum 39.4% in 2007 and minimum in 2012 with respect to base value of
Revenue. Company earns maximum Operating profit of 39.4% in 2007. During this year the
Operating cost was minimum. Company earns minimum Operating profit of 21% in 2012.
During this year the Operating cost was maximum.
Company earns maximum profit in 2007 which is 39.4% of the total revenue. This shows the
poor condition of the company during last five year. During this decline the Earning per share
during this year also decrease.
Result
The overall vertical analysis shows that during the year 2007 the company earns maximum profit
during this year the E.P.S was also maximum.
.
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4.2 Competitors of PTCL
There is no meager competitor of PTCL in landline but with the growth of telecommunication
industry of Pakistan competition increasing specially in mobile phone sector. In total there are
more than 109 million subscribers of mobile phone. There are 03 big players in mobile phone
industry but 3 of them are the competitor of PTCL.
Mobilink is a largest mobile phone company of
Pakistan.Mobilink is currently having more the
31,9 58 ,5 97 users base which is the 36% of total
cellular industry of Pakistan. Mobilink is basically competing Ufone which is subsidiaries of
PTCL.
Telenor is another cell phone company it have
1 7, 84, 107 4subscribers which is 20 % of total
Mobile industry. Telenor is on the second position in the
user rates.
Warid Tel is also providing cell phone facilities in Pakistan.
Waridtel having more than15,1 14, 678 subscribers which is%
of Pakistan mobile industry.
China mobile company has invested $721 million in
telecom sector in Pakistan during 2007 and it would further invest $7 million in Pakistan tyear.
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Touching the 4 million figures, Zong is doing ATL and BTL activities extensively. Trying to make
service and rates as simple as possible
NEW COMPETITORS
Wateen Ptcl competitors is Wateen which is providing most
popular product against the PTCL .wateen is now a days leading
company in Pakistan. It not only provides landline service but
also providing GSM service like
23 Warid telecom. Its providing grant package against the ptcl And making problem for Ptcl .
Wateen different product which is as……..
Telephony:
It is provide faster landline service agents the pt cl with the low rate of call Rs call 1.20per 30sec
it price little low rather than PTCL.
Broadband: Wateen provide different types of broadband services according to the customer
want and need. Rather than the ptcl provide different packages. it price and services it high
against the PTCL Brand. It’s not provide Student package which make little down against PCL
Wateen TV:
Agent the ptcl smart TV wateen also loach V service with the DVD picture quality and provide
100 TV channel with demand. it price very aging the PTCL Tv. But this is available only in Lahore
not all over Pakistan.
Wateen WIMA
Wateen wimax it a new services of wateen internet answer for you. No busy phone lines, no
more waiting and no problems. Our 'always-on' high-speed “Wireless” connection 24
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Marketing Strategies
SLOGAN OF PTCL
Pakistan Telecommunication Company Limited (PTCL) is proud to be Pakistan’s most reliable and largest converged services carrier providing all telecommunications services from basic voice telephony to data, internet, video-conferencing and carrier services to consumers and businesses all over the country.
Whether it is an office in the largest city of Pakistan or a home in a small village, we are present in every corner of Pakistan to serve our customers.
As the leading Information and Communication Technology Service Provider in the region we are 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 to bring the world closer.
PTCL Positioning Statement
Hello to the Future
“Hello to the Future” is an amalgam of our vision, brand philosophy, brand values and strategy. The essence is “futuristic approach”. The positioning statement “Hello to the Future” is basically comprised of two words “Hello” and “Future” that provides the inward communication through the word “Hello”, i.e. PTCL welcomes its customers and the future. Also it offers the outward communication through the word “Future” by promising customers the futuristic ideas and products”
39
The first key word “Hello” captures the essence of the whole telephony network that is the backbone of PTCL. “Hello” is a word which is related to the telecommunication history and has been used ever since and will be used in future. This word expresses the welcoming nature of the PTCL brand, its customer oriented approach and warm environment. Everyday most conversations and relationships start with the word “Hello”, hence it portrays the relationship building of PTCL with its customers.
The second key word “Future” translates PTCL philosophy in a nutshell to provide planned and proactive solutions and products to its customers. PTCL is constantly evolving and taking its customers into the future. The word “Future” holds the promise that PTCL is committed to, by providing complete customer satisfaction through innovative and futuristic services and products. PTCL is breaking the stereotypical perception launching into the Future embracing it as the mission to transform the world of telecommunication and the way its customers communicate. PTCL establishes itself as a futuristic entity which is working constantly towards inventing paramount solutions for its customers. (The font style selected is bold, straight and modern. The font depicts the brand values that PTCL fosters).
PTCL Brand Values to Position in the Consumer Mind
Evolving
Innovative
Human
Trustworthy
Quality Conscious
Differentiate
Suitable
Different media
Easy access PRICE
PROMOTION
PLACE
PRODUCT
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4.4MARKETING MIX
41
PRODUCTS
Product Planning
In PTCL, so far products had been planned and developed by the engineering department
and marketing professional had no role in product planning as there was no marketing
department in the Company. But now marketing professionals have beeninducted in the
Company and they will definitely have a close co ordination with engineering department
in planning and development of products to satisfy customers’ desires. It should also be kept
in mind that PTCL is a technical organization enjoying state-of-the-art telecom technology.
The services offered by PTCL are built in the technology and with the passage o f time PTCL
rolls out these products in the market even many products, which have become out of date
in developed countries, are launched as new products by PTCL. But we cannot deny the fact
that being monopolist, PTCL is depriving customers of many digital services that are
available free in many other countries. 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.
PTCL landline
Since the deregulation of the telecom sector. A large number of foreign investors applying for
licenses in LL. LDI and cellular operations, identifying Pakistan as an emerging market. Investors
entered the market forcefully in the cellular segment, including heating competition for PTCL. In
this situation PTCL’s counter strategy for landline services, during the years 2008-09 was aimed
to increase ARPU, acquire new subscriber and contain mix.
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
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calls at RS. 199/ month. PTCL also launched ‘International Plus’ package to facilitate cost
effective International calls at unmatchable rates.
PTCL V-fone:
PTCL also continues to be the largest CDMA operator in the country with approximately 1.25 million V-fone customers.Code division multiple access (CDMA) is a channel access method used by various wireless communication technologies.
It offers fixed wireless telephone for your homes & business. With CDMA2000 1X technology.It is the largest WLL network with a capacity of 2.6M, covering over 10,000 urban & rural areas. The network is already enabled for Voice, Dialup-Internet access (153.6kbps) and EVDO Broadband.
V-fone can be bought from our franchises or by dialing 1236 and it will be delivered within 48-72 hours.
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PTCL Broadband services:
PTCL Broadband is the largest and the fastest growing Broadband service in Pakistan. In less
than two years of it launch, PTCL has acquired over 150,000 Broadband customers in over 150
cities and towns across Pakistan, leading the proliferation and awareness of Broadband services
across Pakistan.
With its entry in this market segment, PTCL opened up a broadband culture in Pakistan, where
till a couple of years back there was very little awareness in the country about broadband &
high speed internet services. PTCL made the broadband technology affordable by lowering the
barriers to entry, by geographically bringing the service within the reach of a common user
across Pakistan and by continuous improvements in customer care for the service.
Smart services
Using its state of the art Broadband network, PTCL entered the media sector on 14th August
2008, by launching a digital interactive television service for the first time in Pakistan.
Employing the IPTV (Internet Protocol TV) technology, PTCL brought Pakistan in the list of a few
countries across the globe that offers this state of the art interactive TV service to its
subscribers.
Branded under ‘PTCL Smart Line’, the service includes Interactive Television, Broadband and
voice telephony all at the same time on PTCL’s telephone line. Besides offering the highest
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digital quality TV picture, the most revolutionary section of this offering is the ability to ‘rewind’
and ‘pause’ live TV channels, the ability to block / unblock any TV channel for parental lock and
the ability to search through video on demand content. Currently PTCL Smart TV offers its
viewers over hundred live channels and over 350 local and international Movie titles ‘on
Demand’. The service for now is available in four cities Karachi, Lahore and Rawalpindi
Islamabad. However is planned to be expanded to all the major cities and towns across Pakistan
during the year 2009.
Pak Internet Exchange
It is the only IP enabled network with 40 (number increase) point-of-presences (POP) in 26
cities. The existing 16G active bandwidth is used for internet, data, video and video-
conferencing services and for voice of LDI. All PTCL Broadband users, narrow band users,
corporate, mobile operators, and ISP are connected to this network.
Service for corporate customers
PTCL is striving hard to facilities 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 Customers Services is given as under.
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Universal Access Number Voice Messaging Services PTCL Messaging Plus Co- Location center Universal Internet Number Virtual Private Network ISDN BRI/PRI
PROMOTIONS
PTCL use different promotional tools for Advertising and promotions for bringing a service to
get the attention of potential and current customers. The goals of the plan should depend very
much on the overall goals and strategies of the organization, and the results of the marketing
analysis, including the positioning statement.
PTCL plan usually includes what target markets you want to reach, what features and benefits
you want to convey to them, how convey it to them (this is often called your advertising
campaign), who is responsible to carry the various activities in the plan and how much money is
budgeted for this effort. Successful advertising depends very much on knowing the preferred
methods and styles of communications of the target markets that you want to reach with your
ads. Different techniques are used for promotions such as:
PTCL broadband customers will get a free for life personalized e-mail account with 50mb of
space.
Broadband keeps you connected to high speed internet all the time.
Economical packages for students
Special packages for corporate and individuals
Access to free movies, music, classical Pakistan plays, famous cricket matches, educational
and religious contents exclusively for PTCL broadband customers.
PTCL achieving the important milestone of taking broadband into over 414 cities/towns
across Pakistan
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Advertising
In pro motional mix, PTCL’s main stress is on advertising in print and electronic media PTCL
periodically laces 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”, “Inquiry 17”, “Complaint 18 phone bill cards prepaid telephone etc.
to remind the customers o f these services.
Sometimes, corporate ads are also released to print media to mark special occasions PTCL’s
Commercials on “Prepaid Calling Card”, “CLI”, “Voice Messaging ”, “Digital Facilities” etc.
are also broadcast immediately on electronic media as reminders to Customers.
Sales Promotion
PTCL charges 1/3rd rates on national calls from 06:00 pm – 07:00 am and local calls are
free from 11:00 pm to 06:00 am to 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 - 6:00pm and quarter 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.
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Personal Selling:
As PTCL is enjoying monopoly in fixed-line telephony, the Company has no Professional sales
force because the company has not felt any strong need to use the Services of a sales force
for increasing the sale of its products. At the moment, PTCL’s Customer Services Centers are
playing the role of sales outlets. Customers can make telephone calls, send fax messages from
these Customer Services Centers. They can also get connected their telephone bills and get
duplicate bills from these outlets. However, with the establishment of Marketing Department in
PTCL, The marketing professionals are now in the process of inducting professional sales
force for theCalling Card Promotion.
Promotional Tariff features
For NWD callers first minute will be charged and subsequent two minutes will be free
similarly 4th minute will be charged and 5th and 6th minute will be free and so forth. (From
9PM to 7AM)
Callers to mobiles shall avail reduced Tariff of Rs1.50/minute. (From 9PM to 7AM)
Reduced tariff will be applicable for thirteen international destinations (given in press add).
Prepayment telephony Services
Target Market
Target market for the services can be segmented as follow
Budget conscious subscriber
Subscriber avoiding bill-depositing hassles
People requiring casual connections (on short term bases)
Subscriber not meeting documentation requirement
Students living in hostels
Defaulters
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Pricing
As a government organization of 54 % share, PTCL cannot not set its prices itself. The Telecom Regulator
Authority viz. Pakistan Telecommunication Authority (PTA) fixes the prices of telecom services. They
adopt the fair pricing strategy in which consumer is satisfied with the pricing. If all the hold of pricing is
transfer to the Etisalat, they will charge value based pricing according his products nature. The process is
such that whenever PTCL intends to increase or reduce the rates of its services, it submits its Proposal to
PTA for approval. PTA then calls consumers’ representatives, journalists and other interested groups for
discussion on 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
telecom technology is only technology whose rates are on the decline with the passage of time.
Competitors
Mobilink is a largest mobile phone company of Pakistan. Mobilink is currently having more the
31,9 58 ,5 97 users base which is the 36% of total cellular industry of Pakistan. Mobilink is
basically competing Ufone which is subsidiaries of PTCL.
Telenor is another cell phone company it has
1 7, 84, 107 4subscribers which is 20 % of total
Mobile industry. Telenor is on the second position in the user rates.
Warid is also providing cell phone facilities in Pakistan.
Waridtel having more than15,1 14, 678 subscribers which is% of
Pakistan mobile industry.
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China mobile company has invested $721 million in telecom sector in Pakistan during 2007 and
it would further invest $7 million in Pakistan.
Touching the 4 million figures, Zong is doing ATL and BTL activities
extensively. Trying to make service and rates as simple as possible
Wateen Ptcl competitors is Wateen which is providing most popular
product against the PTCL .wateen is now a days leading company in
Pakistan. It not only provides landline service but also providing GSM
services.
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Success and failure of different products of the organization in the market along
with reasons
PTCL Broadband
The huge success in the PTCL broadband. This product creates innovation and took the
company in the peak level. Its launch in 19 may 2007, PTCL has acquired 500,000 Broadband
customers in over 605 cities and towns across Pakistan, leading the explosion and awareness of
Broadband services across Pakistan, hence 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.
PTCL achieved unprecedented success as it added over 10,000 customers within the first 120
days of its launch while historically it had taken four years collectively for all the other
operators to achieve 30,000 customers.
Its success is due to PTCL wide coverage in Pakistan. It is available in almost every city of
Pakistan now at reasonable Price.
PTCL EVO
PTCL EVO makes great impression on the customers. On the other hand world call launches his
wireless broadband as a competitor of the PTCL. In the start of the using the EVO makes a bad
performance due to the problem of the signals. After some time coverage is going better in
major cities and in some important areas. Manwhile world call takes positon of the PTCL EVO.
Ion this product PTCL suffer some loss but now the progress is going high, it is the more
necessary for those person who are using the LAB Tabs.
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PTCL Vfone
PTCL also continues to be the largest CDMA operator in the country with approximately 1.25
million V-fone customers. It is successful due to its differentiation and low price.
PTCL Land Line
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 the market forcefully in the cellular segment, including heating competition for PTCL. In
this situation PTCL’s counter strategy for landline services, during the years 2007-08 was aimed
to increase ARPU, acquire new subscriber and contain mix. Landline success is mainly due to
Broadband success.
PTCL 3G EVO tab
Pakistan Telecommunication Company Limited (PTCL) launched the country’s first 3G enabled tablet
with built in EVO Wireless Broadband, on 14th AUG 2011.
The product has received tremendous response from the users resulting in a runaway success. The
reason for its success is cited to be the fact that it is user friendly, offering on the go connectivity and
affordable package price.
“3G EVO Tab” is a 7 inch touch screen tablet with built-in EVO service to offer wireless broadband
internet on the go in more than 100 cities across the country. Powered by Google
Android Froyo 2.2 Operating system, 3G EVO Tab offers support for both 3G & Wi-Fi for an un-
interrupted on-the-go connectivity.
With a 5MegaPixel Camera , a variety of built-in applications plus access to latest Android market; 3G
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EVO Tab lets you browse, snap, share, communicate, navigate, play games and do a lot more on-the go;
thereby making it an ideal connectivity solution for users looking for high speed on-the-go3G
connectivity on an Android platform.
PTCL 3G EVO Tablet offers convenience and speed with three diverse economy packages to suit
individual needs & pockets. Its 12month bundle offer has been very successful with majority sales in this
bracket. Customers can get EVO Tab for as low as Rs.7999 plus 12months unlimited EVO service, all
at Rs. 31,999. Apart from the 12 months contract, EVO Tab also offers bundled packages based on 3
months and 6months contract at Rs.27,999 & Rs.29,999, respectively with 3months & 6months of
unlimited EVO service.
PTCL Smart TV
Using its state of the art Broadband network, PTCL entered the media sector on 14th August
2008, by launching a digital interactive television service for the first time in Pakistan.
Employing the IPTV (Internet Protocol TV) technology, PTCL brought Pakistan in the list of a few
countries across the globe that offers this state of the art interactive TV service to its
subscribers.
Because it is first time this service is launched in Pakistan. So it is success for PTCL.
Dial Up Internet
Because of high speed internet available so this product is now ended.
Major HR policies and practices
H.R. Management activities are carried on both by the staff H.R. Dept and by operating
management in the course of directing the activities of the work force. Variation from the pattern
described may occur in particular companies because of special circumstances.
This function includes recruitment, selection, and induction into the organization. The initial
decision to add someone to the payroll is made by line management. It is also its responsibility to
determine the content of the job to be performed and the employee qualifications necessary to
perform the job satisfactorily. Very commonly, statements of job content and employee
qualification have been previously worked out jointly between line management and the H.R.
Dept. These are recorded in the form of job descriptions and job specification. The H.R. Dept
54
must develop and maintain adequate sources of labor. It must set up and operate the employee
selection system, which may include interviews, selection tests, a medical examination, and
reference checks. Quite commonly the role of the H.R. Dept is one of screening with the final
decision to hire or reject being made by the supervisor who requested the new employee.
However, in the case of large-scale hiring program of unskilled or skilled workers, the H.R. Dept
is commonly granted full and final authority to make the hiring decision. The new employee’s
supervisor bears important responsibilities for introducing his/her to the new work environment.
This is often called orientation.
TRANSFER, PROMOTION, LAYOFF
For these tasks the H.R. Dept serves primarily in a coordinative capacity. When employees are
moved from one department to another either because of the needs of the business or because of
individual requests, the personnel records may be studied to ascertain that they possess the
requisite skills. Layoffs typically are processed by the H.R. Dept to ensure that the proper order
of preference is followed. This can become complicated of combinations of jobs, departmental,
and plant wide seniority rights must be observed. When a vacancy occurs in a position, it may be
filled by promotion from within or by direct hiring from outside the company. This decision is
often made jointly between the H.R. Manager and the executive in charge of the department
where the vacancy has occurred. Many companies may establish policies to cover matters of this
type. The actual final decision as to which candidate is chosen for the promotion is largely made
by the executive in whose unit the vacancy has occurred.
TRAINING AND DEVELOPMENT
On-the-job training and coaching are performed by the line supervisor or by a specially
designated employee who acts in the role of an instructor. It is the responsibility of the personnel
industrial relations group to determine training needs in cooperation with the line management.
Once the needs are established, the personnel training specialists must design a program to
accomplish the desired results. If the program takes the form of in service class room courses, it
usually is administrated by H.R. Department. Coaching, performance appraisal, and post
appraisal counseling, job rotation, understudies, and special broadening assignments are largely
executed by operating managers but coordinated by a central H.R. Dept. PTCL has established
its own training facilities as detailed below:
Telecom staff College Hari Pur
55
Telecom Staff college Lahore Cantt.
The regional level staffs training schools are also involved for extending training facility to all
the staff members of the organization, based at regional headquarter level such kind of Regional
Telecom training schools are
R.T.T.S Lahore
R.T.T.S Multan
R.T.T.S Faisalabad
R.T.T.S Karachi
R.T.T.S Islamabad etc.
Promotion training courses
Special emergent technology trainings.
Sometimes PTCL also sings contracts with its suppliers/vendors for foreign trainings.
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Future Prospects of PTCL
PTCL is a market leadership in Land Line , WLL and Fixed telephony. PTCL is market
challenger in GSM segment. They have the large target market in their segmentation.
Even their competitors still depend upon their network either directly or indirectly. All
this adds to their strategic strengths and after having all that in their basket they lack at
area where they are supposed to have developed core competence. PTCL, so far has not
been able to care for its growth around customer services oriented strategy, this has
translated into inadequate brand loyalty for them. Before coming all the competitors
PTCL was don’t care about the advertising and the customer loyalty. Now the PTCL has
need to becoming more focusing on this marketing tool. PTCL need to become strong
internally first. Internal organization issues become more conscious and need to remove
the monopolistic mark from the heads of thee employees. PTCL broadband is the
excellent product to capture the whole market.
PTCL is doing the viral marketing strategy. In which they are getting more benefit , becoming the
word of mouth, customer loyalty etc. there is much more need to become more focus in his
industry because the technology is changing time by time. Need to be up date with the changing
behavior of the customer.
6) Overview of HR Department:
PTCL operates in one of the most dynamic, deregulated and competitive markets in the world;
Pakistan with a population of 165 million people is a fast growing economy with relatively low
penetration of Information Communication Technology (ICT) services.
PTCL intends to be the leading ICT provider in the region by achieving customers' satisfaction
and maximizing shareholders' value and as such PTCL perceives its future as a customer centric
organization enhancing its infrastructure and investing in people.
H.R. Management activities are carried on both by the staff H.R. Dept and by operating management in the course of directing the activities of the work force. Variation from the pattern described may occur in particular companies because of special circumstances.
57
No of Employees:
There are 14 employees in HR department.
Functions and Operations of HR department:
PTCL HR department maintain, review all the developmental plans and long term policies, an effective
employees development program, appropriate compensation and benefit plan and good governance
model in line with statutory requirement and best practices. It ensures the Governance and HR policies
and procedures are aligned with strategic vision and core objectives of the company.
This function includes recruitment, selection, and training into the organization. The initial decision to
add someone to the payroll is made by line management. It is also its responsibility to determine the
content of the job to be performed and the employees qualifications necessary to perform the job
satisfactorily. Very commonly, statements of job content and employee qualification have been
previously worked out jointly between line management and the H.R. Dept. These are recorded in
the form of job descriptions and job specification. The H.R. Dept must develop and maintain adequate
sources of labor. It must set up and operate the employee selection system, which may include
interviews, selection tests, a medical examination, and reference checks. Quite commonly the role of
the H.R. Dept is one of screening with the final decision to hire or reject being made by the supervisor
who requested the new employee. However, in the case of large-scale hiring program of unskilled or
skilled workers, the H.R. Dept is commonly granted full and final authority to make the hiring
decision. The new employee's supervisor bears important responsibilities for introducing his/her to
the new work environment. This is often called orientation.
Key functions of Human Resource Manager
Human Resources may set strategies and develop policies, standards, systems, and
processes that implement these strategies in a whole range of areas. The following are typical of a wide
range of organizations:
Recruitment, selection, and on boarding (resourcing)
Organizational design and development
Business transformation and change management
Performance, conduct and behavior management
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Industrial and employee relations
Human resources (workforce) analysis and workforce personnel data management
Compensation, rewards, and benefits management
Training and development (learning management)
Medical payments about purchase order
Pension, grants funds for widows
Marriage grants for the daughters
Education grant
Provide the uniform two times in the year (winter and summer)
Administration related matters in the HR
Purchases of building, vehicles and building relate items Vehicle fleet ( GTR) Security of assets Inventory Cleanliness of staff Discipline of staff Arrangement of workshops, conference meetings Inspection of exchanges Property taxes of building Repair and maintenance of PTCL building Hotel ling for VIP
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Hierarchy of Human Resource Department in the PTCL GTR
Total 14 employees are working in the HR department.
Senior Manager HR
Manger HR Manger Administration
Asst. Manager HRAsst. Manager MISAsst. Manager Welfare
Asst. Manager Admin
Clerk Clerk Clerk Clerk Clerk Clerk
Personal Assistant
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Short falls and critical analysis of the HR department:
Manual system of attendance on register. After 9.15 am the register of the attendance has been sent to the personal assistant of the SM. And mark the late absent of those employees who come after the 9.15am. This system gives bad impact to the employees. They need the digital attendance system and record all the timing automatically in the employee’s record.
In the HR three employees are working on the wrong job designation. They are specializes in the technical field but the management post these employees here and didn’t transfer to the particular department.
The HR manger behavior with the employees is not fair. Most of the employees are fading up with him. This is due to the culture difference. He belongs to the northern area.
The HR manger didn’t perform the duties well and every employee work completely on his headache. He did only sign and just see the files.
In the HR department of the PTCl the both manger of HR and Admin is not doing his job well as according his job nature. They put the entire burden to the Assistant mangers. It is happen due to the short time spending of the SM HR in the GTR. SM HR doing the dual duty. The senior management didn’t heir the new SM HR. they are using the single person on the two duties in two different cities. By this manner the discipline of the mangers of the HR is not going growth.
Personal conflicts are existing there. HR manager evaluate the employees on the personal relations. He is the biased person.
If employee needs his or her statement book he need to contact with the MR. Tayyab and tell his employee number and receive the hard copy from him. This is not the effective system in the HR. They need to provide the facility of every employee to get the statement book by login his or her ID.
In the HR there is must be need to the job rotation. There is no concept of the job rotation. It is the great loss for the employees. Because they are working in the same field from the 12 to 15 years. If they get promotion then the job is re designate or promote in the scale. Some of the employees got promotion on the unfair base. There is no equal opportunity system for everyone.
There is no restaurant in the PTCL GTR. HR manager is not believed this is the compulsory or gives
refreshing for the employees. Employee goes outside from the organization or brings the lunch with
them. There is no opportunity for the employee to sit together.
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7) Responsibilities as a student Internship
During my PTCL internship I performed my duties in two different departments.
1) Human Resource Department ( five weeks)
2) Marketing (2 days)
3) Technical (3 days)
HRM
I worked my five weeks in HR department.
Mr. Tayyab Shabbir
He is Manager HR in PTCL. He was our supervisor. In my six week internship I spend my four week in
the HRM department. My internship supervisor didn’t assign a specific duty to me. He gave me
open permission to ask the question about any work and can join to anyone employee in the
HRM department.
Mr. Khurram Shehzad
He is Assistant Manager HR in PTCL. I learned a lot of things from him like:
Recruiting process for the CPI installer
Disciplinary Cases
Issuing the letter to the internee
Accept the leave application of the employees and sets in the file
Issuing the application to those employees who are absent without intimation
Education Grant
Uniform Allowances
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Mr. Rizwan
He is coordinator EFC (employee facilitation center). He marks attendance of employees and helps employees in several issues. We have done data entry job under his supervision.
We learned
Attendance policy Leave management system Transport management system Internee management system
Mr. Mehmood:
He is assistant manager welfare. I learned lots of things from him and doing practically.
Pension Cases, Only regular employee can apply for the pension. After the ten year service
employee can apply for retirement. Pension is applied only on the basic pay. I read the whole
rules and regulation about the payments of the pension and I study the case of the employee
who is getting the pension.
Other works:
Medical payments about the purchase order by using SAP
Benevolent grant funds for the widow (Manual file work)
Office memo letter for taking the medical facility. Make entry in the SAP. SAP number is
already generated by the doctor. So this is verified that the case is true.
Compare the services of the hospital with relative to the charges on the excel sheet
Give the payments of the hospital(within three months)
Knowledge acquired
This was my great experience in the six weeks practical life. I learned the discipline of
the organization. From the external appearance to the behavior, all things are need to
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be very effective and in proper way. Learned the official language rules and regulations.
We are responsible of what we are doing and are saying.
In the PTCL, using the SAP software is the major learning. SAP is the excellent software
in the modern and technical world. In my internship the SAP is the new thing which I
was not familiar before that. And all the offices did completely cooperate with me, to
learn the SAP easily.
Mr.Mehmood is very cooperative and encourages me to ask about the new things. He
guide me completely with the logics and give me proper time. He is very supportive and
can understand the problem of the student. I learned from him how to deal with the
stress. He advice me first that do work daily, do not pending the work on the next day. If
there is new thing for you so please learn it himself and try to solve the problems
without depending on another.
There is no real such burden in the HRM, because they had free in the June by
completely every pending work and done audit.
Improve the communication skill even the Urdu is common language in the PTCL but the
negotiation with everyone is very important which I had done successfully. No one has
complained about my communication skills and about my attitude.
6.2 Problem encountered
I face some problem in the PTCL HRM department from my manager. My manger is not
avail to give me proper time daily. His opinion that I need to come once a week not a
daily. So that’s why I faced little bit tensions and he gave me short time in a week. Three
times he said me to make the holiday due to inspection or other problems. My whole
day is wasted due to this unannounced holiday.
During work coordinator guides me properly but no any computer is always available to
do a work practically every time. Verbally we learned things but there is need to do a
work aside by self.
The staff of the administration is not mentally available to guide me. They just give me
overview about their activities but no one practically I can do with them. This is due to
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the manger of the Administration; he was not agreeing to do this. There is some
personal conflict with the manager of the HRM.
As an internee I feel a pressure from the side of the manger, his attitude is rude with his
employees and as well with me.
6.3 How internship experience impacts you career
Internship is an important part of BBA program. It provided the opportunity to develop practical
knowledge and also develop the concepts of the theory with the practical working.
My internship in PTCL is very great experience to get the practical life knowledge. In the HRM I
found all the theory is applied in practically. We cannot claim that practical life is different from
the bookish knowledge. I see everything is doing practically. I trained in time management,
stress management, discipline, rules and regulations also in the short period time.
My interest is also in the telecommunication field. I had got the experience of this life. This will
be easy (Insha’Allah) for me to get the job in the market.
8) CONCLUSIONS
As completed our six weeks internship we learned too much knowledge and the lots of
practical experience. No doubt PTCL is enjoying monopoly and PTCL has the guts and
capabilities to meet with the advancing telecommunication industry worldwide. But 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 human beings. PTCL is the government based
company, now the hold of the company is in private company but they didn’t succeed to
change the nature of the employees. They are using the high technology system but to
control the briberies or corruption in the minor level is very tough for the management.
Especially in the issues of the quality of the Broad Band is goes completely to the head of
the technical staff. Management provides everything proper and in the high quality but they
didn’t not apply with the empathy. It goes without saying that Human Resources are the
most important in the organization and so does the Human Resource Department . All
the responsibilities are the HR dept. It integrate all the activities and functions of the
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company like job analysis, recruitment, staffing, training, designing compensation
package, employee's appraisal system. Human Resource Department plays the key
role in the hiring, retention, motivation and promotion of the employees. They need to
terminate those employees who are creating problem, by seeing his or her performance
and didn’t accept the any references in technical job nature, where the employee meet
direct to the customer. Now they need to hire the educated person in the jobs where
customer is always right. Illiterate employees cannot understand the customer in real sense
9) RECOMMENDATIONS
Recruitment process
The recruitment process is not effective in the PTCL. Choosing criteria for the
contractual base job is completely on references. There is no staff that has special
training of HRM.
Trained staff
Highly qualified & trained staff is required in HR department. Because there is no Person
job fit for some employees.
Follow promotion rules
The promotional criteria by the Human Resource Department should be defined and be
as per rules. In the actual there are biased criteria in the PTCL. Not consider the actual
work.
Ethics
During the training by Human Resource Department the ethical values should be more
emphasized.
Adaptation of technology
This is the era of Information Technology. The functions and procedures of the company
should be converted from manual to the automatic. Special in the attendance. It will
enhance the performance & accuracy of the Human Resource Department and whole
GTR and ultimately of the company. Human Resource Department should allocate
resources for this purpose.
Advices and training
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Human Resource Department may advice and train employees for one window
operation in order to reduce the time and conserve the resources.
Technical StaffThe technical staff have very non-serious attitude in his job. They didn’t care about the customer services and quality products. A lot of corruption involves in the technical staff. Theft ceases is very common, and the quality is disturb from these kinds of misshapen and they put all the responsibilities to the head officers.
