Human Recourse Management

FINAL REPORT

3/5/2012

Muhammad Haris 09108022

Adeel Ahmed 09108021

Ahmed Mir

Amna Iftikhar 09108035

ACKNOWLEDEGEMENT

All praises and thanks are for Almighty ALLAH who is the source of all knowledge and wisdom endowed to mankind and to the humanity as a whole. Then, we would like to thank my parents and family without whom we would not have reached at this level. I would particularly like to thank my Course Instructor “Sir HASSAN JABBAR” for many insights he provided us throughout the course of Strategic.

MOBILINK

Mobilink, a subsidiary of the Orascom Telecom Holding, is Pakistan’s leading cellular and Blackberry service provider. Mobilink currently has more than 31.6 million subscribers.

Mobilink maintains market leadership in Pakistan through cutting-edge, integrated technology, the strongest brands, competent employee strength of 4,500 and the largest portfolio of value added services in the industry, a broadband carrier division providing next generation internet technology as well as the country’s largest voice and data network with over 8,000 cell sites.

Mobilink housing Pakistan’s largest distribution and contact centre networks and an unparalleled 6,500 kilometers fiber optic backbone, Mobilink has already invested over US $3.3 billion in Pakistan to date and provides countrywide connectivity, customer services and international roaming in over 140 countries.

Mobilink Pakistan:

In Pakistan, the Pakistan Mobile communications Ltd (Mobilink) started its operations in 1994 and, until early 2001, had a market share of 40%. In April 2001, OTH took over management control of Mobilink from Saifullah Group and Motorola. As the market leader even today, Mobilink serves more than 32.203 million subscribers, representing a market share of 32.47% (as of June 2010; PTA Statistics).

Vision Statement

To be the leading mobile service provider in Pakistan, providing the best quality services for the maximum number of customers, the best working environment for our employees and top value for our shareholders

Mission Statement:

“To be a superior communication service company in Pakistan which provides the best value to its customers, employees, business partners and shareholders.”

Mobilink's Values:

Total Customer Satisfaction:

Customers are at the heart of our success. They have placed their trust and confidence in us. In return, we strive to anticipate their needs and deliver service, quality and value beyond their expectations.

Business Excellence

We strive for excellence in all that we do. We aspire to the highest standards and raise the bar for ourselves everyday. This commitment to delivering world-class quality translates into unmatched service and value for our customers and all stakeholders.

Trust & Integrity:

At Mobilink, we take pride in practicing the highest ethical standards in an open and honest environment, and by honoring our commitments. We take personal responsibility for our actions, and treat everyone fairly, and with trust and respect.

Respect for People:

Our relationships drive our business. We respect and esteem our employees and all stakeholders. We believe in teamwork, empowerment and honor.

Corporate Social Responsibility:

As the market leader, we recognize and fulfill our responsibility towards our country and the environment we operate in. We contribute to worthy cause sand are dedicated to the development and progress of the society.

RECRUITMENT

Recruitment

“Hiring of employees by offering the job”.

Purpose of recruitment:

Hiring right person for right job for high productivity and to avoid mismatch between person and job.

Process of recruitment

Identify job vacancy. Whether to fill the vacancy or not. Recruit from inside or outside the organization. Job description. Person specification. Creating an application form. Advertise the vacancy. Distribution of application forms

Identify the job vacancy: To identify the job vacancy “line manager” is responsible for identification of job vacancy.

Whether to fill the vacancy or not: It is responsibility of “line manager and HR manager” to fill the job vacancy.

Recruit from inside or outside the organization:

Recruitment can be done in these two ways: Internal market recruitment:

“Recruiting the people through internal market is in informal way”.a) Through word of mouth.b) Staff notices.c) Newsletters.d) Vacancy generals.e) Networks.f) Intranet and email.

Disadvantages of internal market recruitment: Discrimination among the members. Through such a way cannot access outside the organization. Deny the opportunity to recruit fresh blood from outside.

Advantages of internal market recruitment: It is the most inexpensive sort of recruitment. It is the best way to make commitment with the employees and to increase motivational

level of employees. Recruited person already knows all about the culture of organization.

External market recruitment: “Recruiting people through outside the organization is formal way of recruitment”.

Different channels of external market recruitment:

a) Advertisement.b) Local pressc) Regional pressd) National presse) Job centers.f) Private agencies.g) Recruitment consultants.h) Web-based recruitment.

It depends on the job that which medium or channel have to select.

Job specification:

“It is all about the flows and the analysis of the job that has to be done, Outlining the goals in terms of day to day tasks and responsibilities”.

a) Job’s analysisb) Job’s titlec) Job’s purposed) Job’s scopee) Salaries benefitsf) Duties and responsibilities of the job

Person specification:

“The characteristics which are expected from a person (qualification and experience)”.a) Attainments and achievements b) Specialized skillsc) Person’s personality (like to work in a team , individualistic)d) Interest

Constructing application form: a) Construct an application form which required:b) Job descriptionc) Person’s specificationd) Qualificatione) Bio data: it is compulsory to know all about systematic informationf) References: it is also important to check all about person’s history, medical records, qualification

history etc.

Advertise the vacancy:

“Advertisement of vacancy through different modes which are suitable for the nature of job”.a) Pressb) Billboardsc) Adsd) Emaile) Pamphletsf) Internet

Distribution of application forms:

“Distribution of application forms through different modes which are suitable for the nature of job”.

a) News paper.b) Download from internet.

Recruitment strategies:

These three strategies of recruitment were formed by Drenth and Algera in 1987.

Suitability: Select the best suitable person for the job (right person approach)

Malleability: Change the job characteristics to fit the abilities of the people employed (culture fit approach).

Flexibility: change the person to perform more effectively.`

Right person Approach

Right person approach is the best practice method which is used in the free market countries. It tends to be an objective.

It requires clear answer and questions. Like is there any job to be done? If so what tasks and responsibilities are required? What qualities, skills, expertise are required to perform these tasks? By listing all these steps we become more rigid, it tends to be discriminatory and always generate

taxonomy. It becomes more rigid in such a way that:1. At least MBA.2. Must be from top 10 universities among UK.3. Must be 80% marks.4. At least ten years experience. Right person approach provides equal opportunities to everyone. There is discrimination through

cloning process because there is tendency to pick people like them and resources to form of them. There is low diversification due to cloning process. There is no creativity because of its rigidness.

Disadvantage: There is no creativity or innovation just because of same sort of people are everywhere.

Culture fit Approach

In culture fit approach the characteristics of the job changes to fit the right abilities of employee with today’s organization. It is a best way to use individual skills. In that approach personality is more important than the skills. This approach is Japanese adopted. From 1980’s western managers start examining the Japanese techniques because they focus on young candidates because they can easily be adoptable to the new characteristics.

Advantages:It is inexpensive approach if they hire young people because they can agree at low salary, easy to manage them, they are more adoptable.

Flexibility

“Hire employee for tomorrow to build a co0mpetitive organization”.This approach provides a significant competitive advantage for organization. Recruiting flexible employees, who must be prepare for future changes and able to contribute rather than confirm. Rather than aiming for rigid skills and abilities, profiles on malleable and gullible personalities, recruit people who are versatile and adaptable. This reflects a long term strategy, geared towards realizing talent for tomorrow’s recruitments it is not only to meeting current needs or filling the organization with complaint clones. This emphasis is on diversity, organization should identify the range of individuals required for the future. This form of flexibility offers long term benefits but needs people ready for new demands and hence need for a detailed knowledge of individual jobs, capabilities and the range of work to be performed now and in future. It is more risky for an organization.

Recruitment procedure in Mobilink GSM

Recruitment is done by Human Resource Department. An applicant's knowledge, skills and aptitude should relate to the position, education, experience, intelligent tests, interviews, reference, and Medical tests.Firstly applicants must submit a hand written or a typed application along with a legal biodata and two passport sized photograph to HR Department.

Mobilink always try to develop and maintain good relationship with employees. For Identification of employee’s issues, reviewing concerns and ensuring accurate and

timely resolution of raised concerns or issues; Mobilink take necessary actions to resolve employee issues and escalate them to

appropriate team, if required. Administration puts and explains benefits to employees. There is CC Management in recruitment process, who Participate in development and

execution of orientation programs and procedures for new employees and provides pulse report of Contact Center to CC Management for analyzing and planning future initiatives.

It provide information to employees about regulations, and policies, and to provide general support on as and when required bases.

To assist in scheduling various employee programs and events in compliance with department needs and to ensure work life balance.

There are Developing innovative programs to raise employee satisfaction level and bridge communication gap.

It provides assistance in monitoring employee performance management process and its timely completion.

Requirements for applying in Mobilink: The ideal candidate should hold a Masters degree in HRM. Have minimum six to eight years of relevant HR experience preferably in employee

relations.

Essential Skills for applying in Mobilink: Have good communication skills. Have relationship management, coaching and counseling skills. Desirable Skills Conflict management.

TYPES OF RECRUITMENTS

INTERNAL RECRUITMENT

Internal candidates must be confirmed employees of Mobilink who have completed one year of service. However especially good candidates may be considering.

The selected candidates motivate to join the new job/position after getting authorization from existing line manager.

Potential candidates whose spouses work for competition will not be considered for hiring. Because it is considered as Spouse of an existing employee will not work for direct competition and either one will have to resign biased selection or recruitment.

Hiring from vendors, franchises, and clients is not pessimistic. Exceptionally where offers are made to employees of these entities their prior approval must be obtained.

EXTERNAL RECRUITMENT

No candidate will be hired under the age of eighteen because it is against the laws and conditions.

Hiring of close relations (brothers, sisters, spouses, first cousins, brothers/sisters in law) will not be encouraged for avoiding conflict of interest. However candidates falling in this category who have extremely good qualifications may be considered. Hiring supervisors will need to give explanation in their assessment of the candidate their qualities that rationalize hiring. A final decision is taken from the concerned Divisional Head who have need to make sure that there is no any type of conflict of interest. 

Human Resources will recommend Department Heads for salary ranges for offering to the applicant keeping internal and external justice in viewpoint. 

Minimum qualifications must be masters in Human Resource Management.

Selection

Selection

“Selection is a decision making activity”.Selection stages:

There are two stages of selection.

Pre-selection stage: The stage before the main selection.

i. Reduction in application formsii. Emphasis on rejection rather than selection.

Evidence:

Through c.v, application form, letters, bio data etc.

Techniques: There are two techniques in pre-selection stage.

i. Telephonicii. Face-to-face

Less valid or less reliable:

It is a formal decision stage selectionIt could be criticized or might be biased selection.

Draw backs:

False positive: Hiring unsuitable person. False negatives: Reject the most suitable person.

There are two approaches through which we can make selection.i. Right-person approach

ii. Culture fit approach

Selection in small organization: in small organization informal selection method is used. The selection is might be through references, might be biased selection. There are just 1 to 2 interviews only.

Selection in large organization: in large organization formal selection method is used. It is prolonged, detailed and elaborated, series of interviews.

Methods of selection: Interviewing Psychometric Test Work samples Assessment centers Graphology

Interviewing: There are two types of interviews.

Formal interviewing: It includes personal perception of an interviewee.

Informal interviewing: These types of interview are important for professional and mock job interviews. It also includes telephonic and face-to-face interviews.

Evaluation methods Practicality sensitivity Reliability Validity

To measure how much test is practicality, sensitivity, reliability and validity.

Psychometric Test: (This test is used for measuring the mind abilities; for measuring followingIt is mostly used in large organizations).

Personality Motivation career interests competencies Intellectual abilities

This test is useful for testing the personality of the candidate, its motivational level, his/her career interests, how much competence level he/she has and how many intellectual skills have and how he/she uses it.

Advantages:

It gives numerical results It helps in comparing predicted and actual performance. It gives cover range of abilities and qualities It measures the inner substance rather than the image. It can easily read the conceptual language. It gives evidence to justify decisions.

Disadvantages:

It unable to give accurate responses. It can be unreliable. Sometimes these tests are invalid. Mostly it is irrelevant and time consuming. There is some sort of stereotyping and some sort of discrimination. It might be destroy the employee's values.

Work samples: It includes presentations, reports, group discussion, typing tests and role playing etc.There are letters to which answered.

Reports to analyze. Items to prioritize. Assessment centers: Graphology: (Which is used for testing hand writing analysis).

Selection Criteria of Mobilink GSM

Departments must submit Hiring Request and / or Transfer Request Form to the HR Department and duly signed. Information regarding qualifications and job description should be forwarded for identification of suitable candidates. Lead-time of at least ten working days should be given for selection of candidates.

The Human Resources Department would place internal advertisements and / or shortlist suitable candidates from the databank. If no suitable candidate is found, advertisements will be placed in media.

Following information's is required by Mobilink from the applicant:

In case of failure to pay employees Mobilink signs a contract of 1 Year which can be extensive to another year.

After selection the candidate is required to complete a 3 month long trial period. HRM department prepare and delivers the Employment Letters to the employee and obtain

signature of him on a copy. Candidates rejected or kept on file are sent regret letters.

Hiring Committee:

The Human Resources Department shall, upon the department’s request, provide screened CVs. The department will do another screening if necessary and conduct interviews with the immediate Supervisor / Department / Divisional Head or his / her nominee and any job related selection tests. Short Listed Candidates will be invited for a final interview with the HR department. The Human Resources Department may conduct Profile and Psychometric Tests for the selected candidate in order to evaluate the suitability of the candidate.

Two Reference checks will be completed for the selected candidate either before hiring or during the probationary period. Appointment will be subject to satisfactory references being received.

Mobilink’s Hiring Committee constitute following There are members for hiring on all the levels:

Respective Department Head Head of Human Resources President Selection Criteria of Mobilink GSM

Appointment Letters:

There is Mobilink’s appointment letters for successful candidates spells out the terms and conditions of the employment and benefits applicable to the position.At the time of approval the concerned department is send the feedback for confirmation.

On Selection the following information will be forwarded to HR to be kept in the Employees Personal File:

Interview Evaluation form Passport size Photos. Any other special clause. References. Copy of N.I.C. Copies of degree(s): Bachelors and above only and copies of experience

certificates. Duly filled application form

In the Case of Consultants the Company will sign a contract with the Consultant for a duration ranging from 3 months to 1 year.

The Human Resources Department shall prepare and deliver the Employment Letter to the Employee and obtain signatures on a copy. These were the practices but what actually are the practices for Recruitment and selection at Mobilink.

PERFORMANCE APPRAISAL SYSTEM

PERFORMANCE APPRAISAL SYSTEM

Mobilink conducts performance appraisal in order to assess their employee’s current performance or past performance relative to company’s performance standards. Mobilink try to adapt the performance appraisal in which their employees understood what his or her performance standards were and that the supervisor also provides the employee with feedback, development, and incentives required to help the person eliminate performance deficiencies or to continue to perform above par.

OBJECTIVES OF PERFORMANCE APPRAISAL AT MOBILINK

The purpose of this policy is to provide a formal review program to evaluate work performance and to promote communication and discussion of job performance. The intent of these discussions should be to review current job performance and responsibilities, set goals, and discuss future opportunities with reference to past performance at Mobilink.

The Objectives of the Performance Review Program are:

To measure work performance To motivate and assist employees in improving their performance and achieving their

personal/professional career goals To identify employees with high potential for advancement To provide objective information for making decisions on salary increases, promotions,

bonus and transfers. To identify employees training and development To provide a solid path for career planning for each individual

PERFORMANCE APPRAISAL PRATICS at Mobilink.

Performance appraisal is done on an annual basis (from January 1st to December 31st) To give a chance to subordinates to evaluate their seniors a 360 degree evaluation is

conducted at the time of the performance evaluation.

The immediate supervisor prepare an annual report in December of each year of each

employee

Increments are also given at the end of the year, increments are percentage of salaries.

Promotions are given on good performance after completing two years in the current

grade.

Bonuses are given but the employee must have to complete 6 months in the company service.

There are many performance appraisal methods. Mobilink uses the computerized performance appraisal method. The Mobilink HR department has developed a performance appraisal sheet and has downloaded it on the intranet of Mobilink so that the supervisor performs the evaluation of the employees. When the supervisor completes the evaluation, he will send the performance appraisal sheet to the employee for the affirmation with the ideas of the supervisor if the employee does not agree with the supervisor he will not sign the PA sheet. When the last date of submission of PA sheet is passed then the HR department asks the supervisor and the employee about the problem and resolves the problem.

PERFORMANCE REVIEW

At MOBILINK a review is intended to be an open and frank discussion between an employee and their Team Leader/Manager. Generally there are two elements: first is the element in which discussion takes place over the strengths and areas which need to be developed as displayed by the job holder over the past 12 months. The performance is of course judged comparing the performance against the core indicators of Job. The second element is concerned with discussing the training needs/inputs activities that are considered to be appropriate to help the jobholder overcome some of development areas discussed in the review and also those activities that are deemed appropriate to build upon their current strengths.

SOURCES OF PERFORMANCE APPRAISAL

At MOBILINK the primary sources of performance appraisal are the managers and secondary sources are employees themselves. Though the peers also give their opinion but it usually does not have any weighting unless a conflict arises between the manager and the employee.

CRITICAL Examination ON PERFORMANCE APPRAISAL

Online 360 degree approach of performance appraisal is adopted at Mobilink for evaluating employee performance. In the past only 180 (boss, subordinate) Degree approach for performance appraisal was adopted but now 360 Degree is also in action. This is a very supportive strategy by the organization because if an employee is not happy with the evaluation by his supervisor then he has the authority to challenge.

There are a number of rewards that are tied to performance appraisals. So, tool applied for performance appraisal justifies itself.

TRANING AND DEVELOPMENT

Training & Development

Training programs:

"A process designed to maintain or improve current job performance".

Most training is used for upgrading and improving an employee's abilities. Training is to identify the most appropriate solutions to performance problems for a current period of time. All Company Heads should differentiate between problems that require training and problems that require coaching or other solutions. Usually, only about 20% of performance problems require “training” solutions. The other 80% are best dealt with by looking at the quality of supervision or by factors in the work environment (rewarding good performance, punishing poor performance, and removing obstacles to good performance).

Development programs:

“A process designed to develop skills necessary for future work activities”.

Development is long termed and a never ending process which gradually & constantly enhances the skills & performance of the employees.

Difference between Training and Developmental Programs

Training is for the current improvement in the job while developmental programs for improving the skill which will be used in the future.Both managers and non-managers receive help from training and developmental program but mostly non-managers are concerned with training while the managers are concerned with developmental programs.

Why Training and Developmental Program?To improve three types of skills:

Technical skills Interpersonal skills Problem solving skills

Types of Skills

Technical Skills:

The skills of improving basic skills like the ability to read, write and doing math computations as well as job specific competences”.

Interpersonal skills:

This type of training includes learning how to be better listener, how to communicate ideas more clearly and how to reduce conflicts”.

Problem solving skills:

“These skills include participating in activities to sharpen logic, reasoning and skills at defining problems, being creative in developing alternatives, analyzing alternatives and selecting solutions”.

Training Methods

Most training takes place on the job because this approach is simple and inexpensive.Some skill training is too complex to learn on the job. In such cases it should take place outside the work setting

Training Objectives of Mobbilink:

The training objective is to provide employees with greater opportunity to grow and succeed within the Company. To strengthen management and professional team’s at all organizational levels, the Company shall develop a sound program, employing a number of basic and acceptable personnel practices to:

Provide employees with appropriate opportunities to improve their work performance, to enlarge their capacity for greater responsibility within the limits of their potential and to advance on a Company-wide basis.

To improve the performance of all employees. Fill every position vacancy with the best-qualified person obtainable. Recruiting first from within

the Company and going outside only when a fully qualified person is not otherwise obtainable. Keep high potential, high talented employees moving up the organizational ladder? High

potential employees are those who are highly motivated to achieve corporate and career objectives.

Keep every key position backed up by an adequate number of fully qualified replacements within the organization. Key positions are those, which are considered to be critically important to the Company’s success and which generally, require considerable Company experience. In all cases, the President or his designee should make the final determination of key positions in Mobilink.

Human resource DevelopmentIt is a long term and strategic approach to investing in human capital.

HRD framework:

Self development Training programs career progressions

Development programs:It includes an organized patterns o experience and training programs.Armstrong, 1992 said that it could be an empowering process that provides:

A signal that the organization believes its employees is unique assets. The motivation to achieve the organization’s objectives and consequent rewards. Commitment to the organization by understanding its values, aims and policies and learning how

to uphold them. Two way communication between management and staff. Need satisfaction being selected for training fulfills the need for achievement and recognition in

itself. To enrichment, covering from additional skills obtained through the training programs that can be

used in other aspects of work like involving the employees in decision making, advancement etc. Change management, training provides to the people with an understanding and confidence to

cope with change.

Management Development

“To increase core competencies of employees and manager”.It is used for continuous promotion and mostly used in large organizations.

Developing Management: It is developed by two ways: Management and professional education. Developing the management competencies.

By providing Management and professional education: Organizations send their employees for degrees, diplomas and masters etc. for the enhancing their

leadership qualities and skills etc.McKenna said that academic and experiential learning should coexist.

Two main perspectives on skills necessary for management:

One best way: Set of competencies and techniques once learned can be used in a variety of organization setting.

It depends: contingency view like (commonsense, experience, wisdom etc)

Developing the management competencies:

Intellectual:It is all about logical thinking, creativity, diagnostic use of concepts, also use of models and they can also use their own ideas, models etc.

Entrepreneurial:It is all about effectiveness and efficiency of allocation of resources and work doings at time.

Social emotional:It is all about checking the stamina, self-control and adaptability of a candidate for working in the adverse and uncertain environment.

Interpersonal:It is all about how effective communication skills, self-confidence, development of specialized skill and public relations a candidate has and how he maintains them.

Coaching and Mentoring

Mentor: mentor is a person who provides help support to the colleagues, employees and feedback to the organization.Mentor and Staff: Thomason and Mabry said that there should be 7 to 10, 8 to 10 years gap between the ages of mentor and the junior staff because mentor will have more experience, because he may actually relate life experiences. (Same gender and same ethics).

Key point: Regular meetings between junior staff and Mentor maximum within 30 days. Questioning and challenging (to get a better vision of the organization). Must be a good listener of effective communication. Feedback and implementation

CAREER PLANNING & DEVELOPMENT

Mobilink faces much competition in the telecom industry so now they are focusing on career Management of their employees in which they enable the employees to better understand and develop their career skills and interests and to use these skills and interests most effectively both within the company and after they leave the firm. Career planning is the deliberate process through which someone becomes aware of personal skills, interests knowledge, motivation, and other characteristics; acquires information about other opportunities and choices; identifies career related goals and establishes action plans to attain specific goals. Career development is the lifelong series of activities (such as workshops) that contributes to a person career exploration, establishment, and success and fulfillment.

Mobilink gives promotion to their employees on the performance basis. The Mobilink HR department develops the employee’s career development plans in which the HR department predicts the next reasonable step for their employees within five years. Importance of Career planning in today’s competitive world is as important as any other HR function. Retaining your valuable Human resource today is one of the biggest challenges that organizations are facing. So, HR needs to come up with new strategies. Career planning and development is one of the basic tool and strategy organizations are using for retaining their employees. This function actually makes employees feel that they are important to the organization and Mobilink wants them to be at the top in their careers.

As far as the practices are concerned, all the employees were reluctant to talk about this during our interview. However, what we analyzed is that career development is practiced but not that openly. Specially, in case if some employee is considering of joining the competitor’s firm. If such is a case then organization has discipline policies for that even.

Reward management / compensation management

Reward management / compensation management

“Everything received by an employed individual in return for work”.There are two types of reward.

Compensation: It includes monetary or non-monetary rewards.

Pay schemes:

There is fixed levels of pay (mostly it includes white collar employees).

Rewards linked to performance (mostly in blue collar employees).

Objectives of compensation programs:

Internally equitable and it includes paying people in proportion to the relative value of job.

Externally competitive and paying people in proportion to the market price of the job. Personally motivating to employees.

Pay roll department

Traditionally there were just calculate the employee monthly pay but now days the calculations are made on the employee pay, his rewards, all facilities, health benefits and holidays etc.Dickison in 2006 conducted a survey and highlighted the criteria to assess employees pay.

Qualifications Responsibilities Performance (the better-You perform, the more you get paid)

Traditionally in large international labor organizations job evaluation technique is used for paying an employee because you are going to evaluate the job not the person, and you put the scores against each job in an organization.

Pay and Motivation

Pay could be an effective motivator but not only motivation.There employees are motivated through intrinsic or extrinsic rewards.

Intrinsically motivation:

It is intangible motivation by providing such type of goods: Good office Participation Recognition Sense of pride

Extrinsically motivation:

It is tangible motivation by providing such type of goods or all non-monetary compensation and by increasing the pays.

Benefits: Medical care Retirement benefits Life insurance Paid loans Company car Laptops etc.

Pay and performance:

There are two criteria’s of pay related performance.

Appraisal related pay:

“Appraisal related pay includes merit pay and individual incentives”.

Collective performance pay:

“Collective performance pay includes bonuses in which profits of an organization are shared on large or targeted profits in certain time and there is option of share offering option to organization’s employees”.

Critical analysis of rewarding:

Money is a de-motivator High turnover could be there because not all the employees are getting benefits, only a

small part of organization are getting them. Objectives are imposed not negotiated. So, employees are not sure what is expected of

them. Assessments are not fair. All the managers don’t know about the employees so, they

could not assess them properly.

Reward system at Mobilink

Policies on Reward system at Mobilink:

MOBILINK considers its employees not just as a cost but also as a resource in which the company has invested from which it expects valuable returns. Pay policies and programs are one of the most important human resource tools for encouraging desired employee behaviors. The advantage of paying above the market average is the ability to attract and retain the top talent available, which can translate into highly effective and productive work force.

The incentive schemes and incentive objective have been clearly communicated to all individuals and weekly progress report is also communicated to all concerned.

There is a list of policies regarding the reward system at Mobilink. It offers both kinds of rewards: Intrinsic and Extrinsic. Following are the main reward related policies:

Salaries policy:

The purpose of this policy is to have salaries subject for review in January of each calendar year in the light of merit and inflation.

An employee, who is employed on a job with title and specifications, will receive compensation that is relevant to field experience matching with approved salary structure of his / her position.

Provide annual performance appraisal for employees to improve their job performance and to encourage them to aspire for promotions to jobs with greater responsibilities i.e. fairly compensate employees based on individual accomplishments and annual performance appraisals

Salary Program Objective:

The salary administration program is designed to meet the following objectives:

Attract & retain the services of competent qualified employees. Provide fair and equitable compensation to each employee and to ensure that the value of

each job relative to all other jobs within the Company is established and maintained on a fair and unbiased basis.

Provide annual performance appraisal for employees to improve their job performance and to encourage them to aspire for promotions to jobs with greater responsibilities i.e. fairly compensate employees based on individual accomplishments and annual performance appraisals.

Ensure that salaries are competitive and in line with salary levels that prevail in the industry.

Encourage employee confidence in the Company’s compensation policies and practices.

Salary Outline:

The “Basics” of the salary administration program can be summarized in the following manner:

The VP(vice president) Human Resources & Administration and the concerned

Department Head will analyze each job classification.

The HR Department determines an appropriate salary range in relation to similar jobs at other well respected companies (salary survey).

The HR Department will analyze each job and assign a job code, employ rate, minimum, mid and maximum point rate. (Salary Structure)

The HR Department will prepare the salary structure to be reviewed and approved by the Director & VP HR.

COMPENSATION

Compensation and benefit plans are particularly based on performance. If performance is up to the standards of Mobilink and the employee has good conducts he is rewarded. After performance evaluation, results are rechecked and matched with the standards. Based on that, proper compensation plans are designed.

BONUSES

The employee may receive 1 to 3 month bonus subject to evaluation of accomplished objectives.

In Mobilink the reward system is based on the individual performance and individual employee performance is judged for the reward. The manager of respective departments recommends a candidate from his section for the reward purpose to HR.

Extrinsic and intrinsic rewards

Life insurance Medical care Club Policy Travel Education assistance policy Targets achievements Business mobile phone policy Mobile phone Foreign tours Best employee of the month award Best employee of the year award Company’s car Laptop to senior managers

Promotions

Promotions are also reward management technique to motivate employees. In MOBILINK promotions are based on the merit and seniority (experience) basis. The one who performs well consistently over time gets reward in the form of promotion.

Promotion Policies

The new company structure is in five layers, comprising associates, specialists, managers, directors and chief officers. In that order starting from the bottom and working towards the top rank of the ranking it would be mandatory for the employees to spend the following maximum period at each level before a promotion to the next level depending upon availability of a slot:

Associate 3-4 years

Specialist 3-4 years

Manager 2-3 years

However, employees who may not get a chance of promotion due to the non availability of an existing slot will be compensated by being “moved over” within the new salary range specified by the company.

CRITICAL Analysis

While Mobilink tends to lay off its employees in regards to reducing their expenditure and by naming it ‘none-performance basis’, Mobilink also is spending millions of rupees on their generous trip to international destinations.

Mobilink is sending a group of one hundred people which include 3 Vice Presidents (traveling first class which is top most traveling cabin in a passenger aircraft) approximately a dozen Directors travelling Business Class, Senior Managers, Managers and selective Franchisees for Bangkok – Thailand & Kuala Lumpur – Malaysia every year.

This is one of “those” trips where everything is paid for by the company expenses including travel, accommodation, food & all sort of drinks, leisure & pleasure and is considered a standard practice in the company.

On one side company talks about reducing its costs and takes action by dismissing its staff and on the other side; the same company is taking its favorite people out on International destination for pleasure. Means they use stick and carrot rule; fire to those who does not perform well and reward to those who are performing according to the level.

Conclusion

Through our Human Resource Management Final project by using and implementing all the HR theories, strategies we have concluded that HR Department is very important everywhere now a days without it we didn’t perform well. Our project is on Mobilink Telecommunication Company’s HR Department so; we concluded that Mobilink has a strong HR system. That is the reason we didn’t found much discrepancies in what management says, what policies state and what employees say. 90 % of the times they were same. There are some minor discrepancies but they are adjustable with little effort which shows that there is no any communication gap between any management level, high motivational level and high commitment of employees with the company and their work . it shows that their common goals are same .

Recommendations

Mobilink has a strong HR system. That is the reason we didn’t found much discrepancies in what management says, what policies state and what employees say. 90 % of the times they were same. However, there were some discrepancies that require concentration and their modification can make this HR system best in Pakistan.

Following are some of the recommendations based on those discrepancies: They have to launch the 3G network as government is giving the license of the 3G

technology, to get the competitive advantage. Human resource department is not fully authoritative to take all the decisions. Though

HR department claims to have the overall management of the company but that in fact is not the case. There are many HR decisions that are taken by the other department. So, there should be a clear allocation of power concerning decision making for HR department.

One thing we observed during our project was that employees were not aware of the policies in depth. The main reason was that we have understood for this is due to their lack of knowledge about policies formulation. Employees are not confident to give suggestions in policy formulation. So, our suggestion is that employees should be consulted while policy formulation period.

Benefits and rewards are also complex for anyone to understand. Though there are many of these but most of employees still have not information as to for

what benefit they can go for. So, Mobilink should simplify its reward system for its employees to understand well.

The decision making is delegated to managers with goal setting for each period of promotion, hiring and firing is practically in the instant boss’s hand. This practice can cause dissonance among employees for power. Team based structure (like the one at PMO) must be preferred in all departments of the organization.

Mobilink pursues Zero-tolerance policy for disciplinary dealings. This is good but not in all cases. Mobilink must give attention towards its discipline polices and try to be a little more compassionate.

Mobilink HR lacks in terms of career planning and development. This important function of HR does not have identification in Policies’ statement. Mobilink should have over view at this.

Mobilink uses only policy particular sources for recruitment which are only 5. In this way it may lose some potential applicants that are asset to organizations, just because they were not well communicated.

So, Mobilink must increase its recruitment sources.