PERFORMANCE MANAGEMENT

REPORT

SUBMITTED TO:

SIR JAMEEL RAO

SUBMITTED BY:

MOAZZAM MALIK – MBH-12-34

MEHREEN AFZAL – MBH -12-02

SHIREEN ASLAM – MBH – 12-20

M.B.A (H.R.M) 6th

ALFALAH INSTITUTE OF BANKING AND FINANCE

BAHAUDDIN ZAKARIYA UNIVERSITY, MULTAN, PAKISTAN

ACKNOWLEDGEMENT

It’s been an honor for us that Mr. Jameel Afsar Rao our Performance Management course

Instructor has assigned us the task to analyze the Performance Management System of ZONG.

It was really a remarkable and a knowledge full project for us to go to the ZONG Head Office and it

is also an important perspective of HRM because now days PMS is like just a backbone for any

organization and many organizations are working on it in order to improve the performance of

their employees because they believe that in order to achieve a good performance from the

company we need to focus on the performance of our human resource. .

We give special Thanks to Mr. Wasi-Ud-Din Regional Manager HR for guiding us and give us

their precious time to complete our Performance Management project.

CONTENTS OF REPORT

Sr.No TOPICS Page No

1. Executive Summary 4

2. Introduction of ZONG 5

3. Human Resource Department of ZONG 7

4. Performance Management system ZONG 9

5. Performance Management System Diagram 10

6. How PM Process conducted in ZONG 12

7. 16

Assessment Ratings and Effects8. Recommendations 16

Executive Summary

Telecom sector have undergone a radical change in the recent years. Once operating in a non-

competitive environment similar to utilities, it is now facing true competition not only from domestic

but also from international competitors. In order to keep themselves up-to-date, telecom sector

members have improved and strengthened their internal as well as external policies. As a result, they

are spending more on advertising and branding concepts and at the same time continuously

improving their workforce. A very important factor of skilled workforce in an organization is that it

reduces the cost and also helps to maintain an unbreakable and long lasting relationship with the

various facets of consumer behavior. Now the companies have realized that by concentrating more on

their workforce, they can achieve better efficiency and higher profits. Although HR department has

been ignored in Pakistan for many decades, but now it has been proved from the experience of other

companies that without applying HR policies, no organization can achieve efficiency and perfect labor

force.

Aim of Study• OBJECTIVE

– The objective of this research is to analyze Performance Management System in Zong. The research project is a requirement for the award of degree”MBA in Human Resource Management” by AIBF BZU.

• METHODOLOGY

– Interaction with concerned HR personnel of Zong, and other employees.

– E-mails.

– Consulting HR Text Books.

– Zong Website/Internet.

• SCOPE

– Scope of this research is limited to Zong’s HR Department to check how they conduct performance management process.

ZONG INTRODUCTION

• In 2004, Paktel was the first mobile telecommunication company which launched GSM services in Pakistan.

• In 2003, Millicom, bought Paktel.

• In January 2007 Millicom sold Paktel for $284 million to China Mobile (CMPak).

• So far CMPak has invested more than US$ 2500 million in telecom sector in Pakistan.

• CMPak’s edge comes from the experience and expertise of running the world’s largest telecom service.

• In 2007 China Mobile Company introduced its new brand in Pakistan called “ZONG” formally “Paktel” with introductory slogan “Say everything” or “Sub Kah Do”.

• VISION

• “Making Communication Exciting”

• Become an indispensable digital life partner.

• MISSION

To lead the future innovatively through:

- Customer Centricity

- Boundary less Team

- Organizational Agility

• CORE VALUES

– Integrity & Accountability

– Openness

– Perseverance

– Passion

– Efficient Execution

ZONG Pakistan

A first international step for China Mobile, Zong aims at touching the lives of all Pakistanis!

We serve to inspire and empower the people of Pakistan with innovative technology that keeps pace

with today's fast evolving culture. Expanding our wings of coverage to all corners, making no

distinctions along the way and most of all, maintaining excellence in connectivity everywhere we go.

Affordability & Innovation are what define us, aided with a diverse set of entertaining and informative

Value Added Services. With a state of the art system, along with other services Zong allows and

enables its users to avail the best possible Mobile Internet bundles that are not offered anywhere else

in the country making the experience, truly a unique one!

The basic idea is to allow people to communicate at their free will! Making it a stress free environment where you are not worried about Tariffs, Capacity Issues or Congestion, be it Network Coverage or Quality, it is all sorted!

Zong is supported by ground breaking communications, trend setting Customer Services and an unmatched Product Offering that has redefined the rules of the game!

Walking hand in hand with our nation, we make a happier Pakistan! A thriving ground with success on every step, with a smile on everyone's face be it rain or shine, with hopes higher than sky and the will… to 'Say it All!'

President

HIERARCHY

HR EngineeringMarketing

LahoreIslamabadKarachi

ITFinance Sales

Chief HRM Officer

Director HRM

Senior HR Manager

Regional HR Manager

Assistant HR Manager

Team Leader

Team

STRUCTURE OF HR DEPARTMENT AT ZONG

HR Department at ZONG in Multan

HR Department Objectives

• Build Capacity To Grow

– Short - Medium - Long Term

• Strengthen Organization & People Capability

• Institutionalize H.R Processes /Interventions

• Partner in Successful Transformation

• Become Employer Of Choice

• KEY RESPONSIBILITIES OF HR DEPARTMENT “AT HQ”

– HR Budgeting & Headcount Planning

– Recruitment & Selection

– Employee Record Management

– Salary & Benefits Planning & Processing

– Training & Development

– Performance Management

– Employee Relations, Employee’s Grievances

• KEY RESPONSIBILITIES OF HR DEPARTMENT “REGIONS”

– Employee Communication and Support

– Support in Recruitment & Selection

– Handle Employee Logistics , exit interviews & even management

– Support in Training & Development & Performance Management

PERFORMANCE MANAGEMENT

Performance Management is the process of defining clear objectives and targets for individuals

and teams, and the regular review of actual achievement and eventual rewarding for target

achievement.

The process should ensure that individual and team effort support the organisational objectives

and that key stakeholder expectations are realised by focusing on key value drivers. Thus:

Planning is crucial

Stakeholder expectations are key drivers of Performance Management

Management and employee buy-in and involvement are paramount

Key objectives and targets should be linked to corporate strategy

These factors are often not addressed in organizations and as a result the process is often

destructive and draws a tremendous amount of energy from the organization – leading to a

situation where value-add and benefits are minimal.

Performance Management should be a process that incorporates the following.

Planning Performance : setting Key Performance Area’s (KPA’s), objectives and

standards that are linked to corporate strategy, development plans.

Maintaining Performance : monitoring, feedback, coaching and mentoring and regular

interactions regarding goal achievement

Reviewing Performance : formal feedback, 360 degree feedback and ratings – evaluating

performance

Rewarding of Performance : increases, bonuses, incentives, etc

STEP 1: Setting up of SMART Objectives And Competencies

The Planning Phase is crucial - 80% of time and effort should be allocated to this phase. If the focus is

on inappropriate aspects of the organisation (i.e. the goals do not contribute to long-term strategy

achievement and stakeholder requirements), none of the subsequent phases will be worthwhile. If

the focus is inappropriate, it often leads to demotivation, lack of credibility and failure of the business.

Planning typically should include the identifying Key Value Drivers of stakeholders (stakeholders

typically are the shareholders, customers and employees of the organisation).

Schematically the process can be depicted as follows:

Shareholders

EmployeesCustomers

STRATEGY

KEY VALUE DRIVERS

Once the key value drivers are identified (value drivers are the key aspects that create economic

wealth for the key stakeholders, and can include profitability, quality service, training, etc), the

following is required.

erformance Management will be effective when a cascading model is followed. Flowing from the

strategy and key value drivers, the following can be defined:

Defining Key Performance Areas (KPA’s)

Defining Objectives

Defining Targets

The “Link”:Desired

performance

Actual performance

Measurement

Development

VisionMissionStrategyValue Drivers

Step 2: Agreeing T & D and Resource Requirements

Part of the planning phase includes the agreement on a formal development plan for the employee.

Typically this plan should be based on requisite skills, behaviours and knowledge (key competencies)

that will be required to achieve the objectives and targets set. The development plan can also include

long-term developmental initiatives (usually based on potential, good performance, etc).

Training activities should ideally be based on performance gaps that are identified during the

Maintaining of Performance phase. By linking training to identified performance gaps, training will be

focused, specific and relevant. As such, performance data should be a major input source of the

annual training needs analysis.

Both the training and development strategy and the performance management process should be

closely aligned with the overall Retention strategy of the organisation. Research (Teke, M, 2002)

suggests that relevant training/development interventions and regular performance feedback are

important factors in skills retention. High flyers start to look elsewhere for opportunities if these are not

present in their working environment.

Step 3: Interim / Annual Performance Review

Once Performance Management has been implemented and is in place for a period of time, it needs to

be evaluated in terms of effectiveness and efficiency. An audit in this case is defined as an

investigative, narrative, comparative and analytical process.

Typically an audit can utilise any (or a combination) of the following approaches/methodologies:

Focus groups (focus groups use a representative sample of employees to determine and

discuss perceptions, attitudes, etc).

One-on-one interviews (usually with more senior employees)

Questionnaires (paper-based evaluations, using specific questions)

Document reviews (a formal review of all related documents, i.e. policies, forms, procedure

manuals and training material)

Key topics that should be included in an audit should include:

Is there a formal Performance Management Policy

Training of managers and staff

Clarity and relevance of objectives

Application of the process (consistency)

The correlation between actual ratings and corporate performance

Once an performance review has been done, it is important to communicate the results to employees.

This will contribute towards the credibility and transparency of the system.

Step 4: Appraisal Decisions

With the help of final review a decision related to Pay ,Bonuses ,performance & Dismissal will be taken

Those who are good performer and average performer for the decision will be related to

Pay ,Bonuses ,performance and on the other hand for low or bad performers the decision

related to their dismissal or giving them a chance will be taken.

Assessment Rating and Effects

Recommendations

Effective management of individual and team performance is a crucial and central requirement to

ensure stakeholder requirements, organizational strategy and business goals are attained. This

requires accurate data regarding performance levels of business units, teams and individuals, and

therefore the need for a standardized and formal performance management system.

Despite the importance of performance management, most organizations find it difficult to implement,

manage and sustain performance management systems and processes effectively. It is therefore

crucial to ensure adequate planning, evaluation and training is done that will support a sustainable

process.

We recommend that the process of T & D should be considered after the interim and annual reviews

of employee’s performance.

Performance management will remain on the agenda in many corporate meetings, and will be a key

concern for ZONG HR practitioners and managers for many years to come.