Table of Contents

Table of Contents....................................................................................................... 1 PTCL BACKGROUND:...................................................................................................2 HISTORY OF PTCL:...................................................................................................... 2 VISION OF PTCL.......................................................................................................... 3 MISSION OF PTCL........................................................................................................3 CORE VALUES............................................................................................................. 3 CONSTITUTION OF THE COMPANY:.............................................................................4 PRODUCTS AND SERVICES..........................................................................................5 CONSUMER SERVICES:............................................................................................5 CORPORATE SERVICES:...........................................................................................7 COMPANYS ANALYSIS..............................................................................................12 Operational analysis..............................................................................................12 Financial analysis..................................................................................................12 Human resource assessment................................................................................13 Marketing analysis.................................................................................................14 ENVOIRNMENTAL ANALYSIS......................................................................................14 Industry and market analysis................................................................................14 Competitor analysis...............................................................................................15 Technology analysis..............................................................................................16 MY EXPERIENCE WITH PTCL......................................................................................18 IDENTIFICATION OF MAJOR PROBLEMS.....................................................................23 Falling revenue......................................................................................................23 Job Security...........................................................................................................23 Bureaucratic Culture of the Organization:.............................................................23 Loss of Market Share:............................................................................................24 High technical staff turnover:................................................................................24 MAJOR FINDINGS ABOUT THE PROBLEM...................................................................24 CONCLUSION AND RECOMMENDATION:...................................................................25

PTCL BACKGROUND:
PTCL is the largest telecommunication provider in Pakistan with employee strength of 30,089. It also continues to be the largest CDMA (Code Division Multiple Access) operator in the country with 0.8 million V-fone customers. Moreover, the company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. It has the potential to be an instrumental agent in Pakistans economic growth. PTCL has laid optical fiber Access network in the major metropolitan centers of Pakistan and it has modernized and upgraded the local loop services from copper to optical network.

HISTORY OF PTCL:
PTCL was initially inaugurated in 1947 under the name Posts & Telegraph Department as an organization which is completely owned and controlled by the Government of Pakistan providing Postal, telegraphic and telephonic services all over the country. In 1961, the postage department was separated from this department and the name of the organization was changed to Pakistan Telegraph & Telephone Department (T&T). Than in 1990-91 the organization took the status of a corporation under the Pakistan Telecom Corporation Act 1991, and was named Pakistan Telecom Corporation (PTC). The same year, Government announced to privatize PTC, the privatization process was completed by 1994 and the government issued 6 million vouchers exchangeable into 600 million shares of would-be Pakistan Telecommunication company limited (PTCL). In 1995, Pakistan Telecommunication Reorganization ordinance formed the basis for the PTCL monopoly over the basic telephony in the country. It also paved way for the establishment of independent regulatory regime. The provisions for the ordinance were lent permanence in October 1996 through Pakistan Telecommunication Reorganization Act. The same year PTCL was formed and listed in all stock exchanges of Pakistan. In 2005-2006 PTCL was privatized in April 12, 2006. Etisalat International Pakistan LLC (EIP), a subsidiary of UAE Telecommunication Company (ETISALAT), assumed 2

management of Pakistan Telecommunication Pakistan Limited (PTCL) through the acquisition of 26% share in PTCL.

VISION OF PTCL
To be the leading Information and Communication Technology Service Provider in the region By achieving customer satisfaction and maximizing shareholders' value'

MISSION OF PTCL
To achieve our vision by having: An organizational environment that fosters professionalism, motivation & quality. An environment that is cost effective & quality conscious. Services that are based on the most optimum technology. Quality & Time Conscious Customer service. Sustained growth in earnings & profitability

CORE VALUES
Professional Integrity Customer Satisfaction Teamwork Company Loyalty

CONSTITUTION OF THE COMPANY:

PRODUCTS AND SERVICES

PTCL achieves its customers satisfaction by providing them with features and services like network coverage, performance, reliability & security at their specific locations. PTCLs services are available for two types of Customers: 1. Consumers 2. Corporate customers

CONSUMER SERVICES:
1. PSTN (Public Switch Telephone Network) 2. V fone 3. Broadband 4. IPTV (PTCL Smart TV) 5. VMS (Voice Mail Service) 6. Free Internet Facility

7. Kehdo SMS 8. PTCL Direct 9. PTCL Calling Cards 1-PSTN (Public Switch Telephone Network): This service is available on conventional fixed line phone. This service includes convenient features and options like Caller-ID, Call Forwarding, Call Waiting, Conference Calling, Call Barring and Do not Disturb. PTCL also offers flat calling rates for local, nationwide and international calling services to its customers. For further details on PSTN, help line 1236 can be contacted.

2-VFONE FIXED WIRELESS ACCESS NETWORK: It is a replacement of fixed line phone mainly in the areas where there is not network availability. Wireless phones are based on CDMA2000 1X technology. PTCL has built-up capacity of 2.6M covering over 10,000 urban, suburban and rural villages. The network is enabled for Voice, Dialup-Internet access (115kbps) and EVDO Broadband. 3-BROADBAND: PTCL is offering high speed broadband to its consumers for high speed internet connectivity with easy downloads & uploads. Free DSL modems are offered to the customers while special discounted student package is offered to the students as well. 4-PTCL SMART TV: Its a fixed line service that allows the customers to experience telephony, Broadband and multi-channel TV service all at the same time, on the same line. No additional cable would be required to receive cable TV / Multi channel TV. An IP (Internet Protocol)-based platform allows the TV service to be smarter than the traditional broadcast and cable TV services, by making the TV viewing experience more interactive and personalized. 5-VOICE MESSAGING SERVICE (VMS): PTCL is offering phone to phone Voice Mail Service that works all of the time - even in power outage. After 6 or 7 rings the voice mail service activates and the caller can leave the message in his voice. Voice mailbox can be accessed 24 hour a day, 7 days a week and the customer would never miss an important call. PTCL has extended its Voice Messaging Service to 38 cities and its all free. 6-FREE INTERNET FACILITY: PTCL has offered Free Internet facility for its landline valued customers. All PTCL landline subscribers can now experience the best dial up speeds with unlimited internet usage during night hours from 10:00pm to 07:00am.

7-KEHDO SMS (VOICE SMS): Adding voice to the SMS takes SMS to the next generation of value. In this service, the caller can leave a text message from his digital phone to any cell phone number. That text message is received with voice on the cell phone as an incoming call. 8-PTCL DIRECT: PTCL direct is a pre-paid international calling service for making calls from the UK to Pakistan. The service aims to extend PTCLs reach to UK based callers wishing to stay in touch with their family & friends in Pakistan. Customers can purchase credit online (using a credit card) and make calls to any number in Pakistan direct through PTCL. The calls will be charged according to prescribed PTCL tariffs. www.ptcldirect.com is the website for further information on PTCL Direct. 9-CALLING CARDS DENOMINATIONS: PTCL Calling cards are available at Sales & Service Centers, PTCL Customer Service Centers and retail shops, in the denominations of Rs. 50, 100, 250, 500, and 1000.

CORPORATE SERVICES:
1. UAN (Universal Access Number-111) 2. UIN (Universal Internet Number-131) 3. Business DSL 4. DPLC (Domestic Private Leased Circuit) 5. IP Connect 6. ISDN BRI (Integrated Services Digital Network Basic Rate Interface) 7. ISDN PRI Integrated Services Digital Network Primary Rate Interface) 8. Co locations 9. DXX Connectivity 7

10.Call Centers 11.Audio Conference 12.VPN (Virtual Private Network) 13.Premium Rate Service (0900) 14.V-Connect 15.International IP services 16.PTCL Webhosting 17.Payphones 18. EVO WIRELESS BRAODBAND: (launched in 3rd June, 2009) 1-UAN (Universal Access Number): UAN (Universal Access Number) consists of 6 digits, preceded by 3 digit code of 111, common to all UANs. UAN operates on existing telephone connection without disturbing normal phone number. UAN never changes, if you move your office or your normal telephone number is changed, your UAN will remain unchanged. UAN can be accessed from other cities by dialing the area code first. 2-UIN (Universal Internet Number): 131 numbering scheme for Internet Service Providers, represents exclusive code assigned to each ISP. Functioning just like UAN-0800 toll-free service, UIN involves allocation of numbers to individual ISPs who are licensed by PTA. This service functions under a single-metering billing system with the promise of rich dividends in terms of customer care. 3-Business DSL: PTCLs business DSL solution provides a reliable, business-class broadband connectivity, which will help the customers to download software and large files, research the web and communicate with their business associates and business partners.

4-Domestic Private Leased Circuit (DPLC): This service is also called even stream/channel stream. for data or voice communication In this service, PTCL provides leased line services to other service providers & corporate customers by establishing a connection between two exchanges. 5-IP Connect: The IP Connect service is based on Internet Protocol Virtual Private Networks (IPVPN), which allows companies with locations spread out in PAKISTAN to connect and transfer data on a private and secure way over reliable robust network infrastructure. 6-ISDN BRI (Integrated Services Digital Network Basic Rate Interface): This service allows the customer to have two connections on a single line. In addition, it allows clearer voice communication plus a faster way to send and receive fax, video images, graphics and computer data on a phone line. You can have a single Tele Plus connection, just like a conventional phone line. Moreover, Customer can go utilize phone line as well as internet at one and the same time. Total bandwidth of the BRI is 128 kbps. 7-ISDN PRI (Integrated Services Digital Network Primary Rate Interface): This service allows the customer to have thirty connections on a single line. Small as well as medium sized clients usually go for this facility to facilitate their internal & external Customers. Business customers can operate their PABX more efficiently while using PRIs. Total bandwidth of the BRI is 2 MB. Call centers operate on PRI. 8-Co-location centers: Pakistan Telecommunication Company Limited (PTCL) has taken the landmark decision to establish Co-Location centers throughout the country. In the first phase, these centers are established at Islamabad, Lahore and Karachi. PTCL has rented out its free premises with ready fitted environment (with AC and DC power) to other Telecom and IT Companies where they have installed their equipment directly.

9-Digital Cross Connect (DXX): PTCL offers flexible and reliable services through a high quality platform of Digital Leased Line Network to organizations, normally to financial institutions (banks).It is meant for data communication only and provides connectivity between two offices. PTCL digital cross connect (DXX) network provides the most dependable media for WAN connectivity with more than 200 Nodes countrywide. 10-CALL CENTERS: International Call Centers: Call centers operate through a 0800 Toll-Free Service, wherein overseas customers' calls are routed to Pakistan or overseas destinations through VoIP (Voice over internet protocol) technology where trained agents are ready to respond to the queries of the customers. This service however involves certain human resource requisites like communication skills and customer handling to be arranged by the subscribers. Domestic Call Centers: Domestic Call Centers also operate through 0800 Toll-Free Service, wherein customers calls are routed to a call center where trained agents respond to the inquiries of the customers. This service however involves certain human resource requisites like communication skills and customer handling to be arranged by the subscribers. 11-Audio Conference: PTCL offers audio conferencing services for SME/Corporate Customers with up to 120 participants per conference. Audio conferencing services are easy to use with interesting billing packages, designed for maximum user comfort and convenience with web integrated interface. conduct virtual internationally. 12-VPN Service: This service allows a private enterprise to have a virtual private network using public network resources, without requiring the installation of dedicated network resources. With the VPN service one can flexibly control the outgoing call 10 Audio Conferencing allows organizations to locally and meetings between clients/customers/staff both

authority of phones by setting the closed group. Moreover, VPN allows making calls on reduced rates on all the numbers on the virtual private network. 13-Premium Services (0900): These services are based on the system called IVR (Interactive Voice Response) .PTCL offers Standard Service and Advanced Service for accessing the service providers with features that are helpful to the customers in customizing their service according to their needs. 14-V-Connect: This service is offered to big organizations in remote areas where V-Connect provides data connectivity in client server mode through dial up process, where the client can be mobile or stationary and the client requires low bandwidth to access the server. 15-International IP Services: PTCL is the largest IP services carrier in Pakistan with extensive international peering capacity. It provides secure and reliable VoIP solutions catering to the requirements of LDIs and other operators in the marketplace. PTCL provides dedicated IPs to other organizations that would help them to transfer data with increased security and connectivity. 16-PTCL Web Hosting Services: PTCL offers world class hosting on windows platform. It provides the control, flexibility and reliability required to create and manage a successful web presence by other organizations. Moreover the self healing backbone of PTCL makes sure the high availability of the customers website. 17-PTCL Payphone: This service operates like a PCO. It is compatible with a call centre solution and generates printed receipts at the end of call at call centre. PTCL payphone provide Wide Area Network coverage, quality service, best speech quality, and reliability.

11

18. EVO WIRELESS BRAODBAND: (launched in 3rd June, 2009) This service operates with Evo wireless broad bands 3 G technology by this customer have the convenience of being able to access by using USB modem and PCMICA card. internet with fast speed

COMPANYS ANALYSIS
Here we will analyze PTCL from its perspective of operation, finance, marketing and human resource.

Operational analysis
Operation is also another important department of PTCL. This is mainly focused to take care of the operations of the company which are supportive to achieve the organizations mission, its goals, and vision of the company. Operational department is working under the supervision of Mr. Mashkoor Hussain who is (SEVP) and three different departments are working in his assistance. And total no of employee in this department is approximately is 45-50. Operation manager decided what should be the product and service for a particular group of people and decided to provide the services to its customers according to the size of the group. PTCL main focus is to expand its business throughout the Pakistan. So the operation manager must have a focus on all over the Pakistan. Operation manager decides from where to take the inventory. And also the after sale service contracts. E.g. repair of telephone connection in case of problem with the telephone connection.

Financial analysis
Finance is also another and main department of PTCL whose main purpose is to organize and manage funds of the company, making balance sheets, income statement, cash flow statement etc. The main head of this department is Mr. Abdul Aleem who is senior executive vice president of finance department under whom three departments works accounts, finance, revenue. The total number of employees work all around in these departments is approximately 40-50. Finance department takes decisions regarding allocation of resources, budget allocation, and finances for the operation. Almost all the current and future financial 12

decisions are taken by the financial executives. Marketing, Human Resource and Research and Development are linked with financed department.

Human resource assessment

It is one of the most important departments of PTCL and its main objective is to make development of a long term policies. It also includes hiring of employees, their training and compensation. So that no one will feel de motivated and devised a pay structure according to the work and on the basis of performance and good governance model in line with statutory requirement and best practices. The main head of this department is the senior executive vice president of HR and Admin department Mr. Shahzad Khan under whom three departments works Procurement, HR and Admin the total number of employees all around in these three departments approximately 40-45. PTCL is largest telecom service provider in Pakistan and its network is all over the Pakistan. And employee peoples from all over the Pakistan so there HR department should perform to maintain smoothly relations between the people with different background and to motivate them differently according to their own perspective. It will take much more time to bring change in the behavior of the people especially after the privatization of PTCL. Employees are de motivated and due to fear of firing out. Although the policy of the new management is to cut the glut of unnecessary workers but majority of the well performing workers are leaving their jobs with PTCL. And turnover ratio is very high. HR department is performing under its full potential and as per the requirement of companys training and development activities over 8000 technical staff has been for sill development refresher courses and over 300 managers has sent for management development programs both within the company and outside the country and provided employment to 403 contract jobs. The HR department maintained good relations with trade union. Though it was a main hurdle in the way of privatization, but dialogues with the union leaders and 25% increase in the salaries maintained a suitable environment for conducting the routine activities.

13

Marketing analysis
PTCL usually practices pull strategy. Before the launching of any product of services or for the issue of share and also tender offer all this is done through newspapers, television, on PTCL websites and also in the business journals. Marketing & Customer Care is also another main department of PTC. Its major purpose is to look after the marketing mix of the company. It maintains good relations with various advertising agencies, business channels and newspapers for the publicity of any new service, or packages to make the public aware. Research and development and customer Care department also work under the marketing department. Customer care is very department of the PTCL because it is telecom service provider and it should focus on employing the humble and nice people to entertain the customer and to satisfy them and solve their problem. And show understanding of their problem. Mr. Shahid M. Haq is there who is working in PTCL as executive vice president of Marketing & Customer Care Department. The total number of employees all around in these two departments is approximately 4050.PTCL advertises its package according to the holy event of eid-ul-fitar. And also no roaming charges for the people who go on Umrah to Makkah.

ENVOIRNMENTAL ANALYSIS
We can make the analysis report on the basis of the PTCL behavior in the competing industry and effect after privatization and its competitor.

Industry and market analysis

If we look at telecommunication sector, then its now at its peak and as the world become the global village, now mobile phone, internet and necessary for daily life. Starting from weather to business information are available through the use of internet. After privatization of PTCL the scope of telecommunication services has increased. If we analyze PTCL then after took over of Etisalat now the focus of new management is to re-structure organization, to reduce the size of employees, and to improve customer care because major chunk of PTCL business is landline customer which is loosing due to wrong policies of customer care department and shifting to wireless technology. 14

If we analyze the telecommunication sector it is very interesting for many reasons. Firstly almost all the telecommunication are kept limited within certain parameters to avoid the conflict. e.g. CDMA was operational within certain area and outside that area it can not work. This policy is adopted just to protect the GSM Industry. Today after 3years to the launching of WLL in Pakistan, as on June 2009, 2.43Million WLL subscriber are in Pakistan. PTCL V is the leader with a market share of 59%. TeleCard has 23% of the market. Worldcall Telecom has 15% share of the WLL subscribers. Great Bear International Services (Pvt) Ltd (DIALLOG) has 3% share. Even though Diallog is a smaller player, it has been praised in blogs because of its good customer service and it has higher revenue per user (Rs. 600) than other companies. Since then, we have been seeing a gradual decline in the revenues of that company this is where PTCL shows that it has realistically a large scale and a huge experience base to be competitive among other companies.

Competitor analysis
Here in this part we will analyze the firms which are competing with PTCL product and services. Although at the start PTCL possess monopoly but with the privatization of PTCL now there are no restriction for establishment of private network in competition with PTCL. And competition exists in all the products. Major competitors 1. PTCL Land Line Connection (Still PTCL is enjoying monopoly because any other company has not yet established landline network). 2. Ufone( against Ufone, the major competitors are Mobilink, Paktel, Warid, Telenor) 3. V-Fone( major competitor is dialogue vire less connection). 4. Broadband Internet Service Provider ( competitors are Cyber Net, Sky Net, Brain net, Digicom, Comsats, Info link and many others). Their market shares In terms of market share, PTCLs declined from 64% to 59% over the last couple of years but still dominates the segment. Telecard, the first company in the private sector to explore the WLL segment, has a market share of 23% while Worldcall

15

holds 15% of the market. Although competition has begun to heat up in the sector, we believe the market has enough room to accommodate existing operators. Their goals 1. Management of PTCL aims to change the mind set of its employee to increase the shareholders wealth maximization. 2. Aim to satisfy the need of its clients. 3. Aimed to remain on the top of all the telecom services providers. 4. To provide service to its customer all over the Pakistan.

PTCL strategies Now the management policy is to reduce heavy employees force and to minimize the operating cost. The companys new business corporate policy is more on costumer satisfaction side rather on internal management benefits. The company is likely to gain more business share from the market. Similarly the new management of the company want to maintain steady and smooth relations with the trade union of the employees. Because strikes from the employees trade union cause a loss to the company and hinders companys growth. New management is now more focused on shareholders wealth maximization. And another main focus is to introduce latest technology to increase its operating capacity. Etisalats are more focused to bring again PTCL once again in the growth phase and profit earning organization. As per the agreement with the government of Pakistan it has stopped the internal privatization of employee till June 2007 but in the long run it will reduce the huge number of employees to achieve cost efficiency. PTCLs main competitor is Wateen Telecom, parent company of Warid Telecom. And PTCL has kept Ufone still with it to compete with the GSM competition of the other cellular companies like Warid, Telenor, Mobilink, and Paktel.

Technology analysis
Technical methods that affect the industry If we analyze PTCL in its old perspectives than we see that majority of work is done manually. As globally the use of computer has increased now almost computer is primary part of each and every organization. PTCL is also using latest and up to 16

date technology to curtail the competition. For instance, in the starting of PTCL majority of the work is done manually which is time consuming. But now all the records and transaction are done on computer and record of each and every transaction is stored. I worked with PTCL for two months and I have found that majority of the financial task are done at MS Excel. In order to achieve its maximum efficiency PTCL must have to use customized software for efficient working. And now recently as a part of management training program employees are offered SAPs courses. This step will definitely enhance the efficiency of the organization. Secondly, PTCL is a service based industry. And it must have to satisfy its customer in order to service. But majority of the people are complaining when they have to deposit PTCLs telephone bill. To facilitate them PTCL management has decided to install its own kiosk where customers can deposits their utility bills round the clock and there have not to stand and wait for long hours to deposit their bills. Innovation PTCL has taken certain initiative and their main purpose it to retain its market share. PTCL is the only integrated fixed line telephone service operator in Pakistan and is providing a wide range of services. And recently PTCL decided to provide with the capability of providing a wide variety of portfolio of white Label Services. And the purpose is to provide the wholesalers and operators their services under their brand. The white label approach ensures that our carrier and value added service providers are able to react to changing market dynamics quickly and offer bundled services to their target segments in a cost effective manner without investing in network or other elements of infrastructure. As PTCL takes away the challenges faced by niche operators in managing networks, they can readily focus on customer services, product management and sales and marketing functions to ensure that their products are successful and are able to satisfy market needs.

17

MY EXPERIENCE WITH PTCL

I have done internship with the MM&BB department of PTCL. It was a wonderful learning experience. PTCL has a very efficient and effective MM&BB department. My learning from my 6 weeks internship is narrated below.

18

THE OVERVIEW OF MM&BB DEPARTMENT:

19

20

Task Performed in MM&BB department during my internship period of 6 Months 1) Assist in administration of Broadband Student Package. a) Provisioning of Institute registration Forms to the concerned Institutes. b) Verification of Institute registration Forms from the concerned regions. c) Addition of verified institutes in B&CC to be visible to our call centre team and online form for the visibility at customers end. As the institute is updated they can check its visibility at our website. d) Provisioning of Administrators rights to the Student Package Administrators. 2) Coordination with B&CC and Call Centre teams to resolve issues

pertaining to Student Package.

3) Compiling regional POS requirement and ensuring timely POS delivery

to the regions through MARCOM. Each region is called individually till they confirm the receipt of the said material.
4) Monitoring of regional BTL marketing activities and its effectiveness.

The Customer facilitation Camps( CFCs) etc.

5) Updating in- hand inventory Level of Modems from the Regions time to

time.The regions are called weekly to get the modems status from that.
6) Coordination with the BNCC for the provision of IPTV and Broadband

data for the analysis/promotional purposes (SMS etc

The MM&BB department covers the following major areas: The Multimedia and Broadband department is the fastest growing Broadband and the Smart TV. Service provider in the country. A brief description of MM&BB is explained below 1. MULTIMEDIA & BROADBAND Key activities of Multimedia & Broadband: Manage internal teams for IPTV & Broadband content management. Oversee operational & commercial activities including: Risk management & mitigation; 21

Product development and packaging/tariffs; Market / Business intelligence and analysis; Commercial & financial management

Sub areas of Multimedia & Broadband: Content Management Coordination & Control Commercial planning a. Content Management: Manages IPTV & Broadband content buying Manages IPTV & Broadband content development Manages IPTV & Broadband content control MM&BB Regional Team Multimedia Broadband Department is divided in to the following regions across the country and is leaded by a Senior Manager in each region as shown in below Regions LTR N LTR s CTR NTR 1 NTR11 FTR STRI MTR WTR ITR GTR RTR HTR Karachi I Auhorized Person Amir Mugheez Mr.Muhammad Ilyas Mr. Ashraf Baig Mr. Badar Zaman M Isa Khan Mr. Munawar Ahmad Khan Mr. Nayab M. khan Mr. Ajmal Khan Mr. Abdur Zahir Achakzai Nadeem Akhter Awan Mr. Tariq Siddique Mr. Ilyas Qureshi Moued-Ul-Islam Mr. Azam Khan Designation Senior Manager Senior Manager Senior Manager Senior Manager Senior Manager Senior Manager Senior Manager Senior Manager Senior Manager Senior Manager Senior Manager Senior Manager Senior Manager Senior Manager

22

Karachi II Sukkur

Mr. Niaz Sheikh Mr. Abdul Hakeem Ghunio

Senior Manager Senior Manager

IDENTIFICATION OF MAJOR PROBLEMS

While talking to the employees of PTCL and while doing my internship there, I could identify Following Major Problems with the organization.

Falling revenue
PTCL revenue has been continuously falling during the past few years. The reason for this, as mentioned in the PTCLs annual report, is claimed to be the Voluntary Separation Scheme (VSS) introduced by PTCL where the employees are being encouraged to retire before time and they are offering high compensations for those who exercise VSS.

Job Security
In the past, PTCL has been encouraging the old employees to change their status from Permanent Employees to Contract Employees. This resulted in one major chunk of existing permanent employees to be converted to Contract Employees, and another major chunk of new recruits to be hired as Contract Employees. This resulted in giving PTCLs management leverage over the existing burden of employees and they had started firing the contractual employees to lay off the burden. This resulted in employees feeling insecure about their job. Hence, the operations of the company were drastically affected.

Bureaucratic Culture of the Organization:

As we know that PTCL was started as a government organization in 1947. Since then, it has developed itself as a purely bureaucratic organization. Even after many efforts that are now being made to change the organization to more flexible and efficient organization, the PTCL has remained its mark of being bureaucratic. Most of the efforts have rather proved to be drastic because all such efforts have increased the feeling of alienation of employees towards existing and new employers.

23

Loss of Market Share:

Due to the entrance of mobile telecom companies in the telecom regime and due to their latest technology and highly competitive pricing, the PTCL has lost its once existing monopoly over the telecom sector of Pakistan. The share of PTCL is continuously decreasing. Apart from the break of monopoly, there are several other factors contributing to the decrease of the market share of PTCL.

High technical staff turnover:

A huge chunk of most experienced technical staff was broken away from the company by other competitor telecom companies. To add fuel to the fire, the VSS that was introduced to lay off the burden of employees actually resulted in losing the cream, or we may say the back bone of the telecom industry i.e. the technical staff.

MAJOR FINDINGS ABOUT THE PROBLEM

With thorough study, observation and discussions with my immediate bosses, I have identified certain factors that are causing the problems to occur. 1. One of the major reasons for the revenue to fall is the companys strategy. Considering itself to be the former monopoly holder and considering itself to be the biggest telecom giant PTCL is only following price and quantity strategy. Focusing only on the price and quantity of the product is not the best policy in the current age where the customer is aware of the market and its nit gritty. 2. The VSS scheme was recklessly made ignoring the fact that this may also cause the loss of important employees. An in depth study shouldve been conducted before launching such a scheme and a discriminated scheme shouldve been launched encouraging only those employees who were not of the interest of the company and discouraging the employees who were important to the company to avail the VSS. 3. The new administration was focusing only on the revenue of the company, completely ignoring the feelings, emotions and perceptions of the employees about such new administration. The first impression the new administration

24

gave to the employees of PTCL was not as such pleasant this has created a gap between employees expectations and employers expectations ultimately resulting in employee dissatisfaction. 4. The loss of market share was occurred due to 2 major factors. First reason was companys less interest in the innovation and second rather more important reason was that the companys loss of technical staff resulted in delays provisions of products and services to the customers and delays in rendering to the complains of the customer. That is why most of the customer has switched to other alternatives. 5. The staff turnover itself, was due to inappropriate HR policies. The company ultimately failed to provide satisfaction to the employees and hence the employees ultimately left the organization.

CONCLUSION AND RECOMMENDATION:

1. The company, in its product development strategy, should also focus in product innovation and product quality. 2. The company, filled. 3. The company, in its employee value and retention strategy should focus on the motivation of the employee and it should device strategies that would develop a sense of belongingness of employees towards the organization. 4. All the employees should be treated equitably according to their ranks and designations in the organization. It was observed that two employees of similar ranks had totally different offices i.e. the facilities, comfort and hygiene that is found in one office cannot be found on the other employees office, and however both the employees were of similar rank. That increases the expectancy gap of the deprived employee and he is ultimately de motivated. in its customer retention strategy, should keep into

consideration that the complains and orders of the customer should be timely

25

5. As PTCL is still the highest revenue earning telecom company, the employee packages , training and development programs, and other perquisites should be healthy enough that can motivate the employee to stay in the company and not to leave it at any cost. 6. As already mentioned, the administration should conduct seminars, concerts and family dinners to enhance the understanding between the employees for different departments as well as the employees within a similar department. That will lead to a friendly environment and people will informally make self managed teams. This is how we can cut the roots of long existing bureaucratic culture. 7. Lastly, I would like to suggest that the old building should be renovated and the Central Air Conditioning system should be overhauled. The organizations outlook really reflects its expectations. If the look of organization is old, than there is a chance that it could create the perception in the mind of customers and employees that the organization is outdated.

26