An Introduction:

Mobilink GSM (PMCL), a subsidiary of Orascom Telecom, started its operations in 1994, and has become the market leader both in terms of growth as well as having the largest customer subscriber base in, Pakistan - a base of over 24 million and growing. We pride ourselves on being the first cellular service provider to operate on a 100% digital GSM technology in Pakistan that also provides state-of-theart communication solutions to its customers. Mobilink offers exclusively designed tariff plans that cater to the communication needs of a diverse group of people, from individuals to businessmen to corporate and multinationals. To achieve this objective, we offer both postpaid (Indigo) and prepaid (JAZZ) solutions to our customers. Compared to our competitors, both the postpaid (Indigo) and prepaid (JAZZ) brands are the largest brands of their kind in the Pakistan cellular industry. Mobilink provides the most extensive network coverage footprint across Pakistan through an integrated technology infrastructure in more than 5,000 cities, towns, villages, and countless remote destinations, including International Roaming in 110 countries through 300 partner operators. The company directly employs over 4,000 people and has the largest distribution network with 200,000 outlets across Pakistan. Mobilink corporate social responsibility program contributes significantly in key areas of health, education, social uplift and cultural development causes in Pakistan and the company is the official cellular service of the Pakistan Cricket Board. Mobilink is the only corporate in Pakistan to issue a 'high-yield' bond worth US$ 250 million in the International Market and has portrayed a positive image of the country as a secure destination for business activity.

History of Mobilink Mobilink started its operation in 1994, and till early 2001, had a market share of 43%. OT took over management control of the company in April 2001 and changed the overall market dynamics through its aggressive marketing strategy and expertise. In less than two years time Mobilink grew by almost 400% with market leadership of 53% market share (year end 2002). Mobilink was the first cellular service provider in Pakistan to operate a 100% GSM technology as both existing operators employed AMPS technology. During the year 2002, Mobilink has progressed by leaps and bounds. Mobilink started the year with 416,832 subscribers and 43% market share. With a successful mix of strong brand image and sound financial status, Mobilink closed the year with cumulative subscriber base of 952,174 subscribers. Mobilink ended the year with a record breaking sales performance of 120,996 sales during the month of December. This was the best possible way to end a year that is filled with numerous other achievements.

MOBILINKS VISION: To be the leading Telecommunication Services Provider in Pakistan by offering innovative Communication solutions for our Customers while exceeding Shareholder value & Employee Expectations.

MobilinkReshaping lives!

Mission To be a superior communications service company in Pakistan, which provides the best value to its customers, employees, business partners and share holders.

Achievements ISO 9002 Quality Management System Certification for Billing, Engineering Departments and CS Contact Center Implementation of a full Intelligent Network (IN) platform from Siemens for the prepaid platform. Biggest Call Center in Pakistan, which is there to assist the customers 24 hours. Only cellular service in Pakistan to provide coverage on the M2 motorway.

Bilateral roaming agreements signed with 61 countries around the world to have true roaming service operational in 151 operators of the world. MOBILINK GSM's Short Message Service Center allows Vehicle Tracking and Fleet Management services that are being provided by Tracker (Pvt.) Ltd., under the brand name of CTrack, a

company licensed by Pakistan Telecom Authority (PTA). Tracker currently operates from Karachi but can provide these facilities at all those locations where GSM coverage is available

Shareholders Motorola International Development Corporation Ray shields Investments Limited International Wireless Communications Pakistan Limited (IWCPL), a consortium between: 30% 11%

Orascom Telecom Asian Infrastructure Fund (AIF)

39% 20%

Market Size Total size of cellular market is approximately 2 million in a country of 144 million people. Hence, the market penetration is only 1.4%; this clearly demonstrates the potential in the Pakistani market.

Mobilink being the market leader enjoys 53% share of the overall market with both Star and Jazz dominating the postpaid and prepaid segments respectively. Star with cumulative subscriber base of 146,707 enjoys over 60% of the total postpaid market, while Jazz has over 50% share to its credit in the prepaid domain with 805,467 subscriber base.

Customer Segmentation Like most emerging mobile markets, Pakistan is also a prepaid-driven market and the industry-wide sales mix normally consists of 85% prepaid. Similar results are seen from purchase intention data from potential mobile subscribers. In the year 2002, Mobilink has set new standards and achieved many landmarks between the postpaid and prepaid brands and offered innovative Value Added Services. During the year postpaid sales were supported by handset leasing program that helped maintaining adequate postpaid sales. Value added services were branded as Power Tools, and given extensive media support to enhance usage and corresponding revenues - the resultant impact has been very positive. New and innovative SMS and IVR based products were introduced during the year and contributed towards the revenues. Mobilink now offers International Roaming with 155 operators, including Thuraya Satellite. In July 2002, Jazz launched unique Door-to-Door education/sales activity in Karachi Metropolitan, which is the largest city of Pakistan and business capital. This activity lasted for two months in which trained representatives paid visits to the potential buyer at the convenience of their home, covering approximately 100,000 households in the lower-middle income bracket.

Mobilink plans to introduce limited GPRS during 2003 and will be offering services like MMS on this platform in order to strengthen its technology leadership.

Brand Structure Mobilink provides umbrella branding to both of its major brands, Star (postpaid) and Jazz (prepaid). Mobilink has the highest Total Spontaneous Awareness in the industry of 90%, followed

Market Indicators Mobilink reported strong operating profit growth as it continued to realize benefits from the acquisition and retention of high value customers and the continuing focus on cost efficiencies. This is reflected in a 74 % increase in revenues, and a 142 % increase in EBITDA. Blended ARPU for the twelve months to 31 December 2002 reached US$ 16.5 compared to US$ 21 for the twelve months ended 31 December 2001. Blended churn for the twelve months to 31 December 2002 reached 7.4% down 11% compared to 2001. This was the result of the ever increasing effort of Mobilink in increasing its subscriber base, its increased effort in emphasizing the brand recognition of Mobilink, while at the same time retaining its older customer base.

Mobile Operators Mobilink started its operation in 1994 as a third entrant in the market, while Paktel and Instaphone were already operating since 1991 and had acquired substantial market penetration. Despite the re-launch of Ufone, the main competitor, Mobilink has maintained its momentum of growth. All this has been possible due to inter-departmental synergy and strengthening of Mobilinks brands.

Network Coverage Mobilink is the leader with digital coverage stretching across 120 cities of the country through nearly 355 cell-sites; this wide network that covers 85% of the urban population is supplemented by extensive International Roaming in 63 countries with 155 operators worldwide to broaden the connectivity horizons.

Sales Strategy Mobilink is the first cellular operator to introduce the franchise concept in the cellular industry in Pakistan, and currently operates the largest franchise network in Pakistan with over 100 franchisee/national distributors (dealers operated service centers). In order to extend its reach even further, Mobilink worked with its franchisees to develop a network of over 300 sub-dealers; these operate as Points of Sales (POS) only and are branded Mobilink Connect. Each franchisee is adequately equipped to process sales, collect bills and offer other customer services. All franchisees have trained sales and service staff, fully capable of tackling sales challenges. Additionally, JAZZ scratch cards are easily available across urban Pakistan through 8500 retail outlets. Social Responsibility Mobilink has initiated a continuous social effort towards the growth of social sector and development of sports in the country. Mobilink sponsored PIMS (Pakistan Institute of Medical Sciences) Childrens ward and has committed to carry forward the program in the future as well. In sports development, Mobilink has been actively supporting SAF (South Asian Federation) Games with a commitment of encouraging sports and healthy activities among younger generation of Pakistan. Such programs will help Mobilink in associating with the consumer and build long-term emotional relationship as a good corporate citizen of Pakistan.

HR Functions of Mobilink

Human Resource

Staffing & Compensation

Organization Development

HR Operations

Project Management Office

Basic role of HR department in Mobilink Mobilink is the largest telecom company of Pakistan because it has managed to attract the best professionals in the industry. In addition, these team players understand their roles and execute their duties in a way that eases the ride for other team members. To achieve this perspective HR department has to play the major role and it is the role of HR department to attract, retain, develop and sustain the top notch work force. This is the first approach regarding the basic role of HR department in Mobilink. This approach is practiced that give the results of hiring the best and performing on the edge. Second approach is that HR department is responsible to maintain internal equity by having

standard in term of competition while interacting with market forces (economy and political scenario). HR department plays a vital role in the success of Mobilink as performance of organization is based on the performance of people. The above mentioned approaches are the key concepts being practiced in HR department of Mobilink.

ORGANIZATIONAL STRUCTURE OF MOBILINK: Although all the departments in an organization play vital role in achieving the overall all goals and objectives of that organization yet the major departments are as follows: Marketing department Customer service It department Treasury department Finance department

ORGANIZATIONAL CHART: Chairman and CEO

VP and CFO

Executive Director

Chief Officer Co-ordination

General Manager Marketing

General Manager IT

General Manager Finance

General Manager Admin & PO

Recruitment Mobilink has a separate department for staffing. This department is responsible for taking all the hiring decisions for the company. They practice different policies regarding recruitment and selection. One of their policies is that hiring the top notch professionals from industry and based on their performance, increments are made.

Sources for recruitment:

Employee referrals is the basic source of recruitment. 90% of the employees are hired through reference. Other methods for recruitment are also used but major source is reference. Others may include Advertisements, Job fair, University Graduates and agencies also. But major chunk working in Mobilink is there due to reference. For recruitment mobilink use different models. First of all they use Advertisement Method they give adds on web sites and in news papers References Job Fairs Student Profile Book they get resumes of all fresh passed out batches

SWOT analysis of recruitment process:

Basically Mobilink hire from reference so SWOT analysis is based on this source. What they lose due to this source and what are the advantages of this source are discussed below:

Strengths: the employees motivation to make a good recommendation the availability of accurate job information for the recruit Employee referrals tend to be more acceptable applicants, to be more likely to accept an offer and to have a higher survival rate.

Weaknesses:

the possibility of friendship being confused with job performance the potential for nepotism the potential for adverse impact

Opportunity: In the current market scenario, if somebody knows any talented people in other organization, they can be snatched due to reference. Retention is easy as they will not leave the organization due to the reference already working in Mobilink. As it will bring a bad name to that person too. Threats: Some talent could be missed due to not having any reference in Mobilink. Due to reference, hiring can be biased and competitors can attract more talented people.

Job description: Proper job description is designed for every job and provided to the employee. Two job descriptions are attached as sample.

After getting all these information from different resources they hand over or send it to the concern

department. The department login the account where all the information is available they check all the resumes and short list the potential candidates among them. In next step they conduct initial interviews, from these interviews they again shortlist some more candidates. They call the short listed candidates for further process.

Selection: For selection mobilink use a proper way of selections:

Initial Interviews Written Tests Personality Tests Psychometric Test Final Interviews

In selection method they use two types of hiring. Direct Hiring Indirect Hiring

Direct Hiring: They use different tests. They apply different psychometric tools to select the potential candidates. In selection they use XYZ tool. In that tool they give different questions with 1, 2 or 3 answers to the candidate and candidates have to choose one number for the answer and then they give scoring to their answers. They have specific system to get the results of this test with that specific system they got the exact answers. This test has 60 to 70% of importance to choose the candidate. And left 30 to 40% is for all interviews and different tests. This kind of hiring they mostly use for the selection of higher management.

Indirect hiring: This type hiring they have to use for critical position. If company requires someone immediately for some specific job or some business requirement. The company goes to the third party (some kind of references) or they can give a better package to a good working employee of some other company.

Hiring of Lower Staff: Hiring of lower staff is mostly on just their CVs. They just get good CVs shortlist them and after a casual interview they hire the candidates.

Performance and Appraisals

In Mobilink they have annual appraisal system. Two years back they were using manual system for performance and appraisals. The employees give the hard copy of whatever they have done in a year. And now their system for performance and appraisals has been changed. Now they have complete online system for this process. Rating satisfactory improvement addition objective, where they maps annual appraisal.

They use values of Business Excellence Customer Satisfaction For both the types they give 5 questions and score the questions, put the answers in the access tool which gives them accurate result for the employee. They have rating and scoring method on back hand.

Self Appraisals Then there is another form which employee has to fill by himself if whatever he has done in the year for the betterment of the company. Then it goes to 1st line manager for checking and approving. After his approval the application again goes back to the employee

Training and Development For the purpose of training and development Mobilink takes the decision of training after applying three main steps to check the need for training and a proper way to adopt for the purpose of training. The three main steps to be followed to take the decision that how much the decision of training were valid and how beneficial it was for the organization are; TNA (Training Need Access) Development Evaluation

The competency based Training Need Analysis is divided into three parts: Core The core analysis is to be done for all jobs, grades and departments. Managerial This type of analysis help company to check the managerial skills of the employees which are working on management level.

Technical Technical analysis is to check the job related skills of employees. It is mostly done in IT department.

In all these three types of analysis the employees have to fill the online applications and for this they give 5 levels to each. After getting the applications filled by employees they check the current level of employee skills and required level. Now the gap between current and required level is called Gap and the analysis for this gap is called Gap Analysis. Then they get information from all the departments from all the departments of their company. Then they check the required levels of training in different departments and highlight them. The company design trainings according to these levels.

Training: There are two types of training that mobilink opt. In House Training In this type of training the company use their resources to train theur employees and get their personal trainers.

Trainers The company hires the panel of trainers for the purpose of training. They keep the CVs saved in their records and call them according to the need of training.

Public Training Program There are two types of public training programs.

Local Programs For local programs mobilink gets help from different local institutions to train their employees. Their names are; 1. LUMS 2. PIM (Pakistan Institute of Management) 3. Navites 4. MDI (Management Development Institute) 5. Golf Stone International Programs for international training mobilink get assistance from; 1. Euro Matech

2. Insead in France 3. Informa in UK

Development This phase emphasis on the design of the training program. Mobilink design training program in such a way that it should be helpful for the employee as well as motivating. They make sure that program is according to the need of individual and requirement of his job done in mobilink. They mostly give training in specialized fields to make their employees more skillful in their specific job.

Method of Training There are two methods to be followed by any organization to train their employees; Informational Method Experimental Method

Mobilink use both the methods to train their employees. They have made these models for their employees because they feel that both the methods are helpful to get knowledge from the trainer as well as they can share their ideas with each other while working in artificial environment.

Evaluation Finally after the process of training they check wither the goal or objective of the training has been accomplished or not. The types of criteria to check the accomplishment of objective of training are; Reactions of Trainees Learning Change in Behavior The Results Return on investment Utility Analysis

Compensation As compensation Medical Insurance is given to employees of mobilink by Adam Jee Health Insurance. Between the band of 40,000 to 80,000rps depending upon the rank or grade of the person. Hospitalization is given between 10,000 to 50,000