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EXECUTIVE SUMMARY


This project has been undertaken in order to highlight the Human Resource Practices of “Ufone”. It’s all about YOU its all about “Ufone”, a company very highly spoken of these days. A company paying more attention to its customer’s delights rather then the customer’s satisfaction. Ufone is a company starting from scratch and has shown utmost performance in the last seven years. Ufone owes its success to its employees believing that providing employees with job satisfaction motivates them to work hard and provide better results.


Company Introduction


Ufone PTML is a wholly owned subsidiary of PTCL established to operate cellular telephony. The company commenced its operations, under the brand name of Ufone, from Islamabad on January 29, 2001

During the year, as a consequence of PTCL’s privatization, 26% of its shares were acquired by Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of Ufone has also been handed over to Etisalat. During the year July 2005 to June 2006, Ufone continued on the path to success. The Company further expanded its coverage and has added new cities and highways. Ufone has network coverage in more than 3475 locations and across all major highways of the country.
Ufone currently caters for International Roaming to more than 200 live operators across 121 countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia, United Kingdom, United Arab Emirates, Singapore, Portugal, Thailand, Cyprus, Bangladesh, Uzbekistan, Tunisia and Kuwait with lowest rates, featuring no security deposit and activation charges. GPRS Roaming facility is available with more than 100 Live Operators across 80 countries. 
Mission Statement

To become the best cellular communication option available in the country for “u”.

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Vision Statement
In order to evolve with our customers and to keep pace with your needs, we rejuvenated and revamped our image by changing our visual identity. At Ufone we understand the value of words and the need to communicate effectively and efficiently at all levels of society, which is why our primary focus is on U, our valued customers bring strength to our company. 
With a fresher look than is accepted and appreciated across the board by people of all ages, we aim to connect with you and provide you state of the art services. No matter who you are, where you are, what you want to say, how you want to say it or how you feel, you are our focus. Because at Ufone, it’s all about U,
Services line of Ufone
There are two basic products of Ufone “Ufone Prepaid” and “Ufone Post pay”. Both of these products are available at their franchise for public.
Prepaid
Post paid
COMPANY ANALYSES

Structure of Ufone

When a company wants to compete in innovation, it needs to maximize flexibility. Flexibility is maximized by aggregating work into larger, holistic pieces that are executed by teams of higher wages, high skilled workers. Giving the units their own support systems and decision-making authority to take advantage of local opportunities in regional or specialized product markets also enhances flexibility.
(click on the following image to enlarge) 
Ufone-Organogram 
Keeping in view of all these factors the structure of Ufone is designed i.e. the overall Structure of the Ufone is Divisional (More flexible and innovative). Mainly Ufone has four regions and within those regions the structure is functional .The decision making authority is centralized at the top but within the regions it is decentralized i.e. regional heads have to inform top management before making any decision.
Division of branches geographically (Location)
This is what Ufone looks from the organizational hierarchy point of view. There are eight different departments each headed by a Project Director. They report directly to the CEO. There are four BU (Business Unit) each Project Director is responsible for these eight divisions. BUs are divided geographically into three divisions
F BU North (Peshawar to Jehlum) Islamabad (Head Office)
F BU Central-1 (Gujranwala till Sialkot)
F BU Central-2 (Multan till Rahim Yar Khan)
F BUM South (Sindh and Balochistan)
Departmental Division
In order to give a jump-start to the company, a comprehensive initiation plan has been made along with aggressive customer acquisition, care and retention strategies. Ufone has the best integration of eight departments each project director.
F Engineering
F Administration
F Business Analysis
F Marketing & Sales
F Customer Care
Human Resource
F Finance
F Information Technology
Provision of quality service to the customers is of utmost importance for the progress of any service-based company. At Ufone the management is mindful of the same and has been constantly endeavoring to enhance the existing facilities. Therefore operations at Ufone are all planned and carried out in such a way so as to maximize operational efficiency, customer satisfaction and employees motivation.
Although it is the subsidiary of the Pakistan Telecom Company Limited (PTCL), Ufone carries out its operations autonomously under the license of Pakistan Telecom Mobiles Limited (PTML). The company head office is established in Islamabad (F-7 Markaz), which serves as the center for all its strategic activities.

Human Resource Department at Ufone


UFONE considers their employees to be the asset of the company, so in order to retain their employees following practices are followed in the company.


HR PRACTICES
F Recruitment and selection
F Orientation
F Training and development
Compensation and Benefits
Performance Appraisal

WORK FORCE
HR at UFONE is divided into the following two major categories
  • Permanent Employees (1500-2000 Approximately)
  • Outsourced Employees (2000 Approximately)
Permanent employees

HR Permanent employees are further divided into following two categories.
  • Operation
  • Training and Development
Operational Department
It covers all the areas including hiring recruitment, selection and payroll etc. HR operation team manages all the employee activities gathers all the information and make use of it for further processes. 

Training and Development
HR team of training and development make a performance evaluation of all the employees and the see where the gap occurs between the actual performance and the desired performance. Then training is designed for area which needs to be improved. On the job and off the job both the trainings are given according to the need of the employee.
Employee Benefit & Compensation
F Training & Development
F Employee Motivation
F Retention of Employees
F Career Planning/ Succession Planning
F Employee Relations/ Communication
F Employee Awards
F Employee Events Management
F Medical & Life Insurance
COMPENSATION AND BENEFITS

Ufone follow the performance base pay structure and pay for their performance and work output.

Compensation
The total returns which an employee gets against his or her work.
It maybe:
Employee Health Plans 
Employee Insurance 
Employee Leave 
Employee Retirement Income Security Act 
Executive Compensation 
Maternity & Paternity Benefits 
Pension & Retirement Plans 
Wages & Salaries 
Workplace Programs 
Compensation strategies are usually market based and is linked with the performance with a greater emphasis on variable pay. Salary adjustment is based on the performance, market movement and internal/ external equity adjustment. Revision of compensation is based on total pay and monetization of benefits. 

Levels of Ufone:
Hierarchy
  1. C.E.O
  2. V.P
  3. G.M
  4. Senior Manager
  5. Manager
  6. Assistant Manager
  7. Senior Executive
  8. Permanent Executive
  9. Outsourced Executive
  10. M.T
Individual Salary Fixation:

The Ufone seeks the market trend and try to compete with market for individual salary fixation but they also analyze their own financial positions and budgeting, it also varies from department to department.
Current Base Pay: (Job Based Structure and competitive)
The Ufone follows the job based structure, and compensate its employees for the work they have done, for their tasks and duties they performed, their work content, behaviour and for their responsibilities.
To develop this structure Ufone conducts some surveys, to compete with others in the same industry.
Work Analysis
Evaluation & control
Market trends
Employee J.D
Surveys
Policy Lines
Total Compensation:
Example: 
60% Basic Pay 15-k
30% House Rent 7.5-k
10% Utilities 2.5-k
OPD 2 Gross salaries
Hospitalization Employee siblings, Parents, Wife / Spouse and children’s
Provident Fund 50% Employee, 50% Org
Gratuity If work for 10 Months
Bonuses 1.4% Of Gross salary
Incentives Only Sales department depend upon their performance.
Assistant Manager Level:
25000 Car allowance + 200 Liter’s petrol / Month
Manager level:
Car + Blackberry
Senior Manager:
Islamabad Club Membership + BMW Car + House + Foreign Tours
Further Ufone has developed some grades for employees.
clip_image001A H
A is the minimum grade and H is the maximum grade and they compensate their employees on the basis of their grades.
Grade A 500 minutes + 500 Rs mobile usage. Same like this all other benefits.
After every Two years Ufone give the amount of Rs 6000 to lower level employees if they want to purchase a new mobile and this limit increases as grade increases. At each stage the amount is different.
Food Subsidy:
S.E, Exe, M.T so on
Rs 65
Rs 95 Company
A.M and Above
160 RS
Increments:

The increments are totally based on the performance of the employees and their seniority level.
If the scale is 15000-20000 then the increment is the 20% of the base pay, but if any employee shows the performance then this may increase up to 35% to 50%.

Managers: Innovative ideas
Silent Warriors



Recognition of The work:
On Jan 29 (anniversary of Ufone).
Employees who is working in Ufone for seven years or more then seven years gets Cash Rewards, Trophy, badges and other things.
Leave fair assistance 
1 year 20 holidays 1 Gross salary
40 leaves 2LFA’s
Permanent Employees:
Number of employees:
Around 1500 – 2000
Minimum scale starts from 15000 – 20000
Maximum C.E.O (Not disclosed by the organization)
UFONE focuses on providing a large number of the compensation and benefits to its employees in a form of the following categories: 

Minimum wage: The minimum salary for “Drivers” is Rs.7000 for “Tea Boys” it is Rs.6500, for Administrative Staff like HR, Finance, Marketing, etc it is Rs.20000 and for Engineering it is Rs.20000 to 25000.
Medical Allowance: 1 gross salary per year is given to each employee; half is given in mid of the year and remaining half will be given at the end of the year.
Health Insurance: Like all other cellular companies Ufone also provides health insurance policy to its employees.

Loan Insurance: At Ufone loan insurance policy is also provided to their employees through banks.
Transport allowance: Rs 2500 are given to female employees only, if they travel on local transport.
House Rent: 10% of the basic salary is given to each senior/ executive level employee. 
Overtime: All employees are entitle for the overtime more then 130 hours per month .For overtime UFONE have specific formula that apply on the employees gross salary, due to which every employee have different per hour overtime rate.
EOBI: EOBI is contributed as per the standard
Children Education allowance: 1 gross salary per year

Provident Fund: All permanent confirmed employees are eligible for membership of Ufone Employee Provident Fund Scheme. An employee contributes 8.33% of month basic salary in a year and an equivalent amount is being contributed by the employer.
Leaves: 7 Casual and 10 sick leaves are given to each employee at all level.
Travel Policy: Revised and categorized different levels such as the senior level, the middle level and the junior level staff.
Meal deduction Claims: Meal books are to be maintained of each employee who issues it, their name, employee number, designation, signature and number of book and date at which it is issued has to be recorded. The reason for maintaining the record is that the company pays 60% of the expense came over the food while 40% has to be deducted from the employee’s salary.
Expense Claim: The expense Claims are the expenses which an employee make on the behalf of the company E.g. fuel used for business travel, overnight stays on a business tour etc, such claim are made while returning back to the office , after the whole process the HR pay them back the next month along with their salary.
Overtime Claim: If an employee has worked for more than the regular time, they claim for the overtime amount other than their salary which they receive the next month. Overtime claim have to be approved through HR department.
Medical Claim: Different medical facilities are provided to employees at different level of hierarchy, so if any employees make use of this facility they can claim for the amounts to be return next the month while submitting the hospital receipt. Their medical clearness is done by the HR department.
Mobile deduction Claim: Such an expense claims which are made if an employee has made long duration call for the official purpose and they have exceeded the limit given to them then they can make a claim by attacking a copy of mobile bill and if its valid then HR department approved it and pay the employee their claimed amount along with their monthly salary of the following month.
Dispatching of Salary Slips: Vendor prepares the salary slip and dispatch it to the HR department, further HR head office send it to the regional HR departments their concerned employees salary slip and they either give their employees through cash or transfer to their accounts. 
Salary Surveys
Collections of salary and market data, it includes average salaries, inflation indicators, cost of living indicators, salary budget averages. Ufone conducts its own market survey and match its standards with other telecommunication companies specifically with Mobilink and telenor.
(Research firms and personally)
Job Evaluation Method

The job evaluation method of Ufone is lined to appraisal system. Whenever the appraisal report of any employee is generated he is being paid according to his performance. The job is evaluated on the basis of appraisal reports. If any post is vacant those past performance on that post is evaluated and the market conditions are observed and then the job is evaluated. The value for the job is concerned with the performance report. The value of any job can be increased if the employee on certain post has performed very well and his appraisal report is very outstanding then according to his performance value of job is increased and this process is carried out by the HR department of Ufone. Moreover, the job evaluation is linked with the merit. Any person who is employed on merit and is performing very well will be given salary on the basis of his performance and merit.
The job evaluation method was not very much good in the past but now it is linked to appraisal system of Ufone.
The present basic salary structure of Ufone is based on Job description (Tasks and duties performed).
Job Analysis
Job analysis is systematic exploration of activities within a job. It is a technical procedure used to define the duties, responsibilities, and accountabilities of job. It is proved that job analysis is almost first activity of HR department to be done. Because on this, pay packages, compensations, job descriptions, job specifications, job evaluation etc are made. So at Ufone experts do job analysis. They construct “Job Analysis form”.
Ufone Job Analysis 

Following steps should be taken by the Ufone.
Step1: Obtain Documentary information such as procedure manuals and written instruction.
Step 2: Ask about more general aspect such as the job purposes, the main activities.
Step 3: Ask the jobholders about the job.
Step 4: Observe the jobholders to see what they actually do.
Information Collected in Job Analysis

Work activities
Worker-oriented activities
Machines, tools, equipment, and work aids used
Job-related tangibles and intangibles
Work performance
Job content
Personal requirements for the job

Why Ufone conducts job analysis
The Ufone conducts the job analysis to get the right person for the right job at the right time. If the Ufone does not conduct the job analysis then there will be a huge chance of selecting the wrong person or to reject the right person who is suitable for the job.
Knowing Who Does What
Major duties or activities required
Conditions under which the job is performed
Job analysis procedure of the Ufone

There are mostly following procedure of the Ufone about analysis of a job:
How Ufone formulate job description and specification
In Ufone most of the announcements for jobs are being done through newspapers having wide circulation in the country. Whenever Ufone offers any job it also describes the responsibilities and duties with in a job to be performed. The HR people after analyzing any job that has become vacant makes a job description defining clearly what the jobholder will do and how it will be done. On the whole job description defines characteristics of job, environmental conditions and responsibilities of the job.
The HR people define the job in such a way that it clearly describes the job and guides new employees what to do etc. now they are moving towards E-Recruitment also to ensure best candidates apply for the jobs and professional people are employed in the Organization.
Job specification

Ufone also has well developed criteria for each job in term of the job specification. In all the area of the jobs the pre- requisite for the job are defined for example:
Qualification required for a job
Skill required for a job
Experience required for a job
Job Description
Human Resource Division analyzes each job and its required outcomes. Job analysis is done by analyzing the past experience and emerging trends.
Ufone holds documents about terms, duties responsibilities, and specifications about each job. In job description Ufone define the following:
Duties of HR manager is to select, hire and train employees
Responsibilities are to update records and processing insuring claims 
Task is to complete the job related activities.
(click on the following image to enlarge)
jobdescform

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