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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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PERFORMANCE MANAGEMENT SYSTEM
Objective of the Performance Management: 

The basic objective for performance UFONE employees circles around the following:
F To look at Performance system as a means to an end
F Setting an individual’s goal
F Aligning goals across the company
F Ensuring employees get coaching from managers
F Determining merit pay
F Identifying training and development needs
F Providing data for promotion decision
F Input from multiple source on worker performance
The Performance Appraisal Process:

The Performance appraisal system used by UFONE for reviewing the performance status of its employee starts with identifying specific appraisal goals set by each Group for each cadre. After this a detail job analysis is done with looking in account the job expectation and then matching the actual performance with the desired performance. Afterward the performance is appraised according to the set standards and this appraisal is not done by the supervisor alone, their major focus is on taking into the account the employee’s perspective as well. Therefore whenever the appraisal is done employee is fully participative in the process.
Performance Appraisal Method Use by UFONE

UFONE is using 180-Degree Performance Appraisal Method. Within this method, managers, peers, customers or colleagues are asked to complete questionnaire on the employee being assessed. In UFONE, performance of an employee is appraises twice a year. Once in June while other in December.
In the questionnaire there are five sections and in each section there are five questions related to the performance of employee. There are total 100 points from which an employee gets.
Rewards Related to Performance
There is also a reward related to performance of the employees. For “Customer Facilitation Agents” there 50% pay is based on their performance which is assessing every moth by their managers. For other employees like in administration, engineering, finance, marketing, etc their performance is assessed after every six and they get increased Rs.5000 in their salary as a reward. In each case employee have to show consistent performance to win reward next time.

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A bell shaped distribution comes out to show the performance
Compensation Responsibilities of Ufone HR Department
F Compensation Administration (designing and installing job evaluation program, pay structure, analyzing jobs and their dollar-worth, maintaining suitable records, wage and salary surveys of the labor market).
F Health and Safety (health programs, safety programs, Medical facility).
F Employee relations (wages, rates of pay, hours of work, conditions of employment, negotiation, contract interpretation and administration, grievance handling, allocation of overtime).
F Benefits and Services (insurance programs, Transportation facility, sick leave pay plans, loan funds, LFA salary, Yearly bonus programs along with special bonuses for achieving high targets).
Employees Reaction to the system

As mentioned above that Ufone follow the job based and competitive structure, so this thing is in the nature of human that to react against any system because by implementing structure every body in the organization thinks that he or she is doing much and organization is not treating them well with the comparison of others. But at Ufone as we observed mostly of the permanent employees are quite satisfied with this system as compared to the contractual employees. Their reaction towards the system is cooperative because of their appraisal system; the Ufone performance appraisal system is very effective after every six months every body knows that what their score is. Ufone is a performance oriented organization so they compensate their employees on the basis of their performance so every body know that if they show the results then the organization will compensate them good if not then they will never expect, This is a good approach for performance oriented organizations to implement the system like this because of this system every body interests involves in it. And the Ufone also adopted the Competitive approach for compensation, because of this system every employee know what the other organizations are paying for the same job and what they are getting is fair or not.
Some are not satisfied because they think that we are very senior and the organization should have to compensate us for our seniority not for our work done, (Loyalty factor involves). 

Principal fault lines and some suggestions for improvement

While answering a question the manager of H.R expressed his thoughts that the employees who are hired by third party and working in organization on contractual basis, the manager answered “we don’t want them so we are not bound to compensate them equally in comparison with our permanent employees”.
In our point of view as we see the organization size figures that show there are more then 2000 employees are on contractual basis which are more then the 55% of the overall size of the organization. And all those employees are not much satisfied because of these criteria and they are a big part of the organization, they are stressed with their job because they are getting only salary not benefits or any other compensation tools against their work. 
This thing shows that there is a lack of motivational factor among contractual employees and cause increase in turnover rate. These things increase the cost of new hiring and training of new employees. We observed another important point with the prospective of Human Resource practices that in organization the concept of relational return is not very satisfactory but this matter a lot in organizations like Ufone.
Third setback is that they have some problem with their payroll; the organization size is more the 4000 employees but they have only two executives who are working for the pay roll and on the compensation so there are many troubles to run the payroll accurately and compensate every one fairly on the basis of their performance, because of work burden.
We think the Ufone should have to focus on the contractual employees and needs to motivate them by compensating fairly, with communication and make them understand that what they are getting is fair.
They have to provide them some necessary benefits, bonuses and incentives according to their J.D.
Ufone should have to start some career development programs to attract and retain most valuable employees, once if the employee feels that they have some career growth in the organization they are motivated and loyal to the organization.
HR Department must also forecast for long-term Human Resource needs.
It is also found that no referral bonus was given to contractual employees who refer competent, skilled and knowledgeable candidate. The HR Department must convince the higher management to give such bonus which not only motivated the employees but the organization can in this way get competent, skilled and experienced worker which may participate in the success of the organization.
Ufone HR Department must clearly communicate its promotion policy to all employees.

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