Human Resource Management (Internship Report)
I
dedicate
this
project
to
my
beloved
parents, teachers and friends for keeping
my spirit high and for their love, support
and guidance throughout my life.
Fahad Iqbal
UNIVERSITY OF CENTRAL PUNJAB
MBA – 7 L1F07MBAM2175
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Human Resource Management (Internship Report)
ACKNOWLEDGEMENT
All Praise to Allah. First and foremost I thank Allah, the Generous, for having finally made
this effort a reality. I praise Him because if it were not for His Graciousness, it would never
materialize.
I’m extremely grateful to my course instructor’s entire course instructor. who spent a lot of
valuable time with me and gave all the related information and expertise very generously
about related courses.
I thankful to UFONE PTML and its employees who provide the platform to complete my
internship successfully, specially thanks to Sr. Manager HR Abdul Rehman Fiasal, Astt.
Manager HR Farooq Naeem Sofi, Sr. HR Ex. Waheed Anwar, HR Ex. Raza Hussain, and HR
Ex. Mohammad Shawzib.
At last I, express our deepest gratitude to all those who contributed directly or indirectly to
bring this report to this final format, because I would never have been able to achieve this by
my self.
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TABLE OF CONTENTS
EXECUTIVE SUMMARY......................................................................................................1
1 INTRODUCTION.................................................................................................................2
1.1 BACKGROUND OF TELECOM INDUSTRY IN PAKISTAN..................................................................2
1.2 INDUSTRY BACKGROUND AT INTERNATIONAL LEVEL.................................................................2
1.3 COMPANY BACKGROUND.......................................................................................................3
1.3.1 History of Ufone........................................................................................................3
1.3.2 Mission Statement.....................................................................................................3
1.3.3 Vision Statement........................................................................................................3
2 COMPANY ANALYSIS.......................................................................................................4
2.1 OPERATIONAL ANALYSIS........................................................................................................4
2.1.1 Operating Performance............................................................................................5
2.2 FINANCIAL ANALYSIS............................................................................................................6
2.2.1 Ratio Analysis of Ufone............................................................................................6
2.2.2 Future Financial Plans.............................................................................................6
2.3 HUMAN RESOURCE ASSESSMENT AT UFONE............................................................................7
2.3.1 Recruitment At Ufone................................................................................................7
2.3.1.1 Internal Recruitment...........................................................................................7
2.3.1.2 External Recruitment..........................................................................................8
2.3.1.3 Direct Applicants................................................................................................8
2.3.1.4 Referrals.............................................................................................................8
2.3.1.5 Advertisements...................................................................................................8
2.3.1.6 Private Employment Agency.............................................................................8
2.3.1.7 Through Vendors (Outsourcing)........................................................................8
2.3.1.8 Electronic Recruiting..........................................................................................9
2.3.2 Recruitment Procedure.............................................................................................9
2.3.2.1 Replying To Candidates.....................................................................................9
2.3.2.2 Scheduling Interview..........................................................................................9
2.3.2.3 Screening Process...............................................................................................9
2.4 MARKETING ANALYSIS........................................................................................................10
2.4.1 Marketing Department............................................................................................10
2.4.1.1 Brand Marketing Department...........................................................................11
2.4.1.2 Value Added Service (VAS) Department........................................................11
2.4.1.3 International Roaming Department..................................................................11
2.4.1.4 Marketing Operations.......................................................................................12
3 ENVIRONMENTAL ANALYSES....................................................................................12
3.1 INDUSTRY & MARKET ANALYSIS..........................................................................................12
3.1.1 Major Product Lines & Market Segments..............................................................12
3.1.1.1 Ufone Product Lines.........................................................................................12
3.1.1.2 Mobilink Product Lines....................................................................................14
3.1.1.3 Telenor Product Lines......................................................................................15
3.1.1.4 Warid Product Lines.........................................................................................16
3.1.1.5 Paktel Product Lines.........................................................................................16
3.1.2 Growth Rate of Telecom Industry...........................................................................16
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3.2 COMPETITOR ANALYSIS.......................................................................................................16
3.2.1 Major Competitor...................................................................................................16
3.2.1.1 Mobilink...........................................................................................................17
3.2.1.2 Telenor Pakistan...............................................................................................17
3.2.1.3 Warid Telecom.................................................................................................18
3.2.1.4 Paktel................................................................................................................18
3.2.2 Market Shares.........................................................................................................18
3.2.3 Their Goals.............................................................................................................19
3.2.3.1 Mobilink Goals.................................................................................................19
3.2.3.2 Telenor Goals...................................................................................................19
3.2.3.3 Warid Telecom Goals.......................................................................................19
3.2.3.4 Paktel Goals......................................................................................................19
3.2.4 Their Strategies.......................................................................................................19
3.2.4.1 Mobilink Strategy.............................................................................................19
3.2.4.2 Telenor Strategy...............................................................................................19
3.2.4.3 Warid Telecom Strategy...................................................................................20
3.2.4.4 Paktel Strategy..................................................................................................20
3.3 TECHNOLOGY ANALYSIS......................................................................................................20
3.3.1 Technical Methods That Affect The Industry..........................................................20
3.3.1.1 CDMA Technology..........................................................................................20
3.3.2 Innovations..............................................................................................................21
4 INTERNSHIP DEPARTMENT.........................................................................................21
4.1 DEPARTMENT WORKED DURING INTERNSHIP..........................................................................21
4.1.1 Contribution Made Or Responsibilities..................................................................21
4.2 HUMAN RESOURCE DEPARTMENT AT UFONE.........................................................................22
4.2.1 Goals Of Ufone HR Department.............................................................................24
4.2.2 Responsibilities of Ufone HR Department..............................................................24
4.2.3 Directional Strategy Of Ufone................................................................................25
5 IDENTIFICATION OF A MAIN PROBLEM.................................................................25
5.1 ANALYSIS PROBLEM............................................................................................................25
5.2 RECRUITMENT PROBLEM......................................................................................................26
5.3 PAYROLL PROBLEM.............................................................................................................26
6 FINDINGS (SWOT ANALYSIS)......................................................................................26
7 CONCLUSION & RECOMMENDATION......................................................................28
8 BIBLIOGRAPHY ..............................................................................................................30
APPENDIX – A: EVALUATION SHEET...........................................................................31
APPENDIX – B: EXPERIENCE LETTER.........................................................................32
APPENDIX – C: JOINING LETTER..................................................................................33
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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 four years. Ufone owes its success to its employees believing that providing
employees with job satisfaction, motivates them to work hard and provide better results.
Proper planning is Ufone’s strongest point; all the products that they have launched so far are
backed by wise strategies with proper market research and massive advertisement campaigns.
Decisions are taken at top level with some participation from the lower levels showing that
they do comprehend the worth of Group decision-making. However goal setting is a
procedure dedicated to only the top management. Working on newer technologies is a
specialty of ufone
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1 INTRODUCTION
1.1 Background of Telecom Industry In Pakistan
Today information has become the most vibrant force and factor of production in the new
economy. The foundation of the information infrastructure is the telecom system. Initially,
the telecom industry was monopoly. The world started to see an initiation of reform in this
sector from early eighties of previous century. In Pakistan the liberalization of telecom sector
started in early 1990s. The real defining moment was the passage of Telecom Reorganization Act of 1996, which established the Pakistan Telecom Authority (PTA) as
independent regulator of the sector and set timeframe for ending the PTCL monopoly. This
act paved the path for liberalization of the telecom sector in line with the global trends and
Pakistan’s commitment to the international treaties like WTO.
With the deregulation of telecommunications sector in Pakistan in early 90s, Ministry of
Communications awarded two licenses to begin cellular operations based on AMPS
technology. Paktel and Instaphone were formed as joint venture between foreign and local
partners. Instaphone initiated its services in 1990, while Paktel started its operations in 1992.
Both the companies were using AMPS technology. A year later, a third license was awarded
to the Saif Group that led to the inception of Mobilink that started its services in 1994. It was
the first company that introduced GSM technology in Pakistan. In 1995, the Cellular Industry
suffered a major blow with the closure of operations in Karachi, the largest market, but the
closure sanction was lifted after almost two years. On January 19 th, 2001, PTCL entered the
cellular market with its on operator based on GSM technology under the brand name of
Ufone.
In April 2004 Pakistan Telecommunication authority (PTA) awarded two new licenses under
an open auction process for a fee of $291 million. These were purchased by two companies
namely, Warid telecom and Telenor. Telenor started its operations on March 15, 2005. AlWarid started its operations on 23rd May 2005.
The cellular industry had been offering attractive rewards and pays since the beginning.
However, with the introduction of the two new companies Telenor and Al Warid, the pays
and rewards have taken a rise. The two new companies especially Telenor have been able to
attract highly qualified workers of two main companies namely Ufone and Mobilink by
offering them higher pays and rewards. Keeping this in view, the Mobilink and Ufone had to
revise their pay plans and rewards. Currently, there is tough competition in the cellular
industry and all the companies are trying hard to attract, retain and motivate their employees
by offering them attractive pay packages.
1.2 Industry Background At International Level
The mobile phone industry experienced better than expected sales, as worldwide mobile
phone unit sales total 112.7 million units, an 18% increase from the first quarter of 2005. The
mobile handset industry rode the crest of a wave of robust replacement demand to realize
record levels of sales to end-users for the first quarter. Significant demand was recorded
across all geographical regions during the quarter, and annualized sales trends based on these
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results suggests the market could be on pace for a double-digit rate increase for the full
calendar year.
1.3 Company Background
1.3.1 History of Ufone
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 750 cities, towns and across all major highways of the
country.
During the year Ufone successfully completed the network expansion of Phase IV in existing
as well as in new cities and towns, which amounted to more than US Dollar 170 million. As a
result the asset base of the Company has increased from Rs. 20 billion to Rs. 27 billion.
During the year Ufone adopted the policy of simplified tariffs with no hidden charges, which
resulted in positive impacts on the usage trends of subscribers as well as total subscriber base,
which has increased from 2,579 k in June 2005 to 7,487 k in June 2006. 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 90 Live Operators
across 66 countries. The company has also been awarded a new License for providing
cellular services in Azad Jammu & Kashmir and Northern Areas.
1.3.2 Mission Statement
To become the best cellular communication option available in the country for “u”.
1.3.3 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.
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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,
2 COMPANY ANALYSIS
2.1 Operational Analysis
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 decisionmaking authority to take advantage of local opportunities in regional or specialized product
markets also enhances flexibility.
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
Board Of Directors
CEO
Project Director
Marketing
&
Sales
Customer
Care
HR
&
Admin
UNIVERSITY OF CENTRAL PUNJAB
Information
System
Business
Unit
Khi/Lhr/Fsd
Finance
Engineering
Quality
Assurance
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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
 BU North (Peshawar to Jehlum, including Islamabad)
 BU Central-1 (Gujranwala till Sialkot)
 BU Central-2 (Multan till Rahim Yar Khan)
 BUM South (Sindh and Balochistan)
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.
 Finance
 Engineering
 Customer Care
 Marketing & Sales
 Human Resource
 Busines Units Khi/Lhr/Fsd
HR hires the best people to work and
adjust them into these four departments
according to their specialization. HR
conducting its best practices to recruit,
train and motivate their employees.
 Information Systems
 Quality Assurance
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 and
customer satisfaction.
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.
2.1.1 Operating Performance
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Ufone’s operational performance has been very encouraging. Despite the stiff competition in
Pakistan telecom market which has led to reduction of prices to bare minimum level, due to
its aggressive policies and exercising strict control over expenses the Company managed to
improve its revenue and after-tax profit by 87% and 54% respectively, as compared to last
year.
2.2 Financial Analysis
Ufone has over the last six and a half years made huge investments in the national economy.
PTML has successfully been able to build upon its excellent financial results from the
previous year. During the year Ufone successfully completed the network expansion of Phase
IV in existing as well as in new cities and towns which amounted to more than US Dollar 170
million. As a result the asset base of the Company has increased from Rs. 20 billion to Rs. 27
billion.
Since Ufone is an SBU of PTCL therefore they are not authorized to disclose their profits
separately. For the same reason PTCL’s financial statement incorporates the profits earned
through its mobile operations and the figure are displayed in their annual reports.
2.2.1 Ratio Analysis of Ufone
 Ufone current ratio in 2006 was 0.30
 Asset test ratio in 2006 was 0.31
 Ufone debt to equity ration inn 2006 was 0.35
 Ufone debt to total assets ration in 2006 was 0.64
 Ufone interest covering ratio in 2006 was 16.3
 Their receivable turnover ration in 2006 was 07.07 times.
 Inventory turnover ratio in year 2006 was 18.6 times.
 Total assets turnover ratio in year 2006 was 0.32
 Net profit margin in 2006 was 28.4%
 Ufone return on investment in 2006 was 10%
2.2.2 Future Financial Plans
Keeping in view the growth potential of the cellular industry there is no option but to be
aggressive in order to remain a potent force in the cellular industry. In order to extend cellular
network to new cities, towns and highways and enhance its current installed capacities in
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existing cities, Ufone has finalized a huge network expansion contract amounting to about
USD 550 million, which will enhance the subscribers’ capacity by 10 million. This is the
largest ever expansion project of Ufone.
A strong focus will be on maintaining high quality of service, which is always a benchmark
of Ufone, increasing usage and exploring new revenue streams on value added services,
market visibility through various market initiatives to fulfill subscribers’ satisfaction and
demand and above all to increase the value of investment for the shareholders.
2.3 Human Resource Assessment At Ufone
Qualified professionals from outside have been hired/are in the process of being hired,
primarily to adopt customer-oriented approach with a view to strengthening customers'
loyalty as well as to increase market share.
Many monitory and non-monitory incentives are provided to the employees for the purpose
of, motivation, and retention. Company perks, paid leaves (in certain cases) and medical
benefits are a few to mention. In spite of these measures employee retention is quite low at
Ufone. A lot of new employees, both at managerial as well as non-managerial levels are
found leaving the organization after just a few months of joining. Similarly new employees
are hired to take their places.
One of the reasons lies in the fact that although the company is providing its members with a
lot of benefits, the work load on them is very high. Employees work for longer than just 9 to
5:30 (the official work timings). Sometimes even staying for as long as 10 at night especially during a busy season (year end etc) or at the launch of a new campaign. Due to this
many employees find themselves unable to create a balance between their personal and
professional life and thus avail the first better opportunity out!
Also since the telecom industry is still at its growth stage and a recent entrance of three new
telecom service providers in the local market, many experienced employees find themselves
with more and better job opportunities
2.3.1 Recruitment At Ufone
Before recruiting a new employee, management checks whether there is a need to hire a new
employee for that particular job or whether it can be incorporated into an existing employees
job. Recruitment in Ufone may be of internal or external nature.
2.3.1.1 Internal Recruitment
In the case of internal recruitment people from within the organization are promoted to fill
the vacant vacancy. The HR department and the relevant department in which the vacancy
exists, analyze whether there an employee within the organization exists, who most
appropriately meets the requirements of the particular vacancy. If more then one employee is
eligible for the vacancy; then that employee is chosen who has the most outstanding record.
After the promotion the employee may be sent for further training. The effect of internal
vacancy is that it motivates the employee to perform their best and produce maximum output.
It also creates a healthy competition amongst the employees. The hiring from within may
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have a trickle down effect i.e. the opportunities spring not just from the first vacancy but from
the vacancy created when a person in the company fills that vacancy.
2.3.1.2 External Recruitment
If the organization feels that none of their current employees can fill out the new vacancy
then they hire from external sources. In this case the human resource management considers
other departments in the organization that might be interested in the appointment in order to
make it a joint effort. They talk to relevant supervisors and especially to the people the new
person will work with. A set of expert panelists is then selected from each relevant
department to interview applicants
2.3.1.3 Direct Applicants
Ufone maintains a data base system i.e. HRMS (Human resource management system) for its
internal employees as well as the employees which they will recruit in near future. In some
case certain some people just drop their CV’s at the head office. And whenever there is an
opening or a vacancy occurs, the organization may call them for an interview.
2.3.1.4 Referrals
By advertising a post internally Ufone gains an added benefit, which is; the current
employees may pass the information on to any interested friends and relations. Word of
mouth is also a valuable recruitment method for them and they draw on all appropriate
contacts they have
2.3.1.5 Advertisements
Since most of the posts are of a specialist nature, they intend on advertising in the journals of
professional bodies and the trade press. Their next step is to find out how much adverts cost
for varying amount of space and decide what they can afford.
The HR management has hired the services of Interflow, an advertising agency, to propagate
their service and company for them. They are also using the services of a web designer,
Eveready media, to post the advertisement of the company on the Internet.
2.3.1.6 Private Employment Agency
The private Recruiting agencies collect information from unemployed as well as employed
people about their skills and experiences. These agencies attempt to find some one suitable
using its computerized inventory database of suitable individuals. These agencies charge
Ufone for the referrals.
2.3.1.7 Through Vendors (Outsourcing)
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Ufone also do outsourcing for the purpose of recruitment they hire firm, which will provide
employee Ufone to work in the organization, but the employee will remain employee of that
firm not Ufone, and this is the most common method followed by most of organization these
days. Lower management at Ufone is comes through outsourcing.
2.3.1.8 Electronic Recruiting
The growth of information superhighway has opened up new vistas for organizations trying
to recruit talent. Ufone is make full fledge use of this new technology, and it uses its own web
page to advertise for new job openings.
Another aspect of the electronic recruiting is that individuals don’t have to physically go to
the head office to drop their CV’s. They now can simply use the e-CV format provided by
Ufone on its home page. The e-CV is then transferred to the relevant database or the HR
department.
2.3.2 Recruitment Procedure
The HR management decides on the length of the short-list, which includes five or six people
at the most. Following the advert they need help to sift through the applications. Everything
is computerized and on-line which makes it easier to handle large numbers of replies. In case
they run short of time, they get the help of other staff, supervisors and managers in the
organization. Apart from the question of time, they do this to get second opinions. They look
out for the following when reading an application:
 How well-matched is the candidate to the requirements
 Any unexplained employment gaps
 The quality of presentation
 How tailored the reply is to the particular job and Ufone as an organization.
2.3.2.1 Replying To Candidates
The candidates that do not match the job are contacted as quickly as possible and dealt with
courteously since the HR management believes in the philosophy that these people, and their
relatives and friends, may be future customers or acquaintances of potential, future
applicants. Those that match the job are called over to undertake an on-line evaluation test.
2.3.2.2 Scheduling Interview
The candidates that pass the on-line evaluation test are then called for interviews. A date and
a time are arranged and the candidate appears for the interview. The questions of this
interview are designed especially for gauging the personality and ability of the candidate.
2.3.2.3 Screening Process
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Human Resource Management (Internship Report)
The results are screened by a set of panelists in order to minimize chances of error in
selecting the candidates. The HR management sometimes keeps a small number of candidates
in reserve.
2.4 Marketing Analysis
Today, Ufone is the affordable mobile service option available in the local market with all
facilities available at affordable prices. Right now Ufone commercials are beings aired in 15
different TV dramas. These television commercials have received a lot of appreciation from
both their valued customers and advertising industry professionals in Pakistan. Ufone, with
Pakistan's largest advertising company Interflow Communications Private Limited, has
always tried to deliver truthful and interesting advertising to its viewers.
Ufone invests heavily on its advertising budget and its commercials are not only aired on TV
and radio but are also printed in the leading newspapers and magazines of the country. Huge
billboards and banners have also been put up at eye catching locations in different cities,
advertising the latest new services being offered. It also participates in sponsoring various
theatre and stage plays in various cities along with live rock concerts held across the country.
Cricket matches are another area in which Ufone ads are commonly viewed. It even allows its
subscribers to receive wicket alerts and download animated video clips of falling wickets and
via its MMS service.
At times Ufone has even restored to aggressive marketing strategy in order to gain a larger
market share. They are using dumping strategy to gain maximum market.
2.4.1 Marketing Department
Their Marketing department consists of following four units.
 Brand Marketing
 Value Added Services (VAS)
 International Roaming
 Marketing Operations.
Marketing
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Brand
Marketing
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International
Roaming
Marketing
Operations
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2.4.1.1 Brand Marketing Department
Brand marketing department of Ufone deals with the advertisement agencies, all the ad’s
shootings, animation, posters, billboards, TV ads, radio newspaper etc. They Create ideas ot
hire some firm to make their up coming promotion.
2.4.1.2 Value Added Service (VAS) Department
Value added service department deals with the different packages related with the ufone
connection, they do research and market analysis to find out customer needs and then design
vale added package for those customer like for example these days most famous value added
package is 1000 SMS is Rs 75 which can be activated by dialing 777 from the Ufone prepaid
connection.
Some of the features offered on Prepay are as follows:
 Voice Mail: Ufone Voice mail lets you receive and store messages when you are
unable to attend your calls; if your phone is switched off, not responding, busy or out
of coverage.
 SMS: With Ufone's Short Messaging Service you can send unlimited messages to
your friends, loved ones and colleagues
 GPRS: Ufone GPRS allows you to check your e-mails, chat with friends or browse
the internet from your mobile phone
 MMS: MMS allows you to send photographs or video clips to an email or another
Ufone. International SMS:
 International SMS: You can now send unlimited messages to 449 operators in over
169 countries all over the world at a standard SMS rate.
 Downloads: Ufone provides a wide range of downloads for your mobile in form of
Java Games picture messages, color wallpapers, ring tones, logos etc.
2.4.1.3 International Roaming Department
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International Roaming department deals with people who went across the country boarder
with Ufone SIM with international roaming activated. I more frequently related with the
people who went for Umrah and Hajj.
2.4.1.4 Marketing Operations
Marketing Operations department at Ufone deals with all non-electronic activities like
billboards, outdoor, sponsorship, event-sponsorship, franchise out-wall and in-wall
monitoring
3 ENVIRONMENTAL ANALYSES
The environment of any organization plays a very vital role in bringing out the inner qualities
and talents of people. On entering the Ufone office, what strikes a person most is their
atmosphere and decor. The atmosphere of the Ufone head office is a very pleasant one, with a
large impressive lobby welcoming the distinguish customers. The décor includes glass and
steel walls. This communicates that Ufone has effectively dealt with its most toughest and
delicate issues with care.
To make the atmosphere more pleasant, a touch of greenery has been added, to communicate
that Ufone is an eco-friendly organization. The security check on entering the majestic hall
gives the customer a sense of security. It requires the person visiting the office to sign an
entry form and wear a badge.
All these things made the office informally communicate that it welcomed customers and
guests, but the most important element that makes this backdrop complete is the employees,
all formally dressed, communicating that the organization strictly adheres to dress code.
3.1 Industry & Market Analysis
All mobile phone operators in Pakistan have two basic types of connections i.e.
 Prepaid
 Post paid
3.1.1 Major Product Lines & Market Segments
3.1.1.1 Ufone Product Lines
There are two basic products of Ufone “Ufone Prepaid” and “Ufone Postpay”. Both pf these
products are available at their franchise for public.
Ufone Prepaid
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Ufone Prepaid is with a wide range of products and features your Ufone Prepay connection is
a complete communication solution that offers you SMS, GPRS, MMS, Call Features,
International Roaming and a variety of amazing Mobile Products
Short Messaging Service (SMS) & International SMS
You can send and receive text messages up to 160 characters per SMS. If your handset
supports more than 160 characters, one SMS will be sent for every 160 characters. You can
exchange text message both nationwide & worldwide.
Caller Line Identification (CLI)
You can find out the caller’s number automatically before answering the phone as it is
displayed on your handset.
Call Waiting
Call Waiting allows you to receive calls while in conversation with another caller. To activate
your call waiting please call 333.
Voice Mail
Voice mail lets you receive and store messages when you are unable to attend your calls; if
your phone is switched off, busy or out of coverage. To activate your voice mails please call
333. To retrieve your voice messages please dial 191. You can enjoy message storage
capacity of 10 messages.
Phonebook Saver
Lost
or
changed
your
phone
and
worried
about
your
contacts?
With Phonebook Saver, now you can retrieve all your contact numbers instantly whenever
you lose them. So go on and create your personal Phonebook Saver account and never lose a
contact again.
GPRS enabled MMS, WAP & Internet Access
With GPRS (General Packet Radio System) you can access emails, browse the internet, send
and receive multimedia messages from your handset.
Internet Access
You can access the internet by simply entering the desired website address on your phone’s
internet browser
MMS
This service allows you to send and receive pictures, sound & video clips.
Emails: you can access your office emails and internet based emails using the GPRS enabled
handset.
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Prepay IR
Now roam in various important destinations worldwide with the most affordable and
economical tariff offering. For details please call 333 from your Ufone.
Ufone Postpay
Ufone Postpay is a brand that keeps up with you, understanding your drive for victory in the
business arena and your sense of belonging in your personal life. On Ufone postpaid they aim
at providing you with the most superior mobile phone services, widest quality network & best
customer services for you on your journey to success. It have following features;
 Special discounts: on a range of talk plans you can choose from.
 Virtual Private Network (VPN): Your own private network within the Ufone
network.
 GPRS: Internet Access on your GPRS enabled phone & mobile office so you can be
in touch with business while you are out and about.
 Umail: To enjoy wireless email products.
 International Roaming: in countless destinations, keeping you connected
worldwide.
 Exclusive Customer Care: with personal service to help set up your phone to suit
your needs.
 Exclusive Rewards: that you will receive on using your Postpay connection.
3.1.1.2 Mobilink Product Lines
There are two basic products of Mobilink they are given as following;
 Jazz
 Indigo
These products have following VAS characteristics.
 SMS
 Web-SMS Chat
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 TV- SMS Service
 On Call Services
 Dedication Service
 Missed Calls Alerts
 Mobile Banking
 Fun Messaging
 Payment Solutions
 Fax & Data
 G-Mail
 Stock Watch
3.1.1.3 Telenor Product Lines
There are two basic products of Telenor “Telenor Prepaid” and “Telenor Postpaid”. Both of
these products are available at their franchise for public.
Telenor Prepaid
Telenor has following two packages;
 Telenor Talkshawk Har Second
 Telenor Talkshawk 30 Second
 Telenor Talkshawk Azadi
Telenor Postpaid
Telenor Postpaid connection is the billing package with lots of value added services for their
user.
GPRS: Which gives you high speed WAP on your handset and Internet connectivity
anytime, anywhere
MMS: So you can enjoy sending and receiving Multi Media Messages
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Downloads: Now you can select and receive the latest ring tones, pictures, background
themes and games
WAP: Keeps you up to date with the latest happenings in news, entertainment, sport,
downloads and much more
3.1.1.4 Warid Product Lines
There are two basic products of Warid Telecom they are given as following;
 Zem Prepaid
 Zahi Postpaid
3.1.1.5 Paktel Product Lines
There are two basic products of Paktel they are given as following;
 GSM Prepaid
 GSM Postpaid
3.1.2 Growth Rate of Telecom Industry
The mobile phone, an extension of the information technology, has assumed the role of a
magic wand in today's life style. The fascinating options offered by this technology at both
ends of the users (dialing or receiving) while in movement give a sense of freedom to the
people. This freedom of movement perhaps the major reason for phenomenal spread of this
little wonder around the globe.
Unlike the landline connections, the growth of mobile phones has smashed all bureaucratic
hurdles of the landline phone connections. Market experts are of the opinion that call charges
are still on higher side which are hampering further growth of this sector. They hope that
further growth of this industry calls for reduction in call charges, as a large market was still
untapped in Pakistan due to cost factor.
However, the overwhelming growth of cellular phones in a poor country like Pakistan is a
win-win situation for investors in this sector.
3.2 Competitor Analysis
3.2.1 Major Competitor
There are four major mobile telecommunication competitors of Ufone PTML and they are
given as followoing;
 Mobilink
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 Telenor
 Waird Telcom
 Paktel
3.2.1.1 Mobilink
Mobilink GSM is the market leader in providing state-of-the-art communications solutions to
more than 11,000,000 (eleven million) people in Pakistan. Being the first cellular service
provider in Pakistan to operate on a 100% digital GSM technology.
Mobilink offers tariff plans that are exclusively designed to cater to the communication needs
of a diverse group of people, taking into account occasional users to businessmen.
In addition to providing advanced voice communication services, Mobilink also offers a
number of value added services to its valued subscribers. Keeping in mind customers'
convenience, they have also bundled mobile handsets, sold either independently or bundled in
Get Set Go Pack.
Mobilink GSM started operations in the year 1994, from then on it has shown enormous
growth. At the time when it entered the market it was a small player in the cellular market of
Pakistan it is now the market leader both in terms of growth as well as having the largest
subscriber base in Pakistan.
3.2.1.2 Telenor Pakistan
Telenor Pakistan launched its operations in March 2005 as the single largest direct European
investment in Pakistan, setting precedence for further foreign investments in the telecom
sector. In a little over two years, they have grown to become a leading telecom operator in the
country. In fiscal year 2006, they achieved nearly 200% growth in our subscriber base – the
highest in the industry by a wide margin.
They are the fastest growing mobile networks in the country, with coverage reaching deep
into many of the remotest areas of Pakistan. In the most difficult terrains of the country, from
the hilly northern areas to the sprawling deserts in the south, at times they are the only
operator connecting the previously unconnected.
They are keeping ahead by investing heavily in infrastructure expansion. With USD1 billion
already invested, they have extended agreements with our vendors for network expansion and
services until 2009. The agreements, with a potential to result in USD750 million worth of
orders from Telenor Pakistan, are some of the biggest of their kind in the industry.
They are spread across Pakistan, creating 2,200 direct and 20,000-plus indirect employment
opportunities. They have a network of 15 company-owned sales and service centers, more
than 200 franchisees and some 100,000 retail outlets
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3.2.1.3 Warid Telecom
Warid Telecom takes pride in being backed by the Abu Dhabi Group, one of the largest
groups in the Middle East and the single largest foreign investor group in Pakistan. It has a
diversified business interest in the institutions that have enjoyed commercial success as a
result of its strong financial resources and extensive management expertise.
Warid Pakistan launched its services in May 2005. Within 80 days of launch Warid Pakistan
claims to have attracted more than 1 million. users. According to Pakistan
Telecommunication Authority, currently Warid Telecom has more then 10 millions
subscribers in Pakistan. And is ranked as the fourth largest operator in Pakistan. Warid
Pakistan claims it has the largest "post-paid" subscriber base.
3.2.1.4 Paktel
Paktel started its commercial operations in Pakistan in November 1990 as the pioneer of
Cellular telephony with an AMPS network which was converted to TDMA (Digital) in 2003.
Due to innovation in the sector (primarily in Europe), GSM quickly gained popularity all
over the world and became the technology of choice leaving AMPS/TDMA far behind.
Paktel finally decided to convert to GSM on October 26th 2004 with the launch of 31 cities.
The current coverage footprint consists of 341 cities.
Paktel’s principal shareholder was Millicom Pakistan B.V, which held 98.86% equity of
Paktel. Millicom Pakistan B.V. was a 100% owned subsidiary of Millicom International
Cellular S.A. Millicom is a global telecommunications operator with ventures in 16 countries
worldwide including countries in Latin America, Asia and Africa.
On 13th November 2006 Millicom announced that it planned to exit from Pakistan due to its
inability to generate returns on investment in Paktel at the levels required by Millicom.
On Feb 13th 2007 Millicom announced that it had completed the sale of its 88.86 per cent
shareholding in Paktel Limited to China Mobile Communications Corporation which
finalized Millicom’s exit from Pakistan. China Mobile has aggressive plans for Pakistan and
this will be a new beginning for Paktel.
3.2.2 Market Shares
According the the results of research on market shre of Pakistan’s mobile companies we have
following data.
 Ufone 21%
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 Mobilink 49%
 Telenor 11%
 Waird Telecom 14%
 Paktel 5%
3.2.3 Their Goals
3.2.3.1 Mobilink Goals
Mobilink’s goal is to increase ARPU (Average Revenue per Unit). Penetrate into the markets
by product and pricing strategies. It started with image positioning product but now they are
getting into masses.
3.2.3.2 Telenor Goals
Instaphone have unique technology positioning. Telenor is targeting modern generation. They
have also heavily invested in advertising.
3.2.3.3 Warid Telecom Goals
Capture the maximum market strength by penetration and provide coverage all over the
country accordingly.
3.2.3.4 Paktel Goals
Paktel has also a low price positioning. But its customers are rather confused. They have
undercut their prices, specially prepaid will be positioned as low.
3.2.4 Their Strategies
3.2.4.1 Mobilink Strategy
Mobilnk believes in an Extensive and Intensive distribution Strategy.
3.2.4.2 Telenor Strategy
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Telenor's previous activities in Asia have focused on the development of mobile networks
from scratch, and so the current activity is a continuation of their previous successful strategy
3.2.4.3 Warid Telecom Strategy
They believes in expending the network at low price strategy.
3.2.4.4 Paktel Strategy
Their strategy is innovation and technological edge.
3.3 Technology Analysis
Mobile users tend to associate service access and availability with their handset devices
rather than their locations or service providers. So as long as they have their device with them
customers feel they should be able to use the same services they use at home wherever they
are in the world. And over the years GSM operators have developed the network, service,
inter-working and billing capabilities to satisfy such expectations. Roaming is an advantage
the GSM community must continue to leverage with the development of enhanced data
services and the roll out of next generation networks.
3.3.1 Technical Methods That Affect The Industry
The choice of technology is important in this industry because it can provide the operator
with product differentiation in a crowded market. Ufone is the technology leader with GSM
and GPRS infrastructure.
For any operator, in selecting GSM technology, there are two routes to follow. Either start as
a technology leader with large investments in GSM / GPRS / EDGE technology or start a
phased roll out and adopt a “build as they come” approach, using infrastructure sharing and
roaming arrangements to provide coverage to its users. The first approach allows the operator
to charge a price premium and rollout services on top of its higher speed network. The second
approach is accompanied with a price discount strategy capturing the low-end market
segment in the initial phase and moving on later to the higher margin customers.
3.3.1.1 CDMA Technology
If an operator selects CDMA technology, it might have a couple of advantages. At this time,
services offered on the CDMA networks in US, Japan and Australia are much faster as
compared to the GSM / GPRS /EDGE standard. Another benefit for CDMA is the enhanced
network capacity and spectral efficiency in the CDMA network as compared to a GSM /
GPRS network and the availability of CDMA EVDO high-speed data infrastructure. If an
operator wants to roll out a CDMA network, the commitment will be much higher in terms of
initial capital expenditure, since a nation-wide network would be required to launch service
and infrastructure sharing or roaming would not be possible with existing GSM operators.
On the other hand, for a GSM operator, the initial investment can be much less if roaming
and infrastructure sharing is to be used. However, in the long term, there will be no product
differentiation between similar GSM networks except marketing and price competition. For
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a GSM based operator in the Pakistani market, there is less risk and less return while for a
new CDMA operator there is higher risk and financial commitment but it also offers a
probability of higher returns in the future.
3.3.2 Innovations
Using its GPRS enabled network, Ufone launched innovative services, and mobile
applications such as games, video clips, etc, and introduce MMS multimedia messaging. The
cellular technology is growing at a fast pace. Each year a new innovation is rolled out leaving
the old ones obsolete. Some of these recent innovations, which are currently being used in
Pakistan, are stated below;
 Short Message Service (SMS)
 Multimedia Messaging Service (MMS)
 General Packet Radio Service (GPRS)
 Wireless Application Protocol (WAP)
 3rd Generation General Packet Radio Service (3GPRS)
 Enhanced Data Rates for Global Evolution (EDGE) Technology
4 INTERNSHIP DEPARTMENT
4.1 Department Worked During Internship
Working in the Human Resource Department (Operations) of best cellular and a well-reputed
organization was an opportunity in itself for me.
The idea of internship before formally joining any organization is to enhance ones
interpersonal skills, confidence, to gain a sense of responsibility and to acquaint oneself with
the overall office environment of an organization.
This period was a chance to learn the basic office operations, policy and procedure, recruiting
and selection, orientation programs, training preparations meeting the deadlines, submission
of projects, interactions with peers and superiors. Fortunately it was a fair chance not only to
learn and overcome the shortcomings not only by the guidance of the colleagues but also by
the diversity of nature of interactions.
4.1.1 Contribution Made Or Responsibilities
 Completed 7 weeks internship at Corporate HR Department, Ufone Head Office.
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 Providing HR assistance to the department and coordinating with other departments,
when required.
 Developing of probation report of contractual employees.
 Preparing expense and medical claims report for the payroll.
 Assisting in monthly payroll, and preparing the reports.
 Completed internal audit for contractual employees and conducted meal survey.
 Maintaining the database for new hiring, transferring, promoting and firing of
employee. Filing and maintaining the records of all documentation and information.
4.2 Human Resource Department At Ufone
HR Department
Training
&
Development
HR
Operations
Outsource
Operation
There are three Sub units of Human Resource Department at Ufone which are given as
following;
 Training & Development
 HR Operations
 Outsource Operation
The above 3 sub depts. Do the following tasks;
 Recruitment.
 Policy & Procedures Development.
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 Employees Data Management.
 Employee Benefit & Compensation.
 Training & Development.
 Employee Motivation
 Retention of Employees
 Career Planning/ Succession Planning
 Employee Relations/ Communication
 Employee Awards
 Employee Events Management
 Medical & Life Insurance
The senior manager and the assistant manager are responsible for the training and
development functions of the organization. They take main decisions regarding the final
hiring of the employees and the pay and rewards packages allocated to them. They are also
responsible for the establishing of the performance evaluation criteria. The manager and the
executives are responsible for the operations. But besides taking care of the day-to-day
operations, they perform the function of recruiting and staffing as well. Conducting the job
analysis for each job is also the responsibility of the manager and his executives.
Senior Manager HR
HR Manager
Assistant Manager HR
Senior HR Executive
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4.2.1 Goals Of Ufone HR Department
 Policy initiation and formulation.
 Advice (on personnel policy, labor agreement, needs and welfare of company and
employee development).
 Service (employment, training, development benefits functions, recruiting,
interviewing, testing job applicants, maintenance of adequate employee records etc.).
 Control (monitoring performance, retention and conformance of other departments to
personnel policy, procedures and practices).
4.2.2 Responsibilities of Ufone HR Department
 Employment & recruiting (Interviewing, recruiting, selection and induction into the
organization).
 Transfer, Promotion, Layoff (checking conformity of skills with new department in
case of transfer).
 Training and Development (Orientation, coaching, performance management skill
training both for technical and non technical personals, counseling, job rotation.).
 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).
 Health and Safety (health programs, safety programs, Medical facility).
 Employee relations (wages, rates of pay, hours of work, conditions of employment,
negotiation, contract interpretation and administration, grievance handling, allocation
of overtime).
 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).
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 Organization Planning (developing concept of company as a structure or system).
 Organization Development (increase level of trust and supportiveness among people
in the organization, enhance interpersonal skills, make communication more open and
direct, directly confront problems, tap the knowledge of all who can contribute to
problem solutions wherever they may in the organization).
 Human Resource Planning (right number of qualified persons available at the proper
times, performing jobs that are useful to the organization and which provide
satisfaction for the individuals involved, goals and plans of organization, current
human resource situation including skills inventory, human resource forecast
including comparison of projected future demand for employees with projected
supply, designing programs to implement the plans of recruitment, selection,
performance appraisal, transfer, promotion, training, motivation, compensation, audit
and adjustment).
 Equal Employment Opportunity (no discrimination in terms of gender, race, age,
national origin, religion. Involves complaint investigation, interpretation and policy,
monitoring performance).
 Personnel and Behavioral Research (improving worker productivity and also
increasing the quality of working life, employee attitudes and motivation, predicting
success in management and organizational relationships).
 Personnel Information Systems (Maintaining HRIS i.e. human Resource Information
system, HR planning, skills inventories, employee benefits analysis and productivity
studies).
4.2.3 Directional Strategy Of Ufone
Ufone is currently following “Internal growth strategy”, as it is the second largest cellular
company operating in Pakistan. The company is mainly focusing on market development i.e.
they are expanding their network to capture large market share Along with that they are also
doing product development for which training will be of a more technical nature, as well as
focusing on interpersonal skills such as team building.
5 IDENTIFICATION OF A MAIN PROBLEM
5.1 Analysis Problem
As I had analyzed the planning process of Ufone, I come to the point that the involvement of
top management and the relevant departments in the planning process is a very healthy sign
but I have found few discrepancies in that system as well.
 Proper forecasting is lacking in this organization from which they cant predict supply
and demand for various of human resources to predict areas within the organization
where there will be future labor shortage or surpluses hence by not implementing
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complete forecasting system they are unable to predict the areas where there are
surpluses specially in the customer service.
 As marketing is there core competence they fail to get the best candidate at times
because of their weak forecasting system.
 No overtime facility is given to the permanent staff by which they get de motivated
due to their work overload. No plans have yet been implemented to overcome this
problem. What I have analyzed, that due to this problem they can’t properly entertain
and satisfy their customers and many employees leave this organization due to their
weak planning work schedule.
 Keeping in view of the global development and advancement in the field of
telecommunication one can say without any hesitation that ufone has no plans to hire
people for any future product development. All what they are doing is that they have
outsourced all the technological development for which they are paying thousand of
money for that. No proper plans have yet been implemented to hire and train
personals for their future demand.
 There is no concept of temporary workers, which is also hampering their cost because
through that they can save thousand of money.
5.2 Recruitment Problem
Looking at the Ufone recruitment process mostly they are using internal recruiting source as
their main source. I have found some discrepancies in ufone system, which is worth
mentioning.
 Lack to follow due process policy. Due to this they are losing their ace employees.
 Due to lack of proper advertisement they are unable to grab the best employees for
their organization.
 They are not following the lead the market pay strategies due to which they are
suffering from high turnovers
5.3 Payroll Problem
By involving my self in the monthly payroll process rum by Human Resource Department I
have noticed that this process take longer time to complete and have duplication of steps that
already done by other departments.
6 FINDINGS (SWOT ANALYSIS)
Strengths
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 Ufone is a government company and therefore it enjoys a lot of concessions, which
the private cellular companies cannot enjoy.
 GSM technology.
 It has a strong brand identity. It has successfully projected itself as a company meant
to serve its people.
 Ufone has Wide network.
 Ufone has a comprehensive promotional strategy.
 Ufone has a unified network of franchises.
 Electronic Voucher Distribution (EVD) is a great new re-charge option for prepaid
subscribers that doesn't relay on the availability of scratch cards for topping up their
Ufone credit. This service is great because it ensures that the credit require for Ufone
connection will always be available on-demand.
Weakness
 Ufone being a government organization has relatively less human and financial
capital available as compared to its major competitors that are subsidiaries of large
multinationals such as Mobilink and Telenor.
 Customer services provided by Ufone are not according to the requirements of their
customers.
 High Turnover rate.
Opportunities
 There are vast opportunities of growth as market penetration rate of the cellular
market of Pakistan is only 2.3%
 The introduction of new technologies in the cellular industry has increased the
demand for it along with reducing the operation costs for these companies.
 Ufone can develop direct relationship with retailers on large scale through Electronic
Voucher Charge.
 Ufone can further improve its network in order to make more loyal customers.
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 With the globalization of the world Mobilink can further increase its market.
 They should call in at different universities and offer jobs there for students to give
them employment in the organization. They can post their job advertisements on
university bulletin boards and also ask the fresh graduates for walk in interviews.
 Headhunters can be used when senior management positions become vacant.
Headhunters will use their knowledge of the employment market to find suitable
candidates.
Threats
 Just as Telenor, Ufone’s greatest threat is its competitors especially Telenor and AlWarid. These companies have introduced new technologies with consumer friendly
packages. Ufone will have to devise its defensive strategies tactfully in order to retain
its share in the market
 Changing technology is also a threat for Ufone because things are changing so
frequently in the market with the change in technology.
7 CONCLUSION & RECOMMENDATION
Improvise The HR Process
Although it was stated by the HR heads that they follow a good and systematic process but
when we went around asking the employees they told that the HR process is not up to the
mark.
They should follow the world standard or the HR 360 degree standard where not only the
boss evaluates the employees but the whole panel and the colleges and sub ordinates also
evaluate the employee on work performance.
Shift To Be An Employee Oriented Company As Well
At the moment Ufone is just a procedure-oriented company. It should shift from that to an
employee oriented company so as to satisfy and motivate the HR. Ufone does not take its
employees into consideration so it should also value its staff.
Motivation
Again although Ufone HR management says that it motivates its employees but according to
the employees there is no motivational aspect present which gives a positive impact.
Have A More Professional Attitude
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Ufone does not follow a very professional attitude and a lot of biasness and personal
favoritism is present and employees are also evaluated on the personal relations with their
respective upper management with out taking performance much into consideration.
Training Free Of Condition
At the moment Ufone does give the employees a lot of training sessions but they have a
condition on that. The respective employees has to sign a bond with the organization that they
will not leave the organization for a specified period of time lets say for 5 years and if they do
they would have to pay an amount of money as a fine if they have received the training. So
this bounds the employees willingly or unwillingly, which can have a positive impact
according to the company’s point of view only.
Redesign Of Payroll Process
Ufone need to redesign the payroll procession for the Human Resource Department because
it has duplication of steps.
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8 BIBLIOGRAPHY
 Human Resource Management
By: Decenzo Robbins
 Management
By: Weihrich koontz.
 Organizational Behavior
By: Stephen P. Robbins
 Principle of Marketing
By: Philip Kottler
 www.ufone.com
 www.mobilinkgsm.com
 www.telenor.com.pk
 www.waridtel.com
 www.paktel.com
 www.ptcl.com.pk
 www.pta.gov.pk
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APPENDIX – A: EVALUATION SHEET
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APPENDIX – B: EXPERIENCE LETTER
UNIVERSITY OF CENTRAL PUNJAB
MBA – 7 L1F07MBAM2175
32
Human Resource Management (Internship Report)
APPENDIX – C: JOINING LETTER
UNIVERSITY OF CENTRAL PUNJAB
MBA – 7 L1F07MBAM2175
33