PAKISTAN TELECOMMUNICATION COMPANY LIMITED
INTRODUCTION OF THE REPORT
1.1
Introduction
As parts of the academic requirement for completing BBA-IT. The students are
required to under go for two (2) months of internship with an organization. The
internship is to serve the purpose of acquainting the students with the practice of
knowledge of the discipline of banking administration. This report is about PTCL was
established in 1949 and since then, it has expended its network, becoming the largest
commercial corporation of Pakistan. It offers different products of services to its
customers.
1.2
Purpose of the report
The main purpose of the report in hand is together relevant information to compile
internship report on PTCL .
To observe, analyze and interpret the relevant data competently and in a useful
manner.
1.3

To work practically in an organization.

To develop interpersonal communication.
Scope of the report
As an internee in PTCL the main focus of my report research was on general
operation procedures in one of the branches of PTCL.
Similarly different aspects of overall of PTCL are also covered in this report.
1.4
Objectives of the report

Discuss thorough study of PTCL

To understand the various operations and to equip with practical knowledge of
the Pakistan Telecommunication Company Limited.
1.5
Limitation of the Report
Some thing is better than nothing. No matter how efficiently a report is conducted, it
cannot be perfect in all respects. This study was conducted in accordance with the
objectives of the report. The report may not include broad explanations of facts and
figures due to the nature of the report. Secondly, the limitation, which affects the
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
report, is the restriction on mentioning every fact of the PTCL due to the problem of
secrecy of the PTCL. In addition, the availability of required data was a problem as all
the documents and files are kept strictly under lock and key due to their strictly
confidential nature. Thirdly, the problem of short time period also makes the analysis
restricted as one cannot properly understand and thus analyze all the operations of
PTCL just a very short time of eight weeks.
1.6
Benefit of the Report
The report done will benefit the finance students because the financial analysis section
of this report comprehensively encompasses all respects of financial analysis.
Furthermore,
PTCL Bannu branch may also benefit from the recommendations made at the end of
the report.
1.7
Report Methodology
The report is based on my two months internship program in PTCL. The
methodology reported for collection of data is primary as well as secondary data. The
biggest source of information is my personal observation while working with staff and
having discussion with them. Formally arranged interviews and discussions also
helped me in this regards.

Primary data:
Primary data include, Personal observation and Interviews of The
Staff Members

Secondary data:
Secondary data consist of Manuals, Journals, magazines, Annual
Reports and Internet
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
CHAPTER#2
OVEREVIEW OF PAKISTAN TELECOMMUNICATION COMPANY
LIMITED (PTCL)
2.1 History of PTCL
After the partition of Indo-Pak subcontinent in1947, the areas that became part of
Pakistan were mostly neglected in respect of telecommunication services. The
supporting organization and manufacturing telecommunication equipment were
almost non-existent in Pakistan
2.1.1 The Pakistan posts and telegraphs department (1947 to 1962)
In 1947, the Pakistan Posts and Telegraphs Department was attached with the
Ministry of Communication. During the first fifteen years, a sound foundation was
laid by creating supporting organizations like telephone stores, workshops, training
centers, production and repair of equipments etc, necessary for running of PT&T
Department. However, telecommunication network systems remained limited to
major cities of the country. The Government of Pakistan started five-year plans to
build a proper base for systematic development of the telecom sector.
2.1.2 Pakistan telegraphs and telephone department (1962-1990)
With the expansion of the postal and telecommunication services, government
decided to split the PP&T Department into two departments i.e. Pakistan Telegraph
and Telephone Department and Pakistan Post Office Department. The process of
bifurcation was completed by July 1962. Significant developments took place during
the first forty years in terms of infra-structure development and transfer of technology
from EMD to digital switching systems and increase in telephone lines from 12,000 in
1947 to 922,000 in 1990, besides establishment of manufacturing facilities of various
types.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
2.1.3 Establishment of Pakistan telecommunication corporation (PTC)
In 1990, PT & T department was transformed into a corporation and titled as Pakistan
Telecommunication Corporation. The objective of this initiative was to provide
greater autonomy and flexibility to the organization in achieving its long-term
objectives
During the next five years, the telecommunications sector made tremendous progress
in the provision of telecommunication services. It started manufacturing and
production of
Telecommunication equipment/materials by using the latest technologies. During
PTC period the number of lines increased to 21, 26,054 in 1995, an increase of over
230 percent over 1990.
2.1.4 Pakistan Telecommunication Company limited (PTCL)
In December 1995, PTC was converted into a joint stock company under Pakistan
Telecommunication (Reorganization) Ordinance; assets of the PTC were divided
among
Pakistan
Telecommunication
Company
Limited
(PTCL),
Pakistan
Telecommunication Authority (PTA), National Telecommunication Corporation
(NTC) and Frequency Allocation Board (FAB). While policy was reserved for the
government, the regulation of the sector was entrusted to the Pakistan
Telecommunication Authority (PTA).
Frequency Allocation Board (FAB) was
created for the management of the radio frequency spectrum and National
Telecommunication
Corporation
(NTC)
was
created.
For
government’s
telecommunication services PTCL inherited about 94.8% of PTCL’s assets; including
2.862 million access line installed (ALI) and 2.228 million subscribers (ALIS). Later,
in October 1996, the parliament of Pakistan passed the Pakistan Telecommunication
(Re-organization) Act. PTCL was established in public sector as a joint stock
company in 1996 by enactment of the parliament of Pakistan. Pakistan
Telecommunication Company Limited (PTCL) was issued a license by Pakistan
Telecommunication Authority (PTA) to provide telecommunication services in
Pakistan for a period of 25 years commencing from January 1, 1996
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
2.1.5 Sale of 26% shares to Etisalat for $ 2.6 billion
The Emirates Telecommunication Corporation (Etisalat) offered the highest bid of$
2.6 billion for 26% shares of Pakistan Telecommunication Company limited (PTCL)
on June 19, 2005. On 13th march 2006 the government has signed an agreement with
Etisalat to handover the management of PTCL to them.
2.2 EMIRATES TELECOMMUNICATION COMPANY “ETISLAT”
Etisalat founded on 30th August 1976, the Emirates Telecommunication Corporation Etisalat provides telecommunication services to the United Arab Emirates and is one
of the leading service providers in the Middle East.
Etisalat is embracing new technology, new philosophies and new ways of doing
business. Their new corporate logo and identity is a catalyst to this change. The
identity has green background, which signifies solidity, inspires confidence and
denotes Etisalat the mother brand.
The red dot represents technology and the world of communication. The 3 curve
featured in the design not only represent the letter ‘E’ which stands for Etisalat and
the emirates but also signifies an entity that is growing outside its boundaries and
expanding into strategic business locally and internationally. The red dot and the
curve together represent the image of a stylized of a stylized “human” entity reaching
out for excellence in service levels, receptive to new ideas and philosophies in a world
of dynamic change.
Etisalat deals in voice communication, wireless communication and data
communication. Etisalat was one of the first to introduce mobile telephones in the
Middle East in 1982 and launched the GSM service in September 1994.
Etisalat celebrated its 25th anniversary in September 2001. The telecommunication
services they have been providing match the highest standard in the industry.
Etisalat was the highest bidder for the acquisition of 26% stake in PTCL. This latest
win reflects the determination of Etisalat to strengthen its position as the leading
telecommunication in the region. On 10th December 2007 the government has signed
an agreement with Etisalat to handover the management of PTCL to them. This latest
acquisition further positions Etisalat amongst the leading international telecom
players worldwide. Etisalat offers world-class standards in customer service and state-
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
of-the-art technology wherever it operates, a very attractive proposition for strategic
partnership and alliances
2.3 MISSION STATEMENT OF PTCL
A company’s mission statement is typically focused on its present business scope“who they are and what they do” mission statement broadly describes an
organization’s present capabilities, customer focus, activities and business makeup.
Pakistan Telecommunication company limited statement is stated as
1
An organizational environment that fosters professionalism, motivation and
quality.
2
An environment that is cost effective and conscious.
3
Services that are based on the most optimum technology.
4
“Quality” and “Time” conscious customer service.
5
Sustained growth in earnings and profitability.
2.4 STRATEGIC VISION OF PTCL
Strategic vision is a roadmap of a company’s future- providing specifics about
technology and customer focus, the geographic and product markets to be pursued,
the capabilities it plans to develop, and the kind of company that management is
trying to create4. Strategic vision of Pakistan Telecommunication Company is “to be
the leading ICT service provider in the region by achieving customer’s satisfaction
and maximizing shareholders value.
2.5 CORE VALUES OF PTCL
Values are general statements, procedures or understandings that guide or channel
thinking in decision making. It provides direction for action and regularizes the
decision making in certain circumstances.
Pakistan Telecommunication Company limited defines its values as
1
Professional Integrity
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
2
Customer Satisfaction
3
Teamwork
4
Company loyalty
2.6 OBJECTIVES OF PTCL
Objectives are the ends towards which activity is aimed. These are the results to be
achieved. Pakistan Telecommunication Company limited states its objectives as under
1. To provide quality services to its customers in Pakistan.
2. To provide maximum satisfaction to its customers by using the latest
technology.
3. To increase the worth of owners.
4. To lead the telecommunication industry in Pakistan.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
01, 2005 to April 12, 2006, the company suffered a loss of Rs.114 million on
revenues of Rs.1, 142 million. PTCL management on its part has completed all
formalities pertaining to disinvestment of TIP and transfer of shares to Ministry of IT
and T, Govt of Pakistan.
2.7.4 Carrier Telephone Industries (CTI)
Carrier Telephone Industries (CTI) was incorporated as a private limited company in
the public sector in 1969 in collaboration with Pakistan telecommunication Company
Limited and Siemens AG, Germany. CTI was established to acquire, develop and
produce latest state-of-the-art equipment in the field of transmission technologies,
electronics and other telecommunication areas. It provides a sophisticated technology
base for the country. Today CTI is manufacturing SDH transmission equipment,
Multiplexing products, Optical Fiber and Digital Radio Systems. In addition it has
also ventured in the manufacturing of Microwave Gid Parabolic Antennae, PABX and
Pai Gain System. It has recently started assembly of personal Computers, besides
selling other Electro-mechanical accessories, measuring instruments and other
products. The company employs latest manufacturing techniques i.e. Surface
Mounting Technology (SMT) for mounting components and its robotics
arms/machines provides excellent support for after sales services. It is equipped to
train and fully support its customers.
CTI was privatized in November 2005 as part of the PTCL privatization commitment.
PTCL’s equity investment of Rs.8 million was sold for Rs.500 million to Siemens
AG.the privatization commission has not yet released the proceeds of this sale to
PTCL. The company had earned a current year profit of Rs.2 million before
privatization in November 2005.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
CHAPTER#3
ORGANIZATIONAL STRUCTURE OF PTCL
Organization is the end result of organizing. So organizing is the part of management
that involves establishing intentional structure of roles for the people to fill an
enterprise. It is process of breaking down the overall tasks of an enterprise into
individual assignments/activities and then getting them put together in units,
departments or in groups along with the delegation of authority to the manger.
Organizational structure implies a formalized intestinal structure of roles/positions.
A well-developed and properly coordinated structure is an important requirement for
the successful operation of any organization. It provides the basic framework with in
which functions and procedures are performed. In PTCL the functions of planning
and policy formulation are carried out by the Board of Directors whereas the
management of the organization is carried out by the executive management.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
Organizational Chart
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
3.1 Management
WalidIrshaid
President & Chief Executive Officer
Ali Ahmed Yarouf Al Naqbi
Deputy CEO PTCL
Muhammad
Nehmatullah
Toor
S.E.V.P (Finance) / Chief
Financial Officer (C.F.O)
Yasir Ansari
Chief
Information
Officer
(C.I.O)
Mohammad Nasrullah
Chief Technical Officer
(C.T.O)
Syed Mazhar Hussain
S.E.V.P (HR / Admin &
Procurement)
Sikandar Naqi
S.E.V.P
(Corporate
Development)
Naveed
Saeed
S.E.V.P
(Commercial)
Mr
Tariq
Salman
S.E.V.P
(Business
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
Zone North)
Mr
Abdullah
Yousef
S.E.V.P Business Zone
South
Farah Qamar
Company
Secretary
Legal Affairs
Dr.Syed
Mohammad A
nwar Shah
3.2 Board of Director
It is the highest body of PTCL, which has been vested with the function of policy
formulation. The first Director was elected by the subscribers in their first meeting.
Under the rules, the directors appointed are not being less than sever in numbers.
There is general body meeting once a year of all the shareholders to elect the members
of board of directors. A director once elected, holds office for a period of three years
unless he resigns, becomes disqualified from being a director or otherwise ceases to
hold office. A retiring director is eligible for re-election.
Presently the board of directors has Ten members, As follow
Mr. Abdulrahim Abdulla Abdulrahim Al Nooryani
Chairman & Chief Executive Officer,
Etisalat International Pakistan L.L.C
Executive Vice President Contracts &
Administration
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
Etisalat, UAE.
Mr. Salman Siddique
Secretary (Finance), Ministry of
Finanance
Government
of
Pakistan,
Islamabad
Mr. Abdulaziz Ahmed Saleh Ahmed Al Sawaleh
Chief Human Resources Officer
Etisalat, UAE
Mr. Mushtaq Ahmad Bhatti
Member Telecom
Government of Pakistan,
Islamabad
Mr. Fadhil Mohamed Erhama Al Ansari
Executive Vice President Engineering
Etisalat, UAE
Mr. Khursheed Ahmed Junejo
Ambassador, Embassy of Pakistan
Abu Dhabi, UAE
Mr. Abdulaziz Hamad Omran Taryam
General Manager, Northern Emirates
Etisalat, UAE
Dr. Ahmed Al Jarwa
General
Manager
Real Estate
Etisalat, UAE
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
Ms. Farah Qamar
Company Secretary PTCL
PTCL Headquarters,
Islamabad
3.3 PRODUCTS AND SERVICES
After the deregulation of the telecommunication sector PTCL has brought a lot of
variety in its products and services to face the challenging task in the new
environment in order to sustain profit margin at the current level. PTCL is trying to
improve its products and services and make it more cost effective for the customers.
The product and services that PTCL is providing to its customers are as follows.
3.3.1 Prepaid calling cards
PTCL prepaid calling cards gives nation wide access with international facility. It
comes in easily affordable denominations of Rs.100, 250, 500, 1000 & 2000. These
cards are easily available throughout the country and it is easy to use it from any
PTCL digital phone. Customer has to pay neither line rent nor bill. In November 2003
PTCL launched 100 denomination prepaid calling card with advanced features5.
3.3.2 Aasan prepaid telephony
Aasan phone is a landline prepaid telephony service, launched in May 2004. This
service works just like the other prepaid services where accounts are recharged with a
prepaid phone card. The prime objective of this service is to facilitate the customer in
getting a new connection with minimal documentation. Aasan cards are available in
Rs.500, 1000 and Rs.2000 denominations.
3.3.3 Toll Free Service (0800)
This service is available to corporate customers for their customer’s convenience. It
provides corporate customers with effective and dynamic telemarketing tool.
Telemarketing is becoming the most popular way of marketing around the world as
selling products and services on the phone is the most economical i.e. you reach more
customers in minimum time. Toll free numbers start with 0800. Customers can call
the company on toll free number with out any cost.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
3.3.4 Universal Access Number (UAN)
UAN allows the customers to call different offices of a company in the different cities
by the same number. UAN consists of six digits preceded by three digit code of 111,
common to all UANs e.g. 111202020. UAN operates on existing telephone
connection without disturbing normal phone number. UAN service is ideal for
organizations engaged in marketing of products or services. UAN enables quick and
easy access to make queries and complaints, increases customer satisfaction. It is time
saving, convenient and cost saving for customers. PTCL has the policy of “First
come, first served” i.e. customers can choose UAN of their own choice which is
simple and memorable. UAN service is available in 50 major cities of Pakistan.
For installation of UAN one has to fill a form and submit it to that very office. Its
installation fee for one office is Rs.20, 000, 40,000 for two offices and 60,000 for
three offices while further 15,000 for additional office. Customer has to pay its
recurring charges in advance on quarter basis i.e. Rs.3000 per quarter per office.
NTR-1 has shown billing of Rs.255, 000 for the last quarter of 2006 from 36
customers.
3.3.5 Universal Internet Number (UIN)
Due to the boom in telecom sector ISPs continue to mushroom at around the country.
UIN is a number starting with 131 used for accessing internet e.g. 13199199. UIN
number is assigned to each ISP by PTA. The call dialed is charged as one local call
irrespective of its duration. Internet service in Pakistan has constantly improved due
to the technological advancements.
Installation charges for UIN is Rs.20, 000 while recurring charges are received in
advance on quarter basis at Rs.3000 plus 15% GST per quarter per number. NTR-1
has shown billing of Rs.255, 000 while received Rs.96, 000.
3.3.6 Premium rate service (0900)
0900 numbers are used throughout the world to provide information via telephone at
a premium rate higher the regular call charges. In case of these calls 60% of the total
revenue goes to the company called while 40% is transferred to PTCL.
3.3.7 Virtual Private Number (VPN)
VPN is another service that provides convenience to corporations and business with
multiple-location offices or branches. Users of VPNs can establish private net works
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
on PTCL lines without having to install their own dedicated network resources.
PTCL’s installed capacity for VPNs by the end of Jun 2005 was 1000 lines while 978
lines were provided to 65 customers.
3.3.8 ISDN (BRI/PRI)
Broadband services to household and small medium sized organizations are also
provided through Integrated Service Digital Network (ISDN). It transfers the data in
digital form. This service has now been available for some time and its users are
benefiting from the
Advantageous features like faster data communication, high-speed Internet and
clearer voice through International Gateway Switches installed at Islamabad and
Karachi.
Basic Rate Interface (BRI) has three channels, two for the data transfer and one for
security. PTCL charges only for 1.5 channels at the rate of Rs.174 per channel.
Primary Rate Interface (PRI) has 30 channels for data transfer and PTCL charges ISPs
only for 20 channels at the rate of Rs.174 per channel. The rest 10 channels are their
sole profit.
There are two types of charges in case of PRI
1
Hunting charges:- At the rate of Rs.25 per channel i.e. 25*20=Rs.500 per PRI
2
Rent charges:- At the rate of Rs.174 per channel i.e. 174*20=Rs.3480
15 % general sales tax is charged on the above two charges. And if an ISP doesn’t pay
their dues before due date, is charged for 5 % surcharges on the current dues.
3.3.9 Digital Subscriber Line (DSL)
DSL stands for digital subscriber line. With the help of DSL a customer can enjoy Fax
and Internet facility without keeping their normal telephone number busy. Customer
can enjoy voice chat from telephone with high speed. It is of different band width
64kbps, 128, 256 and of1024kbps. PTCL does not sells this directly to the ultimate
customers but sell it to the ISPs like Paknet, Comsat, Micronet, Cybernet, Dancom
etc. PTCL charges ISPs on the basis of their customers. PTCL charges either Rs.217
per connection per month from ISPs when they give connection or 5 % of the total bill
for which ISPs charge their customer depending upon the contract signed between
PTCL and ISP. In the second case the ISP is required to send a copy of all the
customers’ bills to the PTCL revenue department.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
3.3.10 Digital Cross Connect (DXX)
DXX service is used for data connectivity. PTCL charges their customers in advance
on the quarter basis. PTCL charges their customers for three types of charges.
1
Equipment charges: - PTCL charges for Rs.3636 for DXX of 64kbps and
Rs.7272 for 128kbps or 192kbps.
2
Line charges: - PTCL charges Rs.142 per annum per km for 64kbps, Rs.277
per annum per km for 128kbps and Rs.350 per annum per km for 192kbps.
Installation charges for DXX are Rs.50, 000 for 64kbps, Rs.100, 000 for 128kbps and
for 192kbps.
3.3.11 Local lead
Local lead is used for data transfer. PTCL charges yearly billing of Local Lead. PTCL
charges Rs.1440 per annum per km i.e. Rs.120 per month per km. Its billing format is
Total dues=no of PRIs*120* no of months*distance in kms+15% GST
3.3.12 2MB
PTCL charges Rs.2536 per annum per kilometer. A customer is charged by the
formula
Total dues= 2536/12 *no of months *distance in km+15% GST
Its billing is also received quarter wise. 2MB bill contains details like name &
address, name of circuit, installation Date, Circuit speed, Distance in km and period of
billing.
3.4 DIGITAL FACILITIES
3.4.1 Call waiting
Through this facility a customer during conversation can hear a beep indicating that
another call is coming. A new incoming call can be attended by tapping which will
put present call on hold, and next incoming call can be attended. This service can be
availed free of cost through dialing customer access point by UAN 111465465.
3.4.2Code barring
Customers can prevent misuse of their telephone with the help of code barring
facility. This can be changed by the customer if need arises. Customers can activate
and deactivate this facility from their telephone sets.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
3.4.3 Call transfer
3.4.3.1 Immediate Transfer
A customer with this facility may transfer his calls to another predefined desired
number. A change in dial tone will be observed.
3.4.3.2 Call Transfer on Busy
In case the customer number is busy, an incoming call will be transfer automatically
to another predefined specified number.
3.4.3.3 Call Transfer on No Reply
In case there is no reply, call will be transferred automatically to another predefined
desired number.
In such cases Customer is required to feed desired telephone number on which call
transfer is required. The facility can be activated through a written application to the
concerned DE Phones along with copy of NIC.
The customers can activate or deactivate the facility from their own telephone sets. It
is offered free of cost by PTCL.
3.4.4 Abbreviated dialing
Dial a short number (single digit) to get desired number. A maximum of 10 such
numbers can be registered. The facility can be activated through a written application
to the concerned DE Phones along with copy of NIC. The customers can activate or
deactivate the facility from their own telephone sets. PTCL charges Rs.25 per month
for this facility.
3.4.5 Absent Customer
A customer with this facility may inform the calling person about his non availability
at the home or office. This calling person will get an announcement or a special tone.
The facility can be availed at the cost of Rs.25 per month through a written
application to the concerned DE Phones along with copy of NIC. The customers can
activate or deactivate the facility from their own telephone sets.
3.4.6 Caller Line Identification (CLI)
CLI allows you to identify the caller before picking up the phone. The customer can
check obnoxious calls and can keep the complete record of all incoming / outgoing
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
calls with time and date to take any action. This facility can be obtained by dialing
UAN 111 465 465 and where this number is not available, by contacting the
concerned DE Phones. PTCL charges Rs.30 per month for this facility.
3.4.7 Don't disturb
Activating of this facility will stop all incoming calls for a pre determined time slot.
This will allow customers to be in peace if he does not want to be disturbed during
such time. The caller will get a pre-recorded message. The facility can be availed
through a written application to the concerned DE Phones along with copy of NIC.
PTCL charges Rs.25 per month for this facility. The customers can activate or
deactivate the facility from their own telephone sets.
3.4.8 Hot line
This service enables customer to be in contact just by lifting the handset and without
dialing the number. System automatically dial a preprogrammed number (after 5
seconds delay), most appropriate for frequently dialed numbers. The facility can be
activating through a written application to the concerned DE Phones along with copy
of NIC. The customers can activate or deactivate the facility from their own telephone
sets. It costs Rs.25 per month to the customers.
3.4.9 Wake up
Ringing of a Customers telephone is initiated automatically at the fixed time. In case
Customer does not answer the ring at the first offering, subsequent rings will follow
after five minutes. You can obtain this by dialing 14.each time you dials it, One Local
call is charged at the rate of Rs.2.01.
3.5 MARKETING STRATEGIES
3.5.1 Marketing position
PTCL is a market leader in the telecommunication industry. It holds the largest
market shares. Till January 2003 PTCL had monopoly in the telecommunication
industry, but in
January 2003 the deregulation policy of Government; gave an end to the PTCL
monopoly.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
Calling Line Identification (CLI) allows you to identify the caller before picking up
the phone. For a customer to enjoy this service needs a telephone set with display
capability. CLI keeps complete record of outgoing and incoming calls with time and
date.
3.5.3.5 Internet Accessibility
Ufone is the subsidiary of PTCL. In mobile phones Ufone was the first to provide
internet accessibility through GPRS. One can send and receive a message through
Ufone by e-mail address.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
CHAPTER#4
OVEREVENUE OFFICE BANNU OF PTCL
4.1 Introduction
NWFP has been divided in two regions i.e. NTR-I and NTR-II while NTR stand for
northern telecom region. Regional office Bannu comes under NTR-II. Other areas in
NTR-II are D.I.khan, revenue office, thall revenue Office, and revenue office kohat.
Before 1992, all the exchanges of Bannu region worked under regional office D.I.
Khan NTR-II (northern telecom region-II). In 1992, a camp has been established in
Bannu which provide telecom services to the people of Bannu. In 1993, formal
revenue office has been established in Bannu.
There are four sub-divisions of revenue office Bannu which are lakki sub-division,
karak sub-division, North Waziristan sub-division, and Bannu sub-division.
There are nine exchanges which work under Bannu sub-division which are discussed
in the NTR-II organizational chart in detail.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
4.2 Regional hierarchy
Northern Telecom Region-II
Director Revenue &
Finance (Head)
R.O D.I
Khan
R.O Bannu
Bannu SubDivision
Lakki SubDivision
R.O Thall
North Waziristan
Agency
R.O Kohat
Karak SubDivision
BNU-I (397)
BNU-II (335)
NZB (584)
Town (869)
Kakki (590)
Nurar (591)
Ghoriwala
(589)
Hawed (713)
Jehangir Lalozai (713)
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
4.3 Bannu Revenue Office Organizational Chart
Revenue
Officer
Senior
A/C Clerk
Senior A/C
Clerk
Office
Assistant
Junior A/C
Clerk
Telephone
Operator
Naib Qasid
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
4.4 Revenue Office Members

Revenue Officer => Qazi Ishfaq-ur-Rehman

Senior Account Clerk=> Moh: Anwar Khan

Senior Account Clerk=>Aminullah Khan

Office Assistant => Latifullah Khan

Junior Account Clerk=> Khalid Javeed

Telephone Operator=> Mohammad Usman

Naib Qasid=> Habibullah Khan
4.5 Products and Services of Revenue Office Bannu
The product and services that revenue office Bannu is providing to its customers are
as follows.

Prepaid calling cards
PTCL prepaid calling cards gives nation wide access with international facility. It
comes in easily affordable denominations of Rs.100, 250, 500, 1000 & 2000. These
cards are easily available throughout the country and it is easy to use it from any
PTCL digital phone. Customer has to pay neither line rent nor bill. In November 2003
PTCL launched 100 denomination prepaid calling card with advanced features.

Aasan prepaid telephony
Aasan phone is a landline prepaid telephony service, launched in May 2004. This
service works just like the other prepaid services where accounts are recharged with a
prepaid phone card. The prime objective of this service is to facilitate the customer in
getting a new connection with minimal documentation. Aasan cards are available in
Rs.500, 1000 and Rs.2000 denominations.

Toll Free Service (0800)
This service is available to corporate customers for their customer’s convenience. It
provides corporate customers with effective and dynamic telemarketing tool.
Telemarketing is becoming the most popular way of marketing around the world as
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
selling products and services on the phone is the most economical i.e. you reach more
customers in minimum time. Toll free numbers start with 0800. Customers can call
the company on toll free number with out any cost.

Universal Internet Number (UIN)
Due to the boom in telecom sector ISPs continue to mushroom at around the country.
UIN is a number starting with 131 used for accessing internet e.g. 13199199. UIN
number is assigned to each ISP by PTA. The call dialed is charged as one local call
irrespective of its duration. Internet service in Pakistan has constantly improved due
to the technological advancements.
Installation charges for UIN is Rs.20, 000 while recurring charges are received in
advance on quarter basis at Rs.3000 plus 15% GST per quarter per number. NTR-1
has shown billing of Rs.255, 000 while received Rs.96, 000.

Premium rate service (0900)
0900 numbers are used throughout the world to provide information via telephone at
a premium rate higher the regular call charges. In case of these calls 60% of the total
revenue goes to the company called while 40% is transferred to PTCL.

Digital Subscriber Line (DSL)
DSL stands for digital subscriber line. With the help of DSL a customer can enjoy Fax
and Internet facility without keeping their normal telephone number busy. Customer
can enjoy voice chat from telephone with high speed. It is of different band width
64kbps, 128, 256 and of1024kbps. PTCL does not sells this directly to the ultimate
customers but sell it to the ISPs like Paknet, Comsat, Micronet, Cybernet, Dancom
etc. PTCL charges ISPs on the basis of their customers. PTCL charges either Rs.217
per connection per month from ISPs when they give connection or 5 % of the total bill
for which ISPs charge their customer depending upon the contract signed between
PTCL and ISP. In the second case the ISP is required to send a copy of all the
customers’ bills to the PTCL revenue department. In Bannu area there are 10000
connection
4.6 Billing System of Revenue Office Bannu
Revenue office Bannu issue three types of bills i.e original bill, duplicate bill and
defaulter bill. These are briefly discussed here;
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
1.
Original Bill
Oringle bill is that bill which issue first time. The total billing of bannu
division are one core, but received only 78lac the remaining become defaulter
and some of them not submit there bill in time.
2.
Duplicate Bill
If the original bill is not received by the customer due to some reason then the
customer is requires to submit a complaint in revenue office Bannu. The customer
service manager fills a duplicate bill manually for the customer. The customer then
makes payments on the bill in the concerned bank branch.
An example of the duplicate bill is given here;
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
CHAPTER# 5
DEPARTMENTS OF PTCL
Every organization is divided into definite departments. Each department performs
different kind of jobs and requires staff with specialized skills to handle particular job.
This increases the efficiency of workers and makes `
There are several aspects on which departmentalization in an organization can be
based. The division can be done on the basis of function, product, customers or
geographical locations.
The PTCL Head Quarters is comprised of several departments. The division is made
on the basis of function they perform. Hence it can be concluded that PTCL has
adopted the policy of functional departmentalization. The main departments of PTCL
are mentioned below.
1. Human Resource Management Dept.
2. Finance Dept.
3. Commercial Dept.
4. Operational Dept.
5. Technical Dept.
6. IT Dept.
7. Corporate Affairs Dept.
8. Special Projects Dept.
5.1 Human resource management
1
It is a huge organization and being considered as one of the biggest
company in Pakistan.
2
It has more than 56,000 employees and a huge network of organizational
management has been spread throughout the country.
3
PTCL is engaging a substantial number of experts and specialists of standing
caliber in different spheres of profession.
4
Job analysis and revision of jobs description was undertaken for improving the
performance standards.
5
To meet the future challenging situations in the face of privatization and post
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
monopoly challenges, a corporate culture and competitive environment has to be
developed, for which all the available resources have been taped.
6
Special training courses and workshops have been conducted for the top and
middle management through reputed organizations like UST Bannu.
7
Efforts are being made to improve productivity and efficiency of the Company
while emphasis is also being placed on effective management employees
relationship and better line of communications to achieve corporate goals
5.2 Finance department
This department is divided into following three sub-sections:

Finance

Accounts

Revenue
The Finance Wing deals with the revenue matters of the company & the Accounts
Wing is responsible for proper book-keeping of the financial transactions,
commercial audit & preparation of periodic accounts of the company. The
Accounts Office of PTCL is in Lahore.
Finance is the backbone of every organization because without finance any
organization can’t run its business. It plays an important role in determining the
long-term objectives and evaluating the feasibility of the business. The financial
activities of PTCL have been split up into three major branches: Finance, Accounts
& Revenue. The details regarding this section will be covered in finance section
with reference to my project
5.3 Commercial Department
1
Commercial section with qualified/experienced staff is being established.
2
Company section is taking both short-term and long-term view of emerging trends
of highly competitive markets as its monopoly is coming to an end.
3
It analyzes all the possible Company options, i.e. introducing new services,
adopting new technologies to maintain the leading role in the sector and preserve
its dominant position in the industry.
4
The Company likes to reiterate that it will continue to play a prominent role in
Telecom sector of Pakistan.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
5
It considers that one of the most important aspects of the forthcoming competitive
environment is pricing of products and services.
The new paradigm would require cost-based services with thin-profit margins but
higher volumes. Inherently, PTCL services were not cost-based. There were inbuilt subsidies and long distance calls, both domestic and international, were
highly priced. The Company, therefore, evolved strategies of gradual price
rationalization
5.4 Operational Department
Manages operations of PTCL HQ, with regional offices, branches, and, subsidiaries as
well as with other corporations.
5.5 Technical Department
This department is engaged in the management and control of technical aspects of the
company, e.g. technical manpower, technical training, technical equipment, etc.
5.6 IT Department
This department is established to introduce new and advance technology in PTCL.
Due to IT department working system is to converted in a computerized system.
5.7 Corporate Development Department
This department deal corporate level issues such as PTA, International Telecom
Union, Legal and Regulatory affairs etc.
5.8 Special Projects Department
This department is doing their activities on behalf of president.
5.9 STRUCTURE OF THE FINANCE DEPARTMENT
Initially, Finance Department was supervised by GM but after the recent change in
management structure, Finance Department of PTCL is headed by Senior
Executive Vice President (Finance), who is responsible for accounting and finance
functions of the organization. The Senior Executive Vice President is the head of
Accounts Department and the Vice Executive President Finance is the head of
Finance Department.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
Diagram 5.1
Hierarchal Structure of Finance Department
Hierarchal Structure of Finance Department
SENIOR VICE EXECUTIVE PRESIDENT
SENIOR VICE EXECUTIVE PRESIDENT
EVP(Accounts)
EVP(Accounts)
GM(Stores)
GM(Stores)
GM(Accouns)
GM(Accouns)
EVP(Finance)
EVP(Finance)
EVP(Revenue)
EVP(Revenue)
GM(Finance)
GM(Finance)
GM(Revenue)
GM(Revenue)
1
Senior Vice Executive President (Finance)
2
Executive Vice President (Accounts)
3
Executive Vice President (Finance)
4
Executive Vice President (Revenue)
5
General Manager (Store)
6
General Manager (Accounts)
7
General Manager (Finance)
8
General Manager (Revenue)
5.9.1 Number of employees working in the finance department
Total number of employees working in PTCL Finance Department and its attached
offices is about 7500. Each regional office has the following Finance & Accounts
wings:
Deputy General Manager (Finance)
1
Director (Accounts) Revenue
2
Director (Recovery)
1
Assistant General Manager (Finance)
1
Senior Revenue Officers
9
Revenue Officers
18
Assistant Accounts Officer
3
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
5.10 FUNCTIONS OF FINANCE DEPARTMENT
1
Finance system of the organization
2
Accounting system of the organization
3
Mobilization of funds
4
Generation of funds
5
Allocation of funds
5.11 Finance System of the Organization
Finance is the backbone of every organization because without finance any
organization can’t run its business. It plays an important role in determining the longterm objectives and evaluating the feasibility of the business. The financial activities
of PTCL have been split up into three major branches; Finance, Accounts & Revenue.
5.11.1 Finance Wing
G.M Finance heads this department. The responsibilities of the General Manager
(Finance)usually fall in the area of financial management, preparation of annual
budgets, determining the revenue targets for the year, investor, and banker relations
and controlling the Directors revenue in all the regions.
5.11.2Budget Wing
Budgeting is the most effective instrument to exercise quality control over the
financial resources of an organization and their better utilization. A budget is a
comprehensive financial plan setting forth the expected route for achieving the
financial & operational goals of an organization. The companies engaged in largescale business essentially have a budget department to carry out budgeting for the
coming financial year. Various functions performed by Budget Dept. of PTCL are:

Allocation of funds to different head of accounts.
Disbursement of funds or physical transfer of funds to different heads
of accounts.

Receive and analyze budget reports.

Recommended actions designed to improve efficiency where
necessary.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
5.13 SALES OF SHARES
Issuance of shares is the second basic source for mobilization of funds. PTCL has
issued capital in form of following two types of shares:
Authorized Share Capital
Ordinary ‘A’ Class Shares of Rs.10/- each. 111,000,000,000
Ordinary ‘B’ Class Shares of Rs.10/-each.
Total
39,000,000,000
150,000,000,000
1
“A” ordinary shares carry one vote
2
“B” ordinary shares carry four votes
5.14 GENERATION OF FUNDS
An organization can be called self sufficient if it is producing its maximum cash flow
from operating activities. The table and given below chart for last five years data
indicate that PTCL is producing maximum of its cash flows from operating activities.
Year
Total Revenue (in thousands)
2002
62,040,708
2003
66,426,624
2004
67,202,493
2005
74,124,000
2006
75,972,000
2007
69,085,436
2008
65,277,025
The main sources of funds in PTCL are its collection of bills. Funds generated
through operations for the last five years are Rs.315,660,954 (in thousands).
5.15 EXTERNAL BORROWING
Another source of funds to meet the needs for short-term financing in
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
PTCL is external borrowing from commercial banks4. PTCL takes loans from
the following commercial banks:
A Deutsche Bank. BN AMRO Bank Citibank N.A. Faisal Bank
Muslim
Commercial
Bank
Limited. Limited.
Standard Chartered Grind lays Bank Pakistan
Limited. HBL UBL
National
Union
Bank
of
Bank.
PICIC
5.16 ALLOCATION OF FUNDS
The funds generated are mainly utilized to finance the operation, to pay back shortterm loans for capital expenditure, pay dividends and to create reserve (unappropriated profits).
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
CHAPTER # 6
SWOT ANALYSIS
PTCL is a big organization regarding all the departments including Finance,
Operations, Human resource etc. there are several & weakness of these departments,
which will be discussed as follow:
6.1 STRENGTHS

THE BIGGEST FOREIGN EXCHANGE EARNER
PTCL is the biggest source of foreign exchange for Pakistan. It earns a lot foreign
exchange form its international traffic.

ADEQUATE FINANCIAL RESOURCES
PTCL earns billions of Rupees as a major source of capital. These adequate financial
resources not only enable the company to copy with any unexpected event but to
deploy its resources to increase product line and services without feeling any financial
difficult.

FREE FROM COMPETITIVE PRESSURE
PTCL has no competitor in the market and other companies are legally not allowed
enter in competition with PTCL before 2003.So PTCL is performing its activities
freely without any pressure.

LEADERSHIP IN THE MARKET
PTCL is leading Company to provide telecom facilities in the Pakistan. PTCL aims at
using the latest technology in the field of engineering and IT for its services. It is also
getting constancy from international Companies in order to remain leader in telecom
sector.

DEQUATE FINANCIAL RESOURCES
PTC learns billion of rupees as profit per year and has enough money in its general
reserve. It also has debit as a major source of capital. These adequate financial
resources not only enable the Company to cope with any unexpected event but no
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED

RECRUITMENT
PTCL can also improve the human resources by the selection of competent person for
different departments and this can only possible by discouraging the corruption and
favoritism.

ADDITION TO THE PRODUCT LINE
Top management of Organization can make additions to its existing product line by
providing more services. In this way it can increase its revenue and customer
satisfaction. This requires market research.
PTCL has already captured the industry so all kind of the opportunities are for PTCL
till the end of monopoly.
6.4 THREATS;

EXCHANGE RATE RISK
Exchange Rate Risk will cause PTCL net exchange loss on foreign loans. Devaluation
of rupees will increase the cost of production, machinery, and almost all the
equipment,
imported from foreign countries. So exchange rate risk will affect the Profitability of
PTCL and also increase the risk of getting foreign loans in future.

GOVERNMENT LEGISLATION
Government policies can affect the performance of PTCL. Hence government policies
will be a real threat for PTCL if they are not in favor of PTCL business activities. This
can affect the recruiting policies of PTCL.

TURNOVER
At the end of the monopoly, competitors will enter the industry and the completion
will increase as a result of which they will offer high pays and facilities to skill-person
of the industry. This can increase the turnover of PTCL, which can create a serious
threat for the organization.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
Strength (s)
1.
2.
3.
4.
Newly launched products
Monopolistic position
Skillful Human resources
Adequate financial
resources
5. powerful R &D
6. Leader of the market
7. Governmental support
8. Large earnings
9. Best policies
10. Best employees
compensation
11. Latest technology
12. Wide coverage
13. Quality of services
Weaknesses (w)
1. Insufficient
Human
Resource
2. Only seniority
based
promotion
3. Lake of
training
program
4. Lack of
customer
focus
5. Old age
employees
6. Lack of
aggressive
marketing
7. Ineffective
marketing
dept
8. Customer
dissatisfaction
9. Delayed
responses
10. Lack of
customer
services
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
Opportunities (O)
1.
Growing demand
2.
Market
development
3.
Market penetration
4.
Launch of new
products
5.
Growth in telecom
industry
6.
Customer
awareness of
technology
7.
Value Added
Services
8.
Growing DSL
customers
Threats (T)
1. Downsizing
2. Exchange Rate Risk
3. Law and order
situation
4. Political situation
5. Arrival of new
competitors in the
market
6. up-to-date
technologies of
competitors
7. Migration to satellite
and cellular
telephony
(S-O)
1. launch new products
glancing the high
demand
(S1,2- O1) INTENSIVE
2. develop market share on
the basis of skillful HR
(W-O)
1. increase
personnel
(W1,O1) intensive
2. start aggressive
marketing
(W6,O2, 3)
intensive
(S3,O2,O3) INTENSIVE
3. could launch new
products formula through
proper research
(S5,O4) intensive
(S-T)
1. Buy new machinery
(s4,T6)defensive
2.
(S2,T5) integration
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1. arrival of new
competitors
(T5,W1,7)
2. (w2,3, T1)
3. (W8,9,10-T7)
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
CHAPTER# 7
PROBLEMS AND RECOMMENDATIONS
PROBLEMS
The over all performance of PTCL has been declining after privatization. The main
signals of performance trend are summarized below:
1
There is an increasing trend in the revenue until 2006 after which it has
declined significantly.
2
There is no further increase in the general reserve after the year 2005.
3
Operating profit margin shows increase in trend for years 2004, 2005, 2006
but it decrease for 2007 and further decrease for year 2006.
4
Operating cost for year 2006 was higher by 23% while for the year 2007 was
5.25% higher then last year,
5
Return on equity started decreasing after privatization, while amount of
dividend, after decreasing in year 2006, raised in 2007 and again decreased in
2008
6
The property, plant and equipment of the company is in increasing trend
7
Debt to equity ration is increasing from 2006 to 2008.
Aside from the numerical performance indicators, PTCL took several steps to
commence the journey to bring a culture charge in the organization. This entails
putting greater focus on customer service and emphasizing merit, integrity and
openness in the Company’s business practices and process. So there is a hope that
numerical performance positive results in near future.
Moreover since the tele-density of mobile phones has grown a lot, so there are no
further chance of huge increase in tele-density for mobile companies.
RECOMMENDATIONS
Keeping in view the aforementioned hurdle / problems the following are some
remedial measures, which help to create a better system.
1
This report shows that existing system is not up to the standard and must be
replacing with an efficient one.
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
2
A comprehensive financial information system is required to be streamlined, so
that availability of accurate data records may be insured.
3
It is proposed that the system of funds allotment may immediately be
discontinued and the Regional Offices may be allocated lump sum fund. This
will surely help to speed up the execution of the work.
4
All the tool of enforcement of strict financial discipline may be under taken in
order to monitor the whole system.
5
All the records should be computerized and for this purpose special computer
program should be used.
6
Employees should be equipped with up to date IT skills and for this purpose
refresher & training courses should be designed.
7
There should be a total computerized accounting system to save the precious
time.
8
The officer may be trained to adopt company culture soft-spoken, good relations
with customers and target oriented.
9
Finance and marketing offices and engineers may be sending to international
seminars/ workshops to get knowledge of new technique and procedures.
10
There should be effective human resource department in order to get right
people on the right job. Promotion should be made the basis of performance
rather than seniority.
11
Moreover, the element of corruption exists throughout the operation and finance
department, which must be checked to get high performance.
12
Strategic planning and especially long term planning should be done in a way,
which doesn’t only fulfill the requirement of today, but also those of future.
13
Most of the PTCL personnel are non-professional; I suggest that the competent
authority of PTCL should be appointing professionals.
14
Almost all employees of PTCL are worried about their jobs the competent
authority should immediately announce the policy of PTCL in this regard.
15
There should be effective human resource department in order to get right
people on the right job.
16
Over staffing and unbalanced distribution of employees in departments. Like all
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PAKISTAN TELECOMMUNICATION COMPANY LIMITED
the government and semi government institutions PTCL has also excessive staff
17
than required. In order to increase the efficiency of worker job is assigned to its
caliper to develop his interest in work that increase the out put and decrease the
overall cost of organization.
18
In the company there is an unnecessary emphasis on documentation. In
transitions a lengthy procedure of paper work is involved that decrease the
efficiency and results in wastage of time. It should be the duty of management to
automate the documentation of record on line to all offices at same time.
19
There are very few programs for career development of the employees. People
working in one section or department from years are still with the same
knowledge and style of doing job. There should be proper career planning of
employee that not only sharpens the skills of the employee & improve its
efficiency but also results in better and improved output for the organization.
20
Some employees are working in the same department or section since they
are appointed.
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BIBLIOGRAPHY
1
C.James, W Achowied. 1999. Financial management 11th edition: printice
Hall.
2
Hienz Weihrich and Harold Koontz. Management, 10th edition, New York: Mc
Graw-Hill Inc.1994.
3
Annual Internship Report
4
PTCL Annual Report 2006.
5
PTCL Annual Report 2007.
6
PTCL Annual Report 2008.
7
PTCL Finance Department
8
Sekran, U.2000 Research Methods of Business USA. John Willey & Sons, Inc
9
Thompson S.L. strategic Management concept& cases, New Delhi Tata
Megra-Hill publishing Company Ltd
10 http://reality-vids.com/categories/sleeping/30/
11 http://dictionary.reference.com/browse/civilization
12 http://www.historyguide.org/ancient/ancient.html#table
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