Final Zong Porposal,

PROJECT PROPOSAL CMPak Limited

(ZONG)

Submitted By: Atif Ali Raza Reg: bag-f06-009 Program: Master in Business Administration

Department of Management Sciences The University of Lahore Date: 04/05/2009

1

1. BACKGROUND OF THE COMPANY History of Paktel Paktel

is

a

mobile

telecommunication

company

in

pakistan.It was the first ever company granted license to carry out up

by

cellular phone services in Pakistan, set cable

services

until

&

wireless.

2004,when

It

the

carried

company

out

AMPS

launched

GSM

services as well. Its main competitor emerged in late 1990s as Instaphone and soon began to dominate the market. However after the launch and rapid success of Mobilink in 1998, both services lost market share. In 2003,

Millicom Corporation, who at that time were

majority owners of

Instaphone, bought Paktel for a

sum rumoured to be $1 from Cable & Wireless. Millicom installed

a

new

management

team

headed

by

John

Tumelty, former CEO of Instaphone, and Chief Financial Officer David Ordman. In January 2007 Millicom sold Paktel for $284 million to China Mobile.

Sale of Paktel to China Mobile and Rename to CMPak Millicom January

International 2007,

said

it

Cellular will

S.A.

sell

on

its

Sunday,

88.86

22

percent

stake in Paktel Ltd. to China Mobile for $284 million, which includes the repayment of intercompany debt. The sale implies an enterprise value for Paktel of $460 million, Millicom said in its press release. Merrill

Lynch

transaction.On

advised 4

May

2007,

China Paktel

Mobile

on

was

renamed

the to

CMPak. And then, on 16 May 2

2007, China Mobile announced that it had upped its stake in CMPak to 100%. Moreover,

PTA

(Pakistan

Telecommunication

Authority)

has announced that it may resolve the frequency issue with China Mobile, as it was one of the main reason for pullout by Millicom International Cellular S.A. China for first time with investing in PakTel will try to rock the telecom sector of Pakistan by introducing its cellular service named Zong, which offers the most popular and most subscribers in universe. China Mobile is the world's largest telecom operator. Having a customer base of over 300 million customers, its network routes 700 million text messages every day and

handles

250

million

calls

every

hour.

China Mobile is perhaps the only cellular network that provides

uninterrupted,

reliable

coverage

through

tunnels, on highways, inside sky scrapper elevators as well

on

top

of

Mount

Everest.

One of the unique features of China Mobile servicing excellence is to customize its products, services and tariffs

to

suit

the

individual

needs

of

its

huge

subscriber base. There are hundreds of payment/tariff options pattern,

to

choose

budgetary

from

according

limitations

and

to

one's

nature

usage

of

use.

China Mobile's first overseas subsidiary, China Mobile Pakistan has the license to offer and operate voice, data

and

all

value

added

services

in

the

entire

country. One of the fastest growing cellular markets in the world, Pakistan is a key region that is likely to offer expansion opportunities as well the chance to make a difference in the lives of a growing clientele

3

that

is

demanding

and

understands

and

appreciates

better quality and service standards. CMPak has now rebranded Paktel to Zong

CMPak China Mobile Pakistan (CMPak) is a 100% subsidiary of China Mobile. The pioneering overseas set up of China Mobile

came

through

acquisition

of

a

license

from

Millicom to operate a GSM network in Pakistan. So far CMPak has invested more than US$ 700 million in the telecom sector in Pakistan and an additional US$ 800

million will

be invested

till the

end of

year

2008. With ambitious plans to cater to the fastest growing Pakistani market and to win over the ever demanding Pakistani customer, it will be offering unprecedented coverage, voice and data services as well as a wide range of tariff options to choose from. CMPak's edge comes from the experience and expertise of running the world's largest telecom service and the commitment they make to setting quality and customer relations standards. CMPak is geared to offer neatly packaged

VAS

products

that

will

benefit

the

individuals, corporates as well as small businesses. Led

by

cellular

a

team

of

professionals

communication, CMPak

from

the

is determined

field

of

to make

its mark in the Pakistani market and to change the way people communicate

4

Zong ZONG is the first International brand of China Mobile being launched in Pakistan. It is every one desired but few thought would be possible. Meant to empower and liberate the people of Pakistan in every nook and corner of the country. It will become a part of their hearts, their minds and bring about a change in their lives that the core essence of ZONG is to allow people to communicate at will without worrying about tariffs, network coverage, capacity issues or congestion. ZONG will be supported by ground breaking communications, trend

setting

customer

service

and

an

unmatched

product offering which will redefine rules of the game and

establish

ZONG

as

a

number ZONG

serious

contender

for

one

would

offer

its

customers

the

spot. with

entertaining

&

innovative value added services and will empower them by

giving

a

wide

variety

of

products,

services

&

content to choose from. We are privileged to be the pioneering country introducing this brand with others to follow. And God willing, together we will also make ZONG a success story for others to try and replicate.

ZONG’S MISSION “To be the leading mobile operator of Pakistan by

continuously

exceptional corporate between

innovating

quality citizen

china

services and

and

envoy Pakistan

and to of

offering be

good

friendship core

value

.responsibility makes perfection”

5

ZONG’S VISION “Making communication exciting”

Careers ZONG is committed on attracting and retaining the best human resource from all over Pakistan. Its also provides a working environment which satisfies the professional and personal needs of its employees.

2. PROBLEM STATEMENT The study is being conducted for “HRM practices and The High turnover in customer services of zong”

3. PROJECT OBJECTIVES The project gives the comprehensive review of HRM practices in zong and the factors which cause the employee turnover in organization. In this project we will find •

Analyzing

the

HRM

practices

that

are

performed in zong. •

What

factors

involved

in

increasing

the

turnover •

How zong improve HR practices in customer services center to improve human supply & demand connection. 6

•

Give suggestion To minimize high turnover

Specific Purpose The

main

Customer

franchises,

and

Services

inbound

in

call

zong

based

center.

The

on

CSC,

specific

purpose of this study is to analyzing HRM practices performed and high turnover rate in zong inbound call center.

4. LITERATURE REVIEW Call

centers

represent

a

critical

interface

for

retaining and developing loyal customers. Call center agents are expected to take on the responsibility of retaining

customers,

cross-sell

while

additional

present

a

favorable

brand.

That

can

be

also

products

image a

they

tall

of

and

the

order,

up-sell

and

services

and

company’s given

overall

that

in

a

typical organization, the call center is afflicted by the most unscheduled employee absences. A

recent

study

conducted

by

MetLife

explored

the

current state of call center productivity. They found that

call

centers

productivity unscheduled

are

particularly

challenges incidental

such

absences,

as

vulnerable

to

disability,

intermittent

family

medical leave, presenteeism, and turnover. The primary factors that contribute to these workforce management challenges

include the

inherent stress

that results

7

from the continually changing work environment and the demographic profile of call center workers. These

factors

are

explored

in

greater

detail

as

follows. Absenteeism The

main

personal stress,

reasons or

for

family

and

a

unplanned

illness,

sense

of

absences

work

include

conditions

entitlement.

Call

and

centers

typically have a higher rate of unplanned absences to deal

with,

which

increases

workplace

stress

and

decreases morale as remaining employees are stretched thin to cover for absent co-workers. “Employees who work in call center operations can be four times more likely than the other employees to miss work for psychiatric conditions such as stress or depression,” notes Dr. Ronald Leopold, vice president and national medical director, MetLife Disability. Presenteeism An

issue

that

has

only

recently

been

studied

and

measured is presenteeism. Presenteeism is defined as the

occurrence

of

employees

reporting

to

work

when

they are sick and therefore unproductive while they are

there.

In

addition

to

their

own

issues,

these

employees also pose a contagion risk to co-workers. Dealing

with

optimal

levels

individuals often

comes

performing second

to

at

less-than-

dealing

with

unscheduled absences, if any attention is paid to it at all.

8

High Turnover Call centers face staggering turnover rates, and the most

critical

inability

of

factor the

impacting

current

turnover

workforce

to

is

the

“fit”

the

demands of the job. Call center work requires staff to have

a

unique

blend

of

work-related

preferences:

working with a variety of unfamiliar people who are trying to resolve multiple issues; using a number of technologies and communication methods simultaneously; and performing routine and competitive tasks within a prescribed set of rules and procedures. “High turnover impacts customer service delivery and profitability. As consumers, we depend on call centers working

efficiently

consumers

and

to

businesses

resolve benefit

our

issues.

when

Both

turnover

is

minimized,” says Leopold. Family and Medical Leave MetLife data shows that the incidences for Family and Medical claims

Leave that

(FML)

do

stand-alone

not

overlap

with

claims

(i.e.,

disability

FML

claims)

among call center operations are three times higher than MetLife’s book of business for FML in non-call centers. Fifty-three to 60 percent of these claims are driven and

by the

commonly

headaches

and

employee’s own include back

self-reported illness,

psychiatric

problems.

problems,

Other

drivers

migraine of

FML

absence claims include the following: * Stress in the workplace, and family and personal illness.

9

*

Provider

communities

often

being

misinformed

about the definition of a “serious health condition” and

sometimes

being

too

willing

to

complete

the

certification form. *

Rigid

time

and

attendance

policies,

inadequate

vacation time, and the lack of an available flexible work schedule can contribute to employees turning to FML as a way to protect their jobs and meet personal obligations. Disability A review of short-term disability (STD) claims found that leading disability conditions among call center workers

included

conditions,

digestive

psychiatric

illness, illness

musculoskeletal and

respiratory

illness, with stress cited as the single most common contributing factor to these conditions. High-volume

call

centers

(such

as

in

the

telecommunications industry) are characterized by the most

stress,

short-term

disability

claims,

FML

absences and high turnover. To deal with the volume of calls, agents in these centers are typically measured on minimizing call time instead of the quality of the interaction

with

the

customer.

The

centers

that

experience lower amounts of stress and turnover are those

that

provide

full-service

solutions

to

their

customers.

10

5. IMPORTANCE OF THE PROJECT Employee

turnover

present

world

socioeconomic hyperactive the

is of

global

macro

turnover.

In

environment

no

until

growth,

dynamic

labor

environmental face

this business it

phenomenon.

economic

factors,

organizations

success

a

deals

the very

problem

almost of

with

this

and

and all

employee

competitive enjoy

the

changing

markets

factors,

can

In

business

sustain

turnover

the

problem

efficiently and successfully. In the near past, the competition

among

the

businesses

has

been

immense

which has increased the importance of human resource management functions. Now companies are very cautious about the human resource policies and there is a great emphasis on using the human capital efficiently not only to increase the productivity but also to get the competitive advantage. Employees are considered as the basic operating unit of an organization, organizations invest heavily to attract, recruit and then train the employees. And after all these efforts, losing these employees

is

a

great

loss

to

the

organizations.

Therefore, there is a great need to first, identify the

factors

that

cause

the

employees

to

leave

the

organization

7. RESEARCH DESIGN AND METODOLOGY The method for data collection is the main part of the study.  Primary data collection:

11

For primary data collection used following techniques: •

Personal Observation

•

Informal

Interview and

discussion with

CSO and

team leader •

Subjective

questionnaire

which

have

been

carefully administered  Secondary data collection. •

Brochures for information to customers

•

Researches

•

Internet and magazines

Sample In the project research about one hundred and fifty (150) questionnaires will be sent to the CSO of the zong call center

Population Although zong employed thousands of employees but the questionnaires

has

been

Restricted

to

the

CSO

of

inbound call center. A total of 150 CSO from different teams

and

batches

will

be

asked

to

complete

the

questionnaires

Limitation 

The

researcher

practices

wants

to

implementation

analysis and

the

identify

HRM the

important factors related to high turn over in zong call center

12



the researcher has the experience of working in zong

so

for

good

percentage

of

result

out

of

research the researcher have to directly linked with the CSO rather then link with the management because researcher things that with the aspect of management and team lead fear the CSO will not give proper answer of the questionnaire. 

The researcher conduct his research in zong call center at 68-E Jinnah Avenue, Blue Area Islamabad



The respondent are CSO of call center working in •

310 queue

•

789 queue

•

Mnp queue

•

Retailer queue

Time •

As

the

zong,

Have so

the

experience

researcher

will

in

working focus

in

keen

observation •

The

questionnaires

data

has

been

gathered

just once over a period of days, in order to answer help

the

research

of data

question

and assistance

so

with

the

of supervisor

the project is one-short study

13

8. EXPECTED OUTCOME This project is specifically about the inbound call center of Zong, that research is helpful to find the problem of turnover. And some solution regarding the job of CSO.which is useful for management to minimize the turnover rate and improve HR practices

9. REFERENCES 1. 2. 3. 4. 5. 6. 7. 8.

http://pakspeaks.com/2008/03/30/zong/ http://www.zong.com.pk/about_cmcc.html http://en.wikipedia.org/wiki/Paktel http://www.zong.com.pk/about_zong.htm http://www.pro-pakistan.com/2008/04/07/zong-a-cmpak-new-brand/ http://www.loma.org/res-07-05-callcenterprod.asp http://www.zong.com.pk/about_zong.htm http://www.pta.gov.pk/index.php?option=com_content&task=view&i d=850&Itemid=625 9. http://www.pdfcoke.com/doc/16379434/Nadir-Qaiser-ZongProject?autodown=doc 10. http://www.zong.com.pk/sales_csc.html

14

“HRM practices and the High turnover in customer services of Zong”

Dear Respondent! I am a student of The University of Lahore, Islamabad campus. I am conducting a research on HRM practices and high turnover in customer services in Zong, under the supervision of Miss Sarah sallahudin. This research is for the wealth of CSO of zong; your responses are strictly confidential. In no way will your name (optional) or your answers be revealed out this questionnaire, I apologize for using your valuable time and hope that you will enjoy the questionnaire. (Please return the questionnaires as soon as possible) There is no right or wrong answers. Generally your first reaction is the most accurate. Please answer all questions as best as you can. Thank you your kind cooperation, support and contribution towards this research. If you need finding of this research please send a request to [email protected] Name

Age

Batch

20-30

Gender

31-40

ID

 Male.  Female.

Years with zong

Highest Level of Education

Income Level

 Less than year.

 Bachelors.

10,000-20,000

 1-5 yrs.

 Masters.

21,000-30,000

15

QUESTIONNAIRE 1.

Why you join Zong? ______________________________________________ ______________________________________________ ________________________________

2.

How does Zong fulfill your personnel and professional needs? ______________________________________________ ______________________________________________ _________________________________

3.

What was your expectation from Zong? ______________________________________________ ______________________________________________ __________________________________

4.

Are they met? ______________________________________________ ______________________________________________ ___________________________________

5.

Are you happy with recruitment process at zong? ______________________________________________ ______________________________________________ _______________________________

6.

Do you think it is effective? ______________________________________________

16

______________________________________________ _______________________ 7.

Are you happy with the training program (manual & system) at zong? ______________________________________________ ______________________________________________ _________________________

8.

Do you thing it is effective? ______________________________________________ ______________________________________________ _________________

9.

Does zong participate in your development? ______________________________________________ ______________________________________________ __________________

10.

It is sufficient or not? ______________________________________________ ______________________________________________ ___________________

11.

Do you satisfied with the performance management system at zong? ______________________________________________ ______________________________________________ __________________

12.

Do you satisfied with the feedback system at Zong? ______________________________________________ ______________________________________________ _______________ 17

13.

Do you satisfied with the pay and reward system at zong? ______________________________________________ ______________________________________________ ____________

14. Do u satisfied with career development opportunities at zong? _______________________________________________________ _______________________________________________________ _______________

15.

How are your fellow workers and team leaders helpful? ______________________________________________ ______________________________________________ ______________

16.

Are you happy with the role that they play? ______________________________________________ ______________________________________________ _________________

17.

What factors do you think contributes to stress at your work place? ______________________________________________ ______________________________________________ _____________

18.

Do you happy the medical facilities provided by zong? ______________________________________________

18

______________________________________________ _____________ 19.

Are you satisfied the medical facilities that zong is providing at callcenter? ______________________________________________ ______________________________________________ ______________

20.

Are you happy with the working hours at zong? ______________________________________________ ______________________________________________ ______________

21.

How often do you looking for alternative jobs? ______________________________________________ ______________________________________________ ______________

22.

Why do you think employees look for new jobs? ______________________________________________ ______________________________________________ _________________

23.

What is the good thing at zong? ______________________________________________ ______________________________________________ __________________

24.

What do you suggest that zong management to retain CSO? ______________________________________________ ______________________________________________ ___________________

19

Thank you

20