Management Part-1

Unanimous World of Blues

In The Name Of Allah The Most Beneficent And The Most Merciful

ACKNOWLEDGEMENTS: We are grateful to Almighty Allah; who blessed us with the determination in completing the following project. We are thankful to our instructor Mr. Asif Ayub Kiyani, who helped us in conducting the project. We appreciate the participation of the group’s members who co-operated a lot in conducting this project. We are thankful to Mr. M.Shafique and Mr. Ch.M. Asghar (Managers, PTCL); to provide us all relevant information and helping us in every possible way .we are in great debt to web organizations, which facilitated us with the required data. Thank you all.

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DEDICATION: We dedicate the following project to our Parents, and most importantly to all group members who worked hard in completion of this project.

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Preface: This report is intended for the people who are intended to join the telecomm industry in future in departments concerning Management and communication.

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Information: We visited Islamabad Head quarters (Main office , PTCL) and customer care services office in Rawalpindi (Bank road,Sadar).

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Abstract: The project is about the management and communication of Pakistan TeleCommunication Limited (PTCL) that how PTCL is working and competing in the industry, our main focus was on SWOT and, PEST analysis, Management and channels of the communication.

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Executive Summary: PTCL is restructuring and re-emerging its all departments, it is forming new departments like Human Resource Department (RHD), Customer Service Department (CSD), and look forward in establishing the departments like Research & development Department (RDD). PTCL is converting the old and urinary file system network to the digital world of computers and technologies. It shows their positive attitude towards technological changes and wishes to lead the telecommunication market. Although they are facing a lot of threats by the competitors like Wateen Telecomm, Mobilink, Warid, Telenor, Zong (Paktel), but still they are fighting the best way they can. PTCL has worked hard to eliminate its weaknesses and still there are the weak points ,PTCL is trying to overcome those weaknesses.

Mission Statement: Page 6

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To

be

the

leading

Information

and

Communication

Technology Service Provider in the region by achieving customer satisfaction and maximizing shareholders' value'.

Vision Statement: The future is unfolding around us. In times to come, we will be the link that allows global communication. We are striving towards mobilizing the world for the future. By becoming partners in innovation, we are ready to shape a future that offers telecom Page 7

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services that bring us closer.

Chapter number.1 PTCL Historical Background and Company Profile

(1.1) History: From the humble beginnings of Posts & Telegraph Department in 1947 and establishment of Pakistan Telephone & Telegraph Department in 1962, PTCL has been a major player in telecommunication in Pakistan. Despite having established a network of enormous size, PTCL workings Page 8

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and policies have attracted regular criticism from other smaller operators and the civil society of Pakistan. Pakistan Telecommunication Corporation (PTC) took over operations and functions from Pakistan Telephone and Telegraph Department under Pakistan Telecommunication Corporation Act 1991. This coincided with the Government's competitive policy, encouraging private sector participation and resulting in award of licenses for cellular, card-operated pay-phones, paging and, lately, data communication services. Pursuing a progressive policy, the Government in 1991, announced its plans to privatize PTC, and in 1994 issued six million vouchers exchangeable into 600 million shares of the would-be PTCL in two separate placements. Each had a par value of Rs. 10 per share. These vouchers were converted into PTCL shares in mid-1996. In 1995, Pakistan Telecommunication (Reorganization) Ordinance formed the basis for PTCL monopoly over basic telephony in the country. It also paved the way for the establishment of an independent regulatory regime. The provisions of the Ordinance were lent permanence in October 1996 through Pakistan Telecommunication (Reorganization) Act. The same year, Pakistan Telecommunication Company Limited was formed and listed on all stock exchanges of Pakistan. PTCL launched its mobile and data services subsidiaries in 2001 by the name of Ufone and PakNet respectively. None of the brands made it to the top slots in the respective competitions. Lately, however, Ufone had increased its market share in the cellular sector. The PakNet brand has effectively dissolved over the period of time. Recent DSL services launched by PTCL reflect this by the introduction of a new brand name

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and operations of the service being directly supervised by PTCL instead of Paknet. As telecommunication monopolies head towards an imminent end, services and infrastructure providers are set to face even bigger challenges. Pakistan also entered post-monopoly era with deregulation of the sector in January 2003. On the Government level, a comprehensive liberalization policy for telecom sector is in the offing. Last Year, in middle of 2005 Government of Pakistan had decided to sell at least 26 percent of this company to some private agency. There were three participants in the bet for privatization of PTCL. Etisalat, a Dubai based company was able to get the shares with a large margin in the bet. Last year when Government was going to privatize the company there was country wide protest and strike by PTCL workers. They even disrupted Phone lines of some big Government institutions like Punjab University Lahore and many lines of public sector were also blocked. Military had to take over the management of all the Exchanges in the country. They arrested many workers and put them behind bars. The contention between Government and employees ended with a 30% increase in the salaries of workers. (1.2) Historical Background: •

1947 Posts & Telegraph Dept established

•

1961 Pakistan Telegraph & Telephone Deptt.

•

1990-91 Pakistan Telecom Corporation

•

1995 About 5% of PTC assets transferred to PTA, FAB & NTC.

•

1996 PTCL Formed listed on all Stock Exchanges of Pakistan.

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1998 Mobile(Ufone)& Internet(PakNet)subsidiaries established.

•

2000 Telecom Policy Finalized

•

2003 Telecom Deregulation Policy Announced

•

2006 Etisalat Takes Over PTCL

(1.3) CURRENT STATUS: Many big change events are taking place at PTCL, after its privatization. These include the VSS (Voluntary Separation Scheme for its employees), ERP (SAP based), restructuring, B& CC (Billing and Customer Care Software) etc, IPTV (Cable television), DSL (Broad Band Internet services), Another seemingly minor change was change of brand identity (logo) that will present PTCL's new face after privatization, with greater focus on customer satisfaction and bringing about of new advancements in telecom for Pakistani consumers. (1.4) Company Profile:

With an employee strength of 65,000 (Regular) and 5.7 million customers, PTCL is the largest telecommunications provider in Pakistan. PTCL also continues to be the largest CDMA operator in the country with 0.8 million V-fone customers. The company maintains a leading position in Pakistan as an infrastructure provider to other telecom operators and corporate customers of the country. It has the potential to be an instrumental agent in Pakistan’s economic growth. PTCL has laid an Optical Fibre Access Network in the major metropolitan centres of Pakistan and local loop services have started to be modernized and upgraded from copper to an optical network. On the Long Distance and International infrastructure side, the capacity Page 11

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of two SEA-ME-WE submarine cable is being expanded to meet the increasing demand of International traffic. (1.5) Products and Services: (1.5.1) Home Services: Broadband Pakistan (DSL), Calling Card Connectivity, Errors DialUp Setting, Dialup ,Vfone, E-mail & Browsing, Fixed Line, IPTV,

International

Calls,

New

Packages

PTCL

,0900

entertainment, Payphone Phone, Net Phone , Internet, ProcedureDowtel Sets, Procedure-Huawei Sets , Procedure-ZTE Sets, Security Questions, Vfone, Vfone FAQs, Vfone new packages, Vfone Sales Outlets.

(1.5.2) Business Services: Analogue Channels, Co-Location, DPLC, DXX, LIT Pair Skylink, TV Transmission, Broadband Pakistan, IP / IPLC, Call Centers, Calling Cards, Fixed Line, ISDN - BRI, Payphone, Radio Maritime, Satellite Phone, FAX, Value Added Services, Vfone, Voice Messaging Service (VMS)

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Chapter number.2 Management styles (2.1) Introduction: From the emergence of PTCL till 2006, PTCL was the only telecommunication company providing the land line telephone services. PTCL enjoyed the monopoly over the market till 2006; the emergence of another company Wateen telecom provides land line services. But ptcl has earned a name, build the trust of the customers, developed the company from the starch. PTCL introduced a company U-fone as its co venture and now has provided V-fone (wireless services), and is meeting all the technolological changes worldwide after its privatization. It has Page 13

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become better in provision of services and innovative in introducing new and new products, every passing day.

(2.2) Management Style at PTCL: PTCL has got very broad structure in term of span of control. Since PTCL is the largest telecommunication organization so it has got wide management levels. Managers at PTCL are controlling and organization supervising employees working under it. The procedure of planning in the company is very traditional and all the planning process takes place at top level, all the planning related to the company’s future or its progress is made by the directors of the company, for example if they want to launch a new product or service then this decision of launching this product and service will be made at top level Only Top level. Managers plan and they negotiate their plans with middle level and then finally middle level managers negotiate the plans with the first line managers and operatives.

Managers are not much equipped with management skills. They are making relations only with their employees and not with the organization. It is the task of higher level management to formulate the network with other organizations in the market. As manager; they are giving presentations for innovation and creativity and improved management to their employees. But PTCL is very bad at time management. Employers, managers and

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employees often come late. It is changing organization and learning organization. They are rigid in some rules. They are skill focused. Employees are not trained in the field of management or business. They have done some short courses and working in PTCL. They were individual oriented but now they are converting to team orientation. Before there was no proper feed back channel or evaluation process. Just managers evaluate others and peers were not evaluating the managers and other peers. Now PTCL employees are evaluating each other because they are working as peer to peer and are using 360 degree process after the restructuring of the organization. When we visited the organization the Managers were patrolling here and there to observe their employees and they were talking to their employees, this shows the free and flexible style of management, so we may say the managers were very friendly. So there is not any single Management style, which PTCL is following. They are rather using contingency approaches according to which they are communicating indirectly “We would see what would happen”, or their decision depends at the situation. Decision Making is a complex process at PLTCL According to the company’s policy they give responsibility first to the internal management for any internal problems but they have to inform to his Top management because all the important decision will be taken by Top management. The main head office is in Islamabad; so all divisional or regional managers have to communicate through a proper channel to the top level management. As defined earlier, decisions are made at top level of management and negotiation takes place as shown in the diagram:

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(2.3) Mr. Walid as a CEO of PTCL Mr.Walid Irshaid as a CEO and President of PTCL says: I have taken immense pride in assuming the duty as President and CEO of PTCL, which is a great opportunity for me to execute my responsibilities as a team leader. To me Pakistan and PTCL are synonymous with an opportunity for growth. The potential of this growth is visible to me as it is about the human capital we have in the form of talented and experienced employees. I can assure you that with the traditional dedication and determination of PTCL workers we will transform this company into a world class ICT company. I am proud of my fellow colleagues who have been leading the market so far and have been adapting to changing technological advancements. After the deregulation in the telecom sector of Pakistan, PTCL is now again ready to face new challenges in a competitive environment. We are poised to retain our leadership position by giving PTCL a new and improved look. The new colors of the Logo are in context with every Pakistani’s sense of identity and patriotism; green and white being the colors of purity and honesty, the colors of trustworthiness and integrity, the colors of Pakistan’s flag and the colors of every Pakistani’s passion. Be assured that PTCL will remain the people’s first choice of communication in the future. Promising you the best of our services, at all times.

Walid Irshaid President & CEO •

Mr. Walid Irshaid is the

•

He is also the leading personality of the Tunnel. He is responsible for the each

CEO and President of PTCL.

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Unanimous World of Blues and every activity of the Organisation. He not only initiates the every new activity but also motivates the employees as well. •

He uses his personal resources and provides the benefits to the organization.

•

He has a strict policy for the check and measure. He has an open door policy for the customers, any one who has any problem he can discuss with him at any time through a proper channel. He goes to the employees personally for the monitoring purpose.

•

He is the disseminator of the company. For example when any customer is not satisfied with the service or the behavior of the host or other persons He is the person who faces the media and public while they required him. He has to handle these persons respectively.

•

He is the disturbance handler and resource allocator of the organization, this is the reason that why PTCL fired out its old employees which it didn’t need, because company had an over employee rate, they fired out more than 10,000 employees

•

He negotiates with the staff and employees. The company has high efficiency and high effectiveness as well. As they are

providing the best facilities in communication services in Pakistan. In response of the best facilities the number of customers is increasing.

Chapter no.3 Organizational Culture and Environment Page 17

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(3.1) Culture When PTCL was a governmental organization employees were required to follow extensive rules and regulations. Managers supervise employers to ensure that there are no deviations. Management was concerned by high productivity. Work was designed around individuals and not in teams. But now management encourages and rewards risk taking and change. Now they are experimenting new technologies. There are few rules and regulations and job activities are designed in teams. New and innovative ideas are encouraged. That’s why every second day we see a new package and technology in introduced in PTCL.

(3.1.1) SEVEN Dimension of Organizational Culture: PTCL is following seven dimensions of organizational culture. They are • OUTCOME ORIENTED: The manager of the company is only focusing on how to increase the number of customers. They are outcome oriented they care about their customers. They focus on results rather how those results are met. They provide their customer with every possible package. Managers at PTCL told us that they choose those employees who work in time by any mean and it doesn’t matter that what way they followed or what was the procedure of doing it. • PEOPLE ORIENTED:

PTCL is people oriented. They take

into account the effects of their decisions on people because customer is their basic focus and asset. • RISK TAKING AND INNOVATIVE: They believe in risk Page 18

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taking. Like the way they commercialized their packages is risk taking and new technology like IPTV is extremely a risk taking step. • AGGRESSIVENESS: The aggressive behavior exists among employees. • TEAM ORIENTED: Work between teams is appreciated. • STABILITY: they are stable and maintain the status quo. • ATTENTION TO DETAIL: The employees are expected to pay attention to details and they must be precise in their results.

PTCL has developed its culture according to the norms and traditions laid by the earlier founders of the organization. They are also following the norms and culture of Pakistan. Their logo, slogans and language shows their great love and patriotism towards their country, so they impress their customers in the way, by following the culture of the country. Following an innovative culture PTCL in recent few years has launched so many new services which were never available before, like IPTV,

Broad

Band

(Internet

service),

Wireless

and

Satellite

communication, frequency allocation, customer care services like 0800

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fones and much more.

(3.2) Environment: (3.2.1) Customers: Company has customers belonging from all the cultures within the country and from all the social classes of the society. Therefore almost all business organizations are taking communication facilities from PTCL, doesn’t matter that they are also customers of the other organizations but for the land line services they are only using PTCL. (3.2.2) Suppliers: Donatel , ZTE and Huwai are the suppliers of the company (3.2.3) Competitors: Wateen Telecom, Warid Telecom , Telenor, Zong, Mobilink, insta phone are the competitors of the company. (3.2.4) Pressure Group: Pressure groups include a circle of customers and governmental and as well as non-governmental organizations.

Gov and NGO’s People and ORGS

PTCL

ZTE ,Hawai ect

Mobilink, wateen etc

3.3)PE ST ANALYSIS

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Pest analysis: Pest analysis consists of political, economic, social and technological issues. Political issues: The political condition of the country greatly effects the organizations who are conducting business in that country. If there is political instability in any country then the foreign countries are reluctant to conduct business in that country. As far as our country is concerned, we know that political instability exists here, as we went there,there was a strike going on. As the governments change very quickly in Pakistan, so it has negative effect on PTCL. Foreign countries are not making any investment in PTCL. Economic issues: Further economic conditions also effects the business conditions in the country. If the economical conditions are good, then the government makes investment in that organization but as far as PTCL is concerned, there is no such investment by the government and this organization is now privatized. Social issues: Social issues are concerned with the social norms of that country. As far as PTCL is concerned, their culture is in accordance with the social values of the country like when we dial their help line, the operator says ”ASSLAM-O-ALIKUM” while there is no such regard in any other country.

Technological issues: PTCL is adapting new and new technology day by day. They are Page 21

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satisfying their customers by providing new packages and their new packages definitely involves new technology for example with the help of IPTV (which is their new package) they are providing 200 TV channels. Similarly PTCL VMS, VFONE, DSL, SKYLINK (SATTELITE COMMUNICATION SERVICE FOR OPERATORS AND CORPORATE CUSTOMERS) they all are having new technology.

Chapter Number.4 Organizational Structure Page 22

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(4.1) PTCL Organizational Structure: Though PTCL has been changing its structure or we can say it is redeveloping its structure. Before the structure of the organization was rigid and now they are innovative and changing their structure of the organization with new and emerging technologies, like they are now using computers and so number of employees has been reduced and they have replaced old ordinary file system with new digital file system, building structure was very out worn but now they are using new style of furniture and having latest construction styles. • WORK SPECIALIZATION: In PTCL work is specialized around teams and individuals. There is division of labor. • DEPARTMENTALIZATION: Every department has its own organizational chart besides there is only one president. They have different departments like product department and HRM. • CHAIN OF COMMAND: They somewhat had chain of command. There is continuous line of authority. • CENTRALIZATION: Though it is privatized yet there exists centralization. • SPAN OF CONTROL: Managers control a lot of employees. This is a drawback of their miss management but may be this could be their strength. They have matrix and project structure that is work is specialized among teams and when a project starts they assign specialists from other departments to complete the project. Since two years has passed from its privatization it organizational structure has changed it is a learning

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organization. Apart from this PTCL is dynamic organization. Organisational Structure Diagram

Chapter number.5

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SWOT(Strengths,Weaknesses,Opportunities and Threats)analysis: SWOT Analysis: Swot stands for strength, weaknesses, opportunities and threats. Now here we see all these aspects of PTCL. Strength: 1. The strength of PTCL is that they are satisfying their customers by using new technologies, adapting new ways, providing new packages. 2. They

have

made large capital expenses on network

improvement to stay competitive. 3. Their local service revenue is ok; paying bills through phone is

a commendable start and they have vast infrastructure and real estate assets, which can be leveraged further. 4. Their Global connectivity reliability has been improved. PTCL

is expanding the long distance and infrastructure side through spreading out two SEA-ME-WE submarine cables. Weaknesses: 1.Similarly, they have weaknesses as well. 2. They do not use their own resources instead depends upon others as they have sold their 26% share to Etisalat. 3.In addition, there are risk factors in their projects. VOIP use is increasing despite their ambiguous and discriminatory polices, this will eat into its profit. 4. Paknet, the Internet service provider arm of PTCL continues to

incur losses due to poor management and lack of network optimization.

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5. PTCL-V, the fixed wireless phone service is poor. They should use some their marketing Rupees and use it for better service delivery, correct billing and competent customer service. Opportunities: 1. Low teledensity to Pakistan, 2. Growth potential due to improved macro economic situation of the country, 3. Partnership with new entrants in a deregulated environment. 4. Scope for efficient/cost effective operation. Threats: There is great competition among cellular companies and ptcl. One of their greatest threats is WATEEN, similarly mobilink, warid telecome, telenore all are their greatest comptetors. Bandwidth rate dispute with PTA is been dragged in court: if PTCL loses, it will be a major cost, and even if PTCL wins the case, their artificially high bandwidth rates cannot be sustained.

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