National University of Modern Languages

(NUML)
Department of Management Science
(MS)

Course Title: UFONE & Their History & Origin

Submitted To:
 Dr Hafsah Zahoor
Dept. of MS
Submitted By:
 Sulaiman Khan
 Aoun Muhammad
 Awais Mehmood
 Nizam Shah
 Usama Mirza

Semester: BBA-II C (Morning)

Date of Submission: 20th December 2019

TABLE OF CONTENT:
ACKNOWLEDGEMENT .................................................................................. 4
DEDICATION ..................................................................................................... 4
EXECUTIVE SUMMARY ................................................................................ 5

COMPANY INTRODUCTION......................................................................... 5
1.1.1. Mission Statement
1.1.2. Vision Statement

SERVICES LINE OF UFONE .......................................................................... 5

1.1.1. Company Analysis
1.1.2. Structure of Ufone
1.1.3. Division of branches geographically (Location)
1.1.4. Departmental Division

HUMAN RESOURCE ........................................................................................ 7

1.1.1. Human Resource Department At Ufone
1.1.2. HR Practice
1.1.3. Work Force
1.1.4. Permanent Employees
1.1.5. Operational Department
1.1.6. Training And Development

COMPENSATION.............................................................................................. 8
1.1.1. Employee Benefit & Compensation
1.1.2. Compensation and Benefits
1.1.3. Workplace Programs
1.1.4. Levels of Ufone:
1.1.5. Individual Salary Fixation:
1.1.6. Current Base Pay: (Job Based Structure and competitive)
1.1.7. Total Compensation:
1.1.8. Recognition of The work
1.1.9. Salary Surveys

JOB EVALUATION METHOD ..................................................................... 14

1.1.1. Job Analysis
1.1.2. Ufone Job Analysis
1.1.3. Job specification
1.1.4. Job Description
PERFORMANCE MANAGEMENT SYSTEM ............................................ 18
1.1.1. Objective of the Performance Management

THE PERFORMANCE APPRAISAL PROCESS: ....................................... 18

1.1.1. Performance Appraisal Method Use by UFONE
1.1.2. Rewards Related to Performance
1.1.3. Performance appraisal: 360° 19
1.1.4. Compensation Responsibilities of Ufone HR Department

EMPLOYEES REACTION TO THE SYSTEM ........................................... 19

PRINCIPAL FAULT LINES AND SOME SUGGESTIONS FOR
IMPROVEMENT ............................................................................................. 20
 Acknowledgement
We would like to express our special thanks of gratitude to our teacher ‘Dr Hafsah Zahoor’
for her guidance & support in completing our project.
We would also like to extend our gratitude to our parents who assist us and provide us with all
the basic facility that was required.
Specially to our seniors who have given us the ideas of compiling and arranging the document.
Dedication
We Would like to delicate it to our respected Parents.
Executive Summary
This project has been undertaken in order to highlight the Human Resource Practices of
“Ufone”. It’s all about YOU its all about “Ufone”, a company very highly spoken of these days.
A company paying more attention to its customer’s delights rather then the customer’s
satisfaction. Ufone is a company starting from scratch and has shown utmost performance in
the last seven years. Ufone owes its success to its employees believing that providing
employees with job satisfaction motivates them to work hard and provide better results.
i. Company Introduction Ufone PTML is a wholly owned subsidiary of PTCL
established to operate cellular telephony. The company
commenced its operations, under the brand name of Ufone, from Islamabad on January 29,
2001
During the year, as a consequence of PTCL’s privatization, 26% of its shares were acquired by
Emirates Telecommunication Corporation (Etisalat). Being part of PTCL, the management of
Ufone has also been handed over to Etisalat. During the year July 2005 to June 2006, Ufone
continued on the path to success. The Company further expanded its coverage and has added
new cities and highways. Ufone has network coverage in more than 3475 locations and across
all major highways of the country.
Ufone currently caters for International Roaming to more than 200 live operators across 121
countries and introduced International roaming facility for Prepaid subscribers in Saudi Arabia,
United Kingdom, United Arab Emirates, Singapore, Portugal, Thailand, Cyprus, Bangladesh,
Uzbekistan, Tunisia and Kuwait with lowest rates, featuring no security deposit and activation
charges. GPRS Roaming facility is available with more than 100 Live Operators across 80
countries.
Mission Statement
To become the best cellular communication option available in the country for “u”.
Vision Statement
In order to evolve with our customers and to keep pace with your needs, we rejuvenated and
revamped our image by changing our visual identity. At Ufone we understand the value of
words and the need to communicate effectively and efficiently at all levels of society, which is
why our primary focus is on U, our valued customers bring strength to our company.
With a fresher look than is accepted and appreciated across the board by people of all ages, we
aim to connect with you and provide you state of the art services. No matter who you are, where
you are, what you want to say, how you want to say it or how you feel, you are our focus.
Because at Ufone, it’s all about U,
Services line of Ufone

There are two basic products of Ufone “Ufone Prepaid” and “Ufone Post pay”. Both of these
products are available at their franchise for public.

 Prepaid
 Post paid
COMPANY ANALYSIS

ii. Structure of Ufone

When a company wants to compete in innovation, it needs to maximize flexibility. Flexibility
is maximized by aggregating work into larger, holistic pieces that are executed by teams of
higher wages, high skilled workers. Giving the units their own support systems and decision-
making authority to take advantage of local opportunities in regional or specialized product
markets also enhances flexibility.

Corporation

Administ- CEO IT
Engineer- ration & Secretaria Commerci Customer Human Finance
ing Procurem al Care Resource
t
ent

Access Customer
Networki Administr Business Care Human IT
ng ation Analysis Marketin (MNP Resource Financial Corporate
Planning Corporate g T&D Control

Core Quality Human Data ware

Networki Administr Internal Commerci Assurance Resource Finance House &
ng ation Audit al & Operation Corporate Software
Planning Procurem Corporate Retention s Support
ent

Enterpris
Corporate General Governm Customer Finance e Solution
Engineeri Administr ent Corporate Coordinat Legal & & Security
ng ation Relations Sales Taxation
ion

Customer Enterpris
Operation Care Finance e Solution
Dealer (Service Perman- Operation &
BSS
Sales ent
Centre) Security

Operation Customer Finance Mediatio

NSS Retail Care Outsour- Treasury n & Client
Sales (Franchis ced & System
e) Planning

Customer
Care Finance Network
Site RGM (Corp Accounts Operation
Acquisitio Support
n Services)

Sales & Customer System

Distributi Care Administr
on (Billing) ation

Credit
Manage-
ment

Call
Centre

Customer
Care
Training
Division of branches geographically (Location)

This is what Ufone looks from the organizational hierarchy point of view. There are eight
different departments each headed by a Project Director. They report directly to the CEO. There
are four BU (Business Unit) each Project Director is responsible for these eight divisions. BUs
are divided geographically into three divisions

 BU North (Peshawar to Jehlum) Islamabad (Head Office)

 BU Central-1 (Gujranwala till Sialkot)
 BU Central-2 (Multan till Rahim Yar Khan)
 BUM South (Sindh and Balochistan)

Departmental Division

In order to give a jump-start to the company, a comprehensive initiation plan has been made
along with aggressive customer acquisition, care and retention strategies. Ufone has the best
integration of eight departments each project director.

 Engineering
 Administration
 Business Analysis
 Marketing & Sales
 Customer Care

Human Resource

 Finance
 Information Technology

Provision of quality service to the customers is of utmost importance for the progress of any
service-based company. At Ufone the management is mindful of the same and has been
constantly endeavoring to enhance the existing facilities. Therefore operations at Ufone are all
planned and carried out in such a way so as to maximize operational efficiency, customer
satisfaction and employees motivation.

Although it is the subsidiary of the Pakistan Telecom Company Limited (PTCL), Ufone carries
out its operations autonomously under the license of Pakistan Telecom Mobiles Limited
(PTML). The company head office is established in Islamabad (F-7 Markaz), which serves as
the center for all its strategic activities.

Human Resource Department at Ufone

UFONE considers their employees to be the asset of the company, so in order to retain their
employees following practices are followed in the company.
HR PRACTICES

 Recruitment and selection

 Orientation
 Training and development
 Compensation and Benefits
 Performance Appraisal

WORK FORCE

HR at UFONE is divided into the following two major categories

 Permanent Employees (1500-2000 Approximately)
 Outsourced Employees (2000 Approximately)
Permanent Employees

HR Permanent employees are further divided into following two categories.

 Operation
 Training and Development

Operational Department
It covers all the areas including hiring recruitment, selection and payroll etc. HR operation
team manages all the employee activities gathers all the information and make use of it for
further processes.

Training and Development

HR team of training and development make a performance evaluation of all the employees
and the see where the gap occurs between the actual performance and the desired performance.
Then training is designed for area which needs to be improved. On the job and off the job both
the trainings are given according to the need of the employee.

Compensation
The total returns which an employee gets against his or her work.
It maybe:

Employee Health Plans

Employee Insurance
Employee Leave
Employee Retirement Income Security Act
Executive Compensation
Maternity & Paternity Benefits
Pension & Retirement Plans
Wages & Salaries
Compensation and Benefits
Ufone follow the performance base pay structure and pay for their performance and work
output.

Employee Benefit & Compensation

 Training & Development
 Employee Motivation
 Retention of Employees
 Career Planning/ Succession Planning
 Employee Relations/ Communication
 Employee Awards
 Employee Events Management
 Medical & Life Insurance

Workplace Programs
Compensation strategies are usually market based and is linked with the performance with a
greater emphasis on variable pay. Salary adjustment is based on the performance, market
movement and internal/ external equity adjustment. Revision of compensation is based on total
pay and monetization of benefits.
Levels of Ufone:
Hierarchy
C.E.O

V.P

G.M

Senior
Manager

Manager

Assistant
Manager

Senior
Executive

Permanent
executive

Outsourced
Executive

M.T

10 Levels
Individual Salary Fixation:
The Ufone seeks the market trend and try to compete with market for individual salary fixation
but they also analyse their own financial positions and budgeting, it also varies from department
to department.
Current Base Pay: (Job Based Structure and competitive)
The Ufone follows the job based structure, and compensate its employees for the work they
have done, for their tasks and duties they performed, their work content, behaviour and for their
responsibilities.
To develop this structure Ufone conducts some surveys, to compete with others in the same
industry.

Work Analysis
Evaluation & control
Market trends
Employee J.D
Surveys
Policy Lines

Total Compensation:

Example:
60% Basic Pay 15-k
30% House Rent 7.5-k
10% Utilities 2.5-k
OPD 2 Gross salaries
Hospitalization Employee siblings, Parents,
Wife / Spouse and
children’s
Provident Fund 50% Employee, 50% Org
Gratuity If work for 10 Months
Bonuses 1.4% Of Gross salary
Incentives Only Sales department
depend upon their
performance.
Assistant Manager Level:
25000 Car allowance + 200 Liter’s petrol / Month

Manager level:
Car + Blackberry

Senior Manager:
Islamabad Club Membership + BMW Car + House + Foreign Tours

Further Ufone has developed some grades for employees.

A H

A is the minimum grade and H is the maximum grade and they compensate their employees
on the basis of their grades.

Grade A 500 minutes + 500 Rs mobile usage. Same like this all other benefits.

After every Two years Ufone give the amount of Rs 6000 to lower level employees if they
want to purchase a new mobile and this limit increases as grade increases. At each stage the
amount is different.

Food Subsidy:
S.E, Exe, M.T so on
Rs 65
Rs 95 Company

A.M and Above

160 RS

Increments:

The increments are totally based on the performance of the employees and their seniority level.

If the scale is 15000-20000 then the increment is the 20% of the base pay, but if any employee
shows the performance then this may increase up to 35% to 50%.

Managers: Innovative ideas

Silent Warriors
Recognition of The work:

On Jan 29 (anniversary of Ufone).

Employees who is working in Ufone for seven years or more then seven years gets Cash
Rewards, Trophy, badges and other things.

Leave fair assistance

1 year 20 holidays 1 Gross salary
40 leaves 2LFA’s

Permanent Employees:

Number of employees:
Around 1500 – 2000

Minimum scale starts from 15000 – 20000

Maximum C.E.O (Not disclosed by the organization)

UFONE focuses on providing a large number of the compensation and benefits to its employees
in a form of the following categories:

 Minimum wage: The minimum salary for “Drivers” is Rs.7000 for “Tea Boys” it is
Rs.6500, for Administrative Staff like HR, Finance, Marketing, etc it is Rs.20000 and
for Engineering it is Rs.20000 to 25000.
 Medical Allowance: 1 gross salary per year is given to each employee; half is given in
mid of the year and remaining half will be given at the end of the year.
 Health Insurance: Like all other cellular companies Ufone also provides health
insurance policy to its employees.
 Loan Insurance: At Ufone loan insurance policy is also provided to their employees
through banks.
 Transport allowance: Rs 2500 are given to female employees only, if they travel on
local transport.
 House Rent: 10% of the basic salary is given to each senior/ executive level employee.
 Overtime: All employees are entitle for the overtime more then 130 hours per month
.For overtime UFONE have specific formula that apply on the employees gross salary,
due to which every employee have different per hour overtime rate.
 EOBI: EOBI is contributed as per the standard
 Children Education allowance: 1 gross salary per year
 Provident Fund: All permanent confirmed employees are eligible for membership of
Ufone Employee Provident Fund Scheme. An employee contributes 8.33% of month
basic salary in a year and an equivalent amount is being contributed by the employer.
 Leaves: 7 Casual and 10 sick leaves are given to each employee at all level.
 Travel Policy: Revised and categorized different levels such as the senior level, the
middle level and the junior level staff.
  Meal deduction Claims: Meal books are to be maintained of each employee who issues
it, their name, employee number, designation, signature and number of book and date
at which it is issued has to be recorded. The reason for maintaining the record is that
the company pays 60% of the expense came over the food while 40% has to be deducted
from the employee’s salary.
 Expense Claim: The expense Claims are the expenses which an employee make on the
behalf of the company E.g. fuel used for business travel, overnight stays on a business
tour etc, such claim are made while returning back to the office , after the whole process
the HR pay them back the next month along with their salary.
 Overtime Claim: If an employee has worked for more than the regular time, they claim
for the overtime amount other than their salary which they receive the next month.
Overtime claim have to be approved through HR department.
 Medical Claim: Different medical facilities are provided to employees at different
level of hierarchy, so if any employees make use of this facility they can claim for the
amounts to be return next the month while submitting the hospital receipt. Their
medical clearness is done by the HR department.
 Mobile deduction Claim: Such an expense claims which are made if an employee has
made long duration call for the official purpose and they have exceeded the limit given
to them then they can make a claim by attacking a copy of mobile bill and if its valid
then HR department approved it and pay the employee their claimed amount along with
their monthly salary of the following month.
 Dispatching of Salary Slips: Vendor prepares the salary slip and dispatch it to the HR
department, further HR head office send it to the regional HR departments their
concerned employees salary slip and they either give their employees through cash or
transfer to their accounts.

Salary Surveys
Collections of salary and market data, it includes average salaries, inflation indicators, cost of
living indicators, salary budget averages. Ufone conducts its own market survey and match its
standards with other telecommunication companies specifically with Mobilink and telenor.
(Research firms and personally)

Job Evaluation Method

The job evaluation method of Ufone is lined to appraisal system. Whenever the appraisal report
of any employee is generated he is being paid according to his performance. The job is
evaluated on the basis of appraisal reports. If any post is vacant those past performance on that
post is evaluated and the market conditions are observed and then the job is evaluated. The
value for the job is concerned with the performance report. The value of any job can be
increased if the employee on certain post has performed very well and his appraisal report is
very outstanding then according to his performance value of job is increased and this process
is carried out by the HR department of Ufone. Moreover, the job evaluation is linked with the
merit. Any person who is employed on merit and is performing very well will be given salary
on the basis of his performance and merit.

The job evaluation method was not very much good in the past but now it is linked to appraisal
system of Ufone.
The present basic salary structure of Ufone is based on Job description (Tasks and duties
performed)
Job Analysis

Job analysis is systematic exploration of activities within a job. It is a technical procedure used
to define the duties, responsibilities, and accountabilities of job. It is proved that job analysis
is almost first activity of HR department to be done. Because on this, pay packages,
compensations, job descriptions, job specifications, job evaluation etc are made. So at Ufone
experts do job analysis. They construct “Job Analysis form”.

Ufone Job Analysis

Following steps should be taken by the Ufone.

Step1: Obtain Documentary information such as procedure manuals and written instruction.
Step 2: Ask about more general aspect such as the job purposes, the main activities.
Step 3: Ask the jobholders about the job.
Step 4: Observe the jobholders to see what they actually do.

Information Collected in Job Analysis

Work activities
Worker-oriented activities
Machines, tools, equipment, and work aids used
Job-related tangibles and intangibles
Work performance
Job content
Personal requirements for the job

Why Ufone conducts job analysis

The Ufone conducts the job analysis to get the right person for the right job at the right time.
If the Ufone does not conduct the job analysis then there will be a huge chance of selecting the
wrong person or to reject the right person who is suitable for the job.
Knowing Who Does What
Major duties or activities required
Conditions under which the job is performed

Job analysis procedure of the Ufone

There are mostly following procedure of the Ufone about analysis of a job:

 Direct Observations
 Interviews

How Ufone formulate job description and specification

In Ufone most of the announcements for jobs are being done through newspapers having wide
circulation in the country. Whenever Ufone offers any job it also describes the responsibilities
and duties with in a job to be performed. The HR people after analyzing any job that has
become vacant makes a job description defining clearly what the jobholder will do and how it
will be done. On the whole job description defines characteristics of job, environmental
conditions and responsibilities of the job.
The HR people define the job in such a way that it clearly describes the job and guides new
employees what to do etc. now they are moving towards E-Recruitment also to ensure best
candidates apply for the jobs and professional people are employed in the Organization.

Job specification

Ufone also has well developed criteria for each job in term of the job specification. In all the
area of the jobs the pre- requisite for the job are defined for example:
Qualification required for a job
Skill required for a job
Experience required for a job

Job Description

Human Resource Division analyses each job and its required outcomes. Job analysis is done
by analysing the past experience and emerging trends.

Ufone holds documents about terms, duties responsibilities, and specifications about each job.
In job description Ufone define the following:
Duties of HR manager is to select, hire and train employees
Responsibilities are to update records and processing insuring claims
Task is to complete the job-related activities.
JOB DESCRIPTION FORM

To: HR From: Date:

Job Title: Permanent: Temporary:

Department: Grade: Date Required:

Brief Outline of Duties & If Temporary Specify the Period:

Responsibilities:
From: To:

Education & Qualification Req:

Experience Required:

Special Knowledge, Skills, personality, requirements:

If a replacement, complete the following:

Employee to be replaced: Job Title: Date Separated Reason for Separation

If increase in approved staff level, complete the following:

Justification of increase: Is position in Business Plan:

Yes ( ) No ( )

Explain why is not possible to avoid this increase by office re-arrangements?

HR Views Initiated by:

Immediate Supervisor:

Recommended by: Verified by: Approved by:

Department Head General Manager HR&A Chief Executive

PERFORMANCE MANAGEMENT SYSTEM

Objective of the Performance Management:

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

The Performance Appraisal Process:

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

Performance Appraisal Method Use by UFONE

UFONE is using 180-Degree Performance Appraisal Method. Within this method, managers,
peers, customers or colleagues are asked to complete questionnaire on the employee being
assessed. In UFONE, performance of an employee is appraises twice a year. Once in June while
other in December.
In the questionnaire there are five sections and in each section there are five questions related
to the performance of employee. There are total 100 points from which an employee gets

Rewards Related to Performance

There is also a reward related to performance of the employees. For “Customer Facilitation
Agents” there 50% pay is based on their performance which is assessing every moth by their
managers. For other employees like in administration, engineering, finance, marketing, etc
their performance is assessed after every six and they get increased Rs.5000 in their salary as
a reward. In each case employee have to show consistent performance to win reward next time.
Performance appraisal: 360°

Behaviour 20%
Results 80%

Total 100%

Total 500 Marks

Best >400
Good >300
Average >250

A bell shaped distribution comes out to show the

performance

Compensation Responsibilities of Ufone HR Department

 Compensation Administration (designing and installing job evaluation program, pay

structure, analyzing jobs and their dollar-worth, maintaining suitable records, wage and
salary surveys of the labor market).
 Health and Safety (health programs, safety programs, Medical facility).
 Employee relations (wages, rates of pay, hours of work, conditions of employment,
negotiation, contract interpretation and administration, grievance handling, allocation
of overtime).
 Benefits and Services (insurance programs, Transportation facility, sick leave pay
plans, loan funds, LFA salary, Yearly bonus programs along with special bonuses for
achieving high targets).

Employees Reaction to the system

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

Principal fault lines and some suggestions for improvement

While answering a question the manager of H.R expressed his thoughts that the employees who
are hired by third party and working in organization on contractual basis, the manager answered
“we don’t want them so we are not bound to compensate them equally in comparison with our
permanent employees”.
In our point of view as we see the organization size figures that show there are more then 2000
employees are on contractual basis which are more then the 55% of the overall size of the
organization. And all those employees are not much satisfied because of these criteria and they
are a big part of the organization, they are stressed with their job because they are getting only
salary not benefits or any other compensation tools against their work.
This thing shows that there is a lack of motivational factor among contractual employees and
cause increase in turnover rate. These things increase the cost of new hiring and training of
new employees. We observed another important point with the prospective of Human Resource
practices that in organization the concept of relational return is not very satisfactory but this
matter a lot in organizations like Ufone.
Third setback is that they have some problem with their payroll; the organization size is more
the 4000 employees but they have only two executives who are working for the pay roll and
on the compensation so there are many troubles to run the payroll accurately and compensate
every one fairly on the basis of their performance, because of work burden.

We think the Ufone should have to focus on the contractual employees and needs to motivate
them by compensating fairly, with communication and make them understand that what they
are getting is fair.
They have to provide them some necessary benefits, bonuses and incentives according to their
J.D.
Ufone should have to start some career development programs to attract and retain most
valuable employees, once if the employee feels that they have some career growth in the
organization they are motivated and loyal to the organization.
HR Department must also forecast for long-term Human Resource needs.

It is also found that no referral bonus was given to contractual employees who refer competent,
skilled and knowledgeable candidate. The HR Department must convince the higher
management to give such bonus which not only motivated the employees but the organization
can in this way get competent, skilled and experienced worker which may participate in the
success of the organization.

Ufone HR Department must clearly communicate its promotion policy to all employees.