performance and compensation

8/2/2019 Performance and Compensation

1/4

PERFORMANCE AND COMPENSATION, MANAGEMENT

SUBMITTED BY: MARYAM GUL

AAMARA RASOOL

AMNASHAHID

BEHJAD RUBAB

SABA WAHEED

IZZA BUTT

SUBMITTED TO: MAM ZARA SABEEN

BBA (HONS) 19-B

DATED: October 27, 2011


2/4

INTRODUCTION:

PTCL is the largest telecommunication company in Pakistan. The Company providestelephony services nation-wide and is the backbone for country's telecommunication

infrastructure despite arrival of a dozen other telecommunication companies, includinggiants like Telenor and china mobile. The company operates around 2000 telephoneexchanges across the country, providing the largest fixed line network. Data and backbone

services such as GSM, CDMA, Broadband Internet, and IPTV, wholesale are an increasing

part of its business. Originally fully owned by the Government of Pakistan, this holdinghas since 2006 been reduced to 62%, when 26% of shares and control was sold to Etisalat-

and the remaining 12% to the general public.

From the end customer's perspective, a major initiative was put in place in the shape

of 'Broadband Pakistan' service launch as a first step towardsproviding its customer withmore value added service and convenience. With this offering , the PTCL not

only bringing the benef it of high speed Internet access to

subscribers in major

cities but will also generate new revenue streams for future growth. The company alsocontinued to invest in infrastructure development and addition of network

capaci ty with a view to enhance services and to expand its reach across the country.

PERFORMANCE APPARISAL AT PTCL:the method used to appraise by ptcl isForced ranking method .Forced ranking is a

workforce management tool based on the premise that in order to develop and thrive, acompany must identify its best and worst performers it uses rigorous evaluation and

routing of employees by their immediate supervisors on agreed-upon abilities, skills, and

attitudes. Everybody from the top down is placed on a bell-shaped, company-wide curve,or in one of four quartered-square "quartiles," or "buckets." Other companies use a 1-to-5

ranking scale. Employees who finish in, say, the first 15 percent of the curve or the top left

quartile or are rated as 5 are marked as a players, and given raises, stock options andtraining. In contrast, those in the bottom right hand square, the bottom ten percent, or rated

as 1 are given no raises and either given training or fired.

Per formance evalua t ions are conducted on the bas i s of the employee

category .All management employees will be give an additional allowance, ranging from 15%

to 5% of the Running Basic Pay, based on their performance evaluation results and

categorization.ptcl even appraise the lower order employees also. Employees who have

less grade get low evaluation. These rankings come during intense yearly performancereviews; during which managers must place each of their underlings in their proper place

performance evaluation results and categorization.At the heart of the system is the beliefthat the ranking will result in a bell-shaped curve.. In order to rate workers honestly,

managers need an objective set of criteria.In order to be as objective as possible, the

decision should never be left to one person, since different people see different things.Many organizations have adopted forced ranking performance appraisal systems. Each

employee is evaluated against peers and performance arranged from highest to lowest.


3/4

These ends of the year performance appraisals resemble report cards for adults. Thereseems to be more angst though, since compensation, career direction, ego, prestige, and

morale are all involved. The performance appraisal ranking process is not quite the same as

a single winner election, but the method is subject to the flaws identified by the theorem:(1) Strategies can be employed by a subset of the electors to lead to an outcome that is not

the choice of the majority;(2) Biases can be introduced if the voting methods are simplified.

Companies certainly need methods and processes to accurately identify people who are

not making the grade. But quota systems don't work for many reasons, including flaws

in the normal distribution curve approach that is used to identify poor performers, aswell as limitations in human judgment. In fact, systems that force managers to cut a

certain percentage of their people often don't reveal the root causes of problems, often

do not elevate performance and can ultimately be counterproductive.

Advantages and disadvantages of forced ranking performanceappraisals:

They create and sustain a high performance culture in which the workforce

continuously improves.

They increase unhealthy cut-throat competitiveness

They discourage collaboration and teamwork

They harm morale

They are legally suspect giving rise to age discrimination cases.


4/4

ORGANIZATIONAL STRUCTURE:

MANAGERS

ASSISTANT

MANAGERS

SENIOREXECUTIVES

EXECUTIVES

General Manager

Chief human

resource Officer

SENIORMANAGERS

General Manager of

Planning

SENIORMANAGERS

MANAGERS

ASSISTANT

MANAGERS

SENIOREXECUTIVES

EXECUTIVES

performance and compensation

Documents