performance appraisal at ufone

8/13/2019 Performance Appraisal at Ufone

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Ufone Compensation Structure Development

EXECUTIVE SUMMARY

This project has been undertaken in order to highlight the Human Resource Practices of Ufone.

Its all about YOU its all about Ufone, a company very highly spoken of these days. Acompanypaying more attention to its customers delights rather then the customers 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.

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 PTCLs privatization, 26% of its shares were acquired byEmirates 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, Ufonecontinued 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 activationcharges. 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, its all about U,

Services line of UfoneThere are two basic products of Ufone Ufone Prepaid and Ufone Post pay. Both of these

products are available at their franchise for public.F Prepaid
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F Post paid

COMPANY ANALYSES

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-makingauthority to take advantage of local opportunities in regional or specialized product markets also

enhances flexibility.

(click on the following image to enlarge)

Keeping in view of all these factors the structure of Ufone is designed i.e. the overall Structure ofthe Ufone is Divisional (More flexible and innovative). Mainly Ufone has four regions andwithin those regions the structure is functional .The decision making authority is centralized at

the top but within the regions it is decentralized i.e. regional heads have to inform top

management before making any decision.

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
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are four BU (Business Unit) each Project Director is responsible for these eight divisions. BUs

are divided geographically into three divisions

F BU North (Peshawar to Jehlum) Islamabad (Head Office)F BU Central-1 (Gujranwala till Sialkot)

F BU Central-2 (Multan till Rahim Yar Khan)

F BUM South (Sindh and Balochistan)Departmental DivisionIn 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.F Engineering

F Administration

F Business Analysis

F Marketing & SalesF Customer Care

F Human Resource

F FinanceF 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 allplanned 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 carriesout 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 PRACTICESF Recruitment and selection

F Orientation

F Training and development

F Compensation and BenefitsF Performance Appraisal

WORK FORCEHR at UFONEis divided into the following two major categories

Permanent Employees (1500-2000 Approximately)


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Outsourced Employees (2000 Approximately)Permanent employees

HR Permanent employees are further divided into following two categories.

Operation Training and Development

Operational DepartmentIt covers all the areas including hiring recruitment, selection and payrolletc. HR operation teammanages all the employee activities gathers all the information and make use of it for further

processes.

Training and DevelopmentHR team of training and development make a performance evaluationof all the employees and

the see where the gap occurs between the actual performance and the desired performance. Thentraining 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.

Employee Benefit & CompensationF Training & Development

F Employee MotivationF Retention of Employees

F Career Planning/ Succession Planning

F Employee Relations/ Communication

F Employee AwardsF Employee Events Management

F Medical & Life InsuranceCOMPENSATION AND BENEFITS

Ufone follow the performance base pay structure and pay for their performance and work output.

CompensationThe total returns which an employee gets against his or her work.

It maybe:

Employee Health PlansEmployee Insurance

Employee Leave

Employee Retirement Income Security Act

Executive CompensationMaternity & Paternity Benefits

Pension & Retirement Plans

Wages & Salaries

Workplace ProgramsCompensation 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


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movement and internal/ external equity adjustment. Revision of compensation is based on total

pay and monetization of benefits.

Levels of Ufone:

Hierarchy

1. C.E.O2. V.P3. G.M4. Senior Manager5. Manager6. Assistant Manager7. Senior Executive8. Permanent Executive9. Outsourced Executive10.M.T

Individual Salary Fixation:

The Ufone seeks the market trend and try to compete with market for individual salary fixation

but they also analyze 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 & controlMarket trends

Employee J.D

SurveysPolicy Lines

Total Compensation:Example:

60% Basic Pay 15-k

30% House Rent 7.5-k

10% Utilities 2.5-kOPD 2 Gross salaries

Hospitalization Employee siblings, Parents,

Wife / Spouse and childrens

Provident Fund 50% Employee, 50% Org

Gratuity If work for 10 Months

Bonuses 1.4% Of Gross salary


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Incentives Only Sales departmentdepend upon theirperformance.

Assistant Manager Level:25000 Car allowance + 200 Liters 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 CompanyA.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 assistance1 year 20 holidays 1 Gross salary

40 leaves 2LFAs

Permanent Employees:

Number of employees:

Around 15002000Minimum scale starts from 1500020000

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


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UFONE focuses on providing a large number of the compensation and benefits to its employees

in a form of the following categories:

F Minimum wage: The minimum salaryfor 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.F Medical Allowance:1 gross salary per year is given to each employee; half is given in mid ofthe year and remaining half will be given at the end of the year.

F Health Insurance:Like all other cellular companies Ufone also provides health insurance

policy to its employees.

F Loan Insurance:At Ufone loan insurance policy is also provided to their employees through

banks.

F Transport allowance:Rs 2500 are given to female employees only, if they travel on localtransport.

F House Rent:10% of the basic salary is given to each senior/ executive level employee.

F Overtime:All employees are entitle for the overtime more then 130 hours per month .Forovertime UFONE have specific formula that apply on the employees gross salary, due to which

every employee have different per hour overtime rate.

F EOBI:EOBI is contributed as per the standard

F Children Education allowance:1 gross salary per year

F 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 ayear and an equivalent amount is being contributed by the employer.

F Leaves:7 Casual and 10 sick leaves are given to each employee at all level.

F Travel Policy: Revised and categorized different levels such as the senior level, the middle

level and the junior level staff.F 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% ofthe expense came over the food while 40% has to be deducted from the employees salary.

F 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, suchclaim are made while returning back to the office , after the whole process the HR pay them back

the next month along with their salary.

F 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 haveto be approved through HR department.

F Medical Claim: Differentmedical 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 bythe HR department.

F 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 thenthey can make a claim by attacking a copy of mobile bill and if its valid then HR department


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approved it and pay the employee their claimed amount along with their monthly salary of the

following month.

F Dispatching of Salary Slips: Vendor prepares the salary slip and dispatch it to the HRdepartment, 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 SurveysCollections 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 EvaluationMethod

The job evaluation method of Ufone is lined to appraisal system. Whenever the appraisal reportof 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 thejob 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 whois 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 appraisalsystem of Ufone.

The present basic salary structure of Ufone is based on Job description (Tasks and duties

performed).

Job AnalysisJob 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 constructJob 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 activitiesMachines, tools, equipment, and work aids used
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Job-related tangibles and intangibles

Work performance

Job contentPersonal requirements for the job

Why Ufone conducts job analysisThe Ufone conducts the job analysis to get the right person for the right job at the right time. Ifthe 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 WhatMajor 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

InterviewsHow Ufone formulate job description and specificationIn 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 becomevacant 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 DescriptionHuman Resource Division analyzes each job and its required outcomes. Job analysis is done by

analyzing the past experience and emerging trends.

Ufone holds documents about terms, duties responsibilities, and specifications about each job. Injob 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.(click on the following image to enlarge)
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PERFORMANCE MANAGEMENT SYSTEM

Objective of the Performance Management:

Thebasic objective for performance UFONE employees circles around the following:F To look at Performance system as a means to an end

F Setting an individuals goal

F Aligning goals across the company

F Ensuring employees get coaching from managersF Determining merit pay

F Identifying training and development needs

F Providing data for promotion decision

F Input from multiple source on worker performance

The Performance Appraisal Process:

The Performance appraisal system used by UFONE for reviewing the performance status of itsemployee 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 appraisedaccording to the set standards and this appraisal is not done by the supervisor alone, their major

focus is on taking into the account the employees perspective as well. Therefore whenever the
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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 whileother 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 PerformanceThere 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 areward. In each case employee have to show consistent performance to win reward next time.


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A bell shaped distribution comes out to show the performance

Compensation Responsibilities of Ufone HR Department

F 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).

F Health and Safety (health programs, safety programs, Medical facility).F Employee relations (wages, rates of pay, hours of work, conditions of employment,

negotiation, contract interpretation and administration, grievance handling, allocation of

overtime).F Benefits and Services (insurance programs, Transportation facility, sick leave pay plans, loan

funds, LFA salary, Yearly bonus programs along with special bonuses for achieving hightargets).

Employees Reaction to the system

As mentioned above that Ufone follow the job based and competitive structure, so this thing is inthe 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. Theirreaction towards the system is cooperative because of their appraisal system; the Ufone

performance appraisal system is very effective after every six months every body knows thatwhat their score is. Ufone is a performance oriented organization so they compensate theiremployees on the basis of their performance so every body 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 becauseof this system every body interests involves in it. And the Ufone also adopted the Competitive

approach for compensation, because of this system every employee know what the other

organizations are paying for the same job and what they are getting is fair or not.
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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 whoare hired by third party and working in organization on contractual basis, the manager answered

we dont 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 2000employees 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 Resourcepractices 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 the4000 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 motivatethem 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 highermanagement 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.

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